Answer:
The Implementation Phase
Explanation:
A marketing plan refers to a a future course of action relating to marketing tactics a firm is planning to employ and specifies the goals and objectives which are to be achieved. It provides direction and guides marketing efforts in a single direction i.e towards attainment of marketing objectives.
A strategic marketing plan is an in-depth marketing plan which specifies the long term marketing strategies, the markets in which the firm shall compete, the target customers and the means to attain marketing goals.
Such a plan incorporates the following phases:
Analysis : It means situational analyses and assessing organizational strengths and weaknesses and matching them with environmental threats and opportunities.Planning: This involves conducting marketing research and product testing and also planning for the price, promotion and distribution of products.Implementation: It refers to putting the plans into action and placing the products in the market based upon the distribution channel and markets planned for in previous stages.Control: This refers to analyzing sales, profit margins and customer satisfaction. Measuring the deviations against figures as anticipated and making necessary modifications in the marketing strategy accordingly.In the given case, the video game company had planned well w.r.t it's joint venture and strategy but failed to implement it effectively. This points to the company failing at the implementation phase of the strategic marketing process.
Assume you own and operate a small advertising business that employs 25 people. With increased health care costs and related insurance premiums you are contemplating the cancellation of health and hospitalization insurance for your employees. According to Maslow, your decision may cause your employees to become greatly concerned about:
A. self-esteem needs
B. affiliation needs
C. safety and security needs
D. self-actualization
Answer: (C) Safety and security needs
Explanation:
The Safety and the security needs are one of the type of Maslow's hierarchy model that helps us to protect from the job security, safe and the healthy environment. The safety and the security are the basic physiological needs that is necessary for survival to each person.
According to the given question, the decision made by an organization may cause the employees concerned about their safety and the various types of security requirement as employees can concentrate on given task in the healthy work environment only.
It is also helps in increase the productivity as well as growth of the business and an organization. Therefore, Option (C) is correct answer.
Import restrictions due to the imposition of tariffs by the U.S. government will ultimately cause inefficient resource allocation in the United States. will lead to lower incomes in the economy of U.S. trade partners. will lead to a decline in the quantity of the product consumed in the United States. all of the above are likely to occur
Answer:
all of the above are likely to occur
Explanation:
Import restrictions would limit the amount of goods imported into the US
as a result of the restriction, the amount of goods sold to the US by its trade partners would fall, as a result, the income of US trade partners would reduce.
Also, the quantity of goods available in the US would fall and consumption would fall.
Import restrictions might lead to US producing goods and services for ehuch it has no comparative advantage in its production. This would lead to ineeficent allocation of resources.
Mei feels irritated when Linda's unbridled enthusiasm often leads her to lose sight of critical project details. Linda feels frustrated when Mei often analyzes so many details that it slows down the decision-making process. The discord between Mei and Linda is explained by ________.
a. poor management.b. lack of self-disclosure.c. communication style bias.d. a poorly constructed team.
Answer:
C. Communication Style Bias
Explanation:
Communication style bias is a psychology state that occurs when an individual meets another individual or person whose communication style is different. A particular communication style describes the way in which an individual thinks and behaves. When working with an individual, getting in sync with the person's communication style becomes paramount to avoid irritations between the two. In this case, the way Mei thinks and behaves is very different from the way Linda thinks she behave hence why the have such negative perspectives about each other.
In his analysis of the Dell fraud for Forbes, Edward Hess comments: "Too often, the market's maniacal focus on creating ever-increasing quarterly earnings drives bad corporate behavior, as it apparently did at Dell. That behavior produces non-authentic earnings that obscure what is really happening in business. Short-termism can result in a range of corporate and financial games that may enrich management at the expense of market integrity and efficient investor capital allocation." Comment on Hess's statement from two(2) perspectives: earnings management and financial analysts earnings projections. Explain the difference between financial statement fraud and disclosure fraud. How did Dell use each one to produce materially misstated financial results
Answer:
As earnings naturally represent the managements ability and success, earnings is the item that is most prone to be misrepresented.
we know that projections are forecasts that are never 100% correct and these projections are extremely sensitive to macro environmental factors.
Financial statement fraud refers to intentional, fraudulent misrepresentations and miscalculations in the financial statement accounts, balances and cash flows. such fraudulent alterations are usually done at the accounts level and in those accounts and transactions.
Disclosure fraud refers to fraudulent activities and misrepresentations that are done by not including balances, hiding real figures and not disclosing essential and material items that are necessary to be disclosed.
Explanation:
Answer:
As earnings naturally represent the managements ability and success, earnings is the item that is most prone to be misrepresented.
we know that projections are forecasts that are never 100% correct and these projections are extremely sensitive to macro environmental factors.
Financial statement fraud refers to intentional, fraudulent misrepresentations and miscalculations in the financial statement accounts, balances and cash flows. such fraudulent alterations are usually done at the accounts level and in those accounts and transactions.
Explanation:
In order to create an appealing product reputation, Company MRKT has decided to pay to have its products featured in the background of popular shows; MRKT hopes consumers will have the mindset that if celebrities use those products, then so should they. Company MRKT is utilizing a(n) ______ strategy.
Answer:
Product Placement
Explanation:
A product placement strategy is when products appear on video productions with the goal of targeting a large amount of people that watch them. This helps to increase the sales but also the brand recognition. An example of this is when an actor in a TV show appears drinking a Coke. According to this, the answer is that Company MRKT is utilizing a product placement strategy because it is having its products featured in the background of popular shows.
Company MRKT is using a product placement strategy to feature its products in popular shows, leveraging viewers' associations with celebrities to influence consumer behavior. This method integrates products into TV or film content subtly. The goal is to make products appear desirable by association.
Company MRKT is utilizing a product placement strategy. This involves paying to have its products featured in the background of popular shows. The intent is to leverage the positive association viewers have with the celebrities in the show, thereby influencing consumer behavior towards buying these products.Product placement is a form of advertising where instead of traditional commercials, products are subtly integrated into television or film content. For example, if viewers see their favorite character using MRKT's products, they are more likely to perceive these products as desirable and fashionable.In the diluted earnings per share computation, the treasury stock method is used for options and warrants to reflect assumed reacquisition of common stock at the average market price during the period. If the exercise price of the options or warrants exceeds the average market price, the computation would:
Answer:
be antidilutive
Explanation:
The term antidilutive securities refers to financial instruments that are not in the form of common stock, but when converted into common stock will increase earnings per share.
A transaction can have an antidilutive effect on the earnings per share calculation if the proportional increase to the number of shares outstanding is smaller than the proportional increase to earnings
In the diluted earnings per share computation, the treasury stock method is used for options and warrants to reflect assumed reacquisition of common stock at the average market price during the period. If the exercise price of the options or warrants exceeds the average market price, the computation would BE ANTIDILUTIVE.
Antidilutive is a term that describes the effects of certain actions, such as securities retirement, securities conversion, or other corporate actions for example, acquisitions made through the issuance of common stock or other securities on the earnings per share (EPS) or voting power of existing shareholders.
A 30-year Treasury bond as a face value of $1,000, price of $1,200with a $50 coupon payment. Assume the price of this bond decreasesto $1,100 over the next year. The one-year holding period return is equal to:
A) -9.17%
B) -8.33%
C) -4.17%
D) -3.79%
Answer:
The one-year holding period return is equal to -4.17%, so the right answer is C.
Explanation:
In order to calculate the the one-year holding return we would have to use the fomula for Holding Period Return (HPR), which is the following:
HPR = Current Yield + Capital Change
Current Yield = Yearly Coupon Payment / Price Paid = 50/1200
Capital Change = (New Value-Old Value)/Original Value = (1100 - 1200)/1200 = -100/1200
HPR = (50-100)/1200 = -0.4166 = -0.417%
Answer:
C) -4.17%
Explanation:
The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.
According to given data
Initial Price of Bond = $1,200
Current Value of the bond = $$1,100
Yearly Coupon Payment = $50
Formula for Holding Period Return
HPR = [ Income + [ ( Expected value - Initial Value ) ] / initial value
HPR = [ Coupon Payment + [ ( Current Value - Initial Value ) ] / initial value
HPR = [ $50 + ( $1,100 - $1,200 ) ] / $1,200
HPR = [ $50 - $100 ] / $1,200
HPR = -$50 / $1,200
HPR = -0.0417 = -4.17%
Sarah, a manager at Ackles Inc, plays pranks on her subordinates in an attempt to make the workplace livelier. She trusts her subordinates and does not care much about the quality of their work. In the context of the Blake/Mouton leadership grid, which of the following leadership styles is Sarah using in this scenario?
A) The middle-of-the-road style
B) The country club style
C) The authority-compliance style
D) The impoverished style
Answer:
B) The country club style
Explanation:
Based on the scenario being described within the question it can be said that the leadership style being used is known as the country club style. This style focuses on showing most concern for employees and less concern for production processes, with the main idea that if individuals are happy with their job position then they will work harder which will in term, increase production.
Answer:
Sarah is using the country club style of leadership (option B)
Explanation:
According to Blake/Mouton leadership grid, the country club style of leadership is exhibited by leaders who prioritize their employees or subordinates needs and happiness over everything else.
Such leaders hold the belief that when their subordinates or employees are happy, they are inclined to work harder. What's more, such leaders or managers don't pay much attention to the quality of their subordinates output and rarely punish an erring employee.
In the current year, Wilma (who files as a head of household) reported regular taxable income of $150,000. She itemized her deductions, deducting $10,000 in charitable contributions and $2,000 in state income taxes. What is Wilma's alternative minimum taxable income
Answer:
152,000
Explanation:
In this question, we are asked to calculate Wilma’s alternative minimum taxable income.
We proceed as follows;
Mathematically ;
Regular taxable income = 150,000
+ State income tax = 2,000
+ Exemptions = 0( no claims according to this particular question)
Total alternative minimum taxable income =
150,000 + 2,000 + 0 = 152,000
Answer:
C. $152,000
Explanation:
Given that
Regular taxable income = 150000
State income = 2000
Therefore
Wilma alternative minimum taxable income = regular taxable income + state income taxes
Thus
= 150000 + 2000
= $152000
NOTE that, charitable contributions are not part of taxable income. Taxable income refers to the amount of income used in calculating tax that ab individual would pay.
If a for-profit firm that has paid out record bonuses to its executive every year while underfunding contributions to unionized workers' pensions required under the collective agreement then attempts to reduce workers' pension entitlements, the union members will most likely __________.
a) be unable to defend against this action.
b) take defensive strike action.
c) enter into collective bargaining
d) receive higher wages instead
Answer:
B. Take defensive strike action.
Explanation:
One of the functions of a trade union or labor union is to protect the interest of its members in a workplace. So, if a profit firm treats its workers poorly by underfunding contribution to workers pension as required under a collective agreement while paying out record bonuses to executives then attempts attempt to reduce workers pension entitlements, the union members will most likely embark on an industrial strike.
The aim of the strike is to halt daily operations of the firm until their demands are heard and an agreement is reached. The members of the union were treated unfairly by the firm by not honoring their pension funding agreement and to make matters worse the decided to try and reduce the workers pension.
If the members don't embark on the industrial strike, the firm would reduce their pension benefits. The most likely action of the union members would be to embark on a defensive strike action to protect themselves.
When Krispy Kreme decided to expand its operation internationally, it chose to first make its doughnuts available in Canada to minimize its risk. In accordance with the policy of risk minimization, the company sold the right to manufacture and sell its doughnuts to Canadians. In other words, Krispy Kreme used:
a. contract manufacturing
b. direct investment
c. importing
d. a strategic alliance
e. licensing
Answer:
The answer is E.
Explanation:
Licensing is a business arrangement in which one company(Krispy Kreme) authorizes another company(Canadian company) permission to manufacture its product for a specified payment. The benefits for licensing are:
1. To create business opportunities by expansion
2. It makes an entry into foreign market easier
3. It reduces risk for the two parties.
If the government changes taxes without changing government spending to eliminate the recessionary gap, will the minimum required change in taxes be greater than, smaller than, or equal to the minimum required change in government spending?
Answer:
Explanation:
If the government changes taxes without changing government spending to eliminate the recessionary gap, will the minimum required change in taxes be greater than, smaller than, or equal to the minimum required change in government spending?
The minimum required change in taxes will be greater than that of the minimum required change in government spending
tax multiplier (mpc/mps = 0/8/0.2=0.4) is smaller than the government spending multiplier (1/mps= 1/.2=5) because of the initial increase in disposable income caused by the decrease in income tax will be saved rather than spent
Final answer:
To close a recessionary gap, the required change in taxes needs to be greater than the change in government spending due to different impacts of the multiplier effect, especially during times when the economy is not near full employment.
Explanation:
When the government changes taxes without changing government spending to eliminate a recessionary gap, the minimum required change in taxes will be greater than the change in government spending. This is due to the multiplier effect associated with government spending, which is larger compared to the tax multiplier. Specifically, a reduction in taxes increases disposable income, leading to higher consumption but not on a one-to-one basis. However, direct government spending enters the economy completely, potentially having a larger initial impact on closing the recessionary gap. The effectiveness of tax cuts also depends on how close the economy is to full employment. In a recession, tax cuts can shift the aggregate demand (AD) rightwards effectively but may lead to inflation if the economy is near full employment.
Black Top Taxis is hiring new drivers. One of the key selection criteria for potential candidates is the ability to choose the right action quickly in response to several different signals and the ability to respond quickly to signaling information after it occurs. The selection criteria indicate that to be selected, a candidate must have the two psychomotor abilities ofA) perceptual speed and extent flexibility.B) control movement abilities and originality.C) visualization and gross motor coordination.D) response orientation and low response time.E) number facility and response orientation abilities
Answer:
The correct answer is letter "D": response orientation and low response time.
Explanation:
Response orientation refers to the ability individuals develop that allows them to choose rapidly between different alternatives portrayed. It does not only involves selecting an alternative quickly but choosing the correct option.
Low response time implies reacting in front of a given situation with the minimum delay possible. It shows how prepared an individual may be and how fast that person can provide solutions to face the event.
Mariel has a $60,000 basis in her partnership interest just before receiving a parcel of land as a liquidating distribution. She has no remaining precontribution gain and will receive no other distributions. Under what conditions will Mariel's basis in the land be $60,000?
Answer:
Explanation:
While accepting a benefit, the premise is commonly equivalent to the premise in the organization as long as there are no exchanging conveyances of cash, undiscovered receivables, and stock. In the event that such selling appropriations were incorporated they would have an all out premise to the association that is not exactly Mariel's premise in her organization, prompting a misfortune. Then again, the premise of an advantage will never increment. It can just continue as before or decline.
Mariel just gets land for this situation so her premise in the land will stay at $60,000, since she didn't get selling dissemination of cash, hidden receivables and stock.
Wildhorse Co. began the year 2022 with retained earnings of $651000. During the year, the company sold additional shares of stock for $1017000, recorded revenues of $649000, expenses of $376000, and paid dividends of $141000. What was Wildhorse's retained earnings balance at the end of 2022?
Answer:
$1,800,000
Explanation:
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
Ending retained earnings = Beginning retained earnings + additional stock issued + net income - dividend paid
= $651000 + $1017000 + $649000 - $376000 - $141000
= $1,800,000
A company makes tools, such as hammer and tape measures. One of their primary raw materials is steel and if they run out of steel they cannot make tools. The inventory level for steel is constantly monitored and when the reorder point is reached, an order is released for the economic order quantity. The tool company uses which of the following independent demand inventory systems for steel?
Answer:
Continuous review system
Explanation:
This is a continuous review system because from the arrangement the inventory level of steel is being monitored constantly and a specified amount of it is reordered at variable intervals. To determine the interval between these orders, the usage rate of Steel should be taken into account during the time between placing the order and when ordered material was delivered. With this, there is monitoring of steel which is the stock after every withdrawal. and when there is a drop in the stock level to a point of reorder, a fixed quantity is ordered.
Red Baron Pizza discovered that if it reduced the retail price of its pizzas by 25% from $8 to $6, the demand for its pizzas increased 50% from 2 million to 3 million pizzas. Based on this experience they concluded that the elasticity of demand for their pizza products was:
Answer:
Elasticity of demand for their pizza products was 2
Explanation:
The formula for calculating elasticity of demand is given as:
Percentage change in quantity demanded divided by the percentage change in price.
From the question above, we are given the following:
Percentage change in quantity demanded = 50%
Percentage change in price = 25%
Therefore:
Elasticity of demand = 50% / 25%
Elasticity of demand = 2
Charles Malone recently renewed his card membership
at DiscountMania. The card has an annual $40 fee, but Charles believes that it
pays for itself because he receives good prices on electronics, contact lenses,
and even tires for his car. Shortly after renewing the card, Charles began
receiving calls from collection agencies claiming that he owed money. With the
help of others, he learned that another Charles Malone also owned a
DiscountMania card, and wrote checks with insufficient bank funds when making
purchases. DiscountMania had linked Charles’ personal information with the
other Charles Malone’s personal information. Charles experienced:_____________.
A. Buyer myopia
B. Database fraud
C. Information trafficking
D. Identity theft
Answer:
D. Identity theft
Explanation:
Identity theft is the use of a persons identity to make transactions and payment after acquiring the personal or financial information of that person. The person whose identity was used would suffer the consequences of the defaulters action. This information include a persons name, finger print, credit card number, pin number, password, date of birth and so on for the aim of accessing the person finances.
The issue Charles Malone experienced is known as Identity theft. This occurred when DiscountMania erroneously linked his personal information to that of another individual with the same name, leading to debt collection calls directed towards him wrongfully. D. Identity theft.
Explanation:In the case presented, Charles Malone experienced D. Identity theft. Identity theft refers to the deliberate use of someone else's identifying information, usually for financial gain, resulting in potential harm to the individual whose identity has been stolen. This can be achieved through various methods, one of which includes having one's personal information mixed up with another person's, as experienced by Charles.
In this situation, DiscountMania, unfortunately, linked his information to that of another person named Charles Malone who had been issuing checks without sufficient funds. The errors in the database led to Charles receiving calls from collection agencies for the debt of the other Charles Malone, acting as a stressful and potentially damaging case of identity theft.
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Libertarians believe that:a) monetary policy is more important than monetization policy. b) Keynesian economics is preferable to demand-side economics.c ) government action on the economy should be kept to a minimum.d) only public goods matter to the smooth functioning of an economy.
Answer:
c. government action on the economy should be kept to a minimum.
Explanation:
Libertarians believe that government action on the economy should be kept to a minimum.
Libertarians are strongly inclined to a process view of distributive justice than an end-state view.
Libertarianism involves the belief that government's only concern should be to assure a fair process of distribution without assuring a particular outcome.
Answer:
C) government action on the economy should be kept to a minimum.
Explanation:
Libertarians are called that way because they seek to maximize the individual freedom of people and decrease the roles carried out by the different levels of government. According to them, less government intervention = more freedom. Libertarians dislike authority and state power, and prefer freedom and autonomy. They favor laissez-faire capitalism and a smaller government.
Cassandra sees a 30-minute TV show on an entertainment channel which advertises various types of kitchen appliances manufactured by Evolve, a brand of home appliances. In the show, the host demonstrates the usage of different appliances and describes the features and benefits of each product. This is an example of:A. a sales promotion.B. personal selling.C. specialty advertising.D. buzz advertising.E. an infomercial.
Answer: E. an Infomercial
Explanation: Infomercials are long form of videos or television advertisements which act as a single stand-alone program to pitch goods or services with a call to buy. It is mostly different from a regular television commercials, it takes longer video time and there is no breaks in the program.
The 30 minutes television show Cassandra saw was on the entertainment channels which advertised the kitchen appliances, the TV show was "an infomercial ".
The given situation represents the example of an infomercial.
The following information should be considered:
An informercial should be long commercial that should be designed for fit into the 30 minutes or one-hour time slot. It should be generated by the advertisers & are to be designed so that it could be viewed in the regular television shows.Therefore we can conclude that the correct option is E.
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The Embargo Act:_______
a) led Napoleon to repeal his economic decrees—but too late.
b) especially hurt New England's port cities.
c) was a last resort after undeclared naval war had failed.
d) was widely evaded and thus had little impact on the U.S. economy
Answer:
B
Explanation:
Especially hurt New England's port cities
The Embargo act of 1807 was Enacted by the US on all foreign national with the intention of harming the United kingdom and France. The effect of this was to force these two nations to cease impressments and respect the US neutrality.
The act posed hardship on U.S. farmers and on New England and New York port cities. It had little effect on Europe.
Galena is a new agent for a financial services company. She decides to join the local chamber of commerce, the local association of businesswomen, and the local chapter of the United Way organization. Galena is attempting to use ________ to generate leads.
Answer:
Galena is attempting to use Networking to generate leads.
Explanation:
Networking is a term that describes the socioeconomic business activity in which business or finance-oriented people like Galena (in the question) form business relationships in order to seek potential partners for ventures, share information as well as create or act upon business opportunities.
By joining the local association of businesswomen and local chamber of commerce, Galena is networking with a view to generating finance leads and achieving other aims stated in the first paragraph.
Silicon Co. has forecasted the Canadian dollar for the most recent period to be $0.73. The realized value of the Canadian dollar in the most recent period was $0.80. Thus, the absolute forecast error as a percentage of the realized value was ____%.
Answer:
8.75%
Explanation:
The forecast error refers to the actual value of the currency vs the expected value of the currency. A forecast is just an estimate or educated guess, and as any estimate it can be wrong.
The absolute forecast error = [(actual – forecast) / actual] x 100 = [$0.80 - $0.73) / $0.80] x 100 = 8.75%
Final answer:
The absolute forecast error as a percentage of the realized value is 8.75%, calculated by the difference between the forecasted and realized value, divided by the realized value and multiplied by 100.
Explanation:
The absolute forecast error is calculated by taking the absolute value of the difference between the forecasted value and the realized value, and then dividing by the realized value to convert it into a percentage. In this case, Silicon Co. forecasted the Canadian dollar to be $0.73, while the realized value was actually $0.80. Therefore, the absolute forecast error is the absolute value of ($0.73 - $0.80) which equals $0.07. To find the error as a percentage of the realized value, we divide the error by the realized value and then multiply by 100, i.e., ($0.07 / $0.80) * 100 = 8.75%.
Thus, the absolute forecast error as a percentage of the realized value was 8.75%.
Jan's Dry Cleaning holds $10,000 on a typical day, although only $2,000 is essential for carrying out business. Making a midday deposit is estimated to reduce cash holdings to $8,000, but would cost an extra $80 per year in lost production. Jan’s can reduce cash holdings to $6,000 if it hires an armored car service to pick up cash more frequently for a fee of $120 per year. Employing a computerized cash management service for an annual fee of $180 would reduce cash holdings to $4,000. Jan’s plans on purchasing government bonds paying a 5% interest rate with any cash holding reductions. What is Jan’s optimal money holding?
Final answer:
Jan's optimal cash holding is to use the computerized cash management service, which reduces cash holdings to $4,000, allowing the rest to be invested in government bonds. This results in the highest net annual gain of $120 after considering the costs associated with reducing cash holdings.
Explanation:
To determine Jan's optimal cash holding, we need to calculate the cost of holding cash versus the potential interest earned from investing the reduced cash in government bonds at a 5% interest rate. The decision involves comparing the costs associated with different levels of cash holding to the interest income from investing the excess cash. Let's break it down for each scenario:
No change in cash holding: $10,000 held, $0 saved, $0 extra cost, $0 earned interest.
Midday deposit reduces cash to $8,000: Saves $2,000, $80 extra cost per year, interest earned from investment $2,000 * 5% = $100.
Armored car service reduces cash to $6,000: Saves $4,000, $120 extra cost per year, interest earned from investment $4,000 * 5% = $200.
Computerized cash management reduces cash to $4,000: Saves $6,000, $180 extra cost per year, interest earned from investment $6,000 * 5% = $300.
To find the optimal cash holding, subtract the extra costs from the interest earned for each scenario and compare:
Midday deposit: $100 interest - $80 cost = $20 net gain.
Armored car service: $200 interest - $120 cost = $80 net gain.
Computerized cash management: $300 interest - $180 cost = $120 net gain.
As we can see, the computerized cash management service provides the highest net gain of $120. Therefore, Jan's optimal money holding is to keep $4,000 on hand and invest the rest in government bonds.
Final answer:
The optimal money holding strategy for Jan's Dry Cleaning is to employ a computerized cash management service, which reduces cash holdings to $4,000 with a net benefit of $120 after the annual fee, by leveraging the 5% interest on reduced cash holdings.
Explanation:
Jan's Dry Cleaning is evaluating optimal money holding strategies to balance day-to-day cash requirements with potential interest earnings. Jan's currently holds an average of $10,000 each day, while $2,000 is deemed essential for business operations. The options under consideration involve reducing cash holdings and investing the excess cash in government bonds that yield 5% interest annually. There are three alternatives to reduce cash holdings:
Making a midday deposit to reduce cash holdings to $8,000 at an annual cost of $80.Hiring an armored car service to reduce cash holdings to $6,000 at an annual cost of $120.Using a computerized cash management service to reduce cash holdings to $4,000 at an annual cost of $180.To determine the optimal strategy, we calculate the interest earned on the reduced cash holdings for each option and deduct the respective costs. This will provide the net benefit for each option, allowing us to select the strategy that offers the maximum net benefit.
Option 1 Calculation:
Interest earned on $2,000 reduction = $2,000 * 0.05 = $100
Net benefit = $100 - $80 = $20
Option 2 Calculation:
Interest earned on $4,000 reduction = $4,000 * 0.05 = $200
Net benefit = $200 - $120 = $80
Option 3 Calculation:
Interest earned on $6,000 reduction = $6,000 * 0.05 = $300
Net benefit = $300 - $180 = $120
By analyzing the net benefits, the strategy with the highest net benefit is employing a computerized cash management service, which gives a net benefit of $120. Therefore, Jan's optimal money holding strategy is to use the computerized cash management service and reduce cash holdings to $4,000.
Tempe Inc. produces two products—Basic and Fancy–by a joint process. The company incurred joint costs of $200,000. The company has gathered the following information: Basic Fancy Units produced 30,000 20,000 Sales price $25 $35 Units sold 20,000 18,000 Beginning Inventory 0 0 Determine the value of ending inventory for Basic and Fancy using the sales value at splitoff method.
Answer:
Basic ending inventory = $27,777.78
Fancy ending inventory = $11,666.67
Explanation:
Basic Fancy
Units produced 30,000 20,000
Sales price $25 $35
Units sold 20,000 18,000
Beginning Inventory 0 0
joint costs incurred = $200,000
The sales value at splitoff method allocates joint costs based on the products' prices.
Basic is allocated $25 / ($25 + $60) = 41.67% x $200,000 = $83,333.33 of joint costs. Production cost per unit = $83,333.33 / 30,000 = $2.78.
Ending inventory = (30,000 - 20,000) x $2.7778 = $27,777.78
Fancy is allocated $35 / ($25 + $60) = 58.33% x $200,000 = $116,666.67 of joint costs. Production cost per unit = $116,666.67 / 20,000 = $5.83333.
Ending inventory = (20,000 - 18,000) x $5.83333 = $11,666.67
Do women spend more time talking on the phone than men? a student collects data from students at her university and reports a 90% confidence interval for mu(men)minusmu(women) to be (minus150,30), where mu(men) is the mean number of minutes per month for men. based on this confidence interval, can it be concluded that mu(women) is higher than mu(men)?
Answer:
No
Explanation:
Remember, that as used in statistics the Confidence intervals only ascertain the extent to which a sample is uncertainty or certainty, that is, the student report of a 90% confidence interval is just a probability the university population of men and women surveyed would fall under this range of value (minus 150,30).
Therefore, it cannot be concluded that mu(women) is higher than mu(men.
On July 1, Mesa Verde, Inc. purchased a 6-month insurance policy for $12,600. Prepaid Insurance was debited for the entire amount. The adjusting entries to recognize the expired cost were made each month. On December 31, when the annual financial statements are prepared, the appropriate adjusting journal entry would be ______.a) Prepaid Insurance $10,500; Insurance Expense $10,500 b) Insurance Expense$10,500; Prepaid Insurance $10,500 c) Insurance Expense $2,100; Prepaid Insurance $2,100 d) Prepaid Insurance $2,100; Insurance Expense $2,100
Answer:
Option C.
Dr Insurance Expense $2,100
Cr Prepaid Insurance $2,100
Explanation:
The initial payment of $12,600 is for 6 months which means monthly charge of insurance is $2,100 ($12,600 / 6 months). The initial prepaid expense was recorded as under:
Dr Prepaid Insurance $2,100
Cr Cash Account $2,100
At the end of each month, the insurance expense is recognized and the entry is as under:
Dr Insurance Expense $2,100
Cr Prepaid Insurance $2,100
Chestelle Corporation, a sports equipment manufacturing company, borrows a considerable sum of money as loan from GRJ Bank, a private bank, at a time of financial crisis. The corporation has four years to repay the principal amount along with the interest to the bank. In this scenario, the money that Chestelle Corporation owes the bank represents its _____.
Answer:
Long term liability
Explanation:
Long term liability is defined as the amount of money a business owes that is due above a year. It is liabilities that do not affect the current liquidity of the business and its ability to do business.
In this scenario Chestelle Corporation has borrowed a large amount of money that is due in 4 years. It is due in over a year so it is a long term liability.
Long term liabilities are usually used to purchase capital assets or to make long term investment
Answer:
A. Long term liabilities.
Explanation:
Liabilities are defined as money owed by a business usually incured for the purchase of an asset. They represent a company's or an organization's legal debt or obligations. It can either be long term, short term or sometimes intermediate term liabilities. In this case however, it is a long term liability.
Long term liabilities are liabilities that are due in payment more than one year in the future. They are obligations and debt payable by an organization after a period of one year. In this case, the loan Chestelle corporation from the bank is payable in and within four years.
Assume the current U.S. dollar-British spot rate is 0.6993£/$. If the current nominal one-year interest rate in the U.S. is 5% and the comparable rate in Britain is 6%, what is the approximate forward exchange rate for 360 days? Select one: a. £0.6993/$ b. £0.7060/$ c. £1.42/$ d. £1.43/$
Answer:
The answer is B. £0.7060/$
Explanation:
The forward exchange rate is the exchange rate at which a party is willing to exchange one currency for another at a future date when it enters into a forward contract with the other party
The formula for forward exchange rate = Spot rate x [(1 + foreign interest rate) / (1 + domestic interest rate) ]
Spot rate is 0.6993£/$
Foreign interest rate is 6%
Domestic interest rate is 5%
0.6993£/$ x (1 + 0.06/1 + 0.05)
0.6993£/$ x 1.06/1.05
= 0.7060
£0.7060/$
Using the spot rate and the interest rates in the two countries, the forward exchange rate is calculated to be approximately £0.6993/$. Therefore, the correct answer is a. £0.6993/$.
Explanation:The forward exchange rate can be calculated using the spot rate and the interest rates in the two countries. The formula for this calculation is: Forward Rate = Spot Rate * (1 + Interest Rate in Domestic Country) / (1 + Interest Rate in Foreign Country). Substituting the given values into this formula gives us Forward Rate = 0.6993£/$ * (1 + 0.05) / (1 + 0.06). Calculating this gives us an approximate forward exchange rate of 0.6993£/$. Therefore, the correct answer is a. £0.6993/$.
To calculate the forward exchange rate, we can use the formula:
Forward Rate = Spot Rate x (1 + Interest Rate of the Foreign Currency) / (1 + Interest Rate of the Domestic Currency)Plugging in the values, we get: Forward Rate = 0.6993 x (1 + 0.06) / (1 + 0.05) Forward Rate ≈ 0.7060£/$
So the approximate forward exchange rate for 360 days is £0.7060/$ (option b).
Learn more about Forward Exchange Rate here:https://brainly.com/question/32779668
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If the price is below average total cost, then in the short run a perfectly competitive firm should: A. raise price. B. continue to produce to minimize losses. C. shut down. D. There is not enough information given to answer this question.
Answer:
B. continue to produce to minimize losses.
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. Buyers and sellers are price takers Because they cannot set prices of products.
If in the short run, price is below average variable cost, the firm should shut down.
If price is below average total cost in the short run, the firm should continue production.
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