Alexander and Kristin are executive managers at Safety First Fall Safety Equipment Co. They realize that within the last several quarters, they have been treating the performance metrics from the company's two very distinct divisions the same rather than focusing on the unique aspects of each division. They have inaccurately assessed divisional performance as a result. Alexander and Kristin realize they have fallen prey to a cognitive bias known as:_______

a. common measures bias
b. motivated reasoning
c. surrogation
d. uncommon measures bias

Answers

Answer 1

Answer:

The correct answer to the following question will be Option A (Common measures bias).

Explanation:

CMS occurs because once variations throughout order to respond have been triggered either by method rather than with the real propensities of the participants that only the equipment is trying to expose.It suggested a lack of desire on the part of the decision-maker to integrate specific knowledge because this knowledge provides additional cognitive effort. It's streamlined.

The remaining three solutions are not relevant to the situation in question. So Choice A is the right one.


Related Questions

You are an owner of a bakery, and you meet with other neighborhood bakery owners. In an attempt to increase sales, you collectively decide to lower prices by 10%. Which of the following are consequences of this price change?
A. The supply of fresh baked goods will decrease.
B. The quantity supplied of fresh baked goods will decrease.
C. Demand for processed baked goods will decrease.
D. The supply of fresh baked goods will increase.
E. The demand for fresh baked goods will not change.
F. The demand for fresh baked goods will increase.

Answers

Answer:

The quantity supplied of fresh baked goods will decrease ( B )

Demand for processed baked goods will decrease. ( C )

The demand for fresh baked goods will not change ( E )

Explanation:

When the neighbourhood bakery owners agree to lower prices of goods by 10% it will not have any effect on the demand for fresh baked goods hence the demand for fresh baked goods will not change because the demand for fresh baked goods have an in-elastic curve

Also since there is s drop in price the quantity supplied by the suppliers will decrease. while The demand for processed baked goods will decrease because of the substitute it has in fresh baked goods that just got its price slashed by 10%

An asset is acquired using a noninterest-bearing note payable for $100,000 due in two years. Management records the purchase with a debit to the asset for $100,000 and a credit to notes payable for $100,000. Which of the following statements is correct?A. Management has properly recorded the transaction.B. Management has not considered the present value of the note in recording the asset.C. Management should not record the asset until the note has been paid.D. Management should record the note for more than $100,000 to account for the underlying interest.

Answers

Answer:

The answer is A. Management has properly recorded the transaction.

Explanation:

According to the given data Since the note is non interest bearing, no interest will be paid on the bond.

Therefore, asset will be debited and note payable will be credited by the full amount.

Therefore, the Management has properly recorded the transaction.

The joural entry would be as follows:

                        Debit            Credit

asset              $100,000

note payable                    $100,000

The Solow model predicts that, over time, real GDP in developing economies could potentially converge to the same level of real GDP as developed economies. Which of the following is not consistent with convergence?

a. Investors seeking to build new factories would likely build those factories in developing economies that have some political stability.
b. Developing nations should converge because they can take advantage of technological discoveries made by developed economies.
c. Over time, developing economies become richer, and developed economies become poorer, until they reach the same level of wealth.
d. Because investment in developing nations yields relatively greater returns, capital will flow into developing economies, leading to relatively greater economic gro

Answers

Answer: c. Over time, developing economies become richer, and developed economies become poorer, until they reach the same level of wealth.

Explanation:

The Solow model which is a neoclassical framework focuses on long term Economics and does indeed speak to the convergence of the Real GDPs of Developed Countries with that of Developing countries.

However, of all the options listed, Option C goes against the model because convergence cannot happen if the Developed Countries keep getting richer while Developing countries keep getting poorer. Should that happen, they will never get to the same level of wealth and indeed might end up on opposite sides of the wealth spectrum with Developed Countries being extremely wealthy and Developing countries being extremely poor.

For convergence to happen, the conditions in A, B and D are preferable as they can indeed bring about the said convergence.

The approach to ethical behavior which proposes that actions and plans should be judged by their consequences, thus producing the greatest benefit to society with the least harm or the lowest cost is called:__________.
A) individual rights approach.
B) mercantilism approach.
C) utilitarian approach.
D) justice approach.
E) moral imperialism approach.

Answers

Answer:

The correct answer is option (C)utilitarian approach.

Explanation:

Utilitarian approach: It is referred to as an action in relative to outcomes and reaction

For example, the cost and net benefits of all group of people based on an individual level. that is, by works towards achieving or aiming for the best for the greatest number while producing the least amount of suffering or harm.

W.T. Ginsburg Engine Company manufactures part ACT30107 used in several of its engine models. Monthly production costs for 1,090 units are as follows: Direct materials $46,000 Direct labor 10,500 Variable overhead costs 32,500 Fixed overhead costs 22,000 Total costs $111,000 It is estimated that 6% of the fixed overhead costs assigned to ACT30107 will no longer be incurred if the company purchases ACT30107 from the outside supplier. W.T Ginsburg Engine Company has the option of purchasing the part from an outside supplier at $94.75 per unit. If the company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total ________.

Answers

Answer:

Cost that will no longer be incurred  =  $90320  

Explanation:                                                    

                                                                                      $

The relevant variable cost

= 46,000 + 10,500 + 32,500                                    $89,000

Cost of external supply

=  94.75 × 1090=                                                   $103,277.50  

Increase in of purchase                                           14,277.50  

Savings in fixed cost  (6%× 22,000)                         ( 1320

Net increase in cost if purchased                            12,957.50  

Cost that will no longer be incurred =  89,000 +1320    =  $90320

Cost that will no longer be incurred  =  $90320

Account A pays simple interest.
Future ValueA = Principal + Interest
= Principal + [(Principal x Interest Rate) x Investment Period]
= $2,000 + [($2,000 x 996) x 3 years]
Future Value of Account X Note: Account X pays compound interest.
Future Valuex = Present Value x Interest Rate Factor
= Present Valuex(1 +Interest Rate)n years
= $2,000 x (1 + 0.09)3
To find the interest rate factor, you can use three different ways, including multiplying it out:
Interest Factor(1 0.09) x (1 0.09) x (1 0.09)1.2950
Or using exponents and calculating it directly:
Interest Factor(10.09)31.2950
Or looking up the value in the Future Value Interest Factor Table:

Interest Factors
Periods 6% 7% 8% 9% 10 11
1 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100
2 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321
3 1.1910 1.2250 1.2597 1.2950 1.3310 1.3676
4 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181
The fourth alternative for solving the equations is to let a financial calculator perform the calculation. This requires that you know how your calculator functions and how to enter the following variables:
P/ Y N I / YR PV FV
1 3 9 2,000
P/Y indicates the number of compounding periods per year, N is the number of years, I is the interest rate, PV is present value, and FV is future value.
Difference in Future Values
Difference = FVx_FVA

Answers

Answer:

Explanation:

                          Interest Factors

Periods          6%       7%          8%                  9%            10%             11 %

1                 1.0600      1.0700     1.0800        1.0900     1.1000        1.1100

2                1.1236      1.1449         1.1664         1.1881      1.2100        1.2321

3                1.1910       1.2250      1.2597         1.2950     1.3310         1.3676

4                1.2625      1.3108     1.3605          1.4116       1.4641          1.5181

1)

Future value paying simple interest = Principal + [( principal * interest) * investment period]

Future value paying simple interest = $2,000 + [ ( $2,000 * 9%) * 3]

Future value paying simple interest = $2,000 + 540

Future value paying simple interest = $2,540

2)

Future value paying compound interest = Present value * ( 1 + interest)n

Future value paying compound interest = $2,000 * ( 1 + 0.09)3

Future value paying compound interest = $2,000 * 1.295029

Future value paying compound interest = $2,590.058

3)

Difference = $2,590.058 - 2,540

Difference = $50.058

Wings Co. budgeted $572,000 manufacturing direct wages, 2,500 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Overhead Cost Driver Materials handling $ 196,000 4,900 pounds Weight of materials Machine setup 19,600 560 setups Number of setups Machine repair 1,600 32,000 machine hours Machine hours Inspections 16,500 330 inspections Number of inspections Requirements for Job #971 which manufactured 4 units of product: Direct labor 20 hours Direct materials 220 pounds Machine setup 30 setups Machine hours 16,700 machine hours Inspections 15 inspections The total overhead of Job #971 under the ABC costing is:

Answers

Answer:

Total allocated overhead= $11,435

Explanation:

Giving the following information:

Materials handling $196,000 4,900 pounds

Machine setup $19,600 560 setups  

Machine repair $1,600 32,000 machine hours

Inspections $16,500 330 inspections

Job 971

Direct labor 20 hours

Direct materials 220 pounds

Machine setup 30 setups

Machine hours 16,700 machine hours

Inspections 15 inspections

First, we need to calculate the estimated overhead rate for each activity:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Materials handling= 196,000/4,900= $40 per pound

Machine setup= 19,600/560= $35 per setup  

Machine repair= 1,600/32,000= $0.05 per machine hour

Inspections= 16,500/330= $50 per inspection

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Materials handling= 40*220= 8,800

Machine setup= 35*30= 1,050  

Machine repair= 0.05*16,700=835

Inspections= 50*15= 750

Total allocated overhead= $11,435

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 345,000 debit Allowance for uncollectible accounts 700 debit Net Sales 790,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

Answers

Answer: $5,440

Explanation:

When using the percent of sales method to determine bad debts, the company estimates a percentage that it believes will results in uncollectible debt and then applies it to the sales/revenue figure. The figure that is calculated is then debited along with the debit balance on the Allowance for doubtful accounts to the Bad debts account for the year and credited to the Allowance for doubtful accounts.

This company estimates that they will have 0.6% of credit sales uncollectible.

There are also $790,000 in sales of which all are on credit.

The Uncollectible estimate is therefore,

= 790,000 * 0.6%

= $4,740

This figure is then added to the debit amount on the Allowance for Uncollectible Accounts.

= 4,470 + 700

= $5,440

Note; A debit balance on the Allowance for doubtful debt account signifies that the bad debts were higher than anticipated the last time. This is why the figure is added to the current bad debts expense.

You just made the last monthly payment on a 30 year mortgage -- the house is yours! In your joyous moment, you calculate how much you made in payments over those 30 years, and it is $647,514! If your interest rate was an APR of 6%, and you made equal monthly payments, how much did you originally borrow for this house

Answers

Answer:

$112,807

Explanation:

To calculate the amount of money you borrowed, you have to use the formula to calculate the present value:

PV=FV/(1+r)^n

PV= pressent value

FV= future value= 647,514

r= rate= 6%

n= number of periods of time= 30

PV=647,514/(1+0.06)^30

PV=647,514/(1.06)^30

PV=647,514/5.74

PV=112,807

According to this, you originally borrowed $112,807 for this house.

Melody and Todd are married and have employee wages of $250,000 each in 2019. They have no other income. How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2019 income tax return?

Answers

Answer:

$1,350

Explanation:

The computation of the amount pay or received as a refund at the time of filing the income tax return for the year 2019 is shown below:

As we know that

The Medicare tax rate is 1.45% till $200,000

And, if it is above $200,000 than 2.35% is charged (1.45% + 0.9%)

Now

For individually calculated,

Melody = ($200,000 × 1.45%) + ($50,000 × 2.35%) = $4,075

Todd = ($200,000 × 1.45%) + ($50,000 × 2.35%) = $4,075

So, the total is

= $4,075 + $4,075

= $8,150

Now if they filling their joint return so

Total salary is $500,000   ($250,000 × 2)

Medicare upto $250,000 = $3,625 ($250,000 × 1.45%)

for remaining $250,000 = $5,875 ($250,000 × 2.35%)

So, the Total is

= $3,625 + $5,875

= $9,500

Now the refund is

= Joint return - individually return for each one

= $9,500 - $8,150

= $1,350

The following list of statements about corporations are given below.
1. A corporation is an entity separate and distinct from its owners.
2. As a legal entity, a corporation has most of the rights and privileges of a person.
3. Most of the largest U.S. corporations are publicly held corporations.
4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.
5. The net income of a corporation is taxed as a separate entity.
6. Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.
7. The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders; it is entirely at the discretion of the stockholder.
8. The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation.
9. The chief accounting officer of a corporation is the controller.
10. Corporations are subject to more state and federal regulations than partnerships or proprietorships. Andrea has studied the information above and has come with more statements about corporations.
Identify whether each statement is true or false.
1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.
A. True B. False
2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.
A. True B. False
3. When a corporation is formed, organization costs are recorded as an asset.
A. True B. False
4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.
A. True B. False
5. The number of issued shares is always greater than or equal to the number of authorized shares.
A. True B. False
6. A journal entry is required for the authorization of capital stock.
A. True B. False
8. Publicly held corporations usually issue stock directly to investors. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.
A. True B. False
9. The market price of common stock is usually the same as its par value.
A. True B. False
10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
A. True B. False

Answers

Answer:

1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.

A. True B. False

2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.

A. True B. False

3. When a corporation is formed, organization costs are recorded as an asset.

A. True B. False

4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.

A. True B. False

5. The number of issued shares is always greater than or equal to the number of authorized shares.

A. True B. False

6. A journal entry is required for the authorization of capital stock.

A. True B. False

8. Publicly held corporations usually issue stock directly to investors. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.

A. True B. False

9. The market price of common stock is usually the same as its par value.

A. True B. False

10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.

A. True B. False

Explanation:

1) Corporation management means that experts can be hired as managers.  On the other hand, the managers may not act in the best interest of the owners, even though, they are legally required to do so.

2) Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.  Limited liability of stockholders may be a disadvantage to non-stockholders, but it is an advantage for stockholders, who will not be required to contribute more money to offset liabilities of the corporation in the event of liquidation.  Since corporations are distinct persons in law, they also need to be regulated and taxed as separate persons.  So, this is not a disadvantage.  It is only a consequence of being separate entity, like all individuals.

3) Organization costs include legal payments, state and federal registration, and incorporation fees, promotions, and charges associated with the underwriting of stocks and bonds. Organization costs can be classified as assets on the company's balance sheet.

4) A share in a company's stock accords some rights on the holder as itemized above.

5) The number of issued shares may be equal to or less than the authorized shares.  Some companies do not issue all the shares that they are authorized to issue at the same time.

6) Authorization of capital stock does not require a journal entry.  A memorandum record of the authorization is instead maintained to show the number of authorized capital shares and the par value.

7) There is no question 7.

8) Initial public offerings are made directly to investors.  The stock exchange market caters for the exchange of shares among investors.  The company is not involved and does not take any financial record, except the register of shareholders.

9) The market price of shares may be more or less than the par value.  The market price is determined by investors, who exchange shares at arm's length in the stock exchange market.  The par value is determined by those authorizing the issue of shares.

10) Retained Earnings are the income generated by the corporation which have not been distributed to shareholders in the form of dividends.

Rank the following instruments in terms of credit risk. In your rankings, use 1 for the greatest credit risk and 4 for the smallest credit risk. Assume a 10 year Treasury trades with a YTM of 5%.a. A Ba1 corporate bond ______b. A ten-year BBB- corporate bond with a YTM of 7% ______c. A secured loan from Argosy Gaming, which is a B- rated firm ______d. A senior subordinated bond from Argosy Gaming

Answers

Answer:

a. A Ba1 corporate bond 2 (not investment grade)

b. A ten-year BBB- corporate bond with a YTM of 7% 3 (medium risk but still investment grade)

c. A secured loan from Argosy Gaming, which is a B- rated firm 4 (less risky since it is backed by a collateral)

d. A senior subordinated bond from Argosy Gaming 1 (highest risk)

Explanation:

There are two major bond rating agencies in the US: Moody's and Standard & Poor's.

Their rankings are very similar, although the letters vary a little:

AAA: safest

AA: low risk

A: low risk

BBB: medium risk

BB: a little bit more riskier

B: risky

CCC: very high risk

CC: even riskier

C: riskiest

D: junk, in default

Following are the accounts and balances (in random order) from the adjusted trial balance of Stark Company.

Notes payable $11,000
prepaid insurance 2500
Interest expense 500
Accounts payable 1500
Wages payable 400
Cash 10,000
Wages expense 7500
Insurance expense 1800
Common stock 10,000
Retained earnings 14,800
Services revenue 20,000

Accumulated depreciation—BuiIdings $15,000
Accounts receivable 4000
Utilities expense 1300
Interest payable 100
Unearned revenue 800
Supplies expense 200
Buildings 40,000
Dividends 3,000
Depreciation expense—BuiIdings 2,000
Supplies 800

Required:
Prepare the:

a. Income statement
b. Statement of retained earnings for the year ended December 31
c. Balance sheet at December 31. The Retained Earnings account balance was $118,800 on December 31 of the prior year.

Answers

Answer:

a. Income statement

Services revenue                                                      20,000

Unearned revenue                                                         800

Total Revenue                                                           20,800

Less Expenses :

Interest expense                                          500

Wages expense                                        7,500

Insurance expense                                    1,800

Utilities expense                                        1,300

Supplies expense                                        200

Depreciation expense—BuiIdings           2,000      (13,300)

Net Income                                                                  7,500

b. Statement of retained earnings for the year ended December 31

Retained earnings at the beginning of the year 14,800

Add Profit for the year                                            7,500

Less Dividends Paid                                             (3,000)

Retained earnings at the end of the year           19,300

c. Balance sheet at December 31.

Non - Current Assets

Buildings                                                 40,000

Accumulated depreciation—Buildings (15,000)

Total Non - Current Assets                    25,000

Current Assets

Supplies                                                       800

Accounts receivable                                4,000

Prepaid insurance                                    2,500

Cash                                                         10,000

Total Current Assets                               17,300

Total Assets                                             42,300

Equity and Liabilities

Equity

Common stock                                        10,000

Retained Earnings                                   19,300

Total Equity                                              29,300

Non - Current Liabilities

Notes payable                                          11,000

Total Non - Current Liabilities                 11,000

Current Liabilities

Accounts payable                                     1,500

Wages payable                                           400

Interest payable                                          100

Total Current Liabilities                           2,000

Total Equity and Liabilities                    42,300

Explanation:

The Profit for the year is included in the calculation of the Retained Earnings figure for the end of the year. The retained earnings figure at end of the year is part of Equity in the Balance Sheet.

(Note Income Statement Consist of Revenue Expenditures only, whilst Balance Sheet consists of Assets, Equity and Liabilities).

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer.Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.Ken’s son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,100.Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $12,050 in itemized deductions last year (the standard deduction for a single filer was $12,000).Ken received $30,000 of interest from corporate bonds and money market accounts.What is his gross income?

Answers

Answer:

Gross Income = 46950

Explanation:

SOURCE                                                                                           AMOUNT

Illegal gross income (from poker)                                                   1200

Gain on stock sale                                                                           1000

Annuity (25000 - 210000/20)                                                         14500

Scholarship (excess of book allowance paid, for taxable car)       200

Tax refund (tex benefit of last year)                                                  50

Interest Income                                                                                 30000

Total Gross Income                                                                         46950

Disability benefit is excluded as the policy was purchased by taxpayer. Income from son is also  not included, as income is taxed to taxpayer who earned the income

The RST Company makes 38,000 parts to be used in its main products. The cost per part at this activity level is:
Direct materials
$
6.50
Direct labor
$
6.60
Variable manufacturing overhead
$
3.75
Fixed manufacturing overhead
$
3.45




An outside supplier offered to supply RST Company this part at $18 per unit. If RST Company decides not to make the parts, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost. The annual financial advantage (disadvantage) for the company as a result of buying these parts from the outside supplier rather than making them internally would be:


($186,200)


($87,400)


($43,700)


$87,400

Answers

Answer:

($43,700)

Explanation:

38,000 units produced:

Direct materials  $ 6.50 Direct labor  $6.60 Variable manufacturing overhead $3.75 Fixed manufacturing overhead  $3.45total cost per unit = $20.30

outside supplier offers parts at $18 per unit

fixed manufacturing overhead is unavoidable

                                Alternative 1             Alternative 2        Differential

                                keep producing       buy                        amount

Prod. cost                $771,400                               $0            $771,400

Purchase cost                    $0                  $684,000            ($684,000)

Unavoidable costs            $0                     $131,100               ($131,100)

total                         $771,400                    $815,100               ($43,700)

The financial disadvantage of purchasing the parts from an outside vendor = ($43,700)

Zeke Company sells 26,900 units at $16 per unit. Variable costs are $9 per unit, and fixed costs are $38,100. The contribution margin ratio and the unit contribution margin, respectively, are

Answers

Answer:

Contribution margin ratio= 0.4375

Contribution margin= $7

Explanation:

Giving the following information:

Zeke Company sells 26,900 units at $16 per unit. Variable costs are $9 per unit, and fixed costs are $38,100.

To calculate the contribution margin per unit, we need to use the following formula:

Contribution margin= selling price - unitary variable cost

Contribution margin= 16 - 9= $7

Now, we can calculate the contribution margin ratio:

Contribution margin ratio= contribution margin/ selling price

Contribution margin ratio= 7/16

Contribution margin ratio= 0.4375

Oriole Inc manufactures model airplanes and repair kits. The planes account for 75% of the sales mix, and the kits the remainder. The variable cost ratio for the planes is 80% and 65% for the kits. Fixed costs are $114000. Compute the breakeven point in sales dollars.

Answers

Answer:

Break-even point (dollars)= $480,000

Explanation:

Giving the following information:

Fixed costs are $114000.

Sales mix:

Planes= 0.75

Kits= 0.25

Contribution margin ratio:

Planes= 0.20

Kits= 0.35

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= Total fixed costs / Weighted average contribution margin ratio

Weighted average contribution margin ratio= sales mix*contribution margin ratio

Weighted average contribution margin ratio= 0.75*0.2 + 0.25*0.35

Weighted average contribution margin ratio= 0.2375

Break-even point (dollars)= 114,000/0.2375

Break-even point (dollars)= $480,000

Fast-food restaurants like McDonald's are replacing cashiers with touch-screen ordering kiosks. Currently the MPL for an additional cashier is 48 customers served per hour and the MPK for an additional kiosk is 32 customers served per hour. A cashier can be hired for wage of $15; a kiosk rents for $12.
(a) Is Whataburger using the optimal cost-minimizing mix of cashiers and kiosks? Explain.
(b) What can Whataburger do to improve its mix of inputs – hire more cashiers or fewer? Rent more kiosks or fewer?

Answers

Answer:

a. Whataburger is not using the optimal cost-minimizaing mix of cashier and kiosks.

b. Whataburger should hire more cashier and rent fewer kiosks in order to improve its mix of inputs and minimize the cost

Explanation:

a. According to the given data we have the following:

Let "C" is a cashier.

"K" is a kiosk

MPC = 48 (Marginal Product of Cashier)

MPK = 32 (Marginal Product of Kiosk)

PC = $15 (cashier can be hired for a wage of $15)

PK = $12 (Kiosk rents for $12)

At optimal cost minimization point, (MPC / MPK) = (PC / PK)

(MPC / PC) = (MPK / PK)

(MPC / PC) = (48 / 15) = 3.2

(MPK / PK) = (32 / 12) = 2.67

Since the (MPC / PC) and (MPK / PK) is not equal. It implies Whataburger is not using the optimal cost-minimizaing mix of cashier and kiosks.

b. We have to use the following:

(MPC / PC) > (MPK / PK)

i.e., 3.2 > 2.67

It means Whataburger hire more cashier and rent fewer kiosks in order to improve its mix of inputs and minimize the cost.

The rate of economic growth per capita in france from 1996 to 2000 was 1.9% per year, while in korea over the same period it was 4.2%. Per capita real GDP was $28,900 in france in 2003, and $12,700 in korea. Assume the growth rates for each country remain the same.
1. Compute the doubling time for France’s per capita real GDP.
2. Compute the doubling time for Korea’s per capita real GDP.
3. What will France’s per capita real GDP be in 2045?
4. What will Korea’s per capita real GDP be in 2045?

Answers

Answer:

36.83 years

16.85 years

$63,710.88

$ 71,490.43  

Explanation:

We can use the nper  formula in excel  to compute the doubling time for the capital real GDP of both countries

=nper(rate,pmt,-pv,fv)

FV is the future real GDP which $28,900*2=$57,800 for France while that of Korea is $25,400 ($12,700*2)

PV is the present real GDP

rate is the economic growth rate of 4.2% in Korea and 1.9% in France

France=nper(1.9%,0,-28900,57800)= 36.83  

Korea=nper(4.2%,0,-12700,25400)= 16.85  

In 2045 ,which is 42 years from now the real GDP are shown thus:

=fv(rate,nper,pmt,-pv)=fv(1.9%,42,0,-28900)=$63,710.88  

=fv(rate,nper,pmt,-pv)=fv(4.2%,42,0,-12700)=$ 71,490.43  

There are 100 used laptop g for sale on the market. 40% of them are in good condition, and the rest of them are broken, which is the common knowledge to the owners and the buyers. Owners of broken laptops are willing to sell them for $300. Owners of good used laptops are willing to sell them if the price is above $1600 but will keep them if the price is lower than $1600. There is a large number of potential buyers who are willing to pay $2000 for a good laptop and $600 for a broken laptop. Buyers can't tell good laptops from bad, but original owners know. In equilibrium, what could be the maximum price set for a broken laptop to be sold

Answers

Answer:

In equilibrium the maximum price set for a broken laptop to be sold is $600

Explanation:

According to the given data we have the following:

It is given that 40% laptops are in good condition. This implies that 60% are in bad condition.

In ordert to calculate the maximum price set for a broken laptop to be sold we would have to calculate the expected price that the buyers will be willing to pay for a  laptop as follows:

Expected price=0.60($2000)+0.40($600)

Expected price=$1,200+$240

Expected price=$1,440

As the owners of good laptops are willing to sell their laptops for $1,800, whis is more that $1,440, they will not sell their products.

This implies that only bad laptops are sold in the market. The willingless to pay for the bad laptops is $600

Therefore, In equilibrium the maximum price set for a broken laptop to be sold is $600

Sheridan Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 485 units that cost $66 each. During the month, the company made two purchases: 725 units at $69 each and 364 units at $71 each. Sheridan Company also sold 1198 units during the month. Using the average cost method, what is the amount of ending inventory? (Round average cost per unit to 2 decimal places, e.g. 21.48.)

Answers

Answer:

Value of closing inventory = $25771.04

Explanation:

To calculate the value of ending inventory under a periodic average cost method, we will calculate the average price per unit of inventory at the end of the month. To calculate the average price per unit, we simply divide the total cost of the inventory by the total number of units for the month.

Average cost per unit = Total cost of all units for the month / Total units available for the month

Total cost of all units:

Beginning inventory (485 * 66)            32010

Purchase 1     (725 * 69)                        50025

Purchase 2     (364 * 71)                        25844

Total                                                       107879

Total Units

Beginning Inventory     485

Purchase 1                     725

Purchase 2                    364

Total                              1574

Average cost per unit =   107879 / 1574

Average cost per unit = $68.54

Units of closing inventory = 1574 - 1198     =   376 units

Value of closing inventory =  376 * 68.54

Value of closing inventory = $25771.04

Read the following situation, and then answer the questions.
You have been working in an entry-level position in the Environmental Health and Safety division of a company for the last six months. You spend your time reviewing safety reports, entering them into the database, and compiling statistical analyses of the results for your superior, Ray Blaine. Lately, Mr. Blaine has been asking you when each report will be finished. Following this query, Mr. Blaine often compliments you on the results of your past analyses.
1) What is the most important message your superior is trying to deliver?
A. He is worried about the results of your analysis.
B. He wants to know when the report will be ready.
C. You are ready for a promotion.
2) What can you do to listen more effectively to your superior?
A. Lean forward and make eye contact.
B. Paraphrase his questions in return.
C. Ask questions in return.

Answers

Answer:

1)B

2)C

Explanation:

1) Mr. Blaine wants to know when will the results be ready. He is complimenting to let you know that he has good expectations from you.

2) Asking questions in return lets the other person know that you are interested in the conversation.

Answer:

Question 1 answer is B

Question 2 answer is C

Explanation:

1. From the data in the question, we can tell what your superior has in mind.

- The fact that Mr Blaine has been asking when each report will be finished shows that he is concerned ABOUT THE AMOUNT OF TIME it takes you to complete work on a safety report.

- He often compliments you on the results of your past analyses. This means that he is recertifying that your results come out fine and accurate BUT need to start coming out FASTER. He uses the compliments to lift your spirit so you don't feel downcast by the complaints. So you can be sure that as far as the work is concerned, YOU ARE GETTING IT RIGHT but as far as delivery window is concerned, you are delivering SLOWLY.

So the answer is B - he is most concerned about the timeframe you use to go through each report. He wants you to understand that good timing adds to the quality of a result!

2. The three options here are things you can do, to listen more effectively to your superior. The most important though is C.

You need to ask questions in return!

- Ask questions on the clarification of what exactly you are expected to do, in order to produce results that are both accurate and timely.

- Ask Mr. Blaine how he thinks you should go about it.

- Ask questions where you don't understand

- Ask when exactly you are to submit each result

After he replies, put his advice and corrections into practice.

Technology transfer agreements: Select one: a. protect "distinctive" or "famous" marks from unauthorized uses only when confusion is likely to occur. b. permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment. c. prevent an intellectual property owner from granting to another the right to use protected technology in return for some form of compensation. d. assert that priority of trademark rights in the United States depends upon the priority of use anywhere else in the world.

Answers

Answer:

b. permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment.

Explanation:

Technology transfer agreements can be defined as a contractual agreement between two parties, the licensor (rightful owner of the patent or trademark) and lincesee, granting them the legal rights to use an intellectual property under the stated terms and conditions binding the contract.

An intellectual property is an embodiment of the creative work such as trademark, patent or copyright of an individual, usually an inventor.

Technology transfer agreements allows an intellectual property owner to license or grant to another the right to use its protected technology in return for some form of compensation and permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment because this will further enhance foreign direct investments, expansion and deeply foster world trade among countries.

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,077 kilograms of plastic. The plastic cost the company $13,708. According to the standard cost card, each helmet should require 0.62 kilograms of plastic, at a cost of $7.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets?
2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)

Answers

Answer:

1. 1,922

2. $13,454

3. $254 Unfavorable

4. 831 Favorable

$1,085 Unfavorable

Explanation:

1. The computation of standard quantity of kilograms of plastic is shown below:-

Standard quantity of kilograms allowed = Helmets manufactured × Required kilograms of plastic

= 3,100 × 0.62

= 1,922

2. The computation of standard materials cost allowed is shown below:-

Standard cost allowed for actual output = Standard quantity of kilograms allowed × Cost per kilogram

= 1,922 × $7

= $13,454

3. The computation of materials spending variance is shown below:-

Materials spending variance = Plastic cost - Standard cost allowed for actual output

= $13,708 - $13,454

= $254 Unfavorable

4. The computation of materials price variance and the materials quantity variance is shown below:-

Materials price variance = Plastic cost - (Plastic in kilograms × Cost per kilograms)

= $13,708 - (2,077 × $7)

= 831 Favorable

Materials quantity variance = Cost per kilograms × (Plastic in kilograms - Standard quantity of kilograms allowed)

= $7 × (2,077 - 1,922)

= $1,085 Unfavorable

So, we have applied the above formulas.

Cost of goods manufactured equals $55,000 for 2020. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2020 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?

Answers

Answer:

$51,500

Explanation:

The computation of the cost of goods sold for the year is shown below:

As we know that

Cost of Goods Sold = Beginning balance of Finished Goods Inventory + Cost of Goods Manufactured – Ending balance of Finished Goods Inventory

= $2,000 + $55,000 - $5,500

= $51,500

We simply applied the cost of goods sold formula by taking the three items into the computation part

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 22% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?
a. $32.69
b. $26.57
c. $27.37
d. $28.97
e. $23.39

Answers

Answer:

Option B ,$26.57 is correct

Explanation:

The cost of equity =Rf+Beta*Mrp

Rf is the risk free rate of 3.00%

Beta of equity is 1.20

Mrp is the market risk premium which is 5.50%

Cost of equity=3.00%+(1.20*5.50%)=9.60%

Stock price =present value of dividends+present value of terminal value

D1=$1.25*(1+22%)/(1+9.6%)^1=$ 1.39

D2=$1.25*(1+22%)^2/(1+9.6%)^2=$ 1.55  

D3=$1.25*(1+22%)^3/(1+9.6%)^3=$ 1.72  

D4=$1.25*(1+22%)^4/(1+9.6%)^4=$ 1.92  

terminal value=year 4 dividend/(r-g)

year 4 dividend=$1.25*(1+22%)^4= 2.77  

r is the cost of equity of 9.6%

g is the dividend afer year 4 which is 0%

terminal value= 2.77/(9.6%-0%)=$ 28.85  

present value of terminal value= 28.85/(1+9.6%)^4=$ 19.99  

Total present values=$ 1.39+$ 1.72+$ 1.92  +$ 1.92 +$ 19.99  =$26.58

According to the question Option B ,$26.57 is correct

How to calculate of common stock?

When The cost of equity = [tex]Rf+Beta "/times" Mrp[/tex]

After that, Rf is the risk free rate of 3.00%

then Beta of equity is[tex]1.20[/tex]

After that Mrp is the market risk premium which is 5.50%

So that, Cost of equity 3.00%+(1.20*5.50%)=9.60% = 9.60%

Then The Stock price is = present value of dividends + present value of terminal value

Now, D1 is = $[tex]1.25 "/times" (1+22[/tex]%[tex])/(1+9.6[/tex]%)^[tex]1=$ 1.39[/tex]

Then, D2 is = $[tex]1.25 "/times" (1+22[/tex]%[tex])^2/(1+9.6[/tex]%)^[tex]2=$ 1.55[/tex]  

Then D3 is = $1.25 "/times" (1+22%)^3/(1+9.6%)^3=$ 1.72  

After that D4 is = $[tex]1.25*(1+22[/tex]%[tex])^4/(1+9.6[/tex]%)^[tex]4=$ 1.92[/tex]

Then the terminal value is = year 4 dividend/(r-g)

Then year 4 dividend is = $[tex]1.25×(1+22[/tex]%)^4= 2.77  

Then r is the cost of equity of 9.6%

Now, g is the dividend after year 4 which is 0%

After that terminal value is = 2.77/(9.6%-0%)=$ 28.85  

Then present value of terminal value is = [tex]28.85/(1+9.6[/tex]%)^4=$ 19.99  

Thus, The Total present values is =$ [tex]1.39+$ 1.72+$ 1.92  +$ 1.92 +$ 19.99[/tex]  =$26.57

Therefore Option B is $26.57

Find out more information about Common stock here:

https://brainly.com/question/24334747

A stock you own earned: $200, $500, $100, and $700 over the last four years. What was the mean annual gain in value over the four years?

Answers

Answer:

$375

Explanation:

200+500+100+700= 1,500

1,500/4=375

Answer:

The answer is $375 (B)

Explanation:

First, add all the numbers (200, 500, 100, 700) to get 1,500

Divide by the mean which is 4 (1500/4)

Here's your answer $375 (B)

Hope this helps!

"Donald is a 21-year-old full-time college student. During 2019, he earned $2,550 from a part-time job and $1,150 in interest income. If Donald is a dependent of his parents, what is his standard deduction amount

Answers

Answer:

His standard deduction amount would be of $ 2,900

Explanation:

In order to calculate his standard deducion amount If Donald is a dependent of his parents we would have to make the following calculation:

Since His earned income is more than $1,150, therefore, Standard Deduction would be= $2,550 + $350

Standard Deduction would be= $2,900

Therefore, If Donald is a dependent of his parents, his standard deduction amount would be of $ 2,900

Gelb Company currently manufactures 53,500 units per year of a key component for its manufacturing process. Variable costs are $2.95 per unit, fixed costs related to making this component are $67,000 per year, and allocated fixed costs are $64,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 53,500 units and buying 53,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier

Answers

Answer and Explanation:

The computation of the total incremental cost is shown below;

For making 53,500 units

Particulars Relevant     Relevant            Total

                       Per Unit    Fixed Costs        Relevant Costs

Variable Cost

Per Unit           $2.95                          $157,825

                                                                    (53,500 units × $2.95)

Fixed

Manufacturing

Costs                        $67,000           $67,000

Total Incremental Costs to Make  $224,825

For making 53,500 units

Particulars Relevant     Relevant            Total

                       Per Unit    Fixed Costs        Relevant Costs

Purchase

Price

Per Unit        $3.50                                  $187,250

                                                                    (53,500 units × $3.50)

Total Incremental Cost to Buy   $187,250

The company should buy the component from the outside supplier as it saves the cost for ($224,825 - $187,250) = $37,575 plus the buying cost is less than the making cost

During the​ year, direct labor costs of​ $30,000 were​ incurred, manufacturing overhead totaled ​$42,000, materials purchased were​ $27,000, and selling and administrative costs were​ $22,000. Champagne sold​ 25,000 units of product during the year at a sales price of​ $5.00 per unit. What were the total manufacturing costs for the year assuming ​$2 comma 080 of indirect materials were used during the​ period?

Answers

Answer:

Using the models for total manufacturing cost that includes just direct labour costs, direct materials cost and overhead costs, total manufacturing cost = $99,000

Using the model that includes selling and administrative costs & indirect materials cost, total manufacturing cost = $123,080

Explanation:

Total manufacturing cost is a sum of the amount of cost incurred by a business to produce goods in a reporting period.

It usually consists of direct labour costs, direct materials cost and overhead costs.

In some models, the selling and administrative costs & cost of indirect materials are included.

Direct labour cost = $30,000

Manufacturing overhead costs = $42,000

Direct materials cost = $27,000

Total manufacturing cost = 30000 + 42000 + 27000 = $99,000

Selling and Administrative costs = $22,000

Indirect materials cost = $2,080

Total materials cost including selling and administrative costs & indirect materials cost = 99000 + 22000 + 2080 = $123,080

Hope this Helps!!!

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