An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is beneficial, it is called a positive externality.The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good.Shift one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should shift the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should shift the demand curve to reflect the social value of consuming the good.With this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be (greater, less) than the socially optimal quantity.Which of the following generate the type of externality previously described? Check all that apply.1.The city where you live has turned the publicly owned land next to your house into a park, causing trash dropped by park visitors to pile up in your backyard.2.Your roommate, Valerie, has bought a puppy that barks all day while you are trying to study economics.3.Manuel has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the fall foliage season.4. A leading electronics manufacturer has discovered a new technology that dramatically improves the picture quality of plasma televisions. Firms of all brands have free access to this technology.

Answer:

Notes payable(due in 13 to 24 months)-L

Notes payable (due in 6 to 12 months)-C

Notes payable (mature in five years)-L

Current portion of long-term debt-C

Notes payable(due in 120 days) -C

FUTA taxes payable -C

Accounts receivable-N

Sales taxes payable-C

Salaries payable-C

Wages payable-C

Explanation:

A liability is a current one if it is due between today and the next one year(12 months),however any liability whose payment date is beyond one year is classified as long-term liability.

Answer:

At the point when an economy gets, a business downturn is experienced. Yield agreements and business falls. As work falls, salary of the individuals falls since they are currently jobless. Hence, their discretionary cash flow additionally falls which implies they will request less merchandise. The makers creating these merchandise will confront deficiency of interest and acclimate to it by chopping down creation and laying off laborers. Subsequently, unemployment rises further. This is what is known as patterned unemployment.  

Unemployment is counter repeating on the off chance that it falls when the economy contracts. Medicinal services for example. Consider individuals being laid off from work during monetary crunch. The distress of the individuals considering losing their positions causes a few ailment. Which additionally implies that they should spend more on medicinal services with the goal that they are fit to work and can look through occupations quicker. Here, regardless of whether the economy is crunching, it is the human services segment that gets a lift. Subsequently, unemployment in human services industry is counter recurrent.

Answer: 1.02 unit per hour

Explanation: total unit of devices for homeland security is 2200 units

Total labourer = 27 people

Total hour for two weeks = 40 × 2 = 80

Productivity per hour = devices number/total hour 2200/ 80 = 27.5

productivity for the Homeland Security contract in units produced per labor hour = 27.5/27 = 1.0185 = 1.02

Answer: 4.17%

Explanation:

in the attachment

To determine the annual interest rate for P2400 to earn P800 in 8 years, use the simple interest formula. Solving for the rate yields 4.17%. Thus, the correct answer is 4.17%.

Finding the Annual Interest Rate

To determine the annual interest rate needed for an investment of P2400 to earn an interest of P800 in 8 years, we will use the formula for simple interest:

Simple Interest formula: I = P * r * t, where:

We rearrange the formula to solve for r:

r = I / (P * t)

Substitute the given values into the formula:

r = 800 / (2400 * 8)

r = 800 / 19200

r = 1/24

r ≈ 0.04167

To convert this to a percentage, multiply by 100:

r ≈ 4.17%

Thus, the answer is:

c. 4.17%

Answer:

As a risk minimizer : Stock A  has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B  has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.

The answer is A and B respectively

Explanation:

The standalone risk or standard deviation of the stocks is alleviated for a well diversified investor  . So, in that case, the relevant risk would be the market risk or the beta.

When you see in isolation, relevant risk would be the standard deviation.

Therefore, as a risk minimizer : Stock A  has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B  has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.

Answer:

Option A is the correct answer,no adjustment is needed.

Explanation:

When related companies sell to each other,the sales transaction is not sales in actual sense,as it is likened to the left hand of an individual exchanging cash with the right hand,in other words, the cash is still owned by the same person.

The same concept is applicable to subsidiaries and parent,the sales recorded from a group perspective is when they sold to external third parties.

When sales happen between related companies, a provision for unrealized profits has to be made to the tune of inventory purchased from related companies  not yet sold externally,as the whole of the goods have been to third parties, no such provision or adjustment is required.

Answer:

d. All intercompany sales and costs of goods sold must be eliminated in consolidation.

Explanation:

For a group of companies, the figure to be used in the profit and loss account must only be sales to and purchases from customers or companies that are not part of the group. For this reason, intra group sales are to be eliminated from sales and cost of sales figures used in the profit and loss account.

In addition, unrealized profit on goods should also be eliminated in case there are some of the goods related intra good sales that are not yet sold.

Therefore, the correction is d. All intercompany sales and costs of goods sold must be eliminated in consolidation.

Final answer:

To calculate how much Stacy must invest today to be able to withdraw $35,000 per year for 6 years, starting 4 years from today, we can use the present value of an annuity formula.

Explanation:

To calculate how much Stacy must invest today, we can use the formula for present value of an annuity. The formula is:

PV = A * (1 - (1+r)^(-n)) / r

Where PV is the present value, A is the amount that Stacy wants to withdraw each year, r is the interest rate, and n is the number of years. In this case, Stacy wants to withdraw $35,000 per year, the interest rate is 15%, and she wants to withdraw for 6 years starting 4 years from today. Let's substitute these values into the formula:

PV = 35000 * (1 - (1+0.15)^(-6)) / 0.15 = $146,049.21

Therefore, Stacy must invest $146,049.21 today in order to be able to withdraw $35,000 per year for 6 years, starting 4 years from today.

Solution:

Date           General Journal                             Debit        Credit

July 04     Accounts receivable                       5,620

                          Sales                                                        5,620

July 04       Cost of goods sold                       3,597

              Merchandise inventory                                       3,597

July 09            Cash                                       19,200

               Factoring fee expense                    800

                  Accounts receivable                                     20,000

July 17              Cash                                     $3,091

               Accounts receivable                                         $3,091

July 27            Cash                                     10,960

               Notes payable                                                 10,960

July 27        No journal entry required

Answer:

purpose.

Explanation:

When workers perform repititive functions that do not change day to day, they are most likely not involved in activities that gives understanding of the companie's goals. There is a disconnect from the business mission and vision of the business.

To be actively involved in the purpose of a business one has to be part of the decision-making process where there is variety in tasks to be accomplished.

For example in an automobile manufacturing company, the person that paints the cars everyday is not involved in decisions affecting business direction and ultimately it's purpose.

Answer:

The Atlanta's cost allocated to Nashville will be $663,500.

Explanation:

Administration: $700,000 x 80% = $560,000

Legal: $138,000 x [18,000 ÷ (18,000 + 6,000)] = $103,500

Solution: $560,000 + $103,500 = $663,500.

Final answer:

To calculate the expected variable cost for producing 115,000 units, the variable cost per unit ($4) is multiplied by the number of units (115,000), equaling $460,000.

Explanation:

When determining the expected variable cost of producing 115,000 units at Simon Inc., we first need to establish the variable cost per unit. Given that Simon Inc. is currently producing 110,000 units at a variable cost of $440,000, the unit variable cost is calculated by dividing the total variable costs by the number of units produced. This results in a cost of $4 per unit ($440,000 / 110,000 units).

Since variable costs vary directly with the level of production within the relevant range, and Simon Inc. is expected to produce 115,000 units next year which falls within the relevant range of 100,000 to 120,000 units, we can simply multiply the unit variable cost by the number of units expected to be produced.

Therefore:

Final answer:

The expected variable cost for Simon Inc. to produce 115,000 units next year, based on the current production of 110,000 units at a cost of $440,000, is calculated to be $460,000.

Explanation:

To calculate the expected variable cost for producing 115,000 units next year when Simon Inc. currently produces 110,000 units at a variable cost of $440,000, we need to use a cost-variable relationship based on the principle of proportionality within the relevant range. The given relevant range is from 100,000 to 120,000 units, which Simon Inc. is within. Thus, to find the variable cost per unit, we divide the total variable cost by the number of units currently produced:

Next, we multiply the cost per unit by the new production amount:

Therefore, if Simon Inc. produces 115,000 units next year, the expected variable cost is $460,000.

Answer:

The correct answer is letter "D": sales people's call reports.

Explanation:

Marketing outcome represents data that shows if a company succeeded or not. They reflect the firm's performance as a whole. Examples of marketing outcomes could be accounting reports or sales department reports. Marketing results, instead, portray smaller metrics out of the performance of a marketing department. Sales representative's call reports are an example of marketing results.

Tom Owens is encountering Passive Resistance from Zero Enterprises, characterized by a lack of progress despite positive feedback. To overcome this, he should engage the prospect in uncovering underlying concerns and address them.

Tom Owens is likely encountering Passive Resistance. This type of resistance involves a scenario where the prospect, in this case, Zero Enterprises, appears to be interested and expresses liking what they hear, yet does not move forth with the deal or the proposal they are being presented with. The characteristic sign of passive resistance in a sales context is when a prospect provides no firm commitment or objection, often resulting in stalled progress despite positive feedback.

When dealing with passive resistance, it's important for salespeople like Tom to try and identify the underlying reasons behind the lack of progress. This could involve asking open-ended questions to encourage the prospect to share any concerns or reservations. The goal is to get the prospect to express any hidden objections that might not have been previously voiced. Once these concerns are out in the open, Tom can then address them directly, hopefully moving the sales process forward.

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Answer:

Considering the current market and the wide growth of e-books, I would prefer to close the bookstore and establish a new business.

Explanation:

The bookstore shown in the question above has a greater focus on academic books, since it is established in a university city.

As we know, academic books tend to have high economic value, in addition to being heavy and intended for university students, who generally have reduced and weakened economic power. In this scenario, these students will prefer to use digital books, as they are cheaper, do not take up space and can all be taken to class through a digital reader.

In other words, students will prefer to buy digital books, which shows the impending decline in bookstore sales, which even if it offered discounts and promotions would not be able to compete with the attractive prices of digital books.

In that case, I would prefer to close the bookstore and start a more profitable and promising new business.

Answer:

$515.53

Explanation:

CALCULATION OF THE ESTIMATED CASH OUTFLOW EXPENSES FOR ENGINE OVERHAUL

Engine Overhaul                          Probability                 Estimated Cash

estimated cash outflow(X)                 (Y)                           flow ( X * Y)

$370                                             10%                                $37

$470                                             30%                               $141

$720                                             50%                               $360

$760                                             10%                                $76

$2320                                                                                 $614

Present Value Factor, PVF, of 3 years and 6% = 0.839619(from the table)

hence, value = $614 x 0.839619

                     = $515.53

Amount Deposited = $516 (approx)

Answer:

14%

Explanation:

Using the equation,

1. c(1 + r)/1 + c(1 + r)/2 + . . . + c(1 + r)/Y + B(1 + r)/Y = P

where

c is annual coupon payment (in dollars, not a percent)

So c = 10% of $1000

=$100

Y is number of years to maturity = 8

B is par value =$1000

P is purchase price $814.45

r is yield to maturity, rd

Therefore substitute the values

100(1+r)/1 + 100(1+r)/2 + 100(1+r)/3 + 100(1+r)/4 + 100(1+r)/5 + 100(1+r)/6 + 100(1+r)/7 + 100(1+r)/8 + 1000(1+r)/8 = 814.45

yield to maturity, rd =14.00%

Answer:

$7,695

Explanation:

The computation of the total cost is shown below:

Total cost = Direct material cost + total direct labor cost + total overhead cost

where,

Direct material cost = $2,103

Total direct labor cost = 35 direct labor hours × $17 = $595

And, the total overhead cost is

= 263 machine hours × $19

= $4,997

So, the total cost is

= $2,103 + $595 + $4,997

= $7,695

Answer:

Debit: Machine $75,360

Debit: Insurance $620

Credit: Cash $3,380

Credit: Accounts Payable $72,600

Explanation:

Before the journal is prepared, we have to do some calculations and provide explanation as follows:

Apart from the insurance cost which will be reports as just insurance expenses for the year, all other costs in the questions are relevant costs that will be added together as the costs of the machine equipment as follows:

Machine cost = Purchase price + Sales tax + Machine shipment + Machine Installation

                       = $67,000 + $5,600 + $920 + 1,840

Machine cost = $75,360

Account payable and cash can also be calculated as follows:

Account payable = Purchase price + Sales tax = $67,000 + $5,600 = $72,600

Cash = Machine shipment + Machine Installation + Machine insurance = $920 + 1,840 + $620 = $3,380

Journal entries

Debit: Machine $75,360

Debit: Insurance $620

Credit: Cash $3,380

Credit: Accounts Payable $72,600

Being the record of purchase of new machine

Note: Also see the journal entries in the attached as a complement to the above.

The total cost of the machine purchased by Orion Flour Mills is recorded by capitalizing the purchase price, sales tax, shipment, insurance, and installation costs, summing up to $75,980. The machinery asset account is debited, and accounts payable or cash is credited accordingly for each expenditure.

When Orion Flour Mills purchased a new machine, the total expenditures should be recorded as the cost of the machine on the company's books. The expenditures to be included are the purchase price of the machine, sales tax, shipment cost, insurance for the first year, and installation costs. Here is how each cost is recorded:

All these costs are capitalized as they are necessary to bring the machine to its intended use. Therefore, the journal entry to record the machine's cost would debit the machinery asset account and credit accounts payable for the purchase price plus sales tax, and debit machinery asset account while crediting cash for the other expenditures.

Journal Entry:

The total recorded cost of the machine will be $72,600 + $3,380 = $75,980.

Answer:

The correct answer is letter "B": flextime plan.

Explanation:

A flextime plan consists in linking production hours with the availability of the individuals involved in a project or work. The different timeframes of availability do not affect the operations' peak hours either the total amount of hours those individuals must work in day or week.

The flextime plan aims to provide individuals the flexibility to choose the working schedule that matches better with their personal activities which may increase their commitment to the firm and productivity.

Answer:

No, contracts for personal services are not assignable.

Explanation:

According to a different source, these are the options that come with this question:

Yes, as long as the assignment does not increases the burden on Max.

Yes, Claire can assign her obligations under the contract to anyone who accepts.

No, contracts for personal services are not assignable.

No, the assignment is not valid since Max did not give any consideration.

This is most likely not a good strategy for this woman. The fact that this woman has been hired as a freelance web designer means thta the woman is beig paid for her professional expertise. No one else can perform the job in the way that she can perform it. Therefore, she cannot assign this duty to another person.

Final answer:

A firm is more likely to buy bonds in the open market for their sinking fund when the bonds are trading below their face value or callable price, which allows them to reduce their debt at a lower cost. This can be more cost-effective and discreet compared to other redemption strategies.

Explanation:

A firm might be more likely to buy the required number of bonds in the open market as opposed to using other procedures if the market price of the bonds is below their face value or callable price. This situation becomes advantageous for the firm as it allows them to reduce the outstanding balance on their bonds at a lower cost than calling them or waiting for maturity. If interest rates have risen since the bonds were issued, the bonds might be trading at a discount, making it cheaper for the issuer to buy back its debt in the open market. Additionally, purchasing bonds on the open market can be done gradually and discreetly, avoiding the potential for price spikes that might occur with a large call or if the market anticipates the buying activity.

Conversely, if the bonds are trading at a premium in the market, the issuer may consider using the call provision if it is economically beneficial or waiting until the maturity date to repay the face value of the bonds. Decisions on whether to buy back bonds or use a call provision also depend on the firm's current financial situation, future investment opportunities, and overall market conditions.

Answer:

please see explanation

Explanation:

The following journal entry shall be booked in respect of income taxes to be recognized in the accounts of the corporation given in the question

                                                       Debit                       Credit

Deferred tax asset                         $12 million

Income taxes expense                   $2 million

($30 million*40%)

Income taxes payable                                                   $14 million

($35 million*40%)

Since, it is probable that the company will not be able to realize the 1/4th of the deferred tax asset which has been recognized by it, therefore the deferred tax asset shall be accordingly reduced  through following journal entry:

                                                              Debit                   Credit

Profit or loss(tax expense)                 $3 million

(12*1/4)

Deferred tax asset                                                           $3 million

1.

Debit Income tax expense 2

Debit Deferred tax asset 12

Credit Income tax payable 142

2.

Debit Income tax expense 3

Credit Valuation allowance—Deferred tax asset 3

Explanation:

Deferred tax asset ($30 × 40%) = $12 million

Income tax payable ($35 × 40%) = $14 million

Valuation allowance – deferred tax asset (1/4 × $12) = $3 million

Answer:

1) completed and transferred 293,000

Equivalent units under W/A method:

EU materials     338,500

EU conversion  306,000

Explanation:

Beginning WIP                 33,000

started and completed 260,000

completed and transferred 293,000

Ending WIP                      65,000

EU under weighted-average methood:

complete and transferred plus percentage of completion ending WIP

293,000 + 65,000 x 70%  =  338,500

293,000 + 65,000 x 20%  =  306,000

Answer:

COGS    3807 debit

FG          7896 debit

WIP         2397 debit

  Factory Overhead  14,100 credit

--to record the underapplication of overhead--

Explanation:

overhead rate:

[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]

$515,000 overhead /  515,000 labor cost = $1

each labor cost generates a dollar of overhead.

221,400 x 1 =   221,400 overhead in COGS

459,200 x 1 = 459,200 overhead in Finished Goods

139,400 x 1 =   139,400 overhead in WIP inventory

Total applied  820,000

Actual            805,900

Underapplied    14,100

Now we weight each concept and determiante the portion underapplocated in each concept

[tex]\left[\begin{array}{cccc}Item&Value&Weight&Allocated\\COGS&221400&0.27&3807\\FG&459200&0.56&7896\\WIP&139400&0.17&2397\\&&&\\Total&820000&1&14100\\\end{array}\right][/tex]

Answer:

The statement is: True.

Explanation:

Native advertising refers to matching the form and function of the promotion with the medium it is being published. In other words, it is the type of advertising transmitted in a similar medium of what the product might be used for. Nowadays it is more commonly spread in social media and the products inherent with its use.

The Federal Trade Commission Act (FTC) is in charge of the advertising in the U.S. Along with the government, the FTC reviews deceiving promotion that does not link the content of the products offered with their true form. The Bureau of Consumer Protection is the body that enforces regulation on fraudulent marketing practices granted by the FTC.

Final answer:

Native advertising is being studied by both industry associations and US federal government regulators, who are concerned with the blurring of lines between editorial content and advertising. - True

Explanation:

Native advertising is designed to match the form and function of the platform upon which it appears, leading to a potential conflict of interest for genuine news organizations. The concern arises as these advertisements, which are made to look like editorial content, blur the lines between journalism and promotion, making it challenging for readers to distinguish between unbiased news and paid content.

Legally, there have been a variety of regulations imposed on businesses to prevent false or misleading practices, including the prohibition of false advertising. The federal government and courts have also required disclosures on certain products, like food and tobacco, and have regulated professions such as lawyers in their advertising practices to maintain transparency and prevent fraud.

Answer:

B.0.3125

Explanation:

The computation of the cost of direct labor in $ per customer is shown below:

= Total employee cost ÷ take order time

where,

Total employee cost equal to

= Each employee wages rate per hour × number of employees

= $7.5 × 5

= $37.5

And, the take order time is

= 30 × 4 employees

= 120

So, the cost of direct labor per customer is

= $37.5 ÷ 120

= 0.3125

The bottleneck activity 'Process order' is the longest and has a wage rate of $15 per hour. In an hour, one employee serves 60 customers, leading to $0.25 per customer. When one more employee is added, the cost doubles, which is $0.50.

The bottleneck activity in this scenario is the one that takes the longest time, which is 'Process order'. This activity takes 60 seconds (i.e., 1 minute) per customer and has a wage rate of $15 per hour. Therefore, if one additional employee is added to this activity, the cost of direct labor per customer increases. To calculate the cost per customer, we divide the wage rate by the number of customers served in an hour. We know there are 60 minutes in an hour and each customer takes 1 minute, so the employee serves 60 customers in an hour. So, $15/60 = $0.25 per customer. This is the direct labor cost for one employee. If an additional employee is added, the cost doubles, so the cost of direct labor per customer would be $0.25*2 = $0.50.

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Answer:

Explanation:

Activity cost pool:

Cost = $37,290

Total activity for both products = 339

Overhead rate = $37,290/339 = $110

Cost = $165,240

Total activity for both products = 2040

Overhead rate = $165,240/2040 = $81

Cost = $123,690

Total activity for both products = 6510

Overhead rate = $123,690/6510= $19

Product F total overhead cost:

Machine setups = $110*144 = $15,840

Purchase orders = $81*890 = $72,090

General factory = $19* 2,440 = $46,360

Total = $134,290

Product G total overhead cost:

Machine setups = $110*195= $21,450

Purchase orders = $81*1150= $93,150

General factory = $19* 4070= $77,330

Total = $191,930

Final answer:

To calculate the overhead cost for each product using activity-based costing, calculate the cost per activity, then allocate these costs to each product. Product F's total overhead cost is $134,290, and Product G's total overhead cost is $191,930.

Explanation:

To determine the overhead cost for each product line using activity-based costing, we first need to calculate the cost per activity for each cost pool. This is done by dividing the total cost by the total activity for each pool.

Machine setups cost pool:

Purchase orders cost pool:

General factory cost pool:

Now, we allocate these costs to each product:

Product F's overhead cost:

Product G's overhead cost:

Explanation:

 1. The computation of the company wide break-even point in dollar sales is shown below:

Break even point = (Traceable fixed expenses + Common fixed expenses   ) ÷ (Profit volume Ratio)  

where,  

Contribution margin = Sales - Variable expenses

= $450,000 - $225,000

= $225,000

And, Profit volume ratio = (Contribution margin) ÷ (Sales) × 100

= ($225,000) ÷ ($450,000) × 100

= 50%

So, the company wide break even point in dollar sales is

= ($126,000 + $63,000) ÷ (50%)

= $378,000

b. For Chicago

Break even point = (Traceable fixed expenses) ÷ (Profit volume Ratio)  

where,  

Contribution margin = Sales - Variable expenses

= $150,000 - $45,000

= $105,000

And, Profit volume ratio = (Contribution margin) ÷ (Sales) × 100

= ($105,000) ÷ ($150,000) × 100

= 70%

So, the company wide break even point in dollar sales is

= ($78,000) ÷ (70%)

= $111,429

For Minneapolis

Break even point = (Traceable fixed expenses) ÷ (Profit volume Ratio)  

where,  

Contribution margin = Sales - Variable expenses

= $300,000 - $180,000

= $120,000

And, Profit volume ratio = (Contribution margin) ÷ (Sales) × 100

= ($120,000) ÷ ($300,000) × 100

= 40%

So, the company wide break even point in dollar sales is

= ($48,000) ÷ (40%)

= $120,000

c. The company wide break even point in sales dollars is $378,000 and the total is $111,429 + $120,000 = $231,429

So, the company wide break even point is greater than the  sum of the Chicago and Minneapolis break-even points due to the common fixed expenses

The company-wide break-even point in dollar sales is $378,000, and for the Chicago office and for the Minneapolis office it will be $111,429 and $120,000.

The break even-point is defined as the market condition where there is no profit and no loss to the seller. The producer of any product is just cover up the cost of their product.

Calculation of the company's dollar sales break-even point:

Break even point = Fixed Cost ÷ (Profit volume Ratio)  

Now, according to the given information,

Fixed Cost = Traceable fixed expenses + Common fixed expenses.

Fixed Cost = $126,000 + $63,000

Fixed Cost = $189,000.

Then, there is a need to find out the Profit volume ratio, this can be computed as:

Profit volume ratio = (Contribution margin) ÷ (Sales) × 100

Now, the contribution margin can be computed as:

Contribution margin = Sales – Variable expenses

Contribution margin = $450,000 – $225,000

Contribution margin = $225,000.

Then, Profit volume ratio = ($225,000) ÷ ($450,000) × 100

Profit volume ratio = 50%

Therefore, the company-wide break even point in dollar sales are:

Break even point sales = $189,000÷ (50%)

Break even point sales = $378,000.

This can also be computed as the formula of case 1:

Break even point = (Traceable fixed expenses) ÷ (Profit volume Ratio)  

Contribution margin = Sales – Variable expenses

Contribution margin = $150,000 – $45,000

Contribution margin = $105,000

And, Profit volume ratio = (Contribution margin) ÷ (Sales) × 100

Profit volume ratio = ($105,000) ÷ ($150,000) × 100

Profit volume ratio = 70%

Then, the company-wide break even point in dollar sales are:

Break even point sales = ($78,000) ÷ (70%)

Break even point sales= $111,429

For Minneapolis:

Contribution margin = $300,000 – $180,000

Contribution margin = $120,000

And, Profit volume ratio = ($120,000) ÷ ($300,000) × 100

Profit volume ratio = 40%

Therefore, the company-wide break even point in dollar sales is

Break even point sales= ($48,000) ÷ (40%)

Break even point sales= $120,000

As a result of the common fixed expenses, the company's break-even point is greater than the sum of the break-even points in Chicago and Minneapolis.

Learn more about the  break-even point, refer to:

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Answer:

Beak-even point  =   450 units

Explanation:

The break-even point is the level of activity where a business makes no profit or loss. At this level of activity, the total contribution equals the total  fixed costs.

To calculate the break even point in a multi product scenario, we use the formula below:

Break-even point = Fixed cost for the period / average contribution per unit

Average contribution per unit = Total contribution in a mix/ units in a mix

We will follow the steps below to work out the Break-even point:

Step 1

Calculate the average contribution per unit

contribution per unit for each product= selling price - variable cost

Basic model = 100- 75 = $25

Premium model =  150 - 100 = $50

Average contribution per unit = ( 5000 × $25) + (2500 × $50)

                                                            (   5000 + 2500) units

                                = $33.33 per unit

Step 2

Calculate the Break-even point

Break even point = $15,000/ $33.33

                           =   450 units

Answer:

BEP MIX = 450

Explanation:

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

Where:

[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]

The contribution represent the value of the sale after deducting the cost to generate the sale:

Item A

100 - 75 = 25 dollars

Item B

150 - 100 = 50 dollars

The unit sales ratio is 5,000:2,500 which is 2:1

Thus:

25 x 2/3

+ 50 x 1/3

contribution of the mix:

33.33333333

Now we return to the break even point formula:

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

[tex]\frac{15,000}{33.33} = Break\: Even\: Point_{units}[/tex]

BEP = 450

Answer:

The correct answer is letter "A": promotes better teamwork.

Explanation:

Group incentives represent all the efforts managers make to keep their subordinates motivated collectively. This is achieved by different methods such as introducing a new bonus to the team that performs better allowing teams to take more decisions on their duties. By doing so, members of a group are likely to improve their engagement with other coworkers in the pursuit of achieving an objective.

Teamwork is highly promoted by incentivizing groups compared to motivating individuals separately.