Answer: False
Explanation:
The Risk adjusted Return on capital is used by banks to know the level of risk the bank may fall into based on the loan they give out to the borrowers of the loan. The bank is expected to engage in responsible risk management. The formula for calculating the risk adjusted return on capital is
Cost - Expected losses + income from capital / Economic or total capital
In this question we are given the interest charged to be 2.5%, we are given the expected losses to 1% based on industry average. But we are not given the actual figure of the loan lent out, in which to calculate the 5% of the loan which is still outstanding, and we are not given the income from the capital. We are not given the cost of the fund. Therefore, we are not given sufficient information to find Risk -Adjusted Return on capital.
A single stock futures contract on a nondividend-paying stock with current price $180 has a maturity of one year.
a. If the T-bill rate is 4.0%, what should the futures price be? (Round your answer to 2 decimal places.) Futures price $
b. What should the futures price be if the T-bill rate is still 4.0% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price $
c. What if the interest rate is 6.5% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price $
Answer:
a. $187.20.
b. $202.48.
c. $217.43.
Explanation:
Please find the below for detailed explanations and calculations:
We have the formula for determining the future price of the non-dividend-paying stock as below:
Future price = Spot price x (1+ annual risk free rate )n; which n = number of year(s) to maturity.
Thus, apply the general formula above, we have the below calculations:
a. Future price = 180 x (1+4%)^1 = $187.20;
b. Future price = 180 x ( 1+4%)^3 = $202.48;
c. Future price = 180 x (1+6.5%)^3 = $217.43.
Suppose that the MPC is 0.7, there is no investment accelerator, and there are no crowding-out effects. If government expenditures increase by $30 billion, then aggregate demand a. shifts rightward by $100 billion. b. shifts rightward by $51 billion. c. shifts rightward by $170 billion. d. shifts rightward by $72.8 billion.
Answer:
a. shifts rightward by $100 billion
Explanation:
Step 1. Given information.
MPC = 0.7
Step 2. Formulas needed to solve the exercise.
Impact in the aggregate demand = 1 / (1-mpc) * total increase expenditures.
Step 3. Calculation.
Impact in the aggregate demand = 1 / (1-0.7) * 30 million = 100 billion
Step 4. Solution.
What actually occurs is that if government increases its expenditures, this means that the output levels in the economy will increase.
Thus, aggregate demand curve will shift right the overall increase by 100 billions.
You are managing a project to build an urgent care clinic. Your company is expanding and has constructed 25 clinics so far. Which estimating technique makes the most sense to use in this situation:
Select an answer:
A. Parametric modeling
B. Delphi technique
C. Top-down estimating
D. Asking an expert
Answer:
B. Delphi technique
Explanation:
Delphi technique is considered the best way as it helps in estimating the cost and forecast also, For constructing 25 clinics estimate is the biggest function to build the clinics.
Answer:
B. Delphi technique is the correct answer.
Explanation:
The Delphi Technique is a method used to estimate the likelihood and outcome of future events. A group of experts exchange views, and each independently gives estimates and assumptions to a facilitator who reviews the data and issues a summary report.
Which of the following statements is correct?
A. As a public transfer payment, Social Security benefit is available only to the poor.
B. Social Security benefits are received by people who had contributed to the fund during their active work years.
C. The Social Security program funnels transfers from retired individuals to the youngest children of low-income families.
D. Social Security is an entitlement which is available to everyone, including those who have not contributed to the fund during their active work years.
Answer:
B
Explanation:
Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods.a. Calculate each country's productivity and real GDP per person.b. Which country is better off?
Answer:
a) Productivity of country A = 20 goods per hour
Productivity of country B = 25 goods per hour
Real GDP per person for country A = 128 goods per person
Real GDP per person for country B = 135 goods per person
b) Country B is better off
Explanation:
Data provided in the question:
For country A
Population = 1,000
Number of workers = 800
Number of working hour per day = 8
Final goods = 128,000
For country B
Population = 2,000
Number of workers = 1,800
Number of working hour per day = 6
Final goods = 270,000
Now,
(a) The Productivity is given as
= [ Total Output ÷ Total Productive Hours ]
Thus,
Productivity of country A
= [ 128,000] ÷ [ 800 × 8 ]
= 20 goods per hour
Productivity of country B
= [ 270,000 ] ÷ [ 1800 × 6 ]
= 25 goods per hour
and,
Real GDP per person = [ Final goods ] ÷ [ Population ]
Real GDP per person for country A
= 128000 ÷ 1000
= 128 goods per person
Real GDP per person for country B
= [ 270000 ] ÷ 2000
= 135 goods per person
(b) Since,
The Real GDP per person for country B is greater than the Real GDP per person for country A
Therefore,
Country B is better off
The productivity and real GDP per person for Country A and Country B were calculated and compared. It was found that County B has a higher productivity and real GDP per person making it the better off country based on these metrics.
Explanation:Productivity is calculated as the total output divided by the total input. For Country A, we calculate productivity as 128,000 final goods divided by (800 workers * 8 hours), which results in a productivity of 20 goods produced per man-hour. For Country B, we use the same method, and calculate productivity as 270,000 goods divided by (1,800 workers * 6 hours) which gives us a value of 25 goods produced per man-hour. Therefore, Country B is more productive on a per hour basis.
Real GDP per person is calculated as the total output divided by the population. For Country A, real GDP per person is calculated by dividing 128,000 goods by 1,000 residents, which equals 128 goods per person. For Country B, we calculate real GDP per person by dividing 270,000 goods by 2,000 residents, which equals 135 goods per person. Again, Country B is better off.
So, based on these calculations, Country B is more productive and has a higher real GDP per person. However, it's important to note that this calculation doesn't take other factors such as income inequality, environmental factors, etc into account.
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Purple, Inc., a domestic corporation, owns 100% of Blue, Ltd., a foreign corporation and Yellow, Inc., a domestic corporation. Purple also owns 40% of Green, a domestic corporation. Purple receives no distributions from any of these corporations. Which of these entities' net income is included in Purple's GAAP income statement for current-year financial reporting purposes?
a.Purple, Blue, and Yellow.
b.Purple, Yellow, and Green.
c.Purple, Blue, Yellow, and Green.
d.Purple, Blue, and Green.
Answer: a.Purple, Blue, and Yellow.
Explanation: he does not have a controlling interest in green yet because it's percentage of control is still below 50% so it cannot report green's income.
Net income under variable costing is contribution margin less Select one: a. cost of goods sold. b. fixed manufacturing overhead and fixed selling and administrative expenses. c. fixed manufacturing overhead and variable manufacturing overhead. d. variable selling and administrative expenses and fixed selling and administrative expenses.
Answer:b fixed manufacturing overhead and fixed selling and administrative expenses.
Explanation:
Variable costing deducts variable costs from revenue to arrive at contribution margins from which all fixed cost are deducted to arrive at the net income.
The cost of goods sold, variable costs and other costs are not deducted from the contribution margin except the fixed cost in variable costing method.
Using cost analysis to analyze the money being spent by a firm is analogous to using ____________ to analyze the money coming into the firm.A. sales analysis
B. traditional accounting reports
C. performance analysis
D. the iceberg principle
E. TQM methods
Answer:
A. sales analysis
Explanation:
A sales analysis is a common breakdown of sales, where a company can see how many products or services has it sold over a given period of time.
Like cost analysis is useful for determining which costs can be cut down and which ones are justified, a sales analysis determines which product segment brings in the most revenue, creating an incentive for improvement.
Burns Corporation's net income last year was $98,300. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents $ 20,500 Accounts receivable $ 13,400 Inventory $ (16,500 ) Prepaid expenses $ 4,400 Long-term investments $ 10,300 Property, plant, and equipment $ 74,900 Accumulated depreciation $ 32,200 Liability and Equity Accounts: Accounts payable $ (18,700 ) Accrued liabilities $ 17,100 Income taxes payable $ 4,300 Bonds payable $ (64,800 ) Common stock $ 42,800 Retained earnings $ 94,100 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,200. Required: a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Prepare the investing activities section of the company's statement of cash flows for the year. c. Prepare the financing activities section of the company's statement of cash flows for the year.
Burns Corporation's net cash provided by operating activities is $132,900, net cash used in investing activities is $85,200, and net cash used in financing activities is $26,200. These are derived using the indirect method based on the changes in the balance sheet accounts provided. The overall change in cash flows is calculated by adjusting for these activities.
Here is how you can prepare Burns Corporation's Statement of Cash Flows for the year:
Operating Activities (Indirect Method):
Start with the net income for the year: $98,300
Add: Depreciation (balance sheet indicates this increased): $32,200
Adjust for changes in working capital:
Increase in Accounts Receivable: ($13,400)
Decrease in Inventory: $16,500
Increase in Prepaid Expenses: ($4,400)
Decrease in Accounts Payable: ($18,700)
Increase in Accrued Liabilities: $17,100
Increase in Income Taxes Payable: $4,300
Net cash provided by operating activities: $132,900
Investing Activities:
Increase in Long-term Investments: ($10,300)
Purchase of Property, Plant, and Equipment: ($74,900)
Net cash used in investing activities: ($85,200)
Financing Activities:
Decrease in Bonds Payable: ($64,800)
Common Stock issued: $42,800
Dividends Paid: ($4,200)
Net cash used in financing activities: ($26,200)
On January 1, 2017, Larkspur Company purchased $440,000, 10% bonds of Aguirre Co. for $407,614. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2022. Larkspur Company uses the effective-interest method to amortize discount or premium. On January 1, 2019, Larkspur Company sold the bonds for $409,094 after receiving interest to meet its liquidity needs.
Prepare the amateur eyes is your schedule for the bonds.
Answer:
Period Carrying coupon Interest Amortization End Carrying
July 2017 407,614 22000 24456.84 2456.84 410,071
Dic 2017 410,071 22000 24604.25 2604.25 412,675
July 2018 412,675 22000 24760.51 2760.51 415,436
Dec 2018 415,436 22000 24926.14 2926.14 418,362
Loss on sale 9,268
Explanation:
The interest expense will be determinate as the market rate times carrying value
Then, it will amortize between the difference in the actual cash payment and the interest expense calculate with the market rate
The carrying value will increase over time as it needs to match the face value at maturity.
Then after Dec 31 2019 we sale the bond and we determinate the loss on sale:
418,362 - 409,094 = 9,268
Assume the four major grocery stores in a large metropolitan area decide to meet secretly to fix prices for meat. It would be easiest to maintain this arrangement when:
Answer:
The correct answer is Option (3): The number of additional competitors is very small.
Explanation:
Competitors can come together to engage in price fixing, which is either a verbal or written agreement between the firms to either raise, lower or maintain prices of products at a given time. Some government laws encourage firms to set their own prices by themselves without any form of agreement with another firm in the same or similar line of business. Sometimes, these competitors can fix prices of goods in secret and these government bodies do term the act illegal.
These price fixing activities are usually being carried out effectively “in secrete” when other competitors are very small.
The newshole ______. Group of answer choices
a. is news content (not space used by ads) that takes up about 35 to 50 percent of the space in a typical metropolitan daily newspaper
b. refers to those parts of the public agenda that are ignored by news media
c. refers to a story that is somewhat incomplete but printed anyway
d. is a form of yellow journalism
e. refers to the space for advertising left over after the news content goes into the paper
Answer: Option A
Explanation: A news hole refers to a concept of journalism that depicts to the amount of room in a newspaper that is accessible every day. Generally, the column space designated for news hole are the leftover spaces after paid commercials are packed in.
As per the recent reports by some agencies, famous newspapers like economic timer or new York times gives 35 percent to 50 percent space in their publish for the news content.
Thus, from the above we can conclude that the correct option is A.
Final answer:
The newshole is the portion of a newspaper available for news content after advertising space is allocated, comprising about 35 to 50 percent of the newspaper's space.
Explanation:
The term newshole refers to the space in a newspaper or other publication that is available for news content after all the advertising content has been placed. The correct answer to the question is "The newshole is news content (not space used by ads) that takes up about 35 to 50 percent of the space in a typical metropolitan daily newspaper." Newspapers dedicate significant portions of their layout to advertisements, which finance their operations, and the remaining space, or newshole, is what's left for journalists to fill with news coverage. In the context of political coverage, factors such as pack journalism and a focus on campaign strategy over substantive reporting can influence the quality and depth of news content in this limited space.
Bristlebird Corporation (E&P of $700,000) has 3,000 shares of common stock outstanding. Juan owns 1,500 shares and his wife, Roberta, owns 1,500 shares. Juan and Roberta each have a basis of $90,000 in their Bristlebird stock. In the current year, Bristlebird Corp. redeems 1,000 shares from Juan for $250,000. With respect to the distribution in redemption of the Bristlebird stock:
a. Juan has dividend income of $250,000
b. Juan has dividend income of $190,000
c. Juan has a capital gain of $250,000
d. Juan has a capital gain of $190,000
e. None of the above
Answer:
A: Juan has dividend income of $250,000
Explanation:
Related party = dividend (extent of E&P)
Juan has a capital gain of $190,000 because the redemption of stock is considered a sale, with the capital gain calculated as the difference between the selling price and his basis in the shares.
The correct option is 'd'.
To determine the nature of the transaction for Juan after Bristlebird Corp. redeems 1,000 of his shares for $250,000, we must consider the tax implications. Generally, a redemption of stock is treated as a sale or exchange, resulting in capital gain or loss, unless the redemption is essentially equivalent to a dividend, in which case it is treated as dividend income.
If the redemption qualifies as a sale, Juan's capital gain or loss is calculated as the difference between the selling price ($250,000) and the basis of the shares redeemed. Juan's basis in 1,000 shares would be (1,000/1,500) * $90,000 = $60,000. Thus, if the transaction qualifies as a sale, Juan would realize a capital gain of $250,000 - $60,000 = $190,000.
In this case, it is not stated that the redemption is treated as a dividend. Therefore, we assume the default treatment as a sale. So, based on the provided information, the correct answer would be 'd. Juan has a capital gain of $190,000'.
Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a minus sign. Round percent change to one decimal place.) Current Year Prior Year Short-term investments $ 380,834 $ 240,061 Accounts receivable 103,020 106,337 Notes payable 0 94,802
Answer:
Explanation:
The computation is shown below:
(A) (B) (A - B)
Current Year Prior Year Dollar change
Short-term investments $380,834 $240,061 $140,773
Accounts receivable $103,020 $106,337 -$3,317
Notes payable $0 $94,802 -$94,802
Now the percentage change would be
= (A - B) ÷ (B) × 100
For Short-term investments = 58.64%
For Accounts receivable = - 3.12%
For Notes payable = - 100%
Final answer:
To calculate the annual changes, subtract the prior year value from the current year value. Then divide that number by the prior year value and multiply by 100 to get the percent change. Results show increases in Short-term investments and decreases in Accounts receivable and Notes payable.
Explanation:
To compute the annual dollar changes and percent changes for each account, we subtract the prior year value from the current year value to get the dollar change. Then, we divide the dollar change by the prior year value and multiply by 100 to get the percent change.
For Short-term investments, the dollar change is $380,834 - $240,061 = $140,773. The percent change is ($140,773 / $240,061) * 100, which gives approximately 58.6%.For Accounts receivable, the dollar change is $103,020 - $106,337 = -$3,317 (a decrease). The percent change is (-$3,317 / $106,337) * 100, which gives approximately -3.1%.For Notes payable, the dollar change is $0 - $94,802 = -$94,802 (a decrease). Since there was no balance in the current year, the percent change is not applicable here.Will’s Whitewater Rafting sold 3 acres of land used in the business. The sales price was $6,000 and the adjusted basis of the land was $4,200. Will receives a down payment of $4,000 at the time of sale and the remaining $2,000 early next year. The realized gain on the sale is $___. Will’s recognized gain for the current year is $_____ and the gain recognized next year will be $_____.
a. 1,800;
b. 1,200 ($1,800/$6,000 = 30%; $4,000 x .30 = $1,200);
c. 600 (30% x $2,000 = $600)
Answer:a. 1,800;
b. 1,200 ($1,800/$6,000 = 30%; $4,000 x .30 = $1,200);
c. 600 (30% x $2,000 = $600)
Explanation:
In tax accounting, adjusted basis refers to the original cost, or the net cost of an asset, after adjusting various tax-related items normally reduced by depreciation deductions.
Given:
Selling Price(S.P) = $6,000
Adjusted Basis (A.B) = $4200
The gain realized from the sale of the land would be:
= S.P - A.B = $(6,000-4200)= $1,800
Now, we calculate the percentage profit on gain realized to enable ease of gain calculation for fragmented payments.
The percentage gain (P.G) is:
(S.P-A.B)/S.P * 100 = (6,000-1,800)/6000 * 100
P.G = (1,800/6,000) * 100 = 30%
Therefore we say that:
Recognized Gain on current year = Amount paid * P.G = $(4,000*0.3) = $1,200
And
Recognized Gain next year = Amount paid * P.G = $(2,000 * 0.3) = $600
Note: P.G is percentage gain.
The diamond framework is NOT LIKELY to answer which of the following questions about competing on an international basis? A. Where will the foreign entrants come from?B. Which countries have the weakest foreign rivals?C. What are the attributes of a country's business environment?D. What location of value chain activities is most beneficial?E. What are the disadvantages of allowing foreign competition?E. What are the disadvantages of allowing foreign competition?
Answer:
E
Explanation:
The diamond framework is one of the five major strategic options for entering foreign markets and it is not likely to answer questions on What are the disadvantages of allowing foreign competition?
The diamond framework does not directly address the disadvantages of allowing foreign competition, as it is designed to analyze competitive advantages of nations. It focuses on where foreign entrants may originate, identification of weak foreign rivals, attributes of a country's business environment, and beneficial locations for value chain activities.
Explanation:The diamond framework is a conceptual model that helps to analyze the competitive advantages of nations, focusing primarily on four aspects: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. When considering the diamond framework, it is not likely to answer the question about the disadvantages of allowing foreign competition (E). This is because the framework is designed to assess and identify the competitive advantages of a country in the global marketplace, rather than focusing on the negative aspects of foreign competition.
Questions that the diamond framework can typically address include identifying where foreign entrants may come from, which countries have the weakest foreign rivals, the attributes of a country's business environment, and where along the value chain activities should be located to be most beneficial. Additionally, it might address overall patterns of international competition and trade, such as the attraction of capital and labor, and the economic impact of free market economies.
Outsourcing:
A. transfers traditional internal activities to outside vendors.
B. utilizes the efficiency that comes with specialization.
C. allows the outsourcing firm to focus on its key success factors.
D. All of these are true of outsourcing.
E. None of these is true of outsourcing.
Answer: Option D
Explanation: Outsourcing is an arrangement where one organization employs another organization to be responsible for an in-house planned or ongoing operation and sometimes requires the transition of staff and properties from one organization to another.
There are number of reasons why company outsource their activities some of which could be lesser cost, focus on core activities and use of specialization etc.
Outsourcing is generally performed by organisations that are operating their business at a very high scale and the management is unable to monitor and perform all jobs efficiently.
During 2020, Harvey Industries reported cash provided by operations of $670,000, cash used in investing of $1,039,000, and cash used in financing of $145,000. In addition, cash spent for fixed assets during the period was $404,000. No dividends were paid. Based on this information, what was Harvey's free cash flow?
Answer:
$266,000
Explanation:
The formula to compute the free cash flow is shown below:
Free Cash flow = Operating cash flow - capital expenditure
= $670,000 - $404,000
= $266,000
The operating cash flow is come from cash provided by operations and capital expenditure is the cash spent for fixed assets
All other information which is given is not relevant. Hence, ignored it
Which of the following statements is right about facility location analysis?
A. Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.
B. Facility location analysis considers the competitive imperative of lowest total cost.
C. Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.
D. Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels. All of the above.
Answer:
The correct answer is letter "A": Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.
Explanation:
Facility location is part of the research and computational geometry in charge of determining the localization of a company's branches to be closest as possible to the firm's target customers, workers, and suppliers by minimizing the costs. Other factors such as free trading zones or environmental policies are also taken into consideration.
Annual demand for a new assembled product is expected to be 80,000 units. Work content time for the product is 22.7 min. The assembly line operates 50 wk/yr, 40 hr/wk. Expected line efficiency is 95%. With one worker per station, determine (a) average hourly production rate, (b) cycle time, and (c) ideal minimum number of workers.
Answer:
average hourly production = 40 units
cycle time = 1.425 min
ideal minimum number of work = 16 worker
Explanation:
given data
annual demand for product = 80,000 units
Work content time = 22.7 min
work for week = 50 wk/yr
no of hr/week = 40 hr/wk
efficiency = 95% = 0.95
to find out
average hourly production rate and cycle time and ideal minimum number of worker
solution
we get here average hourly production rate that is express as
average hourly production = [tex]\frac{Da}{50H}[/tex] ........1
average hourly production = [tex]\frac{80000}{50*40}[/tex]
average hourly production = 40 units
and
cycle time is
cycle time = [tex]\frac{60*efficiency}{average\ hourly\ production}[/tex]
cycle time = [tex]\frac{60*0.95}{40}[/tex]
cycle time = 1.425 min
and
ideal minimum number of work is
W = minimum integer ≥ [tex]\frac{time}{cycle\ time}[/tex]
W = minimum integer ≥ [tex]\frac{22.7}{1.425}[/tex]
ideal minimum number of work = 15.93 = 16 workers
Jobs that are grouped into the same pay grade should
a. be paid at different wage rates because the worth of these jobs to the organization may differ.
b. be paid within a range that may overlap with adjoining grades, so that an employee with experience can be paid as much as or more than a newer employee in a higher grade.
c. all receive the same wage rate in order to achieve equality.
d. be paid within a range that does not overlap with bordering job grades so that distinctions between grades are maintained.
Answer:
The correct answer is letter "B": be paid within a range that may overlap with adjoining grades, so that an employee with experience can be paid as much as or more than a newer employee in a higher grade.
Explanation:
It is important within the work frame that job positions around almost the same level of wages consider the level of experience or the employees. Workers whose experience is greater should receive more compensations not only in gratitude for their years of collaboration but also as a way to motivate them to keep their work up. The wage should be equal or as close as the wage that the next grade employees perceive, new or not.
Pay grades are often designed to overlap with adjoining job grade ranges, enabling experienced employees to earn as much or more than newer employees in a higher grade. This approach encourages professional growth and job loyalty.
Explanation:Jobs that are grouped into the same pay grade should generally be paid within a range that may overlap with adjoining grades (option b). This allows for an employee with experience to earn as much or even more than a newer employee with a higher grade. This system helps to reflect the value of work experience and skill development and promotes employee loyalty and longevity.
Options a, c, and d can apply in certain situations, but they are not as commonly used or as flexible. Option A tends to undervalue certain roles, Option C might discourage professionalism and personal development, and Option D could potentially inhibit mobility within the company.
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Key Company is considering the addition of a new product to its current lines. The expected cost and revenue data for the new product are as follows :Annual Sales : 2500 unitsSelling Price Per Unit : $304Variable Cost Per Unit :Production : $125Selling : $49Avoidable Fixed Cost Per Year :Production : $50,000Selling : $75,000Allocating common corporate cost per year : $55,000If the new product is added, the combined contribution margin of the other , existing product lines is expected to drop $65,000 per year, the common corporate costs would be unaffected by decision of whether to add the product. If new product is added next year, the increase in net operating income from this decision would be :A) 325,000 B) 200,000 C) 145,000 D) 135,000 E) None
Answer:
D) 135,000
Explanation:
The increase in net operating income would be
= Contribution margin per unit × number of units sold - production fixed cost - selling fixed cost - expected drop in contribution margin
= $130 × 2,500 units - $50,000 - $75,000 - $65,000
= $325,000 - $50,000 - $75,000 - $65,000
= $135,000
The contribution margin per unit would be
= Contribution margin per unit = Selling price per unit - Variable expense per unit
= $304 - $125 - $49
= $130
A company has 525 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $61 per share. It also has 21,000 shares of common stock outstanding, and the total value of its stockholders' equity is $716,625. The company's book value per common share equals: $33.29.
$31.80.
$32.88.
$34.13.
$32.60.
Answer:
$32.60
Explanation:
The formula and the computation is shown below:
Book value per share = (Total equity - preferred stock) ÷ (outstanding number of shares)
where,
Total equity is $716,625
Preferred stock would be
= 525 shares × $61
= $32,025
And, the outstanding number of shares is 21,000 shares
So, the book value per share would be
= ($716,625 - $32,025) ÷ (21,000 shares)
= ($684,600) ÷ (21,000 shares)
= $32.60
Piercing the corporate veil means revealing to shareholders the internal rules of corporate management.
a. True
b. False
Following her 18th birthday, Madison began investing $24 at the end of each week in an account earning 7% per year compounded weekly. She plans to continue making weekly investments until she turns 68. If she had waited until she turned 47, how much would she have to invest weekly in order to have the same retirement nest egg at age 68? Round to the nearest cent. (Hint: Find the size of the retirement nest egg, then use that to solve for CF under the shorter investment scenario)
Answer:
The answer is $26.80.
Explanation:
*Some inputs for the calculation as below:
One year period has 52 weeks
=> At the time she turns 68, she will have: (68-18) x 52 = 2,600 equal weekly cash flows; At the time she turns 47, she will have: (47-18) x 52 = 1,508 equal weekly cash flows.
* Present value of the investment plan lasting until she turns 68:
[ 24 / (7%:52) ] x [ 1 - (1+ (7%/52)^(-2,600) ] = $17,289.
* To have the same retirement nest egg at age 68, the present value of the investment plan lasting until she turns 47 should be equal to $17,289. Denote x is the weekly investment under the shorter investment scenario, we have:
[x / (7%:52) ] x [ 1 - (1+ (7%/52)^(-1,508) ] = $17,289 <=> x = $26.80.
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.50 per hour Raw material: 20,000 pounds per day @ $1 per pound Energy: $5,000 per day Capital costs: $10,000 per day a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing? b) What is the multifactor productivity for these tires at Lakefront Manufacturing? c) What is the percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs?
Answer:
A) 2.5 bicycle tires per labor hour B) 0.025 dollars per bicycle tires C) It would mean an increase of 11.1% in the multifactor productivity.
Explanation: To calculate the productivity of labor per hour simply divide the total number of tires produced in 1 day with the total labor hour used (1000/400=2,5). To calculate the multifactor productivity, you have to sum the total cost of all resources labor, capital, raw material and energy, and divide the total output per the total cost of inputs (1000/40000=0.025). Finally, to calculate the impact of improvements in energy use, from 5,000$ per day to 1,000$, adjust the total cost of inputs by 4,000 (40,000-4,000=3,6000), divide production with the new cost (1,000/36,000=0.02777) and calculate the percentual change (0.0277-0.025/0.025=0.111)
Commerce Corporation has a high probability of operating at 46,000 activity hours during the upcoming period, and lower probabilities of operating at 36,000 hours and 56,000 hours. The company's flexible budget revealed the following: 36,000 Hours 46,000 Hours 56,000 Hours Variable costs $ 162,000 $ 207,000 $ 252,000 Fixed costs 880,000 880,000 880,000 Commerce’s flexible-budget formula, where Y is defined as total cost and AH represents activity hours, is: (Round intermediate calculations to 2 decimal places.)
Answer:
Y = $4.50 AH + $880,000
Explanation:
Hours 36,000 46,000 56,000
Var. Cost $162,000 $207,000 $252,000
Var. Cost per hour (*) $4.50 $4.50 $4.50
Fixed cost $880,000 $880,000 $880,000
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(*) Var. Cost per hour = Var. Cost / Hours
Y = $4.50 AH + $880,000
Hope this helps!
Mad Hatter Enterprises purchased new equipment for $373,000, terms f.o.b. shipping point. Other costs connected with the purchase were as follows: State sales tax $ 30,000 Freight costs 6,400 Insurance while in transit 880 Insurance after equipment placed in service 1,280 Installation costs 2,400 Insurance for the first year of operations 2,800 Testing 780
Answer: $332,540
Explanation: find attached my solution in the document below.
NB : note that the Insurance after equipment placed in service and Insurance for the first year of operations was not added because these are to be termed expenses to be deducted in the P & L account.
Use your knowledge of relative scarcity to rank the following items from least scarce (top) to most scarce (bottom):
a. Salt water,
b. Diamonds,
c. Drinking water
The scarcity order of the items least scarce (top) to most scarce (bottom) is:
Drinking waterSalt waterDiamondBasically, scarcity means the state of being scarce or short in supply.
Hence, the scarcity order of the items least scarce (top) to most scarce (bottom) is drinking water, salt water, diamond.
Therefore, the Option is C, A, B in order
Read more about scarcity
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Final answer:
From least to most scarce, the items rank as follows: salt water, drinking water, and diamonds. Salt water is most abundant, followed by unevenly distributed drinking water and rare, luxurious diamonds.
Explanation:
Relative scarcity refers to how rare or common an item is compared to the demand for it. To answer the question on ranking the given items from least scarce to most scarce, we consider the global availability of salt water, diamonds, and drinking water. Here's the list, starting with the least scarce:
Salt Water: Abundant in oceans, but not drinkable without desalination.Drinking Water: Although there's enough fresh water for everyone, its distribution is uneven and often inaccessible or polluted, leading to scarcity in many areas.Diamonds: Though valuable, they are considered a luxury and are less available, making them the most scarce item on this list.The value of an item is often tied to its scarcity and the demand for it. While water is essential for life, the availability of drinkable water is less than that of salt water. Diamonds, due to their rarity and desirability, are considered more scarce than both forms of water.
The Fed’s monetary policy tools directly impact the supply of money in a major way through their ______________.
Answer:
open market operation
Explanation:
Open market operation is the mechanism of Fed to alter money supply. To increase the money supply, Fed will buy financial securities such as Treasury bills from large banks or security dealers so there is more money deposit in the account of those who buy securities from Fed. Thus, there is more money available for loan hold by the banks resulting in an increase in the money supply. Fed does otherwise to reduce the money supply.