Answer:
The company should increase the number of units she is producing
Explanation:
Since the elasticity of demand for the product is greater than one (1.4), it means the demand for the new drug is elastic, meaning the demand for the new drug is sensitive to price – the higher the price, the lower the quantity demanded and the vice-versa. So the pharmaceutical company should be careful of charging higher than the other competitors.
What the company needs to do to increase its revenue is to produce large quantity of the drug in order to earn higher and gain larger market share and probably economies of scale.
For example, If the company produces 400 units of the drug at $2, the revenue will be $800.
To increase the revenue, the company needs to increase its production.
For example, the increases the production to 500 units at the prevailing price of $2, therefore, the revenue will be $1000
Comly Communications issues a $600,000, 10%, 20-year mortgage note on January 1. The terms provide for annual installment payments of $69,932, exclusive of real estate taxes and insurance. After the first installment payment, the principal balance is:________
a. 530,068.
b. $600,000.
c. $590,068.
d. $565,034
Answer:
The correct answer is C
Explanation:
The amount would be:
Amount = Issued Amount × Interest rate
= $600,000 × 10%
= $60,000
So, the interest would be $60,000, this amount to be paid on year end.
But the installment payment is of $69,932
Balance amount = $69,932 - $60,000
= $9,932
The first installment is of amount $60,000. So, the principal balance would be:
Principal balance = Amount - Balance amount
= $600,000 - $9,932
= $590,068
Arthur crafts miniature chocolate dollhouses which he sells for $23 each. Arthur has calculated the breakeven level of revenues for his business at $1,460 of sales. The dollhouses have a variable cost of $8 to produce per unit.What are Arthur's fixed costs?
Answer:
Arthur's fixed costs are $952
Explanation:
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed costs/(Selling price per unit-Variable cost per unit)
Fixed costs = Break-even point in units x (Selling price per unit-Variable cost per unit)
In Arthur, Break-even point in units = $1,460/$23
Fixed costs = $1,460/$23 x ($23 - $8) = $952
The fixed cost for Arthur's crafts miniature chocolate dollhouses is $952.
What is the break-even point?The break-even point is regarded as the level at which production costs tend to be equal to the revenues for the product.
What is the computation of the break-even point?[tex]BE=\frac{FC}{SP-VC}[/tex]
Now, the fixed cost would be calculated as:
[tex]BE*(SP-VC)[/tex]
Therefore, the fixed cost would be:
[tex]\frac{1460}{23} * (23-8)\\=952[/tex]
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When a transaction requires only a _____, there is not any actual proof that a particular person conducted that transaction. Group of answer choices
А. written signature
B. digital signature
C. password
D. driver's license
E. fingerprint scan
Answer:
C. password
Explanation:
A transaction is a business activity that involves buyers and sellers. the se two parties agree to exchange goods and services for money. Everyone needs to be on the same page when this happens ; meaning, the sellers should be willing to give out their goods and services and the buyers should be willing to to pay for the what they are interested in. A complete transaction also requires a receipt which is a proof of the exchange . Therefore, having a password is not the only requirement for a transaction.
You are planning your retirement and you come to the conclusion that you need to have saved $1000000million in 30 years. You can invest into an retirement account that guarantees you a 12% annual return. How much do you have to put into your account at the end of each year to reach your retirement goal?
Answer:
Annual deposit= $4,143.66
Explanation:
Giving the following information:
You need to have saved $1,000,000 in 30 years. You can invest in a retirement account that guarantees you a 12% annual return.
To calculate the annual deposit needed to achieve the objective, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,000,000*0.12)/ [(1.12^30)-1]= $4,143.66
Howard is saving for a holiday. He deposits a fixed amount every month in a bank account with an EAR of 14.7%. If this account pays interest every month then how much should he save from each monthly paycheck in order to have $14,000 in the account in four years' time?
A) $176
B) $308
C) $220
D) $352
Answer:
C) $220
Explanation:
First calculate the APR using an EAR of 14.7% and monthly compounding,
which comes to 13.7937 %. Then using a periodic rate of 13.7937 /12, calculate
the payment over 48 months that gives a future value (FV) of $14,000 , which is
$110.15.
A bond that pays interest forever and has no maturity date is a perpetual bbond, also called a perpetuity or a consol. In what respect is a perpetual bond similar to 1) a no-growth common stock and 2) a share of preferred stock?
Answer: A perpetual bond is similar to a no growth stock and a share of preferred stock as they all derive their values from a series of cash inflows.
Explanation: A perpetual bond is a bond with no maturity date. Issuers pay COUPONS on them forever. This represents the cash inflows.
In the same vein, both a no-growth stock and share of preferred stock derive their values from a series of cash inflows called DIVIDENDS.
A perpetual bond is similar to no-growth common stock and preferred stock because they provide consistent returns without growth prospects; their valuation also reflects a constant yield. For both types of stocks and perpetual bonds, present value calculations consider these consistent payment streams.
Explanation:A perpetual bond, also known as a perpetuity or consol, is a bond that pays interest forever without a maturity date. This financial instrument is similar to 1) a no-growth common stock because neither the perpetual bond nor the no-growth stock will increase in value from growth; they both provide a consistent stream of income indefinitely. 2) A share of preferred stock often has a fixed dividend, which is similar to the fixed interest payment of a perpetual bond, also known as coupon payments.
Moreover, the valuation of a perpetual bond can be described using the formula V = 1/r, assuming the rate of return (r) is constant. This formula highlights the similarity between perpetual bonds and certain stocks with constant payments. In the case of no-growth common stocks, the expectancy of dividends to remain the same reinforces their resemblance to a consol's fixed interest payments. Preferred stock comparisons arise from the nature of preferred dividends, which, like consol payments, are typically fixed and paid out prior to any common stock dividends.
A marketing manager targeting Generation Y should be aware that this group is turned off by:A) the "soft sell".B) overt branding practices.C) cool events.D) online buzz.E) unconventional sports.
Answer:
B) overt branding practices
Explanation:
Generation Y is the group of people who were born between 1990s to early 2000s. Probably most commonly known as millennials.
Statistics shown that when it come to choosing a product, millennial tend to choose the individuals that they can trust/admire rather than overt branding practices. This is why online influencers market is really booming among this demographic.
On top of that ., They value the type of advertisement that can objectively define the negative and positive characteristics of a certain product rather than advertising it as if it's 'the best product ever' like commonly done by most companies in the past.
The gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced within the United States in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2018.
a. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 9, 2018. An elementary school student buys the chocolate bar on December 24. -------- 2018 GDP (Included/Excluded)
b. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 27, 2018. Athleticus imports the pair of sneakers into the United States on May 18, 2018. -------- 2018 GDP (Included/Excluded)
c. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 25, 2018. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2018. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) -------- 2018 GDP (Included/Excluded)
d. Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 14, 2018. It sells the hamburger to a customer that same day.
-------- 2018 GDP (Included/Excluded)
e. An accountant starts a client's 2018 tax return on April 14, 2019, finishing it just before midnight on April 15, 2019. -------- 2018 GDP (Included/Excluded)
Answer:
a= Included
b= Excluded
c= Included
d= Included
e= Excluded
Explanation:
a= The product (Chocolate was produced and sold in same year i-e, 2018)
b= Goods produced by companies having manufacturing plants in foreign countries doesn't count in the company's home country's GDP. Refer to the definition which says clearly that production of final goods within a country.
c= Yes, as they are produced and if the house was also sold in the same year than only the house would have been counted in the GDP. Because we can't count same thing twice.
d= As the final product was produced and sold in same year, it would be counted.
e= No GDP as definition implies includes only final goods, tax returns doesn't count in GDP.
Manuel has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poornima, whom Manuel has wanted to date for a long time, asks him to a concert. Manuel would prefer to go to the concert with Poornima and forgo the movie, but he doesn't want to waste the $10 he spent on the movie ticket.
From the perspective of an economist, if Manuel decides to go to the movie, what has he just done?
1. Incorrectly allowed a sunk cost to influence his decision
2. Made an optimal choice
3. Correctly ignored a sunk cost
Answer:
3. Correctly ignored a sunk cost
Explanation:
Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.
Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.
In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund. Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.
Final answer:
From an economist's view, Manuel should focus on the marginal costs and benefits of current and future options, rather than the sunk cost of the movie ticket.
Explanation:
From the perspective of an economist, if Manuel chooses to attend the movie instead of going to the concert with Poornima, he is allowing a sunk cost to improperly influence his decision. The $10 he spent on the movie ticket is a sunk cost, which means it has already been incurred and cannot be recovered. His decision should be based on the comparative benefits of the current options he has: either the experience of watching the movie or the enjoyment and potential relationship benefits of going to the concert. Since he prefers to go on the date with Poornima, going to the movie would not be an optimal choice. The economist's advice would be to ignore the sunk cost of the movie ticket and attend the concert, as that would provide greater utility to Manuel.
John is ready to pay $5 for an extra loaf of bread. Due to an ongoing discount in the store, he gets a loaf for $2. John's consumer surplus from the purchase is ________.
a.$2.50
b.$10
c.$3
d.$2
Answer:
3$
Explanation:
yes
Consumer Surplus is the economic benefit a buyer gets when they pay less for a product than what they were willing to. In this instance, the consumer surplus is $3 as John was willing to pay $5 for the loaf but only paid $2.
Explanation:In economics, the term Consumer Surplus is used to define the economic benefit obtained by consumers when they are able to purchase a product for a lower price than they are willing to pay. In John's case, he was willing to pay $5 for a loaf of bread, but he only paid $2 because of the ongoing discount. Hence, the calculation of Consumer Surplus would be his willingness to pay ($5) minus the actual price paid ($2), which equals to $3. So, John's consumer surplus from this purchase is $3.
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If a taxpayer is filing H/H and qualifies for the Retirement Savings Contribution Credit, what percent of the contribution would qualify if the AGI is $29,000?
Answer:
10%
Explanation:
Adjusted gross income (AGI) is the amount arrived at after some specific allowable deductions have been deducted from the total gross income.
The Retirement Savings Contributions Credit now called the Savers Credit provides a special tax break to those who are saving for retirement and in the low-income and moderate-income taxpayers category.
The amount to deduct depends on the AGI and how regularly the individual files tax returns. The rate of tax credit which is not refundable is 10%, 20% or 50% of the first $2,000 the parson contributed to a retirement account during the year.
The table for 2019 AGI shows that a single filler with the income range of $20,751-$32,000 can have a 10% savers credit.
Since the tax payer is a single filler, he is therefore qualified for 10% of his AGI of $29,000 which $2,900.
Requirement 1. Match each function with its representative cost driver. Function Representative Cost Driver 1. Accounts payable ▼ 2. Recruiting 3. Network maintenance 4. Production 5. Purchasing 6. Warehousing 7. Billing
Answer:
production
Explanation:
the production is the highest of all the more afterall
A landlord is renting out an apartment and has three prospective tenants. The first tenant is willing to pay $1200/month, the second tenant is willing to pay $3000/month, and the third tenant is willing to pay $2000/month. Each potential tenant knows the valuations of the other tenants. Of the following methods of renting the apartment, which would generate the greatest revenue?
a. A sealed first-price auction
b. A sealed second-price (Vickrey) auction
c. A fixed price of $1900/month
d. A fixed price of $2200/month
Answer:
d. A fixed price of $2200/month.
Explanation:
A landlord is an owner of the house or property which is rented to a person called Tenant on lease or rent. The landlord in the question is renting an apartment. He has 3 Potential Tenants who are willing to rent his property. The greatest revenue will be generated if the apartment is rent out to the second tenant who is willing to pay $3000 per month. The revenue of the landlord will maximize if he uses option D to rent out his apartment. A fixed price of $2200 will generate greatest revenue.
The method that would generate the greatest revenue for the landlord is a sealed first-price auction, which could yield a revenue slightly below $3000/month.
The question asks which method of renting an apartment would generate the greatest revenue for a landlord with three prospective tenants with different valuations. The options are: a sealed first-price auction, a sealed second-price (Vickrey) auction, a fixed price of $1900/month, and a fixed price of $2200/month.
In a sealed first-price auction, each tenant would bid according to their valuation, and the highest bidder would win at the price they bid. Here, the second tenant would likely win by bidding slightly above $2000 (the next highest valuation), generating a revenue close to $3000/month for the landlord.
In a sealed second-price (Vickrey) auction, the highest bidder wins but pays the second-highest bid. Since the tenants know each other's valuations, the second tenant might bid their true valuation, $3000, and win at the third tenant's bid of $2000/month.
A fixed price of $1900/month would result in the second tenant renting the apartment, generating less revenue than the potential $2000 in the Vickrey auction. A fixed price of $2200/month would be above two tenant's valuations, and likely result in no transaction as none would be willing to rent at that price.
The fact that there is a criminal investigation pending against Johnson and Johnson suggests that regulators feel that the company is not meeting its obligations at _________ level of corporate responsibility.
A) a discretionary
B) a legal
C) an economic
Answer: B. A legal
Explanation: at a legal level of corporate responsibility, businesses are obligated to obey the law. It is the most important level of corporate social responsibility as described by Archie Carroll in the “Pyramid of Corporate Social Responsibility” in 1991. It indicates how companies are meant conduct their business in the marketplace in areas bordering competition, employment, health and safety, tax regulation etc.
A semi-annual coupon U.S. Treasury bond was purchased for settlement on November 12, 2017. The last coupon was paid on September 15, 2017. Using the ACT/ACT day count convention, answer the following questions: a. on what date will the next coupon be paid? b. how many days passed between the last coupon paid and the settlement date? c. how many days are there in the current coupon period?
Answer:
a) 15 March 2018
b) 58 days passed between the last coupon paid and the settlement date
c) There are 123 days in the current coupon period.
Explanation:
a) So, next coupon will be paid on 15 March 2018.
(b) Coupon was paid on 15th September 2017 and settleent date is November 12, 2017, hence using the ACT/ACT day count convention, the number of days passed between the last coupon paid and the settlement date is (15 days of September + 31 Days of October + 12 days of November) = 58 days.
(c) The next coupon date is 15th March 2018. Hence, the number of days in current coupon period is (18 days of November + 31 days of December + 31 days of January + 28 days of February + 15 days of March ) = 123 days
The answers to the questions are as follows:
a. The next coupon will be paid on March 15, 2018.
b. There were 58 days between the last coupon paid (September 15, 2017) and the settlement date (November 12, 2017).
c. There are 184 days in the current coupon period.
a. U.S. Treasury bonds pay coupons semi-annually, which means every six months. Since the last coupon was paid on September 15, 2017, adding six months to this date brings us to the next coupon payment date. September has 30 days, so adding six months to September 15 would be 30 days for September, plus 31 days each for October, November, December, January, and February, plus 15 days for March, totaling 184 days. However, since February has only 28 days in a non-leap year, we subtract one day, resulting in 183 days. Therefore, the next coupon payment date is March 15, 2018.
b. To calculate the number of days between the last coupon payment and the settlement date, we use the ACT/ACT day count convention, which counts the actual number of days in each month. Starting from September 15, 2017, to November 12, 2017, we have:
- The rest of September: 15 days (since September has 30 days)
- October: 31 days
- November: 12 days (up to the 12th)
Adding these up gives us a total of 15 + 31 + 12 = 58 days.
c. The current coupon period started right after the last coupon payment on September 15, 2017, and will end on the next coupon payment date, which we determined to be March 15, 2018. Using the ACT/ACT day count convention, we count the actual number of days in each month:
- September: 15 days (from the 15th to the end of the month)
- October: 31 days
- November: 30 days
- December: 31 days
- January: 31 days
- February: 28 days (in a non-leap year)
- March: 15 days (up to the 15th)
Adding these up gives us a total of 15 + 31 + 30 + 31 + 31 + 28 + 15 = 181 days. However, since we are including both the start and end dates in our count, we add one more day, resulting in 182 days. But since we subtracted one day in the calculation of the next coupon payment date due to February not being a leap year, the total number of days in the current coupon period is 184 days."
One characteristic of Internet recruiting is:_________ Select one: a. Screens out job "browsers" b. Produces a wider applicant pool c. More expensive than newspaper advertising d. Delays applicant responses
Answer:
The correct answer is letter "B": Produces a wider applicant pool.
Explanation:
Nowadays most job positions are offered online. It is easier for companies to publish their openings on a web page and wait for applicants to massively submit their resumes. This process serves as a screening of the recruiting process since the most prospective individuals can be selected and all those whose profile does not match with what the company is looking for can be discarded.
Final answer:
Internet recruiting is characterized by its ability to produce a wider applicant pool, making job postings accessible to a global audience and increasing candidate diversity.
Explanation:
One characteristic of Internet recruiting is that it produces a wider applicant pool. Unlike traditional methods such as newspaper advertising, the internet makes it possible for job postings to reach a global audience, thereby increasing the number and diversity of applicants. Additionally, platforms like LinkedIn facilitate networking and make it easier for job seekers to find and apply for jobs, thus broadening the pool of candidates from which employers can select. Online recruiting provides access to extensive job market information, allows for faster communication, and makes it easier for employers to find suitable candidates, potentially reducing the time and costs associated with the hiring process.
The existence of ending Work In Process Inventory necessitates the use of the 5minusstep process costing procedure. true or false
Answer:
The statement is: True.
Explanation:
The Work In Progress (WIP) Inventory represents the sources needed during the production of a good. While calculating costs for those sources it is necessary to follow the 5-steps of process costing which are the following:
1) Determine the flow of units generated.
2) Adjust the inventory to calculate the equivalent units.
3) Identify the total cost.
4) Calculate the average cost per equivalent unit.
5) Record these costs to finished units and Work in Process units.
Governments often use a sales tax to raise tax rev- enue, which is the tax per unit times the quantity sold. All else the same, will a specific tax raise more tax revenue if the demand curve is inelastic or elas- tic at the original price?
Answer:
Yas tax revenue depend on elasticity of demand curve.
Explanation:
first of all we need to understand that inelastic demand curve means in which increase or decreases of price don't change consumption pattern of consumer, however elastic demand meant in which increases or decreases price effect consumption behavior, this depend whether commodity or good is necessity or luxurious good. so if demand is inelastic government can impose and earn more revenue from that good on other hand to impose tax on elastic commodities government cannot earn profit and there is less margin.
You bought 1,000 shares of Tund Corp. stock for $68.12 per share and sold it for $90.03 per share after a few years. How will your gain or loss be treated when you file your taxes?
As a capital gain taxed at the long-term tax rate
As a capital gain taxed at the current ordinary-income tax rate
Answer:
The gain will be treated as a capital gain taxed at the long-term tax rate.
Explanation:
Capital gain tax is paid on profit derived from selling an investment asset, like stock or bond. Under the tax law, capital gain can be taxed either at a long-term tax rate or current ordinary-income tax rate.
For a capital gain to be taxed at the long-term tax rate, the investment must have been held for more than one year and above. The tax rate under the long term range from 0% to 20%.
For the a capital gain to be taxed at the current ordinary-income tax rate, the investment must be held less than one year. When this occur,the capital gain is taxed at the ordinary income tax rate because the gain is assumed to be part of the taxable income for the year.
In the case of Tund Corp, the capital gain will be taxed at long term tax rate of 0% to 20% because the investment is held more than a year.
A company issues $500,000 of 6%, 10-year bonds dated January 1, 2017 that mature on December 31, 2026. The bonds pay interest semiannually on June 30 and December 31 each year. If bonds are sold at par value, the issuer records:________
Answer:
cash 500,000 debit
bonds payable 500,000 credit
Explanation:
as the bond are sold at par the present value of the coupon payment and maturity discounted will give the same value as the face value of the bond:
Proof:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 15,000.000
time 20
rate 0.03
[tex]15000 \times \frac{1-(1+0.03)^{-20} }{0.03} = PV\\[/tex]
PV $223,162.1229
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 500,000.00
time 20.00
rate 0.03
[tex]\frac{500000}{(1 + 0.03)^{20} } = PV[/tex]
PV 276,837.88
PV c $223,162.1229
PV m $276,837.8771
Total $500,000.0000
Which statement concerning cash is true? a.Cash is increased by debiting. b.Cash will always have more debits than credits. c.Cash will never have a credit balance. d.All of these choices are correct.
Answer:
The answer is A. Cash is increased by debiting
Explanation:
Like all assets, to debit means to increase while to credit means to decrease.
There is no rule that states cash must always have more credits than debit or more debits than credits. Cash account can have more credits than debited and the balance will still be positive and vice-versa.
Cash account can have a credit balance. If this happens that means the business is owing or in debt.
The correct statement concerning cash is that it is increased by debiting. The balance of the cash account, whether it is a debit or credit balance, depends on the specifics of the transactions.
Explanation:Out of the options provided concerning cash, the accurate statement is: Cash is increased by debiting.
In the double-entry bookkeeping system, a debit entry increases an asset account, and cash is considered an asset. Thus, to increase your cash account, you would debit it.
However, the statements 'Cash will always have more debits than credits' and 'Cash will never have a credit balance' are not universally true. The balance of the cash account depends on the transactions. If there are more debits (increases) to the account than credits (decreases), then it will have a debit balance. If there are more credits than debits, it could potentially have a credit balance.
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An international student goes to work for a Brazilian MNE in Brazil where he has been studying. He is a Answers: A. parent-country national (PCN) B. host-country national (HCN) C. third-country national (TCN) D. not enough information
Answer:
c. third-country national (TCN)
Explanation:
Third-country national (TCN) -
It refers to the migration process , where the person migrates to any foreign country , and tries to apply for visa of the particular company , somewhere he or she has not originated , is referred to as the third - country national (TCN) .
Hence , from the scenario of the question,
An international students goes to study and work in Brazil , which is not his native country , is referred to as the third - country national ( TCN ) .
The cash price of this machine was $54,500. Related expenditures included: sales tax $2,050, shipping costs $100, insurance during shipping $110, installation and testing costs $80, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Whispering Winds estimates that the useful life of the machine is 5 years with a $4,100 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.
Answer:
Under striaght line the depreciation wil be of 10,548 dollar per year.
Explanation:
the accouting will enter the asset as the sum of all necessary cost to aquire it and leave it ready for use:
price 54,500
taxes 2,050
shipping 100
insurance 110
installation 80
total 56,840
depreciation per year:
(cost - salvage value ) / useful life
(56,840 - 4,100) / 5 = 10.548
Knowledge Check 01 Future Corporation has a single product; the product selling price is $100 and variable costs are $60. The company's fixed expenses are $10,000. What is the company's break-even point in sales dollars? A. $25,000 B. $2,500 C. $250 D. $16,667
Answer:
The company's break-even point in sales dollars is A. $25,000
Explanation:
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = $10,000/($100-$60) = $10,000/$40 = 250 units
Break-even point in sales dollars = Break-even point in units x Selling price per unit = 250 x $100 = $25,000
Answer:
A. $25,000
Explanation:
Break even point is the level of production at which the costs incurred in production equal the revenues for a product and calculated by using following formula;
Break-Even Point (sales dollars) = Fixed Costs ÷ Contribution Margin ratio
where,
Contribution Margin ratio = (selling Price – Variable Costs)/selling price
Given;
Selling price per unit = $100
variable cost per unit = $60
Fixed cost = $10,000
Contribution margin ratio = ($100 - $60)/$100
= 0.4
Break-Even Point (sales dollars) = $10,000/0.4
= $25,000
Misk Co. purchased the following securities during 2018 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the purposes of reselling in the near future. II. U.S. Treasury bonds that Misk intends and is able to hold to maturity. III. An investment in stock that Misk does not intend to sell in the near future. Which of above securities purchased by Misk should be classified as available-for-sale securities?a. I and II onlyb. I and III onlyc. III onlyd. None of the above
Answer:
C. III only
Explanation:
Option III states An investment in stock that Misk does not intend to sell in the near future. Which of above securities purchased by Misk should be classified as available-for-sale securities?
The choice of this option alone is based on the reasoning that Available for Sale (AFS) Securities are usually presented based on their fair values. As such an increase in investment will be needed when the Fair value exceeds is more than the cost of the securities.
The other effect of the transaction of Misk Co is that it will lead to an increase in other comprehensive income.
Securities purchased by Misk Co. are classified based on their intent and ability to sell. Debt securities held for quick turnover are trading securities, Treasury bonds held until maturity are held-to-maturity securities, while a stock investment planned for long-term holding but not until maturity is classified as available-for-sale securities. Hence, 'III. An investment in a stock that Misk does not intend to sell in the near future is classified as available-for-sale securities.
Explanation:The securities purchased by Misk Co. can be classified into held-to-maturity securities, trading securities, and available-for-sale securities based on their intent and ability to sell.
I. Debt securities bought and held for the purposes of reselling in the near future. These are classified as trading securities because they are bought with the intention of reselling them in the near future to earn profit from price changes.
II. U.S. Treasury bonds that Misk intends and is able to hold to maturity. These are deemed as held-to-maturity securities because the investor intends to and is capable of holding these until their maturity date.
III. An investment in a stock that Misk does not intend to sell in the near future. These are termed available-for-sale securities because they are neither intended to be sold in the near term (like trading securities) nor held until maturity (as with held-to-maturity securities). They can be sold if necessary, but that is not the primary intention.
Therefore, based on the above classification, the answer to the question, 'Which of the above securities purchased by Misk should be classified as available-for-sale securities?' is (c.) III only.
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Common-size statements: Multiple Choice
Reveal changes in the relative importance of each financial statement item to a base amount.
Do not emphasize the relative importance of each item.
Compare financial statements over time.
Show the dollar amount of change for financial statement items.
Reveal patterns in data across successive periods.
Answer:
Reveal changes in the relative importance of each financial statement item to a base amount.
Explanation:
In the common-size statements, the items would be displayed in the percentage form that is based on the base value rather than the absolute values.
The preparation of this statement is to do the proper analyses of each item with period to period of the similar company so that proper decisions should be taken. In addition, it would also create its importance with respect to the item mentioned in the financial statement
Identify each of the following as Asset, Liability, or Equity.
a. Accounts Payable Liability
b. Cash Asset
c. Common Stock Equity
d. Accounts Receivable Asset
e. Rent Expense Liability
f. Service Revenue Equity
g. Office Supplies Asset
h. Dividends Equity
i. Land Equity
j. Salaries Expense Liability
Answer:
a. Accounts Payable Liability
b. Cash Asset
c. Common Stock Equity
d. Accounts Receivable Asset
e. Rent Expense Equity
f. Service Revenue Equity
g. Office Supplies Asset
h. Dividends Equity
i. Land Assets
j. Salaries Expense Equity
Explanation:
Assets:
The assets will be the property, plant and equipemnt owned by the company or the right or claim it has on third party to provide cash in favor of the company (accounts receivables) or services ( prepaid insurance)
Liabilities:
Will be debt or obligation to do taken from the company in exchange of soemthing
Equity:
The equity will represent the investment of the owner plus the accumualted earning thus, the revenus and income have impact on equity.
Assets like Cash and Accounts Receivable, liabilities such as Accounts Payable, and equity items including Common Stock and Dividends are identified to understand a business's financial position. Proper classification helps distinguish between resources, obligations, and owner claims. Rent and salaries expenses are not directly liabilities but affect equity.
Identifying whether an item is an Asset, Liability, or Equity is crucial for understanding the financial position of a business. Here's the classification:
Accounts Payable - LiabilityCash - AssetCommon Stock - EquityAccounts Receivable - AssetRent Expense - Expense (generally not counted as a Liability directly but impacts Equity)Service Revenue - EquityOffice Supplies - AssetDividends - EquityLand - AssetSalaries Expense - Expense (generally not counted as a Liability directly but impacts Equity)Key Definitions:
Assets are resources owned by the business that provide future economic benefits, such as Cash, Accounts Receivable, and Land.Liabilities are obligations that the business needs to settle in the future, such as Accounts Payable.Equity represents the owner's claims on the assets after all liabilities have been deducted, such as Common Stock and Dividends.Robert and Maxine Thomason are planning to purchase a new refrigerator-freezer for their new home. They have compared the quality, style, and price of four models. For the Thomasons, a refrigerator-freezer is a(n) _____ product.
A. specialty
B. generic
C. industrial
D. convenience
E. shopping
Robert and Maxine Thomason are planning to purchase a new refrigerator-freezer for their new home. They have compared the quality, style, and price of four models. For the Thomasons, a refrigerator-freezer is a(n) Shopping product (E)
Explanation:
A shopping product is a product which involves a lot of research and comparison with the similar products of other brand.
A shopping product can be categorized into
Homogeneous ProductHeterogeneous ProductHomogeneous Product are the products that share similar features,nature and the final purchase decision is based on the lowest price available in the market for that particular product
Final answer:
The refrigerator-freezer that the Thomasons are planning to purchase is regarded as a shopping product, which consumers compare thoroughly before buying.
Explanation:
For Robert and Maxine Thomason, the refrigerator-freezer they are planning to purchase for their new home is considered a shopping product. Shopping products are those for which consumers spend considerable time comparing different options, such as quality, style, and price, before making a purchase. Unlike convenience products, which are bought frequently and with minimal effort, or specialty products that have unique brand identification for which a significant group of buyers is willing to make a special purchase effort, shopping products lie somewhere in between in terms of buyer effort and product distinctiveness.
20. Which of the following best describes the utility of the "roof" in the quality function deployment (QFD) matrix? A. The roof relates the customer attributes (CA) to the engineering characteristics (EC). B. The roof compares engineering characteristics (EC), which enables the study of any trade-offs among the EC. C. The roof provides the relative importance of the customer attributes (CA). D. The roof provides a competitive evaluation of the engineering characteristics (EC).
Answer:
The answer is B. The roof compares engineering characteristics (EC), which enables the study of any trade-offs among the EC.
Explanation:
Calculate (a) MAD and (b) MSE for the following forecast versus actual sales figures: a. Forecast 100 110 120 130 b. Actual 95 108 123 130 a) MADequals nothing (round your response to one decimal place).
Answer:
MAD = 2.5
MSE = 9.5
Explanation:
MAD and MSE are 2 of the 3 the approaches to calculate forecasting errors.
MAD formula and solution is provided in the picture attached, with table 1 mentioned on it.Step by Step Calculation of MAD:
Calculate the Forecast Error by subtracting Forecast from Actual Sales.Sum all the forecast errors.Divide the sum with the number (n) of periods. MSE formula and solution is provided in the picture attached, with table 2 mentioned on it.Step by Step calculation of MSE:
Calculate the Forecast Error by subtracting Forecast from Actual Sales.Square all forecast errors and sum those squared values.Divide the sum with the number (n) of periods.