Kokomochi is considering the launch of an advertising campaign for its latest dessert​ product, the Mini Mochi Munch. Kokomochi plans to spend $ 6.5 million on​ TV, radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by $ 10.1 million this year and $ 8.1 million next year. In​ addition, the company expects that new consumers who try the Mini Mochi Munch will be more likely to try​ Kokomochi's other products. As a​ result, sales of other products are expected to rise by $ 2.1 million each year. ​Kokomochi's gross profit margin for the Mini Mochi Munch is 34 %​, and its gross profit margin averages 23 % for all other products. The​ company's marginal corporate tax rate is 35 % both this year and next year. What are the incremental earnings associated with the advertising​ campaign?

Answer:

B. turn over inventory as quickly as possible without stockouts.

Explanation:

Inventory turnover is defined as the number of times a business sells off its stock on hand and so require replenishment in a year.

The higher the inventory turnover, the higher the number of sales and higher profits.

Cash conversion cycle is how long a business can survive without cash and investing in inventory to increase sales.

To minimise cash conversion cycle a business should ensure it sells of its inventory quickly without stockout.

Stock repurchase involves various reasons, but it is not done if the stock is needed for employee bonuses. The correct answer is A.

Stock repurchase, also known as stock buyback, is a strategy used by companies to buy back their own shares from the marketplace. Companies may repurchase stock for various reasons, including improving financial ratios, preventing unwanted takeover attempts, and making investments in their own stock. However, a company would not repurchase its stock if it needs the stock specifically for employee bonuses.

Answer:

Explanation:

Davy Company    

Ending Work in process inventory:  

Beginning Work in process inventory       $32,000

Materials placed in production      $54,500  

Direct Labor      $63,400  

Manufacturing Overhead applied      $79,250 [125% of $63,400]

Total cost of work in process  $229,150 [add up all of the above numbers]  

Less: Jobs completed during the year  $225,000

Ending Work in process inventory         $4,150

Answer:

14 contracts should be used in hedging.

Explanation:

The heating oil price is 0.93

The volatility of heating oil price is 0.03,

The volatility of jet fuel oil price is 0.02

Determining Minimum variance ratio

0.93×0.02/0.03 = 0.62

Each heating oil futures contract trade is 42,000 gallons of heating

ThereforeThe optimal number of contract is :

O.62×1,000,000/ 42,000 = 14.76

Converting 14.65 to nearest whole number will give us 14

Answer:

B. The trend between the present and future values of an investment

Answer:

Bigeq.com is a site that also offers classified ads for horses, and is one of the ExchangeHunterJumper.com’s biggest market competitor. One service that the Exchange offers that this site does not is that the Exchange professionally screens horses that are listed, while Bigeq.com allows anyone to post sales ads. Therefore, the horses on the Exchange are more likely to be appropriately described and have a better track record than those on Bigeq.com. However, this does mean that Bigeq.com typically has more horses listed than the Exchange does.

Another service that the Exchange provides is that all of the horses listed have high-quality videos and photos within the site that the customer can view, while not all of the horses on Bigeq.com have videos or photos, and those that do are linked to outside websites, some of which are not very good quality. The Exchange continually updates information on the horses available, while the ads on Bigeq.com are static once they have been submitted by the seller.

ExchangeHunterJumper is a specialized platform providing niche services for hunter/jumper show horses, emphasizing professional presentation and marketing, unlike broader classified ad sites like EquineNow or HorseClicks.

To compare classified ad sites for horses, one would look for reputable platforms such as EquineNow or HorseClicks, which offer a variety of services ranging from ads for selling horses to equipment and even real estate. When compared to ExchangeHunterJumper, which specializes in the sale of hunter/jumper show horses, it's evident that The Exchange offers a more niche service. The Exchange provides a customer value proposition focused on high-caliber show horses and includes services such as professional photography and marketing for each listed horse to ensure they are presented in the best possible way. Other sites may have a broader scope but might not offer the same level of presentation or specialization in the hunter/jumper discipline.

By focusing on quality over quantity and the niche of show horses, The Exchange establishes itself as a premium offering within the equestrian market.

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Answer:

37 years

Explanation:

We know,

Future value = Present value (1 + r)^n

Given,

Future value, FV = $230,000;

Present value, PV = $32,000;

Interest rate, r = 5.5% = 0.055;

We have to determine how many years later I can purchase the Ferrari.

Now, putting the values into the formula, we get,

FV = PV × (1 + r)^n

or, $230,000 = $32,000 × (1 + 0.055)^n

or, $230,000 ÷ $32,000 = (1 + 0.055)^n

or, 7.1875 = (1 + 0.055)^n

or, log 7.1875 = n × log 1.055

or, n × log 1.055 = log 7.1875 [Changing the side]

or, n = log 7.1875 ÷ log 1.055

Using financial calculator/Scientific Calculator,

or, n = 0.8566 ÷ 0.0233

Therefore, n = 36.76 or almost 37 years.

Answer:

You can spend  $4,913.86 to buy a motorbike.

Explanation:

Giving the following information:

You were given $16,000 by a relative with no strings attached. You decide to pursue 2 goals: (1) buy a motorbike today and (2) buy a used car for $12,000 when you graduate college in 4 years. Your interest rate is 2% compounded annually.

To buy the car, you can separate in the present the amount of money required to reach $12,000 in 4 years. The rest of the money can be used to buy a motorbike.

First, we need to calculate the present value of $12,000 using the following formula:

PV= FV((1+i)^n

PV= 12,000/1.02^4= $11,086.14

16,000 - 11,086.14= $4,913.86

Answer:

d. The payments must be in cash and must be received by the spouse (or former spouse).

Explanation:

There was not an obligation that alimony should be paid only in cash, It could be made by check, bank transfer, deposit, or another financial transaction mean. However, it is noted that it could be paid in cash, but preferably, if the couple does not have an amicable relationship post-marriage, some kind of receipt should be received to prove that transaction.

Final answer:

The days sales outstanding (DSO) is 0.104 days and the average amount of receivables is $226,849. If Snider toughens its collection policy to all nondiscount customers paying on the 45th day, the DSO would be 0.095 days and the average receivables would be $207,671.

Explanation:

The days sales outstanding (DSO) can be calculated using the formula:

DSO = [(30% × 10) + (70% × 50)] / 365

Plug in the values:

DSO = [(30% × 10) + (70% × 50)] / 365
= [3 + 35] / 365
= 38 / 365
= 0.104

Now, to find the average amount of receivables, we can use the formula:

Average Receivables = (DSO × Annual Sales) / 365

Plug in the values:

Average Receivables = (0.104 × $800,000) / 365
= $226.849

If Snider toughens its collection policy and all nondiscount customers pay on the 45th day, the new DSO can be calculated as:

DSO = [(30% × 10) + (70% × 45)] / 365
= [3 + 31.5] / 365
= 34.5 / 365
= 0.095

Using the formula for average receivables, the new average receivables would be:

Average Receivables = (0.095 × $800,000) / 365
= $207,671

Answer:

Answers are explained below in the explanation part.

Explanation:

(a) In 2019, Aurora is required to add $25000 income because this was the amount that was transferred initially to employee from the employer.

(b) In 2020, Aurora can claim a deduction of $2800 (8000*35% = 2800). Now in 2020, Aurora will not be given reduction in taxes as she has claim amount due from taxes which she claimed of the extra taxes charged in year 2019.

Answer:

1)  b. National security documents

   c. Documents with confidential information

2)   i - requires

    ii - open

   iii - accused of a crime

   iv - future

   v - future

  vi - closed

3) c. Regulatory Flexibility Act

4) True

5) True, 60days

Explanation:

1) Two categories of records that are exempt from public disclosure under the Freedom of Information Act are; "National security documents  & Documents with confidential information".

2) The Government in the Sunshine Act requires all agency meetings to be open to the public unless they meet certain criteria. If a person is going to be accused of a crime, if future agency action would be frustrated, or if the meeting involves future litigation or rule making, then the meeting may be closed.

3) The law which requires the government to reassess the impact on business and continue to look for less burdensome means of achieving a governmental goal is Regulatory Flexibility Act.

4)  It is true that the Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes.

5) The Small Business Regulatory Enforcement Fairness Act gives Congress 60 days to review new federal regulations to be sure that they do not unduly burden small businesses.

Answer:

Explanation:

1. Categories of records that are exempt from public disclosure under the Freedom of Information Act are:

1. National security documents

2. Documents with confidential information

The above stated are exempted from the freedom of information act.

2. The Government in the Sunshine Act requires all agency meetings to be open to the public unless they meet certain criteria. If a person is going to be accused of a crime , if national defence agency action would be frustrated, or if the meeting involves legal litigation or rule making, then the meeting may be kept private.

3. C. Regulation Flexibility Act: This act is used to balance the social goals of federal regulations with the needs and capabilities of small businesses and other small entities in the American society.

It was enacted in September 1980 which requires agencies  to consider the impact of their regulatory proposals on small entities and analyze effective  alternatives that minimize small entity impacts, and make their analyses available for  public comment.

4. The Regulatory Flexibility Act relieved small businesses of certain record-keeping requirements under agency rules and federal statutes. True or False?

False- this is because the regulatory flexibility act requires agencies to examine public policy issues using  an analytical process that identifies barriers to small business competitiveness and seeks a  level playing field for small entities, not an unfair advantage.

5. The Small Business Regulatory Enforcement Fairness Act gives Congress days to review new federal regulations to be sure that they do not unduly burden small businesses. True or False?

False

Answer:

A. $460,000

B. No

Explanation:

Given:

Number of share = 100,000

underwriter’s explicit fee = $60,000

Offer price = $40

New Price = $44

A.

The Total cost of Equity share = [tex][Number of equity share \times (New price - old price)] + explicit fees[/tex]

[tex]= [100,000 \times (44-40)] + 60,000\\= [100,000 \times4] + 60,000\\= 400,000 + 60,000\\= 460,000[/tex]

B.

No. The brokers do not catch the portion of the costs relating to the price quoted.

Final answer:

The total cost to DRK, Inc. for the equity issue is $460,000, considering both explicit fees and the opportunity cost from underpricing. Not all the underwriting costs are profit, as underwriters also have associated expenses.

Explanation:

The total cost to DRK, Inc. of the equity issue can be calculated by considering both the explicit fees paid to the underwriters and the opportunity cost of underpricing the shares. The explicit fees are given as $60,000.

The opportunity cost, known as underpricing, is the difference between the offering price and the immediate post-issue share price, multiplied by the number of shares. This can be calculated as follows: (Post-issue price – Offering price) × Number of shares = ($44 – $40) × 100,000 = $400,000.

Therefore, the total cost of the equity issue would be the explicit fees plus the underpricing cost: $60,000 + $400,000 = $460,000.

As for the second question, the entire cost of underwriting is not pure profit for the underwriters. They incur costs to market, sell and organize the share issue. However, the difference between the price they pay for the shares and the price at which they sell the shares to investors (minus their costs) would be their profit.

Answer:

IRR of the project is 18%

Explanation:

The first table showing the cash flows for the 10 years and the formula for computing the IRR.

The second table showing the IRR of the project, which is 18%.

Computing the IRR by using the excel formula, which as:

=IRR(values,guess)

where

values are from year 0 to year 10

guess will be 0

So,

=18%

NOTE: The cash flow of year 0 is negative because it is costs of the project, which is paid.

Answer:

a) 0.10 or 10%

b) 0.5417 or 54.17%

Explanation:

a) The median income of $60,000 is at the 50th percentile of the distribution. If 40% if incomes are above $72,000, then an income of $72,000 is at the 60th percentile of the distribution. Therefore, the probability that a family's income will be between $60,000 and $72,000 is:

[tex]P( \$60,000 \leq X \leq \$72,000)=0.6-0.5\\P( \$60,000 \leq X \leq \$72,000)=0.1 = 10\%[/tex]

b) If the distribution is known to be uniform, the probability that a random chosen family has an income below $65,000 is:

[tex]P( X \leq \$65,000)=0.5+\frac{65,000-60,000}{72,000-60,000}*0.1\\ P( X \leq \$65,000)=0.5417 =54.17\%[/tex]

In probability and statistics, a randomly chosen family has a 10% chance of having an income between $60,000 and $72,000 given the provided information. If the income distribution is uniform and the upper limit is assumed at $72,000, the probability of a family having an income below $65,000 is approximately 42%.

The questions pertain to the fields of probability and statistics in mathematics.

For (a), it is indicated that 40% of families have an income above $72,000, which means that 60% of families have an income of $72,000 or less. Since the median income is $60,000, half of the families earn this amount or less. Therefore, the probability that a randomly chosen family has an income between $60,000 and $72,000 is the difference between these two percentages, which is 10% or 0.10.

For (b), in a uniform distribution, the probability is calculated as the length of the interval divided by the total length. Here, we don't know the upper limit of the income range. However, we can still make an estimation. If we assume the upper limit to be $72,000 (as 40% of people make more than this), the probability of a randomly chosen family having income below $65,000 would be the ratio of (the difference between the lower bound of $60,000 and $65,000) to (the difference between the lower and upper bounds, which is $12,000). So that would roughly be $5,000/$12,000 = 0.42 or 42%.

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Answer:

=  $120,500.00

Explanation:

Flexible budget is that which  is that which recognizes the cost behavior and is used for control purpose. It is prepared based on the actual level of activity achieved.

Kindly note that the $59,000 depreciation is a fixed cost which do not vary with the hours of production.

The flexible budget for the department will be

Direct Labour budget = ( 51000/3400) × 4,100

                         =  $61,500.00

Equipment depreciation= $59,000

Total flexible budget = $61,500.00 + $59,000

                                   =  $120,500.00

Explanation:

1. The computation of the number of helmets sell to earn operating income is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $75 - $40

= $30

So, the number of helmets sold is

= ($49,500 + $81,900) ÷ ($30)

= 4,380 helmets

2. And , the contribution margin income statement is presented below:

Sales (4,380 helmets × $75)                     $328,500

Less: Variable cost (4,380 helmets × $45)  ($197,100)  

Contribution margin $131,400

Less: Total fixed cost (49,500)  

Net income                $81,900

Answer:

The three main reasons that might make n-tire architectures used in online businesses are Their intuitive system structure for administrators, their layering organization of processes, and the ability to maintain data separated in two different pools.

Explanation:

Three main reasons make n-tire architecture could be used in an online business.

The first one is that its structure allows administrators to identify the problems of the webpage and focus on the matter instead of having to review all of the structure to find out what is going on.

The second reason is that its layering organization provides the best setup to reuse applications. Which in other words says that the structure itself can make it possible to apply this structure to different purposes.

The third one is that the data access and data storage pools are separated and can be reviewed as well as provide maintenance to them in different times, to keep some functionality available in the process to test it and review if it works properly instead of doing it all together and testing after the process is done.

An n-tier architecture is used by online businesses to build scalable and robust systems. It includes layers for presentation, business logic, and data storage. This architecture enables separation of concerns, maintainability, and scalability.

An n-tier architecture is often used by online businesses to build scalable and robust systems. In this architecture, the system is divided into multiple layers or tiers, each responsible for a specific set of functions. The typical n-tier architecture includes a presentation layer, business logic layer, and data storage layer.

The presentation layer is responsible for displaying the user interface and handling user interactions. It may consist of web servers, mobile apps, or desktop applications. The business logic layer contains the core functionality of the application and handles the processing of user requests. It interacts with the presentation layer and other layers to perform tasks such as data validation, business rules implementation, and communication with external systems. The data storage layer consists of a database or data storage system where information is stored and retrieved.

By using an n-tier architecture, an online business can achieve separation of concerns, maintainability, and scalability. Each layer can be developed, tested, and maintained independently, making it easier to update or modify specific components without affecting the entire system. Additionally, the modular nature of the architecture allows for scalability by adding additional servers or resources to handle increasing user and data demands.

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Answer:

Book Value at end of year 6 = $100,000

Explanation:

An Asset is depreciated to salvage value therefore when depreciation is complete the book value equals salvage value or zero.

Salvage value is an estimated value of what the company expects to earn after using the asset maybe when selling off the asset.

Answer:

Check the explanation

Explanation:

Year  Depreciation Rate  Depreciation=400000*rate  Book value

1                            20                       80000                      320000

2                            32                        128000                    192000

3                          19.2                       76800                      115200

4                           11.52                     46080                     69120

5                           11.52                      46080                    23040

6                            5.76                    23040                         0

Therefore, the book value at the end of year 6 = 0

Answer:FALSE

Explanation:Financial statements includes income statements, expenditure statement etc they are prepared following specified guidelines and are prepared to monitor and regulate the flow of funds within an organisation.

Managerial accounting is an accounting system designed to help managers take effective and efficient managerial decisions. THE EXTERNAL USERS OF FINANCIAL STATEMENTS ARE NOT MANDATED TO USE IT TO plan for the future THE INTERNAL USERS OF MANAGERIAL ACCOUNTING MUST NOT USE IT TO DECIDE TO

INVEST IN OR LEND TO A COMPANY.

Explanation:

Monotonous work: Sometimes monotonous work irritates the help desk.

Seeking for same information: When providing the same information again and again to a different customer.

Lack of work recognition: At times failing to appreciate the effort create stress.

Talking without rest: Continuously answering without taking a break might cause stress.

Work pressure: When the work pressure increases there is a possibility of stress being more.

Inflexible working hours: Change in life style due to change in work hours might create stress.

Work-life imbalance: This also act as a source for stress.

Taking regular medications, family pressure, undervalued pay scale everything counts for stress.

Answer:

a. 2560 checkout

b. 3072 checkout

c. Old system = 3.85 checkout/$

New system = 5.56 checkout/$

Explanation:

Given:

Checkout lanes = 4

a.

How many checkouts did the old system provide in a shift?

Given

Lanes = 2

Time in use = 16 hours --- Convert to seconds

Time = 16 * 3600 = 57600 seconds

Checkout = 1 per 45 seconds

Number of check outs is calculated as:

2 lanes * 57600 seconds * 1 checkout / 45 seconds

Number of checkout = 2560 checkouts

b.

How many checkouts does the new system provide?

Lanes = 4

TimeTime in use = 16 hours --- Convert to minutes

Time = 16 * 60 = 960 minutes

Number of check outs is calculated as:

4 lanes * 960 minutes * 1 checkout / 1.25 minutes

Number of checkout = 3072 checkouts

c.

Given

Electricity costs for both setups are $0.06 per checkout

Bagging (material) costs are $0.12 per checkout with the old system

Bagging (material) costs are $0.20 per checkout with the old system

Cost for the old system is calculated by:

$0.06 * 2560 + $0.12 * 2560

= $153.6 + $307.2

= $460.3

Multifactor = 2560 checkout/$460.3

Multifactor = 5.56 checkout/$

Cost for the new system is calculated by:

0.06 * $3072 + 0.20 * $3072

= $184.32 + $614.4

= $798.72

Multifactor = 3072 checkout/$798.72

Multifactor = 3.85 checkout/$

The old system could provide 1280 checkouts in one shift while the new system can provide 768. The multifactor productivity, which equals output divided by the sum of labor, capital, and material inputs, is higher for the old system (37.5) as compared to the new system (29.5).

(a) The old system: First, we need to convert 16 hours (the length of one shift) into minutes since our other time measurements are in minutes. That gives us 960 minutes (16 * 60). Considering each checkout took 45 seconds, or 0.75 minutes, we can calculate the number of checkouts in one shift by dividing the total minutes by the checkout time: 960 / 0.75 = 1280 checkouts.

(b) The new system: Here, the checkout time is 1.25 minutes. Using the same method as above, 960 / 1.25 gives us 768 checkouts in one shift.

(c) The multifactor productivity is calculated as the output divided by the sum of labor, capital, and material inputs.

For the old system: Output = $12 * 1280 (revenue per checkout * number of checkouts) = $15,360. Labor = 2 workers * 16 hours * $10/hour = $320. Capital is the electricity cost, which is $0.06 * 1280 = $76.8. Material is the bag cost, which is $0.12 * 1280 = $153.6. Therefore, the multifactor productivity is $15,360 / ($320+$76.8+$153.6) = 37.5.

For the new system: Output = $10 * 768 = $7680. Labor = 16 hours * $10/hour = $160. Capital is both the electricity cost, $0.06 * 768 = $46.08, and the daily capital cost of $25. Material is the bag cost, which is $0.20 * 768 = $153.6. Therefore, the multifactor productivity is $7680 / ($160+$46.08+$25+$153.6) = 29.5.

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Answer: 1. The core benefit

2. Expected product

Explanation:

Product Levels model indicates the degree to which certain products and services meet the expectations of customers. There are basically five product levels models which include; Core benefit, Generic product, Expected product, Augmented product, and Potential product.

The two product levels model Carrie experienced in her purchase of the Nikon 7576, and Monarch 5 are;

a. The core benefit: A product meets the core benefit when it meets the needs of the customer. The two products purchased by Carrie satisfy her basic need of binoculars that would enable her to observe wildlife from a distance.

b. Expected Product: This is factored when the product features meets the expectation of the customer. In Carrie's case, she liked the feel and features of these devices and this implies that they met her expectations.

The two levels of the product levels model that Carrie experimented with in this buying process were the core benefit and the expected product.

Corresponds to the satisfaction of the basic needs of the customer through the characteristics of a product.

The Product Levels model is able to describe how customer expectations are met through products and services. The expected product is a level that corresponds to the positive perception of the product.

Therefore, by purchasing the binoculars, Carrie satisfied her need for remote viewing of wildlife with a favorable perception of the product's features and functionality.

Find out more about purchase process here:

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Answer:

The accounts to be categorized are as follows.

(1) Notes and loans payable (short term) (2) Materials and supplies (3) Common stock (4) Patents (an intangible asset) (5) Income taxes payable (6) Long-term debt (7) Marketable securities (short term investments) (8) Property, plant and equipment (9) Retained earnings (10) Notes and accounts receivable (short term) (11) Investments (long term) (12) Cash and cash equivalents (13) Accounts payable (14) Crude oil products and merchandise (15) Additional paid up capital

The balance sheet classification of these accounts is as follows.

Account                                                Classification                          Balance

(1) Notes and loans payable                Current liability                        Credit  

(2) Materials and supplies                   Current asset                            Debit

(3) Common stock                                Shareholders' equity               Credit

(4) Patents                                             Non-current asset                    Debit

(5) Income taxes payable                    Current liability                         Credit

(6) Long-term debt                               Non-current liability                 Credit

(7) Marketable securities                     Current asset                            Debit

(8) Property, plant and equipment      Non-current asset                    Debit

(9) Retained earnings                           Shareholders' equity               Credit

(10) Notes and accounts receivable    Current asset                            Debit

(11) Investments (long term)                  Non-current asset                    Debit

(12) Cash and cash equivalents           Current asset                            Debit

(13) Accounts payable                          Current liability                         Credit

(14) Crude oil products                         Current asset                            Debit

(15) Additional paid up capital              Shareholders' equity               Credit

The activities of Exxon Mobil Corporation are represented in different categories on a classified balance sheet. These categories include Non-Current Assets (mostly with debit balance), Current Assets, Current Liabilities (mostly with credit balance), Non-Current Liabilities, and Shareholder's Equity (with credit balance). The crude oil, natural gas, and petroleum products form part of the Inventory under Current Assets.

The accounts represented in Exxon Mobil Corporation's activities - exploration, production, refining, marketing, and supplying of crude oil, natural gas, and petroleum products are typically categorized under several categories on a classified balance sheet. These categories include Non-Current Assets, Current Assets, Current Liabilities, Non-Current Liabilities, and Shareholder's Equity.

The exploration, production, and refining activities mostly relate to Non-Current Assets and would usually have a debit balance. These include accounts such as Property, Plant, and Equipment, Intangible Assets, and Investments.

The marketing and supplying activities usually pertain to Current Assets and Current Liabilities. Current Assets like Inventory, and Accounts Receivable, would ordinarily have a debit balance while Current Liabilities, like Accounts Payable, would have a credit balance. The crude oil, natural gas, and petroleum products they sell would fall under Inventory in Current Assets.

Lastly, the Shareholder's Equity section would usually have a credit balance, representing the owners' claim on the company's assets after all debts have been paid. This section includes Retained Earnings and Common Stock.

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Answer:

1. $1,250

2. $855.95

3. $3,333.33

4. $92.59

5. $46.32

6. $671.01

Explanation:

1.

$100 per year forever

Constant Cash flow every year forever is actually a perpetuity its present value is

PV of Perpetuity = Cash flow / rate of return

PV of $100 Perpetuity = $100 / 0.08 = $1,250

2.

$100 per year for 15 years

Constant Cash flow every year for specific time period is actually a Annuity  its present value is

PV of annuity = P + P [ ( 1 - ( 1 + r )^-n ) / r ] = $100 + $100 [ ( 1 - ( 1 + 0.08 )^-15 ) / 0.08 ] = $855.95

3.

$100 per year grow at 5% forever

It is a growing perpetuity and its present value will be calculated as follow

Present value of growing perpetuity = Cash flow / Rate of return - growth rate

Present value of growing perpetuity = $100 / 0.08 - 0.05 = $3,333.33

4.

$100 once at the end of this year

Present value = P ( 1 + r)^-n = $100 ( 1 + 0.08 )^-1 = $92.59

5.

$100 once after 10 years

Present value = P ( 1 + r)^-n = $100 ( 1 + 0.08 )^-10 = $46.32

6.

$100 each year for 10 years @ 8%

PV of annuity = P + P [ ( 1 - ( 1 + r )^-n ) / r ] = $100 + $100 [ ( 1 - ( 1 + 0.08 )^-10 ) / 0.08 ] = $671.01

Answer: Please refer to the explanation section

Explanation:

Investment = 100

Interest rate = r = 8%

1. Value of a Perpetual (forever) investment  

Present Value =  Investment/r = 100/0.08 = 1250

Present Value = $ 1250

2. Present Value with a period of 15 years

Present Value = Investment/(1+r)^n

Present Value = 100/(1+0.08)^15 = 31.524170497

Present Value = $ 31.52

3. Present Value of a Perpetual (forever) investment with Growth rate of 5%

Present Value =  Investment/r = 100/0.08 – 0.05 = 3333.333333

Present Value =  $ 3333.33  

4. Future Value if we get 100 at the end of the year

Future Value = investment(1+r) = 100(1+0.08) = 108

Future Value = $ 108

5. Future Value if we get 100 at the end of 10 years

Future Value = investment(1+r) = 100(1+0.08)^10 = 251.524170497

Future Value = $ 251.52

6. Future Value if 100 is reinvested every year for 10 years

Future Value = Payment x [(1+r)^n – 1)/ r]

Future Value = 100 x [(1+0.08)^10 – 1)/ 0.08)

Future Value = 1448.6562466 = $ 1448.66

Answer:

The correct answer is letter "C":​ Is usually considered competitive.

Explanation:

Patents are grants of property given to creators on their inventions. Most patents are valid for 20 years counted from the filing date with the United States Patent and Trademark Office (USPTO). After the patent expires, other individuals can make use and exploit the creation. In such circumstances, the invention becomes competitive since it can be replicated by other entities, which was forbidden while the patent was valid.

Answer:

6,000

Explanation:

This question is incomplete. I have given the complete question in addition to my solution below.

If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?

Morganton Company makes one product and it provided the following information to help prepare the master budget:  

The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,700, 28,000, 30,000, and 31,000 units, respectively. All sales are on credit.

Forty percent of credit sales are collected in the month of the sale and 60% in the following month.

The ending finished goods inventory equals 20% of the following month’s unit sales.

The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.

Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.

The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.

The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $67,000.

Variable manufacturing overhead = $10 per direct labor hour

Amount of time required to finish one unit of goods = 2 hours

Direct labor wage rate = $15 per hour

Amount of raw materials required to finish one unit of goods = 4 pounds

Cost of raw materials = $2.50 per pound

Budgeted selling price per unit = $70

Budgeted unit sales for August = 30,000

Therefore, Unit costs = (4*2.50)+(15*2)+(10*2) = $60 per unit

And cost of goods sold = 28,000 * 60 = $1,680,000

(Gross margin) = (70-60)*28,000

= $280,000

The ending finished goods inventory balance for July = 20% of the following month's (August’s) unit sales.

= 0.20 * 30,000 = 6,000

Answer:

The maximum IRA contribution William can make is $6000 a year.

Explanation:

There are limits in the IRA contribution plans to make sure that there are no people benefiting more than others because of their high pay instead limits are per age. if younger than 50 years then Maximum contribution per year is $6000 and if older then it is $7000 it is increasing with age not salary.

Answer:

Simple Payback period is 2.52 years.

Discounted Payback period is 2.97 years

Explanation:

Payback period is the number of years that a project takes to recover the project's initial investment.

Simple Payback

Project A                                                                                          

Time:                0            1            2            3             4              5

Cash flow    –$1,500   $550    $630     $620       $400       $200

Payback period = 550/550 + 630/630 + (1500-550-630)/620 = 2.52 years

Payback period = Approximately 2.52 years

In simple term it will take 2.52 years to recover the initial investment.

Discounted payback

Project A                                                                                          

Time:                0            1            2            3             4              5

Cash flow    –$1,500   $550    $630     $620       $400       $200

PV @ 9%      –$1,500   $505    $530     $479       $283        $130

Payback period = 505/505 + 530/530 + (1500-505-530)/479 = 2.97 years

Payback period = Approximately 2.97 years

It will take about 2.97 years to recover the initial investment of $1,500 using discount rate of 9%  

Project A's payback statistic is 3.06 years, indicating that it takes 3.06 years for the project to recoup its initial investment.

Project A Cash Flows

| Year | Cash Flow |

| 0 | -$\$10,000 |

| 1 | \$2,000 |

| 2 | \$3,500 |

| 3 | \$5,000 |

| 4 | \$9,000 |

Payback Calculation

Determine the cumulative cash flows at the end of each year:

| Year | Cumulative Cash Flow |

 | 0 | -$\$10,000 |

   | 1 | -$\$8,000 |

   | 2 | -$\$4,500 |

   | 3 | \$500 |

   | 4 | \$14,500 |

Identify the year where the cumulative cash flow becomes positive. In this case, it's year 3.

Calculate the remaining investment:

Remaining investment = Initial investment - Cumulative cash flow at the end of year 2

Remaining investment = $10,000 - $500 = $9,500

Calculate the proportion of the remaining investment that is recovered in the next year:

Proportion of remaining investment recovered in year 4 = Remaining investment / Cash flow in year 4

Proportion of remaining investment recovered in year 4 = $9,500 / $9,000 = 1.0556

Calculate the payback statistic:

Payback statistic = Year 2 + (Proportion of remaining investment recovered in year 4)

Payback statistic = 2 + 1.0556

Payback statistic = 3.0556

Rounded Payback Statistic

The payback statistic for Project A is 3.06 years, rounded to two decimal places. This means that it takes 3.06 years for the project to recover its initial investment.

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Answer:

This good is a normal good and income-inelastic

Explanation:

Elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.

Elasticity of demand = (new quantity demanded - old quantity demanded) / ( new quantity demanded - old quantity demanded) / 2) / (New income - Old income ) / (old income + new income)/2)

(5 - 3) / (3 + 5)/ 2) / ( 33500-31900) / (31900+33500)/2) = 6.45

The coefficient of elasticity is greater than one, therefore, demand is income elastic.

This means that a small change in income leads to a greater change in quantity demanded.

A normal good is a good whose demand increases when income increases and falls when income falls.

Eating out is a normal good because her demand increased when income increased.

I hope my answer helps you