Answer:
Rise;rise;rise;remain unchanged.
Explanation:
The new classical theory also known as the neoclassical economic theory is one that repudiates and tends to restructure the John M. Keynes theory of macroeconomics, popularly referred to as the Keynesian Macroeconomics theory.
The new classical theory argues that efficient demand and supply is the most important feature or key behind the level of output, pricing, and consumption of goods and services by the people at a specific period of time in a country. Also, the new classical theory assumes that the wages of the employees in a country is flexible in contrast to the Keynesian macroeconomic theory.
Suppose that the government implements expansionary fiscal policy that raises aggregate demand, but the policy is unanticipated. According to new classical theory, in the short run the price level would rise and Real Gross Domestic Product (GDP) would rise. In the long run, new classical theory would predict that the price level would rise compared to its original long-run equilibrium level and that Real Gross Domestic Product (GDP) would remain unchanged.
When the government sets an effective price floor suppliers are helped and consumers are helped. suppliers are hurt and consumers are helped. suppliers are helped and consumers are hurt. This is an incorrect answer. Have a nice day! supply increases due to the increase in price.
Answer:
suppliers are helped and consumers are hurt.
Explanation:
A price floor is when the government or an agency of the government sets the least price a good or service can be purchased.
A price floor is usually set above equilibrium price. As a result, the profit earned by sellers increase while the good becomes more expensive for consumers.
I hope my answer helps you
Helix Company has been approached by a new customer to provide 2,000 units of its regular product at a special price of $6 per unit. The regular selling price of the product is $8 per unit. Helix is operating at 75% of its capacity of 10,000 units. Identify whether the following costs are relevant to Helix's decision as to whether to accept the order at the special selling price. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.50 per unit shipping cost. There will be no additional administrative expenses because of this order. Calculate the operating income from the order.
Answer:
Helix decision would be to accept this order at the special price because from the calculations they will still have a net income of $2,000 at this special price of $6 per unit
Explanation:
Selling price: at $6 per unit; This is a relevant cost ; Revenue = ($6*2000) units) $12,000
_________________________
Direct material cost: at $1 per unit; This is a relevant cost; Revenue = (1 * 2000) $2000
____________________________
Direct labor cost: at $2 per unit; This is a relevant cost ; Revenue = (2 * 2000) $4000
____________________________
Variable manufacturing overhead: at $1.50 per unit; This is a relevant cost; Revenue = (1.50 * 2000) $3,000
____________________________
Fixed manufacturing overhead: at $0.75 per unif; This is not a relevant cost; Revenue = $0 (not relevant)
_____________________________
Regular selling expenses: at $1.25 per unit; This is not a relevant cost; Revenue = $0(not relevant)
______________________________
Additional selling expenses(shipping cost) : at $0.50 per unit; This is a relevant cost; Revenue = (0.50 * 2000) $1,000
______________________________
Administrative expenses: at $0.75 per unit; This is not a relevant cost; Revenue = $0
__________________________
Total operating expenses: Sum of all relevant cost = (Direct material cost + Direct labor cost + Variable manufacturing overhead + Additional selling expenses) = ($2,000 + $4,000 + $3,000 + $1,000) = $10,000
__________________________
Net income : (Selling price - Total operating expenses)= ($12,000 - $10,000) = $2,000
________________________
Yes, Helix should accept the order at the special price
______________
Helix decision would be to accept this order at the special price because from the calculations they will still have a net income of $2,000 at this special price of $6 per unit
Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July August September
Cash receipts $20,000 $26,000 $40,000
Cash payments 28,000 30,000 22,000
Required:
Prepare a cash budget for July, August, and September.
Answer:
Karim Corp
Cash Budget
July August September
Cash inflows: $20,000 $26,000 $40,000
Cash outflows: ($28,000) ($30,000) ($22,000)
Monthly cash flow: ($8,000) ($4,000) $18,000
Monthly interests: $0 ($76) ($116.76)
Initial cash balance: $8,400 $8,000 $8,000
Ending cash balance: $400 $3,924 $25,883.24
Required bank loan: $7,600 $4,076 $0
Payment of bank loan: $0 $0 ($11,676)
Total $8,000 $8,000 $14,207.24
Explanation:
A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.
The Bloomington Bicycle Bearing company wishes to use a level output plan to plan for the rest of the year. Here is the forecasted demand for all bearing types: Month Demand May 800 Jun 650 July 720 August 690 Sept 530 Oct 610 Nov 630 Dec 610 If the beginning inventory is 300 units and the desired ending inventory at the end of December is 500 units, how many units will be in inventory at the end of August
Answer:
August ending Inventory 160 units
Explanation:
It wishes a level output AKAK same production over the rest of the year
total demand:
we add up the demand of the moths and our desired ending inventory
then we subtract the beginning and divide over the eight months
800 + 650 + 720 + 690 + 530 + 610 + 630 + 610 + 500 desired ending - 300 beginning = 5,440
We divide by 8 = 680 per month
Now we can do the budget up to August to solve for the ending inventory
[tex]\left[\begin{array}{ccccc}&Beg&Demand&Production&Ending\\May&300&800&680&180\\June&180&650&680&210\\July&210&720&680&170\\August&170&690&680&160\\\end{array}\right][/tex]
Ending = Beginning + Production - Demand (consumed)
Suppose a stock had an initial price of $92 per share, paid a dividend of $2.30 per share during the year, and had an ending share price of $75.50. a. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield
Answer:
(a) Percentage return = -$14.20 ÷ $92 = -15.43%
(b) Dividend Yield = $2.30 ÷ $92 = 2.50%
Explanation:
Initial price per share= $92.00
Ending share price = $75.50
Capital loss = $75.50 - $92.00 = -$16.50
Dividend = $2.30
Net return = -$16.50 + $2.30 = -$14.20
(a) Percentage return = (-$14.20 ÷ $92) × 100% = -15.43%
(b) Dividend Yield = ($2.30 ÷ $92) × 100% = 2.50%
Corn is an input in the production of tortillas. If you don't know anything about the demand curve, which of the following can you say for certain will happen in the market for tortillas if there is an increase in the price of corn ?
a. overall supply will decrease
b. overall supply will increase
c. quantity supplied will decrease
d. quantity supplied will increase
Answer:
3.14
Explanation:
Torino Company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $3,500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Answer:
The answer is $4,300
Explanation:
Solution
We recall that:
Torino company has 1,200 shares of = $50 per value
The cumulative and nonparticipating preferred stock of = 6.0%
They also have 13,00 shares
Common stock outstanding = $10 per value
Total dividends = $3,500
Now,
The first year amount of dividend that was paid in the first year of working is stated as follows:
6% * 1300 * 50 = $3900
The paid dividend = $3,500
The amount amount payable during the second year to the common stakeholders is
=$3900 + 400 = $4,300
Note: preferred shares are cumulative, for this the amount paid to the stakeholders was $4,300
Stellar Corporation began operations on January 1, 2014. During its first 3 years of operations, Stellar reported net income and declared dividends as follows.Net incomeDividends declared2014 $49,500 $ –0– 2015 128,600 59,600 2016 161,000 58,800 The following information relates to 2017.Income before income tax $231,000 Prior period adjustment: understatement of 2015 depreciation expense (before taxes) $32,000 Cumulative decrease in income from change in inventory methods (before taxes) $44,800 Dividends declared (of this amount, $32,000 will be paid on January 15, 2018) $118,400 Effective tax rate 40 %Prepare a 2017 retained earnings statement for Stellar Corporation. (List items that increase adjusted retained earnings first.)
Answer:
$194,820
Explanation:
Retained earnings at the end of 2017 is computed thus:
2014 net income $49,500
2014 dividends ($0)
2014 retained earnings $49,500
2015 net income $128,600
2015 dividends ($59,600)
2015 retained earnings $118,500
2016 net income $161,000
2016 dividends ($58,800)
2016 retained earnings $220,700
understatement of depreciation expense
after tax impact $32,000-(40%*$32,000) ($19,200)
After tax impact of decrease in net income due
to inventory method $44,800-($44,800*40%) ($26,880)
Adjusted retained earnings for 2016 $174,620
net income for 2017 $231,000-($231,000*40%) $138,600
dividends declared for 2017 ($118,400)
Retained earnings for 2017 year end $194,820
Retained earnings in the adjustment in each is the retained earnings brought forward plus the net income for the current year minus dividends declared for the year
Charles is a stay-at-home parent who lives in New York City and teaches tennis lessons for extra cash. At a wage of $25 per hour, he is willing to teach 6 hours per week. At $35 per hour, he is willing to teach 16 hours per week. Using the midpoint method, the elasticity of Teresa’s labor supply between the wages of $25 and $35 per hour is approximately _________ , which means that Teresa’s supply of labor over this wage range is _________
Answer:
2.75, elastic.
Explanation:
Measure labor supply elasticity of Individual T's as follows :
[tex]\bf Elasticity=\frac{Percent \;change\;in\;labour\;hr}{\frac{Average\;labour\;hour}{\frac{Percent\;change\;in\;wage\;price}{Average\;wage\;price} } }[/tex]
[tex]\bf =\frac{16-6}{\frac{16+6}{\frac{2}{\frac{35-25}{\frac{35+25}{2} } } } }[/tex]
[tex]\bf=\frac{10}{\frac{11}{\frac{10}{30} } }[/tex]
[tex]\bf=\frac{0.91}{0.33}[/tex]
[tex]=2.75[/tex]
Therefore, the elasticity of the labour supply of Individual T's is approx. of earnings per hour. 2.75, meaning that the work supply of Person T's is elastic across this wage range
Why Do Organizations not change in response to environmental pressures?
Answer:
It often proves difficult to actually realize the change that you have come up with. Especially when it comes to cultural or behavioral change. We want to show that change is not so much something that you have to get others to join. You have to make your change part of it
44,000 shares of common stock outstanding at a market price of $32 a share. The common stock will pay a $1.50 annual dividend and has a dividend growth rate of 3.5 percent. There are 7,500 shares of 9% preferred stock outstanding at a market price of $92 a share. The outstanding bonds mature in 11 years, have a total face value of $825,000, a coupon rate of 6.5 percent, a face value per bond of $1,000, and a market price of $989 each. The tax rate is 35 percent. What is the weight of equity in to be use to calculate the firm's WACC?
Answer:
The weight of equity in to be use to calculate the firm's WACC is 0.48 or 48%
Explanation:
The weight of equity to be used in firm's WACC computation is market value of equity divided by the sum of market value of equity ,preferred stock and bonds.
Market value of equity=44,000*$32 =$1,408,000.00
Market value of preferred stock=7,500*$92 =$690,000
Market value of bonds=$825,000*$989/$1000=$815,925.00
Sum of market values =$ 2,913,925.00
Weight of equity=market value of equity/ Sum of market values=$1,408,000.00/$2,913,925.00= 0.48 =48%
You put money into an account that earns a 5 percent nominal interest rate. The inflation rate is 2 percent, and your marginal tax rate is 40 percent. What is your after-tax real rate of interest
Answer: 1%
Explanation:
The Nominal interest rate has not been adjusted for inflationary effects yet and as such is considered overstated.
The Real Interest rate has been adjusted for inflation and is believed to show the actual return one receives.
Tax is calculated on the Nominal rate.
After tax Nominal Rate = 5% * ( 1 - 40%)
= 3%
Then adjust for inflation to find real rate,
= 3% - 2%
= 1%
The After-tax real rate is 1%.
You buy a share of The Ludwig Corporation stock for $21.40. You expect it to pay dividends of $1.07, $1.1449, and $1.2250 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.22 at the end of 3 years.
A. Calculate the growth rate in dividends.
B. Calculate the expected dividend yield .
C. Assuming the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get the expected total rate of return. What is the stock
Answer:
A. the growth rate in dividends = 7.00%
B. Expected dividend yield = 4.67%
C. Stock's xpected total rate of return = 11.67%
Explanation:
A. Calculate the growth rate in dividends
Current dividend growth rate = (Current year dividend - Previous year dividend) / Previous year dividend
Therefore,
Year 2 dividend growth rate = ($1.1449 - $1.07) / $1.07 = 0.0700, or 7.00%
Year 3 dividend growth rate = ($1.2250 - $1.1449) / $1.1449 = 0.0700, or 7.00%
This shows that;
Year 2 dividend growth rate = Year 3 dividend growth rate = 7.00%
B. Calculate the expected dividend yield
Dividend yield = Dividend per share / Market price per share
Therefore,
Expected dividend yield = Expected dividend per share in year 3 / Expected market price per share in year 3 = $1.2250 / $26.22 = 0.0467, or 4.67%
C. Assuming the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get the expected total rate of return. What is the stock
Note: The complete statement is "What is this stock’s expected total rate of return?"
Stock's xpected total rate of return = Growth rate + Expected dividend yield in 3 = 7.00% + 4.67% = 11.67%.
Overapplied factory overhead would result if: Group of answer choices a. Factory overhead costs incurred were greater than costs charged to production. b. The plant was operated at less than normal capacity. c. Factory overhead costs incurred were less than costs charged to production. d. Factory overhead costs incurred were unreasonably large in relation to units produced.
Answer:
c. Factory overhead costs incurred were less than costs charged to production.
Explanation:
An overapplied factory overhead represents the excess amount of overhead used during a manufacturing period compared to the actual overhead incurred during the production or manufacturing period.
Simply stated, an overapplied factory overhead is the amount by which the estimated overhead is above the actual overhead incurred by a factor in the course of production.
Hence, an overapplied factory overhead would result if factory overhead costs incurred were less than costs charged to production.
This simply means that, if the factory overhead cost actually incurred in a production period is less than the estimated factory overhead cost applied, this is an overapplied factory overhead. If reverse of the above is the case, then it is referred to as underapplied factory overhead.
Additionally, if the difference between the two overhead cost is negative, then it is an overapplied factory overhead.
At December 31, 2010, Aaliyah Company reports the following results for its calendar year.
Cash sales........... $1905,000
Credit sales......... 5682000
In addition, its unadjusted trial balance includes the following items
Accounts receivable $1,270,100 debit
Allowance for doubtful accounts 16,580 debit
Required
1. Prepare the adjusting entry for Aaliyah Co. to recognize bad debts under each of the following independent assumptions:
a. Bad debts are estimated to be 1.5% of credit sales.
b. Bad debts are estimated to be 1% of total sales.
c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.
2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet assuming that an aging analysis estimates that 5% of year-end accounts receivable are uncollectible.
Answer:
1.
Debit Credit
31-Dec-10
(a) Bad debt Expense A/c 85,230
To Allowance for Doubtful Accounts A/c 85,230
(b) Bad debt Expense A/c 75,870
To Allowance for Doubtful Accounts A/c 75,870
(c) Bad debt Expense A/c 80,085
To Allowance for Doubtful Accounts A/c 80,085
2.
Current Assets Amount in $ Amount in $
Account Receivables 1,270,100
Less: Allowance for doubtful accounts -85,230 1,184,870
Explanation:
1. In order to prepare the adjusting entry we would have to make the following calculations:
(a) Bad debts estimated =1.5% on Credit sales =$5682,000 *1.5% =$85,230 (b) Bad debts estimated =1% on Total sales =($5682,000 +$ 1905,000) *1% =$75,870
(c ) Bad debts estimated =5% on year end receivables + Debit Balance =5% *1270100 +16580 =$80085
Debit Credit
31-Dec-10
(a) Bad debt Expense A/c 85,230
To Allowance for Doubtful Accounts A/c 85,230
(b) Bad debt Expense A/c 75,870
To Allowance for Doubtful Accounts A/c 75,870
(c) Bad debt Expense A/c 80,085
To Allowance for Doubtful Accounts A/c 80,085
2. Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet as follows:
Current Assets Amount in $ Amount in $
Account Receivables 1,270,100
Less: Allowance for doubtful accounts -85,230 1,184,870
Chobani's equipment runs for 10 hours and must be idle for 4 hours while being cleaned. Its plants operate day and night all week long. What are the implications for the company's purchasing, inventory control, scheduling and quality control functions. Your answer should be detailed and well thought out.
Answer:
For the company's purchasing ;leasing the machine for the active period i.e 10 hours a day would be cheaper because the cost of cleaning and maintenance would be eliminated
For the company's inventory control; if the company leases the equipment that would reduce it's setup cost keeping its inventory low
For the company's scheduling; scheduling deals with completing a job within a given time and it is very essential to utilize the productive time
For the company's quality control functions; the company has to ensure that in as much as it has to meet its production schedule the quality of the products should be paramount
Explanation:
Running time = 10 hours. Idle time = 4 hours
The implications of the machine:
For the company's purchasing ; since the equipment has to be used everyday and after the 10 hours it will run, it has to be ideal for 4 hours for it to be cleaned and maintained every day. therefore the purchasing department of the company will have to sort for an alternative equipment which would be less expensive and would have less idle time during cleaning and maintenance. but if this alternative is more expensive, then leasing the machine for the active period i.e 10 hours a day would be cheaper because the cost of cleaning and maintenance would be eliminated
For the company's inventory control : inventory for every company is the stock of the company that remains unsold and every company should aim to keep this as low as possible and one way is by reducing setup costs and safety cost. if the company leases the equipment that would reduce it's setup cost keeping its inventory low
For the company's scheduling : scheduling deals with completing a job within a given time and it is very essential to utilize the productive time i.e 10 hours of the equipment in order to avoid unwanted direct and indirect cost.
For the company's quality control functions: As the equipment runs for 10 hours day and night in other to meet up with the production and scheduling the quality of the products might be adversely affected hence the company has to ensure that in as much as it has to meet its production schedule the quality of the products should be paramount
Classify the following activities in providing medical services at Healthsmart Clinic.
Activity Control Level Activity Driver
A. Registering patients
B. Cleaning beds
C. Stocking examination rooms
D. Washing linens
E. Ordering medical equipment
F. Heating the clinic
G. Providing security services
H. Filling prescriptions
1. classify each activity as unit level (U), batch level (B), product level (P), or facility level (F).
2. identify an activity driver that might be used to measure these activities at the clinic.
Answer:
The following Classification of activities for medical services at health smart clinic is categorized below
Explanation:
Solution
Given that:
The following activities for providing medical services at health smart Clinic is stated below:
Activity Control level Activity Driver
A. Patient registering - Unit level - Number of patients
B. Cleaning beds - Unit level - bed, patients, labor hours
C. Stocking examination rooms - Facility Level - Number of rooms
D. Washing linens - Batch level - Loads
E. Ordering medical equipment - Facility Level - Cost of equipment, Number of suppliers
F. Heating the clinic - Facility Level - Degree days, space
G. Providing security services - Facility level - No. of days , area covered
H. Filing prescriptions - Batch level - No. of prescriptions
A metal-cutting operation has a target value of 20 and consistently averages 19.8 with a standard deviation of 0.5. The design engineers have established an upper specification limit of 22 and a lower specification limit of 18. What is the process capability index? A) 1.20 B) 1.33 C) 1.46 D) 1.66 12. Following Q11, what is the process capability ratio? A) 1.33 B) 1.50 C) 1.66 D) 2.00
Answer:
process capability index = Cpl ( lower ) = 1.20 ( A )
The process capability ratio = 1.33
Explanation:
Target value = 20
mean = 19.8
standard deviation = 0.5
upper specification limit = 22
lower specification limit = 18
The process capability index =
Cpu = [tex]\frac{22- 18}{6(0.5)}[/tex] = 4 / 3 = 1.33
Cpk ( upper ) = (22 - mean ) / 3 * std
= ( 22 - 19.8 ) / ( 3 * 0.5 ) = 2.2 / 1.5 = 1.47
Cpl ( lower ) = ( mean - 18 ) / ( 3 * 0.5 ) = ( 19.8 - 18 ) / 1.5
= 1.8 / 1.5 = 1.2
hence the process capability index is Capability index with the minimum value which is Cpl ( lower ) = 1.20 ( A )
The process capability ratio = 1.33 refer to Cpu equation
When a project has a "hard gate," like being ready on time, how does that affect normal success criteria? Is it fair to judge a project with a critical completion date by normal project success standards? Why or why not?
Explanation:
The issue that determines the success of a project is usually attributed to managing the scope of the project. Therefore, in some projects, the deadline for completion is not necessarily the most fundamental criterion that will incur your success.
Every project has a defined deadline for the beginning and the end, so the project management must be planned so that the time is sufficient for the execution of its tasks that will lead to the achievement of the objectives and goals.
Therefore, it is not fair to judge a project with a critical completion date, due to the fact that the project was developed and controlled so that success was related to other more important variables for such a project, not only time, but also its effectiveness , cost-benefit, quality, costs, etc.
Tamarisk Corporation had the following 2020 income statement. Sales revenue $189,000 Cost of goods sold 129,000 Gross profit 60,000 Operating expenses (includes depreciation of $20,000) 54,000 Net income $6,000 The following accounts increased during 2020: Accounts Receivable $14,000, Inventory $10,000, Accounts Payable $12,000. Prepare the cash flows from operating activities section of Tamarisk’s 2020 statement of cash flows using the indirect method.
Answer:
Kindly check attached picture for Tamarisk Corporation Statement Of Income 2020 (indirect method)
An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Rajiv can either mow 2 lawns or wash 1 car; Yakov can either mow 1 lawn or wash 1 car; and Charles can either mow 1 lawn or wash 2 cars. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns.
(A) All three spend all their time washing cars
(B) All three spend half their time on each activity.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
(D) Identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Yakov Charles
Answer:
(A) All three spend all their time washing cars
In 10 hours Rajiv will wash 10 cars, because he can wash 1 car per hour.
Yakov will also wash 10 cars because he can wash 1 car per hour.
And, Charles will wash 20 cars because he can wash 2 cars per hour.
(B) All three spend half their time on each activity.
In 5 hours, Rajiv will mow 10 lawns, and wash 5 cars.
Yakov will mow 5 lawns and wash 5 cars.
And Chalres will mow 5 lawns and wash 10 cars.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
Rajiv will mow 10 lawns and wash 10 cars.
Yakov will wash 10 cars.
And Charles will mow 10 lawns.
(D) Identify the opportunity cost of washing cars for each worker.
For Rajiv, the opportunity cost of washing 1 car is not mowing 2 lawns.
For Yakov, the opportunity cost is not mowing 1 lawn.
For Charles, the opportunity cost is not mowing half a lawn.
A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: Location (X,Y) A 7,2 B 4,7 C 5,5 D 6,2 E 8,4 If the amount of fabric shipped to each plant are equal, what is the optimal location for the fabric plant?
Answer:
(6,4)
Explanation:
The computation of optimal location for the fabric plant is shown below:-
X Y
A 7 2
B 4 7
C 5 5
D 6 2
E 8 4
Total 30 20
[tex]\bar X = \frac{Total\ of\ X}{Total\ number\ of\ locations}[/tex]
[tex]\bar X = \frac{30}{5}[/tex]
= 6
[tex]\bar Y = \frac{Total\ of\ Y}{Total\ number\ of\ locations}[/tex]
[tex]\bar Y = \frac{20}{5}[/tex]
= 4
So, the optimal location for the fabric plant is (6,4)
Suppose you are an analyst in the oil refinery industry and are responsible for estimating the equilibrium price and quantity of home heating oil. To do so, you must consider factors that can affect the supply of and demand for heating oil.
Determinants of the demand for heating oil include household income, the price of an oil furnace (a complement to heating oil) and the price of natural gas (a substitute for heating oil). Determinants of the supply of heating oil include the cost of crude oil and the cost of refining crude oil into home heating oil.
1. Suppose that all of the determinants of the supply and demand for heating oil are equal to their initital values. The equilibrium quantity in this market is ___ barrels of heating oil per day,
A. 60,000
B. 50,000
C. 70,000
D. 80,000
E. 40,000
2. and the equilibrium price is ____ per barrel.
A. $40
B. $70
C. $60
D. $50
E. $80
Answer:
1. 80,000
2. $40 per barrel
Explanation:
1. As we can see from the table provided The equilibrium quantity in this market is 80,000 barrels of heating oil per day, as quantity demanded match quantity supplied
2. As we can see from the table provided The equilibrium price is $40 per barrel as in this cost there is an intersection of quantity demanded and quantity supplied. In other words the equilibrium price and quantity could be find out when the quantity demanded equal to quantity supplied
It may seem surprising that the CEO selected to replace Steve Jobs was hired from within the firm. When considering who to appoint as CEO, the board had to consider many factors. What condition existed at Apple that would have suggested a preference to hire from outside?
Answer: Apple's need to continually innovate
Explanation:
Here is the complete question:
may seem surprising that the CEO selected to replace Steve Jobs was hired from within the firm. When considering who to appoint as CEO, the board had to consider many factors. What condition existed at Apple that would have suggested a preference to hire from outside?
a. Apple's need to reverse recent poor performance
b. Appreciation of Apple's culture and core values
c. Apple's need to continually innovate
d. The need for the CEO to know the firm's core competencies as well as be able to develop new ones
Answer:
In 2011, after the resignation of Steve Jobs resigned as the Chief Executive Officer of Apples, Tim Cook became the chairman of the board, and was named as the new chief executive officer of Apple Inc.
Steve Cook was already working with Apple and he knew the culture and core values and it'll be easier to develop be ones as he knew the firm's core competencies.
The condition that existed at Apple which would have suggested a preference for them to hire from outside will be the need to continually innovate.
The company's culture focuses on
the maintenance of a high level of innovation which involves creativity coupled with a mindset which challenges standards and conventions. In line with the innovation value, hiring from outside might have been preferable.
In the context of the competitive environment of business, unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them. a. True b. False
Answer:
False
Explanation:
Bleeding edge firms provide products that are untested and carry a high risk. Products are unreliable and lead adopters stand the risk of making big losses in event that the product is not well received in the market
Leading edge firms on the other hand deal in products that are well tested and accepted by the market.
So the statement that - unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them. Is not true
Products offered by bleeding edge firms are not embraced by the market as they are untested and risky
A firm expects to have net income of $5,000,000 during the next year. The company’s target capital structure is 35% debt and 65% equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $6,000,000. If SL Computer follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year’s dividend, then what is the firm’s expected dividend payments?
Answer:
$1,100,000
Explanation:
The firm expected to have 5,000,000 as net Income
Capital Structure; Debt=35% , Equity= 65%
$6,000,000 is determined to be the Optimal capital budget for the coming year
The firm’s expected dividend payments following a residual distribution policy is = Net Income – [Total Capital Budget x Equity Ratio]
Where Net Income =5,000,000 Total capital budget =6,000,000 Equity Ratio= 65%
Hence Total Dividend Payment = $5,000,000 – [$6,000,000 x 65%]
= $5,000,000 - $3,900,000
= $1,100,000
The firm’s expected dividend payments is = $1,100,000,
The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2018 2019 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses $920,000 620,000 300,000 290,000 $1,840,000 1,240,000 600,000 340,000 Net income 10,000 260,000 Additional Information a. Sales and production data for these first two years follow. 2019 30,000 40,000 2018 Units produced Units sold 30,000 20,000 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($300,000/30,000 units) S 5 10 Total product cost per unit $31 . Selling and administrative expenses consist of the following 2018 2019 Variable selling and aeministrative expenses ($2.50 per unit) Fixed selling and administrative expenses 50,000 $100,000 240,000 240,000 Total selling and administrative expenses $290,000 $340,000 neck my Work Required:Prepare income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2018 2019 Sales 920,000 1,840,000 Less: Variable costs Variable overhead Variable selling and administrative expenses 50,000 100,000 Direct labor Direct materials 50,000 100,000 Total variable costs 900,000 Contribution margin 450,000 Less: Fixed expenses 300,000 240,000 300,000 Fixed overhead 240,000 Fixed selling and administrative costs 540,000 540,000 Total foxed expenses (90,000) 360,000 Net income (loss)
Answer:
DOWELL Company Variable Costing Income Statements for 2018 and 2019:
2018 2019
Sales 920,000 1,840,000
Less: Variable costs
Total variable costs 470,000 940,000
Contribution margin 450,000 900,000
Less: Fixed expenses:
Fixed selling costs 300,000 300,000
Fixed administrative costs 240,000 240,000
Total fixed expenses 540,000 540,000
Net income (loss) (90,000) 360,000
Explanation:
a) Dowell Company Income Statements under absorption costing:
2018 2019
Sales $920,000 $1,840,000
Cost of goods sold 620,000 1,240,000
Gross margin 300,000 600,000
Selling & Admin. Expenses 290,000 340,000
Net Income 10,000 260,000
b) Production & Sales Data:
Units Sold Units Produced
2018 20,000 30,000
2019 30,000 40,000
c) Variable costing and absorption costing produce different net income results. Variable costing takes into consideration the variable costs of production to produce a contribution while absorption costing considers the cost of goods sold to produce the gross profit. Variable costing is more of a management accounting technique for decision making while absorption costing follows the financial accounting procedures.
The Blaine Development Corporation (BDC) is reconsidering the Lummi Resort Hotel project. It would be located on the picturesque banks of Birch Bay and have its own championship-level golf course. The cost to purchase the land would be $1 million, payable immediately. Construction costs would be approximately $2 million, due at the end of year 1. However, the construction costs are uncertain. These costs could be up to 20 percent higher or lower than the estimate of $2 million with an equal chance (uniform distribution). BDC’s best estimate for the annual operating profit to be generated in years 2, 3, 4, and 5 is $700,000. Due to the great uncertainty, the estimate of the standard deviation of the annual operating profit in each year also is $700,000. Assume that the yearly profits are statistically independent and follow the normal distribution. After year 5, BDC plans to sell the hotel. The selling price is likely to be somewhere between $4 and $8 million (assume a uniform distribution), and revenue will be received in year 5. Interest has been r = 5% (and you can ignore inflation), so you can simplify your net present value (NPV) calculation to be
NPV = summation of [ (pi(t)-c(t)) / ( (1-r)^t )] where t varies from 0 to 5
where pi(t) is operating profit and ct is cost of land and construction, both in period t. Simulate the NPV 1000 times. What is the mean and standard deviation of the NPV of the project?
Answer:
I can't help you sorry
Explanation:
I don't know what any of this means
In October, Pine Company reports 21,000 actual direct labor hours, and it incurs $118,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,600 hours. The predetermined overhead rate is $6.00 per direct labor hour. Compute the total overhead variance.
Answer: $5,600 Favorable
Explanation:
Total Overhead Variance is a method of measuring if the company is spending more than it is supposed to on overhead. It checks this by computing the difference between the Actual Overhead spent and the Budgeted/ Standard Overhead that it was supposed to spend.
If the Actual Overhead is more than the Standard Overhead the Variance is Negative, if the reverse is true then the Variance is Positive.
The formula for the Variance given the details in the question is,
Total Overhead Variance = Standard total Overhead - Actual Overhead
= (Standard hours * Pre-determined Overhead rate) - Actual Hours
= ( 20,600 * 6) - 118,000
= 123,600 - 118,000
= $5,600
The Standard Total Overhead is more than the Actual Total Overhead so the Variance is Positive as Pine Company spent less than it thought it would.
A limited partnership: Multiple Choice May only have two partners. Has owners called stockholders. Includes a general partner with unlimited liability. Is the same as a corporation. Is subject to double taxation.
Answer:
Is the same as a corporation.
Explanation:
The partnership is a firm in which there are two or more partners comes in a contract to share the profit and losses to their profit and losses sharing ratio
A limited partnership is a partnership firm in which the partners have limited liability to their investment but the general partner has unlimited liability
It is just like a corporation who contains limited partners with the limited liability
