What is the empirical relationship between urbanization in 1500 and GDP per capita? How has this relationship changed over time? 1.) Using the line drawing tool, illustrate the relationship between urbanization in 1500 and GDP per capita in 1500. Label your line 'GDP per capita in 1500.' 2.) Using the line drawing tool, show the relationship between urbanization in 1500 and GDP per capita in 2010. Label your line 'GDP per capita in 2010.' Carefully follow the instructions above and only draw the required objects.
Answers
The relationship between urbanization and GDP per capita has shifted significantly from 1500 to 2010, with urbanization rates increasing at different levels of income per capita.
The empirical relationship between urbanization in 1500 and GDP per capita has changed over time. In 1500, the relationship between urbanization and GDP per capita was different from that in 2010. The minimum level of urbanization appears to have risen from zero in 1500 to 20% in 2010.
The relationship has evolved, and urbanization rates are 25-30 percentage points higher in 2010 than in 1500 at any given level of income per capita. This indicates that there has been urbanization without growth at every level of development from 1500 to 2010.
The changing relationship between urbanization and GDP per capita over time is evident in the data, with urbanization rates rising across the entire spectrum of development.
Therefore, the relationship between urbanization and GDP per capita has shifted significantly from 1500 to 2010, with urbanization rates increasing at different levels of income per capita.
Related Questions
Collins Little Company has a staff of 4 employees, each working 8 hours per day at a rate of $20/hour. Their overhead expenses are $200/day. Collins processes and closes on 12 titles each day. They are considering purchasing a computerized title search system that will allow the processing of 20 titles per day. With the new system, they could cut their staff to 2 employees working the same hours at the same pay, but their overhead expenses would double to $400 per day.
a. Compute the labor productivity with the old system (in titles / hour).
b. Compute the labor productivity with the new system (in titles / hour).
c. Compute the multifactor productivity with the old system (in titles / dollar).
d. Compute the multifactor productivity with the new system (in titles / dollar).
Answers
Answer:
A. Labor productivity = 12 titles /(4*8)
= 12 /32
0.375 hrs per unit
b. labor productivity = 20 / 16
= 1.25 hrs per unit
c. multi-factor productivity = output/ input
= 12 /( 640 +200)
= 0.0143
d. multi-factor productivity = output/ input
= 20/ (320+400)
= 0.2778
Explanation:
labour =640 = 4*8*20
labour = 320 = 2*8*20
a. Labor productivity with the old system is approximately 0.375 titles per hour, while with the new system, it's approximately 1.25 titles per hour. b. Multifactor productivity with the old system is around 0.015 titles per dollar, and with the new system, it's about 0.03125 titles per dollar.
a. To compute labor productivity with the old system (in titles per hour), you can use the following formula:
Labor Productivity (with old system) = Total Titles Processed / Total Labor Hours
Total Titles Processed = 12 titles per day
Total Labor Hours = 4 employees * 8 hours per day = 32 hours per day
Labor Productivity (with old system) = 12 titles / 32 hours ≈ 0.375 titles per hour
b. To compute labor productivity with the new system (in titles per hour), you can use the same formula:
Labor Productivity (with new system) = Total Titles Processed / Total Labor Hours
Total Titles Processed (with new system) = 20 titles per day
Total Labor Hours (with new system) = 2 employees * 8 hours per day = 16 hours per day
Labor Productivity (with new system) = 20 titles / 16 hours = 1.25 titles per hour
c. To compute multifactor productivity with the old system (in titles per dollar), you can use the following formula:
Multifactor Productivity (with old system) = Total Titles Processed / (Total Labor Cost + Total Overhead Cost)
Total Labor Cost (with old system) = 4 employees * 8 hours per day * $20/hour = $640 per day
Total Overhead Cost (with old system) = $200 per day
Multifactor Productivity (with old system) = 12 titles / ($640 + $200) = 0.015 titles per dollar
d. To compute multifactor productivity with the new system (in titles per dollar), you can use the same formula:
Multifactor Productivity (with new system) = Total Titles Processed / (Total Labor Cost + Total Overhead Cost)
Total Labor Cost (with new system) = 2 employees * 8 hours per day * $20/hour = $320 per day
Total Overhead Cost (with new system) = $400 per day
Multifactor Productivity (with new system) = 20 titles / ($320 + $400) = 0.03125 titles per dollar
So, the labor productivity with the old system is approximately 0.375 titles per hour, and with the new system, it's approximately 1.25 titles per hour. The multifactor productivity with the old system is approximately 0.015 titles per dollar, and with the new system, it's approximately 0.03125 titles per dollar.
For more questions on Labor productivity:
https://brainly.com/question/6430277
#SPJ3
Which of the following includes managing the movement of raw materials and parts from their sources to production sites; managing the movement of materials, semi-finished, and finished products within and among plants, warehouses, and distribution centers; and the planning and coordinating of the physical distribution of finished goods to intermediaries and final buyers?
a. intermodal transportation
b. contract logistics
c. logistics
d. materials handling
Answers
Answer: c. Logistics
Explanation: management of the movement of raw materials and parts from their sources to production sites; the movement of materials, semi-finished, and finished products within and among plants, warehouses, and distribution centers; planning and coordinating of the physical distribution of finished goods to intermediaries and final buyers are all contained in logistics.
Logistics is a part of operations and is defined as the process of planning, implementing, and controlling the efficient, effective flow and storage of raw materials, goods (finished, semi-finished etc), services and related information from their point of origin to point of consumption for the purpose of satisfying customer requirements.
The logistics department is responsible for managing the movement of raw materials from their sources to production sites and other stated functions.
Logistics refers to the process of planning, implementing, and controlling the flow and storage of raw materials, goods and services.
The logistics department is responsible for
managing the movement of raw materials and parts from their sources to production sites.managing the movement of materials, semi-finished, and finished products within and among plants, warehouses, and distribution centers.planning and coordinating of the physical distribution of finished goods to intermediaries and final buyers.Hence, the Option C is correct.
Read more about Logistics:
brainly.com/question/14533552
Discounting refers directly to a. calculations that ignore the phenomenon of compounding for the sake of ease and simplicity. b. decreases in interest rates over time, while compounding refers to increases in interest rates over time. c. finding the future value of a present sum of money. d. finding the present value of a future sum of money.
Answers
Answer:
The correct answer is letter "D": finding the present value of a future sum of money.
Explanation:
The Discount Rate is the interest rate that you need to earn on a given amount of money today to eventually end up with a given amount of money in a certain period in the future. The concept is associated with the present value of money that estates having a dollar today will be worth more than having a dollar tomorrow.
In investing, typically the higher the interest rate, the higher the risk involved with the investment and its future cash flows.
Final answer:
Discounting refers to the computation of the present value of a future sum of money, which is option d. It plays a vital role in financial and investment decisions, reflecting the preference of current consumption over future benefits.
Explanation:
The concept of discounting pertains to the technique of determining the present value of a future sum of money. The option that correctly defines discounting is d. finding the present value of a future sum of money. In financial decision-making, the discount rate is a crucial factor because it reflects how much value is placed on future benefits today. The higher the discount rate, the smaller the present value of future amounts, indicating a preference for immediate consumption over future benefits. This notion underpins various economic decisions, including investment in stocks and bonds, where future earnings and interest payments are factored into their present valuation. Two aspects to remember about discounting include the following: First, a high-interest rate results in a lower present value for future sums compared to a lower interest rate. Second, amounts to be received in the distant future are significantly discounted and thus have a much lower present value than amounts to be received sooner.
Cash is King!Good cash management is an essential job of the financial manager! You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budget indicates that your MONTHLY NET CASH for the year will be the following:JAN $5,000FEB -$30,000MAR $20,000APRIL -$35,000MAY $25,000JUNE -$10,000JULY $25,000AUG $25,000SEPT -$30,000OCT $15,000NOV $15,000DEC $25,000You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month. Prepare a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission.
1. Do you believe that the company needs outside financing?
2. What is the minimum line of credit to request from a lender?
3. Do you think you are a good candidate for the line of credit? Why?
Answers
Answer:
The solution to the given problem is given below.
Explanation:
1. Do you believe that the company needs outside financing?
Yes, Company needs outside finance total $ 40,000 as $25,000 in month of Feb and $15,000 in month of Apr il.
2. What is the minimum line of credit to request from a lender?
Minimum line of credit needed is $40,000
3. Do you think you are a good candidate for the line of credit? Why?
Yes, we are good candidate for line of credit because we can start repayment by May and repay by July and after repayment we will have ending March Cash balance $100,000 .
Detailed calculations are attached with the image.
When companies adjust their processes to be sure they offer high-quality products and good service at competitive prices they are responding to which external force?
a. The economic environment.
b. The technological environment
c. The competitive environment
Answers
Answer:
The correct answer is letter "C": The competitive environment.
Explanation:
Competitive corporate environment refers to the natural rivalry atmosphere companies face while offering a good or service that is similar to one other firm provides. This environment pushes firms to constantly be looking for improvements in product quality, price by reducing their costs, and customer service.
Also, competition is what drives institutions to pursue having a competitive advantage that will allow them to step up.
"A cross-hedging strategy is most effective with currencies that are _____; currency diversification is most effective with currencies that are ______."
Answers
"A cross-hedging strategy is most effective with currencies that are highly positively correlated; currency diversification is most effective with currencies that are not highly correlated."
Explanation:
Cross hedging is a idea that is used to mange risk. This is done by investing in two securities. Those two securities are correlated and that too positively. Which means their prices goes in the identical direction. It helps in minimizing the risks associated.
So,A cross hedging strategy is most efficient when currencies are positively correlated,
Currency diversification is a strategy where more than one currency is used in investment. It leads to less exchange rate risk. This strategy is most effective with currencies that are not highly correlated. Which means increase in one currency causes no increase in other currency.
Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media? A. A creative boutiqueB. A full-service agencyC. A media buying serviceD. A collateral agencyE. A switch marketing agency
Answers
Answer: B. Full Service Agency
Explanation: The above agency would provide all the necessary services to its clients -an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media?
Assume that direct labor is paid at a rate of $ 25 per hour and Job 456 used $ 2 comma 350 of direct materials. What was the total manufacturing cost of Job 456?
Answers
Answer:
Total manufacturing cost will be $17,500
Explanation:per hour of direct labour is $25 and
350 of direct materials was used at $2 which is 2*350=700
then to get the total manufacturing cost is $25 multiplied by 700 = $17,500
Answer:
Direct Materials. 2350
Direct labour(25*1) 25
Total Manufacturing cost= 2350+25=2375
Explanation:
Note: In the absence of total working hours, we assume 1hr as working hour.
A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment exactly 7 years and six months from today. The interest rate is an APR of 6.2 percent with semiannual compounding. What is the value of the payments today
Answers
The present value of the annuity payments is determined using the present value formula for an ordinary annuity, adjusted for the delay and the semiannual compounding. The payments are $3,900 every six months, with the first payment starting 7.5 years from today and a semiannual interest rate of 3.1%.
Explanation:The value of the payments today, also known as the present value, can be calculated using the formula for the present value of an ordinary annuity. The formula includes the payment amount, the interest rate per period, and the number of periods.
First, let's determine the number of periods (n) and the interest rate per period (r). Since payments are made every 6 months, and the first payment starts 7 years and 6 months from today, the payments will continue for 7 years after the first payment, resulting in n = 14 periods. The semiannual interest rate is half the APR, so r = 6.2% / 2 = 3.1% per period.
Because the payments start 7.5 years from today, we must also discount the value of the annuity an additional half-year to today's value. To find the present value (PV) we use the formula:
PV of annuity due = PV ordinary annuity × (1 + r)
The formula for the PV of an ordinary annuity is:
PV = PMT × [(1 - (1 + r)^-n) / r]
Where PMT is the payment amount ($3,900). The present value can then be found by substituting the values into the formula and solving for PV. Once obtained, it is multiplied by (1 + r) to adjust for the first payment occurring in 7.5 years rather than 7 years.
Blue Seas Cruiseline offers two types of dinner cruises: Regular and Executive. The contribution margin per ticket sold is $30 for the regular cruise, and $90 for the executive. Fixed costs are $210,000. It expects to sell four regular dinner cruises for every one executive dinner cruise. What is the total number of regular cruises Blue Seas must sell in order to breakeven? A. 1,750 B. 5,000 C. 4,000 D. 1,000
Answers
Answer: A - 1,750
Explanation:From the above question, The contribution margin per ticket sold is $30 for the regular cruise and $90 for the executive. Fixed costs are $210,000.
What is the total number of regular cruises Blue Seas must sell in order to breakeven?
BEP in units = fixed cost/ contribution margin.
= $210,000/($30 * 4) = 1,750
Answer:
C. 4,000 regular cruises
Explanation:
The Break-even point is where the operating income is zero that is, the firm pay theri variable and fixed cost related to opperations.
[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
Where:
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
As the company has multple product we must solve for the contribution of the mix:
regular: 30
executive: 90
the ratio of sales is 4:1
Thus 30 x 4/5 + 90 x 1/5 = contribution mix
contribution mix:42
At the current sales ratio we expect to make 42 dollar per seat
Now we calcualte for the BEP of the mix:
[tex]\frac{210,000}{42} = Break\: Even\: Point_{units}[/tex]
BEP 5000
Now, we solve for the ratio of sales wich is 4/5 for regular cruises:
5,000 x 4/5 = 4,000
According to the concept of organizational demography, if team members have dissimilar experiences, it will lead to ________. higher team efficacy higher employee turnover increased employee satisfaction decreased level of conflicts higher employee motivation
Answers
Answer: Higher employee turnover
Explanation:
There are different aspect of organizations. According to the concept of organizational demography, if team members have dissimilar experiences, it will lead to higher employee turnover.
Organizational demography is simply known to be the study of the makeup of a social entity when looking at its members' attributes.
This demography means the act or method which one measures the employee of the organization shares of a common place of work not looking at their caste, sex, religion, etc.
Learn more about Organizational demography from
https://brainly.com/question/17753589
A company is 40% financed by risk-free debt. The interest rate is 10%, the expected market risk premium is 8%, and the beta of the company’s common stock is .5. What is the company cost of capital? What is the after-tax WACC, assuming that the company pays tax at a 35% rate?
Answers
Answer:
12.4% ; 11%
Explanation:
The computation is shown below:
Cost of capital = (Weightage of debt × cost of debt) + (Weightage of common stock) × (cost of common stock)
= 0.40 × 0.10 + 0.60 × 0.14
= 0.04 + 0.084
= 12.4%
Now the After tax WACC is
= Weightage of debt × cost of debt × ( 1 - tax rate) + (Weightage of common stock) × (cost of common stock)
= {0.40 × 0.10 × (1 - 0.35)} + {0.60 × 0.14}
= 0.026 + 0.084
= 11%
The weightage of equity is
= 100 - 40%
= 0.60
Answer:
12.4%, 11%
Explanation:
Weighed average cost of capital (WACC) represents total cost of capital which is the summation of individual cost of capital of different sources, calculated as the proportion (weights) in total capital structure multiplied by the respective cost of capital.
Risk free rate of interest = 10%
Market risk premium = 8%
Cost of debt = [tex]I\ (1\ -\ t)[/tex] = 10 (1 - .35) = 6.5%
Cost of Equity = [tex]R_{f}\ +\ B\ (Risk\ Premium)[/tex]
where, [tex]R_{f} =[/tex] Risk Free Rate Of Interest
Risk Premium = [tex]R_{m}\ -\ R_{f}[/tex] = 8%
B = Beta or degree of sensitivity of security return with respect to market return
Cost Of Equity = 10 + 0.5 × 8 = 14%
Cost of capital before considering taxes = 10 × 0.4 + 14 × 0.6 = 4 + 8.4 = 12.4%
(1) (2)
Source Weights Cost of Capital (1) × (2)
Debt 0.4 6.5 2.6%
Equity 0.6 14 8.4%
Weighted Average Cost Of Capital 11 %
In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:
Cash balance per company books on January 30 $ 6,125
Deposits in transit at month-end $ 2,080
Outstanding checks at month-end $ 660
Bank service charges $ 39
EFT automatically deducted monthly, not yet recorded by Maxi $ 660
An NSF check returned on a customer account $ 405
Required:
1. The adjusted cash balance per the books on January 31 is _______________.
Answers
Answer:
$5,021
Explanation:
The computation of the adjusted cash balance is shown below:
= Cash balance as per company books - bank service charges - EFT automatically deducted monthly, not yet recorded - NSF check returned on a customer account
= $6,125 - $39 - $660 - $405
= $5,021
All the above items should be deducted from the company books cash balance so that the adjusted cash balance could come
An incentive compensation scheme includes a. a performance evaluation system b. a disciplinary action committee c. a reward system linked to performance d. Both A&C
Answers
Answer:
The correct answer is letter "D": Both A&C.
Explanation:
Incentive compensation schemes are established provided by employers based on the performance of employees. Employers set a reward system that could take the form of bonuses, prizes or recognition, and goals workers should reach or pass so those rewards can be provided.
Incentives are given at work aiming to motivate employees to work efficiently and effectively.
While the examples in this chapter have focused on a single-employer plan, many states operate statewide plans, referred to as Public Employee Retirement Systems (PERS), to which multiple employers contribute. One of the largest PERS plans in the nation is operated in the State of California. Required To answer the following questions, use the website found at www.calpers.ca.gov . The answers to the questions can be found in CalPERS's annual report and by using the "about," "organization." and "facts at a glance" sections Page 348 provided on the site. a. When was CalPERS established? b. How many employers contribute to CalPERS? c. How many members are served by CalPERS? d. What types of programs are administered by CalPERS? e. For the most recent reporting period, what is the value of total net position as listed in the statement of net position? f For the most recent reporting period, what was the total change in pension fund net position as reported in the statement of changes in net position? &.For the most recent reporting period, what was the funded status of pension programs PERF B and PERF C?
Answers
Answer:
a. 1932
b. 2,945 employers
c. Over 1.9 million members
d. They include Health Program, Long Term Care Plan, Deferred Compensation Plan and California Employers' Retiree Benefits Trust Fund for Post Retirement Program.
e. Value of total net position as of 30th June 2017 is $588.868 million
f. The total change in pension fund net position for most recent reporting period 30 June, 2017 is $27,984,457 thousands
g. PERF B is Schools and PERF C is Public Agency
Explanation:
a. CalPERS was established in 1932 as the "State Employees' Retirement System" and this name was changed as California Public Employees' Retirement System" (CalPERS) in the year 1992.
B) 2,945 Employers contribute to CalPERS. It includes 1,578 public agencies, 1,366 school districts and 1 the state of california.
C) 1.9 million members are served by CalPERS.
D) Two types of programs are administered by CalPERS:
1) Health Program
2) Other Programs: It includes-Long terms care plan,Deferred Compensation plan and California Employers' Retiree Benefits Trust Fund for post retirement program.
E) Value of total net position as on 30 June 2017 is $588.868 million (588,868,000) and as of June 30 June 2016 it is USD 572.292 million.
F) The total change in pension fund net position for most recent reporting period 30 June, 2017 is $27,984,457 thousands as added $(20,171,011+ 5,085,422 + 2,538,563 + 8,481+183,146 - 2,166).
G) For Most recent reporting period 30 June, 2017 the funded status of pension programs PERF B is Schools and PERF C is Public agency.
When purchasing bulk orders of batteries, a toy manufacturer uses this acceptance sampling plan: Randomly select and test 51 batteries and determine whether each is within specifications. The entire shipment is accepted if at most 2 batteries do not meet specifications. A shipment contains 5000 batteries, and 2% of them do not meet specifications. What is the probability that this whole shipment will be accepted? Will almost all such shipments be accepted, or will many be rejected? The probability that this whole shipment will be accepted is nothing. (Round to four decimal places as needed.) The company will accept nothing% of the shipments and will reject nothing% of the shipments, so many of the shipments will be rejected. almost all of the shipments will be accepted. many of the shipments will be rejected. (Round to two decimal places as needed.)
Answers
Answer:
Here, n = 51
Probability of success, p = 0.02
Probability of failure, q = 0.98 (= 1−0.2)
The entire shipment is accepted if at most 2 batteries do not meet specification. That is we have to find P(x ≤ 2).
probability = P(x=0)+p(x+1)+p(x=2)
=(0.02)^0(0.98)^51-0+(0.02)^1(0.98)^51-1+(0.02)^2(0.98)^51-2.
= 0.0071 +0.0073+0.00015
= 0.0145
= 1.45%
Starset Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $455,000 is estimated to result in $187,000 in annual pretax cost savings. The press falls in the 5-year MACRS class, and it will have a salvage value at the end of the project of $75,000. The press also requires an initial investment in spare parts inventory of $34,000, along with an additional $3,800 in inventory for each succeeding year of the project. The shop’s tax rate is 24 percent and its discount rate is 9 percent. (MACRS schedule)
NPV:
Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Should the company buy and install the machine press?
a. Yes
b. No
Answers
Answer:
NPV: $11,238
a. Yes
Explanation:
Total Investment (PV) = a new machine press for $455,000 + initial investment in spare parts inventory of $34,000 = $489000
Pretax cost saving $187,000 -> After tax saving = $187,000 * (1- tax rate 24%)= $142,120
Cash flow of every year = After tax saving $142,120 - additional $3,800 in inventory for each succeeding year = $138,320
a salvage value at the end of the project of $75,000 is in year 5 => Cash flow of year 5 = $138,320 + $75,000 = $213,320
Discount rate: 9%Cash flow year 1: - 489,000Cash flow year 2: 138,320 Cash flow year 3: 138,320 Cash flow year 4: 138,320 Cash flow year 5: 213,320We use excel to calculate the Net Present Value of Project
= NPB(rate, cash flow of year 1 - year 5)
= NPV(9%, -489000,138320, 138,320, 138,320 , 213,320)
= $11,238
Yes, the company should buy and install the machine because NPV is positive
(Please see excel calculation attached)
Final answer:
The NPV calculation for the machine press includes considering the initial investment, annual savings, depreciation benefits, taxes, additional inventory costs, and the present value of the salvage value. These are all discounted at the shop's rate of 9 percent to determine if the investment is worthwhile.
Explanation:
To calculate the net present value (NPV) of the machine press for Starset Machine Shop, we need to consider the initial investment, the annual pretax cost savings, the salvage value, additional investments in inventory, depreciation from the MACRS schedule, taxes, and the discount rate. The key steps include:
Calculating the after-tax savings each year by subtracting taxes from the pretax cost savings.Adding the tax shield from depreciation by applying the MACRS depreciation rates to the cost of the machine press.Considering the increasing inventory costs each year.Discounting these cash flows at the company's discount rate of 9 percent.Adding the present value of the salvage value at the end of year 4.The calculation will result in the NPV of the investment. If the NPV is positive, it suggests that the investment would add value to the company, implying a recommendation to purchase the machine press. If the NPV is negative, the investment would not be financially beneficial, suggesting the machine press should not be purchased.
A food company trying to increase its profits by expanding in to the soft drinks business is an example of a. Economies of Scope b. Economies of scale c. Diseconomies of Scale d. Diseconomies of Scope
Answers
Option A
A food company trying to increase its profits by expanding in to the soft drinks business is an example of Economies of Scope
Explanation:Economies of scope represent conditions when creating two or more goods or services collectively occurs at a more economical cost than manufacturing them individually. Economies of scope are an industrial concept that the total price to build a product will diminish as the diversity of products raises.
The provocation in seeking economies of scope is the likelihood of reducing what your business was formerly known for. Products that participate in the related inputs or that have equivalent productive manners contribute great possibilities for economies of scope through diversification.
If she spends all of her income on uglifruits and breadfruits, Maria can just afford 11 uglifruits and 4 breadfruits per day. She could also use her entire budget to buy 3 uglifruits and 8 breadfruits per day. The price of uglifruits is 6 pesos each. How much is Maria's income per day?
(a) 115 pesos;
(b) 105 pesos;
(c) 114 pesos;
(d) 119 pesos;
(e) None of the above.
Answers
Answer:
(c) 114 pesos;
Explanation:
Let u = price of uglifruits and b = breadfruits
Her budget constraints are :
11u + 4b = income
3u + 8b = income
Equate both equations together since they're both equal to income.
11u + 4b = 3u + 8b
U = 6 pesos
66 +4b = 18 +8b
48 = 4b
b = 12 pesos
Replace the price for and breadfruits into the initial equation to derive income
66 + 48 = 114 pesos
I hope my answer helps you
National Distributors has $1,000 face value bonds outstanding with a market price of $1,013. The bonds pay interest semiannually, mature in 11 years, and have a yield to maturity of 6.87 percent. What is the current yield
Answers
Answer:
Current Yield is 6.94%
Explanation:
Current yield is the ratio of coupon payment of a bond to its current market price.
First we need to calculate the coupon payment by using following formula
YTM = [ C + ( F - P ) / n ] / [ ( F + P ) / 2 ]
6.87% = [ C + ( $1,000 - $1,013 ) / 11 ] / [ ( $1,000 + $1,013 ) / 2 ]
6.87% = [ C + ( $1,000 - $1,013 ) / 11 ] / [ ( $1,000 + $1,013 ) / 2 ]
6.87% = [ C - $1.18 ] / 1006.5
1,006.5 x 6.87% = C - $1.18
69.15 = C - 1.18
C = 69.15 + 1.18 = $70.3 annually
Current Yield = Annual Coupon payment / Current market price
Current Yield = $70.3 / $1,013 = 0.0694 = 6.94%
Blue Corporation issued 660 shares of no-par common stock for $8,600.Prepare Blue’s journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $4 per share
Answers
Answer:
(a) Dr Cash $8, 600
Cr common stock – no par value $8, 600
Shares issued at no par value
(b)Dr Cash $8, 600
Cr Common stock $2, 640
Cr Additional paid-in capital $5, 960
Shares issued at no par value
Explanation:
No-Par Value Stock:
No-par value stock is shares that have been issued without a par value.
Par value is the face value of a bond or share. It is the per share amount that will appear on some stock certificate. In the case of common stock (shares), the par value is usually a very small amount such as $0.10. this par value has no connection with the market value of the share.
The reason why shares have par values is because these par values are stated in an organization’s corporate charter; and shares cannot be issued at a value that is less than the par value. The par value or any share or bond is not the face value of the share or bond.
(a) If the share is carried in the organization’s accounts at its issue price i.e. the shares have no stated value, then this is how the journal entry is recorded:
Dr Cash $8, 600
Cr common stock – no par value $8, 600
Shares issued at no par value
(b) If the share is carried in the organization’s accounts at stated value, this is how the journal entry is recorded:
Dr Cash $8, 600
Cr Common stock $2, 640
Cr Additional paid-in capital $5, 960
Shares issued at no par value
This is how we arrived at the answer for (b):
660 shares were issued at $4 per share, therefore 660 x $4 = $2, 640
The balance of $5, 960* is recorded as additional paid-in capital.
*$8, 600 - $2, 640 = $5, 960
Answer and Explanation:
Journal entries Debit Credit
(a) Cash $8,600
Common Stock $8,600
Issuance of 660 shares of no-par common stock
(b) Cash $8,600
Common Stock (W1) $2,640
Paid in Capital in excess of par (W2) $5,960
Issuance of 660 shares at a stated value of $4 per share
Working:
(W1) Common stock = Number of shares issued x Stated value per share
= 660 x $4
= $2,640
(W2) Paid in Capital in excess of par = Cash - Common Stock
= $8,600 - $2,640
= $5,960
On October 1, 2019, Priscilla purchased a business. Of the purchase price, $92,000 is allocated to a patent and $552,000 to goodwill. If required, round your intermediate values to nearest dollar and use in subsequent computations. Calculate Priscilla’s 2019 § 197 amortization deduction. $
Answers
Answer:
$10,730
Explanation:
1. Patent: $92,000/15 years = $6,133
$6,133 × 3/12 = $1,533
2.Goodwill: $552,000/15 years= $36,800
$36,800 × 3/12 = $9,200
Total: $1,533 + $9,200= $10,733
Approximately $10,730
Which of the following is a nonmanufacturing business where process costing would most likely be used? An auto body shop. A furniture repair shop. A laboratory that tests water samples for lead A tailoring shop. A beauty shop.
Answers
All of them are the non-manufacturing business where process costing would most likely be used.
Explanation:
All are non-manufacturing business which are as follows, An auto body shop. A furniture repair shop. A laboratory that tests water samples for lead A tailoring shop. A beauty shop.Non-manufacturing business costs refers to those business where it is incurred outside the factory or production unitNon-manufacturing costs includes,selling expenses general expenses Selling Expenses It is also called as selling and distribution expenses.Non-manufacturing expenses have no impact on the production cost of the company due to their period costs.
Final answer:
Among the nonmanufacturing businesses listed, a laboratory that tests water samples for lead would be the most likely to use process costing because it produces homogeneous outputs in a continuous flow, similar to chemical plants.
Explanation:
Process costing is a method used in manufacturing and nonmanufacturing businesses where products or services are homogeneous and produced in a continuous flow. This makes it suitable for industries like chemical production or water treatment where many units of a similar product are created. Amongst the nonmanufacturing businesses listed such as an auto body shop, a furniture repair shop, a laboratory that tests water samples for lead, a tailoring shop, and a beauty shop, a laboratory that tests water samples for lead is the most likely to use process costing. This is because, similar to the examples of chemical plants and chemistry labs, the laboratory conducts standardized processing experiments and runs, which result in homogeneous outputs allowing for a more accurate product cost determination.
Process costing enables the calculation of the costs per unit of the product by tracking and averaging the direct and indirect costs involved in the production process. This includes both fixed operating costs, such as the cost of maintaining the facility, and variable costs that change with the level of production - all of which are key to understanding and managing costs effectively in businesses with a significant degree of operating leverage or those pursuing economies of scale.
An assembly line has 6 work stations with cycle time of 6 minutes.There are 10 tasks with total work content of 12 minutes. What is approximate efficiency of this line
Answers
Approximate efficinecy of line = 33 percent
Explanation:
Given Data:
number of work stations = 6, cycle time = 6 minutes, number of tasks = 10, total work content given = 12 minutes
In order to calculate the efficiency of work line, the following formula will be used
Efficiency of the lines = total work content divide by ( number of work station multiply with cycle time)
putting the figures in the given formula, we get,
efficiency of lines = [tex]12 /(6 * 6)[/tex] = 12 divide by 36
= 0.3333
= 33 percent
Murphy Company produces two products, Regular and Enhanced. Murphy produces 8,000 units of Regular and 2,000 units of Enhanced. The company uses two activity cost pools, with estimated cost and activity as follows: Pool Estimated Cost Regular Enhanced #1 $12,000 500 hours 250 hours #2 $24,000 400 hours 1,200 hours What is the overhead cost per unit of Enhanced under activity-based costing?
Answers
Answer:
$11.00 per unit.
Explanation:
We know,
Total overhead cost = Estimated cost for pools × (Expected activity of specific activity ÷ Total expected activity)
Given,
Estimated cost for pool 1 = $12,000
Estimated cost for pool 2 = $24,000
Total expected activity for pool 1 = Regula + Enhanced = 500 + 250 hours = 750 hours
Total expected activity for pool 2 = Regula + Enhanced = 400 + 1,200 hours = 1,600 hours
As we have to find the overhead cost per unit of Enhanced,
Therefore, Total overhead cost = [$12,000 × (250 ÷ 750)] + [$24,000 × (1,200 ÷ 1,600)] = $4,000 + 18,000 = $22,000
Again, we know,
the overhead cost per unit under ABC costing = Total overhead cost ÷ Number of units produced for a specific unit
Cost per unit of Enhanced products = $22,000 ÷ 2,000 units = $11 per unit.
Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. A representative for Curly’s tells you the policy costs $550,000. At what interest rate would this be a fair deal? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate %
Answers
Answer:
r = 5.45%
Explanation:
Given that
30,000 is to be paid per year
550,000 is the policy cost
Therefore
Using present value of perpetuity
PV = D/r
550,000 = 30,000/r
Where
r = interest rate
Dividend = 30,000
PV = 550,000
Thus
r = 30,000 ÷ 550,000
r = 5.45%
The interest rate that would make a perpetual payment of $30,000 per year equivalent to a present value of $550,000 is 5.45%. This is determined by using the formula for the present value of a perpetuity and solving for the interest rate.
The question is asking to calculate the interest rate that would make a perpetual payment of $30,000 per year equal to a present value of $550,000. This can be calculated using the formula for the present value of a perpetuity:
PV = PMT / r
Where PV stands for present value, PMT stands for payment (annuity amount), and r is the annual interest rate.
Rearranging the formula to solve for r gives us:
r = PMT / PV
Plugging in the values:
r = $30,000 / $550,000
r = 0.0545454545
Converting this to a percentage and rounding to two decimal places:
Interest rate = 5.45%
Therefore, the interest rate that would make the investment policy a fair deal is 5.45%.
In your initial post, discuss whether you think a contract existed in this situation. Make sure to include the contract elements that are present. Also, state whether Staley has any recourse in this case. Provide rationale for your answer.
Answers
In your initial post, discuss whether you think a contract existed in this situation. Make sure to include the contract elements that are present is given below
Explanation:
Most contracts only need to contain two elements to be legally valid: All parties must be in agreement (after an offer has been made by one party and accepted by the other). Something of value must be exchanged -- such as cash, services, or goods (or a promise to exchange such an item) -- for something else of value.
The requisite elements that must be established to demonstrate the formation of a legally binding contract are (1) offer; (2) acceptance; (3) consideration; (4) mutuality of obligation; (5) competency and capacity; and, in certain circumstances, (6) a written instrument.
A contract is much more than an agreement between two people. There must be an offer and acceptance, intention to create a legally binding agreement, a price paid (not necessarily money), a legal capacity to enter a contract of your own free will, and proper understanding and consent of what is involved.
Identify an offer, acceptance, and consideration.
For a contract to be valid, it must have these three basic elements: a specific offer, acceptance of the terms of the offer, and consideration, which is the agreed-upon exchange of goods or services. A valid offer must be sufficiently definite.
Identify an offer, acceptance, and consideration.
For a contract to be valid, it must have these three basic elements: a specific offer, acceptance of the terms of the offer, and consideration, which is the agreed-upon exchange of goods or services. A valid offer must be sufficiently definite.
Suppose that due to a poor economy, 1 million workers lost their jobs, causing the unemployment rate to increase to 10%. After a few months of searching, 300,000 of these unemployed workers give up looking for work. How would the decision by these 300,000 people affect the unemployment rate, all else equal
Answers
Answer:
The unemployment rate would decrease.
Explanation:
The unemployment rate only takes into account economically active people, that is, people who are actively searching for a job. This means that if 300,000 people give up looking for work, they are not considered unemployed anymore and only 700,000 of the original 1 million workers who lost their job will be counted towards the unemployment rate. Consequently, the unemployment rate would decrease.
Find the principal needed now to get the given amount; that is, find the present value.To get $ 90 after 2 and three fourths years at 6% compounded continuouslyThe present value of $ 90 is $ nothing .(Round to the nearest cent as needed.)
Answers
Explanation:
For continuous compounding, we use the following formula
[tex]FV_{N} = PVe^{i N}[/tex]
Scenario 1 :
FV = $ 90
N = 2 years
I = 6%
PV= ?
[tex]FV_{N} = PVe^{i N}[/tex]
[tex]90 = PVe^{(0.06) (2)}[/tex]
[tex]\frac{90}{e^{(0.06) (2)}} = PV[/tex]
[tex]PV = 79.8228[/tex]
PV = $ 79.82
Scenario 2:
[tex]FV_{N} = PVe^{i N}[/tex]
[tex]90 = PVe^{(0.06) (3)}[/tex]
PV = $ 75.17
Scenario 3:
[tex]FV_{N} = PVe^{i N}[/tex]
[tex]90 = PVe^{(0.06) (4)}[/tex]
PV = $ 70.80
Muhammad, a 21-year old computer engineer, is opening an individual retirement account (IRA) at a bank. His goal is to accumulate $2.5 million in the IRA by the time he retires in 46 years. Muhammad expects his IRA to receive 8% nominal annual interest, compounded semiannually, throughout the 46 years. As a computer engineer, Muhammad believes his salary will increase at a constant 4% annual rate during his career. Muhammad wishes to make annual deposits into his IRA account over the 46 years. He wishes to start his IRA with the lowest possible deposit and then increase his deposit amount at a constant 4% rate each year.
Assuming end-of-year deposits, how much should she deposit the first year?
Answers
Answer:
The first annual depoisit will be of 3,373.49 dollars
Explanation:
Given the formula for future growing annuity
we need to solve for the yearly payment:
grow rate: 0.04
annual effective rate: 8% compounding semiannually:
[tex](/1+0.08/2)^2-1 = r_e\\[/tex]
r= 0.0816
FV 2,500,000
n 46
Formula for future value fo an ordinary annuity:
[tex]C_0 \times \frac{(1+r)^n-(1+g)^n}{r-g} = FV[/tex]
[tex]C_0 \times \frac{(1+0.0816)^{46}-(1+0.04)^{46}}{0.0816-0.04} = 2,500,000\\C_0 = $3,373.4855[/tex]
The first annual depoisit will be of 3,373.49 dollars