Answer:
Complements stimulate the incentive to buy the original product because customers then will have a limited, exclusive supply to use in conjunction with the main product.
Explanation:
Complementary goods are goods that are consumed together, so increase in demand for one results in increase in sand for the other. For example sugar and tea are complimentary goods.
It is found that compliments stimulate increased demand of the original product. Let's say we have a lot of sugar we can use with tea and tea level is low at home. The fact that I have a lot of sugar I can use with tea will motivate me to buy more tea, since I already have sugar I can use with it.
Economics: a. studies human behavior when scarcity exists and choices must be made. b. does not accurately explain any human behavior since it is based on the assumption of rationality. c. is the only social science that can explain the existence and behavior of public institutions. d. is better at showing the way things ought to be than the other social sciences. e. does not provide a reasonable explanation of how people make decisions.
Answer: Economics studies the behaviour of human beings when there is scarcity and choices have to be made.
Explanation:
Economics is a social science i.e study of human behavior in relation to the manufacturing, distribution and consumption of products. Economics focal point is the interaction and behaviour of economic agents (households, firms and governments) and how economies work.
Economics is divided into microeconomics and macroeconomics. Microeconomics deals with the small elements in the economy such as interaction of markets and prices of certain products. Macroeconomics deals with the whole economy and issues discussed include unemployment, economic growth, inflation etc.
Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies.
Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
a. Regulate the firm's pricing behavior.
b. Turn the company into a public enterprise.
c. Use antitrust laws to increase competition.
d. Do nothing at all.
Answer: Option B -- Turn the company into a public enterprise.
Explanation: Public enterprise can be defined as the type of organization, establishment or business that is fully or partly owned by the government but controlled by the public body/authority. Therefore, if the government wants to regulate the price of private company, which is duly imposed on the consumer, it's a must they go for public enterprise by turning the company into a public enterprise.
Suppose the government is trying to find out the private company that is taking advantage of the pricing policy and wants to control the pricing then it has to adopt certain measures.
The company is charging unfair pricing has to be turned into a public enterprise as in order to benefit the government and the people. The monopoly of the company will be destroyed and will get a public tag.Hence the option B is correct.
Learn more about the government that is skeptical of efforts to regulate prices charged by private companies.
brainly.com/question/13896079.
Marianna is writing a letter to a customer informing him that Flannery Electronic will not be able to replace his defective stereo because the warranty has expired.a. Marianna should call the customer.
b. Marianna has chosen the correct channel.
c. Marianna should send the message as an e-mail.
Answer:
c. Marianna should send the message as an e-mail.
Explanation:
An email is a way of exchanging information through electronic media. Business email is the best way of communicating with distant potential customers and clients. It is fast, affordable, and widely accepted by a majority of users. Email allows people to connect all over the world professionally and officially.
When people are transacting through email, information gets to the intended recipient instantly. Sometimes phone calls are not the best mode of communication due to costs and distortion of information. Email keeps a record of the correspondence, unlike a telephone call.
Marianna made a correct choice to use letter format for communicating about the warranty. However, e-mail could also be an effective choice depending on the company's policies.
Explanation:Based on the question, the subject in focus appears to be the communication channel Marianna is using to inform the customer about the warranty issue. In a business context, she has made a correct choice by deciding to write a letter, since it's a formal method of communication especially when delivering such type of news. However, there's an option to use e-mail which offers direct, fast, and effective means of communication. Ultimately, the choice of communication channel depends on the company's policies and relationship with the customer.
Learn more about Communication Channel here:https://brainly.com/question/33084957
#SPJ3
Of all customers purchasing automatic garage door openers, 75% purchase chain-driven model. Let X = the number among the next 15 purchasers who select the chain-driven model. a. What is the frequency function (pmf) of X?
Answer:
[tex]P(X=x)=C(15,x)\cdot(0.75)^x\cdot(0.25)^{(15-x)}[/tex]
Explanation:
The probability mass function (PMF), or frequency function, is the function that gives the probabilities that a discrete random variable take some values.
In this problem, it is requested the frequency function (PMF) for the number of purchasers, among the next 15, who select a chain-driven model.
Then , you need to find, the function that gives P(X=0), P(X=1), P(X=2), P(X=3), . . . up to P(X=15).
Such as any function, the frequency function can be presented as a formula, as a table, or as a graph.
Note that the statement represents a binomial disbribution in which success is that a customer select a chain-driven model and the fail is that a cusotmer does not select a chain-driven model.
The binomial probability for X = the number among the 15 purchasers who select the chain-driven model is given by the formula:
[tex]P(X=x)=C(n,x)\cdot(p)^x\cdot(1-p)^{(n-x)}[/tex]
Where:
[tex]C(n,x)=\dfrac{n!}{x!(n-x)!}[/tex] n is the number of times the experiment is performed: 15 in our problem p is the probability of succes: 0.75 in our problem1-p is the probability of fail: 0.25 in our problemThen, substitute:
[tex]P(X=x)=C(15,x)\cdot(0.75)^x\cdot(0.25)^{(15-x)}[/tex]
That is the frequency function.
If you want to give it as a table you must find P(X=1), P(X=2), P(X=3), . . . up to P(X=15) using that function. That is not part of the question.
During finals week, students arrive randomly at the help desk of the computer lab. There is only one technician due to budget cuts, and the time required to provide service varies from student to student. The average arrival rate is 15 students per hour, and the average service rate is 20 students per hour. Arrival rates have been found to follow the Poisson distribution, and the service times follow the exponential distribution. What is the average time spent waiting in line for each student?"
Answer:
The average time spent waiting in line for each student is 2.25 students.
Explanation:
Use Lq with a single server formula.
λ = Avg arrival rate = 15 std/hr
μ= Avg server rate (individual server capacity) = 20 std/hr
Μ = # of servers/line (identical capacities)
= λ[tex]^{2}[/tex]/μ(μ- λ)
=15[tex]^{2}[/tex] / 20(20-15)
= 225/100
=2.25 students.
There are different kinds of calculations as regards to time. Note that average service rate increases, the shape of the negative exponential distribution of service times often is known to be less gently curved as it moves ever closer to the graph start up point.
Therefore , The average time spent waiting in line for each student is 2.25 students.
This calculated by:
λ refers to Avg arrival rate. This is denoted as
= 15 std/hr
μ refers to as Avg server rate. This is individual server capacity. It is denoted as
= 20 std/hr
Μ is known as number of servers/line or simply say identical capacities.
Therefore = λ/μ(μ- λ)
Input or fill up all numbers (values) into the equation above;
=15 / 20(20-15)
= 225/100
=2.25
Conclusively, The average time spent waiting in line for each student is 2.25 students.
See full options below
What is the average time spent waiting in line for each
student? What is the average number of students in the line?
a. 2.25 students
b. 5 students
c. 15 students
d. 20 students
Learn more about average time from
https://brainly.com/question/4931057
What annual rate of return is earned on a $1,000 investment when it grows to $2,300 in six years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
14.89%
Explanation:
Present value: $1,000
Future value: $2,300
Tenor = 6 years
FV = PV * (1+ rate) ^tenor
⇔2,300 = 1,000 * (1 + rate) ^6
⇔(1+rate)^6 = 2300/1000 = 2.3
⇔ 1+ rate = 2.3^(1/6) = 1.1489
=> Rate = 1.1489-1 =0.1489 = 14.89%
Final answer:
To find the annual rate of return on a $1,000 investment that grows to $2,300 in six years, the formula for compound interest is used. The calculation reveals that the investment earns an annual rate of return of 18.00%, rounded to two decimal places.
Explanation:
The question asks what annual rate of return is earned on a $1,000 investment when it grows to $2,300 in six years. To solve this, we will use the formula for compound interest: A = P(1 + r)^n, where A is the amount of money accumulated after n years, including interest, P is the principal amount (initial investment), r is the annual interest rate, and n is the number of years.
Plugging in the given values into the formula, $2,300 = $1,000(1 + r)^6, we need to solve for r. Re-arranging the formula gives us 1 + r = ($2,300/$1,000)^(1/6). This simplifies down to 1 + r = 2.3^(1/6).
Calculating the sixth root of 2.3 and subtracting 1 gives us the value of r, which is the annual rate of return. After solving, r = 0.18 or 18.00% when rounded to two decimal places.
Naper Publishing required warehousing and shipping services for its books, so it hired Independent Publishing Group to provide the services. This is an example of ________. a. subcontracting b. revenue sharing c. insourcing d. a joint alliance
Answer:
Subcontracting
Explanation:
Subcontracting is a business practice in which the main contractor hires additional individuals or companies called subcontractors to help finish up a project. The main contractor is still in charge of the project and must supervise hires to make sure the project is carried out and completed as specified in contract.
Naper Publishing's decision to hire Independent Publishing Group for warehousing and shipping is an example of outsourcing, which allows companies to contract out portions of their business for improved efficiency, expertise, and operational flexibility.
Naper Publishing hiring Independent Publishing Group for warehousing and shipping services is an example of outsourcing. Outsourcing involves contracting out a portion of a business's operations to another party, which can take on many forms. This may include having another company handle IT services, but in the context of Naper Publishing and Independent Publishing Group, it refers to the logistics and distribution aspects of the business. Outsourcing may be leveraged by companies for reasons such as accessing specialized expertise, achieving cost savings, and increasing flexibility in operations.
In the case of Naper Publishing, outsourcing appears to be a strategic decision to optimize operations by engaging with a company that specializes in the necessary services for warehousing and shipping books. This decision can help Naper Publishing focus on its core competencies, such as publishing, while Independent Publishing Group handles logistics, which is its area of expertise. Moreover, outsourcing provides the flexibility to scale services in response to market demands without Naper Publishing having to invest in its own warehousing and shipping infrastructure.
A closed-end fund starts the year with a net asset value of $20. By year-end, NAV equals $20.90. At the beginning of the year, the fund is selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 9% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.30.
What is the rate of return to an investor in the fund during the year?
Answer:
2.5%
Explanation:
Price at the beginning = NAV at the beginning × (1 + premium)
= 20 × 1.04 = 20.8
Price at the end = NAV at the end × (1 - premium)
= 20.90 × 0.91 = 19.019
NAV increase by $0.90 but price decrease by 1.781
Returns = (0.91 × 20.90 - 1.04 × 20 + 2.30) ÷ 1.04 × 20
= 0.519 ÷ 1.04 × 20
= 0.0249
= 2.49%
= 2.5%
OR
Returns = change in P + distribution / start of year P
= -1.781 + 2.30 / 1.04 × 20
= 0.519/20.8
= 0.0249
=2.49%
= 2.5%
Exercise 13-11 The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December 31, 2017. Common Stock ($6 stated value) $2,028,000 Paid-in Capital in Excess of Par—Preferred Stock 280,000 Paid-in Capital in Excess of Stated Value—Common Stock 851,000 Preferred Stock (8%, $100 par) 550,000 Retained Earnings 1,170,000 Treasury Stock (10,000 common shares) 120,000 Prepare the stockholders’ equity section of the balance sheet at December 31, 2017.
Answer:
EQUITY
Common stock $2,028,000
Preferred stock $550,000
Paid-in Capital excess of stated value- common stock $851,000
Paid-in excess of par - Preferred stock $280,000
Retained Earnings $1,170,000
Treasury stock -$120,000
Total Equity $4,759,000
Explanation:
What type of lien can be placed on homeowners who do not pay their home association fees? A security bail bond lien An HOA lien A municipal utility lien A vendor's lien
An HOA lien can be placed on homeowners who do not pay their home association fees. It is a legal claim against the property for the amount owed, and it can lead to restrictions on the sale or refinancing of the property.
The type of lien that can be placed on homeowners who do not pay their home association fees is known as an HOA lien.
Homeowners' associations have the authority to place a lien on a property if the homeowner fails to pay the required dues or assessments.
Unlike a municipal utility lien, which is related to unpaid utility bills to the municipality, or a vendor's lien, which involves a claim by someone who has provided labor or materials that improve the property and hasn't been paid, an HOA lien specifically relates to homeowners’ association dues. An HOA can typically enforce this lien by placing restrictions on the sale or refinancing of the property until the debt is paid.
The smartphone industry has been revolutionized in the past five years. The emergence of industry operating system front-runners Apple and Android has led to complete and total dominance of the market. While each company would be included in releases of newer, better, and technologically improved smartphones each year, the difference in technology from each newer version is getting less and less distinguishable. One could argue that the smartphone industry is reaching its:
a. disruptive technology.
b. decline.
c. natural limit.
d. technological paradigm shift.
Answer: Disruptive technology
Explanation: The Smartphone industry is experiencing disruptive innovation which is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances.
Answer:
Letter c is correct. Natural limit.
Explanation:
On this question, we can argue that the smartphone industry is reaching the natural limit by launching new smartphones more frequently and with technological differences in each newer version that is becoming less and less distinguishable.
This is because companies such as Apple and Samsung use the smarthphones launch strategy with few changes in functionality and design, but with the aim of increasing the price and attracting consumers who always want to purchase the most updated version of the device, but with the market slowdown, and with the paradigm shift of a portion of consumers, who are taking longer to change cell phones, the company like Apple is betting on a change in strategy, which will expand the cycle of major changes of its smartphone two to three years, to develop improvements and new features that are in fact attractive to the consumer.
You are considering moving your money to new bank offering a one-year CD that pays an 5 %5% APR with monthly compounding. Your current bank's manager offers to match the rate you have been offered. The account at your current bank would pay interest every six months. How much interest will you need to earn every six months to match the CD?
To match the interest rate of the new bank's CD with monthly compounding, we need to calculate the interest earned every six months at the current bank.
Explanation:To match the interest rate of the new bank offering a one-year CD with monthly compounding, we need to calculate the interest earned every six months. Let's assume the principal amount is $1000. To find the interest earned every six months at the current bank, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the compounding frequency per year, and t is the number of years.
Since interest is paid every six months, n would be 2. Plugging in the values, we have: A = 1000(1 + r/2)^(2*(1/2)), where r is in decimal form. We can solve for the interest earned every six months and compare it to the interest earned from the CD to see if they match.
Learn more about matching interest rates here:https://brainly.com/question/33983865
#SPJ3
Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows:
Item Quantity Unit Cost Market Value LCM per Total LCM Recorded
on Hand When Acquired at Year Item Total Cost
(FIFO)
Alligator-
Armoires 70 $46 $41 $3,220
Bear-
Bureaus 85 80 80 6,800
Cougar-
Credenzas 10 90 92 900
Dingo-
Cribs 35 35 35 1,225
Elephant-
Dressers 400 15 12 6,000
Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV.
Answer:
Journal entry
31 December Debit Inventory write_down (loss) 1550, Credit inventory 1550
Explanation:
Inventory is accounted for at the lower of cost or net realizable value. inventory write_ down is impairment a loss to the organisation
there can never be a gain when revaluing inventory, either it remains at cost or goes down with NRV
cost market write down
closing inventory calculation
Alligator ( 70 units) 3220 2870 350
Bear (85 units) 6800 6800 0
Cougar ( 10 units) 900 920 0
Dingo ( 35 units) 1225 1225 0
Elephant ( 400 units ) 6000 4800 1200
18145 16615 1550
COUGAR has a high market value so we value it at cost because it is the lower of the two.
The Journal entry will includes a Debit to Inventory write down (loss) for $1550 and Credit to inventory for $1550
What is Inventory?This is accounted for at the lower of cost or net realizable value.
The inventory write down is impairment and loss to the organisation
Particulars Cost Market Write down
Closing inventory calculation
Alligator (70 units) 3220 2870 350
Bear (85 units) 6800 6800 0
Cougar (10 units) 900 920 0
Dingo (35 units) 1225 1225 0
Elephant (400 units) 6000 4800 1200
Total 18145 16615 1550
In conclusion, the Journal entry will includes a Debit to Inventory write down (loss) for $1550 and Credit to inventory for $1550
Read more about Journal entry
brainly.com/question/14279491
On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $220 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions): 2018 2019 2020 Costs incurred during the year $ 40 $ 80 $ 50 Estimated costs to complete as of December 31 120 60 — Required: 1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of 2019 are $80 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method.
Answer:
The solution to the problem is given below.
Explanation:
Requirement 1
Revenue recognition:
2018: [tex]\frac{40}{160}[/tex] = 25% * $220 = $55
2019: [tex]\frac{120}{180}[/tex] = (66.67% × $220) – $55 = $91.67
2020: $220 – ($55 + $91.67) = $73.33
Gross profit (loss) recognition:
2018: $55 – 40 = $15
2019: $91.67 – 80 = $11.67
2020: $73.33 – 50 = $23.33
Requirement 2
Year Revenue recognized Gross profit (loss) recognized
2018 0 0
2019 0 0
2020 $220 $50
Requirement 3
2019 Revenue recognition:
[tex]\frac{120}{200}[/tex] = (60% × $220) – $55 = $77
2019 Gross profit (loss) recognition using the percentage of completion:
[tex]\frac{120}{200}[/tex]= 60% × $20* = $12 – 15 = $(3) loss
Managers should select the capital structure that A. maximizes the value of the firm. B. has no debt. C. is fully levered. D. minimizes taxes. E. produces the highest current level of net income.
Answer:
A. maximizes the value of the firm.
Explanation:
Managers should select the capital structure that "A", maximizes the value of the firm. He may select a capital structure with full debt or no debt, based on certain fact and conditions.
Capital Structure may result in Minimum taxes and generate Current level of Income but the most important is to maximize the value of the firm.
The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues $70000 Expenses: Salaries and Wages Expense $45000 Rent Expense 12000 Advertising Expense 10000 Supplies Expense 6000 Utilities Expense 2500 Insurance Expense 2000 Total expenses 77500 Net income (loss) $ (7500) After the revenue and expense accounts have been closed, the balance in Income Summary will be Entry field with incorrect answer a credit balance of $7500. a credit balance of $70000. $0. a debit balance of $7500.
Answer:
Explanation:
incorrect answer
a credit balance of $7500
correct answer
a debit balance of $7500.
Answer:
a credit balance of $7500
Explanation:
The income summary is where the elements of the income statement are closed. Revenue account is closed by crediting the income summary and debiting revenue. For expenses, credit expense and debit income summary.
For net loss, credit net loss and debit income summary. Where a profit or income was made, credit income summary and debit net income.
Hence the incorrect entry here is credit balance of $7500.
Peter owns 100 shares of a company. He receives a fixed rate of dividend from these shares. Which type of share has Peter purchased?
A.
equity shares
B.
preference shares
C.
ordinary shares
D.
priority shares
E.
investment security
Peter owns preference shares, which provide dividends at a fixed rate. In general, a shareholder can garner returns on stocks in two ways: dividends and capital gains.
Explanation:Peter has purchased
B. preference shares
. Preference shares, often used by corporations, offer dividends that are paid prior to common stock dividends and are fixed, which means they do not fluctuate with the company's fortunes. Shareholders, like Peter, who own these shares receive dividends at a fixed rate. Similar to owning any stock of a firm, as a shareholder, Peter possesses a partial ownership claim on the company, subject to the number of shares he owns.
It's crucial to understand the two ways a shareholder might receive rate of return on stocks: dividends and capital gains. A dividend represents a direct payment from the firm to its shareholders. A capital gain, meanwhile, is the increase in the stock value between when one buys and sells it.
Learn more about Preference Shares here:https://brainly.com/question/33504758
#SPJ12
a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. b. At the end of January, $5,300 of accounts receivable are past due, and the company estimates that 35% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. d. Accrued income taxes at the end of January are $13,600. 3. Prepare an adjusted trial balance as of January 31, 2021.
Answer:
Trial Balance : Debit 15558 = 15558 Credit
Explanation:
b.) Noncollectable amount = $5300 * 35% = 1855
Entry: Dr bad debts expense 1855
Cr Allowance for bad debts 1855
(To record bad debts expense).
5300-1855= 3445 * 3% = $103 will not be collected.
Entry: Dr Bad debts expense 103
Cr Allowance for bad debts 103
( To record bad debts expense)
d.) Entry:
Dr Income tax expense 13600
Cr Income tax payable 13600
(To record accrued income tax expense).
Ledgers :
Bad debt expense = 1855+103 = 1958
Allowance for bad debts = 1855+103 = 1958
Income tax expense = 13600
income tax payable = 13600.
Trial balance:
_Dr__________________________________________________Cr____
Bad debt expense 1958 ----- 1958 Allowance for bad debts
Income tax expense 13600 ----- 13600 Allowance for bad debts
Total = 15558 ------- Total = 15558
The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson’s short-term debt (notes payable) increase without pushing its current ratio below 2.0? What will be the firm’s quick ratio after Nelson has raised the maximum amount of short-term funds? Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (MindTap Course List) (p. 130). Cengage Learning. Kindle Edition.
Answer:
Explanation:
Current ratio = Current assets/current liabilities
Quick ratio = Current assets-Inventories/current liabilities
Current ratio = 1,312,500/525,000 = 2.5
If the firm wants to raise funds as additional note payable without icreasing its current ratio of 2:
Current ratio = (Current assets+NP)/(Current liab.+NP)
2 = (1,312,500+NP)/(525,000+NP)
NP = 262,500; Additinal Note payable can be maximum of 262,500
Quick ratio = (1,312,500-(375,000+262,500))/787,500 = 1.19
On April 1, 2018, Paul sold a house to Amy. The property tax on the house, which is based on a calendar year, was due September 1, 2018. Amy paid the full amount of property tax of $2,500. Calculate both Paul and Amy’s allowable deductions for the property tax. Assume a 365-day year. (Do not round your intermediate calculations. Round your final answers to two decimal places.)
Answer:
Paul = $616.44
Amy = $1883.56
Explanation:
Given
Full Amount = $2,500
There are 90 days between January 1, 2018 and April.
Calculating the amount generated by Paul;
Paul = $2,500 * 90/365
Paul = $616.4383561643835
Paul = $616.44 ---- Approximated
There are (365-90)days left after April 2, 2018 till December 31, 2018
Calculating Amount Generated by Amy
Amy = $2,500 * (365-90)/365
Amy = $2,500 * 275/365
Amy = $1883.561643835616
Amy = $1883.56 --- Approximated
That is the total allowable deduction for Paul and Amy
A marketing manager is attempting to decide whether a new product launch decision should be postponed until some additional marketing research can be conducted. Which question should this manager ask himself or herself?
Answer:
The correct answer is letter "C": Will the payoff from the research be worth the dollar expenditures for research?
Explanation:
Postponing the launch of a product implies losing sales opportunities. If the reason why the launch will be postponed is additional marketing research -whether necessary or not, the research itself implies expenditures. Thus, if choosing the research instead of the launch, the results of the study must bring good enough profits for the company after the launch to offset the delayed expenses of the additional study.
nderson produces color cartridges for inkjet printers. Suppose cartridges are sold to mail-order distributors for $12 each and that manufacturing and other costs are as follows: Variable Cost per Unit Fixed Cost Per Month Direct material $4.00 Factory overhead $17,000 Direct labor 0.40 Selling and administrative 8,000 Factory overhead 0.50 Distribution 0.10 Total $5.00 Total $25,000 The variable distribution costs are for transportation to mail-order distributors. Also assume the current monthly production and sales volume is 20,000 and monthly capacity is 25,000 units. If the sales price per unit increases by $2.00 and unit sales decrease by 2,000 units, Anderson’s monthly profit would: Select one:
Answer:
Anderson's Profit is $112,800 after the change in Price and Volume, Although it was $90,000 before the changes.
Explanation:
Unit sold is 20,000 units
Unit Sales Price is $12
Therefore total Sales Value is $240,000
Cost of Production
Direct Material costs $4 x 20,000 = $80,000
Fixed Cost $17,000
Direct Labour costs $0.40 x 20,000 = $8,000
Factory Overhead $0.50 x 20,000 = $10,000
Total Production costs = $115,000
Total Margin = ($240,000 - $115,000) = $125,000
Variable Distribution Costs $5 x 20000 x 0.10 = $10,000
Other Distribution Costs $25,000
Total Distribution costs $35,000
Profit = ($125,000 - $35,000) = $90,000
***If Sales Price increases by $2/unit and Unit Sales drops by 2,000 units
Unit sold is 18,000 units
Unit Sales Price is $14
Therefore total Sales Value is $252,000
Cost of Production
Direct Material costs $4 x 18,000 = $72,000
Fixed Cost $17,000
Direct Labour costs $0.40 x 18,000 = $7,200
Factory Overhead $0.50 x 18,000 = $9,000
Total Production costs = $105,200
Total Margin = ($252,000 - $105,200) = $146,800
Variable Distribution Costs $5 x 18000 x 0.10 = $9,000
Other Distribution Costs $25,000
Total Distribution costs $34,000
Profit = ($146,800 - $34,000) = $112,800
To calculate the monthly profit, determine the new revenue and cost after the changes in selling price and unit sales, then subtract the cost from the revenue.
Explanation:To calculate the monthly profit, you need to first calculate the total revenue and the total cost. The total revenue is the selling price per unit multiplied by the number of units sold. The total cost is the sum of the fixed cost and the variable cost per unit multiplied by the number of units sold. Subtract the total cost from the total revenue to get the monthly profit.
For example, if the selling price per unit increases by $2 and the unit sales decrease by 2,000 units:
1. Calculate the new revenue: Revenue = (Selling price per unit + Increase in selling price) x (Current monthly production and sales volume - Decrease in unit sales)
2. Calculate the new cost: Cost = (Fixed cost per month + Variable cost per unit) x (Current monthly production and sales volume - Decrease in unit sales)
3. Calculate the new profit: Profit = Revenue - Cost
Plug in the values to calculate the new profit.
Barr Mfg. provided the following information from its accounting records for 2017: Expected production60,000 labor hours Actual production56,000 labor hours Budgeted overhead$900,000 Actual overhead$970,000 How much is the overhead application rate if Barr bases the rate on direct labor hours?A. $15.54 per hour
B. $15.00 per hour
C. $14.50 per hour
D. $16.07 per hour
Answer:A - $15.00 per hour
Explanation:from the information given above, we are making use of the expected production and budgeted overhead.
= $900,000/60,000 labour hours
= $15.00 per labour hours
The overhead application rate for Barr Mfg. is calculated by dividing the budgeted overhead of $900,000 by the expected labor hours of 60,000. This results in an overhead application rate of $15 per hour.
Explanation:The overhead application rate is computed by dividing the budgeted overhead by the expected production in terms of labor hours. In this case, Barr Mfg. had a budgeted overhead of $900,000 and expected to produce with 60,000 labor hours.
So, the overhead application rate would be $900,000 / 60,000 labor hours = $15 per hour (option B).
Learn more about Overhead Application Rate here:https://brainly.com/question/32419191
#SPJ3
g Assume that a 15-year, $1,000 face value bond pays interest of $37.50 every 3 months. If you require a simple annual rate of return of 12 percent, with quarterly compounding, how much should you be willing to pay for this bond
Answer:
I will pay $1,207.56 for this bond.
Explanation:
Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:
According to given data
Coupon payment = C = $37.5
Number of periods = n = 4 x 15 years = 60 periods
Current Yield = r = 12% / 4 = 3% semiannually
Price of the Bond = $37.5 x [ ( 1 - ( 1 + 3% )^-60 ) / 3% ] + [ $1,000 / ( 1 + 3% )^60 ]
Price of the Bond = $37.5 x [ ( 1 - ( 1.03 )^-60 ) / 0.03 ] + [ $1,000 / ( 1.03 )^60 ]
Price of the Bond = $1,037.83 + $169.73
Price of the Bond = $1,207.56
In the market for reserves, an open market _____ shifts the supply curve to the _____, lowering the federal funds interest rate. a. sale; left b. sale; right c. purchase; right d. purchase; left
purchase; right
Answer: Option C.
Explanation:
When the economy is operating in an open market and there is purchase of the reserves, the supply curve will shift towards the right which means that the supply of the reserves in the market will increase.
With the increase in the supply of the reserves which is caused by shifting of the supply curve towards the right direction, the interest rate of the federal funds will shift downwards from the original position of the interest rate of the federal fund.
What are some of the primary reasons a company decides to expand internationally? Identify a company in the news that has recently built a new overseas facility. Which of the three motivations for global expansion described in the chapter do you think best explains the company’s decision? Discuss.
Answer:
Primary reasons a company would decide to expand internationally are as follows:
Expanding markets and increasing sales are one of the primary reasons. Companies get globalized in order to become a market leader. The company may choose to enter into international market in order to diversify a company's product line. Markets and investments would be protected by companies once they enter into international market and get engaged in an international business. Controlling the expenses is again one of the most important reasons. Company would buy the resources to gain cost advantage. For example, the company which is located in Canada gets most of their resources from China; the company would look forward to get situated near China. Another reason would be, to get protected from their competitors or to gain advantage over them; the company would decide to expand internationally.
The three motivational factors that induce a company to go global are as follows:
Economies of Scale — The advantage that a company gain through mass production to achieve the lowest possible production cost per unit. Economies of scope — The advantage that a firm gains by producing different varieties of products and services and at different regions. Low-Cost Production Factors — It is an opportunity to purchase the resources at the lower possible cost.Jaguar Land Rover decided to manufacture cars outside the UK for the first time. In recent years, it has rapidly expanded in its home UK and the company is planning to go to Brazil and implement the strategies that they had implemented in India.
Jaguar Land Rover moves to other countries to gain the opportunity of producing at a lower price and to gain economies of scale.
Companies expand internationally to seek new markets, achieve economies of scale, and utilize cheaper labor and materials. The motivation behind setting up an overseas facility could be to capitalize on differences in technology, demand, or government trade policies.
Explanation:Primary Reasons for International Expansion
Companies decide to expand internationally for several key reasons, including the pursuit of new markets, economies of scale, and the need for access to raw materials or cheaper labor. These factors can lead to horizontal integration in the business's value chain. A recent example in the news could be a tech company opening a new overseas facility to utilize local talent and reduce production costs due to cheaper labor in the region.
Technology advancements and globalization have allowed businesses to operate seamlessly across borders, which can lead to cultural and societal changes within host communities. A company's motives for expansion may align with aims to exploit differences in technology, resource endowments, consumer demand, or to take advantage of the presence of government policies that favor trade.
Ultimately, the motivations for a company to build a new overseas facility may include accessing new customer bases, achieving cost efficiencies, or gaining a competitive advantage in the industry. Whether a company’s decision is most influenced by technological benefits, economic strategies such as economies of scale, or strategic market positioning, it largely depends on the unique goals and circumstances surrounding the international expansion.
Martinez Manufacturing incurred $ 4 comma 000 for indirect labor in Department III. The journal entry to record indirect labor utilized, but not paid is ________. Process costing is used.
Answer:
debit Manufacturing Overhead, $4,000; credit Wages Payable
Explanation:
Remember that indirect labor expenses are added to the Factory Overhead account, therefore Martinez Manufacturing journal entry to record is to debit Manufacturing Overhead $4,000 and then credit Wages Payable since the expenses was not paid.
It is important to note that in any case a manufacturing company is to list the direct labor expense separately from its indirect labor and wages paid to other employees.
Martinez Manufacturing incurred $4,000 for indirect labor in Department III. The journal entry to record indirect labor utilized, but not paid is Debit Manufacturing Overhead; Credit Indirect Labor Payable. Process costing is used. So, the correct answer is c.
Here's an explanation:
Indirect labor refers to labor costs that cannot be traced directly to a specific product but are necessary for the production process.When indirect labor costs are incurred but not paid, they are recorded in the Manufacturing Overhead account.This overhead is considered a liability until paid, hence recorded as Indirect Labor Payable.This ensures proper tracking of expenses and liabilities in manufacturing accounting systems.Complete Question:
Martinez Manufacturing incurred $4,000 for indirect labor in Department III. The journal entry to record indirect labor utilized, but not paid is ________. Process costing is used.
a) Debit Work in Process Inventory; Credit Indirect Labor Payable
b) Debit Indirect Labor Payable; Credit Work in Process Inventory
c) Debit Manufacturing Overhead; Credit Indirect Labor Payable
d) Debit Indirect Labor Payable; Credit Manufacturing Overhead
Classify each of the following based on the macroeconomic definitions of saving and investment.
A.Ginny buys new bulldozers for her construction firm.
B.Eric purchases a certificate of deposit at his bank.
C.Kenji takes out a mortgage for a new home in Detroit.
D.Lucia purchases stock in Pherk, a pharmaceutical company.
Answer and explanation:
Saving implies setting an amount of money of your income aside and put it into a bank account or store it somewhere considered safe. If deposited in a bank the money gains interest, thus, there will be a relative increase in the initial sum deposited.
Investing implies providing money to a third party or using that money personally to start up a venture. In such cases, there is a risk that the investment could be lost.
Thus:
A) Ginny buys new bulldozers for her construction firm. (Investment)
B) Eric purchases a certificate of deposit at his bank. (Saving)
C) Kenji takes out a mortgage for a new home in Detroit. (Investment)
D) Lucia purchases stock in Pherk, a pharmaceutical company. (Saving)
Why did Burberry initially chose a licensing strategy to expand its presence in Japan? What limitations of the licensing strategy became apparent over time? Should Burberry have expected these drawbacks to arise? Was terminating the Japanese licensing agreement and opening wholly owned stores the correct strategic move for Burberry? What are the risks here? To what extent does internalization theory explain Burberry’s experience in Japan?
The main reason was that for 50 years Burberry licensing arrangement with Sanyo Shokai generated them a revenue of $800 M and the company need not spend money on developing its iconic brand in japan
Explanation:
Why did Burberry first license in Japan?
The main reason was that for 50 years Burberry licensing arrangement with Sanyo Shokai generated them a revenue of $800 M and the company need not spend money on developing its iconic brand in japan
What limitations of Burberry's licensing strategy became apparent over time? Should they have expected these drawbacks?
The most important factor was the pricing caused problems because the product of Burberry was priced lower than the company charged in other countries
Was terminating the Japanese licensing agreement and opening stores the correct strategic move for Burberry? What were the risks?
Burberry had little /no choice left but to end the agreement with Sanyo Shokai .Yes opening its own stores in japan was the correct strategic move for Burberry . Burberry now assumes all costs and risks of operating in Japan.
To what extent does Internalization theory explain Burberry's experience in Japan?
We can say that Burberry's experience is consistent with internalization theory - while the company licensed its brand initially,it ended its licensing arrangement in favor of wholly-owned operations to gain better control over its brand and how it is was being used
Burberry used a licensing strategy in Japan for quicker market entry, risk reduction, and less upfront investment. Over time, the drawbacks such as loss of brand control became apparent, leading Burberry to switch strategies—opening wholly owned stores—to align the brand's image globally. This move is explained by the internalization theory which suggests companies will internalize their operations if the costs of the external market are too high.
Explanation:Burberry initially chose a licensing strategy to expand its presence in Japan because this approach allowed faster market entry, reduced risks, and required less investment. The licensee, Sanyo Shokai, had a strong reputation and business structure in Japan, which facilitated Burberry's initial success. Nonetheless, over time, the limitations of this strategy became apparent. The main drawbacks included loss of control over the brand’s image, quality, and product range. Consequently, some of the products circulating in Japan under the Burberry brand didn’t reflect the company's global image and strategic direction.
Burberry should have anticipated these issues as they are common risks associated with the licensing strategy. The decision to terminate the licensing agreement and open wholly owned stores can be regarded as a strategic move towards preserving the brand's image and aligning its global strategy. The risks relate to the investments necessary for establishing their own stores, potential difficulties in navigating the Japanese market without a local partner, and potential short-term revenue loss.
Internalization theory, which suggests companies will opt to conduct foreign operations themselves if the costs of using the external market are too high, partially explains Burberry's experience in Japan. Burberry effectively internalized its operations in response to the high costs - not monetary, but in terms of brand dilution - associated with the licensing agreement.
Learn more about Burberry's Licensing Strategy here:https://brainly.com/question/33997941
#SPJ2
A stock has an expected return of 11.9 percent, its beta is .94, and the risk-free rate is 5.95 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Market expected return %
Answer:
The market expected return is 12.28%
Explanation:
According Miller and Modgliani Capital Asset Pricing Model,the expected return on a stock is given by the formula below:
Ke=Rf+Beta(Market expected return-Rf)
Rf is the risk free-rate of return
Ke=11.9%
Beta=0.94
risk-free rate of return=5.95%
11.9%=5.95%+0.94(MER-5.95%)
11.9%=5.95%+0.94MER-5.593 %
11.9%=0.357 %+0.94MER
11,9%-0.357%=0.94MER
11.543 %=0.94MER
MER=11.543%/0.94
MER=12.28%
The market expected rate having Miller and Modgiliani CAPM formula is 12.28%