Solution :
[tex]U(A, B) = 5A + 2B[/tex]
a). Bundles [tex](40, 5)[/tex] = U ( _____ , 2), lie on the same indifference curve. Suppose missing numbers is x.
So, [tex]U(40, 5) = U(x, 2)[/tex]
(40 x 5) + (2 x 5) = 50x + (2 x 2)
210 - 4 = 5x
[tex]x = 41.2[/tex]
So Alexander has [tex]40[/tex] apples and [tex]5[/tex] bananas. The indifference curve though [tex](40, 5)[/tex] also include bundle.
Therefore, (41.2, 2)
b). [tex]$MRS_{BA} = \frac{MU_B}{MU_A}$[/tex]
[tex]$=\frac{\delta U/\delta B}{\delta U/\delta A}$[/tex]
[tex]$=\frac{2}{5}$[/tex]
= 0.4
So Alexander has [tex]40[/tex] apples and [tex]5[/tex] bananas with this bundle. Alexander would like to give up [tex]0.4[/tex] unit apples for a banana.
The common stock of Eddie's Engines, Inc. sells for $45.68 a share. The stock is expected to pay $4.10 per share next year. Eddie's has established a pattern of increasing their dividends by 6.2 percent annually and expects to continue doing so. What is the market rate of return on this stock?
a. 15.18 percent
b. 7.26 percent
c. 8.98 percent
d. 17.67 percent
e. 11.14 percent
Answer:
no entiendo la verdad es que yo hablo español y no entiendo ajaj espero te ayude
Explanation:
15.18
asino Inc. expects to pay a dividend of $3 per share at the end of year 1 (Div1) and these dividends are expected to grow at a constant rate of 6 percent per year forever. If the required rate of return on the stock is 18 percent, what is the current value of the stock today?
Answer:
the current stock of the value today is $25
Explanation:
The computation of the current stock of the value today is shown below:
Next year dividend D1 = $3
growth rate g =6% forever
rate of return = 18%
So,
Current Stock Price P = D1 ÷ (r - g)
=3 ÷ (18% - 6%)
= 3 ÷ 12%
= 3 ÷ 0.12
= $25
Hence, the current stock of the value today is $25
Carpet Renewal dyes carpets for residential customers. The company is interested in estimating fixed and variable costs. The following data are available for the month of June when 420 carpets were dyed:
Office rent $ 1,250
Depreciation - equipment 900
Cleaning supplies 5,140
Hourly wages 11,000
Transportation (variable) 3,600
Owner’s salary 3,100
Total $24,990
Using account analysis, how much is estimated variable cost per carpet?
a. $59.50
b. $52.12
c. $47.00
d. $38.43
Answer: c. $47 per carpet
Explanation:
Total variable costs are:
= Cleaning supplies + Hourly wages + Transportation
= 5,140 + 11,000 + 3,600
= $19,740
The variable cost per carpet is:
= Total variable cost / Number of carpets dyed
= 19,740 / 420
= $47 per carpet
On the Tokyo Stock Exchange, Honda Motor Company stock closed at ¥2,915 per share on Monday, June 6, 2016. Honda trades as an ADR on the NYSE. One underlying Honda share equals one ADR. On June 6, 2016, the ¥/$ exchange rate was ¥107.65/$1.00. (Round your answer to 2 decimal places.) At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR?
Answer:
$27.08
Explanation:
Calculation to determine the no-arbitrage U.S. dollar price of one ADR
Using this formula
No-arbitrage U.S. dollar price of one ADR=Stock closed per share /Exchange rate
Let plug in the formula
No-arbitrage U.S. dollar price of one ADR=¥2,915 / ¥107.65
No-arbitrage U.S. dollar price of one ADR=$27.078
No-arbitrage U.S. dollar price of one ADR=$27.08 (Approximately)
Therefore the no-arbitrage U.S. dollar price of one ADR is $27.08
Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead (in dollars) and what is the amount contributed
Answer: Department 3 had the greatest contribution to overhead of $362,000
Explanation:
Contribution to overhead = Sales - Cost of Goods sold - Direct expense
Department 1:
= 1,140,000 - 714,000 - 114,000
= $312,000
Department 2:
= 540,000 - 164,000 - 54,000
= $322,000
Department 3:
= 840,000 - 314,000 - 164,000
= $362,000
Inventory balances for the Jameson Company in October 2018 are as follows:
October 1, 2018 October 31, 2018
Raw materials $27,000 $21,000
Work in process 48,000 37,200
Finished goods 108,000 90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. What are the total manufacturing costs added to production in the period?
Answer:
Total manufacturing costs added to production $186,000
Explanation:
The computation of the total manufacturing cost to be added is given below:
Raw materials,beginning $27,000
Add: Purchases of direct materials $36,000
Less: Raw materials,ending -$21,000
Direct materials used $42,000
Direct labor $60,000
Factory overhead costs $84,000
Total manufacturing costs added to production $186,000
analysis of the meaning of the bill of lading
Answer:
A bill of lading is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. 12 A bill of lading is a document of title, a receipt for shipped goods, and a contract between a carrier and shipper.
Explanation:
I searched it up if its not what your looking for my bad sorry.
When comparing the results of using the direct, sequential, and reciprocal services methods of allocating support department costs to production departments, which of the following statements is true for a manufacturing company that has a total of $1,500,000 in support costs to allocate?
a.The reciprocal services method allocates more than $1,500,000 to the production departments.
b.The reciprocal services method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the direct method.
c.The direct method yields the most accurate allocation of the $1,500,000.
d.The sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method.
Answer: d. The sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method
Explanation:
For a a manufacturing company that has a total of $1,500,000 in support costs to allocate, it should be noted that the sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method
A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350. The company returned $275 worth of merchandise and then paid the invoice within the 2% cash discount period. The total cost of this merchandise is:________
A. $3,725.00.
B. $3,925.00.
C. $3,995.00.
D. $4,000.50
E. $4,075.00.
The total cost of the merchandise purchased by the company is E. $4,075.00.
Data and Calculations:
Cost of goods purchased =$4,000
Freight-in = $350
Returned goods = $275
The total cost of goods = $4,075 ($4,000 + $350 - $275)
The cash discount received for early payment = $81.50 ($4,075 x 2%).
Thus, the total cost of the merchandise purchased by the company is E. $4,075.00.
Learn more about the cost of goods purchased here: https://brainly.com/question/15864970
Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account. Assume 360-day year. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. When required, round your answers to the nearest dollar. $fill in the blank abd719f5d049ff0_2 c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not requ
Answer: a. 120 days
b. $185400
Explanation:
a. The due date of the note will be:
August = 31-10 = 21 days
September = 30 days
October = 31 days
November = 30 days
December = 8 days
Total = 120 days
b. The maturity value of the note will be:
= 180000 + (180000 × 9% * 120/360)
= 180000 + (180000 × 0.09 × 0.33)
= 180000 + 5346
= 185346
= 185400 to nearest dollar
3. 8 december
Debit Cash $ 185,400
Credit Note Receivable $180,000
Credit Interest Revenue $5,400
MC Qu. 123 Fallow Corporation has... Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $450,000 $600,000 Salary expense 51,000 65,000 Cost of goods sold 155,000 275,000 The West Division occupies 11,250 square feet in the plant. The East Division occupies 6,750 square feet. Rent, which was $ 90,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division.
Answer:
$187,750
Explanation:
Computation for operating income for the West Division.
OPERATING INCOME FOR THE WEST DIVISION
Sales $450,000
Less Cost of goods sold ($155,000)
Gross profit $295,000
($450,000-155,000)
Less: Salary Expense ($51,000)
Allocated rent ($56,250)
($90,000 * 11250/18,000)
West Division income $187,750
Total area of both division = 11,250 + 6,750 = 18,000 square feet
Therefore operating income for the West Division is $187,750
The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What was the variable overhead efficiency/quantity variance for the month? Group of answer choices
Answer:
$17,871 U
Explanation:
Note The missing word have been attached as picture below
Variable overhead efficiency variance = (Standard hour - Actual hour) * Standard rate
Variable overhead efficiency variance = (1,480 hours - 2,775 hours) * $13.80
Variable overhead efficiency variance = 1,295 hours * $13.80
Variable overhead efficiency variance = $17,871 U
You plan to deposit $1,800 per year for 5 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.
Required:
a. What amount will be in your account at the end of 6 years?
b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire?
Answer:
1-a. The amount that will be in your account at the end of 6 years is $11,643.14.
1-b. The amount that will be in your account at the end of 6 years is $11,992.43.
2-a. The amount you need in your retirement account the day you retire is $590,938.17.
2-b. The amount you need in your retirement account the day you retire is $679,578.89.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
1. You plan to deposit $1,800 per year for 6 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.
a. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
2. You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $90,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annually.
a. What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
The explanation of the answers is now provided as follows:
1-a. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
Since you plan to make your first deposit one year from today, this can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = D * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value or the amount that will be in your account at the end of 6 years = ?
D = Annual deposit = $1,800
r = Annual return rate = 3%, or 0.03
n = number of periods = 6
Substituting the values into equation (1), we have:
FV = $1,800 * (((1 + 0.03)^6 - 1) / 0.03) = $11,643.14
Therefore, the amount that will be in your account at the end of 6 years is $11,643.14.
1-b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to the nearest cent. Do not round intermediate calculations.
Since it is assumed that your deposits will begin today, this can be calculated using the formula for calculating the Future Value (FV) of an Annuity Due as follows:
FV = M * (((1 + r)^n - 1) / r) * (1 + r) ................................. (2)
Where,
FV = Future value or the amount that will be in your account at the end of 6 years = ?
D = Annual deposit = $1,800
r = Annual return rate = 3%, or 0.03
n = number of years = 6
Substituting the values into equation (2), we have:
FV = $1,800 * (((1 + 0.03)^6 - 1) / 0.03) * (1 + 0.03) = $11,992.43
Therefore, the amount that will be in your account at the end of 6 years is $11,992.43.
2-a. What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
Since your first withdrawal will be made one year after you retire, this can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (3)
Where:
PV = Present value or the amount you need in your retirement account the day you retire = ?
P = Annual withdrawal = $90,000
r = Annual return rate = 15%, or 0.15
n = number of years = 30
Substituting the values into equation (3), we have:
PV = $90,000 * ((1 - (1 / (1 + 0.15))^30) / 0.15) = $590,938.17
Therefore, the amount you need in your retirement account the day you retire is $590,938.17.
2-b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.
Since it is assumed that that your first withdrawal will be made the day you retire, this can be determined using the formula for calculating the present value of an annuity due as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) …………………………………. (4)
Where:
PV = Present value or the amount you need in your retirement account the day you retire = ?
P = Annual withdrawal = $90,000
r = Annual return rate = 15%, or 0.15
n = number of years = 30
Substituting the values into equation (4), we have:
PV = $90,000 * ((1 - (1 / (1 + 0.15))^30) / 0.15) (1 + 0.15) = $679,578.89
Therefore, the amount you need in your retirement account the day you retire is $679,578.89.
Which of the following The holding-period return (HPR) on a share of stock is equal to(s) the level of real interest rates? I) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds
Answer: D. I, II, and III.
Explanation:
The demand for investment funds determines the demand for loanable funds and when this is higher than the supply, the rate increases. The reverse it true. It therefore affects real interest rates.
The savings of households and business firms are the source of loanable funds so if these are high relative to demand, the rate will decrease. The reverse is true.
Government demand for funds will increase interest rates as the supply will decrease when the government borrows massively. The reverse is true.
All three therefore impart real interest rates.
(Ignore income taxes in this problem.) Your Company has a truck that needs a new engine that would cost $35,000. This will extend the useful life of the truck by 5 years. As an alternative, Your Company could buy a brand new truck for $120,000. The new truck would also last 5 years. The annual operating expenses of the old truck are $8,500. The annual operating expenses of the new truck will only be $5,000. The old truck has a salvage value of $12,000 now and $3,500 in 5 years. The new truck is expected to have a $10,000 salvage value in 5 years. Your Company discount rate is 6%. What is the net present value of the decision to buy the new truck instead of repairing the old truck
Answer:
Hence the net cost to the company is 68,160.
NPV to buy a new truck instead of repairing
NPV = -65390
Explanation:
Step 1:-
P.V. of Old Truck Repaired
Given
Discount rate = 6%
New engine = 35000
Life = 5 years
Annual operating expenses = 8500
Salvage (after 5 years)= 3500
Step 2:-
Repair
Net Cost to company = Cost + Annual operating expenses x P.V. Annuity
Factor (6%, 5) - Salvage value x P.V. Intrinsic
Factor (6%, 5)
P.V.A.F. (6%, 5)= [tex]\sum_{5}^{1}1 / (1.06)^{n} = 4.21[/tex]
n = 4.21
P.V.I.F. (6%, 5) = [tex]1/ (1.06)^{5} =0.75[/tex]
Net Cost to company: = 35000 + 8500 x 4.21 - 3500 x 0.75
= 35000 + 35785 - 2625
= 68,160
P.V. of New truck purchased
New Truck
Cost = 120000
Discount rate = 6%
Life = 5 years
Annual operating expenses = 5000
Salvage (after 5 years)= 10000
Net Cost to company: = Cost + Annual operating expenses x P.V. Annuity
Factor (6%, 5) - Salvage value x P.V. Intrinsic
Factor (6%, 5)
= 120000 + 5000 x 4.21 - 10000 x 0.75
= 120000 + 21050 - 7500
= 133550
NPV to buy a new truck instead of repairing
NPV = Net cost of repairing - Net cost of new truck
= 68160 - 133550
= -65390
Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 10,000 $17,000 February 8,000 13,500 March 9,000 14,400 April 7,000 12,500 Compute the variable and fixed cost elements using the high-low method. (Round variable cost to 2 decimal places, e.g. 15.25.)
Answer:
Results are below.
Explanation:
Giving the following information:
Miles Driven Total Cost
January 10,000 $17,000
February 8,000 13,500
March 9,000 14,400
April 7,000 12,500
To calculate the variable cost per unit and the total fixed cost, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (17,000 - 12,500) / (10,000 - 7,000)
Variable cost per unit= $1.5
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 17,000 - (1.5*10,000)
Fixed costs= $2,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 12,500 - (1.5*7,000)
Fixed costs= $2,000
If a firm enjoys economies of scale,
its average total cost will increase as production increases
its total costs will decrease as production increases
its average total cost will decrease as production increases
its marginal revenue will increase as production increases
Answer: Its average total cost will decrease as production increases
Explanation: Variable cost will decrease as a result of economies of scale, therefore the cost/unit or average total cost will decrease.
g If there is a breach of contract, the objective of the remedy in the breach contract case will be to: Question 21 options: place the parties back into the position that they would have been in had there been no contract punish the party that committed breach of contract provide both parties relief place the non breaching party into the position that they would have been had the contract not been breached
Answer: place the non breaching party into the position that they would have been had the contract not been breached
Explanation:
A contract is meant to satisfy the reasons for which the contract was gone into for both parties. If one party breaches the contract, the party that did not breach should still have their reason for entering the contract satisfied because they did what they were supposed to do according to the contract.
This is why the purpose of a breach of contract remedy is to ensure that this non-breaching party does indeed get what was supposed to come to them by the contract.
Riverbed Corporation purchased machinery on January 1, 2022, at a cost of $278,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $32,800. The company is considering different depreciation methods that could be used for financial reporting purposes.
Required:
Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.
Answer:
a. Under straight-line method, annual depreciation expenses are as follows:
Year Annual depreciation expense ($)
2022 61,300
2023 61,300
2024 61,300
2025 61,300
b. Under the declining-balance method using double the straight-line rate, annual depreciation expenses are as follows:
Year Annual depreciation expense ($)
2022 139,000
2023 69,500
2024 34,750
2025 1,950
Explanation:
a. Prepare a separate depreciation schedule for the machinery using the straight-line method.
Note: See part a of the attached excel file for the depreciation schedule for Straight-line method.
In the attached excel file, the depreciation rate used for the Straight-line method is calculated as follows:
Straight line depreciation rate = 1 / Estimated useful life = 1 / 4 = 0.25, or 25%
From part a of the attached excel file, we have:
Year Annual depreciation expense ($)
2022 61,300
2023 61,300
2024 61,300
2025 61,300
b. Prepare a separate depreciation schedule for the machinery using the declining-balance method using double the straight-line rate.
Note: See part b of the attached excel file for the depreciation schedule for double-declining-balance method.
In the attached excel file, the depreciation rate used for the Double declining-balance method is calculated as follows:
Double-declining depreciation rate = Straight line depreciation rate * 2 = 25% * 2 = 50%
From part b of the attached excel file, we have:
Year Annual depreciation expense ($)
2022 139,000
2023 69,500
2024 34,750
2025 1,950
Note:
Under this double-declining-balance method, the depreciation expenses for 2025 is calculated by deducting the salvage value of $32,800 from the 2025 Beginning depreciable amount (i.e. $34,750 - $32,800 = $1,950). The residual value of $32,800 therefore represents the book value on December 31, 2025.
What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment
Answer:
$882.03
Explanation:
Interest rate used is 7.23%
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 to 12 = 58
cash flow in year 13 = 1058
I = 7.23
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
A rods manufacturer makes rods with a length that is supposed to be 11 inches. A quality control technician sampled 40 rods and found that the sample mean length was 11.05 inches and the sample standard deviation was 0.21 inches. The technician claims that the mean rod length is more than 11 inches.
1. What type of hypothesis test should be performed?
2. What is the test statistic?
3. What is the number of degrees of freedom?
4. Does sufficient evidence exist at the α=0.01 significance level to support the technician's claim?
Answer:
H0 : μ = 11
H0 : μ > 11 ;
Test statistic = 1.506
Degree of freedom = 39
There isn't sufficient evidence to conclude that mean length of rod is greater than 11.05 inches
Explanation:
Given :
Mean length, μ = 11
Sample Standard deviation, s = 0.21
Sample mean, xbar = 11.05
Sample size, n = 40
The hypothesis :
H0 : μ = 11
H0 : μ > 11
The test statistic :
This a one sample t test :
Hence, test statistic would be :
T = (xbar - μ) ÷ (s/√(n))
T = (11.05 - 11) ÷ (0.21/√(40))
T = 0.05 / 0.0332039
T = 1.506
The degree of freedom ; df ;
df = n - 1 ; df = 40 - 1 = 39
The Critical value ;
Tcritical(0.01, 39) = 2.426
Decision region :
Reject H0 if Test statistic > TCritical
Since 1.506 < 2.426 ; WE fail to reject H0 and conclude that there isn't sufficient evidence to conclude that mean length of rod is greater than 11.05 inches
Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%. Assuming a 360-day year, the cash proceeds to Chang Co. are:________
a. $49,750
b. $47,000
c. $49,000
d. $51,000
Answer:
c. $49,000
Explanation:
Calculation to determine what the cash proceeds to Chang Co. are:
Cash proceed=$50,000-($50,000*6%*120/360)
Cash proceed=$50,000-$1,000
Cash proceed=$49,000
Therefore the cash proceeds to Chang Co. are:$49,000
Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ5 at a price of $4.00 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ5 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows:
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Fixed Overhead 3.25
Total $9.00
Required:
a. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
b. By how much will operating income increase or decrease if the order is accepted?
Answer:
a. The relevant costs and benefits of the two alternatives are as follows:
Relevant costs = $57,500
Relevant benefits = $40,000
b. Operating income will decrease if the order is accepted by $17,500.
Explanation:
a. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
Note that accepting the special order will increase the planned production from 60,000 to 70,00. Since this still lower than normal 75,000 units of production, this implies that Fixed Overhead will not be incurred when the order is accepted. Therefore, the Fixed Overhead is not relevant in this situation.
Therefore, the relevant costs and benefits of the two alternatives are as follows:
Relevant costs = Units of special order * (Direct Materials + Direct Labor + Variable Overhead) = 10,000 * ($1.75 + $2.50 + $1.50) = $57,500
Relevant benefits = Revenue from the special order = Units of special order * Unit price of special order = $10,000 * $4 = $40,000
b. By how much will operating income increase or decrease if the order is accepted?
Amount of decrease in operating income = Relevant costs - Relevant benefits = $57,500 - $40,000 = $17,500
Since the relevant costs will greater than the relevant benefits, it can be observed from the calculation above that operating income will decrease if the order is accepted by $17,500.
Groupon offers online coupons for bargains at local shops and restaurants. Which of the following is a reason that rivals are limiting its growth?
a. Not many firms possess the same capability
b. Its core capability is easily imitated
c. Its core capability is not easily imitated.
d. There are few equivalent capabilities.
Answer:
b. Its core capability is easily imitated
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
In this scenario, Groupon offers online coupons for bargains at local shops and restaurants. A reason that rivals are limiting its growth is simply because its core capability is easily imitated i.e offering of coupons for bargains.
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market and promised 70,000, then 80,000, and finally 100,000 warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of:
Answer:
Order Winners
Explanation:
Order winners basically mean the winning attributes that customers will seek in order to successfully buy a product.
This is in fact because a customer's decision in buying a product is based on the value for money, so things such as price, availability, performance, and design are things to be considered by customers before deciding on the product.
As in the case above, the winning attributes in making a car great are performance, safety, and fuel economy. If such is found in a car then it would lead the car to be highly sought by the customers.
At the beginning of the period, the Cutting Department budgeted direct labor of $125,000, direct materials of $151,000 and fixed factory overhead of $11,800 for 8,000 hours of production. The department actually completed 10,600 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? Round hourly rates to two decimal places. Round interim calculations to two decimal places. Round your final answer to the nearest dollar. a.$381,335 b.$377,606 c.$291,635 d.$287,800
Answer:
the appropriate total budget should be $377,500
Explanation:
The computation of the appropriate total budget should be given below:
Direct material ($151,000 ÷ 8,000 × 10,600) $200,075
direct labor ($125,000 ÷ 8,000 × 10,600) $165,625
fixed factory overhead $11,800
Total budget cost 377,500
Hence, the appropriate total budget should be $377,500
This is the answer but the same is not provided in the given options
If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average payment period
Answer: 34 days
Explanation:
The average payment period is a measure that is used to show the time the firm takes on average to pay its creditors.
The formula is:
Cash cycle = Operating cycle - Average payment period
30 = 64 - APP
APP + 30 = 64
APP = 64 - 30
APP = 34 days
True or false: Some contemporary models of communications have reconceptualized the classic Think-Feel-Do model to the Do-Think-Feel model to reflect more accurately actual communications effects given a particular type of product or purchase occasion. True Fals
Answer:
true
Explanation:
got it from quizlet.
Given the following data: Average Operating Assets $250,000 Total Liabilities $100,000 Sales $600,000 Contribution Margin $150,000 Net Operating Income $30,000 Return on investment (ROI) would be: a. 5%. b. 12%. c. 25%. d. 60%.
Answer:
b. 12%.
Explanation:
The computation of the return on investment is given below:
return on investment is
= net income ÷ avergae total assets
= ($30,000 ÷ $250,000)
= 12%
Hence, the return on investment is 12%
Therefore the option b is correct
And, the same should be considered and relevant
Next year, we will be in a boom, bust, or normal state with 25%, 25% and 50% probabilities respectively. Apple will return 15%, -22% and 7% in each state (again respectively).
a) What is the expected return for Apple next year?
b) What is the standard deviation of returns for Apple next year?
Answer:
a. 1.75%b. 14.10%Explanation:
a. Expected return:
This will be a weighted average of the returns in different states.
= (25% * 15%) + (25% * -22%) + (50% * 7%)
= 1.75%
b. Standard deviation:
= √ Variance
= √(25% * (15% - 1.75%)²) + (25% * (-22% - 1.75%)²) + (50% * (7% - 1.75%)²)
= √0.01986875
= 14.10%
