Answer:
C. Facts
Explanation:
When offering bad news to a person it is important to reduce the negative effect of the news.
Buffering is the method by which effect of bad news is communicated without causing a negative reaction.
In opening the best technique is to present facts. This makes the receiver reason with the logic of the bad news.
For example if a staff is to be laid off. A good opening can be to state the need for the business to reduce staff in order to survive a trying economic climate.
You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location (A) requires a $1,000,000 average investment and is expected to yield annual net income of $160,000. The second location (B) requires a $600,000 average investment and is expected to yield annual net income of $108,000. Compute the return on investment for each Fast & Great Burgers alternative.
Answer:
ROI for location A = 16%
ROI for Location B = 18%
Explanation:
Return on Investment is the proportion of operating assets that an investment center earned as as net operating income.
It is calculated as follows
ROI = operating income/operating assets
ROI for Investment center for first location
= (160,000/1,000,000) × 100
=16%
ROI for Investment center for second location
=(108,000/600,000) × 100
= 18%
Answer:
First location ROI is 16%
Second location ROI is 18%
Explanation:
The formula for return on investment is given as the net income divided by the average investment that yielded the net income.
The ROI for the proposed first location is computed thus:
average investment required in the first location is $1,000,000
Annual net income expected from first location is $160,000
Return on investment=$160,000/$1000,000*100
=16.00%
The ROI for the proposed second location is computed thus:
average investment required in the first location is $600,000
Annual net income expected from first location is $108,000
Return on investment=$108,000/$600,000*100
=18.00%
Based on ROI , the second location is preferred since it results in a higher ROI with less average investment
At the beginning of the month, the Forming Department of Martin Manufacturing had 30,000 units in inventory, 30% complete as to materials, and 10% complete as to conversion. During the month the department started 80,000 units and transferred 92,000 units to the next manufacturing department. At the end of the month, the department had 18,000 units in inventory, 80% complete as to materials and 70% complete as to conversion. If Martin Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.
Answer:
the equivalent units for :
materials = 106,400
conversion = 104,600
Explanation:
Calculation of the equivalent units for materials
Note : Units of Ending Work In Process are 80% complete as to materials
Units of Ending Work In Process (18,000×80%) = 14,400
Units Completed and Transferred (92,000×100%) = 92,000
Total =106,400
Calculation of the equivalent units for conversion
Note : Units of Ending Work In Process are 70% complete as to conversion
Units of Ending Work In Process (18,000×70%) = 12,600
Units Completed and Transferred (92,000×100%) = 92,000
Total =104,600
g Beginning WIP inventory Direct materials costs $ 31,300 Conversion costs 40,700 Current period costs Direct materials costs $ 290,950 Conversion costs 1,139,550 Required: a. Compute the cost equivalent units for the conversion cost calculation assuming Campo uses the weighted-average method. b. Compute the cost per equivalent unit for materials and conversion costs for November.
Answer:
conversion units 580,100
materials units 617,000
equivalent unit cost materials: $ 0.52
equivalent unit cost conversion: $ 2.03
Explanation:
MISSING INFORMATION:
Materials are added at the beginning
Beginning work in process (56% complete) 57,000
Started in November 560,000
Completed in November and transferred out 535,000
Ending work in process (55% complete) 82,000
Weighted-Average:
completed + percentage of completion
conversion:
535,000 + 82,000 x 55% = 580,100 units
materials:
535,000 + 82,000 x 100% = 617,000 units
Cost per EU:
Materials cost:
31,300 + 290,950 = 322.250
per unit 322,250 / 617,000 = $ 0,5222
Conversion cost
1,139,500 + 40,700 = 1,180,200
per unit $ 1,180,200 / 580,100 = $ 2,03
Airline Accessories has the following current assets: cash, $101 million; receivables, $93 million; inventory, $181 million; and other current assets, $17 million. Airline Accessories has the following liabilities: accounts payable, $96 million; current portion of long-term debt, $34 million; and long-term debt, $22 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Airline Accessories. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.)
Final answer:
The current ratio for Airline Accessories is 3.02 and the acid-test ratio is 1.62.
Explanation:
To calculate the current ratio for Airline Accessories, you need to divide the total current assets by the total current liabilities.
The total current assets for Airline Accessories is $101 million + $93 million + $181 million + $17 million = $392 million.
The total current liabilities for Airline Accessories is $96 million + $34 million = $130 million.
Therefore, the current ratio for Airline Accessories is $392 million / $130 million = 3.02.
To calculate the acid-test (or quick) ratio, you need to exclude the value of inventory from the current assets and divide the result by the total current liabilities.
The quick assets for Airline Accessories is $101 million + $93 million + $17 million = $211 million.
Therefore, the acid-test ratio for Airline Accessories is $211 million / $130 million = 1.62.
The company is currently selling 8,000 units per month. Fixed expenses are $719,000 per month. The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
Answer:
The following data is missing in the question which is being reproduced;
Selling price $140
Variable Cost $28
Contribution Margin $112
Explanation:
Increase in sale 180*140 $25,200
Variable Cost 180*28 ($5,040)
Net contribution margin $20,160
Advertising expense-incremental ($20,000)
Net Increase in operating income $160
The net operating income will increase with just $160 because of this change.
Company A estimates that it needs 30% of sales in net working capital. In year 1, sales were $1 million and in year 2, sales were $2 million. Associated with the change in net working capital from year 1 to year 2 is a cash: inflow of $300,000. outflow of $300,000. inflow of $600,000. outflow of $600,000.
Answer:
There is an outflow of $300000
Explanation:
The net working capital is the net value of capital available to finance day to day operations of the business. It is calculated as current assets less current liabilities.
The Change in net working capital can be calculated by deducting the net working capital for the previous year from the net working capital for the current year.
The net working capital in year 1 was = 1m * 0.3 = $300000
The net working capital in year 2 was = 2m * 0.3 = $600000
The change in net working capital is = 600000 - 300000 = $300000
An increase in net working capital means more cash is tied up in inventory, accounts receivables and other assets. Thus, there is a cash outflow of $300000
Final answer:
The cash flow associated with the change in net working capital from year 1 to year 2 for Company A is a cash outflow of $300,000.
Explanation:
The student is asking how to calculate the change in net working capital between two consecutive years given the percentage of sales required for net working capital and the sales figures for each year. For year 1, the net working capital required would be 30% of $1 million, which equals $300,000. For year 2, the net working capital required would be 30% of $2 million, which equals $600,000. The change in net working capital from year 1 to year 2 is therefore an additional $300,000 needed. Since Company A needs more working capital in year 2, it implies that there is a cash outflow of $300,000 to meet the net working capital requirement.
Referencing the self-check question provided, if a firm had sales revenue of $1 million last year and spent $600,000 on labor, $150,000 on capital and $200,000 on materials, the firm's accounting profit would be calculated as follows:
Accounting profit = total revenues minus explicit costs = $1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000.
On October 31, 2016, the balances of the accounts appearing in the ledger of Prestige Furnishings Company, a furniture wholesaler, are as follows:
Accumulated Depreciation-Building $746,350
Administrative Expenses 515,750
Building 2,419,500
Cash 168,150
Common Stock 300,500
Cost of Merchandise Sold 3,925,500
Dividends 179,100
Interest Expense 9,950
Merchandise Inventory 1,020,900
Notes Payable 259,350
Office Supplies 19,150
Retained Earnings 1,343,400
Salaries Payable 7,600
Sales 6,144,850
Selling Expenses 732,500
Store Supplies 92,700
Required:
A. Prepare a multiple-step income statement for the year ended October 31, 2016. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.
B. What is a major advantage of the multiple-step income statement over the single-step income statement?
Answer and Explanation:
A. The preparation of the multiple income statement is presented below:
Prestige Furnishings Company
Multiple-step income statement
For the year ended October 31, 2016
Sales $6,144,850
Less: Cost of goods sold -$3,925,500
Gross profit $2,219,350
Less: Operating expenses
Administrative expenses -$515,750
Selling expenses -$732,500
Supplies expenses -$92,700
Total operating expenses -$1340,950
Operating income $878,400
Non operating income or others
Less: Interest expense -$9,950
Net income $868,450
B. The major advantage is that the multiple-step income statement reflects the relationship between the gross profit ratio i.e gross profit to sales that expressed in a percentage form and it also depicts the multiple levels indicating the operating expenses, operating income, non operating income, etc
Torid Company processes 18,700 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $10 per gallon and Product Y, the main product, sells for $150 per gallon. The following information is for December: Beginning Ending Production Sales Inventory Inventory Product X: 5,975 5,800 0 175 Product Y: 10,575 10,655 100 20 The manufacturing costs totalled $30,000. How much is the ending inventory for the byproduct if byproducts are recognized in the general ledger at the point of sale?
Answer:
$0
Explanation:
Data given in the information
Product X is the byproduct.
In addition, the By products are recorded in the general ledger at the point of sale
So in this case, the quantity sold is considered only no other things would be recognized
Hence, in this the quantity sold and quantity produced is not recorded
Therefore , No ending inventory should be recognized in the general ledger for this by products
The ending inventory for the byproduct, Product X, is valued at $58,000, which is calculated by multiplying the ending inventory of 5,800 gallons by the selling price of $10 per gallon.
Explanation:To calculate the ending inventory for the byproduct, we first need to understand that byproducts are typically accounted for at the point of sale. In this case, we are given data for two products, Product X and Product Y - where Product Y is the main product. Since Product X does not have any production mentioned, we can infer that it is the byproduct. Based on the information given, Product X had a beginning inventory of 5,975 gallons and an ending inventory of 5,800 gallons. Since there was no production added, the difference is the quantity sold, which is 175 gallons (5,975 - 5,800).
We also know that Product X sells for $10 per gallon. To value the ending inventory for the byproduct, we take the gallons of ending inventory multiplied by the selling price. The calculation will be as follows:
Ending inventory for Product X (byproduct): 5,800 gallonsSelling price per gallon for Product X: $10Value of the ending inventory: 5,800 gallons x $10/gallon = $58,000Hence, the value of the ending inventory for the byproduct is $58,000.
Park Corporation is planning to issue bonds with a face value of $750,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required:
1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the issuance of bonds. Note: Enter debits before credits. Date General 3 Debit Credit January 01 Record entry Clear entry View general journal
Answer:
Debit cash with $750,000; and credit Bond payable also with $750,000.
Explanation:
The journal entry will appear as follows:
Date Details Dr ($) Cr ($)
Jan. 1 Cash 750,000
Bond Payable 750,000
To record the issuance of bond.
The Turquoise Oasis Spa places orders for cases of bath salts through a nearby wholesaler. To summarize several orders worth of data, it may prove beneficial to determine how many orders of bath salts were for 1 to 10 cases, between 11 and 20 cases, 21 to 30 cases, 31 to 40 cases, and more than 40 cases. This is an example of ________.
Answer:
grouping the data into bins
Explanation:
Grouping the data into bins-
It refers to the method of grouping the objects according to the classification, into different bins, is referred to as the method of grouping the data into bin.
From the given scenario of the question,
The Turquoise Oasis Spa, classify the orders into various bins, according to the cases 1 to 10 , 11 to 20... and so on, it helps to make the process faster and easy to perform.
Hence, the scenario of the question, is an example of grouping the data into bins.
Final answer:
The Turquoise Oasis Spa's method of summarizing bath salt orders by the number of cases falls under the category of data classification, which is a part of statistics in mathematics.
Explanation:
The scenario described involving the Turquoise Oasis Spa summarizing orders of bath salts into groups is an example of data classification. Classifying the orders into distinct categories based on the number of cases is a way to organize data, which is a fundamental aspect of statistics, a branch of mathematics. By doing so, the spa can better understand the distribution of their orders and assess their inventory needs.
Davis Company has analyzed its overhead costs and derived a general formula for their behavior: $65,000 + $14 per direct labor hour employed. The company expects to use 50,000 direct labor hours during the next accounting period. What overhead rate per direct labor hour should be applied to jobs worked during the period?
Answer:
$15.3 per direct labor hour
Explanation:
Overhead costs are those costs which are incurred for the manufacturing of the product but not directly attributable to any product / service. It can be variable or fixed.
Formula for overhead costs = $65,000 + $14 per direct labor hour
Numbers of direct labor hours = 50,000 hours
Total Cost = $65,000 x ($14 x 50,000 ) = $765,000
Over head rate per direct labor hour = Total overhead cost / Numbers of direct labor hours = $765,000 / 50,000 = $15.3 per direct labor hour
If the goods delivered by the seller do not conform to the contract, _____. the buyer can pay for the units accepted at a price lower than the price per unit provided in the contract the buyer can accept only part of a commercial unit and reject the rest the buyer cannot reject an installment delivery even if the nonconformity substantially affects the value of that delivery the buyer can accept any commercial units and reject the rest
Answer:
The correct answer is letter "B": the buyer can accept only part of a commercial unit and reject the rest.
Explanation:
The Right to Reject Nonconforming Goods or Improperly Tendered Goods applies under the case a buyer and a seller agreed on the acquisition of certain goods under certain characteristics but at the time of the delivery, the products do not match what was agreed in the contract. Under that scenario, the buyer can:
Reject all the products Accept all the products Accept any commercial unit and reject the rest
In an option contract: a. the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time b. the offeree is free to accept or reject the offer c. all of the above d. a separate contract is created for the limited purpose of keeping the offer open
Answer:
d. a separate contract is created for the limited purpose of keeping the offer open
Explanation:
The contract defines that it is a contract between two or more persons in which the legal agreement, offers acceptance by the offeree is there and thus it is a lawful contract which is created by mutual agreement between the parties.
If the offeree offers the offeror some value in return for a commitment not to withdraw the offer for a given period of time, a contract option was established. A choice is a separate contract with the specific intention of holding the offer open.
The marginal propensity to consume is the:
a. dollar amount that income increases by when consumption increases by $1.
b. dollar amount that consumption increases by when income increases.
c. proportion of total income that is consumed.
d. proportion of extra income that is consumed.
Answer: proportion of extra income that is consumed. (D)
Explanation:
The marginal propensity to consume is the proportion of an additional income that an individual consumes.
For example, if a household earns an extra dollar of disposable income, while the marginal propensity to consume is 0.60 this means that at that dollar, the household will spend 60 cents and save 40 cents.
The following information relates to last year's operations at the Legumes Division of Gervani Corporation: Minimum required rate of return 3 % Return on investment (ROI) 5 % Sales $ 730,000 Turnover (on operating assets) 2 times What was the Legume Division's net operating income last year
Answer:
$18,250
Explanation:
In this question, we are asked to calculate the net operating income for a division of a firm.
We proceed as follows;
Turnover=Sales/Average operating assets
Average operating assets=(730,000/2)=$365000
Return on investment=net operating income/Average operating assets
Hence Average operating assets=($365000*5%)
which is equal to
=$18250.
You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $45,000 annually. You own a home with a $150,000 mortgage, and you owe $11,600 on car loans, $7,200 in personal debt, and $3,250 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $8,000. Estimate your total insurance needs using the DINK method.
Answer:
The Insurance needs using DINK method is $94,025
Explanation:
In order to calculate the total insurance needs using the DINK method, we would have to use the following formula:
Insurance needs using DINK method = Funeral expense + 0.5 × Mortgage + 0.5 × Car loan + 0.5 × Personal debt + 0.5 × credit card loans
= $8,000 + 0.5 ×$150,000 + 0.5 ×$11,600 + 0.5× $7,200 + 0.5 × $3,250
= $8,000+$75,000+$5,800+$3,600+$1625
=$94,025
Hence, the Insurance needs using DINK method is $94,025
Using the DINK method, the total insurance needs are calculated by adding all debts and estimated funeral expenses, which amounts to $180,050 for this couple.
To estimate your total insurance needs using the DINK method, you would focus on debts and final expenses, as there are no dependent children. First, let's total your debts: you have a $150,000 mortgage, $11,600 in car loans, $7,200 in personal debt, and $3,250 in credit card loans. Adding these together gives you a total debt of $172,050. Additionally, you estimate funeral expenses to be $8,000. Therefore, your total estimated insurance needs would be $180,050 ($172,050 in debts plus $8,000 for funeral expenses).
Chang Industries has 1,000 defective units of product that already cost $54 each to produce. A salvage company will purchase the defective units as is for $25 each. Chang's production manager reports that the defects can be corrected for $46 per unit, enabling them to be sold at their regular market price of $41. The $54 per unit is a:
Answer:
The $54 is a sunk cost. It won't vary whether you choose to sell them as it is or to continue processing. A sunk cost is a cost that already took place and has no weight in the decision process.
Explanation:
Giving the following information:
Chang Industries has 1,000 defective units of product that already cost $54 each to produce.
The $54 is a sunk cost. It won't vary whether you choose to sell them as it is or to continue processing. A sunk cost is a cost that already took place and has no weight in the decision process.
The Geller Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $510 $540 $600 $750 a. Accounts receivable at the beginning of the year are $270. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Answer:
The correct answer are $525, $525, $570 and $675 respectively.
Explanation:
According to the scenario, the computation of the given data are as follows:
Collection period = 45 days
Days in one quarter = 90 days
So, Amount collected during the quarter = ( 90 - 45) / 90 = 1/2 of current sales + Beginning Accounts receivables
So, we can calculated the cash collection as follows:
Q1 Q2 Q3 Q4
Beginning A/c. receivables $270 $255 $270 $300
Sales $510 $540 $600 $750
Cash Collections $525 $525 $570 $675
Ending A/c Balance $255 $270 $300 $375
Note: Ending balance is the beginning balance for next quarter.
The Geller Company's cash collections per quarter are calculated based on a 45-day collection period. Collections each quarter are calculated as half the sales of the current quarter plus half the sales of the previous quarter, or initial accounts receivable in Q1's case.
Explanation:The collection period for the Geller Company is 45 days, which represents half of a quarter because a quarter has 90 days. This means that the cash collected in a given quarter is the sum of half of the sales of the current quarter and half of the sales of the previous quarter.
So, the cash collections would be calculated as follows:
Q1: Half of Q1 sales + Half of initial accounts receivable = 0.5 * $510 + 0.5 * $270 = $390Q2: Half of Q1 sales + Half of Q2 sales = 0.5 * $510 + 0.5 * $540 = $525Q3: Half of Q2 sales + Half of Q3 sales = 0.5 * $540 + 0.5 * $600 = $570Q4: Half of Q3 sales + Half of Q4 sales = 0.5 * $600 + 0.5 * $750 = $675Please note that these calculations are based on the assumption that the company collects all payments on time, and there are no late or missed payments.
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Waterway Industries issued at a premium of $10100 a $192000 bond issue convertible into 3600 shares of common stock (par value $20). At the time of the conversion, the unamortized premium is $4300, the market value of the bonds is $212000, and the stock is quoted on the market at $60 per share. If the bonds are converted into common, what is the amount of paid-in capital in excess of par to be recorded on the conversion of the bonds?
Answer:
$124,300
Explanation:
The computation of paid in capital in excess of par is shown below:-
For computing the paid in capital in excess of par we need to find out first bond issue price, premium amortized, current book value of bonds and convertible shares which is below:-
Bond issue price = Bond price + Premium
= $192,000 + $10,100
= $202,100
Premium amortized = Premium - Unamortized
= $10,100 - $4,300
= $5,800
Current book value of bonds = Bond issue price - Premium amortized
= $202,100 - $5,800
= $196,300
Convertible into 3,600 (par value $20)
= 3,600 × $20
= $72,000
Now,
Paid in capital in excess of par = Current book value of bonds - Convertible
= $196,300 - $72,000
= $124,300
. The income elasticity of demand for medical care is 1.35. This implies that: a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%. b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care. d. if income increases by 1%, the quantity demanded for medical care decreases by 1.35%.
Answer:
The correct answer is a).
Explanation:
The income elasticity of demand refers to the percentual variation of quantity demanded of a certaing good in response to a percentual variation in income.
If the income elasticity of demand for medical care is 1.35,
a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%. TRUE, this is what the definition implies.
b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. FALSE. In this elasticity, the sign is relevant. This income elasticity implies that changes in income and medical care expenses have the same sign.
c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care. FALSE. The elasticity relates percentual variations, not absolute value variations.
d. if income increases by 1%, the quantity demanded for medical care decreases by 1.35%. FALSE. The same as point b.
Final answer:
The income elasticity of 1.35 implies that a 1% increase in income leads to a 1.35% increase in the quantity demanded for medical care. Price elasticity of -0.2 for health care indicates that demand for health care is price inelastic, often due to its necessity and lack of substitutes.
Explanation:
The income elasticity of demand for medical care is 1.35. This implies that if income increases by 1%, the quantity demanded for medical care increases by 1.35%.
Therefore, the correct answer to the student's question is 'd. if income increases by 1%, the quantity demanded for medical care increases by 1.35%.' It is important to note that income elasticity of demand is different from price elasticity of demand, which relates to how demand changes with price changes.
The price elasticity of demand for health care has been estimated to be -0.2. This characterizes the demand for health care as being price inelastic since the absolute value of the elasticity is less than 1.
Despite health care being a substantial part of consumer budgets, the elasticity can be low because it is generally a necessity with few substitutes, implying consumers will continue to purchase it even when prices increase.
The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process): Units Material Costs Beginning work in process 54,000 $ 148,500 Started in May 144,000 475,200 Units completed 153,000 Ending work in process 45,000 Required: Compute the cost per equivalent unit for materials using the weighted-average method. (Round "Cost per equivalent unit" answer to 2 decimal places.)
Answer:
$3.15
Explanation:
The computation of the cost per equivalent unit for material is shown below:
As we know that
Cost per equivalent unit of material is
= Total cost ÷ Total equivalent units
where,
Total cost is
= $148,500 + $475,200
= $623,700
And, the
Equivalent units of materials is
= 153,000 units + 100% of 45,000 units
= 198,000 units
So,
The Cost per equivalent unit for materials is
= $623,700 ÷ 198,000 units
= $3.15
By dividing the total cost with its Equivalent units of materials we can get the cost per equivalent unit for material
Which of the following is not one of the strengths of the Cobb-Douglas production function?
a. Both marginal product and returns to scale can be estimated from it.
b. It can be converted into a linear function for ease of calculation.
c. It shows a production function passing through increasing returns to constant returns and then to decreasing returns.
d. The sum of the exponents indicates whether returns to scale are increasing, constant or decreasing.
Answer:
Option D is correct one.
In Cobb-Douglas production, the return to scale depends on the sum of the exponents.
Explanation:
It shows a production function passing through increasing returns to constant returns and then to decreasing returns.
Sunland Company had $186,200 of net income in 2019 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $575,800. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Sunland Company is under pressure from stockholders to increase net income by $38,100 in 2020. Collapse question part (a) Incorrect answer. Your answer is incorrect. Try again. Compute the number of units sold in 2019. Entry field with incorrect answer 13335 units
Answer: 12,700 units.
Explanation:
We are to compute the number of units sold.
Let's get the important figures first,
Net Income earned = $186,200
Fixed costs =$575,800
We'd need the Contribution margin which is the difference between the sales and the variable costs.
Another way to calculate it will be to add the net income and fixed assets so,
Contribution Margin earned = $186,200 + $575,800
= $762,000
Now we need to find out the Contribution Margin per unit to divide the Contribution Margin by,
Contribution Margin per unit = Selling price per unit – variable cost per unit
= 150-90
= $60
Now we can calculate the number of units sold like,
Number of units sold = 762,000/60
= 12,700 units
12,700 units were sold in 2019
If a buyer doesn't receive the item purchased or believes that the received item is different from what was described in the listing, eBay ____ helps the buyers and sellers resolve the dispute.
Answer:
The correct answer is letter "B": Buyer Protection.
Explanation:
A company's Buyer Protection Department is in charge of assisting consumers with queries related to their purchases. This department looks for providing clients support in front of problems that arise after the purchase of products such as items malfunction, mistaken product delivery, or unattended orders. Most retailers, such as eBay, have a Buyer Protection Department.
The income tax rate on all forms of income is 40 percent and there is a tax of 10 percent on all consumption expenditure. The nominal interest rate is 7 percent a year and the inflation rate is 5 percent a year. What is the size of the tax wedge on wages? What is the true tax rate on interest income?
Final answer:
The tax wedge on wages is 40 percent of the gross wage earned, and the true tax rate on interest income is 50 percent.
Explanation:
The tax wedge on wages is the difference between the gross wage earned by a worker and the net wage received after taxes. In this case, the income tax rate is 40 percent.
Therefore, the tax wedge on wages would be 40 percent of the gross wage earned.
The true tax rate on interest income accounts for both income tax and consumption tax.
The income tax rate is 40 percent, and there is a tax of 10 percent on all consumption expenditure.
So, the true tax rate on interest income would be the sum of the income tax rate and the consumption tax rate, which is 40 percent + 10 percent = 50 percent.
On January 1, 2017, Walker Sales issued $19,000 in bonds for $14,300. These are eight-year bonds with a stated rate of 13%, and pay semiannual interest. Walker Sales uses the straight-line method to amortize the bond discount. After the second interest payment on December 31, 2017, what is the bond carrying amount? (Round your intermediate answers to the nearest cent, and your final answer to the nearest dollar.)
Answer:
$14,887.5
Explanation:
Carrying Value of the bond is the net of Face value and any amortised discount on the bond.
Face Value of the bond = $19,000
Issuance Value = $14,300
Discount Value = $19,000 - $14,300 = $4,700
This Discount will be amortized over the bond's life until the maturity on straight line basis.
Amortization in each period = $4,700 / (8x2) = $293.75 semiannually
Until December 31, 2017 two payment have been made and $587.5 is amortized in the two semiannual periods.
Un-amortized Discount = $4,700 - $587.5 = $4,112.5
Carrying value of the bond = Face value - Un-amortized Discount = $19,000 - $4,112.5 = $14,887.5
Perry, a buyer for Superior Products Company, a manufacturer of bulletin boards and other office supplies, visits a lumberyard and is shown samples of cork by Monica, a salesperson. Perry agrees to buy a certain quantity based on Monica's statement that the shipment will match a selected sample. The statement is:________
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffing
Answer:
The correct answer is letter "A": an express warranty.
Explanation:
An express warranty is an arrangement established by a buyer and a seller so that the seller is in charge of repairs of a good sold by the seller in case it presents failures under certain circumstances. The warranty covers the product for a specified time in the contract and must be written in case the purchase value of the product is higher than $15.
A cash advance Group of answer choices Involves a grace perod on most cards Is a loan billed to your bank account. On some cards has a lower interest rate than on purchases Requires you to pay interest every day until you repay the cash advance Is less expensive than charging a purchase to your credit card
Answer:
The correct answer is letter "C": Requires you to pay interest every day until you repay the cash advance.
Explanation:
A cash advance is a form of loan an individual must pay in the short-run. In some cases, they are debited directly from the debtors' paycheck. The characteristic of this loan is carrying a relatively high-interest rate. If the debtor defaults, the debt amount increases exponentially. As the repayment is expected soon, the interest rate is compounded, meaning it is calculated by day until the total debt has been paid off.
You currently manage Cody’s investment portfolio. He provided you with the following information for the beginning and the end of the year:Investment balance (beginning of year): $100,000Investment balance (end of year): $115,000IRA balance (beginning of year): $75,000IRA balance (end of year): $82,000Net worth (beginning of year): $1,000,000Net worth (end of year): $970,000Annual savings to IRA: $5,000Which of the following statements is correct?The return on investments ratio is within the normal range.The return on the IRA ratio is 10%.The return on net worth ratio is 3.5%.The return on investments, return on IRA, and return on net worth ratios are all within the normal range.
Answer:
The correct Statement is the return on investments ratio is within the normal range.
Explanation:
Return on IRA = IRA balance - IRA beginning ÷ IRA beginning
= ($82,000 - $75,000) ÷ $75,000
= 9.33%
So, The return on the IRA ratio is 10% is incorrect
Return on Net Worth =(Net worth (end of the year) - Net worth (beginning of the year)) ÷ Net worth (beginning of the year)
= ($970,000 - $1,000,000) ÷ $1,000,000
= -3 %
Here, the second part is also incorrect as net worth ratio is 3.5%. and it come in negative return .
The return on investment, the return on IRA and the return on net worth ratios are all within the usual range is incorrect as Return on Net Worth is Negative.
Therefore, the correct Statement is the return on investments ratio is within the normal range.
Return on IRA = (Investment balance (end of year) - Investment balance (beginning of year) ÷ Investment balance (beginning of year)
= ($115,000 - $100,000) ÷ $100,000
= 15%
A product has a contribution margin of $8 per unit and a selling price of $45 per unit. Fixed costs are $26,000. Assuming new technology increases the unit contribution margin by 40 percent but increases total fixed costs by $18,800, what is the new breakeven point in units? (Do not round intermediate calculations.) Multiple Choice 3,250 units 5,000 units 4,680 units 4,000 units
Answer:
New break even in units is 4000 units
Explanation:
The break even point in units is the number of units that must be sold to earn enough total revenue to cover total costs. This is the point where there will be no profit and no loss. The formula for break even in units is,
Break even in units = Fixed costs / Contribution margin per unit
The new contribution margin per unit = 8 * 140% = $11.2
New Fixed costs = 26000 + 18800 = $44800
New Break even in units = 44800 / 11.2 = 4000 units
Final answer:
The new breakeven point, after accounting for a 40% increase in the unit contribution margin and an additional $18,800 in fixed costs, is 4,000 units.
Explanation:
To calculate the new breakeven point in units after the changes in the contribution margin and fixed costs, we need to follow these steps:
Calculate the new unit contribution margin: Original contribution margin per unit is $8. Increase by 40% is $8 * 0.40 = $3.20. So, the new contribution margin per unit is $8 + $3.20 = $11.20.Calculate the new total fixed costs: Original total fixed costs are $26,000. The increase is $18,800. Therefore, new total fixed costs are $26,000 + $18,800 = $44,800.Determine the breakeven point in units: Divide the new total fixed costs by the new unit contribution margin. $44,800 / $11.20 = 4,000 unitsThe new breakeven point after the implementation of new technology, which increased the unit contribution margin by 40 percent and increased total fixed costs by $18,800, is 4,000 units.