Assume a factory that currently employs 25 workers is considering adding another 5 workers to its payroll. Economists would classify this as:A) a long run decisionB) a short run decisionC) neither a short run or long run decisionD) both a short run and long run decision

Answers

Answer 1

D: It is both a short run and long run decision.

Explanation:

Whether its a short run or long run decision, it is determined by when the benefit will accrue to the entity.

Thus employing 5 more workers in the short run is going to help the entity whiles in the long run also they are going to be a developed staff which will benefit the entity in the long run.

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Related Questions

Before 1993, the U.S. Forest Service sold timber-cutting rights:
Select one:
a. only to foreign investors.
b. at below cost.
c. at a high profit.
d. only in old-growth forests.

Answers

Answer:

B

Explanation:

Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.a. Beginning cash balance on June 1, $96,000. b. Cash receipts from sales, $423,000. c. Budgeted cash disbursements for purchases, $278,000. d. Budgeted cash disbursements for salaries, $97,000. e. Other budgeted cash expenses, $59,000. f. Cash repayment of bank loan, $34,000. g. Budgeted depreciation expense, $36,000. A) $110,000 B) $85,000 C) $51,000 D) $15,000

Answers

Answer:

$15000

Explanation:

$96,000 + $423,000 − $278,000 − $97,000

− $59,000 − $34,000 − $36,000 = $15000

An investment of ​$93000 was made by a business club. The investment was split into three parts and lasted for one year. The first part of the investment earned​ 8% interest, the second​ 6%, and the third​ 9%. Total interest from the investments was $ 7170. The interest from the first investment was 6 times the interest from the second. Find the amounts of the three parts of the investment.

Answers

Answer:

Amount of three parts of investment are

72000, 16000 and 5000

Explanation:

We have given total investment = $93000

Let the investment made by three businessman are x , y and z

So [tex]x+y+z=93000[/tex]-----eqn 1

It is given interest rates are 8 % , 6% and 9 %

And time = 1 year

Total interest = $7170

So [tex]0.08x+0.06y+0.09z=7170[/tex]----eqn 2

It is given that interest from first investment is 6 times the interest from second investment

So [tex]0.08x=6\times 0.06y[/tex]

[tex]0.08x=0.36y[/tex] ----- eqn 3

After solving eqn 1 eqn 2 and eqn 3

x = 72000

Y = 16000

And z = 5000

Final answer:

To find the amounts of the three parts of the investment with different interest rates, we can set up a system of equations based on the given information and solve for the variables.

Explanation:

To find the amounts of the three parts of the investment, we can set up a system of equations based on the given information:

Let x be the amount invested at 8%, y be the amount invested at 6%, and z be the amount invested at 9%.

We know that

x + y + z = $93000 (equation 1)0.08x + 0.06y + 0.09z = $7170 (equation 2)0.08x = 6 * (0.06y) (equation 3)

Solving this system of equations, we can find the values of x, y, and z. Once we have those values, we can determine the amounts of each part of the investment.

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You establish a straddle on Walmart using September call and put options with a strike price of $99. The call premium is $7.95 and the put premium is $8.70. A) What is the most you can lose on this position?


B) What will be your profit or loss if Walmart is selling for $58 in September?


C) At what stock prices will you break even on the straddle?

Answers

Answer:

(a) Maximum loss will be $16.65

(b) There will be loss of $24.35

(c) Upper break even level = $115.65

Lower break even level = $82.35

Explanation:

We have given strike price = $99

Call premium = $7.95

And put premium = $8.70

(a) Maximum loss is given by

Maximum loss = put premium + call premium = $7.95 + $8.70 = $16.65

(b) Selling price = $58

So profit/loss = $58 - $99 + $16.65 = -$24.35 ( negative sign indicates loss )

So there will be a loss of $24.35

(c) Upper break even level = $99+$16.65 = $115.65

Lower break even level = $99 - $16.65 = $82.35

Final answer:

A straddle on Walmart with September call and put options with a strike price of $99 has a maximum loss of $16.65. If Walmart is selling for $58 in September, you will lose the entire premium of $16.65. The break-even points for the straddle are $115.65 and $82.35.

Explanation:

A straddle is an options strategy where an investor holds positions in both a call option and a put option with the same strike price and expiration date. In this case, you establish a straddle on Walmart using the September call and put options with a strike price of $99. The call premium is $7.95 and the put premium is $8.70.

A) The most you can lose on this position is the combined premiums you paid for the call and put options, which is $7.95 + $8.70 = $16.65.


B) To calculate the profit or loss if Walmart is selling for $58 in September, you need to determine if the options are in-the-money or out-of-the-money. In this case, both the call and put options are out-of-the-money because the stock price is below the strike price. Therefore, both options will expire worthless and you will lose the entire premium you paid for them, which is $16.65.


C) The break-even points for the straddle can be calculated by adding or subtracting the premiums from the strike price. In this case, the break-even points are $99 + $16.65 = $115.65 and $99 - $16.65 = $82.35.

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Floridyne, Inc. manufactures mouthwash. They had no finished goods inventory at the beginning of 2019. They have only one processing department for this product. A review of the company’s inventory records shows the following: At the beginning of January 2019, Floridyne has 4,500 gallons of mouthwash in process. (costs $8,410 for materials, 1,663 for labor and 4,990 for overhead) During 2019, Floridyne finishes/transfers 162,000 gallons of mouthwash. On December 31, 2019, Floridyne has 6,200 gallons of mouthwash that is 70% complete. Direct materials are added half at the beginning of the process and half after the process is 60% complete. During 2019 $349,000 of direct materials and $92,500 of direct labor were added. Using the weighted average approach to process costing, Floridyne would use what number of equivalent units in 2019 to calculate the cost per equivalent unit for direct labor?

Answers

Answer:

equivalent untis Labor: 166,340

Explanation:

Under weighted average we don't make distinction between started and finished and just finished. Thus we work with finished and ending WIP only:

finished         162,000

ending   WIP    6,200 ending at 70% complete

Equivalent units for labor:

finished + percentage of completion ending units

162,000 + 6,200 x 70% = 166,340

Revive Co. has outstanding 20-year noncallable bonds with a face value of $1000. These bonds have a current market price of $1382.73 and an annual coupon rate of 13%. The comp;any faces a tax rate of 35%.

If the company wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt?A. 6.9%B 5.75%C 5.18%D 6.61%

Answers

Answer:

5.75%

Explanation:

Firstly, we need to find the yield-to-maturity (YTM) of current outstanding bond as below:

Bond market price = Coupon/(1 + YTM) + Coupon/(1 + YTM)^2 + Coupon/(1 + YTM)^3 +...+ Coupon/(1 + YTM)^20 + Face value/(1 + YTM)^20, or:

1,382.73 = 130/(1 + YTM) + 130/(1 + YTM)^2 + 130/(1 + YTM)^3 +...+ 130/(1 + YTM)^20 + 1,000/(1 + YTM)^20

Solve the equation, we get YTM = 8.85%.

So, if he company wants to issue new debt, its after-tax cost of debt is 8.85% x (1 - 35%) = 5.75%

A company had total revenues of $200 million, operating profit margin of 20%, and depreciation and amortization expense of $10 million over the trailing twelve months. The company currently has $300 million in total debt and $100 million in cash and cash equivalents. If the company's market capitalization (market value of its equity) is $1 billion, what is its EV/EBITDA ratio? Solution: EBITDA = EBIT + Depreciation & Amortization = Revenues x Operating profit margin + Depreciation & Amortization = $200 million x 0.2 + $10 million = $50 million EV = Equity + Debt-Cash = $1 billion + $300 million - $100 million = $1.2 billion EV / EBITDA = $1.2 billion/$50 million = 24.0 Reading assessment 5.12 Homework. Unanswered You are in the middle of valuing a stock using the DCF method. According to your projections, the company is expected to generate free cash flows of $40 million in 4 years, after which FCFF is expected to grow at a stable rate in perpetuity. Instead of using the perpetuity growth method, you decide to estimate the company's terminal value using the exit multiple approach. Your analysis of comparable companies reveal an average EV/FCFF ratio of 15.0. What is your estimate of the company's Terminal Value? Answer in millions, rounded to one decimal place.

Answers

Answer:

$600 million

Explanation:

Valuation of companies using the terminal multiple approach is far less complex than the perpetual or perpetuity growth approach.

With the terminal multiple approach we apply the 'Exit Multiple DCF Terminal Value Formula'.

TV  =  Financial metric (i.e. EBITDA)  x  trading multiple (i.e. 15x)

Hence the terminal value of the company is $40*15 = $600

Starbucks is opening a location in China every 15 hours, and just opened its largest location in the world in Shanghai. Which method of international expansion is Starbucks utilizing?

Multiple Choice

A. exporting
B. global outsourcing
C. wholly-owned subsidiaries
D. importing
E. joint ventures

Answers

Final answer:

Starbucks is utilizing the expansion strategy of establishing wholly-owned subsidiaries in China, demonstrating its commitment to controlling its operations and maintaining its brand within the Chinese market.

Explanation:

Starbucks' method of international expansion in China, where the company is opening a new location every 15 hours and has opened its largest store in Shanghai, is an example of establishing wholly-owned subsidiaries. This approach involves the company owning 100% of the subsidiary's shares and having full control over the business operations in the foreign country. This choice is indicative of Starbucks' long-term commitment to the Chinese market, allowing them to maintain control over their brand and business practices in the rapidly growing Chinese economy.

Information concerning the stock of a corporation must be outlined in the articles of incorporation.

A. True
B. False

Answers

Answer:

A. True

Explanation:

The company's incorporation article is a series of official documents submitted to a government agency to legitimize the establishment of a company. The articles of incorporation must contain the relevant information, such as company name, street address, representative of the operation service and the number and type of shares, stocks to be issued. The article of incorporation is sometimes called "charter of the company", "charter of the association" or "constituent document". The charter of the association is the documentation required for a company to be registered with the government and acts as an arrangement to recognize the establishment of a company. The document summarizes the basic information required to set up a company, the institutional rules of the state in which the management of a company and the charter of the association are submitted.

On December 1, Miser Corporation exchanged 6,000 shares of its $25 par value common stock held in treasury for a parcel of land to be held for a future plant site. The treasury shares were acquired by Miser at a cost of $40 per share, and on the exchange date the common share of Miser had a fair value of $50 per share. Miser received $18,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at what amount?

Answers

Answer:

Capitalized value $582.000.

Explanation:

Step 1. Given information.

The common share of Miser had a fair value of $50 per share.

Step 2. Formulas needed to solve the exercise.

Fair value of shares = Price per share * (Amount by selling scrap -        exchanged shares)Capitalized value = fair value of shares - value of scrap.

Step 3. Calculation.

Fair value of shares = $50 * (18.000 - 6.000) = $600.000

Land should be capitalized by fair market value of share exchanged less any recovery of scrap as land will be developed for future plant.  

Step 4. Solution.

Fair value of shares = $50*12.000 = $600.000  

Less: value of scrap = $18.000  .

Capitalized value = $600.000   - $18.000 = $582.000.

Which of the following costs are most likely to be classified as variable?

A. Factory rent.
B. Manager salaries.
C. Insurance.
D. Direct materials.
E. Straight-line depreciation.

Answers

Answer:

Correct answer is D. Direct materials

Explanation:

Among the given choices, direct materials is most likely to be classified as variable cost. Direct materials are the supplies used in manufacturing products which can be directly identified in the output production. It is a main component which is traceable to create or produce products. Basically, all manufacturing industries used direct materials as their variable cost in their production.

Final answer:

Variable costs are costs that vary with the level of production. Direct materials and straight-line depreciation are examples of variable costs. Factory rent, manager salaries, and insurance are typically classified as fixed costs.

Explanation:

Variable costs are the costs that vary with the level of production. Based on the information provided, the costs most likely to be classified as variable are:

Direct materials: These costs vary based on the quantity of materials used in production. For example, if more units are produced, more materials will be needed.

Straight-line depreciation: This cost is associated with the wear and tear of assets over time. If more units are produced, the depreciation expense will be higher.

Factory rent, manager salaries, and insurance are more likely to be classified as fixed costs, as these costs do not directly vary with the level of production.

A manufacturing plant has found that purchasing a computerized electronic machine system decreased the need for additional workers. Which of the following has occurred?
a) Job exportationb) Outsourcingc) Automationd) Offshoring

Answers

Answer:

C. Automation

Explanation:

The situation explained in the question perfectly explains Automation. New technologies and advancements lead to more efficient and advanced procedures and processes, particularly when such procedures and processes  require very little human interaction or assistance. Now if we talk about the manufacturing industry, procedures like CAD (computerized aided design), CAM (computer aided manufacturing) and EDI (electronic data interchange) have pretty much eased and transformed the manufacturing procedures and environments.

Job exportation mostly relates to employment in international corporations usually located in growing and developed countries.

Outsourcing is the contracting out of certain aspects of business to third party specialist organizations who mostly specialize in that particular work domain.

Offshoring is the transfer and reallocation of SBU (strategic business units) from one country to another.

One behavioral factor that must be considered when responsibilities are assigned to managers is
A. Managers should be held responsible for only actual revenues and actual costs and not for standard revenues or standard costs.B. Managers with responsibility for direct labor costs should compute efficiency variances based on labor used rather than labor purchased.C. Managers should not be allowed to influence the plans and standards for those activities over which they have substantial control.D. Managers should be held responsible for only those cost,revenues, or assets over which they have substantial control.E. Managers in decentralized organizations should be held responsible for the costs, revenues, and assets in all departments in the organization, whether they directly control those departments or not.

Answers

Answer:

The correct answer is letter "A": Managers should be held responsible for only actual revenues and actual costs and not for standard revenues or standard costs.

Explanation:

Standard revenues and costs in a company are those calculated after several years of operations. It measures an approximate of how much profits the organization could earn and how much is needed to keep the operations going. Managers should only be evaluated on the actual profits and costs incurred in the firm since only with them they have control.

Raymond and his brother decided to open a computer shop together. This is an example of which type of business structure

Answers

Answer:

Explanation:

It is called a general partnership business structure.

It can also be called a Joint Venture.

General partnerships are formed when two or more people agree to enter into business together to make a profit.

The result can often be a strong union that blends complementary skills, financial resources, customers and connections to help the venture succeed.

But sometimes, the business venture can fail, their relationship can turn sour which will leave the joint venture apart while both parties drop the business idea and look elsewhere.

Answer:

Explanation:

joint business

Calliope Corp. has outstanding 400 shares of common stock of which Yak, So, Day, and Ren each own 100 shares or 25 percent. No stock is considered constructively owned by any of the shareholders under section 318. Calliope redeems 34 shares from Yak, 24 shares from So, and 42 shares from Day. Which shareholder(s) qualify for exchange treatment on this redemption?

I. Yak

II. So

III. Day

a. I and II only.
b. III only.
c. None.
d. II only.

Answers

Answer:

Day

Explanation:

To qualify as an exchange, a redemption must be substantially disproportionate. It should be below 80% of what it was before the redemption

They had 25% 80% would be 20% so those shareholders below 20% will be considered exchange:

Yak: 100 - 34 = 66   then 66 / 300 = 22%

So:  100 - 24 = 76   then  76/300 = 25.33%

Day 100 - 42 = 58 then 58/300 = 19.33%

Dya qualifies as decrease below 80% of their previous percentage of owership

The model of the kinked demand curve in price competition implies that:

a. free entry in the market will eventually reduce economic profits to zero.
b. firms will coordinate prices so as to maximize group profit.
c. strong brand loyalty by consumers gives firms little incentive to reduce prices.
d. a firm's competitors will match any price cuts by the firm but not price hikes.
e. firms in the market match the market price set by a single dominant firm.

Answers

Answer:

b.

Explanation:

firms will coordinate prices so as to maximize group profit.

Due to the discontinuous gap , the kinked demand theory predicts that price and quantity will be insensitive to small changes in the cost of production. As a result, prices can be fairly rigid and stable in an oligopoly even when firms are acting independently without any collusive activities

You’re part of the Ethical Review Broad, auditing Cirque’s safety protocols. You discover that Cirque performers suffer a high number of injuries that required medical attention, including one fatality. One report found that one of Cirque’s shows had 56 injuries per 100 workers, which is four times the injury rate for professional sports teams. Ethically speaking, what can Cirque’s management do to address safety concerns and what might be the results? Would increasing safety measures affect sales?

Answers

Answer: The management must ensure that the personnel manager must be up and doing in the performance of their job in order to ensure that accident in the workplace is reduced to the nearest minimum. (b) The increasing safety measures will not affect sales but increase sales because consumers will see the organization as the one who makes the safety of their workers top on their priority.

Explanation:

Safety measures in the workplace are the steps taken by the management in an organization in order to ensure that workers work in an environment that will not endanger their lives while performing their official duties at their workplace. The responsibility for the health and safety as well as the welfare of all workers falls under the functions of the personnel department headed by the personnel manager. The accident in the workplace account for a considerable loss of Labour hours in addition to personal suffering and it is necessary and economically sensible and humane to ensure that working conditions are as safe and as healthy as possible. The management in some cases also appoint an officer specifically to look after health and safety known as department safety officer whose job will be to advice and help as required and also complement the effort of the personnel manager aimed at ensuring the safety of the employees in the workplace

The management must ensure that personnel manager provide the means for all employees to work in a safe environment in the sense that, the personnel manager must ensure that sufficient information and training as well as supervision is made to ensure that hazard are avoided in the workplace. The personnel manager must also ensure that each employee also contribute to his own safety while at work by issuing to each employee codes of safe practice which every workers must be made to adhere to at all times to reduce accident in the workplace.

The personnel manager must ensure that he brought it to the notice of the management to paid a particular attention to the provisions and maintenance of plants and machinery, ensure safe and healty handling of the materials used in the workplace, the manager must also ensure that management make adequate provisions for the welfare facilities in the workplace and also ensure that the working environment is clean and tidy.The management must also ensure that protective clothing and equipment provided for the use of the workers while at work are worn by the workers when performing their official duties in their workplace. In addition, it is the duty of the personnel manager to point out to the management hazard to safety and also make a list of these together with the detailed preventive measures to be taken which will be made available to the employees.

The increasing safety measures will not affect the sales of the organization but rather contribute to the good name of the organization. It will make the consumers sees the organization as the one who are very concerned about the health and welfare of their workers and that the management is humane in the treatment of their workers. These good publicity for the organization will increase the sales of their products and services because a lot of the consumers will like to patronize the products and services of such organizations.

Suppose that on January 1 you have a balance of ​$4100 on a credit card whose APR is 16​%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. a. Calculate your monthly payments. b. When the card is paid​ off, how much will you have paid since January​ 1? c. What percentage of your total payment from part​ (b) is​ interest?

Answers

Final answer:

To pay off a credit card balance of $4100 with an APR of 16% in one year, the monthly payments would be $367.86, totalling $4414.32 over the year. The total interest paid would be $314.32, which is 7.12% of the total payments.

Explanation:

To calculate your monthly payments on a credit card balance of $4100 with an APR of 16% that you want to pay off in 1 year, you first have to understand how APR works. APR, or Annual Percentage Rate, represents the annualized interest that you're required to pay on your credit card balance. In this case, an APR of 16% means that you will pay $4100 * 0.16 = $656 in interest over the year if you made no payments.

However, since you will be making equal monthly payments to pay off the balance, your actual interest will be slightly less, and the remaining part of your monthly payment will go towards reducing your outstanding balance. You can find your monthly payment using the loan amortization formula, which in this case would be: Payment = [$4100 * 0.16 / 12] / [1 - (1 + 0.16 / 12)^-12] = $367.86.

a. Thus, your monthly payments will be $367.86.

b. Over the course of a year, that adds up to $367.86 * 12 = $4414.32. So, you would have paid $4414.32 by the end of the year to completely pay off your credit card balance.

c. The total interest paid would be $4414.32 - $4100 = $314.32. Therefore, the percentage of your total payments that is interest would be $314.32 / $4414.32 * 100 = 7.12%.

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The focus group report lists most of the themes that became apparent during the research, notes any diversity of opinions or thoughts expressed by the participants, and contains abbreviated excerpts provided as evidence.

a. True
b. False

Answers

Answer:

The correct answer is letter "B": False.

Explanation:

A focus group is a technique used to obtain qualitative data for research. This data is obtained after gathering a small group between six and twelve people to expose their opinions, likes, and preferences in regards to a product, idea, service, advertisement or content. The participants have similar features and the chat focuses on a specific matter. There is no need for abbreviations since the participants' point of view is typically recorded for analysis and feedback.

In the Planning, Programming, Budgeting and Execution (PPBE) process, one result of the programming activities is the __________ [8a. Identify the basic flow of the financial management process, to include cost analysis, the Planning, Programming, Budgeting and Execution (PPBE) process, Congressional enactment, and program execution.] a. Program Objectives Memorandum (POM) b. Future Years Development Program (FYDP) c. Defense Planning Guidance (DPG) d. Budget estimate submission(BES)

Answers

Answer:

The correct answer is letter "A": Program Objectives Memorandum.

Explanation:

The Program Objectives Memorandum or POM is one of the Planning, Programming, Budgeting and Execution (PPBE) outcomes that is in charge of providing suggestions from the Services and Defense Agencies to the Department of the Secretary of Defense (DoD) regarding program funds distribution that will help them to reach the Service Program Guidance objectives.

Final answer:

In the Planning, Programming, Budgeting and Execution (PPBE) process, programming activities result in the creation of the Program Objectives Memorandum (POM),option A.

Explanation:

In the Planning, Programming, Budgeting and Execution (PPBE) process, the result of the programming activities is the Program Objectives Memorandum (POM). This document outlines an organization's proposed programs, including the desired capabilities and resources required over a multi-year period.

The POM serves as a key component within the PPBE process, which in turn lays the groundwork for performance based budgeting -- a system where expenditures are aligned with measurable objectives, allowing for better tracking and accountability.

The PPBE process operates within a larger framework of financial management, frequently engaging with cost analysis and is subject to Congressional enactment. The process includes a range of activities that encompass strategic planning and department-level planning, culminating in program execution.

The budget serves as a critical policy statement that connects an organization's mission with its financial resources, and adjustments may occur mid-year to align with changing circumstances or priorities.

You notice that​ Coca-Cola has a stock price of $ 40.47 and EPS of $ 1.87. Its competitor PepsiCo has EPS of $ 4.17. ​But, Jones​ Soda, a small batch​ Seattle-based soda producer has a​ P/E ratio of 34.3. Based on this​ information, what is one estimate of the value of a share of PepsiCo​ stock? One share of PepsiCo stock is valued at ​$ nothing.

Answers

Answer:

Value of share of Pepsi Co stock will be $90.2388

Explanation:

We have given stock price of coca-cola = $40.47

And EPS = $1.87

So [tex]\frac{P}{E}[/tex] ratio [tex]=\frac{40.47}{1.87}=$21.64[/tex]

Pepsi Co stock EPS = $4.17

We have to find the share of Pepsi Co stock

Pepsi Co stock will be given by

Value of share of Pepsi Co stock = [tex]EPS\times \frac{P}{E}ratio[/tex]

[tex]=21.64\times 4.17=$90.2388[/tex]

the units digit of a two digit number is 10. If the digits are reversed, the new number is 9 less than the original number. find the original number​

Answers

Answer: The original number is 10

Explanation:The original number is definitely 10 and if this no is reversed it would give us 01. The difference between 10 and 01 is:

10-01=09.

Therefore, 01 is 9 less than than the original number which is 10.

This clearly explains this exact situation and a clear and precise solution has been given.

A stock with a beta of zero would be expected to have a rate of return equal to:

Answers

Answer:

A stock with a beta of zero would be expected to have a rate of return equal to the risk free rate of return.

Explanation:

A stock with the Beta of zero has 0 co relation with market movements and is unaffected by the changes in the stock market. This stock would have the expected return equal to the risk free rate of return.

The CAPM formula for rate of return is

Risk free rate of retun + (Beta * Market risk premium)

Because the Beta is 0 the second part of the equation will also be 0 the the stock would have the same rate of return as the risk free rate of return.

A company is considering two projects. Project I Project II Initial investment $120,000 $120,000 Cash inflow Year 1 $40,000 $20,000 Cash inflow Year 2 $40,000 $20,000 Cash inflow Year 3 $40,000 $32,000 Cash inflow Year 4 $40,000 $48,000 Cash inflow Year 5 $40,000 $50,000 What is the payback period for Project I?

a. 5 years
b. 2.5 years
c. 1 year
d. 3 years
e. 3.5 years

Answers

I think E:3.5 years

It is common for supermarkets to carry both generic (store-label) and brand-name (producer-label) varieties of sugar and other products. Many consumers view these products as perfect substitutes, meaning that consumers are always willing to substitute a constant proportion of the store brand for the producer brand. Consider a consumer who is always willing to substitute four pounds of a generic store-brand sugar for two pounds of a brand-name sugar. Do these preferences exhibit a diminishing marginal rate of substitution between store-brand and producer-brand sugar?

Answers

Answer and explanation:

Yes, the fact that a consumer is willing to replace four pounds of generic store-brand sugar for two pounds of a brand-name sugar reflects a diminishing marginal rate of substitution. This type of marginal rate of substitution (MRS) explains how a consumer is willing to acquire less quantity of one good to get one more additional unit of another good that is equally satisfying. In a graph, the diminishing MRS is calculated using an indifference curve.

In setting up a kanban control system you need to determine the number of kanban card sets needed. If the expected demand during lead time is 25 per hour, the safety stock is 20 percent of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what the number of kanban card sets is needed?

Answers

Final answer:

To determine the number of kanban card sets needed in a kanban control system, calculate the demand during lead time, the safety stock, and divide it by the container size.

Explanation:

To determine the number of kanban card sets needed in a kanban control system, you need to consider several factors. In this case, the expected demand during lead time is 25 per hour, the safety stock is 20% of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours.

First, calculate the demand during lead time by multiplying the expected demand per hour (25) by the lead time (5). This gives us a demand of 125.

Next, calculate the safety stock by multiplying the demand during lead time (125) by the safety stock percentage (20%) and dividing it by the container size (5). This gives us a safety stock of 25.

Finally, add the demand during lead time (125) to the safety stock (25) and divide the result by the container size (5) to determine the number of kanban card sets needed. In this case, the number of kanban card sets needed is 30.

Alpha Co. is paying a $.64 per share dividend today. There are 158,000 shares outstanding with a par value of $1 per share. As a result of this dividend, the: A) common stock account will decrease by $138,000 B) capital in excess of par value account will decrease by $101,120 C) retained earnings will decrease by $101,120. D) retained earnings will decrease by $99,360. E) common stock account will decrease by $101,120.

Answers

Answer:

Dividend paid = $0.64 x 158,000 = $101,120. The dividend paid reduces retained earnings by $101,120.

The correct answer is C

Explanation:

Dividend is paid out of profit after tax. This reduces the retained earnings of the company since dividend involves outflow of cash.

Final answer:

An investor would pay about $256,500 for a share of Babble, Inc., based on the present-day value of expected dividends amounting to $51.3 million over the next two years, assuming there are 200 shares available.

Explanation:

The question is about a company named Babble, Inc., which is offering its stock to investors and planning to disband in two years. To determine what an investor would pay for a share of stock in this company, one must calculate the present-day value (PDV) of the expected dividends, which are $15 million immediately, $20 million in one year, and $25 million in two years. Assuming there is an interest rate that could be earned elsewhere (e.g., 15%), this interest rate would be used to discount the future payments back to their present value.

Once the PDV of all dividends has been calculated, the sum is divided by the number of shares available to find the price per share. For Babble, Inc., assuming a PDV calculation has already been performed and the total PDV of the dividends is $51.3 million, one would divide this amount by the 200 shares to find the price per share. In this case, it's calculated as $51.3 million/200 = $256,500 per share.

This price represents the value of each share based on the expected dividends discounted to their present value. Hence, an investor would consider paying about $256,500 per share of Babble, Inc., given the current and expected future profits.

ren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for the current period follows: Product Pounds Price/lb. Loin chops 3,000 $ 5.00 Ground 10,000 2.00 Ribs 4,000 4.75 Bacon 6,000 3.50 The total joint cost for the current period was $43,000. How much of this cost should Wren Pork allocate to Loin chops

Answers

Answer:

Allocated costs Loin Chop= $5,590

Explanation:

Giving the following information:

Product - Pounds - Price/lb.

Loin chops 3,000lb $ 5.00/lb

Ground 10,000lb $2.00/lb

Ribs 4,000lb $4.75/lb

Bacon 6,000lb $3.50/lb

The total joint cost for the current period was $43,000

First, we need to calculate the weighted average lb participation of Loin Chops:

Total lb= 23,000

Weighted average lb= 3,000/23,000= 0.13

Now, we can allocate the joint costs:

Loin Chop= $43,000*0.13= $5,590

To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2017, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Flint uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2017, the company expects to declare and pay an $8,450 cash dividend.

Answers

Answer:

Please refer the detail in the explanation box below:

Explanation:

The question is incomplete!!!

Please refer below the complete question

Krause Industries? balance sheet at December 31, 2016, is presented below.

KRAUSE INDUSTRIES  

Balance Sheet  

December 31, 2016  

Assets  

Current Assets  

Cash  $7,500

Accounts receivable  73,500

Finished goods inventory (1,500 units)  26,320

Total current assets  107,320

Property, Plant, and Equipment  

Equipment $40,010  

Less: Accumulated depreciation 10,200 29,810

Total assets  $137,130

Liabilities and Stockholders' Equity  

Liabilities  

Notes payable  $27,820

Accounts payable  45,040

Total liabilities  72,860

Stockholders' Equity  

Common stock $38,930  

Retained earnings 25,340  

Total stockholders' equity  64,270

Total liabilities and stockholders' equity  $137,130

Budgeted data for the year 2017 include the following.

2017  

Quarter 4 Total

Sales budget (8,000 units at $32) $76,800 $256,000

Direct materials used 11,280 62,500

Direct labor 12,500 50,900

Manufacturing overhead applied 10,000 49,660

Selling and administrative expenses 15,250 75,000

To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2017, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Krause uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2017, the company expects to declare and pay an $10,450 cash dividend.

The company?s cash budget shows an expected cash balance of $5,880 on December 31, 2017. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2017, the company expects to purchase additional equipment costing $9,380. $7,848 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Krause expects to pay $9,450 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2017, includes amounts due suppliers (see above) plus other accounts payable of $7,540. Unpaid income taxes on December 31 will be $7,700.

Prepare a budgeted classified balance sheet on December 31, 2017.

Answer:

KRAUSE INDUSTRIES

Balance Sheet

31-Dec-2017

Assets                                                          Amount

Current Assets  

Cash                                                             $5,880

Accounts receivable ($76,800 x 40%)     $30,720

Finished goods inventory (2,500 units x $18)     $45,000

Total current assets                                      $81,600

Property, Plant, and Equipment  

Equipment                                          $49,390  

Less: Accumulated depreciation -$18,048      $31,342

Total assets                                                       $112,942

Liabilities and Stockholders' Equity  

Liabilities  

Notes payable ($27,820-$9,450)                 $18,370

Income Tax Payable                                          $7,700

Accounts payable                                                  $7,540

Total liabilities                                                  $33,610

Stockholders' Equity  

Common stock                                                         $38,930  

Retained earnings                                                 $40,402  

Total stockholders' equity                                   $79,332

Total liabilities and stockholders' equity          $112,942

Final answer:

The student's business question involves financial budgeting, production planning, and break-even analysis, including concepts like break-even price point and short-run shutdown price point to aid in making informed business decisions.

Explanation:

The student's question pertains to various business concepts, particularly those related to financial budgeting, production planning, and cost analysis. In this context, we calculate key points like break-even price points, short-run shutdown price points, and interpret the figures to make informed business decisions.

For instance, if a firm's total cost when producing 1,000 units is $4,000 and the total variable cost is $2,800, the break-even price point would be $4.00. This indicates the price per unit at which total revenues would exactly cover total costs. Similarly, the short-run shutdown price point is the price at which the company would cover its variable costs, which is $2.80 in this scenario. This price point helps the firm decide whether to stay operational or shut down in the short run.

Understanding these concepts is crucial for a business to ensure profitability, manage production effectively, and make strategic financial decisions.

Misty Company reported the following before-tax items during the current year:Sales revenue $ 600Selling and administrative expenses 250Restructuring charges 20Loss on discontinued operations 50Misty's effective tax rate is 40%.What is Misty's income from continuing operations?
(A) $198
(B) $330.(C) $210.(D) $360.

Answers

Answer:

                                                               $

Sales revenue                                      600

Selling and administrative expenses (250)

Restructuring charges                          (20)

Profit before tax                                    330

Tax @ 40%                                             132

Income from continuing operations     198

The correct answer is A

Explanation:

Income from continuing operation is the excess of sales revenue over selling and administrative expenses, restructuring charges and tax.

Tax is 40% of profit before tax.

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