Answer:
Absolute advantage in baking cakes: Jean
Absolute advantage in making pizzas: Jean
Comparative advantage in baking cakes: Vincent
Comparative advantage in making pizzas: Jean
Explanation:
Absolute advantage refers to the amount that can be produced using the same resources. Here the main resource in question is time. For the same amount of time (1 hour) Jean can bake 12 cakes while Vincent can bake 10 cakes.
Similarly, for the same amount of time (1 hour), Jean can make 8 pizzas while Vincent can make 5 pizzas.
Thus, Jean has the absolute advantage in both baking cakes and making pizzas.
Comparative advantage is related to the opportunity cost to produce one product over another.
The opportunity cost for Jean to bake a cake is 2/3 of a pizza, while the opportunity cost for Vincent is 1/2 pizza. The opportunity cost for Jean is greater, so Vincent has the comparative advantage in baking cakes.
The opportunity cost for Jean to make a pizza is 1.5 cakes, while the opportunity cost for Vincent is 2. The opportunity cost for Vincent is greater, so Jean has the comparative advantage in making pizzas.
To maximize production, Vincent should bake cakes and Jean should make pizzas.
Vincent has the absolute advantage in making pizzas, and Jean has the absolute advantage in baking cakes. Comparatively, Vincent has the advantage in baking cakes, and Jean in making pizzas, based on their respective opportunity costs.
Explanation:When considering Vincent and Jean, two cooks in a village, and their abilities in baking cakes and making pizzas, we need to determine who has the absolute and comparative advantages in producing these items. Vincent can bake 10 cakes or make 5 pizzas in an hour, whereas Jean can bake 12 cakes or make 8 pizzas in an hour. An absolute advantage exists when a producer can create more of a good than another with the same resources. Vincent has an absolute advantage in making pizzas since he can produce more than Jean in the same amount of time. Jean has an absolute advantage in baking cakes, as he produces more than Vincent. A comparative advantage exists when a producer can create a good at a lower opportunity cost than another. To find this, we compare the opportunity costs of both activities for each cook.
For Vincent, the opportunity cost of baking one cake is half of a pizza (5 pizzas/10 cakes) and for Jean, it is 2/3 of a pizza (8 pizzas/12 cakes). Therefore, Vincent has a comparative advantage in baking cakes since he gives up less pizza per cake than Jean. Conversely, for making pizzas, Vincent's opportunity cost is two cakes per pizza (10 cakes/5 pizzas) and Jean's is 1.5 cakes per pizza (12 cakes/8 pizzas), hence Jean has a comparative advantage in making pizzas as he sacrifices fewer cakes per pizza than Vincent.
In a market with an upward sloping supply curve and a downward sloping demand curve, when there is an excess supply, the actual price must be higher than the equilibrium price. the actual price must be lower than the equilibrium price. the quantity demanded is higher than the equilibrium quantity.
Answer:
The correct answer is: the actual price is higher than equilibrium price.
Explanation:
With a downward sloping demand curve and upward-sloping supply curve, excess supply means that the supply is more than quantity demanded. The actual price is higher than the equilibrium price level.
We are aware that price and supply are directly related, so the firms will supply more at a higher price. But price and quantity demanded are inversely related, so at higher price, the consumers will demand less quantity of the product.
Thus excess supply is created in the market at a price higher than the equilibrium price.
In a market with an upward sloping supply curve and a downward sloping demand curve, the actual price must be higher than the equilibrium price when there is an excess supply.
Explanation:In a market with an upward sloping supply curve and a downward sloping demand curve, the actual price must be higher than the equilibrium price when there is an excess supply. This is because when there is excess supply, the quantity supplied exceeds the quantity demanded, leading to a surplus in the market. To eliminate the surplus, sellers will lower the price, resulting in an increase in quantity demanded and a decrease in quantity supplied, until the market reaches equilibrium.
Cusic Industries had the following operating results for 2019: sales = $34,621; cost of goods sold = $24,359; depreciation expense = $6,027; interest expense = $2,725; dividends paid = $2,023. At the beginning of the year, net fixed assets were $19,970, current assets were $7,075, and current liabilities were $4,010. At the end of the year, net fixed assets were $24,529, current assets were $8,702, and current liabilities were $4,700. The tax rate was 25 percent. a. What is net income for 2019? (Do not round intermediate calculations.) b. What is the operating cash flow for 2019? (Do not round intermediate calculations.) c. What is the cash flow from assets for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) d-1. If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations.) d-2. If no new debt was issued during the year, what is the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)
Answer:
a. $1,132.50
b. $9,884.50
c. $10,586
d.1 $2,725
d.2 - $4,363.50
Explanation:
a. The computation of the net income is shown below:
= Sales - cost of good sold - depreciation expense - interest expense - income tax expense
= $34,621 - $24,359 - $6,027 - $2,275 - 377.50
= $1,132.50
The income tax expense
= ($34,621 - $24,359 - $6,027 - $2,275) × 25%
= $377.50
b. The operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - cost of good sold - depreciation expense
= $34,621 - $24,359 - $6,027
= $4,235
And all other items would remain same
Now put these values to the above formula
So, the value would equal to
= $4,235 + $6,027- $377.50
= $9,884.50
c. Computation of the cash flow from assets for 2019 is shown below:
= Operating cash flow - net capital spending - changes in working capital
where, net capital capital = ending fixed assets - beginning fixed assets + depreciation
= $24,529 - $19,970 + $6,027
= $10,586
Changes in working capital = (ending balance of current assets - ending balance of current liabilities) - (beginning balance of current assets - beginning balance of current liabilities)
= ($8,702 - $4,700) - ($7,075 - $4,010)
= $4,002 - $3,065
= $937
Now put these values to the above formula
So, the value would equal to
= $9,884.50 - $10,586 - $937
= - $1,638.50
d.1 The computation of the cash flow to creditors is shown below:
= Interest expense - ending balance of long term debt + beginning balance of long term debt
= $2,725 - 0 + 0
= $2,725
d.2 The computation of the cash flow to stockholder is shown below:
= Cash flow from asset - cash flow to creditors
= - $1,638.50 - $2,725
= - $4,363.50
Final answer:
The detailed answer provides calculations for net income, operating cash flow, cash flow from assets, cash flow to creditors, and cash flow to stockholders for Cusic Industries in 2019.
Explanation:
a. Net income for 2019:
Net Income = Sales - Cost of Goods Sold - Depreciation Expense - Interest Expense - Taxes
Net Income = $34,621 - $24,359 - $6,027 - $2,725 - ($34,621 - $24,359 - $6,027 - $2,725) x 0.25
Net Income = $3,216.75
b. Operating cash flow for 2019:
Operating Cash Flow = Net Income + Depreciation Expense
Operating Cash Flow = $3,216.75 + $6,027 = $9,243.75
c. Cash flow from assets for 2019:
Cash Flow from Assets = Operating Cash Flow - Change in Net Working Capital - Net Capital Spending
Cash Flow from Assets = $9,243.75 - [(($8,702 + $4,700) - ($7,075 + $4,010)) - ($24,529 - $19,970)]
Cash Flow from Assets = $9,243.75 - $9,992 = -$748.25 (negative cash flow)
d-1. Cash flow to creditors:
Cash Flow to Creditors = Interest Expense - Net New Borrowing
Cash Flow to Creditors = $2,725 - 0 = $2,725
d-2. Cash flow to stockholders:
Cash Flow to Stockholders = Dividends Paid - Net New Equity
Cash Flow to Stockholders = $2,023 - 0 = $2,023
Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cooks' time. Vincent cake bake 10 cakes or make 5 pizzas in an hour. Jean can bake 12 cakes or make 8 pizzas in an hour.
Which cook has absolute advantage in baking cakes?
Which cook has the comparative advantage in baking cakes?
Which cook has the absolute advantage in making pizzas?
Which cook has the comparative advantage in making pizzas?
Jean has an absolute advantage in both baking cakes and making pizzas. Vincent has a comparative advantage in baking cakes, while Jean has a comparative advantage in making pizzas.
Absolute and Comparative Advantage
To determine which cook has the absolute and comparative advantages in baking cakes and making pizzas, we first need to review their hourly production capabilities.
Vincent can bake 1010 cakes or make 55 pizzas.
Jean can bake 1212 cakes or make 88 pizzas.
Based on this information:
1. correct answer is option a. Jean - Jean can bake more cakes per hour (1212) compared to Vincent (1010).
2. correct answer is option c. Jean - Jean can make more pizzas per hour (88) compared to Vincent (55).
3. We calculate the opportunity cost:
Vincent: 1 cake = 55 pizzas divided by 1010 cakes ≈ 0.0545 pizzas per cake
Jean: 1 cake = 88 pizzas divided by 1212 cakes ≈ 0.0726 pizzas per cake
correct answer is option a. Vincent - Vincent has the lower opportunity cost in baking cakes (0.0545 < 0.0726).
4. We calculate the opportunity cost:
Vincent: 1 pizza = 1010 cakes divided by 55 pizzas ≈ 18.36 cakes per pizza
Jean: 1 pizza = 1212 cakes divided by 88 pizzas ≈ 13.77 cakes per pizza
correct answer is option c. Jean - Jean has the lower opportunity cost in making pizzas (13.77 < 18.36).
Complete question-
Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cooks' time. Vincent can bake 1010 cakes or make 55 pizzas in an hour. Jean can bake 1212 cakes or make 88 pizzas in an hour. Please answer the four questions.
1. Which cook has the absolute advantage in baking cakes?
a. Jean
b. Neither
c. Vincent
2. Which cook has the absolute advantage in making pizzas?
a. Neither
b. Vincent
c. Jean
3. Which cook has the comparative advantage in baking cakes?
a. Vincent
b. Jean
c. Neither
4. Which cook has the comparative advantage in making pizzas?
a. Vincent
b. Neither
c. Jean
Your current income is $50,000 per year, and you would like to maintain your current standard of living (i.e., your purchasing power) when you retire. If you expect to retire in 30 years and expect inflation to average 3% over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years?
Answer:
it will need income for 121,363.12
Explanation:
We will adjust the 50,000 principal by inflation at 3% per year during 30 years:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 50,000.00
time 30.00
rate 0.03000
[tex]50000 \: (1+ 0.03)^{30} = Amount[/tex]
Amount 121,363.12
An income for 121,363.12 per year in 30 years will have the same purchasing power as 50,000 dollars today.
To maintain your current standard of living when you retire in 30 years with a 3% annual inflation rate, you'll need an annual income of approximately $121,354.
Calculating Future Income Needed to Maintain Purchasing Power
To determine how much annual income you will need in 30 years to maintain your current standard of living given a $50,000 current income and an expected 3% annual inflation rate, follow these steps:
Identify the formula for future value with inflation: FV = PV times (1 + r)^n, where PV is the present value ($50,000), r is the inflation rate (3% or 0.03), and n is the number of years (30).
[tex]Plug in the values: FV = 50000 imes (1 + 0.03)^{30}.[/tex]
[tex]Calculate the result: FV = 50000 times (1.03)^{30} ≈ 50000 times 2.427 ≈ $121,354.[/tex]
So, in 30 years, you will need an annual income of $121,354 to maintain your current purchasing power, considering a consistent inflation rate of 3%.
Most financial advisers suggest that to live comfortably in retirement, you typically need about 70% of your pre-retirement income. However, this calculation helps you understand the equivalent value you'd need to keep the same purchasing power with an adjusted income.
Suppose compensation is given by W = 512,000 + 217π + 10.08S, where W = total compensation of the CEO, π = company profits (in millions) = $200, and S = sales (in millions) = $400. What percentage of the CEO's total earnings are tied to profits of the firm?
Answer:
Percentaje CEO's earnign tied to the profits = 7,76%
Explanation:
As you can se in the equation there are two veariables that are independent, that are π ,and S, according with the information you have to replace the variables with the amount of money of sales and profit.
W = 512,000 + 217π + 10.08S
W= 512,000 + 217 ($200) + 10.08($400)
W = 512,000 +$43,400+ 4032
π is the variable tied to the profits, it means that $43,400 correspond to the amount of money that the CEO will receive for the profit
W= $559,432
Now you have to calculate the percentage that the profits representing in the total compensation,
Percentaje profits =( $43,400/559,432)
Percentaje Profits = 7,76%
Approximately 95.10% of the CEO's total earnings are linked to the profits of the firm.
Explanation:The question requires calculating the percentage of the CEO's total compensation that is linked to the company's profits. To do this, we'll first compute the total compensation, and then divide the part linked to profits by it.
Given, total compensation W = 512,000 + 217π + 10.08S, where π = company profits = $200 million, and S = company sales = $400 million.
Therefore, total compensation W = 512,000 + 217*200 + 10.08*400 = $45,634,000
The part linked to profits = 217 * π = 217 * 200 = $43,400,000.
So, the percentage of CEO's total earnings tied to the profits of the firm = (Part linked to profits / Total compensation) * 100% = (43,400,000/45,634,000) * 100% =~ 95.10%
Thus, approximately 95.10% of CEO's total earnings are tied to the profits of the firm.
Learn more about Percentage Calculation here:https://brainly.com/question/32197511
#SPJ3
Brief Exercise 26-4 Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Variable manufacturing costs $ $ $ Fixed manufacturing costs Purchase price Total annual cost $ $ $ The decision should be to the part.
Answer:
differential loss for 14,700
Explanation:
[tex]\left[\begin{array}{cccc}&$Make&$Buy&$Differential&\\$Variable Cost&-73,500&-88,200&-14,700&\\$Fixed cost&-29,400&-29,400&0&\\$Total&-102,900&-117,600&-14,700&\\\end{array}\right][/tex]
We multiply the variable copst per unit by the 14,7000 units
then we add the fixed cost for the total cost for the make option
Then, we multiply the 14,700 by 6 for the buy option and add the unavoidable fixed cost.
In this case, it is not convinient to buy the assembly part as it would incour in a differential loss for 14,700
The journal entry to record the acquisition of land and a building by issuing common stock
(A) debits Land, Building, and Common Stock.
(B) debits Land and Building and credits Common Stock.
(C) debits Land and credits Common Stock.
(D) debits Common Stock and credits Land and Building.
Answer:
(B) debits Land and Building and credits Common Stock.
Explanation:
As with the acquisition of land and building, there is an increase in asset called land and building and for this the land and building account will be debited.
Further, after this since the assets are acquired in exchange of common stock, there is issue of common stock, which shall be credited, as increase in common stock is credited.
Therefore, assets land and building will be debited and common stock will be credited.
The correct journal entry to record the acquisition of land and a building by issuing common stock is option (B), which debits Land and Building and credits Common Stock.
Explanation:The correct journal entry to record the acquisition of land and a building by issuing common stock is option (B) which debits Land and Building and credits Common Stock.
When a company acquires land and a building by issuing common stock, it increases the assets of Land and Building, which are recorded as debits. At the same time, it increases the liabilities of Common Stock, which is recorded as a credit.
For example, if the company acquires land and a building worth $100,000 by issuing 1,000 shares of common stock at a price of $100 per share, the journal entry would be:
Debit Land $100,000Debit Building $100,000Credit Common Stock $100,000
McMahon Inc. reported the following on the company's statement of cash flows in Year 2 and Year 1: Year 2 Year 1 Net cash flow from operating activities $294,000 $280,000 Net cash flow used for investing activities (224,000) (252,000) Net cash flow used for financing activities (63,000) (42,000) Seventy percent of the net cash flow used for investing activities was used to replace existing capacity. a. Determine McMahon's free cash flow for both years. Year 2 $ Year 1 $
Final answer:
To calculate McMahon Inc.'s free cash flow, subtract the net cash flow used for investing activities from the net cash flow from operating activities. 70% of the net cash flow used for investing activities was used to replace existing capacity.
Explanation:
To calculate McMahon Inc.'s free cash flow for both Year 2 and Year 1, we need to subtract the net cash flow used for investing activities (which includes the portion used to replace existing capacity) from the net cash flow from operating activities. The formula for free cash flow is:
Free Cash Flow = Net Cash Flow from Operating Activities - Net Cash Flow Used for Investing Activities
Using the given information:
For Year 2: $294,000 - ($224,000 * 0.7) = $294,000 - $156,800 = $137,200
For Year 1: $280,000 - ($252,000 * 0.7) = $280,000 - $176,400 = $103,600
Problem 1-11 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand. Let d = annual demand for a product in units p = price per unit Assume that a firm accepts the following price-demand relationship as being realistic: d = 800 - 10p where p must be between $20 and $70. How many units can the firm sell at the $20 per-unit price? Round your answer to the nearest whole number.
Answer:
The firm will sell 600 units at $20
Explanation:
Giving the following information:
d = annual demand for a product in units
p = price per unit
d = 800 - 10p
p must be between $20 and $70.
Elastic demand
We have to calculate how many units the firm will sell at $20
d=800-10*p=800-10*20= 600 units
Answer:
Explanation:
The firm can sell 800 - (10 * 20) = 600 units at the $20 per-unit price.
The firm can sell 800 - (10 * 70) = 50 units at the $70 per-unit price.
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 16 percent, 11 percent, −1 percent, 6 percent, and 11 percent. Over the same period, the returns on Straw Construction Company’s stock were 16 percent, 23 percent, −6 percent, 6 percent, and 11 percent.
Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.)
Final answer:
The variances for Cherry Jalopies, Inc., and Straw Construction Company are calculated as 0.002368 and 0.008300, respectively, while the standard deviations are computed as 4.87% for Cherry Jalopies, Inc. and 9.11% for Straw Construction Company.
Explanation:
The student in question is seeking to calculate the variances and standard deviations for Cherry Jalopies, Inc., and Straw Construction Company's stock returns over five years. To calculate the variance, we first compute the average return for each company and then find the differences between each year's return and the average, square those differences, sum them, and then divide by the number of data points minus one. To find the standard deviation, we take the square root of the variance.
For Cherry Jalopies, Inc.:
Calculate the average return: (16% + 11% - 1% + 6% + 11%) / 5 = 8.6%Calculate each year's deviation from the average, square it, and sum: ((16-8.6)^2 + (11-8.6)^2 + (-1-8.6)^2 + (6-8.6)^2 + (11-8.6)^2) / 4Compute the variance: = 0.002368Compute the standard deviation by taking the square root of the variance: = 4.87%For Straw Construction Company:
Calculate the average return: (16% + 23% - 6% + 6% + 11%) / 5 = 10%Calculate each year's deviation from the average, square it, and sum: ((16-10)^2 + (23-10)^2 + (-6-10)^2 + (6-10)^2 + (11-10)^2) / 4Compute the variance: = 0.008300Compute the standard deviation by taking the square root of the variance: = 9.11%Which of the following statements is true of purchasing power parity (PPP)?
a. It is the sum of value added by residents and households operating in an economy.
b. It is the management of value-added activities in other countries.
c. It is an investment made by firms within an industry in other countries.
d. It is an adjustment to reflect the differences in cost of living among different countries.
Answer:
d. It is an adjustment to reflect the differences in cost of living among different countries.
Explanation:
Purchasing power parity (PPP) calculates the cost of living, as it determines the value of goods or services, that can be purchased, by different currencies.
As with the purchase of goods or services in different currencies value of money is calculated in each currency, and accordingly it reflects the cost of living among different countries.
Therefore, correct statement is,
Statement d.
Final answer:
Purchasing power parity (PPP) is an economic concept used to adjust and compare the cost of living between different countries. The PPP exchange rate equalizes the prices of internationally traded goods, allowing for meaningful currency comparisons. It reflects how much local currency can buy in each country. The correct answer is d) It is an adjustment to reflect the differences in cost of living among different countries.
Explanation:
The true statement of purchasing power parity (PPP) among the options presented is: d. It is an adjustment to reflect the differences in cost of living among different countries. Purchasing power parity is an economic theory and a method used to compare the economic productivity and standards of living between countries. The PPP exchange rate is established to equalize the prices of internationally traded goods across countries, allowing us to compare what the local currency of one country can buy compared to another.
For instance, PPP adjusts income to reflect what you can buy with CAD 20 in Canada as opposed to its equivalent in Colombia. This is crucial as it accounts for cost of living variability, making currency comparisons more meaningful between regions with different cost structures.
The static budget, at the beginning of the month, for Onyx Décor Company, follows: Static budget: Sales volume: 1,100 units; Sales price: $70.00 per unit Variable costs: $32.00 per unit; Fixed costs: $38,000 per month Operating income: $3,800 Actual results, at the end of the month, follows: Actual results: Sales volume: 980 units; Sales price: $75.00 per unit Variable costs: $35.00 per unit; Fixed costs: $34,200 per month Operating income: $5,000 Calculate the flexible budget variance for sales revenue.
Answer:
The flexible budget variance for sales revenue are 30 Units.
Explanation:
It means that with this cost structure the company still could have lower sales until 950 Units and still keep the result forecasted in the Budget.
Variance
BDGT - REAL - REAL
Sales 1.100 - 980 - 950
Unit $70 - $75 - $75
Cost $32 - $35 - $35
==============================
$41.800 $39.200 $38.000
Fixed -$38.000 -$34.200 -$34.200
Result $3.800 $5.000 $3.800
he balance shown in the August bank statement of Colt Company was $22,400. After examining the August bank statement and items included with it, the company's accountant found:
Checks outstanding $4,500
NSF check 140
Note collected by bank for the Colt Company 1,500
Deposits outstanding 2,300
Bank service fees 60
What is the amount of cash that should be reported in the balance sheet as of August 31?
A.$20,200
B.$16,700
C.$23,400
D.$15,700
Answer:
A.$20,200
Explanation:
The computation of the cash amount which is to be reported is shown below:
= August bank statement balance - checks outstanding + deposit outstanding
= $22,400 - $4,500 + $2,300
= $20,200
The other items like NSF check, Note collected by the bank for the Colt Company, and Bank service fees are irrelevant. Hence, these are ignored and not be considered in the computation part
A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 12 Fixed 5 What is the amount of the gain or loss from the acceptance of the offer?
The acceptance of the special order in this case would result in a loss of $40,000 as the total costs of production for this order would exceed the revenue generated.
Explanation:To calculate the gain or loss from the acceptance of the offer, we first need to determine the total revenue from this special order and the total cost incurred to produce the special order. The total revenue, in this case, would be the price offered by the exporter multiplied by the number of units, that is $15/unit * 20,000 units = $300,000.
The total cost would be the sum of the variable cost and the fixed cost, each multiplied by the number of units. This amounts to ($12/unit variable costs + $5/unit fixed costs) * 20,000 units = $340,000.
Subtracting the total cost from the total revenue will give the gain or loss. So, $300,000 - $340,000 shows a loss of $40,000. Hence, the amount of the loss from the acceptance of the offer is $40,000.
Learn more about Cost Revenue Analysis here:https://brainly.com/question/33699422
#SPJ12
Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Then calculate the total cost for each value chain category.Data Amount ($)Delivery expense to customers via UPS 8Salaries of salespeople 3Chipset (the set of chips on the phone's motherboards) 58Exterior case for phone 9Assembly-line worker;s wages 9Technical custumer support hotline 6Depreciation on plant and equipment 75Rearrangement of production process 5Salaries of scientist 14
Answer:
Delivery expense to customers via UPS = 8 - Distribution
Salaries of salespeople = $3 - Marketing
Chip set (the set of chips on the phone's motherboards) = $58 - Direct Materials
Exterior case for phone = $9 - Direct Materials
Assembly-line worker;s wages = $9 - Direct Labor
Technical customer support hotline = $6 - Customer Service
Depreciation on plant and equipment = $75 - Manufacturing Overhead
Rearrangement of production process = $5 - Design
Salaries of scientist = $14 - R & D
Total cost for each value chain category
Direct Labor: $9
Direct Materials: $9 + $58 = $67
Manufacturing Overhead: $75
Customer Service: $6
Design: $5
R & D: $14
Marketing: $3
Distribution: $8
Final answer:
The costs can be classified into different categories in the value chain based on their place. The categories include Production, Delivery, Sales, and Support. Each category can be further broken down into subcategories such as Direct Materials, Direct Labor, and Manufacturing Overhead. More information is needed to calculate the total cost for each value chain category.
Explanation:
The costs mentioned in the question can be classified into different categories based on their place in the value chain. The different categories are: Production, Delivery, Sales, and Support. Within the production category, the costs can be further classified as: Direct Materials, Direct Labor, and Manufacturing Overhead.
Based on the given data, the costs can be classified as follows:
Delivery expense to customers via UPS: falls under the Delivery categorySalaries of salespeople: falls under the Sales categoryChipset: falls under the Production category, in the Direct Materials subcategoryExterior case for the phone: falls under the Production category, in the Direct Materials subcategoryAssembly-line worker's wages: falls under the Production category, in the Direct Labor subcategoryTechnical customer support hotline: falls under the Support categoryDepreciation on plant and equipment: falls under the Production category, in the Manufacturing Overhead subcategoryRearrangement of production process: falls under the Production category, in the Manufacturing Overhead subcategorySalaries of scientists: falls under the Production category, in the Manufacturing Overhead subcategoryTo calculate the total cost for each value chain category, you would need more information about the costs. The total cost is the sum of all costs within a particular category.
The purchase of an interest by an outsider direclty from one or more of the existing partners of a partnership results in ___________________ .
A)No entries being made in the partnership's books.
B)An entry solely within the capital accounts.
C)An entry to record the receipt of the consideration paid.
D)An entry to revalue tangible and intangible assets or to use the bonus method to give effect to such undervaluations.
E)An entry to reflect payments to the applicable existing partner(s) and receipt of a capital contribution from the new partner.
Answer:
E)An entry to reflect payments to the applicable existing partner(s) and receipt of a capital contribution from the new partner.
Explanation:
As when a new partner is admitted there will be basic entries to record his capital, the consideration brought by him, and along with this if that the partner is admitted in the place of an old partner then the firm will also record the entries related to his retirement.
In the given instance, new partner buys the existing partner share outside only, and then, the existing partner have to tell the firm and accordingly the firm, will make entries for each.
Thus, Statement E is correct.
Shelly purchases a leather purse for $400. One can infer that:
A. she paid too much.
B. her reservation price was at least $400.
C. her reservation price was exactly $400.
D. her reservation price was less than $400.
Answer:
B. her reservation price was at least $400.
Explanation:
Reservation price: It shows a limit on a price of purchase and selling of products and service rendering.
In the demand side, this price represents the higher price that the buyer is willing to pay to purchase the goods whereas, on the supply side, this price represents the lower price that the seller is willing to sell the goods.
In this question, the Shelly purchase a leather purse for $400 which means the minimum price would be $400
So, all other options except B are incorrect as option B is the most appropriate.
Common stock, $10 par value (50,000 shares outstanding) $ 500,000 Preferred stock, 6% cumulative, $100 par value, 3,000 shares outstanding 300,000 Additional paid in capital 200,000 Retained earnings 500,000 Total stockholders' equity $ 1,500,000 With respect to Nichols' investment in Smith, determine the amount to be recorded and identify which account should be adjusted to reflect such amount.
Answer:
The accounts identified to be adjusted are Smith's Common Stock and Smith's Preferred Stock.
The amount to be recorded is $ 1,200,000 and $ 124,000 respectively.
Explanation:
from the information:
$ 1,200,000 for Investment in Smith's Common Stock and $ 124,000 for Investment in Smith's Preferred Stock.
The investment account includes the fair value of Consideration in form of the fair value of both types of stocks, common stock and preferred stock.
There are two teams of students: team A with 3 sophomores, 8 juniors and 13 seniors; and team B with 5 sophomores, 7 juniors and 6 seniors. Suppose we pick one student from each team at random. Find the probability that both students are of the same type (that is, both sophomores, or both juniors, etc).
Answer:
sopomores= 0.0397
juniors= 0.1481
seniors= 0.2063
Explanation:
Giving the following information:
There are two teams of students:
Team A with 3 sophomores, 8 juniors, and 13 seniors. Total of 24 students.
Team B with 5 sophomores, 7 juniors, and 6 seniors. Total of 18 students.
First, we need to calculate the probability of selecting any student on each team:
Team A:
sophomores=3/21= 0.1428
juniros= 8/21= 0.3809
senors= 13/21= 0.619
Team B:
sopomores= 5/18= 0.2778
juniors= 7/18= 0.3889
seniors= 6/18= 0.3333
Now, we can calculate the probability of selecting the same type of students:
sopomores= 0.1428*0.2778= 0.0397
juniors= 0.3809*0.3889= 0.1481
seniors= 0.619*0.3333= 0.2063
Precious, Inc. is a merchandiser of a single line of golden rings. At the beginning of the day, the shop had 10 rings in its inventory. During the day, 4 new rings were delivered to the shop. By close of business, only 7 rings remained in inventory. The purchase price of each ring from the supplier is $223. In addition, the company pays $5 for shipping and delivery insurance on each ring that they purchase. What is the company’s Gross Profit for the day if it sells each ring for $662?
Answer:
Gross profit=$3038
Explanation:
We need to calculate the gross profit of the day based on the following information:
Beginning inventory= 10 rings
Purcase= 4 rings
Ending inventory= 7 rings
Cost of each ring= $223
Freight and insurance= $5 unit
Unitary cost= 223+5= $228
Total sale in units= 10+4-7= units
Gross profit= (PxQ)-(Unitary cost*Q)
Gross profit= (7*662)-(228*7)=$3038
When the Fed sells government securities, the banks':
A. reserves will increase and lending will expand causing an increase in the money supply.
B. reserves will decrease and lending will contract causing a decrease in the money supply.
C. reserve requirements will increase and lending will contract causing a decrease in the money supply. D. reserves/deposit ratio will increase and lending will expand causing an increase in the money supply.
Answer:
The correct answer is option B.
Explanation:
When the Federal reserve bank sells government securities, the banks will purchase them and pay back fed. This payment is made out of banks' reserves. This causes the reserves to decrease.
As reserves decline, the banks will be able to provide fewer loans. Consequently, this decrease in lending will further cause the money supply to decrease.
At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $40. A summary of purchases during the current period follows. During the period, Chen sold 2,800 units.
Units Unit Cost Cost
Beginning Inventory 1,000 $ 40 $ 40,000
Purchase #1 1,800 44 79,200
Purchase #2 800 52 41,600
Purchase #3 1,200 58 69,600
Which of these three inventory costing methods would you choose to:
1. Reflect what is probably the physical flow of goods?
(A) LIFO
(B) FIFO
(C) Average Cost
2. Minimize income taxes for the period?
(A) LIFO
(B) FIFO
(C) Average Cost
3. Report the largest amount of income for the period?
(A) LIFO
(B) FIFO
(C) Average Cost
Answer:
1. Reflect what is probably the physical flow of goods?
(A) LIFO 146200
(B) FIFO 119600
(C) Average Cost 134400
2. Minimize income taxes for the period?
(A) LIFO higuer Cost less tax
(B) FIFO
(C) Average Cost
3. Report the largest amount of income for the period?
(A) LIFO
(B) FIFO lower cost higuer income
(C) Average Cost
Explanation:
FIFO Unit C/Unit C/inventory Cost
Beggining Inve 1000 40 40000 1000 40000
Purchase 1800 44 79200 1800 79200
Purchase 800 52 41600 0 0
Purchase 1200 58 69600 0 0
4800 230400 2800 119200
2800 119200
LIFO Unit C/Unit C/inventory Cost
Beggining Inve 1000 40 40000 0 0
Purchase 1800 44 79200 800 35200
Purchase 800 52 41600 800 41600
Purchase 1200 58 69600 1200 69600
4800 230400 2800 146400
2800 146400
AVERAGE Unit C/Unit C/inventory Cost
Beggining Inve 1000 40 40000 0 0
Purchase 1800 44 79200 0
2800 43 119200
Purchase 800 52 41600 0
3600 45 160800
Purchase 1200 58 69600 0
4800 48 230400 2800 134400
2800 134400
Which of the following events could decrease the cost of money? Check all that apply.
(A) Inflation increases
(B) The federal deficit decreases
(C) The Federal Reserve purchases Treasury securities held by banks
(D) The Federal Reserve sells Treasury securities to banks
The events that can decrease the cost of money are when the federal deficit decreases and when the Federal Reserve purchases Treasury securities held by banks. The cost of money, or interest rate, decreases when there's more money available for loans. Inflation or the Federal Reserve selling Treasury securities can increase the cost of money.
Explanation:The cost of money, often referred to as the interest rate, can be influenced by many different components of the economy. The specified events that could decrease the cost of money are: (B) The Federal deficit decreases, and (C) The Federal Reserve purchases Treasury securities held by banks.
(B) When the federal deficit decreases, it means the government is borrowing less money. As a result, the supply of money available for loans increases, which can decrease the interest rates.
(C) When the Federal Reserve purchases securities from banks, it essentially gives those institutions more money to loan out. With an increased supply of money available for loans, the cost of borrowing (interest rates) can decrease.
On the other hand, if inflation increases or if the Federal Reserve sells Treasury securities to banks, this could increase the cost of money.
Learn more about Cost of Money here:https://brainly.com/question/9583229
#SPJ3
The supply of seats for a psychology class at 10 a.m. is the same as the supply of seats for the same class at 2pm LO5 MO1 There is a surplus of seats for the class at 2 p.m. and there is a shortage of seats in the 10 a.m. class. If tuition does not vary by time of day, it follows that the demand for the 10 a.m. class is __________ the demand for the 2 p.m. class, ceteris paribus.
Answer:
The demand for 10 a.m. class is higher than the demand for the 2 p.m. class.
Explanation:
The supply of seats for the psychology class at 10 a.m is the same as the class at 2 a.m. But there is a surplus of seats at 2 a.m class and shortage of seats at 2 p.m class.
Other things being constant this implies that more students are attending the 10 a.m class than the 2 p.m. class. This shows that the demand for the 10 a.m class is comparatively higher than the demand for the 2 p.m. class.
This causes a surplus of seats at 2 p.m and shortage of seats at 10 a.m.
If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the accounta. Common Stock will be credited for $140,000.b. Paid-in Capital in Excess of Par Value will be credited for $20,000.c. Paid-in Capital in Excess of Par Value will be credited for $120,000.d. Cash will be debited for $120,000.
Answer:
Paid-in Capital in Excess of Par Value will be credited for $120,000.
Explanation:
The journal entry for the issue of shares is shown below:
Cash A/c Dr $140,000
To common stock (4,000 shares × $5) = $20,000
To Paid-in Capital in Excess of Par Value $120,000
(Being issue of shares recorded)
So, the cash account is debited whereas the common stock and paid-in capital should be credited
And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value
It is theorized that the price per share of a stock is inversely proportional to the prime (interest) rate. In January 2010, the price per share of a certain company's stock was $193.04 and the prime rate was 2.75%. The prime rate rose to 5.50% in March 2010. What was the price per share in March 2010 if the assumption of inverse proportionality is correct?
Final answer:
Using the inverse proportion relationship, the price per share of the stock in March 2010, given a prime rate increase from 2.75% in January to 5.50% in March, would be $96.52.
Explanation:
If it is theorized that the price per share of a stock is inversely proportional to the prime (interest) rate, then we can use the concept of inverse proportion to calculate the price per share in March 2010. In January 2010, the price per share was $193.04 when the prime rate was 2.75%. If the prime rate then rose to 5.50% in March 2010, we can set up a proportion to find the new price per share.
Using the formula for inverse proportions:
[tex]PriceJan \( \times \) Prime RateJan = PriceMar \( \times \) Prime RateMar[/tex]
Substitute the known quantities into the formula:
[tex]193.04 \( \times \) 2.75 = PriceMar \( \times \) 5.50[/tex]
To solve for the price in March (PriceMar), we need to divide both sides of the equation by the March prime rate (5.50):
PriceMar = [tex]\( \frac{193.04 \times 2.75}{5.50} \) = \$96.52[/tex]
So, under the assumption of inverse proportionality, the price per share in March 2010 would be $96.52.
Munson Performance Auto, Inc., modifies 375 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year's performance as a benchmark for future comparison. You have assembled the following data. Resource inputs were: labor, 10500 hours; 500 suspension and engine modification kits; and energy, 100000 kilowatt-hours. Average labor cost last year was $25 per hour, kits cost $1,000 each, and energy costs were $5 per kilowatt-hour. The overall performance at Munson Performance Auto, Inc. = autos/dollar of input (round your response to six decimal places).
Answer:
overall performance 0.000297
Explanation:
cost of inputs:
labor 10,500 hours x 25 each = 262,500
suspension and engine 500 kits x 1,000 each = 500,000
energy 100,000 kilowatt-hous x 5 each = 500,000
total input resource cost 1,262,500
performance:
375 / 1,262,500= 0.00029703
rounding to 6 decimal places: 0.000297
The overall performance at Munson Performance Auto, Inc. will be 0.000297 auto per dollar of input if it modifies around 375 autos every year.
How to calculate overall performance?For calculation of the overall performance, all the input costs need to be calculated by using the information given above as,
[tex]\rm Labor\ Cost = Cost\ per\ Hour\ x\ Total\ Hours\\\\\rm Labor\ Cost = 10500\ x\ 25\\\\\rm Labor\ Cost = \$262500[/tex]
Calculating further,
[tex]\rm Kits\ Cost= 500\ x\ 1000\\\\\rm Kits\ Cost= \$500000[/tex]
And,
[tex]\rm Energy\ Costs = 100000\ x\ 5\\\\\rm Energy\ Costs = \$500000[/tex]
So, the total costs of the Munson Performance Inc. will be $1,262,500. Now calculating the overall performance costs,
[tex]\rm Overall\ Performance = \dfrac{No.\ of\ Autos}{Overall\ Costs} \\\\\rm Overall\ Performance = \dfrac{375}{1262500}\\\\\rm Overall\ Performance = 0.000297[/tex]
Hence, the overall performance of the Munson Performance Auto, Inc. will be 0.00297 autos per every dollar spent if it modifies 375 autos every year.
Learn more about overall performance here:
https://brainly.com/question/17657089
Economics is best defined as the study of:
A. prices and quantities.
B. inflation and interest rates.
C. how people make choices under the conditions of scarcity and the results of those choices.
D. wages and incomes.
Answer: The correct answer is "C".
Economics is best defined as the study of how people make choices under the conditions of scarcity and the results of those choices.
Explanation: Economics is a social science that studies how to manage the resources available (scarce) to meet human needs. In addition, it also studies the behavior and actions of human beings.
Economics is the study of choice regarding how resources are used in the face of scarcity, affecting decisions at all levels from individual to societal.
Explanation:Economics is best defined as the study of how people make choices under the conditions of scarcity and the results of those choices. This definition encompasses individual, family, business, and societal decisions. It's a social science that observes how people utilize the limited resources available to satisfy unlimited wants and needs. In essence, resources such as labor, tools, land, and raw materials are finite, and economics analyzes how these resources are allocated to produce goods and services. It is not solely focused on the study of prices and quantities, inflation, interest rates, or wages and incomes, but rather on the more expansive concept of decision-making in the presence of scarcity.
Learn more about Economics here:https://brainly.com/question/31640573
#SPJ6
A company has the following balances on December 31, 2018, after year-end adjustments: Accounts Receivable = $62,500; Allowance for Uncollectible Accounts = $6,200.
Calculate the net realizable value of accounts receivable.
Answer:
the net realizable value of accounts receivable $56.300
Explanation:
To calculate the net realizable value of accounts receivable is necessary to deduct from Account Receivable the total credit amount of the Allowance for Uncollectible Accounts.
The Debit value of Accounts Receivable minus the credit balance of Allowance for Uncollectible Accounts gives the Net Value of Accounts receivables.
Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as
a. an increase in current liabilities.
b. an increase in stockholders' equity.
c. a footnote.
d. an increase in current liabilities for the current portion and long-term liabilities for the
long-term portion.
Answer: a footnote
Explanation: Cumulative preferred dividends refers to the dividends that are outstanding from the company's side. The company have the obligation to pay such dividends before any payment is made to the common stockholders of the company.
Although it is an obligation to the company, it is recorded in the footnotes of the balance sheet of the company for the year as it is considered as a secondary information.
Cumulative preferred dividends in arrears should be shown on a corporation's balance sheet as c. a footnote.
Explanation:Cumulative preferred dividends in arrears are typically noted as a footnote on a corporation's balance sheet because they do not qualify as a liability until declared by the board of directors.
A cumulative preferred dividend is a type of dividend that, if omitted, must be paid to shareholders in the future. Dividends in arrears are not considered a liability, as they are not legally due until declared by the corporation's board of directors. Therefore, option a, b and d are incorrect.
While dividends in arrears are not considered liabilities, they offer vital information to both current and potential shareholders, hence, are usually disclosed as a footnote to the financial statements.
Learn more about Cumulative Preferred Dividends here:https://brainly.com/question/13172643
#SPJ3