Answer:
a. Economic profit takes into account all costs involved in producing a product.
Explanation:
Numeral A is the only correct option in the question.
Economic profit takes into account all costs: explicit costs and implicit costs. Explicit costs are the monetary costs that we incurr when we run a business, such as wages, rent, and utilities.
Implicit costs are the opportunity costs that we incurr, in other words, what we gave up to run the business. For example, if you had a job, and quit to set up the business, your implic cost is the salary that you used to earn.
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.
As the chief financial officer (CFO), you identify that your firm needs to raise additionalfunds by selling new shares of stock. Which of the following refers to a specialist that assists corporations in the issue and sale of new securities? A. An investment bankerB. A commodities brokerC. An officer of the Securities and Exchanges Commission (SEC)D. An institutional investor advisor
Answer:
The correct option is A,an investment banker
Explanation:
Investment banks normally underwrites large issue of stock by buying the entire issue of shares at a discounted price to its face value and then selling them to individual or institutional investors at the face value,thereby making as a profit the spread between the face value and the discounted price.
The CFO would probably have to contact a prominent investment bank that has, based on track record,handled similar transactions in the past and recorded high success rate.
If a company does not intend to expand globally, but exports some products without customizing for international markets, it should organize around...a. transnational strategyb. standardization strategyc. an exporting strateg
If a company does not intend to expand globally, but exports some products without customizing for international markets, it should organize around an exporting strategy. Thus, option (c) is correct.
What is company?
The term "company" refers to legal entities that are lawfully registered under the Company Act. The company's major goal is to increase profits while maintaining goodwill. With the assistance of management, the organization was flawlessly run. Employees are compensated by the company.
A company's export strategy focuses mostly on domestic markets. It has no plans to expand abroad, but it does export some products to international markets without customizing them. Goods are manufactured in the nation of origin. Exporting may be profitable for many types of enterprises.
As a result, the company does not intend to expand globally it should organize around an exporting strategy. Therefore, option (c) is correct.
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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.
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.
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
If natural resources had become scarcer, then we would expect their a. prices to have risen more than inflation as they have. b. prices to have risen more than inflation, but they have not. c. known quantities to have fallen as they have. d. known quantities to have fallen but they have not.
Answer:
B. prices to have risen more than inflation, but they have not.
Explanation:
Natural resources are simply put, free gift of nature. They are naturally occurring resources that exists without the actions or manipulations of humans. The natural resources existing are either biotic or abiotic. Scarcity refers to limited resources. It's a phenomenon whereby there's shortage in the supply of resources or product. Just like every other resources, if natural resources becomes scarce, it obviously indicates a shortage in the supply of those resources leading to the expected increases in the prices of those resources. However, natural resources have not become scarcer.
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.
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
Willard has been assigned to a project development team in addition to his regular duties as a quality engineer. During this assignment he will report to both the project manager and his quality department manager. This situation ________.
Answer:
Violates unity of command
Explanation:
Willard will be in violation of unity of command because he has two reporting lines. To the the project manager and his quality department manager.
The conflict will become evident when there is a conflict between the two job roles. Willard is obligated to report to both managers and working with one of the manager's may conflict with his duties with the other one.
Western Company has net income of $100 million in 2018. If net income in 2019 is $175 million or more, executives will receive 2 million additional shares of common stock. How does this effect the calculation of diluted EPS?
Answer:
Diluted earnings per share (EPS) measures how EPS would be affected if all convertible securities are turned into common stock. As more convertible securities are turned into common stock, the EPS dilutes or decreases since net income must be divided by a larger amount of stocks.
In this case we are not told how many outstanding common stocks exist, but whatever the number, e.g. 50 million, the effect of the 2 million additional stocks given to the company's executives will reduce the EPS of all the outstanding common stocks. Current EPS = $175 million / 50 million = $3.50 per stock. With 2 million more common stocks, EPS = $175 million / 52 million = $3.37 per stock.
Final answer:
If executives receive additional shares of common stock, it would affect the calculation of diluted EPS by increasing the weighted average number of shares outstanding and potentially diluting the EPS.
Explanation:
The calculation of diluted earnings per share (EPS) takes into account the potential impact of potentially dilutive securities on the company's earnings per share. In this case, if executives receive 2 million additional shares of common stock, it would increase the weighted average number of shares outstanding and potentially dilute the EPS.
To calculate diluted EPS, you would add the additional shares received by the executives to the denominator of the EPS formula, which is the weighted average number of shares outstanding. This would result in a larger number of shares and, all else being equal, a lower diluted EPS.
For example, if the weighted average number of shares outstanding is 100 million and the net income is $175 million, the diluted EPS would be calculated as $175 million / (100 million + 2 million) = $1.73 per share.
If equilibrium exists:a) the number of buyers will equal the number of sellers. b) the price in that market will not fluctuate by more than 5%. c) all individuals must have an equal amount of income. d) there will be no remaining opportunities for individuals to make themselves better off.
Answer:
Explanation:
At equilibrium market demand =market supply and there is no pareto improvement over the equilibrium.Pareto improvement is where somebody can be improved off without intensifying other.
At equilibrium,total number of quantities that purchaser needs are equivalent to amounts which a providers needs to sell at a given cost
It does not implies all people will have same pay and market cost can vary by over 5% if request or supply changes
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
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
Jim Delaney sold his pizza firm to an investor who then sold stock to the public. Jim now earns a salary of $5,000 a month and all the profits are distributed to the stockholders. This firm is an example of a:________
1. corporation.
2. sole proprietorship.
3. nonprofit corporation.
4. partnership because Jim Delaney partnered with an investor.
Answer: Corporation
Explanation:
Corporation is a form of business operation whereby the business is declared as a separate, legal entity which is guided by a group of officers that are called the board of directors. A corporation typically exists as a separate entity as it is separate from the owners of the business
corporations are their own legal owners control through the shares they have in the company. When incorporating, you will have the opportunity to state how many shares you own as the register of the corporation.
Corporations results in individuals working together to generate a profit and corporations, are also given additional benefits by the state.
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
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.
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.
Consider an economy with two types of firms, S and I. S firms always move together, but I firms move independently of each other. For both types of firm there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.(a) What is the expected return for an individual firm?
(1) 14% (2) 3% (3) 5% (4) -5%
(b) The standard deviation for the return on an individual firm is closest to:
(1) 23% (2) 5.25% (3) 15% (4) 10%
Based on the probabilities and returns, the following are true:
Expected return = 5%Standard deviation = 23%Expected return is the weighted average of probabilities and returns:
= (Probability of payoff x Payoff) + (Probability of second payoff x Second payoff)
= (70% x 20%) + (30% x -30%)
= 5%
Standard deviation requires that variance is calculated first:
Variance = ∑((Probability x Difference between return and expected return) )²
= ((70% x (0.2 - 0.05)) + ( 30% x (-30% -0.05)))²
= 0.0525
Standard deviation:
= √Variance
= √0.0525
= 0.023
= 23%
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The expected return for an individual firm is 5%. The standard deviation for the return on an individual firm is closest to 23%.
Explanation:The expected return for an individual firm is calculated by adding the product of each possible outcome and its respective probability. For firm S and I, that would be (0.7 * 20%) + (0.3 * -30%) = 14% - 9% = 5%. Hence, 5% is the expected return.
Now, let's calculate the standard deviation. It gives us a measure of the variation or dispersion of the returns. First, we calculate the variance by squaring the difference between each possible outcome and the expected return, multiplying this by their respective probability, and adding these up [(0.7 * (20%-5%)^2) + (0.3 * (-30%-5%)^2)]. This results in 0.0525 or 5.25% when converted to percentage. The standard deviation is then found by finding the square root of the variance which is approximately 22.9% or closest to 23%.
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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
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%.
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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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.
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.
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.
Sammy's Soups markets just one product: canned soup. However, it markets 27 different varieties of canned soup. Based on this information, it is evident that Sammy's Soups has a a. deep product line but a narrow product mix. b. broad product line and a wide product mix. c. narrow product line but a deep product mix. d. narrow product line and a wide product mix.
Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that it is evident that Sammy's Soups has a deep product line but a narrow product mix. This is because he only offers one category of items, which are soup making his product mix all but non-existent, yet he offers 27 different varieties of soup which makes his product line very deep.
Answer:
A. Deep product line but a narrow product mix.
Explanation:
From the scenario given, it can be inferred that Sammy's Soups markets one product, however, they have 27 different varieties of the product. This implies that they possess a deep product line but a very narrow product mix.
When a company or business possesses one or a few products but different varieties within the product, it is said to have a deep product line but a narrow product mix.
One major disadvantage of this is that when the need for the product reduces, it affects the company's profits drastically because it has only one product in the market in different forms.
Coronado Industries sells one product and uses a perpetual inventory system. The beginning inventory consisted of 77 units that cost $19 per unit. During the current month, the company purchased 476 units at $19 each. Sales during the month totaled 355 units for $45 each. What is the cost of goods sold using the LIFO method
Answer:
$6745
Explanation:
Given: Beginning inventory is 77 units at the cost of $19 per unit.
Purchased inventory is 476 units at $19 per unit.
Sales during the month is 355 units at $45 per unit.
Now, let´s find the cost of goods sold using LIFO method.
We know, LIFO method is Last in first out, which sell out inventory, which are most recently purchased. In a period of rising prices, LIFO inventory method tends to give the highest reported cost of goods sold.
As sales unit is 355 units.
Let´s take units from recent purchased inventory.
Cost of good sold= [tex]355\ units\times 19= \$ 6745[/tex]
Hence, the cost of goods sold using the LIFO method is $6745.
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.
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 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.