Answer:
agrees to buy shares at a set price if the option holder desires.
Explanation:
In the stock market a put option is the right of a buyer to buy an options contract on an underlying asset at a set price before or on a particular date.
A person will buy a put option if they forecast that the price of an underlying asset will go down. A put owner will only make profit when he sells below the purchase price.
The call option is when a person agree to sell options at a set price where the holder is willing to buy.
Variable and absorption costing and breakeven points. Camino, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Camino sold 400,000 basketballs at an average selling price of $12 per unit. The following information also relates to 2017 (assume constant unit costs and no variances of any kind):
Inventory, January 1, 2017: 0 basketballs
Inventory, December 31, 2017: 20,000 basketballs
Fixed manufacturing costs: $380,000
Fixed administrative costs: $660,000
Direct materials costs: $ 3 per basketball
Direct labor costs: $ 4 per basketball
1. Prepare income statements under (a) variable, (b) absorption, and (c) throughput costing for the year endedDecember 31,2017.
2. Calculate the breakeven point (in basketballs sold) in 2017 under:
a. Variable costing
b. Absorption costing
c. Throughput costing
3. Suppose direct materials costs were $4 per basketball instead. Assuming all other data are the same, calculate the minimum number of basketballs Camino must have sold in 2017 to attain a target operating income of $120,000 under:
a. Variable costing
b. Absorption costing
c. Throughput costing
1. Income Statements:
- (a) Variable Costing: Net Income -$240,000
- (b) Absorption Costing: Net Income $140,000
- (c) Throughput Costing: Net Income $2,560,000
2. Breakeven Point:
- (a) Variable Costing: 208,000 basketballs
- (b) Absorption Costing: 208,000 basketballs
- (c) Throughput Costing: 104,000 basketballs
3. Target Operating Income:
- (a) Variable Costing: 130,000 basketballs
- (b) Absorption Costing: 248,000 basketballs
- (c) Throughput Costing: 162,500 basketballs
### 1. Income Statements:
(a) Variable Costing:
Sales Revenue: (400,000 basketballs * $12) = $4,800,000
Variable Manufacturing Costs: (400,000 basketballs * $7) = $2,800,000
Variable Selling & Administrative Costs: (400,000 basketballs * $3) = $1,200,000
-------------------------------
Total Variable Costs: $4,000,000
-------------------------------
Contribution Margin: $800,000
Fixed Costs: ($380,000 + $660,000) = $1,040,000
-------------------------------
Net Income: $800,000 - $1,040,000 = -$240,000
(b) Absorption Costing:
Sales Revenue: $4,800,000
Cost of Goods Sold: (400,000 basketballs * $7) = $2,800,000
Gross Profit: $2,000,000
Selling & Administrative Costs: ($1,200,000 + $660,000) = $1,860,000
-------------------------------
Net Income: $2,000,000 - $1,860,000 = $140,000
(c) Throughput Costing:
Sales Revenue: $4,800,000
Direct Materials Costs: (400,000 basketballs * $3) = $1,200,000
-------------------------------
Throughput Margin: $3,600,000
Fixed Costs: $1,040,000
-------------------------------
Net Income: $3,600,000 - $1,040,000 = $2,560,000
### 2. Breakeven Point:
a. Variable Costing:
[tex]\[ \text{Breakeven Point (units)} = \frac{\text{Fixed Costs}}{\text{Selling Price - Variable Cost per Unit}} \][/tex]
[tex]\[ \text{Breakeven Point} = \frac{\$1,040,000}{\$12 - \$7} = 208,000 \text{ basketballs} \][/tex]
b. Absorption Costing:
[tex]\[ \text{Breakeven Point} = \frac{\$1,040,000}{\$12 - \$7} = 208,000 \text{ basketballs} \][/tex]
c. Throughput Costing:
[tex]\[ \text{Breakeven Point} = \frac{\$1,040,000}{\$12 - \$3} = 104,000 \text{ basketballs} \][/tex]
### 3. Target Operating Income:
Assuming direct materials cost is $4 per basketball:
a. Variable Costing:
[tex]\[ \text{Minimum Units to Attain Target Income} = \frac{\text{Fixed Costs + Target Income}}{\text{Selling Price - Variable Cost per Unit}} \][/tex]
[tex]\[ \text{Minimum Units} = \frac{\$1,040,000 + \$120,000}{\$12 - \$4} = 130,000 \text{ basketballs} \][/tex]
b. Absorption Costing:
[tex]\[ \text{Minimum Units} = \frac{\$1,040,000 + \$120,000}{\$12 - \$7} = 248,000 \text{ basketballs} \][/tex]
c. Throughput Costing:
[tex]\[ \text{Minimum Units} = \frac{\$1,040,000 + \$120,000}{\$12 - \$4} = 162,500 \text{ basketballs} \][/tex]
Universal Furniture international, Inc. held copyrights on the designs of two furniture lines it sold. The designer had started with public domain sources, but blended elements from different historical periods and created changes until he found the designs aesthetically pleasing. He had blended the elements to create a different look. a major buyer of the lines asked Collezione Europa USA, Inc. to produce a cheaper version. Collezione did not know of the copyrights, but thought the designs were not entitled to copyright protection and could be imitated. it produced furniture so similar that when Universal’s senior vice president saw the pieces, he thought they actually were Universal pieces. Universal sued Collezione for infringement. Did Collezione have the right to imitate the designs?
Answer: No, Collezione does not have the right to imitate the designs
Explanation: Collezione has no right to imitate the designs of universal funiture becauseit not tCollezione collection original idea, Also under copyright law, it is an offense to imitate someone design or product without the owner's consent.
In this context , Universal furniture has the right to sue Collezion for Imitation and infringement.
Based on copyright laws, Collezione Europa likely committed infringement by imitating Universal Furniture International's copyrighted designs. Universal's unique blend and amendment of historical periods' elements gave it the rights to the copyright. Ignorance of these copyrights doesn't absolve Collezione of potential liability.
Explanation:The legality of Collezione Europa's imitation of Universal Furniture International's designs depends largely on the copyright laws in the country where this takes place. Of relevance here is the doctrine of fair use, which allows the use of copyrighted work under certain circumstances. However, fair use typically doesn't cover direct commercial competition.
In this case, even though the designs were inspired by elements from different historical periods, they were uniquely blended and changed into something original by Universal Furniture International. Because of this, Universal had the right to copyright these designs. Collezione's argument that it didn't know about the copyrights and thought the designs could be imitated doesn't absolve it of liability. In fact, their furniture was so similar that it was mistaken for Universal's, suggesting clear infringement. Therefore, it appears that Collezione did not have the right to imitate the designs.
Learn more about Copyright Infringement here:https://brainly.com/question/33346068
#SPJ3
"The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $.48. The following interest rates exist: You need to purchase SF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is:"
Answer:
$96,914
Explanation:
360‑day borrowing rate in Swiss as given is 5%
rate = 100 + 5 = 105%
Total = 200,000/105% = SF190,476
The spot rate of the Swiss franc is $.48
Therefore SF190,476 = SF190,476 × $.48 = $91,428
360‑day deposit rate in US as given 6%
Total Invest = 6 % of $91,428 + $91,428
= $5485.68 + $91,428 = $96,914
Alex invested $30,000 in cash in his business. How will this entry be posted in the ledger accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Answer:
1) The $30,000 will be posted to the debit side of the Cash account.
2) The $30,000 will be posted to the credit side of the Common Stock account.
Explanation:
The company has an unadjusted debit balance in Accounts Receivable of $25,000 and an unadjusted credit balance of $10 in Allowance for Sales Discounts as of December 31. Of the $25,000 of receivables, $10,000 are within a 2% discount period that the company expects the buyers to take.
Complete the necessary adjusting entry by selecting the account names from the drop-down menus and the amounts in the Debit and Credit columns.
Answer:
Date Description Dr. Cr.
Dec 31 Sales discounts $200
Allowance for sales discounts $200
Explanation:
Expected sales discounts. $10,000 × 2% = $200
As the discount is expected and according to the accrual accounting concept the expenses accrued or expected to incurred should be recorded in the period in which revenue of that expense is recorded. Discount of 2% is expected to be availed by the customer amounting sales of $10,000. and it will be availed after year end as discount period will end after year end.
You are a manager of a project and you are negotiating a contract. You offered an estimate that you know will be changed after the contract is signed. Which PMI ethical cornerstones and clauses are violated? (check all that apply) ""We do not deceive or mislead"" Honesty Respect ""We negotiate in good faith""
Answer:
Honesty.
We do not deceive or mislead.
We negotiate in good faith.
Explanation:
As a manager, I am responsible to follow ethical values of the contract. Because the contract sometimes cannot be modified. Moreover negotiations over a contract means win win situation for both parties.
Honesty: Since i had the estimate, which i could have shared with the other party but i did not because it would have harmed my profits so, I wasn't honest and violated this clause at first.
We do not deceive or mislead: Once again, I had an information which if shared could have changed the contract but since it was harmful to my business I didn't and I deceived the other party into believing that the contract is done fairly but later on the other party finds out about it they will go to court over this.
We negotiate in good faith: The purpose of this clause is to make sure that all parties involved want something better for everyone. No party is looking for win-lose situation. But the action I as a manager did, also violated this clause, for which the other party can sue me in the court.
The balance in the supplies account, before adjustment at the end of the year, is $9,000. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $1,575. If an amount box does not require an entry, leave it blank.
Explanation:
The adjusting journal entry is as follows:
Supplies expense A/c Dr $7,425
To Supplies A/c $7,425
(Being supplies account is adjusted)
The supplies expense is computed by
= Supplies balance before adjustment - supplies on hand
= $9,000 - $1,575
= $7,425
For recording this adjusting entry, we debited the supplies expense account and credited the supplies account
A debit of $7425 is made to the Supplies Expense account and a credit of the same amount is made to the Supplies account to adjust for the consumed supplies. This is necessary to correctly reflect the amount of supplies on hand at the end of the year.
Explanation:The subject of this question is Accounting, specifically about adjusting entries in the ledger. An adjusting journal entry is required when the amount of supplies on hand at the end of the year is different from what is reflected in the account. In this case, the balance in the Supplies account is $9,000, while the actual amount of supplies on hand is $1,575.
To reflect the correct amount, a journal entry must be made to deduct the value of the consumed supplies. This is computed by subtracting the actual remaining supplies from the initial recorded amount (i.e., $9,000 - $1,575 = $7425). Therefore, you need to debit the Supplies Expense account and credit the Supplies account by this difference ($7425).
Here is the journal entry:
Debit Supplies Expense $7425Credit Supplies $7425Learn more about Adjusting Entries here:https://brainly.com/question/33175618
#SPJ3
Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The reason given was the belief that this it was morally wrong to deprive the majority of the people of this experience. What type of ethical philosophy is represented in this case? Give an additional example of this type of ethical philosophy.
Answer: Utilitarianism
Explanation:
Utilitarianism can he defined a moral theory that supports actions that boost overall pleasure or happiness and rebuff actions that lead to harm or unhappiness. A utilitarian philosophy aims to make the society a better place.
The maxim of utilitarianism is that a considerable amount of good should go to a considerable amount of people. Utilitarianism seeks to maximize well-being and happiness. Mama Diner's restaurant was closed because the principle of utilitarianism was not followed because handicapped students couldn't make use of bathroom stalls.
For example, if there is a new disease that kills people instantly when the affected person coughs around other people, the government might be forced to kill the person in order to save others.
The ethical philosophy represented in the Mamma's Diner case is utilitarianism, which values the happiness of the majority over the individual. An additional example is the allocation of scarce medical resources in healthcare, where the resource could be given to a patient who can potentially contribute more to society.
Explanation:The ethical philosophy represented in the case of Mamma's Diner is utilitarianism. Utilitarianism is a theory in moral philosophy that suggests the best action is the one that maximizes overall happiness or 'the greatest good for the greatest number'. It values the welfare of the majority over the individual. In this case, it was thought that the satisfaction of majority of the students who frequented the restaurant outweighed the need to accommodate the one wheelchair-bound student.
An additional example of utilitarianism could be the ethical scenario in healthcare, where scarce medical resources (like a single organ for transplant) could be given to a patient who may benefit from it the most and contribute more to society rather than a patient who may be in greater need but less likely to survive or contribute as much. Professionals in a clinical setting often face these ethical dilemmas.
Learn more about Utilitarianism here:https://brainly.com/question/33873982
#SPJ3
George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,640. He has just decided to join the company’s Simple Retirement Account (IRA form) and has a few questions. Answer the questions for Clausen. (use 2015 tax information)
a.What is the maximum that he can contribute into this retirement fund? b.What would be the company’s contribution?
c.What would be his weekly take-home pay with the retirement contribution deducted(married, 2 allowances,wage-bracket method,and a 2.3%state income tax on total wages)?
d.What would be his weekly take-home pay without the retirement contribution deduction?
Answer: a) Maximum contribution - $11,500
b). The contribution by the $1,279.20
C). Take home pay with the retirement contribution deduction = $487.26
d). Take home pay without the retirement contribution deduction = $675.41
Explanation: George being a contributor to the retirement savings account is entitled to some allowances.
The maximum contribution he can make is $11,500 while the complany contributes 3% of his salary. That is 3% × $42,640 = $1,279.20
Having a weekly pay of $820 ($42,640/52 weeks) and being married his take home will be; Weekly Retirement contribution ($11,500 ÷ 52 weeks) = (221.15)
FIT ($820.00 – $221.15 = $598.85 taxable) (30.00)
State income tax ($820.00 × 0.023) =$18.86
Therefore take home =$ 487.26 *Married, 2 allowances.
Finally, George’s take-home pay without the retirement contribution deducted:
Weekly pay =$820.00
FICA—OASDI =($50.84)
FICA—HI = (11.89)
FIT (on $820.00) =(63.00)
State income tax ($820.00 × 0.023) = (18.86)
Therefore, Take-home pay =$675.41
In 2015, the maximum contribution to a Simple IRA was $12,500. The company would match up to 3% of the employee's salary. With the retirement contribution deducted, George's weekly take-home pay would be approximately $675.5. Without the retirement contribution, his gross weekly pay would rise to approximately $710
Explanation:George Clausen has chosen to contribute to a Simple IRA retirement fund provided by his employer, the Kline Company. The answers to his questions, using 2015 tax information, are as follows:
a. Maximum Contribution: The yearly maximum contribution George can make is $12,500 as per the 2015 IRS guidelines. b. Company's Contribution: The Kline Company is liable to match the employee's contributions on a dollar-to-dollar basis, up to a maximum of 3% of George's annual salary. In this case, that would equate to $1,279.20. c. Weekly Take-home Pay with Retirement Contribution: Assuming George contributes the maximum to his retirement and taking into account 2 allowances, a 2.3% state income tax, marital status, and the wage-bracket method; his approximate weekly take-home pay after all deductions would be about $675.5 d. Weekly Take-home Pay without Retirement Contribution: If George didn't make the IRA contribution, his gross weekly pay would rise to about $710.
These figures are all estimates, as actual deductions could vary based on tax laws and personal circumstances. George should consult with a tax advisor or financial planner for personalized advice.
Learn more about Simple IRA Retirement Fund here:https://brainly.com/question/34660958
#SPJ11
Suppose that in an effort to shift the aggregate demand curve to the right, the government increases spending without changing taxes, thereby increasing real GDP. To the extent that increased government borrowing causes interest rates to , the increase in aggregate demand will be than policymakers expected when formulating the magnitude of their fiscal stimulus. This is known as the effect.
Answer:
Crowding Out Effect
Explanation:
Increasing government lending raises rate of interest, as investors become uncertain about the capacity of government to repay, therefore government needs to present higher interest rates.
A rise in government debt which holds taxes stagnant continues to crowd out private spending which dampens the beneficial effects of increased government spending on Aggregate Demand. The rise in Aggregate Demand is likely to be less than anticipated by policymakers.
rise, less, out
A(n) ________________________ helps the company better understand consumer reactions to a product idea in an early stage of the product development process. This helps the company avoid launching products that do not appeal to a lot of consumers.
Answer:
concept test
Explanation:
Concept test is a stage where the company tries to do a survey on the potential customers to see if it can work. By doing concept tests, the company can predict whether the product can sell or not, thus minimizing the risk of the failure of the product. Concept tests can also give an idea of how to improve a certain aspect of the product before launch.
Glasgow Enterprises started the period with 65 units in beginning inventory that cost $3.40 each. During the period, the company purchased inventory items as follows. Glasgow sold 335 units after purchase 3 for $3.40 each. Purchase No. of Items Cost 1 310 $ 3.90 2 145 $ 4.00 3 60 $ 4.40 Glasgow's ending inventory under weighted average would be approximately: (Round your intermediate calculations to 2 decimal places.)
Answer:
Value of ending inventory = $960.4
Explanation:
To value inventory, The weighted average inventory method uses the value of weighted average price of all the batches purchased till date. The weighted average price is re-computed whenever a new batch of stock is received.
Step 1
Calculate the weighted average price
For Glasgow, we can work out the weighted average price as follows:
The total value = (65 × $3.40) +( 310× $3.90) +( 145 × $4.00) + ( 60 × $4.40)
= $2,274
The total quantity purchased before sales
= 65 + 310 + 145 + 60
= 580 units
Weighted average price
= $2,274/ 580 units = $3.92
Step 2
Calculate the closing inventory units
Closing inventory = opening inventory + purchases - sales
= 65 + 310 + 145 + 60 - 335
= 245 units
Step 3
Value the closing inventory
= 245 × $3.92
= $960.4
Value of ending inventory = $960.4
Final answer:
To find the ending inventory cost under the weighted average cost method, we first calculate the total cost of units available and then derive the weighted average cost per unit. Using this average cost, we determine the ending inventory by multiplying the remaining units by the average cost, resulting in approximately $959.40.
Explanation:
To calculate the ending inventory under the weighted average cost method, we will first determine the total cost of units available for sale and then the weighted average cost per unit. After that, we will use the weighted average cost per unit to determine the cost of the ending inventory.
Beginning inventory: 65 units x $3.40 each = $221.00Purchase 1: 310 units x $3.90 each = $1,209.00Purchase 2: 145 units x $4.00 each = $580.00Purchase 3: 60 units x $4.40 each = $264.00Total units available = 65 + 310 + 145 + 60 = 580 units
Total cost of units available = $221.00 + $1,209.00 + $580.00 + $264.00 = $2,274.00
Weighted average cost per unit = Total cost of units available / Total units available = $2,274.00 / 580 units ≈ $3.92
Units sold = 335 units
Ending inventory in units = Total units available - Units sold = 580 units - 335 units = 245 units
Ending inventory cost = Ending inventory in units x Weighted average cost per unit = 245 units x $3.92 ≈ $959.40
ABC common stock is expected to have extraordinary growth in earnings and dividends of 20% per year for 2 years, after which the growth rate will settle into a constant 6%. If the discount rate is 15% and the most recent dividend was $2.50, what should be the approximate current share price? (Hint: this is Case 3, the non-constant growth
Answer:
$37.39
Explanation:
The computation of the approximate current share price is shown below:
But for this, first we compute the current value which is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Current year dividend
For one year
= $2.5 + $2.5 × 20%
= $2.5 + 0.05
= $3
For next year
= $3 + $3 × 20%
= $3 + 0.6
= $3.60
For the third year
= $3.60 + $3.60 × 6%
= $3.60 + 0.216
= $3.816
Now the current value is
= ($3.816) ÷ (15% - 6%)
= $42.4
Now the current share price is
= $3 ÷ 1.15 + $3.6 ÷ 1.15^2 + $42.4 ÷ 1.15^2
= $2.61 + $2.72 + $32.06
= $37.39
ABC current share price is $33.21.
Here, we are going to calculate the current share priceof ABC using the information in the question.
D1 = Recent dividend * (1 + 20%)
D1 = ($2.5*1.2)
D1 = $3
D2 = Recent dividend * (1 + 20%)
D2 = ($3*1.2)
D2 = $3.6
Value after year 2 = (D2 * Growth rate) / (Discount rate - Growth rate)
Value after year 2 = ($3.6*1.06) / (0.15 - 0.06)
Value after year 2 = $42.4
Current share price = Future dividends*Present value of discounting factor (15%,time period)
Current share price = $3/1.15 + $3.6/(1.15)^2 + $42.4/(1.15)^2
Current share price = $2.61 + $2.72 + $27.88
Current share price = $33.21
Therefore, ABC current share price is $33.21.
See similar solution here
brainly.com/question/23837635
Wendy Carlson, office manager for the hospital’s ambulatory services division, was secretly happy that her half-day conference had been in the morning and not in the afternoon. Mornings is the office were so frantic and stressful that Wendy was more than happy to miss a morning once in a while. Afternoons were relatively quiet, so Wendy had hopes of getting caught up on some delinquent paperwork after returning from her outside commitment. However, when she arrived at her office after lunch, she was greeted by four angry expressions and one empty desk,
Indicating the empty desk, Wendy asked, "Where’s Sue? And why all the stone faces? What’s going on around here:"
"Sue went home," Eleanor said.
"She had to go home after Dr. Greer got through with her, " said Kay. "I think I would’ve spit in his eye and walked out for good."
Wendy asked, "What in the world happened?"
Eleanor explained, "Sue had the misfortune to make a simple appointment mistake on Dr. Greer’s schedule when he was at his busiest. He’s a bear most of the time anyway and we all know how he’s been lately with the practice running with one physician short."
Wendy said, "We obviously shouldn’t make appointment scheduling errors, but as hectic as it gets around here they’re bound to happen once in a while and there’s usually nothing serious about them."
Kay said, "You’d think they were life threatening the way he took off on her. He called her about 10 different kinds of an idiot and said he was going to have her fired for incompetence. He literally screamed at her, in front of the four of us and Dr. Wilson and at least three or four patients in the waiting room."
"No class, rotten style," Eleanor muttered. The others nodded in agreement.
"Why did Sue go home?" Wendy asked.
Eleanor answered, "Greer really leveled her and ordered her out of the office. She cried in the ladies’ room for nearly half an hour, but even after she calmed down a bit she was afraid to come back in. she just clocked out and went home."
In further discussion with her four staff members, Wendy learned that Sue had stated there was no way she could continue working where she was treated in that fashion and that Dr. Greer had announced for all to hear that she was forbidden ever to touch his appointment schedule again.
QUESTIONS:
Assume you are in Wendy Carlson’s position and describe how you would approach the discussion of the incident with Sue.
Recognizing that Dr. Greer is neither her employer nor her organizational superior, describe how you believe Wendy should approach discussion of the incident with Dr. Greer.
Outline the steps you believe Wendy should consider in addressing the problem presented by "The Bully" and in attempting to repair the apparent damage caused within her work group. Provide detailed reasons for your recommendations
Answer:
Explanation:
Wendy Carlson being the office manager of the hospital ambulatory service should ensure on no circumstances should Dr. Greer's ought to have talked or bullied sue. Because by doing so, it creates demotivation in working environment. This would also give room for incompetency of sue because of the way he was being treated by Dr. Greer's. Mr. Wendy Carson should call the two people in question and settle the matter which might have generated among them amicably and hereby cautioned Dr. Greer's for future occurrence. Aftermath, they should have a reconciliation speech with each other so as to ensure stitch free work.
Suppose a 15 to 18-year-old male from Chile was 176 cm tall from 2009 to 2010. The z-score when x = 176 cm is z = _______. This z-score tells you that x = 176 cm is ________ standard deviations to the ________ (right or left) of the mean _____ (What is the mean?)
Answer:
z = 0.96, standard deviations to the right of the mean 170 cm
Explanation:
z= [tex]\frac{176 - 170}{0.96}[/tex]
x = 176 cm is 0.96, standard deviations to the right of the mean 170 cm
Final answer:
The z-score for a height of 176 cm is approximately 0.96, indicating this height is about 0.96 standard deviations to the right of the mean height of 170 cm for 15 to 18-year-old males from Chile in 2009-2010.
Explanation:
To calculate the z-score for a 15 to 18-year-old male from Chile who was 176 cm tall in 2009-2010, we use the formula: z = (x - μ) / σ, where x is the height of the individual, μ (mu) is the mean height, and σ (sigma) is the standard deviation. Given that the mean height is 170 cm and the standard deviation is 6.28 cm, we can calculate the z-score for a height of 176 cm.
z = (176 - 170) / 6.28 = 6 / 6.28 = 0.955414Therefore, the z-score when x = 176 cm is approximately z = 0.96. This z-score tells you that x = 176 cm is about 0.96 standard deviations to the right of the mean, which is 170 cm.
Your cellular phone contract is due for renewal and the company offers you a new free phone. Since you want to use your new phone, you decide to recycle your old phone. Your action a. Creates wealth by moving the phone from lower value use to higher value use b. Destroys wealth since you lose your phone c. Creates wealth by making you feel richer d. All of the above
Answer:
creates wealth by moving the phone from lower value use to higher value use.
Explanation:
Wealth creation is maximised when an item is of greater value to the user. When the old phone is recycled, it has a higher value to the company.
The company will refurbish the phone and sell to a new user who will maximise it's use.
So this action creates wealth by prolonging the useful life of the old phone.
If the user had discarded the phone he would have destroyed wealth because the usefulness of the phone would have been wasted.
The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light bulbs decreased. This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further.
Evaluate this statement.
a. The statement is false. A decrease in the price of compact fluorescent light bulbs would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease.
b. The statement is false because compact fluorescent light bulbs producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits
c. The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluor. light bulbs fell.
d. The statement is false. a decrease in the price of compact fluor. light bulbs would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease.
Final answer:
The statement incorrectly suggests that a decrease in the price of incandescent light bulbs would further decrease their demand; however, according to basic economic principles, a decrease in price should increase demand. Instead, the decrease in demand for incandescent bulbs is due to improved CFL technology and cost-effectiveness.
Explanation:
The price of compact fluorescent light bulbs (CFLs) fell because of improvements in production technology, which led to a decrease in demand for incandescent light bulbs. The statement, however, contains a misunderstanding regarding the effect of price changes on demand. According to basic economic principles, if the price of incandescent light bulbs falls, it does not lead to a further decrease in demand for them but rather the opposite. A decrease in price typically leads to an increase in demand, assuming other factors remain constant. Therefore, the correct evaluation of the statement is: a. The statement is false. A decrease in the price of compact fluorescent light bulbs would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease.
The present value of an annuity is the sum of the discounted value of all future cash flows.
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)?
a. An annuity that pays $1, 000 at the beginning of each year.
b. An annuity that pays $1, 000 at the end of each year.
c. An annuity that pays $500 at the end of every six months.
d. An annuity that pays $500 at the beginning of every six months.
An annuity that pays $1, 000 at the beginning of each year has the greatest present value (PV).
Explanation:
The present value (PV), provided the defined rate of return, is the current value of the potential amount of cash or source. Future cash reserves are discounted at rate of return, and the lower the real value of potential cash reserves the greater the discount rate.
An annuity that pays $1,000 early in the year has the greatest present interest, since the earliest distribution of positive cash flows is expressed in the payment volume.
It would that the discounts effect on cash flows lower than the other alternatives and maximize the volume of discounted cash flows.
It offers the maximum current value by keeping the other variables stable.
The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $24,000), and, after setting up, you can produce 1,000 units of a particular design per hour (at a cost of $12,000).Does this production exhibit scale economies or scope economies?
Answer: Yes,the production exhibit the scale of Economies scale.
Explanation: VC/Q=12000/1000=$12
Answer: AC=$24,000/Q+$12
Present and Future Values for Different Periods:
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually.
1. An initial $600 compounded for 1 year at 6%.
2. An initial $600 compounded for 2 years at 6%.
3. The present value of $600 due in 1 year at a discount rate of 6%.
4. The present value of $600 due in 2 years at a discount rate of 6%.
Answer:
1. $636
2. $674.16
3. $566.04
4. $534
Explanation:
PV = FV ÷ (1 + r/n)^(t × n)........(1)
PV = present value
FV = Future value
r = rate per period
t = number of years
n = number of compounded period per year
FV = P(1 + r/n)^(t×n)...............(2)
FV = Future value
P = principal
r = rate per period
n = number compounded period per year
t = number of year
NO 1.
P= $600
t = 1
n = 1
r = 6% = 0.06
Using equation 2
FV = 600(1 + 0.06/1)^(1 × 1) = $636
NO 2
P = $600
n = 1
t = 2
r = 0.06
Using equation 2
FV = 600(1 + 0.06/1)^(2 × 1) = $674.16
NO 3.
FV = $600
r = 0.06
t = 1
n = 1
Using equation 1
PV = 600 ÷ (1 + 0.06/1)^(1 × 1) = $566.04
NO 4.
FV = $600
r = 0.06
n = 1
t = 2
Using equation 1
PV = 600 ÷ (1 + 0.06/1)^(2 × 1) = $534
Final answer:
To find the present and future values, we use compound interest and present value formulas. For the given scenarios, we can calculate the values as follows: 1) $600 compounded for 1 year at 6% has a future value of $636 and a present value of $600. 2) $600 compounded for 2 years at 6% has a future value of $678.48 and a present value of $600. 3) $600 due in 1 year at a discount rate of 6% has a present value of $566.04. 4) $600 due in 2 years at a discount rate of 6% has a present value of $532.27.
Explanation:
To find the present and future values for different periods, we can use the formulas for compound interest and present value.
For an initial $600 compounded for 1 year at 6%, the future value can be calculated as $600 * (1 + 0.06) = $636. The present value can be found by discounting the future value using the formula PV = FV / (1 + r), where r is the discount rate. So, PV = $636 / (1 + 0.06) = $600.For an initial $600 compounded for 2 years at 6%, the future value can be calculated as $600 * (1 + 0.06)^2 = $678.48. The present value can be found using the same formula as before, so PV = $678.48 / (1 + 0.06) = $600.The present value of $600 due in 1 year at a discount rate of 6% can be found directly using the formula PV = FV / (1 + r), so PV = $600 / (1 + 0.06) = $566.04.The present value of $600 due in 2 years at a discount rate of 6% can be calculated using the same formula, so PV = $600 / (1 + 0.06)^2 = $532.27.In the competitive-parity method of setting an advertising budget, the budget is set based on ________. Group of answer choices objectives set by the company and the cost required to accomplish them the amount spent by similar companies in the same industry a percentage of future sales a percentage of current sales the total revenues that a company makes
Answer:
In the competitive-parity method of setting an advertising budget, the budget is set based on competitors’ advertising activities and costs for setting advertising budget.
Explanation:
In competitive Parity Method,competition is one of the powerful factors affecting marketing strategy and performance.
This is evident during board meeting presentation by marketing and advertising strategists. The give the information gathered from research about other competitive firms budget because they know that competitive factor is given more importance in deciding advertising budget.
For instance, if their close competitors spend 4.5% of net sales on their advertising budget, the company will plan to spend, more or less.
That is the information that the budgeting committee enters on the budgeting plan for the period in view.
Here, there is a general belief that “competitors or leaders are always right.” thereby making decisions about budgeting competition driven.
This method considers the competitors’ advertising activities and costs for setting advertising budget. The advertising budget is fixed on the basis of advertising strategy adopted by the competitors.
Answer:
Explanation:
In the competitive parity method of setting an advertising budget, the organizations set the financial backing dependent on different organizations. They set their spending limit dependent on the sum spent by comparative organizations in a similar industry. This permits them to stay serious.
On January 2, 2016, Concrete Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. What is the carrying value of the bonds after the first interest payment is made on June 30, 2016
Answer:
$569.540
Explanation:
The carrying value of the bonds = face value + any premium - any discount
Face value: $500,000
Premium from selling price higher than par value = $574,540 - $500,000
= $74,540
Discount from first interest expense higher than market rate = $500,000 * (8% - 6%)/ 2 = $5,000
The carrying value = $500,000 + $74,540 - $5,000 = $569.540
Live Trap Corporation received the data below for its rodent cage production unit.
OUTPUT INPUT
50,500 cages Production time 630 labor hours Sales price: $3.40 per unit Wages $7.40 per hour
Raw materials (total cost) $31,000
Component parts (total cost) $15,450
Find the total productivity in Units Sold and Dollars of Sales per Dollar Input. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answer:
Explanation:
Total output = output cages* sales price = 50500 cages * $3.40 per unit = = $ 171,700
Total Input:
Wages = 630 labor hours * $7.40 = $4,662
Raw materials = $ 31,000
Components = $ 15,450
Total input $51,112 [Add up wages, components and raw materials]
1) Total productivity in units sold = Output in units / Input in dollars
=50500 cages/$51,112
=0.99 per dollar input
2) Total productivity in dollars= Output in dollars / Input
=$171,700/51,112 = $ 3.36 per unit input
Revenue on account amounted to $6,000. Cash collections of accounts receivable amounted to $3,800. Expenses for the period were $3,100. The company paid dividends of $950. Net income for the period was:______
a) $1,950.
b) $700.
c) $2,900.
d) $2,850.
Answer:
Net revenue= $2,900
Explanation:
Net income is defined as the net profit that a business realises during its business activities. It is revenue earned less expenses.
Revenue is the total income gained from business activities, for example returns from sales.
Expenses are the costs incurred while business is involved in activities geared at making profit. For example cost incurred for transportation of goods, cost of labour, manitainance cost, and so on.
Calculation involves adding up all revenue outflows and deducting cost incurred by the business.
Net revenue= Revenue+ Expenses
Net revenue= 6,000- 3,100
Net revenue= $2,900
Net income is calculated as total revenues minus total expenses. In this case, the net income is the revenue of $6000 minus the expenses of $3100, which equals to $2900. Hence, the correct answer is option c) $2900.
Explanation:The subject of your question is related to an aspect of financial accounting
, specifically, the calculation of net income. Net income is calculated as total revenues minus total expenses. You have provided that the revenue on account amounted to $6000, out of which actual cash collections were $3800. However, for net income calculation, we consider the total revenue earned regardless of actual cash collection, which is $6000. On the expense side, the total expenses of $3100 are provided. Paying dividends does not affect the net income because it does not represent an expense, rather it is a distribution from the income. So, the net income would be calculated as $6000 (total revenue) - $3100 (expenses) which equals to $2900. Thus, the correct answer is
option c) $2900.
Learn more about Net Income here:https://brainly.com/question/34630254
#SPJ3
Sigman Co.'s inventories in process were at the following stages of completion at April 30:
No. of Units Percent Complete
270 80
220 60
370 20
Equivalent units of production in ending inventory amounted to: _______
Answer:
422 units
Explanation:
The computation of the equivalent unit of production is as follows
No. of Units Percent Complete Equivalent units
(A) (B) (A × B)
270 80 216 units
220 60 132 units
370 20 74 units
Total
Equivalent units 422 units
If Big Rock Insurance Company charges $5000 for the policy, how much profit does the company expect to make?
Answer: $60,000
Explanation:
Competition in the craft Brewing Industry in 20171. Identify the strategic issues facing craft beer brewers in 2017. What effects may these issues have on the overall industry? 2. What recommendations would you make to a small craft brewery to improve its competitiveness in the market?
Answer:
1. Threat of new entrants to the industry and the power of suppliers are the strategic issues facing craft brewers in 2017. The threat of entry has a great effect on a companies willingness to expand its product base in fear that a new entrant will either mimic or produce a substitute for their product.
2. I would recommend that small breweries need to get out there and get their product in the minds of more customers, use social media to target their audiences and consumers. They should also invest in equipment that will reduce labor costs in the long run. Risk of supply availability can be mitigated by using multiple suppliers or becoming your own suppliers and also selling to other breweries, making another source of income.
Final answer:
Craft beer brewers in 2017 faced challenges such as intense competition and the need to stand out in a market of monopolistic competition. To enhance competitiveness, small craft breweries should focus on differentiating their product, engage in effective marketing, and build local community relationships.
Explanation:
The strategic issues facing craft beer brewers in 2017 included a high level of competition, market saturation, and the need to differentiate products in a market that tends towards monopolistic competition. The craft beer market sees differentiated products, which gives brewers some degree of price-setting power. Small craft breweries must operate efficiently and capitalize on their ability to innovate to remain competitive.
To improve competitiveness, a small craft brewery should focus on product differentiation, quality, local sourcing, and marketing. As the craft beer industry conforms to monopolistic competition, breweries have the advantage of setting prices for their unique products. They should leverage this by creating distinctive flavors and emphasizing their unique qualities. Building a strong brand and connecting with the local community can also increase customer loyalty. Given the growth potential as illustrated by the evolution of Widmer Brothers Brewing, successful small startups in this industry can grow into much larger entities.
Hence, recommendations for a craft brewery would be to focus on creating unique beer offerings, invest in local marketing strategies, and foster a strong community presence. The overall effect of strategic issues may push some breweries out of business, but those who can adapt may thrive and even merge with larger entities over time.
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:
1. Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $27,000.
2. Paid rent on office and equipment for the month, $5,050.
3. Purchased supplies on account, $1,490.
4. Paid creditor on account, $550.
5. Earned fees, receiving cash, $22,950.
6. Paid automobile expenses (including rental charge) for month, $1,400, and miscellaneous expenses, $940.
7. Paid office salaries, $2,940.
8. Determined that the cost of supplies used was $830.
9. Withdrew cash for personal use, $1,350.
Required:
1. Journalize entries for transactions Jan. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.
2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance.
3. Prepare an unadjusted trial balance as of January 31, 2019.
Determine the following:
a. Amount of total revenue recorded in the ledger.
b. Amount of total expenses recorded in the ledger.
c. Amount of net income for January.
5. Determine the increase or decrease in owner’s equity for January.
Answer:
1) JOURNAL ENTRIES
1 Debit Bank $27,000 Credit Capital $27,000
2 Debit Rent expense $5,050 Credit Bank $5,050
3 Debit Supplies Account $1,490 Credit Accounts payable $1,490
4 Debit Accounts payable $550 Credit Bank $550
5 Debit Bank $22,950 credit Service Revenue $22,950
6 Debit Debit Automobile Expenses $1,400 Debit Miscellaneous expenses $940 Credit Bank 2,340
7 Debit Office salaries $2,940 Credit Bank $2,940
8 Supplies expense $830 Credit Supplies Account $830
9 Debit Drawings $1,350 Credit Bank $1,350
2 T ACCOUNTS
Capital
01 bank $27,000
Drawings
09 Bank $1,350
Bank
01 Capital $27,000 02 Rent expense $5,050
04 Accounts payable $550
05 Service revenue $22,950 06 Automobile expense $1,400
Miscellaneous costs $940
07 Salaries expense $2,940
09 Drawings $1,350
31 Balance C/D $37,720
$49950 $49950
Accounts payable
04 Bank $550 03 Supplies Account $1,490
31 Balance c/d $940
Supplies Account
03 Account payable $1,490 08 Supplies expense $830
31 Balance c/d $660
NOMINAL Accounts section
Service Revenue
05 Bank $22,950
Rent Expense
02 Bank $5,050
Automobile Expense
06 Bank $1,400
Miscellaneous Expense
06 Bank $940
Office Salaries
07 Bank $2,940
Supplies expense
08 Supplies Account $830
3 TRIAL BALANCE Debit Credit
Balance Sheet
Capital $27,000
Drawings $1,350
Bank $37,720
Accounts Payable $940
Supplies Account $660
Nominal Section
Service Revenue $22,950
Rent expense $5,050
Automobile expense $1,400
Miscellaneous Expense $940
Office Salaries $2,940
Supplies expense $830
$50,890 $50,890
a) Total Revenue = $22,950
b) Total expense = 5050+1400+940+2940+830 = $11,160
c) Net income = 22950-11160= $11,790
5 Changes in Equity = Capital + net income - drawings
= 27000+11790-1350 = $37,440
Explanation:
Final answer:
The question involves recording and analyzing basic accounting transactions for Tri-City Realty, journalizing entries, posting to T accounts, and preparing an unadjusted trial balance while calculating key financial metrics such as total revenue, total expenses, and net income. These provide insights into the financial performance of Sharon Matthews' new business.
Explanation:
To address the student's question, we begin by assessing the impact of each transaction on Tri-City Realty's financial statements. Each transaction affects the accounts in specific ways and this is reflected in the journal entries.
Cash: Increased by $27,000 when Sharon Matthews transfers personal funds to the business account.Rent Expense: Increased by $5,050 which reduces cash.Supplies: Increased by $1,490 on account, affecting Accounts Payable.Payment to creditor reduces Accounts Payable by $550 and cash reduces as well.Service Revenue: Increased by $22,950 when earning fees, increasing cash.Automobile and Miscellaneous Expenses: Increased by $1,400 and $940, respectively, reducing cash.Salaries Expense: Increased by $2,940 which reduces cash.Use of supplies creates a Supplies Expense of $830, decreasing the Supplies account.Drawings: Increased by $1,350 reflecting withdrawal of cash for personal use, decreasing owner's equity.After journalizing, the transactions are posted to the respective T accounts to show how balances of each account change. Finally, an unadjusted trial balance as of January 31, 2019, tallies the debit and credit balances across all accounts to ensure they match - which is critical for ensuring the accounting equation (Assets = Liabilities + Owner's Equity) remains in balance.
To calculate total revenue, we sum all revenue transactions. Total expenses are the sum of all expenses transactions. The difference between revenues and expenses gives us the net income for January. The increase or decrease in owner's equity is derived by adjusting the starting owner's equity by the net income and any owner's withdrawals.
The following transactions are for Oriole Company.
1. On December 3, Oriole Company sold $492,200 of merchandise to Cullumber Co., terms 2/10, n/30. The cost of the merchandise sold was $325,100.
2. On December 8, Cullumber Co. was granted an allowance of $22,900 for merchandise purchased on December 3.
3. On December 13, Oriole Company received the balance due from Cullumber Co.
(a) Prepare the journal entries to record these transactions on the books of Oriole Company. Oriole Company uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
The three transactions of the Oriole Company involve accounting for sales, cost of goods sold, sales returns and allowances, and subsequent payment collection. Journal entries are provided for each transaction.
Explanation:The first transaction on December 3 involves a sale of merchandise. There are two journal entries required: one to record the revenue from the sale and one to record the cost of sales. The entry for sales would debit Accounts Receivable for $492,200 and credit Sales Revenue for $492,200. The cost of the goods sold would be recorded by debiting Cost of Goods Sold for $325,100 and crediting Inventory for the same amount.
The second transaction on December 8 involves granting an allowance to Cullumber Company. In this case, Oriole Company would debit Sales Returns and Allowances for $22,900 and credit Accounts Receivable for the same amount.
The final transaction on December 13 is when Oriole Company receives the balance due from Cullumber Company. In this case, Oriole would debit Cash for the balance amount ($492,200 - $22,900) and credit Accounts Receivable for the same amount.
Learn more about Journal entries here:https://brainly.com/question/33762471
#SPJ12
Gerritt wants to buy a car that costs $30,000. The interest rate on his loan is 5.59 percent compounded monthly and the loan is for 7 years. What are his monthly payments
Answer:
Using the formula to calculate the monthly payment: (rate*Present Value) /(1-(1+rate)^(-period). You can use excel to do the calculations with the function: PMT(rate;period;present value)
The amount will be US$ 1,694.57.
To do the calculation you have to remind that the rate must be in the same period, that means that if the interest is in a monthly period the period must be monthly too. In this case the period have to be 84 months (which is 7 years).
Final answer:
To determine Gerritt's monthly car loan payments for a $30,000 loan at 5.59% interest compounded monthly over 7 years, we use the loan payment formula incorporating the principal amount, the monthly interest rate, and the total number of payments.
Explanation:
Gerritt is looking to buy a car that costs $30,000 with an interest rate of 5.59 percent compounded monthly over a period of 7 years. To calculate his monthly payments, we use the formula for the monthly payment (M) on an amortizing loan, which is given by:
[tex]M = P * [i(1+i)^n] / [(1+i)^n - 1][/tex]Where:
P is the principal amount ($30,000)i is the monthly interest rate (annual rate/12)n is the total number of payments (loan term in years * 12)In this case, i = 5.59% / 12 months = 0.0046575, and n = 7 * 12 = 84 months.Substituting these values into the formula will provide Gerritt's monthly payment. It is important to note that the formula encapsulates the compound interest rate feature and provides an equal monthly payment schedule over the specified period.