Answer:
d) relative to others instead of against performance standards.
Explanation:
Contrast error is one that occurs during performance rating where a person is not rated objectively, but against previous people who performed good or badly.
The person's ratings is affected negatively or positively.
A person that performs well subconsciously sets a benchmark in the mind of the rater, and he now rates future participants based on this benchmark and not on performance standards that have been set.
You have decided to enter the candy business. You are considering producing two types of candies: Slugger candy and Easy Out candy, both of which consist solely of sugar, nuts, and chocolate. At present you have in stock 10,000 ounces of sugar, 3,000 ounces of nuts, and 3,000 ounces of chocolate. The mixture used to make Easy Out candy must contain at least 20% nuts. The mixture used to make Slugger candy must contain at least 10% nuts and 10% chocolate. Each ounce of East Out can be sold for $0.60 and each ounce of Slugger for $0.40.
What is the maximum revenue you can earn?
To maximize revenue, make 15,000 ounces of Easy Out candies and 30,000 ounces of Slugger candies, for a total revenue of $21,000.
Explanation:To maximize revenue, you need to find the combination of Slugger and Easy Out candies that uses all the available ingredients and yields the highest total revenue. Let's calculate the maximum revenue step by step:
First, calculate the maximum quantity of Easy Out candies that can be made using the available nuts: 3,000 ounces x 100% / 20% = 15,000 ounces. This is the maximum quantity of Easy Out candies you can make.Next, calculate the maximum quantity of Slugger candies that can be made using the available nuts and chocolate: 3,000 ounces (nuts) x 100% / 10% = 30,000 ounces, and 3,000 ounces (chocolate) x 100% / 10% = 30,000 ounces. Since nuts and chocolate are limited by the same quantity, the maximum quantity of Slugger candies is limited by the 30,000 ounces of chocolate.Calculate the revenue for each type of candy and sum them up: Revenue from Easy Out candies = 15,000 ounces x $0.60/ounce = $9,000, and revenue from Slugger candies = 30,000 ounces x $0.40/ounce = $12,000. So the maximum revenue you can earn is $9,000 + $12,000 = $21,000.Learn more about maximizing revenue here:https://brainly.com/question/33891229
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Identify which informal research technique would be most appropriate for each situation You receive a voice mail from your supervisor asking you to compile a list of talking points for an upcoming interview on the Morning News Show. The best informal information gathering technique to find out the details of what your boss expects would be to:
a. Look in the files
b. Conduct an informal survey
c. Talk with your boss
Answer:
a) Look in the files
Explanation:
You have to look in the files, ascertain the current situation of the organization, gather information on the organization's previous and current performances and deduce how best to answer likely questions that would pop up in the upcoming interview on the morning News show. This informal research technique would enable your boss to be adequately prepared for the interview.
zappos seems to be well-positioned to have a competitive advantage over other online retailers. what challenges discussed in chapter 1 pose the biggest threat to zappos ability to maintain and enhance its competitive position? how can hrm practice help zappos meet these challenges
Answer:
Despite the accomplishments of Zappos, there are few challenges facing the company. One of the challenges is the economic and financial recession facing the world. This will lead to downsizing the company's employees and it will affect the competitive position of the company. The second challenge facing the company is that of acquisition. It is essential for the company to psychologically prepare the employees during the recession by organizing meetings and seminars to discuss the challenges and proffer solutions.
Explanation:
Despite the accomplishments of Zappos, there are few challenges facing the company. One of the challenges is the economic and financial recession facing the world. This will lead to downsizing the company's employees and it will affect the competitive position of the company. The second challenge facing the company is that of acquisition. It is essential for the company to psychologically prepare the employees during the recession by organizing meetings and seminars to discuss the challenges and proffer solutions.
2. Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the using by the using and multiplying by 100. However, the CPI reflects only the prices of all goods and services . Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario Shows up in the... GDP Deflator CPI An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers A decrease in the price of a German-made television that is popular among U.S. consumers
Answer:
The GDP deflator for this year is calculated by dividing the value of goods and services produced in the economy this year using this year's price by the value of goods and services produced in the economy this year using base year's price and multiplying by 100. However, the CPI reflects only the prices of all goods and services bought by consumers.
An increase in the price of equipment feller bencher, which is a commercial forestry machine that cuts and stacks trees, will affect GDP deflator.
A decrease in the price of the Chinese-made television that is popular among U.S. consumers will affect the CPI, that is, consumer price index.
You need a 35-year, fixed-rate mortgage to buy a new home for $310,000. Your mortgage bank will lend you the money at an APR of 6.05 percent for this 420-month loan. However, you can afford monthly payments of only $1,500, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $1,500?
Solution and explanation
Present value of the $1,500 monthly payments is
PMT $1,500
Annual Rate 6.05%
Number of period (NPER) 420
Present value Annuity (PVA) (calculated in excel using PV function) $261,528.41
[tex]\mathrm{PVA}=\$ 1,500\left[\left(1-\left\{1 /[1+(.0605 / 12)]^{\wedge} 420\right\}\right) /(.0605 / 12)\right][/tex] $261,528.41
Cost of Home $310,000
Amount of principal still owe = $310,000 - $261,528.41 $48,471.59
Balloon payment in 35 years, which is the FV of the remaining principal =
Present Value $48,471.59
Annual Rate 6.05%
Number of period (NPER) 420
Future Value (calculated in excel using FV function) $400,677.90
Balloon payment = [tex]\mathbf{S} 48,471.59[1+(.0605 / 12)] 420[/tex] $400,677.90
4. The effects of inflation Suppose Specific Automakers is considering signing a long-term contract with the union representing its workers. Specific Automakers and the union both agree that real wages should increase by 3%. Inflation is expected to be 6%, so they agree on a 9% nominal wage increase. Now, suppose inflation turns out to be higher than expected, coming in at 7%. This would the union and Specific Automakers because the real wage increase would now be .
Answer: This would WORSEN the union and BENEFITS Specific Automakers because the real wage increase would now be 2%
Explanation:
Specific Automakers is considering signing a long-term contract with the union representing its workers.
Real wages should increase by 3%
Expected inflation is 6%
Nominal wage increase is 9%
Actual inflation = 7%
Since actual inflation is greater than expected inflation, this would WORSEN the union and it is only of benefits to the automakers because this now makes real wage increase to be as calculated below leading to a redistributive cost of inflation.
= Nominal wage - Actual inflation rate
= 9% - 7%
= 2%
Suppose that a 5-year Treasury bond pays an annual rate of return of 1.3%, and a 5-year bond of the fictional company Risky Investment Inc. pays an annual rate of return of 7.1%. The risk premium on the Risky Investment bond is __________ percentage points.
Consider a decrease in the annual rate of return on the Risky Investment bond from 7.1 percent to 5.5 percent. Such a change would _________ the interest rate spread on the Risky Investment bond over Treasuries to ___________ .
Which of the following explains the decrease in the annual rate of return on the Risky Investment bond?
1. The expected default rate on the Risky Investment bond has decreased.
2. The expected default rate on the Treasury bond has increased.
3. The expected default rate on the Treasury bond has decreased.
4. The expected default rate on the Risky Investment bond has increased.
Answer:
a. The risk premium on Risky Investment bond = 5.8
b. Such a change would decrease/reduce 4.2%
c. The expected default rate on the Risky Investment bond has decreased (1).
Explanation:
a. The risk premium on a risky investment is equal to the total return on a risky investment less the return on the risk free asset. The risky asset here gives an annual return of 7.1% while the risk free rate is 1.3%. So, the risk premium on the risky asset for additional risk is,
7.1 - 1.3 = 5.8%b. A reduction in the annual return on the risky asset will decrease/reduce the interest rate spread which is equal to the difference between the return of the risky and risk free asset. The new spread will be equal to,
5.5 - 1.3 = 4.2%c. The risk free rate is expected to be the same as no information is provided. Besides, a fall in annual rate of risky investment means that there is a reduction in the riskiness of such an investment and that would mean that there is a reduction in the default risk in turn leading to a reduction in compensation for default and the default rate.
The risk is made up of risk free + maturity risk + liquidity risk and default risk.
The risk premium on the Risky Investment bond is initially 5.8 percentage points. A decrease in its rate of return from 7.1% to 5.5% narrows the interest rate spread over Treasuries to 4.2 percentage points, likely due to a decrease in the expected default rate of Risky Investment Inc that is option A.
The risk premium on the Risky Investment bond is calculated by subtracting the Treasury bond's rate of return from the Risky Investment bond's rate of return. So the risk premium would be 7.1% - 1.3% = 5.8 percentage points.
When the annual rate of return on the Risky Investment bond decreases from 7.1% to 5.5%, this would narrow the interest rate spread on the Risky Investment bond over Treasuries to 5.5% - 1.3% = 4.2 percentage points.
The decrease in the annual rate of return on the Risky Investment bond could potentially be explained by option 1, which states that the expected default rate on the Risky Investment bond has decreased. This implies that the bond is seen as less risky than before, which can justify a lower rate of return required by investors.
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 36 units of food per year or 18 units of clothing. Which of the following is true?
a. Georgeland has an absolute but not a comparative advantage in producing clothing.
b. Georgeland has both an absolute and a comparative advantage in producing clothing.
c. Alland has an absolute but not a comparative advantage in producing food.
d. Alland has both an absolute and a comparative advantage in producing food.
Answer:
Option (a) is correct.
Explanation:
Alland can produce 32 units of food per person per year or 16 units of clothing per person per year:
Opportunity cost of producing a unit of food = (16 ÷ 32)
= 0.5 units of clothing
Opportunity cost of producing a unit of clothing = (32 ÷ 16)
= 2 units of food
Georgeland can produce 36 units of food per year or 18 units of clothing:
Opportunity cost of producing a unit of food = (18 ÷ 36)
= 0.5 units of clothing
Opportunity cost of producing a unit of clothing = (36 ÷ 18)
= 2 units of food
Therefore, the Georgeland has a absolute advantage in producing both the goods because it can produce more quantity of both the goods with the same resources as Alland. But the Georgeland has not having comparative advantage in producing either of the goods.
During its most recent fiscal year, Raphael Enterprises sold 250,000 electric screwdrivers at a price of $16.50 each. Fixed costs amounted to $625,000 and pretax income was $875,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?
Answer:
$2,625,000 is reported as variable cost.
Explanation:
As we know pretax income is calculated by deducting variable and fixed cost from thr revenue / slaes.
Pretax Income = Contribution Margin - Fixed cost
Contribution Margin = Pretax Income + Fixed cost
Contribution Margin = $875,000 + $625,000
Contribution Margin = $1,500,000
Contribution Margin = Revenue - variable cost
$1,500,000 = ( 250,000 x 16.50 ) - variable cost
$1,500,000 = $4,125,000 - Variable cost
Variable cost = $4,125,000 - $1,500,000
Variable cost = $2,625,000
1. A company reports $11.2 million in goodwill and decides to quantitatively test it for impairment at the end of 2020. The following information is collected: Division 1 Division 2 Division 3 Book value of goodwill $ 7,000,000 $ 200,000 $ 4,000,000 Fair value of division 40,000,000 6,000,000 20,000,000 Book value of division 45,000,000 6,500,000 21,000,000 2. What is the amount of goodwill impairment loss for 2020, following U.S. GAAP? A. $ 6,200,000 B. $ 6,500,000 C. $11,200,000 D. $ 6,000,000
Answer:
B. $ 6,500,000
Explanation:
The goodwill impairment loss for the year 2020 shall be determined through the following mentioned equation:
Goodwill impairment loss=Book value of all the divisions-Fair Value of all the divisions
Book value of all the divisions=$45,000,000+$6,500,000+$21,000,000
=$72,500,000
Fair value of all the divisions= $40,000,000+$6,000,000+$20,000,000
=$66,000,000
Goodwill impairment loss=$72,500,000-$66,000,000
=$6,500,000
So based on the above discussion, the answer is B. $ 6,500,000
Clearly establishing property rights for water ownership would result in which of the following? Choose one or more: A. incentive to maintain the property B. the tragedy of the commons C. incentive to conserve the property D. incentive to trade with others E. incentive to protect the property
Answer:
The options chosen are:
B. the tragedy of the commons;
C. incentive to conserve the property;
E. incentive to protect the property.
Explanation:
B. The tragedy of the commons- Open-access regimes can be exploited on a first-come, first-served basis, because no individual or group has the legal power to restrict access. The consequences of open access have become popularly known as what Hardin (1968) misleadingly called ‘the Tragedy of the Commons.’
C. incentive to conserve the property: In addition, clearly defining and assigning property rights should resolve environmental problems by internalising externalities and relying on incentives for private owners to conserve resources for the future.
E. The Incentive to protect the property - The incentives associated with private property rights can help conserve scarce resources: Private ownership entails penalties for premature harvesting or over-harvesting of resources. Private ownership rewards community and individual cooperation. Private ownership rewards conservation and stewardship behaviour.
These financial statement items are for Cullumber Company at year-end, July 31, 2022.
Salaries and wages payable $ 3,900
Salaries and wages expense 59,100
Supplies expense 16,800
Equipment 17,000
Accounts payable 4,100
Service revenue 67,700
Rent revenue 9,700
Notes payable (due in 2025) 3,300
Common stock 16,000
Cash 35,100
Accounts receivable 11,300
Accumulated depreciation—equipment 7,600
Dividends 4,000
Depreciation expense 4,000
Retained earnings (beginning of the year) 35,000
a. Prepare an income statement for the year. Vaughn Manufacturing did not issue any new stock during the year.
Answer:
First recognize which are expenses and incomes:
Salaries and wages expenses (E)
Supplies Expense (E)
Service revenue (E)
Rent revenue (E)
Depreciation expense (E)
Income statement:
Sales
Service Revenue 67,700
Rent revenue 9,700
Costs
Sales and wages (59,100)
Gross Margin 18,300
Operating expenses
Supplies (16,800)
Depreciation (4,000)
Operating Income (2,500)
Income before Tax (2,500)
Income Tax (875)
The income statement for Cullumber Company for the year ending July 31, 2022, shows a net loss of $2,500. This result is obtained by subtracting the total expenses of $79,900, which includes salaries and wages, supplies, and depreciation, from the total revenue of $77,400, which is the sum of service and rent revenues.
Explanation:To create an income statement, you need to consider the company's revenues and expenses. The primary revenue for Cullumber Company is service revenue, and the secondary one is rent revenue. Expenses include salaries and wages expense, supplies expense, and depreciation expense.
Income Statement for Cullumber Company
Total Revenue: $67,700 (Service Revenue) + $9,700 (Rent Revenue) = $77,400Total Expenses: $59,100 (Salaries and Wages Expense) + $16,800 (Supplies Expense)+ $ 4,000 (Depreciation Expense) = $79,900Net Income (Loss): $77,400 (Total Revenue) - $79,900 (Total Expenses) = -$2,500
This indicates that the company experienced a loss for the year as the expenses exceeded the revenues. Financial statements like these are vital for understanding the company's financial health.
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The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price Boom $2.80 $48 Normal economy 1.80 43 Recession 0.90 34 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answer:
Expected Return =8.75% Standard deviation =6.375%
Explanation:
Overall expected return
We calculated the return for all the possibilities normal, boom, recession
boom+normal+recession
(final stock price-initial stock price+dividend)/initial stock price*prop
=[(48-40+2.80)/40*1/3]+[(43-40+1.8)/40*1/3]+[(34-4+0.90)/40*1/3]
=0.09+0.04-0.0425
=0.875/8.75%
expected holding period standard deviation
(overall expected return-return of scenario)^2*prop
(8,75-9)^2*1/3+(8,75-4)^2*1/3+(8,75+4.25)^2*1/3
=0.006387/0.6387%
You want to open a savings account. There are five banks located in your area. The rates paid by banks A through E, respectively, are given below. Which bank should you select if your goal is to maximize your interest income?
Complete question:
You have $5,600 that you want to use to open a savings account. There are five banks located in your area. The rates paid by banks A through E, respectively, are given below. Which bank should you select if your goal is to maximize your interest income?
A. 3.26 percent, compounded annually
B. 3.20 percent, compounded monthly
C. 3.25 percent, compounded semi-annually
D. 3.10 percent, compounded continuously (ignore this selection)
E. 3.15 percent, compounded quarterly
Answer:
3.25 percent, compounded semi-annually bank should select if the goal is to maximize your interest income
Explanation:
If value is accumulated annually, then n= 1; if semi-annually, then n= 2; quarterly, then n= 4; monthly, then n= 12; weekly, then n= 52; hourly, then n= 365; and so on, irrespective of the number of years concerned.
The widely used compounding method for bank savings accounts is quarterly, weekly or semi-annual; it is also hourly for money market accounts.
The time span for each account of the interest is one day and for half-year accounts it is six months. Regular blogs earn 1/365 a year, while half-year posts take place two times a year.
In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $6 million, patent; $4 million, trademark considered to have an indefinite useful life; and $6 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items?
Explanation:
Because trademarks have an unlimited effective life of 4 million dollars, the regulation is not valid.
Goodwill and immaterial properties are not amortized but are checked for damage annually for infinite useful lives.
The copyright worth $6 million for five years is the only inviolable thing you can amortize.
The gross amortization cost in relation to these things in the income statement of Burger Mania for the first year ending December 31 would amount to $800,000.
Using at least two (2) of the foundational ethical theories studied in Module 2 FOR EACH QUESTION, you should answer the following questions. With each answer, you should discuss the issues and set forth and defend a clear position on whether or not any constraint ought to be placed on the freedom of a business to:
a. export capital (factories, jobs, resources) for production abroad (remember, you will want to concentrate on the ethics of this proposed action, rather than the political or legal implications) on
b. export commodities which have been banned from sale in the United States due to health or safety concerns
c. downsize in the face of economic difficulty
d. break union contracts in the face of economic difficulty
e. Theories to use (two per question): Utilitarian, Kant, Egoism, Libertarianism, Rawlsianism,
Answer:
With moral situation in relationship with sending out capital for creation abroad I would state that organization shouldn't be made to proceed with tasks in the event that they are never again beneficial. As I would see it, one of the primary reasons partnerships would trade capital for creation is expand benefits of their investors. This would be a Libertarian's perspective, which means point of view is that individual prosperity, thriving and social concordance are cultivated by "however much freedom as could be expected" and " as meager government as essential" and accept that when a business is never again gainful officials search for approaches to reduce expenses, and since lower wages can be paid in different nations this can get huge reserve funds for the organization.
Enterprises ought to be permitted to stay serious and on the off chance that that implies trading capital, at that point so be it. In any case, I do feel that companies have an ethical duty to its workers and network that they are forsaking.
Utilitarian hypothesis is to create the best great over awful for an extraordinary number of individuals. Sending out capital for creation abroad has helped colossally in the improvement of different nations. An utilitarian doesn't really imply that the correct activity is the one that profits the best, yet the rule is to augment the best advantage for all.
A moral problem that is related with sending out restricted items is basically the way that the individuals can be harmed or even kick the bucket subsequently in utilizing this prohibited item. Hence, in light of this, I would state that imperatives ought to be set on the exportation of the items banned in U. S. To help my choice, I will utilize the Ethical Theory of German scholar, Immanuel Kant for my defense. Kant's moral hypothesis depends on the hypothesis that ethical issues canine standards be known due to reason alone and not founded on perception. Nonetheless, the contention that the advantages of sending out provisions with the chance of misuses that the great overweight the awful. Therefore, I feel that a few limitations ought to be put on the opportunity to send out wares that have potential for abuse and Utilitarianism, a consequential hypothesis, will bolster my announcement.
As indicated by an article " Any time we're confronted with a choice that can influence the rights or prosperity of others, we're taking a gander at a moral issue. Regardless of how solid the avocation for lessening the working environment are appeared to be, laying off loyal and gainful representatives in an upsetting encounter for all concerned and those on the less than desirable end face monetary as well as mental injury. " (Bruce Weinstein, 2008)
For any practical moral point of view, the appropriate response is constantly a yes. An organization that gives no occupations and no advantages has a total assets of literally nothing, best case scenario, and is destructive even under the least favorable conditions, as individuals have put their lives in the endeavor, and should look for work somewhere else, apparently from a comparable industry, which is likely additionally enduring as a rule.
I don't intend to be hostile or contrarian or basic, yet I figure a superior inquiry would be: " Should a business be permitted to scale back in face of monetary trouble in the event that it could do to something else?" all things considered the appropriate response from a standard Utilitarian point of view turns out to be significantly more troublesome, and relies on various components. In philanthropic capacity feasible for an adequate period of time? Is the potential for venture and development going to give superior to scaling back? I m not certain utilitarianism can even answer this inquiry. I think act utilitarianism would be more qualified, and on account of the subsequent inquiry, my answer would no.
Concerning breaking an association contract, I think that this is an extreme one for rule utilitarianism. From the degree of the agreement, it isn't adequate, as it abuses the guidelines probably set out for the best advantage of all. On the other hand, if breaking the agreement can spare occupations, rule utilitarianism has crushed itself.
From the standard point of view, my answer would be "no" as there are no ifs, ands or buts arrangements for exchange that can be utilized to rethink the principles in the event of an emergency. An occupation that pays you less is better than no activity at all under either type of utilitarianism.
The ethics of a business exporting capital and commodities, downsizing, and breaking union contracts are best analyzed using utilitarianism, Kantian ethics, and Rawlsianism.
Explanation:When considering the ethical implications of a business exporting capital for production abroad, two foundational ethical theories that can be applied are utilitarianism and Kantian ethics. Utilitarianism focuses on maximizing overall happiness or well-being, while Kantian ethics emphasizes the importance of treating individuals as ends in themselves and not as means to an end. From a utilitarian perspective, exporting capital may lead to increased economic growth and job opportunities in the host country, benefiting the overall welfare. However, from a Kantian perspective, if exporting capital results in exploitation of workers or violation of labor rights in the host country, it may be deemed unethical.
Similarly, when examining the ethics of exporting commodities banned in the United States due to health or safety concerns, utilitarianism and Kantian ethics can be utilized. From a utilitarian standpoint, exporting such commodities may maximize overall happiness if there is a demand for them in other countries. However, considering Kantian ethics, if exporting banned commodities poses a risk to the health and safety of individuals in the recipient country, it may be seen as ethically wrong.
Regarding downsizing and breaking union contracts in the face of economic difficulty, utilitarianism and Rawlsianism can be relevant ethical theories. Utilitarianism would consider the overall welfare and outcomes for the business and society, whereas Rawlsianism would prioritize fairness and justice. Downsizing and breaking union contracts may be justified from a utilitarian perspective if it helps the business survive and prevents greater economic harm. However, from a Rawlsian perspective, considerations of fairness and maintaining social and economic stability may suggest the need for alternative approaches that minimize the negative impact on employees and uphold contractual obligations.
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Should a monopolist’s freedom to refuse to deal with its dealers be restricted? In thiscase, suppose that this refusal would drive a dealer out of business. Explain the welfareeffects.
Answer:
Yes
Explanation:
Note that, the term “refusal to deal” with dealers is a situation in which one firm refuses to sell to dealers ans is only willing to sell at a price that is considered “too high”. Also note that restriction of refusal is subject to the jurisdiction of the firm.
However, in a case a Non-monopolistic firms they are free to make these decisions without risk of violating competition laws. The most common welfare effects involves a negative impact on competition, that affects the end-users due rise in prices.
If a firm’s inventories on hand are $200,000, its cost of goods sold is $600,000, and its sales are $800,000, what is the inventory turnover?
Answer:
inventory turnover= 3
Explanation:
Giving the following information:
A firm’s inventories on hand are $200,000
The cost of goods sold is $600,000.
To calculate the inventory turnover, we need to use the following formula:
inventory turnover= cost of goods sold/ average inventory
inventory turnover= 600,000/200,000= 3
The statements and equations show various ways of defining average variable cost, marginal cost, and average total cost. TC is used to abbreviate total cost, VC is used to abbreviate variable cost, and Q is used to abbreviate quantity. Classify each statement or equation according to whether it describes average variable cost, marginal cost, or average (total) cost.
The student's question involves identifying and classifying average variable cost (AVC), marginal cost (MC), and average total cost (ATC) in business economics. AVC is variable costs divided by output quantity, MC is the derivative of total cost with respect to quantity, and ATC is total costs divided by output quantity.
The student's question pertains to the classification of different cost measures commonly used in economics and business studies: average variable cost (AVC), marginal cost (MC), and average total cost (ATC). Each of these measures provides insight into the cost structure of a firm on a per-unit basis. Here's a simplified breakdown:
Average Variable Cost (AVC) is defined as the variable cost (VC), which includes costs that do vary with the level of output, divided by the quantity (Q) of output. Mathematically, AVC = TVC/Q.
Marginal Cost (MC) is the additional cost of producing one more unit of output. It is calculated as the derivative of Total Cost (TC) with respect to quantity (Q), which can be expressed as MC = d(TC)/dQ.
Average Total Cost (ATC) is the sum of all the costs (both fixed and variable) incurred by a firm, divided by the total quantity of output produced. It is calculated as ATC = TC/Q.
An understanding of these concepts is crucial for making informed business decisions, such as determining the optimal level of production or pricing strategies.
An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is beneficial, it is called a positive externality.The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good.Shift one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should shift the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should shift the demand curve to reflect the social value of consuming the good.With this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be (greater, less) than the socially optimal quantity.Which of the following generate the type of externality previously described? Check all that apply.1.The city where you live has turned the publicly owned land next to your house into a park, causing trash dropped by park visitors to pile up in your backyard.2.Your roommate, Valerie, has bought a puppy that barks all day while you are trying to study economics.3.Manuel has planted several trees in his backyard that increase the beauty of the neighborhood, especially during the fall foliage season.4. A leading electronics manufacturer has discovered a new technology that dramatically improves the picture quality of plasma televisions. Firms of all brands have free access to this technology.
Answer:
(A) It is a Positive externality if the effect on third parties is beneficial.
(B) With positive externality, the social interest exceeds private interest, hence the demand curve shifts as seen attached.
(C) In the absence of interference, the quantity of market equilibrium would be less than the quantity which is socially optimal.
(D) Examples follow:
Leading software corporation agrees to raise the budget for open-source development research. Nick planted numerous trees.A. It is a Positive externality and third parties are beneficial
B. The demand curve shifts as seen attached.
What is the Demand Curve?
(A) It is a Positive externality if the consequence on third parties is beneficial.
(B) With positive externality, When the social interest exceeds private interest, therefore, the demand curve shifts as seen attached.
(C) In the scarcity of interference, the quantity of market equilibrium would be less than the socially optimal quantity.
(D) Examples observe:
Leading software corporation decides to raise the budget for open-source development research. Then Nick planted numerous trees.
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First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually. If you made a deposit of $9,000 in each bank, how much more money would you earn from your Second City Bank account at the end of 12 years?
Answer:
The second bank provides with the higher future value.
Explanation:
Giving the following information:
First City Bank:
pays 6 percent simple interest
Second City Bank:
pays 6 percent interest compounded annually.
You deposited $9,000 in each bank.
The simple interest means that the interest gain each year doesn't accumulate. Compounded interest accumulates the interest to the principal, generation more interest each year.
First City Bank:
To calculate the ending value, we need to use the following formula:
FV= Principal + (principal*interest rate*n)
FV= 9,000 + (9,000*0.06*12)= $15,480
Second City Bank:
FV= Principal*(1+i)^n
FV= 9,000*(1.06^12)= $18,109.77
The second bank provides with the higher future value.
Western Markets has 150,000 shares outstanding with a market price per share of $15. Each share is entitled to one right. If the firm sets a rights offer as 5 rights plus $10 for each new share, what will be the ex-rights price per share
Answer: $8.50
Explanation:
Price Outstanding Value
Total Shares 15 150,000.00 $2,250,000.00
Right Price 2 150,000.00 $300,000.00
Total Shares and Value 300,000.00 $2,550,000.00
Ex rights Price = $2,550,000/300,000 = $8.5
Final answer:
The ex-rights price per share is calculated by adding the funds raised from the rights offering to the market value of the company before the offering and then dividing by the new total number of shares. In this case, the ex-rights price per share is approximately $14.17.
Explanation:
The student's question involves calculating the ex-rights price per share after a rights offering by Western Markets. The company currently has 150,000 shares outstanding priced at $15 per share, and the rights offering allows for the purchase of new shares at a discounted price, with 5 rights and an additional $10 payment required for each new share.
To calculate the ex-rights price, we must first determine the number of new shares that will be issued. Since 5 rights are needed for one new share, and there are 150,000 shares outstanding, this results in 30,000 new shares (150,000/5). The total funds raised from the rights offering will be $300,000 (30,000 shares x $10).
The total value of the company after the rights offering will be the sum of the market value before the offering ($2,250,000 which is 150,000 shares x $15) and the funds raised from the offering ($300,000), resulting in $2,550,000. We then divide this total by the new number of shares outstanding (180,000 shares, which is the original 150,000 plus the 30,000 new shares) to get the ex-rights price per share.
Ex-rights price per share = Total value / New total number of shares = $2,550,000 / 180,000 = $14.17 approximately.
he strategic management process: 1. is especially difficult for the small business because of its limited resources. 2. divides mass markets into smaller, less homogeneous units. 3. provides the small business owner with the tools for managing the uncontrollable elements in the external business environment. 4. helps a small business develop the game plan that guides it in creating its mission, vision, goals, and objectives.
Answer:
4. helps a small business develop the game plan that guides it in creating its mission, vision, goals, and objectives.
Explanation:
Strategic management is the process by which a business continuously plans, monitors, analyses, and asseses organisational activities with the aim of meeting it's goals and objectives.
The business environment is constantly changing and this calls for continous changing of business strategy to ensure survival.
Strategic management process involves five stages:
- Clarify business vision
- Gather and analyse information
- Formulate a strategy
- Implement strategy
- Evaluate results and control outcomes
The pilots of various U.S. airlines are threatening to strike unless they receive wage increases. The pilots belong to a union. Which of the following would most likely negotiate an agreement with airline management?
Answer: The question did not include the options. The answer is Union Representatives
Explanation: The Question with the options should be:
The pilots of various U.S. airlines are threatening to strike unless they receive wage increases. The pilots belong to a union. Which of the following would most likely negotiate an agreement with airline management?
A) union representatives
B) employee supervisors
C) government agencies
D) individual employees
The right answer is A ---- Union representatives
This is because Since the pilots belong to a union then Negotiation with management would be with the Union Representatives rather than individual pilots where the Union would present the concerns of the pilots to the management so as to resolve issues.
The tool that can be used to depict main causes for an identified quality problem, subdivided into categories represented as machines, materials, methods, and manpower, is called a:____________
Answer:
Fishbone diagram
Explanation:
The fishbone diagram, also known as Ishikawa diagram or the cause and effect diagram is a visualization tool used for grouping the likely causes of a problem to know its root causes. A fishbone diagram blends brainstorming with a mind map template.
A fishbone diagram is used for troubleshooting and product development. After all the likely causes of a problem has been brainstormed by the group, the facilitator rates the possible causes in accordance to their importance. The diagram's design resembles a fish skeleton. Fishbone diagrams are usually made at team meetings.
Answer: Cause and Effect Diagram/Fishbone Diagram
Explanation: The Cause and Effect /Fishbone Diagram is so named because of its similarity to the skeleton of a fish. It is used to visulaize the causes of a quality problem and the interactions between them.
When the possible causes are categorized into manpower, methods, material and machines, it is a 4M Cause and Effect Diagram. This is useful in a manufacturing environment where any of these factors can be the cause of a quality problem. These categories are further divided into subcategories and help identify the cause of quality issues.
Millcorp sells wetsuits for deep sea divers. It recently engineered a new material for its wetsuits to better hold in the wearer’s body heat. After a close encounter with a shark, a customer discovers that the new material protects against shark bites. Soon after, Millcorp’s sales explode and it achieves 90% market share in diver wetsuits. Which of the following best describes this situation?a)Millcorp has a lawful natural monopolyb)Millcorp has a lawful innocent acquisition of a monopoly.c)Millcorp does not have a monopoly.d)Millcorp can likely be found guilty of pursuing monopoly power.
Answer:
B) Millcorp has a lawful innocent acquisition of a monopoly.
Answer:
B) Millcorp has a lawful innocent acquisition of a monopoly.
Explanation:
Millcorp has a lawful innocent acquisition of Monopoly because Millcorp isn't aware that the newly acquired material for wet suit protect against shark bite. The motive if acquiring the material was to better hold in the wearer's body heat.
The innocent acquisition of the material and the new discovery has increased the demand for Millcorp product which will increase its profits
Monopoly:This a market structure in which a seller sells a unique product.
The product sold by the seller cannot be easily substituted.
The Monopoly is characterised by
1) Single seller and many buyers
2) Absence of competition
3) No close substitute
6. Provide a concise statement about the relationship between a developing country’s emphasis on the export of traditional commodities and: (a) export earnings stability; (b) comparative advantage; (c) terms of trade.
Answer:
(a) Traditional commodities may experience higher price fluctuations.
(b) Developing countries tend to have comparative advantage in traditional commodities.
(c) The terms of trade for traditional commodities may tend to reduce over time in accordance to the Prebisch-Singer.
Explanation:
(a) Traditional commodities tend to experience fluctuations in price which will invariably lead to fluctuations in export earnings. Many developing countries concentrate on the exportation of primary products which are usually affected by shifts in supply and demand and are more price inelastic. The uncertainty caused from commodity price fluctuations can hamper economic growth and may increase poverty.
(b) Comparative advantage is the advantage a country gets by producing a good or service at a lower opportunity cost than other countries. Even though the nation may not be the best at producing that particular thing, the good or service has a low opportunity cost. Many developing countries have a comparative advantage in the production of traditional commodities because of natural endowments and low labour costs.
(c) Terms of trade is the ratio of a country's average export price to the country's average import price. For developing countries, the terms of trade for traditional commodities tends to fall with time. The Prebisch–Singer thesis proposed that the price of primary or traditional commodities reduces relative to the price of manufactured products over the long term, thereby causing deterioration in the developing economies terms of trade.
Which of the following is an example of human capital?
a.the comfortable chair in your room where you read economics texts
b.the amount you get paid each week to work at the library
c.the things you have learned this semeste
d.any capital goods that require a human to be present to operate
Answer:
B
Explanation:
b.the amount you get paid each week to work at the library
This is because human capital involves using humans to perform series and output and managing them only option b fall in that line
Under absorption costing, fixed overhead is allocated to products sold, so when production is greater than units sold, net income will be ___________(greater, less) than income calculated under variable costing.
Answer:Greater
Explanation: Absorption costing is a cost accounting procedure which is used in the costing of both the direct and indirect expenses involved in the production of a specific product or service over a given period of time.
Fixed overhead costs are specifically concerned with goods sold while variable costs are specifically concerned with all the goods manufactured.
THE COST THAT WILL BE ASSOCIATED WITH FIXED OVERHEAD COST WILL BE LESS WHEN COMPARED TO THAT CALCULATED USING VARIABLE COSTING AND THIS WILL CAUSE THE NET INCOME CALCULATED USING THE FIXED OVERHEAD COST TO BE GREATER THAN THE VARIABLE COSTING APPROACH.
Under absorption costing, net income will be greater than under variable costing when production exceeds units sold because some fixed costs are allocated to inventory rather than being immediately expensed.
Explanation:Under absorption costing, fixed overhead is allocated to products sold. Consequently, when production exceeds units sold, the net income will be greater than income calculated under variable costing. This occurs because with absorption costing, some of the fixed costs are allocated to the inventory and are not immediately expensed in the period they are incurred but instead are recognized as the inventory is sold. This can defer some expenses and thus increase the reported net income in periods where production is greater than sales. With variable costing, however, all fixed overhead costs are expensed in the period they are incurred, which means that net income will closely align with the number of units sold and not necessarily the number of units produced.
Variable costing provides insights into the firm's ability to cut costs in the present and showcases how costs will change with production levels. Unlike fixed costs which are sunk and constant, variable costs increase proportionally with production output, influencing decisions about optimal production and cost management strategies in the immediate term.
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $209,000. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials). Accrued direct labor cost of $48,000 and indirect labor cost of $22,000. Depreciation recorded on factory equipment, $104,000. Other manufacturing overhead costs accrued during October, $131,000. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,300 machine-hours were used in October. Jobs costing $512,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Jobs that had cost $449,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 22% above cost.
Answer:
The question is incomplete. Missing Portion is written as bold in explanation.
Explanation:
Required:
1. Prepare journal entries to record the transactions given above.
2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $37,000.
Account Dr Cr
1.Raw materials 209000
Account payable-Liability 209000
The Materials are purchased in credit.
2. Work In Process 152000
Manufacturing Overhead 38000
Raw materials 190000
Entry for Materials used in Production.
3. Work In Process 48000
Manufacturing Overhead 22000
Salaries payable 70000
4.Manufacturing Overhead 104000
Depreciation 104000
5. Manufacturing Overhead 131000
Account payable 131000
6.Work In Process 686700 ( 9 x 76300= 686700)
Manufacturing Overhead 686700
7.Finished Goods 512000
Work In Process 512000
8.Cost of goods sold 449000
Finished Goods 449000
Accounts Receivable 547780
Sales Revenue 547780
**Sales - Cost of job * 1.22 (22 % above cost)
2. T-accounts for Manufacturing Overhead and Work in Process.
Manufacturing overhead
Dr Cr
22000 686700
38000
104000
131000
Ending balance 391700 - Favorable
Work In process
Dr Cr
beginning bal. 37000
152000
48000 512000
686700
Ending balance 411700
The Polaris Company uses a job-order costing system, accounting for various cost factors in production and utilizing a predetermined manufacturing overhead rate. This system is essential for tracking product costs and determining the financial performance of the company.
The Polaris Company's job-order costing system handles various transactions that impact the cost of manufactured products. In October, these transactions include raw materials purchase, consumption in production (split into direct and indirect materials), and accrued labor costs, both direct and indirect.
Manufacturing overhead costs, including depreciation of factory equipment and other overheads, are also accounted for. Importantly, manufacturing overhead is applied at a predetermined rate based on machine hours utilized.
This information aids in calculating the cost of goods manufactured and cost of goods sold, vital for determining the company's financial performance for that month.
When the jobs are transferred to Finished Goods and eventually sold to customers at a markup, understanding this costing system helps ascertain profitability and cost efficiency within the company.