Answer:
Production budget for next month = 10,000 units
Explanation:
The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.
Production budget = Sales budget + closing inventory - opening inventory
Opening inventory for next month = closing inventory for this month = 1000 units
Closing inventory for next month is given as 1000 units
Production budget = 10,000 + 1,000 -10000
= 10,000 units
Answer:
10,000 pillows
Explanation:
hope this helps:)
A company purchased a building on Jan 1, 2021, for $261,000. In addition, during 2021 the following costs related to the building have been incurred: Utilities$23,000 Property tax 5,100 Expansion of the building 64,000 New air-conditioning system 39,000 General maintenance$30,000 The amount of expenditures to capitalize for the year (not including the initial purchase of the building) is:
Answer: $103,000
Explanation:
Generally, capitalized expenses are those expenses that will contribute to the long term improvement of the assets. Short term expenses are expensed.
In the question given, the Expansion of the building and the new air-conditioning system will be capitalized as they add a long term benefit.
Property taxes will be expenses as well as utilities and general maintenance as they are period costs.
Calculating the Capitalized cost is then,
= 64,000 + 39,000
= $103,000
The amount of expenditures to capitalize for the year (not including the initial purchase of the building) is $103,000.
The four components of planned aggregate expenditure are: A. spending on domestic goods, domestic services, foreign goods, and foreign services.B. spending on durable goods, inventory investment, government debt, and net exports.C. consumption, planned investment, government transfers, and net interest.D. consumption, planned investment, government purchases, and net exports.
Answer:
D.
Explanation:
Aggregate Planned Expenditure (AE) can be defined as the sum value of all the finished products and services in an economy. This value is calculated by adding all the expenditures that are considered in an economy. These components are household consumption (C), planned investments (I), Government expenditures or purchases (G), and net exports (NX) [net exports is the difference between the total exports and total imports].
The sum value or the aggregate planned expenditure is calculated by adding all these components.
So, the correct answer is option D.
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sales Mix Unit Contribution Margin Lawnmowers 20 % $30 Weed-trimmers 50 % $21 Chainsaws 30 % $39 Yard Tools has fixed costs of $4,342,800. Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. Lawnmowers Enter a number of units units Weed-trimmers Enter a number of units units Chainsaws Enter a number of units units
Answer:
Total Break even sales = 154,000 units
Lawnmowers ($154,000 × 20%) = 30,800 Units
Weed-trimmers ($154,000 × 50%) = 77,000 units
Chainsaws ($154,000 × 30%) = 46,200 Units
Explanation:
As per the data given in the question, the computation is shown below:
Weighted contribution margin = Contribution margin × Sales mix
= (0.2 × 30) + (0.5 × $21) + (0.3 × $39)
= $28.2
Now, Total break even sales = Fixed cost ÷ Weighted contribution margin
= $4,342,800 ÷ $28.2
= 154,000 units
So classifications are as follows
Lawnmowers ($154,000 × 20%) = 30,800 Units
Weed-trimmers ($154,000 × 50%) = 77,000 units
Chainsaws ($154,000 × 30%) = 46,200 Units
We simply multiplied the total break even sales with each sales mix
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost.
Last year, the company sold 36,000 of these balls, with the following results:
Sales (36,000 balls) $ 900,000
Variable expenses 540,000
Contribution margin 360,000
Fixed expenses 263,000
Net operating income $ 97,000
Required:
1. Compute the CM ratio and the break-even point in balls.
2. Compute the the degree of operating leverage at last year.
Answer: 15$ per ball and 60% is direct label cost! Ur answer’s are 15$ and 60% dlc!
Explanation:
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost.
"Profit-sharing plans provide a more direct incentive in small firms than in large firms. are practically impossible to use successfully in small firms. are similar to individual incentive plans in their motivational effect. are an expensive fringe benefit for small firms, costing 40 percent of payroll.
Answer:
Provides a more direct incentive in small firms than in large firms.
Explanation:
Profit sharing plan can be defined as a contribution plan in which the management of a company shares part of its profit with the employees. This could motivate and inspire the employees to work efficiently towards the growth of the organisation.
Profit sharing plan gives the employees a sense of ownership, this would inspire them to work harder to ensure the success of the organisation.
Answer:
Statement "A" is correct.
Explanation:
Profit distribution delivers a a lot of direct motivation in little companies than bigger firms because of the dimensions of firms and range of individuals operating in it.
As the range of individuals is small, there's high official communication and also these strategies are a lot of direct in environment.
Therefore statement A is correct which identifies that the share range delivers a lot of direct incentive in small size companies than in huge firms.
These strategies are utilized with success in smaller companies thus statement B is incorrect. These aren't the same as distinct strategies thus statement C is also incorrect. These strategies aren't peripheral edges cost accounting 40% of staff thus statement D is not correct.
MangiareBuono, a supermarket chain, has asked Fiorello to supply it with 30,000 gallons of Top Quality Oil at a price of $8 per gallon. MangiareBuono plans to have the oil bottled in 16-ounce bottles with its own MangiareBuono label. If Fiorello accepts the order, it will save $0.23 per gallon in the packaging of Top Quality Oil. There is sufficient excess capacity for the order. However, the market for Refined Oil is saturated, and any additional sales of Refined Oil would take place at a price of $3.10 per gallon. Assume that no significant non-unit-level activity costs are incurred.
a. What is the profit normally earned on one production run of Refined Oil and Top Quality Oil?
b. Should Fiorello accept the special order?
Answer:
The complete question and solution is given in the box below
Explanation:
Special Order, Traditional Analysis Fiorello Company manufactures two types of cold-pressed olive oil, Refined Oil and Top Quality Oil, out of a joint process. The joint (common) costs incurred are $92,500 for a standard production run that generates 30,000 gallons of Refined Oil and 15,000 gallons of Top Quality Oil. Additional processing costs beyond the split-off point are $2.40 per gallon for Refined Oil and $1.95 per gallon for Top Quality Oil. Refined Oil sells for $4.25 per gallon, while Top Quality Oil sells for $8.30 per gallon. MangiareBuono, a supermarket chain, has asked Fiorello to supply it with 30,000 gallons of Top Quality Oil at a price of $8 per gallon. MangiareBuono plans to have the oil bottled in 16-ounce bottles with its own MangiareBuono label. If Fiorello accepts the order, it will save $0.23 per gallon in packaging of Top Quality Oil. There is sufficient excess capacity for the order. However, the market for Refined Oil is saturated, and any additional sales of Refined Oil would take place at a price of $3.10 per gallon. Assume that no significant non-unit-level activity costs are incurred. Required: 1. What is the profit normally earned on one production run of Refined Oil and Top Quality Oil? $ 2. Should Fiorello accept the special order?
solution
a) normal profit = (30,000 gallons x $4.25) + (15,000 gallons x $8.3) - $193,750 = $58,250
b) Do determine whether to accept the special order
cost per gallon = $92500 x 15000
45000
$30833
= 15000
$2.1 per gallon
$2.1 + $1.95 = $4.05
profit margin per gallon = $8 - $4.05 - $0.23
= $3.72
In this manner, special order ought to be acknowledged as we can see the net revenue is adequate to recover the related expenses and friends has the entrance limit also.
Nine years ago the Templeton Company issued 26-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had a 9% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.
Answer:
11.62%
Explanation:
Note: see the attached excel file for how the realized rate of return is estimated.
Face value = $1,000
Years completed = 9
Coupon rate = 11%
Coupon amount ($) = 110
Call premium = 9%
Call price = 1,090
Realized rate of return = 11.62%
The Doodad Company purchases a machine for $440,000. The machine has an estimated residual value of $40,000. The company expects the machine to produce eight million units. The machine is used to make 700,000 units during the current period.If the units-of-production method is used, the depreciation expense for this period is:___________.A. $38,500.B. $700,000.
C. $660,000.D. $35,000.
Answer:
Annual depreciation= $35,000
Explanation:
Giving the following information:
The Doodad Company purchases a machine for $440,000.
The machine has an estimated residual value of $40,000.
The company expects the machine to produce eight million units.
The machine is used to make 700,000 units during the current period.
To calculate the depreciation expense under the units-of production method, we need to use the following formula.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= [(440,000 - 40,000)/8,000,000]*700,000
Annual depreciation= 0.05*700,000
Annual depreciation= $35,000
Will Jones, Pharoah is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $424 annual fee plus $11 per tax return for a license to use Mega Tax software. (a) What is the company’s total annual cost for the Mega Tax software if 342 returns are filed? If 446 returns are filed? If 500 returns are filed?
Answer and Explanation:
The computation of the total annual cost for each returns are shown below:
a. For 342 returns
= $424 + $11 × $342
= $424 + $3,762
= $4,186
b. For 446 returns
= $424 + $11 × $446
= $424 + $4,906
= $5,330
c. For 500 returns
= $424 + $11 × $500
= $424 + $5,500
= $5,924
We simply pay the annual fees and then added the added value i.e annual fee multiply with the each returns filed
A company just starting business made the following four inventory purchases in June: June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 510 $2,115 A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. The inventory method which results in the highest gross profit for June is
Final answer:
To determine the inventory method that results in the highest gross profit for June, calculate the COGS using FIFO, LIFO, and WAC methods. Compare the gross profits obtained from each method to find the one with the highest profit.
Explanation:
To determine the inventory method that results in the highest gross profit for June, we need to calculate the cost of goods sold (COGS) using different inventory methods and compare the gross profits.
In this case, the company made four inventory purchases in June. We have the purchase dates, number of units purchased, and the total cost of each purchase. Additionally, a physical count on June 30 reveals that there are 250 units on hand.
By using the First-In, First-Out (FIFO) method, we assume that the first units purchased are the first ones sold. Using the information given, we can calculate the COGS for June. We start by subtracting the units on hand from the total units purchased, and then we allocate the costs to these units. By applying the same calculation to each purchase separately and summing up the costs, we can find the COGS and calculate the gross profit based on this method. Repeat the same process with the Last-In, First-Out (LIFO) method and the Weighted Average Cost (WAC) method to compare the gross profits obtained from each method. Finally, determine which method results in the highest gross profit for June.
Steven Wong wishes to save for his retirement by depositing $1,200 at the beginning of each year for thirty years. Exactly one year after his last deposit, he wishes to begin making annual level withdrawals until he has made twenty withdrawals and exhausted the savings. Find the amount of each withdrawal if the effective interest rate is 5% during the first thirty years but only 4% after that.
After 30 years of making annual deposits of $1,200 with a 5% interest rate, the total value of the deposits will be approximately $78,917.25. If Steven plans to make 20 withdrawals, each withdrawal should be approximately $3,945.86 to evenly distribute the total amount.
To find the amount of each withdrawal, we can use the concept of present value and future value. Let's break it down step by step:
Calculate the future value of the deposits
Using the formula for the future value of an ordinary annuity, we can find the total value of the deposits after 30 years. The formula is:
[tex]FV = PMT * ((1 + r)^n - 1) / r[/tex]
Where FV is the future value, PMT is the annual deposit, r is the interest rate, and n is the number of years.
Plugging in the values:
PMT = $1,200
r = 5% = 0.05
n = 30
[tex]FV = $1,200 * ((1 + 0.05)^30 - 1) / 0.05[/tex]
FV ≈ $78,917.25
So, after 30 years, the total value of the deposits will be approximately $78,917.25.
Calculate the amount of each withdrawal
Now that we know the total value of the deposits, we can calculate the amount of each withdrawal. Since Steven wants to make 20 withdrawals, we divide the total value by 20:
Amount of each withdrawal = Total value of deposits / Number of withdrawals
Amount of each withdrawal ≈ $78,917.25 / 20
Amount of each withdrawal ≈ $3,945.86
Therefore, each withdrawal should be approximately $3,945.86.
The amount of each withdrawal will be approximately $235.29.
Step 1
To find the amount of each withdrawal, we can use the present value of an annuity formula.
First, we calculate the future value of the annuity after thirty years using the effective interest rate of 5%.
Let P be the deposit amount at the beginning of each year, n be the number of deposits (30 years), and r be the effective interest rate.
[tex]\[ FV = P \times \frac{(1 + r)^n - 1}{r} \]\[ FV = 1200 \times \frac{(1 + 0.05)^{30} - 1}{0.05} \]\[ FV = 1200 \times \frac{(1.05)^{30} - 1}{0.05} \]\[ FV \approx 1200 \times \frac{4.3219 - 1}{0.05} \]\[ FV \approx 1200 \times \frac{3.3219}{0.05} \]\[ FV \approx 1200 \times 66.438 \]\[ FV \approx 79725.6 \][/tex]
Step 2
Now, we need to calculate the annual withdrawal amount using the future value of the annuity and the remaining number of withdrawals (20 years) at an effective interest rate of 4%.
Let W be the withdrawal amount.
[tex]\[ 79725.6 = W \times \frac{1 - (1 + 0.04)^{-20}}{0.04} \]\[ 79725.6 = W \times \frac{1 - (1.04)^{-20}}{0.04} \]\[ 79725.6 \times 0.04 = W \times \frac{1 - 0.457976}{0.04} \]\[ 79725.6 \times 0.04 = W \times \frac{0.542024}{0.04} \]\[ 3190.024 = W \times 13.5506 \]\[ W \approx \frac{3190.024}{13.5506} \]\[ W \approx 235.29 \][/tex]
So, the amount of each withdrawal will be approximately $235.29.
Novak Corp. reported net income of $1.20 million in 2022. Depreciation for the year was $192,000, accounts receivable decreased $420,000, and accounts payable decreased $336,000. Compute net cash provided by operating activities using the indirect approach. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
$1,476,000
Explanation:
According to the scenario, computation of the given data are as follows:-
Statement of The Cash Flow 31 December,2022
Particular Amount Total Amount
Net Income $1,200,000
Depreciation $192,000
Accounts receivable Decrease $420,000
Accounts payable Decrease ($336,000)
$276,000
Net cash provided by operating activities $1,476,000
A firm commitment arrangement with an investment banker occurs when the: issue is solidly accepted in the market as evidenced by a large price increase. investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them. spread between the buying and selling price is less than one percent. investment banker sells as much of the security as the market can bear without a price decrease. syndicate is in place to handle the issue.
Answer:
A firm commitment arrangement with an investment banker occurs when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.
The correct option is B.
Explanation:
A firm commitment arrangement happens when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.
However, the issuer receives a little less money than the offering price but he gets a specific amount for all the security being issued. The risk rests completely on the investment banker.
Therefore, the correct option is B.
Suppose Felix and Janet are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Felix chooses Right and Janet chooses Right, Felix will receive a payoff of 7 and Janet will receive a payoff of 4.
JanetLeft RightFelix Left 2, 3 2, 4Right 3, 7 4, 6The only dominant strategy in this game is for _______ (janet, felix) to choose _____ (left, right)The outcome reflecting the unique Nash equilibrium in this game is as follows: Felix chooses ______ (left, right) and Janet chooses (left, right) .
Answer:
a) Felix to choose right
b) (3,7)
Explanation:
As per the data given in the question,
a) Dominant strategy is that strategy in which a player chooses strategy irrespective of the strategy which other player has already chosen.
The dominant strategy for Felix is to choose right.
b)
The outcome matching the unique Nash equilibrium in this game is :
Nash equilibrium is that in which both players will chose after keeping in mind the other players' strategy.
Here equilibrium is :
Janet chooses left(while Felix chooses right) and Felix chooses right (while Janet chooses left). the Dominant set of strategy will be (3,7).
Exercise 10-3 Sell or process further LO P2 Cobe Company has already manufactured 28,000 units of Product A at a cost of $28 per unit. The 28,000 units can be sold at this stage for $700,000. Alternatively, the units can be further processed at a $420,000 total additional cost and be converted into 5,600 units of Product B and 11,200 units of Product C. Per unit selling price for Product B is $105 and for Product C is $70. 1. Prepare an analysis that shows whether the 28,000 units of Product A should be processed further or not?
Answer:
The company should process the units further.
Explanation:
Base on the scenario been described in the question, we can be able to use the method to prepare an analysis that shows whether the 28,000 units of Product A should be processed further or not.
Sell as is Process
further
Sale as is (28,000 units x $25.00) $700,000
Process further (5,600 units x $105) + (11,200 x $70) $1,372,000
Cost to process further (420,000)
Incremental income (loss) $700,000 $952,000
The company should process the units further
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30. 5 Returned goods costing $1,100 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full. Required: Prepare journal entries to record the transactions, assuming Ace records discounts using the gross method in a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
To record the transactions, you need to debit or credit certain accounts depending on the nature of the transaction and the terms of the sale.
Explanation:The journal entries to record the transactions in a perpetual inventory system are as follows:
June 3:
Debit Inventory $4,100Credit Accounts Payable $4,100June 5:
Debit Accounts Payable $1,100Credit Inventory $1,100June 6:
Debit Inventory $1,000Credit Accounts Payable $1,000June 11:
Debit Accounts Payable $3,960 ($4,000 - $40 discount)Credit Cash $3,960June 22:
Debit Accounts Payable $980 ($1,000 - $20 discount)Credit Cash $980Learn more about journal entries here:https://brainly.com/question/33762471
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Which of the following statements about Treasury bonds is the most accurate? Treasury bonds are completely riskless. Treasury bonds have a very small amount of default risk, so they are not completely riskless. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise. Based on the information given in the following statement, answer the questions that follow: In July 2009, Walmart sold 100 billion yen of five-year samurai bonds. Lead managers in the deal were Mizuho Securities, BNP Paribas, and Mitsubishi UFJ Securities. Who is the issuer of the bonds? Walmart BNP Paribas Mitsubishi UFJ Securities What type of bonds are these? Municipal bonds Corporate bonds Government bonds
Answer: 1. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
2. Walmart
3. Corporate bonds
Explanation:
1. Indeed even though Treasury bonds have a very low risk rating, they are not completely risk-less. They have a very low risk rating because they will always be honoured (US T - bonds that is) and so that eliminates the default risk. However, they are still exposed to maturity risk as well as inflation risk for the most part. This means that as interest rates rise therefore, their prices drop making them just a little but risky.
2. Walmart issued the bonds making them the issuer. The rest of the names are Underwriters.
3. Since the bonds were issued by a Corporation being Walmart, the bonds are Corporate Bonds.
ou are tasked with estimating the costs of a project. Select a project you are familiar with and give a concise summary of that project (no more than a paragraph). Then explain how you went about estimating the costs for each part of the project. Explain specifically what methods you used and why you used those methods. Then explain if your estimates were correct or off. Explain why you think the results ended up the way they did.
Answer:
Cost Estimation is the usage of venture quotes of a restricted degree. This is a significant component of undertaking cost the executives as a feature of the information that incorporates arranging, observing and overseeing venture money costs. A surmised cost of an undertaking, called a quote, is utilized to approve a venture's financial plan and deal with its expenses.
Proficient appraisers utilize characterized procedures to produce quotes that are utilized to assess the money related practicality of a task, to decide subsidizing for venture costs, and to follow venture costs. Quotes are significant in concluding whether to attempt an undertaking, to decide the venture's potential degree, and to guarantee that the task remains monetarily practical and maintains a strategic distance from over-use.
Quotes are typically reconsidered and refreshed as undertaking extension becomes clearer and when task dangers are acknowledged - as the Project Management Committee notes, cost estimation is a procedure. The equivalent. Quotes can likewise be utilized to structure the premise of an undertaking as a state of examination for surveying the real viability of a task.
Key parts of cost estimation
Cost Estimation is the total of the expenses related with effectively finishing a venture through and through. The expenses of these activities can be partitioned in a few different ways and levels of detail, however the least complex grouping isolates costs into two fundamental classes: direct expenses and backhanded expenses.
Direct expenses are grouped into classifications that are legitimately identified with a territory. In venture the board, direct expenses are the costs that are charged for a specific undertaking. These can incorporate task group pay rates, asset costs for the creation of physical items, fuel for gear, and spending plans for tending to explicit venture dangers.
Then again, circuitous expenses can't be connected to explicit cost places, and rather are made by a few undertakings at the same time, some of the time in various sums. In venture the board, quality control, well-being expenses and utilities are commonly delegated circuitous expenses since they are dispersed over various undertakings and can't be paid legitimately to a task.
The Western Jeans Company purchases denim from Cumberland Textile Mills. The Western Jeans Company uses 35,000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is $500 per order. It costs Western $.35 per yard annually to hold a yard of denim in inventory. Determine the optimal number of yards of denim the Western Jeans Company should order, the minimum total annual inventory cost, the optimal number of orders per year, and the optimal time between orders.
Answer and Explanation:
a. The computation of the economic order quantity is shown below:
[tex]= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
[tex]= \sqrt{\frac{2\times \text{35,000}\times \text{\$500}}{\text{\$0.35}}}[/tex]
= 10,000 yards
b.. The total cost of ordering cost and carrying cost equals to
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 35,000 ÷ 10,000 × $500 + 10,000 ÷ 2 × $0.35
= $1,750 + $1,750
= $3,500
c. Optimal No. of Orders is
= Annual Demand ÷Order Quantity
= 35,000 ÷ 10,000
= 3.5
Time between two orders is
= No. of Working Days ÷ No. of orders
= 365 ÷ 3.5
= 104 days
We assume there is a 365 days in a year and we applied the above formulas
Final answer:
The Western Jeans Company should order 10,000 yards of denim at a time, which results in 4 orders per year and an inventory reorder every approximately 91 days. The Minimum Total Annual Inventory Cost will be $3750.
Explanation:
Optimal Order Quantity and Inventory Management
The Western Jeans Company needs to determine the optimal order quantity of denim that minimizes total annual inventory costs, which include both ordering and holding costs. The formula for calculating the Economic Order Quantity (EOQ) is given by:
EOQ = √(2DS)/H)
, where:
D is the annual demand
S is the cost per order
H is the holding cost per unit per year
Given that the annual demand (D) is 35,000 yards, ordering cost (S) is $500, and holding cost (H) is $0.35 per yard, we can compute the EOQ as follows:
EOQ = √((2 * 35000 * 500) / 0.35) = √(35,000,000 / 0.35) = √(100,000,000) = 10,000 yards.
The optimal number of orders per year is then D/EOQ, which is 35,000/10,000 = 3.5 orders per year. Since we can't have a fraction of an order, we round it to 4 orders per year. The optimal time between orders is the number of working days in a year divided by the number of orders, which we can approximate to 365/4, resulting in about 91.25 days between orders.
The minimum total annual inventory cost can be found by adding the total ordering costs and total holding costs. Total ordering costs are the number of orders multiplied by the cost per order, which is 4 * $500 = $2000. Total holding costs are EOQ/2 * H, which is 10,000/2 * 0.35 = $1750.
Minimum Total Annual Inventory Cost = Total Ordering Costs + Total Holding Costs = $2000 + $1750 = $3750.
Thus, the Western Jeans Company should order 10,000 yards of denim at a time, place 4 orders per year, and reorder every approximately 91 days to achieve the minimum total annual inventory cost of $3750.
3. (1 point) Suppose a firm faces potential demand from two customer bases, H and L, with high and low valuation of the firm’s product, respectively. If the product has network externalities and all type H customers are currently purchasing the product, then the price that can be charged to L consumers ________. a. increases with the number of H consumers b. decreases with the number of H consumers c. is independent of the number of H consumers d. cannot be determined because the price charged to H is not known
Answer: A. increases with the number of H consumers.
Explanation: If all type H customers are currently purchasing the product, it means that its customer base is large and significant enough and as such the firm would prefer to sell all of its product to H, and also do to the fact that there is only so much supply that a firm can provide. But, fewer quantities of goods would remain for L if more and more goods are sold to H. Due to this lower quantity supplied to the L customer base, it then means that the firm can set the price higher for L. This is because at a higher price, quantity demanded reduces (which is expected for L) and it can therefore maintain supply to H which has more customers.
Purchases Budget Rest Inn provides four-star accommodations for the vacation traveler. It is located just off a major interstate freeway. There are three other competing motels at the same exit. Hotel management is preparing its budget for the busiest three-month period of the year, June through August. To differentiate themselves from the competition, Rest Inn provides a complimentary spa package for each guest stay that includes specialty shampoo, conditioner, soap, lotion, toothpaste, lavender essential oil, slippers, earplugs, and a sleep mask. Rest Inn purchases the spa package from a local vendor that puts the Rest Inn private label on the products. The hotel follows a policy of purchasing enough spa packages to ensure that 40% of next month’s bookings are in the current month’s ending inventory. Rest Inn’s sales budget for guest stays for the next quarter is as follows:
June 2,300 guest stays
July 2,500 guest stays
August 2,100 guest stays
How many spa packages should Rest Inn budget for purchase in July?
Answer:
2,340
Explanation:
The computation of purchase to be made on July is shown below:-
Particulars June July August
Sales 2,300 2,500 2,100
Add: Closing Inventory 1,000 840
(40% of next month)
Less: Opening Inventory 1,000 840
(Closing of previous month)
Purchases to be made 3,300 2,340 1,260
Therefore the purchase to be made on July is 2,340
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years.
Required:
a)
What is the effective annual interest rate (EAR) you would get for your investment in the first 10
years?
b)
How much money do you have in your account today?
c)
If you wish to have $85000 now, how much should you have invested 15 years ago?
Answer:
Part A: 8.16%
Part B: $56,577.5
Part C: $39,700
Explanation:
Part A:
EAR = (1 + r / n )^ n - 1
Here
r is the nominal interest rate, which is 8%
n is the number of compounding periods in a year and here, for semiannual requirement it is 2.
So by putting values in the above equation, we have:
EAR = (1 + 8% /2) ^2 - 1
= 8.16 %
Part B:
Amount invested is $12500 which must be compounded for 10 years semi annually at the EAR. This means
The future value = Initial Investment + Interest Income for 10 year
Future Value after 10 years = $12500 + ( $12500 * 8.160%*10 years)
= $22,700
Similarly,
Amount invested for next 5 years is $42,700 ($22,700 and the additional $20,000 which was added to the account). This amount must be compounded for next 5 years at 6.5%. This means
Value Today = Initial Investment + Interest Income for 5 year
The Future Value = $42,700 + (42,700 * 6.5% * 5 years) = $56,577.5
Part C:
Let the initial amount that was deposited be "x".
As per the guidelines given in the question, for first 10 years the interest is EAR which is 8.16%.
Interest Earned = (x * 8.16% * 10 Years) = 0.816x
The same initial investment "x" would be investment for the next 5 years at 6.5% rate.
For next 5 years:
Interest Earned = (x * 6.5% * 5) = 0.325x
Future value of the investment at the end of the year 15 = $85,000
0.816x + 0.325x + x = $85,000
2.141x = $85,000
x = $85,000 / 2.141 = $39,700
The budget components for Park Company for the quarter ended June 30 appear below. Park sells trash cans for $12 each. Budgeted sales and production for the next three months are: Sales Production April 20,000 units 26,000 units May 50,000 units 46,000 units June 30,000 units 29,000 units Park desires to have trash cans on hand at the end of each month equal to 20 percent of the following month’s budgeted sales in units. On March 31, Park had 4,000 completed units on hand. Five pounds of plastic are required for each trash can. At the end of each month, Park desires to have 10 percent of the following month’s production material needs on hand. At March 31, Park had 13,000 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each trash can produced requires 0.10 hours of direct labor. Determine how much the materials purchases budget will be for the month ending April 30.
Answer:
$96,000
Explanation:
Production 26,000 units
Materials Purchase Budget
Production Materials Required (5×26,000 units) 130,000
Add Budgeted Closing Materials (50,000×20%×5) 50,000
Total Materials 180,000
Less Budgeted Opening Inventory (4,000×5) (20,000)
Budgeted Materials 160,000
Material Cost per pound $0.60
Total Material Cost $96,000
Therefore, the materials purchases budget will be for the month ending April 30 will be $96,000.
Answer:
This answer is incorrect.
A personal computer is used for office work at home, research, communication, personal finances, education, entertainment, social networking, and a myriad of other things. Suppose that the average number of hours a household personal computer is used is 4.4 hours per day, across the population of households in the United States. Assume the the population of household usage times is normally distributed and the standard deviation for the times is 2 hours.
You are told that a given household (Household A) from the population has the following two qualities
1. It uses its computer an above-average number of hours per day.
2. The probability of randomly drawing a household with a computer-usage at least as extreme (i.e., combining across extremely high and low usage rates) as Household A is 0.02.
What is the minimum number of hours per day that Household A must use its computer? Round your answer to the second decimal place. If you can't find the exact table entry you're looking for, use the table entry that's closest. If there's a tie, use the smaller of the two options.
**please explain each step to get the correct answer. Answer is 9.06
Answer:
Check the explanation
Explanation:
There are also many alternatives ways to solve this problem, but i think that you can understand the below concept which i have provided in the attached image.
Given that the probability of randomly drawing a household with a computer usage at least as extreme as Household A is 0.02, the minimum number of hours per day that Household A must use its computer is 9.06 hours.
Explanation:In this question, we're essentially being asked to find the Z score (the number of standard deviations from the mean) for a given probability. Here the average daily household use of a computer is given as 4.4 hours, and we're told the standard deviation (SD) is 2 hours.
We know from the information given that the household's usage is above average and their combined extreme usage rate, either high or low, is equivalent to a two-sided probability of 0.02. Since the distribution is normal, we find the corresponding Z score for one tail which equals to 0.02/2 = 0.01. Looking up in a standard Z score table, we find that the Z score corresponding to the 0.01 tail probability is about 2.33.
Now we can figure out the household's usage in comparison to the mean. Each Z score represents one SD from the mean. Using the formula X = μ + Zσ, X is the raw score we want to find, μ is the mean (4.4), Z is the Z score (2.33), and σ is the standard deviation (2). So, X = 4.4 + 2.33 * 2 = 9.06 (rounded to the second decimal place). So the household we're looking at must be using its computer at least 9.06 hours per day.
Learn more about Statistics here:https://brainly.com/question/31538429
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A loan of $32,000 is to be repaid by the sinking fund method with annual payments. Interest on the loan is paid at a 6% annual effective rate of interest, and the sinking fund earns 4% annual effective interest. The total annual payments will be level at $3,300 until a final smaller annual payment suffices to pay off the loan. Find the amount of the final sinking fund deposit.
Answer:
The answer is $677.43
Explanation:
The file attached is a word document that explains the problem in details. Thank you and i hope it helps you
Rachel's Designs has 1,800 shares of 6%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020. The company plans to pay total dividends of $18,000 in 2021. How much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders
Answer:
Preferred dividend in arrears = $10,800
Preferred dividend for 2021 = $5,400
Remaining dividends to common stockholders = 1,800
Explanation:
The computation of preferred stockholders and common stockholders is shown below:-
Preferred dividend in arrears for 2019 and 2020 $10,800
(1,800 × $50 × 6% × 2)
Preferred dividend for 2021 $5,400
(1,800 × $50 × 6%)
Remaining dividends to common stockholders 1,800
Total dividends $18,000
Therefore in every year Cumulative dividend will arise whether paid or not.
All dividend should be paid to preferred stock, if something is left will be paid to common stockholders.
There is a raging debate at the IT consulting firm where you work. Some staff members believe that it is harder for experienced analysts to learn object-modeling techniques, because the analysts are accustomed to thinking about data and processes as separate entities. Others believe that solid analytical skills are easily transferable and do not see a problem in crossing over to the newer approach. What do you think, and why?
Answer:
I think that solid analytical skills are easily transferable. So, there is no problem in crossing over to the newer approach.
Explanation:
An experienced analyst possesses core analytical skills such as researching, critical thinking, adaptability, eye for detail and strategy.
Now, the introduction of object modelling which differs from their current procedure will require a general orientation and if need be a thorough training on their part to get used to.
A skilled analysts, they can easily cross over to the new approach of object modeling which involves designing and developing object oriented software modeled from objects in the real world.
Final answer:
Experienced analysts can transition to object-modeling techniques by refining analytical skills and embracing new perspectives through continuous learning and adaptation in the technology and business sectors.
Explanation:
Object-modeling techniques can pose a challenge for experienced analysts who are used to separating data and processes, as this new approach requires a different mindset. However, solid analytical skills are indeed transferable, and individuals skilled in analysis can adapt to object-modeling techniques by honing their critical thinking abilities and by embracing the shift in perspective.
By learning new skills through observation, practice, and adaptation, workers in various industries can navigate changes in technology and management styles. It is crucial to continuously refine both job-specific and transferable skills to stay relevant and adaptable in the evolving landscape of technology and business.
With a required reserve ratio of 20%, explain in detail how an Open Market Purchase of $100,000 from an individual leads to an expansion in the money supply. I would like you to describe (at least) four different "rounds" in this process. By how much does the money supply increase during each round? What is the maximum the money supply can increase from this Open Market Purchase? What can lead to the actual increase being much lower than the above number?
Answer:
the answer is 500000
Explanation:
Solution
When bank gives out loan they don't reimburse them in cash rather they pit in amount into their demand deposit and deposit is also part of supply of money.
Normally, let's say bank give loan of 100000 to a first person.then bank will give the person 1 with the deposit demand in his account. based on requirements reserve ratio, the bank will keep 20% with them in cash and borrow the remaining 80000 to other person.
Again, the bank will deposit in person 2 or second person and lend 64000 o third person and keep 16000 as cash.
Importantly, in the explanation above when we say bank will deposit 80000 in persons account,its only refers to as book keeping, that is, it is written only in books and the account holder balance goes higher but the actual money stays with the bank.
Now,
Total amount of money supply bank can produce = the multiplier*high money powered =1/0.2*100000
=500000
Which of the following is true of investors using options to manage risk? A. Investors can hedge against a price decline by buying a call option. B. Investors can hedge against a price decline by buying a put option. C. Options suffer a loss if the value of the asset moves in the opposite direction of that being hedged against. D. Options are less expensive than other hedging devices.
A put option can be used to hedge against a price decline, and options can suffer losses if the value of the asset moves in the opposite direction of the hedged risk. Options can be more expensive than other hedging devices.
Explanation:Investors can hedge against a price decline by buying a put option, making statement B true.
A put option gives the holder the right, but not the obligation, to sell a specific quantity of an asset at a fixed price, known as the strike price, at anytime before the expiration date.
If the investor believes that the price of the asset will decline, buying a put option gives them the ability to sell the asset at the strike price, thus protecting them from potential losses.
Furthermore, statement C is true.
Options, including put options, do suffer a loss if the value of the asset moves in the opposite direction of that being hedged against.
However, the maximum loss for the holder of a put option is limited to the premium paid for the option.
Statement D, on the other hand, is false.
Options can be more expensive than other hedging devices, such as futures contracts or forward contracts, depending on various factors like the time to expiration, the volatility of the asset's price, and the strike price.
Consider the assembly line of a laptop computer. The line consists of 12 stations and operates at a cycle time of 1.50 minutes/unit. Their most error-prone operation is step 1. There is no inventory between the stations, because this is a machine-paced line. Final inspection happens at station 12. What would be the information turnaround time for a defect made at station 1
Answer :
Information turnaround time = 16.50 minutes
Explanation :
As per the data given in the question,
Cycle time of whole line = 1.50 minutes/unit
which means 1 unit is made in 1.50 minutes. In the line of 12 stations 1st step is the most error prone.
Error made at step 1 means that unit must be processed by 11 other stations in order to be made and inspected at 12th station.
The information turnaround time = cycle time × number of stations after error is made
=1.50 × 11
= 16.50 minutes
The information turnaround time for a defect made at station 1 on an assembly line with a cycle time of 1.50 minutes/unit and final inspection at station 12 would be 16.5 minutes.
The information turnaround time for a defect made at station 1 on an assembly line producing laptop computers with the cycle time of 1.50 minutes/unit would be the time taken for the product to reach the final inspection stage at station 12. Since it's stated that this is a machine-paced line with no inventory between stations, we can calculate the turnaround time by multiplying the cycle time with the number of stations up to the inspection point. With 12 stations, including the station where the defect occurs and the final inspection station, the calculation would be:
Turnaround time = Cycle time x (Number of stations from the defective station to the inspection station)Turnaround time = 1.50 minutes/unit x (12 - 1)Turnaround time = 1.50 minutes/unit x 11Turnaround time = 16.5 minutesTherefore, the information turnaround time for a defect produced at station 1 and detected at station 12 would be 16.5 minutes.