Answer:
The interest revenue will Savor record in Year 1 on this lease at 9% is $347,697
Explanation:
Present value of Lease Payment = $4,561,300
Less: First Payment on Jan 1, 2018 = $698,000
Remaining Balance = $3,863,300
Interest Revenue for Year 1 at 9% = $3,863,300 × 9%
Interest Revenue for Year 1 at 9% = $347,697
The ABC Corporation decreases all of its inputs by 12 percent and finds that its output falls by only 8 percent. This means that initially it was producing Multiple Choice in the range of diseconomies of scale. in the range of economies of scale. where AP is less than MP. at the point of minimum efficient scale.
Answer:
In the range of diseconomies of scale
Explanation:
Economies of scale refers to a concept whereby a firm accrues cost advantage owing to it's increased scale of production.
Economies of scale points towards efficient production.
Conversely, Diseconomies of scale refers to the phase wherein a firm experiences cost disadvantages owing to increase in organizational operations and output level.
Reasons for operation of this phase being, lack of motivation and proper coordination between employees since there are too many employees and management gets difficult.
In the given case, as the corporation decreased it's inputs, the output fell less proportionately which means the firm was earlier operating in the phase of diseconomies of scale.
The ABC Corporation is experiencing economies of scale.
Explanation:The scenario described in the question suggests that the ABC Corporation is experiencing economies of scale. Economies of scale occur when a company's output increases at a higher rate than its inputs decrease. In this case, the output falls by only 8 percent while the inputs decrease by 12 percent, indicating that the company is becoming more efficient in its production process.
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At the end of the season, a merchandiser notices that 80% of the items he manages have left over inventory. Another merchandiser notices that only 20% of her items have left over inventory. Who makes better decisions
The second manager makes better decision amongst the two managers
Explanation:
Inventory refers to that part of the final goods or the products that have remained unsold for the current period. Generally, Inventory is associated with liability in the long term since they are associated with storage surcharges and obsolescence threats.
Amongst the two managers, the second manager is more capable of making a better decision since his decisions led to just 20% of the net produced goods to turn inventory which remains advantageous for the company. Whereas for the first manager, 80% of the items remain as inventory. Hence more risk and greater storage surcharges for the firm
Gary is taking out a $5,000 loan for 1 year at an APR of 12%. His bank has offered him a loan using the add-on method. Using first the financial calculator method and the add-on method calculate Gary's monthly loan payment. Select one: A. $475.00; $448.94 B. $444.24; $466.67
Using the financial calculator method, Gary's monthly loan payment is $444.24. Using the add-on method, Gary's monthly loan payment is $466.67.
Explanation:In order to calculate Gary's monthly loan payment using the financial calculator method, we need to use the formula:
Monthly payment = P * r * (1+r)^n / [(1+r)^n - 1]
Where:
P is the principal amount ($5,000)r is the monthly interest rate (APR / 12)n is the number of payments (1 year * 12 months)So, for Gary's loan:
P = $5,000
r = 12% / 12 = 1%
n = 1 year * 12 months = 12
Plugging these values into the formula gives us:
Monthly payment = $5,000 * 0.01 * (1+0.01)^12 / [(1+0.01)^12 - 1]
Simplifying this expression gives us:
Monthly payment = $5,000 * 0.01 * (1.01^12) / [(1.01^12) - 1]
Calculating this expression gives us:
Monthly payment = $444.24
Therefore, using the financial calculator method, Gary's monthly loan payment is $444.24.
Using the add-on method, we need to calculate the total amount paid over the year and then divide it by 12 to get the monthly payment. The total amount paid over the year would be the principal amount plus the interest, which is:
Total amount paid = principal amount + (principal amount * APR)
For Gary's loan:
Total amount paid = $5,000 + ($5,000 * 0.12)
Simplifying this expression gives us:
Total amount paid = $5,000 + $600 = $5,600
Dividing this total amount by 12 gives us the monthly payment:
Monthly payment = $5,600 / 12 = $466.67
Therefore, using the add-on method, Gary's monthly loan payment is $466.67.
lue Inc. has decided to raise additional capital by issuing $171,000 face value of bonds with a coupon rate of 11%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $115,200, and the value of the warrants in the market is $28,800. The bonds sold in the market at issuance for $140,000. Prepare the journal entry
Answer:
Explanation:
Value assigned to bonds =
Value of bonds without warrants/(value of bonds without warrants+value of warrants)*Issue price
Value assigned to warrants =
Value of warrants/(value of bonds without warrants+Value of warrants)
Value assigned to bonds = 115,200/(115,200+28,800) * 140,000 = 0.8*140,000 = 112,000
Value assigned to warrants = 28,800/144,000 * 140,000 = 28,000
Journal entries:
Dr Cash 140,000
Dr Discount on bonds payable (171,000-112,000) 59,000
Cr Bonds payable 171,000
Cr Paid in capital-Stock warrants 28,000
To prepare the journal entry for the bond issuance with detachable stock warrants, we allocate the issuance price of $140,000 proportionately between the bonds and the warrants based on their market values. The allocation results in $112,000 for bonds and $28,000 for warrants. The journal entry includes debit to cash and credits to bonds payable and paid-in capital – stock warrants.
To prepare the journal entry for Blue Inc., we need to allocate the issuance price of $140,000 between the bonds and the warrants. The market values provided are $115,200 for the bonds (without warrants) and $28,800 for the warrants.
The total market value is $115,200 + $28,800 = $144,000. We will allocate the issuance price based on the proportionate market values.
Step-by-Step Calculation
Determine the allocation percentages:Apply allocation to issuance price:Journal Entry
Debit: Cash $140,000
Credit: Bonds Payable $112,000
Credit: Paid-in Capital – Stock Warrants $28,000
The manager of a large apartment complex knows from experience that 100 units will be occupied if the rent is 400 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 4 dollar increase in rent. Similarly, one additional unit will be occupied for each 4 dollar decrease in rent. What rent should the manager charge to maximize revenue
Answer:
For a rent of $400.00 = 100 units will be occupied;
For a rent of $404.00 = 100 unit will be occupied;
For a rent of $396.00 = 101 units will be occupied.
Explanation:
For a rent of $400.00 = 100 units will be occupied
For a rent of $404.00 = 100 unit will be occupied since 1 additional unit will be vacant.
For a rent of $396.00 = 101 units will be occupied.
∴ The most adequate rent to be charged by the manger to maximize revenue is $396.00 since an additional unit will be occupied.
International investors pulled their funds out of Asia and moved them into mostly the United States. Using the large open economy model that we learned in class, analyze the impact of this policy on U.S. interest rates, real exchange rate, and trade balance.
Answer:
Policy impact will be positive
Explanation:
When investors pull out their funds from Asian, it will amount to scarcity of funds for developmental purposes. The contrary is the case when such funds are plunged into the US market. Its impact to the economy include:
1. Create more opportunity for development
2. Reduces the interest rate of lending in the society
3. Exchange rate value will decrease just because more of these funds will be used for business transactions
4. The prices of goods will be adjusted to balance the different caused by inflation
ABC assumes all costs in a ________ can be grouped together because they all impact the activity.
(A) cost pool.
(B) department.
(C) time period.
(D) organization.
(E) product line.
Answer:
The correct answer is letter "A": cost pool.
Explanation:
Activity-Based Costing or ABC is a managerial accounting method used to assign some indirect costs to the products which incur the bulk of those costs. By doing so, it is assumed that all those costs in the cost pool can be bundled because they are relevant for production. In the manufacturing sector, ABC is mainly used to help measure the true cost of production per unit.
Which of the following is a contingency that would most likely require accrual? Sales tax payable. Customer premium offers. Potential liability on a product where none have yet been sold. Potential claims on extended warranties.
Answer:
The correct answer is B
Explanation:
The contingency is the plan, which is course of action for the business that would take if an unexpected situation occur. So, the contingency plan is the plan or method which ensures that the business is prepared for what may come.
Accrual for contingency, it is the information which is available previously to issuance of the financial statements that indicates the assets has been impaired and the loss amount could be reasonably estimated.
The one which is most likely need the accrual is the customer premium offers as it is the technique of sales promotion where the customers are provided two or more products and they pay the price lower of the combined products.
Bramble Corp. provided the following information on selected transactions during 2018: Purchase of land by issuing bonds $1010000 Proceeds from issuing bonds 3080000 Purchases of inventory 3760000 Purchases of treasury stock 610000 Loans made to affiliated corporations 1340000 Dividends paid to preferred stockholders 409000 Proceeds from issuing preferred stock 1590000 Proceeds from sale of equipment 305000 The net cash provided (used) by investing activities during 2018 is
Answer:
-$1,035,000
Explanation:
The computation of the cash flows from investing activities is presented below:
Cash flows from investing activities
Loans made to affiliated corporations -$1,340,000
Add: Process from sale of equipment $305,000
Net cash used by investing activities -$1,035,000
The loan made is an cash outflow whereas the proceeds from sale of an equipment is cash inflow so we did the adjustment accordingly
Exercise 13-04 a-e Bramble Corporation issued 3,100 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,650.) (a) The stock had a par value of $10 per share and was issued for a total of $49,500. (b) The stock had a stated value of $10 per share and was issued for a total of $49,500. (c) The stock had no par or stated value and was issued for a total of $49,500. (d) The stock had a par value of $10 per share and was issued to attorneys for services during incorporation valued at $49,500. (e) The stock had a par value of $10 per share and was issued for land worth $49,500.
Answer:
Cash 49,500 debit
Common Stock 31,000 credit
Additional paid.in 18,500 credit
--to record issuance of shares--
legal fees expense 49,500 debit
Common Stock 31,000 credit
Additional paid.in 18,500 credit
--to record issuance of shares for services--
land 49,500 debit
Common Stock 31,000 credit
Additional paid.in 18,500 credit
--to record issuance of shares for land --
Cash 49,500 debit
Common Stock 49,500 credit
--to record issuance of no-par stock--
Explanation:
We will compare the amount collected from the shares issued against the face value to get the amount of additional paid-in:
3,100 shares x $10 = 31,000
we collect $ 49,500
additional paid-in 18,500
When there is a no-par value we post the entire amount against common stock.
The government has imposed a fine on JJ's Place. The fine calls for annual payments of $60,000, $70,000, $75,000, and $50,000, respectively, over the next four years. The first payment is due one year from today. The government plans to invest the funds until the final payment is collected and then donate the entire amount, including the investment earnings, to help the local community shelter. The government will earn 5.5 percent on the funds held. How much will the community shelter receive four years from today?
a.$328,572
b.$277,491
c.$263,025
d.$236,875
e.$285,737
Answer:
b.$277,491
Explanation:
The computation of the future value is shown below:
Annual payments Discount factor Future value
$60,000 1.174241375 $70,454.4825
$70,000 1.113025 $77,911.75
$75,000 1.055 $79,125
$50,000 1 $50,000
Total Future value $277,491.2325
The discount factor is
= (1 + 0.55)^3 + (1 + 0.55)^2 + (1 + 0.55)^1 + (1 + 0.55)^0
Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods, CIF port of Amsterdam. The seller refused to ship. The buyer brings an action for damages. In the US, a court would probably rule
Answer: b.
damages should be measured by the difference between the contract price and the market price of the goods at the port of shipment
Explanation: Because the contract has already been initiated and was defaulted by the seller. The Judge would ask him to pay for damages. And this will be measured by subtracting the contract price of the goods from the market price. I.e the price the goods would gave been sold and the price the seller accepted to sell to the buyer according to the contract they signed.
Garfield Corp. expects to sell 1,300 units of its pet beds in March and 900 units in April. Each unit sells for $110. Garfield’s ending inventory policy is 30 percent of the following month’s sales. Garfield pays its supplier $40 per unit. Prepare Garfield’s purchases budget for March.
Answer:
$62,800
Explanation:
Following Garfield Corp's policy, the number of pet beds that must be purchased, assuming no initial inventory, is given by the expected number of sales in March (1,300 units) added to 30% of the expected sales in April (30% of 900 units):
[tex]n=1,300 +(0.3*900)\\n=1,570\ units[/tex]
Since the company purchases each pet bed for $40, total budgeted purchases are:
[tex]P=\$40*n=\$40*1,570\\P=\$62,800[/tex]
Garfield Corp's total budgeted purchases for March are $62,800.
A & D Window Cleaning performed $450 of services but has not yet billed customers for the month. If A & D fails to record the adjusting entry, what is the impact on the financial statements? A. balance sheet: assets understated; equity overstated income statement: expense understated B. balance sheet: liabilities overstated; equity understated income statement: revenues understated C. balance sheet: assets overstated, equity understated income statement: expenses understated D. balance sheet: assets understated, equity understated income statement: revenues understated
Answer:
D. balance sheet: assets understated, equity understated income statement: revenues understated
Explanation:
The adjusting entry is as follows:
Account receivable A/c Dr XXXXX
To Service revenue A/c XXXXX
(Being the service performed is recorded)
Since this above journal entry is not recorded that reflect the assets understated on the income statement due to which the equity, as well as the revenues, are also understated in the balance sheet and the income statement respectively
Which one of these is the best way to prevent foreclosure? Save at least 1% of your home’s purchase price annually Refinance as soon as possible Use a budget to live within your means and build savings Never accept an adjustable-rate mortgage
Answer:
Use a budget to live within your means and build saving
Explanation:
Taking loans in engaging in capital projects are not to be discouraged,but the opinion or the fear of the masses is, if such loans could be paid back or the lender will be forced to apply foreclosure on your assets.
Through living within your means and with a healthy and well planned saving budget,all borrowed money will be definitely paid back to the lender .
Don James purchased a new automobile for $15,000. Don made a cash down payment of $3,750 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase. Financing is available at a 24% annual interest rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the amount of the required monthly payment. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)
Answer:
The monthly payments are calculated below.
Explanation:
Total monthly instalments= 15,000-3,750
=11,250
Amount payable at 24% annual financing;
A=P (1+r/100)n
=11,250(1+24/100)30/12
=$642
FV=PV (1+r)n
i) FV=12,000*(1.08)16
= $41,111
ii) FV =16,000*(1.05)15
= $33,263
iii) FV =29,000*(1.11)12
= $101,455
iv) FV =49,000*(1.04)7
= $64,481
Final answer:
Don James needs to calculate the monthly payment of his automobile loan with a 24% annual interest rate using the present value annuity formula, accounting for his down payment and financing terms.
Explanation:
Don James needs to calculate the monthly payment for his new automobile loan. With a purchase price of $15,000, a down payment of $3,750, and the remaining balance to be financed at a 24% annual interest rate, we can use the formula for the present value of an annuity to find the required monthly payment. Although detailed information from the provided factor tables is necessary to complete this calculation, the general form of the present value annuity formula can still be demonstrated. Typically, the present value (PV) of an annuity formula is used, and the payment (PMT) could be found as:
PV = PMT * [1 - (1 + i)^-n]/i, where i represents the monthly interest rate and n is the total number of payments.
In the context of a financing calculation, one can calculate the monthly payment using a financial calculator or spreadsheets, substituting the numbers into the formula with i equal to the monthly interest rate (annual rate/12) and n equal to the number of months for the loan period.
Eight equal-strength players, including Alice and Bob, are randomly split into 4 pairs, and each pair plays a game (i.e. 4 games in total), resulting in four winners. What is the probability that exactly one of Alice and Bob will be among the four winners
Answer:
probability that exactly one of Alice and Bob will be among the winners is 0.5714
Explanation:
The question is to determine the probability that oneof Alice and Bob will be among the winners
It is also important to note that Alice and Bob cannot win at the same time
Therefore,
Probability of Alice and Bob split up = 6/7
Based on this probability, we make the case as follows
First case: Alice wins and Bob loses
Probability of Alice win = 1/2
Probability of Bob lose = 1
Probability of Alice winning and Bob losing = 1/2 x 1/2 =1/4
Second Case: Bob wins and Alice loses
Probability of Bob win = 1/2
Probability of Alice lose = 1
Probability of Bob winning and Alice losing = 1/2 x 1/2 =1/4
Third Case
The Probability that Alice and Bob play each other = 1/7
Based on all the estalished Cases
The required probability that exactly one of Alice and Bob will be among the winners is
(6/7 x 1/4) + (6/7 x1/4) + 1/7
= (2 x 6/7 x 1/4) + 1/7
= 6/14 + 1/7
= 3/7 +1/7
= 4/7 = 0.5714
While there are intense debates among macroeconomists regarding the effectiveness of expansionary fiscal policy during a severe recession, both the Keynesian and non-Keynesian economists agree that fiscal policy is subject to some limitations as a stabilization tool.
Which of the following issues do most macroeconomists widely agree upon?
a. An increase in government spending will not stimulate aggregate output during a recession.
b. Government should increase its spending during a severe recession because the crowding-out will be minimal and will not negatively affect long-term growth.
c. Discretionary fiscal policy is less effective than is implied by the early Keynesian view.
Answer:C
Explanation:
Discretionary fiscal policy is less effective than is implied by the early Keynesian view
Most macroeconomists widely agree that discretionary fiscal policy is less effective than implied by the early Keynesian view. The correct answer is option c. Discretionary fiscal policy is less effective than is implied by the early Keynesian view.
Most macroeconomists widely agree on this issue because empirical evidence has shown that discretionary fiscal policy, while capable of influencing aggregate demand in theory, faces challenges in practice. Factors such as lags in implementation, uncertainty about the effectiveness of specific policies, and political constraints often limit the ability of policymakers to timely and accurately implement fiscal measures.
Additionally, changes in government spending and taxation can have unintended consequences, such as inflationary pressures or inefficient resource allocation, which may offset the intended stabilization effects.
Therefore, despite the theoretical potential of fiscal policy to stabilize the economy, its practical limitations lead most macroeconomists to agree that discretionary fiscal policy is less effective than initially suggested by the early Keynesian view.
Does the production function:q=100L−20/kexhibit increasing, decreasing, or constant returns to scale?
Answer:
the production function q exhibits decreasing returns to scale
Explanation:
to see if the function exhibits decreasing , increasing or constant returns of scale , let increase the input of the function
q=100L−20/k
then for N times units of Labor L and Capital K
qn =100(N*L)−20/(N*k) = N*[100*L - 20/(N²*K)]
since 20/(N²*K) < 20/K for N>1
qn =100(N*L)−20/(N*k) = N*[100*L - 20/(N²*K)] < N*[100*L - 20/(K)] = N*q (constant returns of scale )
thus qn < constant returns of scale
therefore q exhibits decreasing returns to scale
Haskell Motots common equity on the balance sheet totals $700million and the company has 35 million shares of common stockoutstanding. Haskell has significant growth opportunitew . It'sheadquarters has a book value of 45 MILLION, BUT ITS MARKET VALUEIS ESTIMATEDTO BE $ 10 MILLION. oVER TIME, HASKELL HAS ISSUEDOUTSTANDING DEBT THAT HAS A BOOK VALUE OF $10 MILLION AND A MARKETVALUE $5 MILLION.
WHICH OF THE FOLLOWING STATEMENTS IS MORE CORRECT?
A. HASKEL'S BOOK VALUR PER SHARE IS $20.
b. HASKELL'S MARKET VALUE PER SHARE IS PROBABLY LESS THAN$20.
c. hASKELL'S MARKET VALUE PER SHARE IS PROBABLY GREATERTHAN 20.
D. sTATEMENTS A AND B ARE CORRECT
r. sTSTEMENTS A AND C ARE CORRECT.
Answer:
Statements A and C are correct.
Explanation:
Book Value per share is the value shown in the balance sheet, which is calculated by:Formula: [tex]BV = \frac{Total common holder stocks}{number of common shares}[/tex]
After putting values in the formula we get:
[tex]BV = \frac{700m}{35m} = 20[/tex]
Market value per share is calculated on the bases of prices of share according to the market. For example, if your company has $10000 share outstanding and the price in market per share is 50 then the market value would be $500000.So, we have to calculate market value per share for that we have to reverse the actual calculation, which means we will have to divide total market value of outstanding shares by the total number of outstanding shares to get market value per share:
[tex]MV per Share = \frac{10m}{35m} = 28.5[/tex]
Hence, statement A and C both are correct.
The correct statement is B. Haskell's market value per share is probably less than $20.
Explanation:The correct statement is B. Haskell's market value per share is probably less than $20. Book value per share is calculated by dividing the total book value of the company's common equity by the number of shares outstanding. In this case, Haskell's book value per share is $20 (700 million / 35 million). However, market value takes into account factors such as growth opportunities and investor sentiment, which can often result in market values that differ from book values. Since Haskell's market value for the headquarters and debt is estimated to be less than their book values, it suggests that the market value per share is likely lower than $20.
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What would be the monthly operating advantage (disadvantage) of purchasing the goods internally, assuming the external supplier increased its price to $50 per pound and the Production Division is able to utilize the facilities for other operations, resulting in a monthly cash-operating savings of $30 per pound
Answer:
The monthly operating advantage of purchasing internally is $20
Explanation:
Judging from an opportunity perspective,the company pays $50 when he purchases externally and as a result saves $30,in essence the company incurs $20($50-$30) more when it purchases externally.
No doubt that if the situation reverses itself, the company gains $20 if produces and sells internally as against purchasing from external party.
From the foregoing,it is obvious that the monthly operating advantage of purchasing goods internally is a cash saving of $20 per item
Hence, buying internally is more desirable and preferred option
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recommendation. As a result, you decide to take a look for yourself and to place a value on the company's stock. Here's what you find: This year, Oasis paid its stockholders an annual dividend of $3.66 a share, but because of its high rate of growth in earnings, its dividends are expected to grow at the rate of 12% a year for the next 4 years and then to level out at 8 % a year. So far, you've learned that the stock has a beta of 1.64, the risk-free rate of return is 6%, and the expected return on the market is 11%. Using the CAPM to find the required rate of return, put a value on this stock.
Answer: 14.2
Explanation:
CAPM 0.142 or 0.06 x (0.11-0.05)
Answer:
The stock has an expected return of 14.2%.
Explanation:
Capital Asset Pricing Model (CAPM) is what describes the relationship between the expected return and risk of investing in a security. It shows that the expected return on a security is equal to the risk-free return plus a risk premium, which is based on the beta of that security (Corporate Finance Institute, 2015). It is calculated as follows:
Expected Return = Risk free rate + [Beta * (Market rate – risk free rate)]
Re = Rf + [Beta * (Rm - Rf)]
For Oasis, the required rate of return is
Re = 0.06 + [1.64* (0.11 – 0.06)]
= 0.142
= 14.2%
The expected rate of 14.2% is higher than the market rate of 11% and higher than the risk free rate of 6%. The recommendation to buy is supported since it brings the higher return compared to a risk-free investment and the higher than the market rate.
The stock is undervalued, therefore buy.
Green Mat, a notebook manufacturer, wants to gauge the response of customers to its new line of eco-friendly notebooks. Being situated in a school district, the marketing team at Green Mat restricts the respondents to school-going teenagers. This scenario exemplifies:
a. quota sampling.
b. snowball sampling.
c. descriptive research.
d. causal research.
e. simple random sampling.
Answer:
a. quota sampling.
Explanation:
Quota sampling -
It refers to the method of sampling , where the data or information is collected from a certain specified group of people , is referred to as quota sampling .
The method is helpful for marketing the goods and services of the company .
The likes and dislikes of the people is given the priority and the product is altered according to the taste of the consumers , in order to increase the sale of the product .
Hence , from the given scenario of the question ,
The correct answer is a. quota sampling.
How does the utility possibilities frontier relate to the contract curve? A. The points along the contract curve that are attainableattainable appear on the utility possibilities frontier showing the levels of satisfactionsatisfaction for consumers. B. The points along the contract curve that are feasible appear on the utility possibilities frontier showing the combinations of two goods that can be produced with fixed quantities of inputs. C. Every point along the contract curve appears on the utility possibilities frontier showing the extent to which it is efficient. D. Every point along the contract curve appears on the utility possibilities frontier showing the levels of utilityutility for consumers. E. Every point along the contract curve appears on the utility possibilities frontier showing the well-being of society as a whole.
Answer: D. Every point along the contract curve appears on the utility possibilities frontier showing the levels of utility for consumers.
Explanation:In Business analysis, the production possibility frontiers illustrates and shows the varying level of production that can be produced of two products if both depend on the same amount resource for their production.
Production possibility frontiers is vital as it helps an economy to know how efficient it is at producing products of which it has the best potential to produce and trades with other nations for the other needs of the nation.
Every point along the contract curve appears on the utility possibilities frontier showing the levels of utility for consumers.
Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) ____ culture.
Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) caring/civilized culture.
Explanation:
Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) caring/civilized culture.Developing a caring culture Be optimistic and upfront to your goals.Focus on strengths, not weaknessesIt’s the result of deliberate executive that promotes a civilized cultural environment.Developing a caring culture starts with a few initial steps that aims at building the priorities of members to establish a dream team.The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from $900 to $1,100. Determine the bond's price elasticity.
Answer:
the bond's price elasticity = - 0.67
Explanation:
present bond value = $1100
previous bond value = $900
change in bond value = $1100 - $900 = $200
present bond percentage = 8%
previous bond percentage = 12%
% change in bond value = 8% - 12% = - 4%
Bond price elasticity = [tex]\frac{change in bond value}{previous bond value}/\frac{change in percentage}{previous percentage}[/tex]
= [tex]\frac{200}{900} / \frac{-4}{12}[/tex]
= [tex]\frac{2}{9} * -3[/tex]
= - 0.67
A German firm is attempting to determine the euro/pound exchange rate and has the following exchange rate information: USD/pound = $1.5509/£ and the USD/euro rate = $1.2194/€. Therefore, the euro/pound rate must be:
Answer:
Exchange rate is €1.272 per £
Explanation:
Exchange rate is defined as the amount of one currency that can be changed for another currency. This is a very important consideration in international trade where strength of a countrie's currency determines how much of the other currency will be bought.
We are given that $1.5509= £1
So $1 will be (1*1)/1.5509= £0.6448
Also $1.2194= €1
So $1 is (1*1)/1.2194= €0.82
Therefore
€0.82= £0.6448
x= £1
Cross-multiply
x= 0.82/0.6448
x= €1.272 per £
Final answer:
The euro/pound exchange rate can be determined by converting the given exchange rates from USD to euro and pound. The euro/pound rate is €0.7879/£.
Explanation:
The euro/pound exchange rate can be calculated using the given exchange rate information.
To find the euro/pound rate, we need to convert both the USD/euro and USD/pound rates to euro/pound. Given USD/pound = $1.5509/£ and USD/euro = $1.2194/€, the euro/pound rate is calculated as $1.2194/€ ÷ $1.5509/£ = €0.7879/£.
Seashore Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Seashore Home has collected $1,460 from cash-paying customers. Seashore Home’s remaining customers owe the business $1,810. Seashore Home recorded $1,460 of service revenue for the year.
If Seashore Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year?
Answer:
The service revenue for the year under accrual basis is $3270.
Explanation:
The Seashore Home currently uses the cash basis system to record sales which require Seashore to record only the sales that have been paid for. The other method to record transactions is using the accrual basis. The accrual basis requires an entity to record revenues and expenses in the period in which they occured and are relevant to. Thus under accrual basis, sales made in a year, whether cash or credit, will be recorded as sales for that year.
Following accrual basis, the Service revenue for Seashore will be:
Service revenue = 1460 + 1810 = $3270
The shape of Germany's production possibilities frontier (PPF) should reflect the fact that as Germany produces more trucks and fewer smartphones, the opportunity cost of producing each additional truck_____________.
Answer:
Remain constant and is directly proportional to demand which gives a straight line graph.
Explanation:
The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
For PPF to capture choice it hows the people of germany purchase more trucks than smart phones.For that reason the truck market have a certain stability in its demand and supply.
Consider the following information about two nations: In nation A, the number of employed is 4,829,000 and the size of the labor force is 5,249,000. In nation B, the number of employed is 2,661,000 and the size of the labor force is 2,950,000. Instructions: Round your answers to one decimal place. a. What is the unemployment rate in each nation? Nation A: % Nation B: % b. Nation A has unemployed workers and unemployment rate compared to nation B
Answer:
a The unemployment rates are;
Nation A = 8.0%
Nation B = 9.8%
b. Nation A:
Unemployed persons = 420,000
Unemployment rate = 8.0%
Nation B:
Unemployed persons = 289,000
Unemployment rate = 9.8%
Hence Nation A has more unemployed persons (420,000) than Nation B (289,000), as well as lesser unemployment rate (8.0%) compared to Nation B (9.8%), because of their larger population.
Explanation:
The unemployment rate is the ratio of the number of unemployed persons in a population to the labor force, expressed in percentage.
The formula is given as:
unemployment rate = ( unemployed labor ÷ Labor force) × 100.
First, to calculate the number of unemployed labor, subtract the number of employed persons from the total workforce.
Nation A;
∴ unemployed persons = 5,249,000 - 4,829,000 = 420,000
∴ Unemployment rate = (420,000 ÷ 5,249,000) × 100 = 0.08001 × 100
= 8.0%
Nation B;
unemployed persons = 2,950,000 - 2,661,000 = 289,000
∴ Unemployment rate = (289,000 ÷ 2,950,000) × 100 = 0.0980 × 100
= 9.8%
b. The b part of this question is asking us to calculate the number of unemployed individuals in each nation and compare the number of unemployed persons and the unemployment rate in both nations.
In part a, we had already calculated the number of unemployed persons in both nations as;
Nation A = 420,000
Nation B = 289,000
while the unemployment rate for both nations are;
Nation A = 8.0%
Nation B = 9.8%
From the both figures we see that although Nation A has a higher number of unemployed persons than Nation B in its population (420,000 and 289,000 respectively), it has a lesser unemployment rate (8.0%) than Nation B (9.8). This is because the population of people making up the workforce in Nation A is larger than that of Nation B and this force the denominator in the calculation of the ratio of unemployment rate, hence when comparing the ratio of unemployed persons to the total population, the ratio turns out to be lower for Nation A than Nation B.
The unemployment rate in Nation A is 8.0% and in Nation B is 9.8%. Nation A has 420,000 unemployed workers and a lower unemployment rate compared to Nation B.
Explanation:To find the unemployment rate in each nation, you need to divide the number of unemployed workers by the size of the labor force and multiply by 100. Let's calculate:
Nation A: Unemployment rate = (5,249,000 - 4,829,000) / 5,249,000 * 100 = 8.0%
Nation B: Unemployment rate = (2,950,000 - 2,661,000) / 2,950,000 * 100 = 9.8%
Now let's compare the unemployment rate and number of unemployed workers between the two nations:
Nation A has 420,000 unemployed workers and an unemployment rate of 8.0%, while Nation B has 289,000 unemployed workers and an unemployment rate of 9.8%.