Answer:
1. a. b. and d.
2. a and c
Explanation:
Stabilizers can aggressively change fluctuations in the business cycle if they are not based on actual facts.
Automatic stabilizers are so called because they act to stabilize economic cycles and are automatically triggered without additional government action.
Which of the following statements about the advertising-to-sales ratio approach to budgeting for marketing communications is TRUEa. It is reliable because it does not vary dramatically across product categories. b. It can be calculated easily without having to analyze customers, competitors, and other contextual factors. c. It is easy to use because revenue projections can be made without considering marketing support. d. It relies on projections of revenue and expenses. e. All of the answers are correct
Answer:
The correct answer is letter "D": It relies on projections of revenue and expenses.
Explanation:
The advertising-to-sales ratio is a numeric value indicating how good the publishing strategies of a firm are. According to this approach, having a low ratio is considered optimal because it implies the advertisement helped increase the number of sales exponentially compared to the investment made. In other words, the ratio measures if the publication was successful in terms of revenues over expenses.
The correct statement that is made about the advertising-to-sales ratio approach is that It relies on projections of revenue and expenses.
What is the advertising-to-sales ratio approach?This is done in order to show if the resources that a firm uses for its advertising has helped them have more sales and the extent to which the sales have been generated.
To get this, the cost of advertising has to be divided by the sales revenue.
Read more on advertising here:
https://brainly.com/question/1658517
Howard Cooper, the president of Glacier Computer Services, needs your help. He wonders about the potential effects on the firm’s net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal year 2019: Standard rate and variable costs Service rate per hour $ 60.00 Labor cost 32.00 Overhead cost 5.76 Selling, general, and administrative cost 3.44 Expected fixed costs Facility maintenance $ 320,000 Selling, general, and administrative 120,000 Required Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in 2019. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant’s analysis, if Glacier charges customers $56 per hour, the firm can achieve 38,000 hours of services. Prepare a flexible budget using the consultant’s assumption. The same consultant also suggests that if the firm raises its rate to $64 per hour, the number of service hours will decline to 25,000. Prepare a flexible budget using the new assumption.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Final answer:
A pro forma income statement and two flexible budgets were prepared for Glacier Computer Services based on different service rates and expected service hours. The highest net income is achieved at a rate of $64 per hour with 25,000 service hours. Lowering the rate to $56 per hour for 38,000 service hours results in a lower net income.
Explanation:
Howard Cooper, president of Glacier Computer Services, wishes to understand how fluctuations in the service rate might affect the company’s net income. We need to prepare pro forma and flexible budgets based on differing service rates and projected service hours. To begin, we will create a master budget's pro forma income statement for the initial expectation of 30,000 service hours at a $60.00 rate per hour.
Master Budget (Initial):
Revenue: $60.00/hour × 30,000 hours = $1,800,000
Variable Costs (Labor + Overhead + SG&A): ($32.00 + $5.76 + $3.44)/hour × 30,000 hours = $1,236,000
Fixed Costs (Facility + SG&A): $320,000 + $120,000 = $440,000
Net Income: Revenue – Variable Costs – Fixed Costs = $1,800,000 – $1,236,000 – $440,000 = $124,000
Next, we'll prepare flexible budgets considering the consultant’s suggestions:
Flexible Budget (Service Rate $56/hour, 38,000 hours):
Revenue: $56.00 × 38,000 = $2,128,000
Variable Costs: ($32.00 + $5.76 + $3.44) × 38,000 = $1,578,880
Net Income: $2,128,000 – $1,578,880 – $440,000 = $109,120
Flexible Budget (Service Rate $64/hour, 25,000 hours):
Revenue: $64.00 × 25,000 = $1,600,000
Variable Costs: ($32.00 + $5.76 + $3.44) × 25,000 = $1,030,000
Net Income: $1,600,000 – $1,030,000 – $440,000 = $130,000
Comparing the net incomes of all budgets, raising the price to $64/hour for fewer hours results in a higher net income compared to the original master budget, while reducing the price to $56/hour leads to a decrease in net income despite more service hours.
Planning for acquisition support activities and requirements that deal with fielding/deployment should begin as early as the: [Identify life cycle product support activities and requirements that deal with fielding/deployment (e.g., planning, coordination, organizing deployment teams, materiel release).]
A. Materiel Solution Analysis Phase
B. Engineering and Manufacturing Development Phase
C. Operations and Support Phase
D. Production and Deployment Phase
Option A, Materiel Solution Analysis Phase
Explanation:
The equipment answer Analysis part assesses potential solutions for a required capability in associate Initial Capabilities Document (ICD) and to satisfy the phase-specific Entrance Criteria for ensuing program milestone selected by the Milestone call Authority.
The MSA phase is critical to program fulfilment and attaining materiel readiness because it’s the first possibility to persuade systems sup-portability and affordability by using balancing technology opportunities with operational and sustainment requirements. During this phase, various options are analysed to select the materiel solution and broaden the Technology Development Strategy (TDS) to fill any era gaps.
Laurel, Inc., has debt outstanding with a coupon rate of 5.9 % and a yield to maturity of 7.1 %. Its tax rate is 40 %. What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest tax shield.
Answer:
4.26%
Explanation:
The computation of the Laurel's effective (after-tax) cost of debt is shown below:
= Cost of debt × (1 - tax rate)
= 7.1% × (1 - 0.40)
= 4.26%
The cost of debt is also known as the yield to maturity.
For computing it, we deduct the tax rate from the cost of debt so that the accurate rate can come
All other information which is given is not relevant. Hence, ignored it
Which of the following about economic growth is true? a - The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more) are mostly less developed countries. b - The fastest growing economies in the world are mostly high-income industrial countries. C - The slowest growing countries in the world, many of which are experiencing declines in per capita GDP, are less developed countries. d-Both a and c are true,
Answer:
d-Both a and c are true
Explanation:
Less developed countries in the world show both diverting behaviors. The fastest-growing economies in the world (above annual growth of 3.5%) are mostly less developed countries as China, India, and Panama. It is also true C, where the slowest growing economies in the world experiencing declines in per capita GDP are less developed countries too, like Venezuela and Siria
Options a and c are true, indicating that the fastest growing economies are mostly less developed countries, while many of the slowest growing ones with declines in per capita GDP are high-income nations.
Explanation:The correct answer to the question about economic growth is d-Both a and c are true. From the information provided, it is clear that the fastest growing economies are mostly less developed countries, as shown by the inclusion of countries with high growth rates in the 'fast growth club'. Examples include China and India, which have been experiencing growth rates significantly above the world average, particularly higher than those seen in high-income Western nations.
On the other hand, several high-income nations fall into the 'slow growth club', which means their economies are growing at a slower pace, sometimes only 2% per year or less. This includes advanced economies like the United States, France, Germany, Italy, and Japan. Therefore, while less developed countries are experiencing rapid economic growth, leading to a potential convergence with high-income countries, many high-income nations are experiencing slower economic growth rates.
What are the roles of actual returns and expected returns in investment planning?
Answer:Actual returns is the actual gain or loss an investor gets on an investment while Expected return is the return an investor is expected to get on an investment which can be positive or negative.
Explanation: Actual returns is the return an investor actually receives on his investment which can affects its net worth positively or negatively. It can be referred to as the internal rate of return on an investment.
Expected return is also known as anticipated rate of return. It is not certain but it is an expectation. It can be calculated as the expected value of an investment. It is used to calculate the viability of an investment. It is historical in nature and therefore it does not have a guaranteed outcome.
On January 1, Whispering Winds Corp. had 62,600 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
Apr. 1 Issued 16,650 additional shares of common stock for $13 per share.
June 15 Declared a cash dividend of $1.55 per share to stockholders of record on June 30.
July 10 Paid the $1.55 cash dividend.
Dec. 1 Issued 7,400 additional shares of common stock for $11 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $1.65 per share to stockholders of record on December 31.
Required:
Prepare the entries, if any, on each of the three dates that involved dividends.
Answer:
Explanation:
The journal entries are shown below:
1. Cash Dividend A/c Dr $122,838 (62,600 + 16,650) × $1.55
To Dividend payable A/c $122,838
(Being the dividend is declared)
2. Dividend payable A/c $122,838
To Cash A/c $122,838
(Being the dividend is paid)
3. Cash Dividend A/c Dr $142,97 (62,600 + 16,650 + 7,400) × $1.65
To Dividend payable A/c $142,973
(Bring dividend is recorded)
Quasi Contract Middleton Motors, Inc.. a struggling Ford dealership in Madison, Wisconsin. sought managerial andfinancial assistance from Lindquist Ford, Inc. a successful Ford dealership in Bettendorf, Iowa. While the two dealershipsnegotiated the terms for the services and a cash infusion, Lindquist sent Craig Miller, its general manager. to assumecontrol of Middleton. After about a year. the parties had not agreed on the terms, Lindquist had not invested any money.Middleton had not made a profit. and Miller was fired without being paid. Lindquist and Miller filed a suit in a federaldistrict court against Middleton based on quasi contract, seeking to recover Miller’s pay for his time. What are therequirements to recover on a theory of quasi-contract? Which of these requirements is most likely to be disputed in thiscase? Why? [Lindquist Ford, Inc. v, Middleton Motors. Inc, 557 F.3d 469 (7th Cir. 2009)]
Answer:
Quasi Contract:
In the case of Lindquist Ford, Inc. v. Middleton Motors, Inc., 557 F.3d 469 (7th Cir. 2009) the trial court settled money damages to Lindquist. The Court of Appeals reversed the result that the trial court had mismanaged the mutual law theories of quantum meruit and unjust augmentation and imprisoned for a new trial. The trial court settled damages to Lindquist and Miller for Miller's salary.
Explanation:
The necessities to improve on the quasi-contract theory are as follows:
The party looking for damages discussed a benefit on the other party. That party also discussed the benefit with the sensible expectation of being paid. The party was not performing as a volunteer in providing this benefit. The party getting the benefit would be irrationally enriched if permitted to retain the benefit without disbursing for it.All of these necessities must be encountered in order for a quasi-contract judgment to be awarded.
The necessities under unjust improvement are as follows:
A benefit discussed upon the perpetrator by the plaintiff. Appreciation by the respondent of the fact of such benefit. Acceptance and retention by the respondent of the benefit, under conditions such that it would be discriminatory to retain the advantage without payment of the worth thereof.Lindquist met the essentials required for unjust enhancement and the court fund in their favor.
The necessities under quantum merit are as follows:
The complainant must prove that the respondent requested the plaintiff's services. It was reasonable for the applicant to expect reimbursement for the services. Lindquist met the elements compulsory for quantum meruit and the court found in their favor.The condition most likely to be doubtful in this case is whether or not the party seeking compensations actually discussed a benefit upon the other party, or whether Lindquist essentially conferred a benefit upon Middleton through the management of Miller. The court resolute through indication presented that Lindquist and Miller had a reasonable anticipation to payment for services rendered and that Middleton received a benefit from Miller's services
Final answer:
In Lindquist Ford, Inc. v. Middleton Motors, Inc., the court would need to determine if the requirements for a quasi-contract have been met, especially whether it is inequitable for Middleton to retain management benefits without payment.
Explanation:
In the case of Lindquist Ford, Inc. v. Middleton Motors, Inc., the concept of a quasi-contract is discussed. A quasi-contract, also known as an implied-in-law contract, is designed to prevent unjust enrichment. It is not a true contract, but rather a legal substitute formed to impose equity between two parties.
To recover on a theory of quasi-contract, certain requirements must be met: (1) a benefit conferred upon the defendant by the plaintiff, (2) the defendant's appreciation or knowledge of the benefit, and (3) the defendant's acceptance or retention of the benefit under circumstances making it inequitable for them to retain the benefit without paying for it.
In the situation with Lindquist and Middleton, the most disputed requirement is likely to be whether it is inequitable for Middleton to retain the benefit of Miller's management without paying. Since the parties did not finalize an agreement and Miller was fired without being paid, determining the equity of the situation could be challenging.
Suppose the reserve requirement is currently 20%. Instructions: Enter your answers as a whole number.
a. Assume Second Bank has deposits of $300 million. Calculate the required reserves for Second Bank. $ million.
b. At the end of the day, Second Bank has $65 million of reserves. Will Second Bank be a borrower or lender in the federal funds market
Answer:
Consider the following calculations
Explanation:
a,) required reserves = (20/100) x $300 million = $60 million
b.) Since second bank has reserve of $65 million but needed only $60 million so the bank can LEND reserves of $5 million in the federal funds market.
Highland Industries makes custom yachts using a job cost accounting system. In anticipation of a busy year for 2019, Highland’s accountant estimated the following overhead costs for 2019: Machinery maintenance $181,350 Utilities $226,380 Supervision $191,000 Materials handling cost $67,000 Building occupancy costs $98,270 Indirect materials $31,650 In the past, Highland has used direct labor hours to allocate overhead to the various yacht building jobs and they anticipate using the same for 2019. Highland anticipates using a total of 72,000 direct labor hours in 2019. At the beginning of 2019, Highland had no yachts in process or finished but did have $202,000 in raw materials left over from 2018. During 2019, Highland began work on 3 yachts (A, B, C). They also purchased and paid for $2,355,000 in raw materials. The predetermined overhead rate using direct labor hours for 2019 would be:
Answer:
predetermined overhead per direct labor hour: $11.02
Explanation:
[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]
To solve for overhead rate we determinate the expected cost and distribute them over a cost driver which is, in this case; direct labor hours
Expected overhead cost:
Machinery maintenance $ 181,350
Utilities $ 226,380
Supervision $ 191,000
Materials handling cost $ 67,000
Building occupancy costs $ 98,270
Indirect materials $ 31,650
Total overhead: $ 795,650
Total direct labor: 72,000
Overhead rate: 795,650 / 72,000 = 11.0206944= $11.02
nformation concerning Johnston Co.'s direct materials costs is as follows: Standard price per pound $ 6.45 Actual quantity purchased 2,850 pounds Actual quantity used in production 2,750 pounds Units of product manufactured 700 Materials purchase-price variance–favorable $ 855 Budget data for the period: Units to manufacture 1,000 Units of direct materials 4,000 pounds The direct materials usage variance for the period, rounded to two decimal places, is:a. $713. b. $713. c. $6.50 d. $6.12 e. $6.75 f. $615 g. $6.15
Answer:
f. $615
Explanation:
The standard cost for 2,850 pounds is $18,328.5 (=$6.45 * 2,850)
Materials purchase-price variance–favourable $855; it means standard price is higher and actual material price. Then we have actual cost for purchased 2,850 pounds is $17,527.5 (=$18,328.5-$855)
Then the actual price per pound $6.15 (=$17,527.5/2,850)
The difference between purchased and actual quantity used is 100 pounds (= 2,850 pounds - 2,750 pounds)
The direct materials usage variance for the period is $650 (= $6.15 * 100 pounds)
Your college is considering renting space in the student union to one or two commercial textbook stores. The rent the college can charge per square foot of space depends on the profit (before rent) of the firms and hence on whether there is a monopoly or a duopoly. Which number of stores is better for the college in terms of rent? Which is better for students? Why?
Answer and explanation:
In both cases, in terms of rent and terms of students benefits, it will be better for the college to have two stores, In that way, the college makes sure the profits will be higher than just by having one store on campus and students are benefited because of the variety of books they could find in the two stores, not just in one.
IE 3-5 ... Interactive Exercises – If an Equilibrium Price of $2.00 results in the longer run from a right shifting of both Supply and Demand behaviors, then Employment in the Mini-economy will be __________ and Quantity of Goods Produced will be _________ ..
Answer:
132 people.
3100 units
Explanation:
Generally, a change in the equilibrium price of goods and services tends to affect the behaviors of demand and supply. For the system above, we have:
IE 3-5 ... Interactive Exercises – If an Equilibrium Price of $2.00 results in the longer run from a right shifting of both Supply and Demand behaviors, then Employment in the Mini-economy will be __132__people______ and Quantity of Goods Produced will be ___3100__units____ .
At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries. When the price rises to $7.50, Duracell sells 12,000 packs of batteries and Energizer sells 16,000 packs of batteries. What is the market supply at $7.50? Question 11 options: A.12,000 B. 16,000 C. 4,000 D. 28,000 E. 25,000
Answer:
D.28000
Explanation:
Lets first understand what market supply is? Market supply is the accumulation/aggregation of total supply made by individual suppliers/vendors who are willing to provide at the current/prevailing prices. The market supply basically reflects the willingness of the vendors to supply goods/services at a given rate. Market supply can be either expressed in monetary terms or in terms of quantity.
So the market supply at $7.50 is as follows:
Market supply @ $7.50 = 12000 + 16000
Market supply @ $7.50 = 28000
It can be generally agreed that an increase in price can lead to an increase in supply by vendors, owing to the fact that the suppliers find a greater margin for themselves. Now in this question, we can see that at the price of $5 per pack of battery Duracell and Energizer sell 10000 and 15000 packs respectively and when the price rises to $7.50 both Duracells and Energizer sell more than what they were selling at $5 per pack.
The market supply of batteries at $7.50 is the sum of the quantities supplied by Duracell and Energizer, which is 28,000 packs.
The market supply at the price of $7.50 is the total quantity of battery packs supplied by both Duracell and Energizer at that price point. Duracell sells 12,000 packs and Energizer sells 16,000 packs when the price is $7.50. To find the market supply, we simply add these two quantities together: 12,000 packs (from Duracell) + 16,000 packs (from Energizer) = 28,000 packs. Therefore, the market supply at $7.50 is 28,000 packs of batteries.
Over the past few years, airlines have tended to compete in the market for intercontinental business class travelers on the basis of:_________
A) price.
B) cost.
C) timeliness of their flight schedules.
D) amenities
Answer:
(D) Amenities
Explanation:
Airlines business is very competitive and capital-intensive. Because of its capital-intensive nature, fixed costs and barriers to exit are high. And the way of competing in the market for intercontinental business class travelers is on the basis of amenities.
An insured dies within the time limit of an Increasing Term Rider and the beneficiary receives the face amount plus the value of all paid premiums. Which rider is attached to the policy?(A) Return of cash flow(B) Return of premium(C) Waiver of premium(D) Not allowed, insurers do not return premiums in this manner.
Answer:
The correct answer is B
Explanation:
Return of premium rider is the kind of policy where the add on that returns, the premiums paid if the insured person or outlives the terms and the conditions of the policy.
So, in this case, Insured person dies within the time period, and the beneficiary received the face amount and in addition all the premiums paid. It is the return of premium which is linked with the policy.
Consider the short run and the long run time frames used in macroeconomics. The definition of the short run is Select one: a. The time period when supply of money is fixed b. The time period when the labor force participation rate is fixed c. The time period before the economy has fully adjusted to an unexpected change in aggregate demand d. The time period when inflation is positive
Answer:
The time period before the economy has fully adjusted to an unexpected change in aggregate demand
Explanation:
The time period before the economy has fully adjusted to an unexpected change in aggregate demand.
In the long run, all inputs become variable and thus capital and investment can be added to the production functions to adjust for increased demand. However, in the short run only labor is a variable factor and thus for an increase in aggregate demand there is a time lag and other factors cannot adjust to account for increased demand. In the long run, these factors adjust and form a long run equilibrium when the lag is settled.
Hope that helps.
As of December 31, 2016, Nala Incorporated reported accounts receivable for $275,000 less allowance for doubtful accounts of $27,000 on their balance sheet. During 2017, Nala Incorporated had the following transactions related to their receivables balance:
(1) Sales on account $180,000
(2) Collections of accounts receivable 125,000
(3) Sales returns 20,000
(4) Write-offs of accounts receivable deemed uncollectible 35,000
(5) Recovery of bad debts previously written off 2,500
(a) Prepare the journal entries for each of these five transactions
(b) Prepare the journal entry to record bad debt expense for 2017, assuming that the aging of accounts receivable indicates that estimated bad debts are 10% of accounts receivable.
Answer:
a. 1. Debit Accounts receivable $180,000
Credit Sales $180,000
2. Debit cash $125,000
Credit Accounts receivable $125,000
3. Debit Sales return $20,000
Credit $20,000
4. Debit Provision for bad debts expense $35,000
Credit Accounts receivable $35,000
5. Debit Accounts receivable $ $2,500
Credit Provision for bad debts expense $2,500
Debit Cash $2,500
Credit Accounts receivable $2,500
B. Debit Bad debts expense $27,500
Credit provision for bad debt expense $27,500
Explanation:
1. Sale on account will increase the accounts receivable. So we have to debit accounts receivable and credit to sales in the amount of $180,000
2. Collections will decrease the accounts receivable due payments made by the customer. So we have to debit cash and credit accounts receivable by $125,000
3. Sales return is a contra asset account that will decrease the accounts receivable and also the net sales. So we will debit sales return and credit accounts receivable in the amount of $20,000
4. Write offs will decrease the provision for bad debts account as well as the accounts receivable accounts by $35,000
5. Recovery of bad debts previously written off has no effect in accounts receivable but will increase the provision for bad debts due to reversal of entry previously made. First, we will reverse the original written off entry. Debit Accounts receivable and credit provision for bad debts expense in the amount of $2,500. Then we will record the collection by debiting cash and crediting accounts receivable in the amount of $2,500
B. Let’s determine the balance of accounts receivable first,
Beg. $275,000 + 180,000 sale on account - 125,000 collection - 20,000 sales return - 35,000 write-off = $275,000
Therefore, $275,000 x 10% = $27,500
Entry:
Debit Bad debts expense $27,500
Credit provision for bad debts expense $27,500
Suppose Autodesk stock has a beta of 2.20, whereas Costco stock has a beta of 0.68. If the risk-free interest rate is 6 % and the expected return of the market portfolio is 14.0 %, what is the expected return of a portfolio that consists of 70 % Autodesk stock and 30 % Costco stock, according to the CAPM?
Answer:
19.952%
Explanation:
For computing the expected rate of return, first we have to determine the beta which is shown below:
= Stock Auto desk weightage × stock Auto desk beta + Stock Costco weightage × stock Costco beta
= 0.70 × 2.20+ 0.30 × 0.68
= 1.54 + 0.204
= 1.744
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6% + 1.744 × (14% - 6%)
= 6% + 1.744 × 8%
= 6% + 13.952%
= 19.952%
Final answer:
The expected return of a portfolio consisting of 70% Autodesk stock and 30% Costco stock, calculated using the CAPM model, is 19.172%.
Explanation:
The question involves calculating the expected return of a portfolio using the Capital Asset Pricing Model (CAPM). CAPM formula is given by E(Ri) = Rƒ + β(E(Rm) – Rƒ), where E(Ri) is the expected return of investment i, Rƒ is the risk-free rate, β is the beta of the investment, and E(Rm) is the expected return of the market. Given that the risk-free rate is 6%, the expected return of the market is 14%, Autodesk stock has a beta of 2.20, Costco stock has a beta of 0.68, and the portfolio consists of 70% Autodesk and 30% Costco, we calculate:
Expected return for Autodesk stock = 6% + 2.20(14% – 6%) = 23.6%
Expected return for Costco stock = 6% + 0.68(14% – 6%) = 11.44%
Expected return for the portfolio = 70% * 23.6% + 30% * 11.44% = 19.172%
Therefore, according to CAPM, the expected return of the portfolio is 19.172%.
Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Bit product manager wishes to achieve a product contribution margin of 35%. Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to?
Answer:
they need to limit the material and labor costs to $22.75
Explanation:
given data
combined promotion = $3 million
contribution margin ratio = 35%
Selling price = $35 per unit
to find out
what would they need to limit the material and labor costs to
solution
we get here Contribution margin per unit that is express as
Contribution margin per unit = $35 × 35%
Contribution margin per unit = $12.25 per unit
and Variable cost will be
Variable cost = $35 - $12.25
Variable cost = $22.75 per unit
and we know Variable cost is also express as
Variable cost = Direct materials costs + Direct labor costs + Direct factory overheads ..............1
here direct factory overheads is 0 and Direct materials costs + Direct labor costs is $22.75
so put in equation 1
Variable cost = $22.75 + 0 = $22.75
so we can say that they need to limit the material and labor costs to $22.75
Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $10,000 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $10,000 and $15,000.
(a) Suppose you bid $12,000. What is the probability that your bid will be accepted? If required, round your answer to two decimal places.
(b) Suppose you bid $14,000. What is the probability that your bid will be accepted? If required, round your answer to two decimal places.
(c) What amount should you bid to maximize the probability that you get the property?
Answer:
Explanation:
f(x) = (1/(15,000-10,000))/0 (elsewhere) = 1/5000
a. What is the probability that a $12,000 bid will be accepted?
P(10,000 < x < 12,000) = 2000(1/5000) = 0.40
b. What is the probability that a $14,000 bid will be accepted?
P(10,000 < x < 14,000) = 4000(1/5000) = 0.80
c. What amount should you bid to maximize the probability that you get the property?
$14,000 is my answer.
$14000 bid has a higher probability, hence a greater chance of being accepted
The probability that a $12,000 bid will be accepted is 40%, while a $14,000 bid has an 80% chance of being accepted. To maximize the probability of securing the property, one should bid just over $15,000.
Explanation:When considering the probability that a bid for a piece of land will be accepted, we assume the competitor's bid is uniformly distributed between $10,000 and $15,000. For the bid to be accepted, it must be higher than the competitor's bid, x.
(a)If you bid $12,000, the probability that this bid exceeds the competitor's bid is the portion of the uniform distribution from $10,000 to $12,000. Since the competitor's bids are uniformly distributed, it's a simple linear calculation: the probability is ($12,000 - $10,000) / ($15,000 - $10,000) = $2,000 / $5,000 = 0.4 or 40%.
(b) If you bid $14,000, we apply the same principle. The probability your bid will be accepted is ($14,000 - $10,000) / ($15,000 - $10,000) = $4,000 / $5,000 = 0.8 or 80%.
(c) To maximize the probability of getting the property, you should bid slightly more than the maximum of the competitor's bid range, which is slightly more than $15,000.
If there is a recessionary gap in the short run, the Federal Reserve can eliminate the gap in the short run by undertaking a policy action that raises aggregate demand. But, if Federal Reserve chooses not to close the gap in the short run, the economy will eventually get back to full employment in the long run. Because when there is a recessionary gap in the short run, then in the long run a new equilibrium will arise as input prices and expectations adjust downward, causing the aggregate supply to shift downward and to the right and pushing equilibrium real GDP back to its long-run potential value.
a. A monetary policy action that could eliminate a recessionary gap in the short run is an open market sale of government securities a decrease in the required reserve ratio a decrease in taxes .
b. If Fed implements the short run monetary policy option instead of simply waiting for the long -run adjustments to take place, then it
Answer:
D. harms the society by interfering with the economy's natural process.
Explanation:
In order to get out of recession, the fed should reduce the tax rates, which would in return lead to higher disposable income of the consumers, and then there will be an increase in the demand.
On the other hand the sale of bonds would even further increase the recession, as there will be more cash crunch in the economy. A decrease in reserve ratio will be a long time taking solution, so it would not provide an immediate solution.
MCQ
But, if the fed interferes with the short run equilibrium in the hope of giving short run benefits, it will hamper the economy's natural process to attain a new equilibrium as discussed in the paragraph above. Hence, option D is the correct answer
Option A and C are incorrect, because, employment is not much affected with lowering of income tax. On, the other hand, inflation levels rise, when there is a cut in income tax, as it gives more currency in the economy, hence even C is incorrect.
Describe two of the four approaches to ethical reasoning. Please include an example of each. Your example could be one that you observed or experienced during your life or an original idea.
Explanation:
1- Virtue Ethics: It can be described as an ethical approach that prioritizes the subjective and instinctive virtues shared by all human beings regardless of cultural traits. Emphasizes generosity, faithfulness, the sense of human generosity, character, and virtues coming from the mind.
An example of the ethical theory of virtue is an unknown person who needs some help and approaches another person who is readily available to help.
2- Duty-based ethics: It is ethics based on human rationality to exercise principles and ethical duty, regardless of positive or negative consequences for oneself.
An example of this ethical theory is entrepreneurs who use some strategies to achieve operational goals, but are aware that they must take responsibility not to exceed ethical values even if it is for the good of the business.
Electric, Inc. was incorporated on January 1, 2016. Electric issued 7 comma 000 shares of common stock and 1 comma 200 shares of preferred stock on that date. The preferred stock is cumulative, $ 100.00 par, with an 10% dividend rate. Electric has not paid any dividends yet. In 2019, Electric had its first profitable year, and on November 1, 2019, Electric declared a total dividend of $ 50 comma 000. What is the total amount that will be paid to preferred shareholders?
Answer:
$48,000
Explanation:
The computation of the total amount paid to the preferred shareholder is shown below:
= Number of preferred stock shares × par value × dividend rate × number of years
= 1,200 shares × $100 × 10% × 4 years
= $48,000
Simply we multiplied with the number of preferred stock with the par value, its dividend rate and the time period so that the correct value can come
All other information which is given is not relevant. Hence, ignored it
A partnership agreement provides that, at sale, cash proceeds are distributed first to Ms. Jones in an amount equal to her original investment less any cash distributions previously received, then split 60%-40% between Ms. Jones and Mr. Smith, respectively. Assume that the cash flows from sale are $1 million. How much would Ms. Jones receive if her initial investment was $600,000 and she previously received $100,000 in distributions
Answer:
$800,000
Explanation:
The total amount received by Ms. Jones (A) is given by the following expression:
[tex]A = I-D + (S-(I-D))*0.6[/tex]
Where 'I' is Ms. Jones initial investment, 'D' are cash distributions previously received and 'S' is the cash flow from sales.
The amount received by Ms. Jones is:
[tex]A = 600,000-100,000 + (1,000,000-(600,000-100,000))*0.6\\A= 800,000[/tex]
She would receive $800,000.
The Equal Employment Opportunity Act requires employers to classify their employees by gender and national origin. Which level of measurement is this? Select one:
a. Nominal
b. Ordinal
c. Interval
d. Ratio
The classification required by the Equal Employment Opportunity Act exemplifies the Nominal level of measurement. This is because these classifications simply provide labels for different categories without establishing an order or hierarchy among them.The correct option is A
Explanation:The classification of employees by gender and national origin as required by the Equal Employment Opportunity Act represents a Nominal level of measurement.
This is because the nominal level of measurement is characterized by data that can be categorized into groups with no order or priority. Here, categories such as 'gender' and 'national origin' are simply labels that distinguish groups without providing a hierarchy or quantifiable difference between these groups.
In the case of other options: Ordinal measurement involves categories with some order (like rankings); Interval measurement entails known and equal differences between values with no fixed zero point; and Ratio measurement has all characteristics of interval measurement but with a fixed zero point
Therefore, based on these definitions, we can ascertain that the level of measurement in this case is nominal.The Correct option is A.
Learn more about Level of Measurement here:https://brainly.com/question/33439799
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J. D. formed Clampett, Inc. as a C corporation (calendar tax year) with J. D., Granny, and Jethro, Inc. (a C corporation) as shareholders. On January 15, 2018, Jethro, Inc. sold all its shares to Jane Hathaway. On February 28, 2018, Clampett, Inc. filed an S corporation election, with J. D., Granny, and Jane all consenting to the election. What is the earliest effective date of the S election? A) January 1, 2018. B) January 1, 2019. C) January 1, 2020. D) February 28, 2019. E) Never.
Answer:
B) January 1, 2019
Explanation:
The earliest effective date of the S election after all the shareholders have consented to the election occurs on the first day of the first calendar year following the year that the corporation first had shareholders.
Many people have argued that the skills needed to be successful in today's workforce have changed. What skills do you feel an individual needs to be successful in a job today? Why do you feel these skills are most important?
Answer:
the skills of:
1) Basic Technology
2) Communication
3) Problem Solving
4) Collaboration
5) Adaptability
6) Multitasking
7) Social Media
Explanation:
Successful employees have common and detailed career goals and plans. Those who do not, however, prefer to flow in their work lives. The person with goals has a strong internal motivation. They are not discouraged when they fail. It is difficult to separate these people from their work and distract them. A person with goals is already motivated for development. Most importantly, an employee with clear goals often has a clearly defined career and development plan, and he already knows what tools, skills and qualifications will help him in that sequence. A person without goals is like a piece of water moving in the direction of sea waves and winds. Wherever the wind blows or where the waves drive, they will go there.
We could say that five general skills that workers say are most important when it comes to getting hired and being successful in the workplace:
Ability and willingness to learn new skills
Critical thinking and problem solving
Collaboration and team work
Interpersonal communication
Ability to analyze and synthesize information.
More specifically, we can list the most important ones nowadays, the skills of:
1) Basic Technology
2) Communication
3) Problem Solving
4) Collaboration
5) Adaptability
6) Multitasking
7) Social Media
A company bought a $1,000,000 building and $500,000 of land with a $300,000 cash down payment and used a new mortgage to pay the balance. What is the investing cash flow in this transaction?
The company purchased a building and land for a total of $1,500,000, making a $300,000 cash down payment. The investing cash flow for this transaction is $300,000. So, the correct option is d.
Let's go into more detail with the step-by-step calculation:
1. Total Purchase Price:
- Building cost: $1,000,000
- Land cost: $500,000
Total Purchase Price = Building cost + Land cost
= $1,000,000 + $500,000
= $1,500,000
2. Cash Down Payment:
- Cash down payment made: $300,000
3. Balance Financed through Mortgage:
The remaining amount after the down payment is financed through a mortgage:
Balance Financed = Total Purchase Price - Cash Down Payment
= $1,500,000 - $300,000
= $1,200,000
4. Investing Cash Flow:
The investing cash flow is the cash outflow related to the purchase. In this case, it's the cash down payment:
Investing Cash Flow = Cash Down Payment
= $300,000
So, in summary, the company paid a total of $1,500,000 for the building and land. They made a $300,000 cash down payment, and the remaining $1,200,000 was financed through a mortgage. The investing cash flow, which represents the cash outflow related to the purchase, is $300,000.
Complete question :- A company bought a $1,000,000 building and $500, 000 of land with a $300,000 cash down payment and used a new mortgage to pay the balance. What is the investing cash flow in this transaction?
a. ($1,200,000).
b. ($1,500,000).
c. ($1,000,000).
d. ($300, 000).
e. ($1,800,000).
Final answer:
In the described transaction, the investing cash flow is a $300,000 outflow, which is the cash down payment made for the purchase of a building and land totaling $1,500,000.
Explanation:
In the transaction described, a company bought a $1,000,000 building and $500,000 of land, making a $300,000 cash down payment and financing the remainder with a new mortgage. The investing cash flow for this transaction would be the cash outflow to acquire the building and land, totaling $1,500,000. Since the company used a $300,000 down payment, this amount represents the outflow in the investing activities section of the cash flow statement.
The rest of the purchase price paid by the mortgage does not affect the cash flow statement immediately, as this represents a financing activity, not an investing activity.
HVAC Services Inc. employs two hundred workers. Workers who lose their jobs with HVAC may have a right to continued health-care coverage under the company’s group plan. If so, the premiums for the continued coverage are paid by
a. the employer.
b. the still-employed workers.
c. the unemployed workers.
d. the federal government.
Answer:
The correct answer is letter "C": the unemployed workers.
Explanation:
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) passed in 1985, employers who hire 20 or more workers are subject to provide healthcare benefits up to 36 months to their employees after termination of employment caused because of different reasons. In those cases, the ex-workers are responsible for the payment of their premiums.