The City Transit Authority (CTA) is trying to decide between railcars manufactured by French Corp and Japan Rail Car. The French Corp cars cost more to buy initially, but they are expected to last for 10 years. The Japan Rail Car cars are cheaper initially, but they will wear out in 6 years. The cash flows related to each of the choices are presented below. If the CTA’s cost of capital is 8 percent, which type of car should the CTA buy? Support your answer.

Answer: George's initial price markup over marginal cost was approximately 41.2% George's desired markup is 45% Since George's initial markup, or actual margin, was Less than his desired margin, raising the price was profitable

Explanation:

a) Price Elasticity of Demand = [(Q1-Q2)/(Q1+Q2)] / [(P1-P2)/(P1+P2)]

= 5000- 4000/4000+ 5000) /  8.50- 9.50 /8.50 ₊9.50 =

1000/8000 / -1/ 18 = 0.125/-0.055  = -2.2

George's initial price markup over marginal cost was approximately

when Marginal cost = $5

b)initial price markup  = Price - marginal cost / price = 8.50 - 5.00/ 8.50 =   0.412=  41.2%

C) George's  desired margin = 1/absolute value of price elasticity = 1/ 2.2= 0.45= 45%

.

D)Since George's initial markup or actual margin was less  than his desired margin, raising the price is profitable.

This is because When the  markup is lower than the margin,  business is running on a loss, so it is nessesary to increase price.

Answer:

$967.20

Explanation:

the YTM formula = {coupon + [(face value - present value)/time]} / [(face value + present value)/2]

to determine the coupon rate we fill the equation with the known factors:

0.065 = {coupon + [(1,000 - 1,050)/12]} / [(1,000 + 1,050)/2]

0.065 = (coupon - 41.67) / 1,025

66.625 = coupon - 4.167

coupon = 66.625 + 4.167 = $70.792  

three years later, the YTM = 7.5%, what is the PV? Again we use the YTM formula:

0.0775 = {70.792 + [(1,000 - x)/6]} / [(1,000 + x)/2]

0.0775(500 + 0.5x) = 70.792 + 166.67 - 0.1667x

38.75 + 0.03875x = 237.462 - 0.1667x

0.20545x = 198.712

x = 198.712 / .20545

x = $967.20

Answer:

The Gross profit is $18,000

Explanation:

In order to calculate the amount of gross profit we would have to make the following calculation:

Gross Profit = Sale - Allowance - Sales Returns - Discount - Cost of Goods Sold

Sale=$50,000

Allowance=$3,000

Sales Returns=$9,000

Cost of Goods Sold =$20,000

Discount. As the payment is done after the expiry of 15 days is discount is 0

Gross Profit= $50,000 - $3,000 - $9,000 - 0 - $20,000

Gross Profit= $18,000

The Gross profit is $18,000

Answer:

Misappropriation refers to the use of another person's intellectual property including their name or likeness without prior permission from the person which can then cause harm to that person.

This is indeed an example of misappropriation because the company tried to use Bette's likeness in the commercial. After being rebuffed by Bette saying that she does not do commercials for whatever business or personal reasons known to her, they still sought to use her popularity and image to make their products more popular.

To do so they hired a backup singer and told her to sing as much like Bette as she could so much so that even Bette's close acquaintances thought that it was Bette. If her close acquaintances could think it was her, imagine the general public.

They therefore made it seem as though Bette did their commercial which then would mean that Bette does in fact do commercials which would do damage her assertion that she does not do same. This would bring harm to her business relationships if for instance she had rebuffed other companies in the past when they sought her to do their commercials.

This is a case of Misappropriation and Bette should sue.

Answer:

Operating​ income will increase by $63,000  

Explanation:

Given:

Sales volume increase = 3,000 units

Particular                                        Amount

Increase in Sales                         $210,000      ($70×3000)  

Less: Increase in Variable cost $135,000       ($45×3000)

Less: Increase additional Costs $12,000

Chane in Net operating​ Income $63,000  

Operating​ income will increase by $63,000  

Answer:

$954.54

Explanation:

The price of the bond today is the present value of the promised cash inflows of coupon payment and repayment of face value which is computed using fv formula in excel below:

Price in 5 years time:

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

rate is 8.5% in 5 years' time

nper is 15 years in 5 years' time

pmt is the annual coupon=$1000*9%=$$90

fv is the face value of $1000

=-pv(8.5%,15,90,1000)=$ 1,041.52  

Price today:

=-pv(8%,20,90,1,041.52)=$954.54  

Answer:

The answer is

1. Expenditure on research and development (A. Investment decision)

2. A bank loan (B. Financial asset)

3. Listed on a stock exchange (C. Public corporation)

4. Has limited liability ( D. Corporation)

5. Responsible for bank relationships ( E. The treasure)

6. Agency Cost (F. The cost resulting from conflicts of interest between managers and shareholders)

Explanation:

1. Expenditure on research and development. (A. Investment decision. Investment decision relates to expenditure on a long-term goal.)

2. A bank loan (B. Financial asset. Businesses that obtain bank loans owns and controls it and makes the decision on how to use it)

3.Listed on a stock exchange( C. Public corporation. Companies that have their stocks traded on exchange are public companies.)

4. Has limited liability (D. corporation/partnership. No distinct separation between the owner and the business)

5. Responsible for bank relationships (E. The treasurer. This person maintains the relationship between the bank and business)

6. Agency Cost ( F. The cost resulting from conflicts of interest between shareholders and managers of the business. The managers of the business are known as the agents)

Answer:

Expected Value of the return = 12.6%

Explanation:

The expected rate of return is the weighted average of all the possible returns associated with an investment decision. The returns are weighted using the probability associated with their outcomes.

Expected return = WaRa + Wb+Rb + Wn+Rn

W- weight of the outcome, R - return of the outcome

W- Probability of the expected outcome, R- expected return under a circumstance

The probability of having a normal economy

Note that the sum of the probability of different outcomes should equal to one. Hence, the probability of economy being normal is

= 100% -(15%+30%)= 55%.

Expected Value of the return

(0.3× 30%) + (0.55× 12%) + (0.15 × -20%) =0.126

=0.126 × 100

= 12.6 %

Expected Value of the return = 12.6%

Answer:

(a) Thailand polishing price per unit is $2.03

(b) India shine price per unit is $1.88

(c) Sacramento glow price per unit is $15

Explanation:

(a) Thailand polishing:

Thailand polishing has submitted a quote of 3000 baht

$1 = 10 bhat

1 bhat = $ 0.1

Thailand polishing submitted bid = 3000 × $0.1 =$300

Import tax = 35%

Total cost = 1.35 × 300 = $405

Cost per unit = 405 ÷ 200 = $2.03

(b) India shine:

India shine has submitted a bid of 3000 rupees

$1 = 8 rupees

1 Rupee = $0.125

India shine submitted bid = 3000 × 0.125 = $375

Price per unit = 375 ÷ 200 = $1.88

(c) Sacramento Glow submitted bid = $3,000

price per unit = $3,000 ÷ 200

= $15

Answer:

Option A. The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.  

Explanation:

The reason is that the personal selling is the face to face selling which means two way flow of communication is necessary. The seller will use his marketing exprience to influence the buyer which results in greater sales and customer satisfaction. So it is the face to face selling method which most of the companies opt and this way of selling is known as personal selling.

Answer:

Elegant Limited

Depiction of the Association and Cardinality for the Sales of Cars based on the REA Model:

1. Association: This is about the relationships that exist among the economic elements involved in the REA model.  They are Economic Resources, Economic Events, and Economic Agents.  These elements interact during each business transaction in such interconnected processes that business transactions cannot be complete without any element.

For example, the economic resources during the sale of a car at Elegant Limited are 1) a car and 2) money.  These are exchanged between Elegant Limited and the customer and vice versa.  In the same light, an economic event takes place during the exchange of either a car or money.  While a car is a physical resource (asset), money is a financial resource (asset).  For each of these two events, the economic agents who must interact are the workers at Elegant Limited and the customer whether private buyers or investors.

2. Cardinality:  This refers to the elements that are involved in the REA model.  They are three as already described.  They are Economic Resources, Economic Events, and Economic Agents.  No business transaction is complete where any element is not present.  So, these elements are cardinal in the relationship.

Explanation:

The REA model is an accounting system re-engineering model originally proposed by William E. McCarthy as a generalized accounting model.   It contains the concepts of resources, events and agents (McCarthy 1982).

The model views accounting data collection as a system to collect data about the resources, events, and agents within business processes, thereby suggesting that the basic data collected should be about the resources, events, and agents involved in an exchange.

Answer: Neo-Corporatism.

Explanation:

Neo- Corporatism emerged in resent times as a successor to State Corporatism. State Corporatism was a system whereby interest and labor groups were supposed to work together for the good of society. These were most prevalent in authoritarian regimes like Nazi Germany and post communist Lithuania.

Recently though, in some Democratic countries, interest groups have chosen to work with the Government to improve the lives of the people and enable the Government reach out deeper. These Peak Associations as they are often called help the Government compete economically and are very prevalent in countries and regions such as, Germany, Switzerland, Austria and Scandinavia.

Answer:

See the journal and the explanation underneath each transaction below.

Explanation:

The journal entry will look as follows:

Date           Details                                      Dr ($)             Cr ($)  

Sept. 06     Merchandise Inventory           1,750

                   Accounts payable                                         1,750

To record purchase of calculators on account.                          

Sept. 09     Merchandise Inventory              50

                  Cash                                                                    50

To record Freight paid on purchase of Merchandise Inventory.

Sept. 10     Accounts payable                        58

                  Merchandise Inventory                                      58

To record calculator returned Blossom Co.                                  

Sept. 12      Accounts Receivable               700

                   Sales                                                                 700

To record sale of calculators on account.                                      

Sept. 12       Cost of goods sold                    510

                   Merchandise Inventory                                    510

To transfer cost of calculators sold.                                                

Sept. 14        Sales return and discounts       35

                    Accounts receivable                                        35

To record return of calculator sold which was not ordered.          

Sept. 14         Merchandise Inventory             25

                     Cost of goods sold                                          25

To record cost of goods sold that was returned.                            

Sept. 20        Accounts Receivable               880

                      Sales                                                              880

To record calculators sold on account.                                            

Sept. 20         Cost of goods sold                   680

                       Merchandise Inventory                                680

To record cost of goods sold.                                                          

Answer:

c. borrowing directly from the public.

Explanation:

If the Apple corporation sells a bond it is borrowing directly from the public.  That is because corporate bonds are exactly that, they are bonds issued by a corporation in which the individual buying them is basically loaning money to the corporation which they will receive back the full amount that they loaned out as soon as the bond matures. Therefore by buying a corporate bond you are directly loaning that corporation money to finance their operations.

If Apple Corporation sells a bond, it is borrowing indirectly from the public. Therefore, the correct option is b.

A bond is a debt instrument issued by a corporation or government entity to raise funds. When Apple sells a bond, it is essentially borrowing money from investors or the public. In return, Apple promises to repay the principal amount of the bond along with periodic interest payments. Bonds do not involve selling shares of ownership in the company, as in the case of issuing stocks. Instead, bonds represent a form of debt financing for the issuer.

Thus, the ideal selection is option b.

Learn more about bond here:

https://brainly.com/question/32567805

#SPJ6

Answer:

a. No one buys typewriters anymore, but they buy PCs even to type.

Explanation:

Value migration can be described as the change in the value-creating forces due to the migration of value from products or business models that are outmoded to business designs that able to give better satisfaction to the priorities of customers.

Therefore, the correct option is "no one buys typewriters anymore, but they buy PCs even to type" because typewriters are outmoded while PCs are the new designs.

Answer:

Income after discontinuing operations from both departments 1 and 2 is greateri.e.  $ 207 444 than income after discontinuing operations from  department 1 . i.e.  $ 172964

Explanation:

Option 1:

If the 1st division is discontinued. 50 % of the fixed costs and expenses will continue and included in irrelevant costs.

Culver Company

Income Statement

For the 1st Quarter 2017

Division                            II                 III                IV                 Irrelevant Costs

Sales                        $198,000     $499,000      $446,000

Cost of G. Sold           191,000        298,000        254,000

V. COGS                        90 %             80 %               74 %

V.COGS                    171,900        238,400        187960

FIxed COGs                19,100          59600           66,040         30690

Selling &

Administrative Exps       63,000        63,000          46,000

Var. S& Admin Exps.       62%                 52%              58%

Var. S& Admin Exps.       39060           32760         26,680

Fixed S.& Admin Exps  23940          30240         19320          24346

Income (loss)         $ (56,000)    $138,000     $146,000        

Total Income =      $ (56,000)+$138,000+$146,000-30690- 24346      

Total Income=  $ 172964

Option 2:

If  both the 1st  and 2nd division are discontinued. 50 % of the fixed costs and expenses are added under the section II.

Culver Company

Income Statement

For the 1st Quarter 2017

Division                            II                 III                IV                 Irrelevant Costs

Sales                                          $499,000      $446,000

Cost of G. Sold                           298,000        254,000

V. COGS                                         80 %               74 %

V.COGS                                        238,400        187960

FIxed COGs                9,550          59600           66,040         30690

Selling &

Administrative Exps                      63,000          46,000

Var. S& Admin Exps.                      52%              58%

Var. S& Admin Exps.                         32760         26,680

Fixed S.& Admin Exps  11970          30240         19320          24346

Income (loss)                                    $138,000     $146,000    

Total Income =      $138,000+$146,000-30690- 24346-  9,550 - 11970    

Total Income=  $ 207 444

We calculate the fixed and variable costs by multiplying with the given percentages and subtracting it from the total .

Culver Company

Income Statement

For the 1st Quarter 2017

Division                             I               II                 III                IV

Sales                     $250,000   $198,000     $499,000      $446,000

Cost of G. Sold       198,000     191,000        298,000        254,000

V. COGS                 69 %             90 %             80 %               74 %

V.COGS                136,620         171,900        238,400        187960

FIxed COGs         61,380            19,100          59600           66,040

Selling &

Administrative Exps 74,900       63,000        63,000          46,000

Var. S& Admin Exps.  41%            62%                 52%              58%

Var. S& Admin Exps. 30,709       39060           32760         26,680

Fixed S.& Admin Exps  48691      23940          30240         19320

Income (loss)       $ (22,900)     $ (56,000)    $138,000     $146,000

Answer:

Units stated and completed during the month= 65,000

Explanation:

The units stated and completed in the current period is referred to as the fully worked.

Using the first in first out (FIFO) approach, the fully worked is calculated as

Fully worked = newly introduced -closing inventory

= 86,000- 21,000 = 65000

Note that out of the 86,000 that were completed in the period, it assumed that 23,000 representing the opening inventory would first be completed and the balance would from the newly introduced.

Another way to determine the fully worked is as follows

Fully worked = transferred out - opening inventory

Fully worked = 88,000- 23,000 = 65,000

Units stated and completed during the month= 65,000

Answer:

Find attached

Explanation:

The present value of $97,000 per year after retirement for 35 years is computed thus:

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

rate is the plan rate of return of 6.5%

nper is 35 years(years after retirement)

pmt is the amount required per year

fv is not applicable is taken as zero

=-pv(6.5%,35,97000,0)=$1,327,634.80  

The amount needed in the account at retirement is the future value of the plan.

Regular yearly payment into the plan is =pmt

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

=-pmt(6.5%,35,0,1327634.80)=$ 10,703.74

The percentage of income that must be contributed is found in the attached

Answer:

1. Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.

Since there is not enough room here, I prepared an excel spreadsheet. Since we are not told the credit terms of the sales, I assumed all the sales were more not past due.

2. Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?

Of course, the balance of the accounts receivable control account should equal the total balance of the accounts receivable schedule. Even if some accounts are written off (bad debt), both the accounts receivable schedule and the general ledger accounts receivable should show that write off.

Explanation:

Answer:

The answer is D

Explanation:

Depreciation is best described as An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that does not require any cash outflow under the accrual basis accounting.

Depreciation reduces the value of an asset and it reduces it over the life span of an asset. Depreciation is a non cash reduction. Depreciation tells us how much the value of an asset has reduced.

The formula is (cost of the asset - any residual value) ÷ the number of useful life span

Answer:

A. The number of beehives to be maintained is 8

B. The socially effiecient number of hives is 10

Explanation:

A. In order to calculate the amount of beehives that the beekeeper will maintain assuming the beekeeper wishes to maxmise his profits we would have to use the equality of MC and the price and can be calculated as follows:

P=MC

50=10 + 5Q

Q=8

The number of beehives to be maintained is 8

B. To calculate the socially effiecient number of hives we would have to equating the marginal social benefit and marginal cost as follows:

The orchard owner must complete the pollination by artificial​ means, at a cost of ​$10 per acre of trees, therefore,

MSB=MC

50+10=10 + 5Q

Q=10

The socially effiecient number of hives is 10

Answer:

In a short time, as long as the product line can be sold with a positive contribution margin, the company should continue selling it.

Explanation:

Giving the following information:

UNitary variable cost= $5

Fixed costs are $5000.

Sales= 500 units

Selling price= $8

First, we need to calculate the current income:

Income= 500*(8-5) - 5000= -$3,500

In a short time, as long as the product line can be sold with a positive contribution margin, the company should continue selling it. Demand can increase and income could become positive.

Answer:

Marion Company

a1) Depletion of the Mine for two years:

2018: 41,000/310,000 * $1,488,000 = $196,800

2019: 51,000/397,500 * $1,488,000 = $190,913

a2) Depreciation of Mining Facilities:

2018: 41,000/310,000 *$102,300 = $13,530

2019: 51,000/397,500 * $102,300 = $13,125

a3) Depreciation of Mining Equipment

2018: 41,000/310,000 *$46,500 = $6,150

2018: 51,000/397,500 * $46,500 = $5,966

b) Book Values December 31, 2019:

1) Mineral Mine:

Cost = $1,598,000

Accumulated Depletion $387,713 (2018 & 2019)

Book Value = $1,210,287

b2) Structures:

Cost = $102,300

Accumulated Depreciation $26,655 (2018 & 2019)

Book Value = $75,645

b3) Equipment:

Cost = $51,500

Accumulated Depreciation $12,116

Book Value = $39,384

Explanation:

a) Cost of Mine:

Land              $1,150,000

Development $448,000

Less Resale    ($110,000)

Total cost =  $1,488,000

b) Cost of Facilities or Structure:

Building cost = $102,300

c) Cost of Equipment = $51,500 - $5,000 = $46,500

d) Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources.  It is like depreciation and amortization, which lower the cost value of an asset incrementally through periodic charges to income.

e) Depreciation is an accounting method for allocating the cost (the value used up) of a tangible or physical asset over its useful life.

Answer:

$562

Explanation:

Date     Transaction                   Units          Unit Cost         Total

July 1    Beginning inventory     520              $2.48             $1,289.60

July 25 Purchase                       330              $2.67             $881.10      

subtotal                                      850             $2.554           $2,171

            Sales                              630            $2.554           $1,609.09

July 31  Ending inventory          220            $2.554           $561.91

July 31's ending inventory = 220 units at $2.554 per unit, total cost $561.91

Answer:

a. $231,000

b. 2,450 units

Explanation:

a. On average, how many dollars of pipeline inventory will be in transit to each distribution center?

This is the inventory level that has to be in transit every 2 weeks in order to meet average demand. This can be calculated as follows:

Pipeline inventory = Number of distribution centers * Price per unit * Average weekly demand * Average delivery lead time = 5 * $330 * 70 * 2 = $231,000.

Therefore, the dollars of pipeline inventory that will be in transit to each distribution center is $231,000.

b. How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers?

Inventory in hand = Average shipment size *  Number of distribution centers = 350 * 5 = 1,750

Safety inventory = Number of distribution centers * Average weekly demand * Average delivery lead time = 5 * 70 * 2 = 700

Note: Safety inventory is the inventory held in the store for the purpose of meeting rise in demand or for overcoming delay in supply.

Inventory cycle = Inventory in hand - safety inventory = 1,750 - 700 = 1,050

Pipeline inventory = Number of distribution centers * Average weekly demand * Average delivery lead time = 5 * 70 * 2 = 700

Total inventory held = Inventory cycle + Safety inventory + Pipeline inventory = 1,050 + 700 + 700 = 2,450 units.

Therefore, the total inventory (cycle, safety, and pipeline) Prince holds for all five distribution centers is 2,450 units.

Answer:

O Country Y has a protective tariff on car imports.

Explanation:

A protective tariff is "a tariff imposed to protect domestic firms from import competition "

Answer:

Country X can manufacture cars more cheaply.

Explanation:

took test

Answer: flexible manufacturing

Explanation: Flexible manufacturing is the type of manufacturing system employed at NikelD, wherein customers through customization can design their own athletic shoes. As such, there is usually equipment and computerized systems  configured to manufacture a variety of parts and handling changing levels of production. Doing this serves to improve efficiency while lowering the company's production costs significantly and is a characteristic feature of make-to-order strategies requiring a high degree of customization by customers. This system of manufacturing also creates a method of production designed to adapt to changes in the type and quantity of the product being manufactured very easily.

Answer:

1. The board is meeting legal requirements but not its duty of care to shareholders.

Explanation:

During a Board of Directors meeting with CFO all conversations will be about strengthening the company and the organization's shareholders. Shareholders are also considered the entity's owners, so it is very important to comply with all the legal provisions in addition to increasing shareholders.

In this given situation, the board meets with CFO and asks in compliance with accounting standards, but asks little more about how the project aims to achieve the company's mission and strategy. Mission and plan describe the company's vision alongside the company's owners(shareholders) vision and benefits.

hence, the correct option is 1.

Answer:

The answer is $4,221.77

Explanation:

Present value = Cash flow/(1+r)^n

where n is the number of years

Cash flow 1:

$1,150/1.11^1

=$1,036

Cash flow 2:

$1,030/1.11^2

=$835.97

Cash flow 3:

$1,520/1.11^3

=$1,111.41

Cash flow 4::

$1,880/1.11^4

=$1,238.39

Present Value of all the cash flows is

$1,036 + $835.97 + $1,111.41 + $1,238.39

=$4,221.77

Answer: $42,000

Explanation:

Using a straight line Depreciation method means that the Equipment will be depreciated uniformly throughout it's life.  i.e by the same amount.

Depreciation = (Cost - Residual Value) / Useful Life

= (483,000 - 63,000) / 10

= 420,000/10

= $42,000

The annual Depreciation amount for Year 1 - 3 is $42,000 and will be the same as long as the Equipment is in service.