A benevolent social planner would prefer that the output of good x be decreased from its current level if, at the current level of output of good x_________
a. social cost = private cost = private value < social value.
b. private cost < social cost = private value = social value.
c. social value = private value = private cost < social cost.
d. social cost = private cost = private value = social value.

Answer:

365.15 units

Explanation:

The computation of the economic order quantity is shown below:

[tex]= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]

where,

Annual demand is

= 30 units × 300 days

= 90,000 units

ordering cost is $50

Carrying cost is

= $45 × 15%

= $6.75

Now placing these values to the above formula

So, the economic order quantity is

[tex]= \sqrt{\frac{2\times \text{90,000}\times \text{\$50}}{\text{\$6.75}}}[/tex]

= 365.15 units

We simply applied the above formula so that the EOQ could come

Answer and Explanation:

1. Return on investment is

= Operating Income ÷ Average invested Assets

here, average invested assets is

= (Invested assets, beginning + Invested assets, ending) ÷ 2

For Beverage Division

= $349 ÷ (($2,662 + $2,593) ÷ 2)

= $349 ÷ $2,628

= 13.28%

For Cheese Division

= $634 ÷ (($4,455 + $4,400) ÷ 2)

= $634 ÷ $4,428

= 14.32%

2. Profit margin = (Operating income ÷ sales) × 100

For Beverage Division

= ($349 ÷ $2,681) × 100

= 13.02%

For Cheese Division

= ($634 ÷ $3,925) × 100

= 16.15%

3. Investment turnover = Sales ÷ Average Operating Assets

For Beverage Division

= $2,681 ÷ (($2,662 + $2,593) ÷ 2)

= $2,681 ÷ $2,628

= 1.02 times

For Cheese Division, it would be

= $3,925 ÷ (($4,455 + $4,400) ÷ 2)

= $3,925 ÷ $4,428

= 0.89 times

Answer:

        Cost                                                                 Classification

Direct materials                                                       Value added

Direct labor                                                              Value added

Material handling costs                                           Non-value added

Product inspection and rework                              Non-value added

Materials purchasing and inspection                     Value added

Routine maintenance and equipment                    Non-value added

servicing

Repair of equipment                                                Non-value added

Answer:

If output rises to 57,000 units, what will the percentage change in operating cash flow be?

What is the operating cash flow at 46,000 units?

The degree of operating leverage (at 46,000 units)?

Explanation:

degree of operating leverage = [quantity x (price - variable costs)] / {[quantity x (price - variable costs)] - fixed costs}

degree of operating leverage x {[quantity x (price - variable costs)] - fixed costs} = [quantity x (price - variable costs)]

3.21 x {[53000 x (contribution margin)] - fixed costs} = [53000 x (contribution margin)]

(3.21 x 53000 x contribution margin) - (3.21 x 175000) = 53000 x contribution margin

let C = contribution margin

170130C - 561750 = 53000C

117130C = 561750

C = 561750 / 117130 = 4.795953

operating cash flow (at 53,000) = (53,000 x $4.795953) - $175,000 = $79,185.52

operating cash flow (at 57,000) = (57,000 x $4.795953) - $175,000 = $98,369.32

% change = ($98,369.32 - $79,185.52) / $79,185.52 = 24.23%

operating cash flow (at 46,000) = (46,000 x $4.795953) - $175,000 = $45,613.84

% change in operating cash flows = ($45,613.84 - $79,185.52) / $79,185.52 = -43.4%

% change in sales = (46,000 - 53,000) / 53,000 = -13.21

degree of operating leverage = $220,613.84 / $45,613.74 = 4.84

Answer:

b. $866

Explanation:

Annual demand from the question = D = $500

the ordering cost = S = $200

then the cost of carrying H = $15

we have to calculate the economic order quantity

= sqr(2*D*S)/H

= sqr(2 x 500 x 200)/25

= sqr(13333.3333)

this equals 115.469

which is approximately 115.5

next we have to calculate inventory ordering cost

= (D * S)/EOQ

= 200 *500/115.5

= 865.5

When approximated becomes $866

The inventory ordering cost using the economic order quantity is: B. $866.

First step is to calculate the Economic order quantity

Economic order quantity =√(2×D×S)/H

Where:

D=Annual demand=$500

S=Ordering cost=$200

H=Holding cost =$15

Let plug in the formula

Economic order quantity =(2 x 500 x 200)/15

Economic order quantity =√200,000/15

Economic order quantity =√13333.3333

Economic order quantity =115.46

Economic order quantity = 115.5 (Approximately)

Second step is to calculate the inventory ordering cost using this formula

Inventory ordering cost= (Annual demand× Ordering cost )/Economic order quantity  

Let plug in the formula

Inventory ordering cost= (200×500)/115.5

Inventory ordering cost=100,000/115.5

Inventory ordering cost=$865.8

Inventory ordering cost=$866 (Approximately)

Inconclusion the inventory ordering cost using the economic order quantity is: B. $866.

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Answer: 8%

Explanation:

The load fee would be the excess percentage amount charged on the share over the Net Asset Value per share.

= [tex]\frac{Trading price per share - Net Asset Value per share}{ Net Asset Value per share}[/tex]

Net Asset value Per share = (Assets - Liabilities) / Number of shares

= (147 - 7) / 7

= $20

Load fee

= [tex]\frac{Trading price per share - Net Asset Value per share}{ Net Asset Value per share}[/tex]

= [tex]\frac{21.60 - 20}{20}[/tex]

= 8%

Answer:

The risk premium on market is 8%

Explanation:

The CAPM or Capital Asset Pricing Model is used to calculate the required rate of return on a stock which is the minimum return that is expected or required by the investors to invest in a stock based on its systematic risk as measured by the beta of the stock.

The formula to calculate r under the CAPM is,

r = rRF + Beta * rpM

Where,

To calculate the risk premium on market, we will input the available values for r, rRF and beta in the equation above.

0.158 = 0.07 + 1.1 * rpM

0.158 - 0.07 = 1.1 * rpM

0.088 / 1.1 = rpM

rpM = 0.08 or 8%

So, the risk premium on market is 8%

Answer: $1.98

Explanation:

Equivalent Units of Production are used when the manufacturers have not completely finished their products for the year. This helps them express it in terms of fully manufactured units.

Using the weighted average method, the cost per equivalent unit is;

= [tex]\frac{Beginning inventory cost + Cost of current production}{Equivalent units of production}[/tex]

= [tex]\frac{478,000 + 1,047,500}{770,000}[/tex]

= $1.98

Answer:

Ritz Carlton is luxury hotel chain of America. The company has 101 luxury hotel in more than 30 countries of the world. The success of Ritz Carlton is mainly because they keep the comfort of their guests as their highest priority. Their mission statement clearly states that comfort and genuine care of their guests is utmost important to them.

Explanation:

Their business model focuses entirely on their customers. Ritz Carlton has created its leading brand by providing great ambiance to the visitors and its guest. One can dream of staying at such luxury hotel. They are famous for their hospitality of their guests. The hotel management believes on total quality management. It has set highest standard for themselves and strive to meet them by providing better and better service to its guests.

Answer:

C) Sales Tax

Explanation:

The Government-wide Statement of Activities shows the revenues and expenses of the government and the general revenues indicate all the taxes, aid received from other governments and earnings from investments. According to that, the answer is that the option that is considered a source of general revenue in the Government-wide Statement of Activities is sales tax.

Answer:

risk premium increases by more of the low - beta stock

A risk averse investor is an investor that avoids risk. if risk aversion increases, it means that the investor is more wary of risky investment.

Beta measures the volatility of a portfolio. the higher the volatility, the more risky the portfolio is.

risk premium measures the rate of return in excess of the risk free rate.

According to CAPM :

risk free rate + (beta x stock risk premium)

Beta is a multiplier of stock risk premium, so the higher the beta, the more there would be an increase in the stock risk premium

If a risk averse investor invests in a high beta stock, he would want extra or higher compensation for holding such a volatile stock. this extra compensation would be in the form of a higher risk premium.

Explanation:

Answer: a) purchasing $18,000 (000) worth of plant and equipment

Explanation:

Of the 4 options listed, liquidating the new inventory would lead to a cash inflow and so is not going to lead to an emergency loan.

Retiring the oldest bond is something that would probably have been budgeted for so it will be less probable to cause Chester to seek emergency funding.

The activity that poses the greatest threat to Chester in terms of loan solicitation would be the purchase of plant and equipment. This would have less chance of being budgeted for and is a significant amount to leave the company which is even larger than the company's current cash amount. It has a higher chance of causing Chester to seek emergency loan funding.

Answer:

The present value of the perpetuity is $12,242.27.

Explanation:

A perpetuity is an annuity that provide cash flow for an infinite period .Examples are Non -redeemable Preference Share.

Present Value (perpetuity) = Payments ÷ Required Rate

But, first change the 7.50 % nominal rate to Annual Effective Rate to match the period of Cash flow.

Effective Rate = (1 + r / m)^m - 1

                       = ( 1 + 0.0750 / 12) ^12 -1

                       = 7.76%

Therefore, Present Value (perpetuity) = $950 ÷  7.76%

                                                              = $12,242.27

At the certain interest rate, present value (PV) is the current value of a future sum of money or stream of cash flows.

The discount rate determines the present value of the cash flows, and the higher the discount rate, the lower the current value of future cash flows.

The present value of the perpetuity is $12,242.27.

A perpetuity is an annuity that payments out during an indefinite period of time. Non-redeemable Preference Share is an example.

Present Value (perpetuity) = [tex]\frac{\text{Payments}}{\text{Required Rate}}[/tex]

However, to match the Working capital period, change a 7.50 percent nominal rate to a Yearly Effective Tax rate.

[tex]\text{Effective Rate} = (1 + \frac{r}{m} )^m - 1= [1 + \frac{0.0750}{12}]^{12} -1= 7.76\%[/tex]

Therefore, Present Value (perpetuity)= [tex]\frac{\$950}{7.76\%} = $12,242.27[/tex]

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Answer:

false

Explanation:

while open space arrangement increases communication, it also increases noise, distractions, and loss of privacy.

Answer:

b. False

Explanation:

Although open space arrangement in a workstation increases communication , yet such communication would eventually lead to an increase noise, distractions and loss of privacy. This is the reason why modern organizations preferred the use of cubicle in demarcating spaces allocated to their employees.

The advantage of using cubicle as demarcation is that there will be less noise and distractions hence leads to increase in productivity . An employee would also have his or her privacy unlike an open space arrangement.

Answer: c. shut down because it would cost more to produce and sell output than it would to shut down and lose all fixed costs.

Explanation:

The profit maximizing, monopolistically competitive firm maximises profit at the point where marginal revenue equals marginal costs.

If this point is below Average variable costs then that means that the company is not making enough to cover its variable costs. Should this be the case then the company should shutdown operations because variable costs are only there when the company is producing. If they shutdown then they will no longer incur them which would be the cheaper option.

They would take losses on the fixed costs but these have already been incurred so it would be better to lose the fixed costs than continue to make losses on variable costs.

Answer:

PV= $45,879.68

Explanation:

Giving the following information:

Cash flow= $4,000 annually

n= 20

i= 6% compunded annually

The maximum that an investor should pay is the present value (PV).

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {4,000*[(1.06^20) - 1]} / 0.06

FV= $147,142.36

Now, we can calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

PV= 147,142.36/(1.06^20)

PV= $45,879.68

Answer:

Cullumber Company

Journal Entry:

Debit Loss on Goodwill Impairment $34,200

Credit Goodwill $34,200

To record the loss on goodwill impairment.

Explanation:

a) Data and Calculation:

Fair value = $820,800

Carrying value of net identifiable assets, including goodwill = $855,000

Goodwill impairment = $34,200 ($855,000 - $820,800)

b) Cullumber, which acquired Blossom is expected to check for the impairment of goodwill yearly.  The impairment occurs when the carrying value of the net identifiable assets of Blossom is more than the fair value of Blossom.  Generally Accepted Accounting Standards require the annual review of the fair value of goodwill to check for its impairment.  By the above entry, the goodwill will be reduced by $34,200 and a loss debited in Cullumber's accounts.

Answer: B. ask

Explanation:

The ask also known as the offer price is the price at which seller is willing to sell a security after which the buyer must have stated a bid price of how much he or she wants to pay for the security.  The bid price is known to be always lower than the ask price , of which the difference between both prices is called a bid-ask spread.

For example, if an investor wants to buy a security, he or she  will first determine  how much the seller  is willing to sell it for, which is the  ask price--- least price the seller  is willing to sell the security for. However on the other hand, the seller in order to sell his or her security will first determine the highest price at which a buyer would be willing to pay for the  security.

Answer: $293,350

Explanation:

The carrying value of the bonds immediately after the first interest payment will be the addition of the received proceed and the ammortized discount. This will be:

= $293,000 + $350

= $293,350

Note that the ammortized discount was calculated as:

= ($300000 - $293000)/20

= $7000/20

= $350

Answer:

They could be a Member-managed Limited Liability Company or a Manager-managed Limited Liability Company.

Explanation:

A Limited Liability Company is usually run by two or more partners. In managing this type of company, the members might choose to manage the company themselves. This is known as a member-managed Limited Liability Company. In such cases, if any member makes a decision in behalf of the business, with his signature appended to it, such a decision is considered legally binding on all other members of the company. Every member also has a say in the company's decision-making.

If they choose to be a manager-managed Limited Liability Company, they can appoint one or more non-members to manage the company for them. They do not interfere with how the manager chooses to run the company. They can still make important decisions but this is quite limited. However, they can choose to remove the manager/managers as they will.

Answer:

True

Explanation:

Team can be defined as way in which group of people or individuals come together in one accord in order to carryout a task or an assignment for the purpose of achieving their aim,goals or objectives, which is why working together as a team either in a company or an organisation is vital and paramount because it help to create unity among employees and to enable the employees to interact and effectively coordinate their work activities with one another which will lead to the growth and success of the organisation or company.

Answer:

d) will become an importer of tomatoes.

Explanation:

Consumer surplus would increase because the price at which they buy tomatoes would reduce while producer surplus would reduce because the price of tomatoes would reduce as a result of international trade.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.Because the price of tomatoes in the US is greater than the price of tomatoes in the world, when the US begins international trade, it would import tomatoes because it is inefficient in the production of tomatoes.  

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Full question reads;

The issue of _____ concerns how often a particular project will be repeated and what its lifespan will be.

 a.     frequency

b.    consumption

c.     pressures

d.    rules

Answer:

a.     frequency

Explanation:

Indeed, no particular human project can last forever, so there is a need to ascertain the frequency of a project, detailing how often the project would be repeated so as to also determine what the project's lifespan will be.

For example, a road construction project may take into account how often the road would be used, which provides insight into the frequency of road repairs and the overall lifetime of the car.

The issue of _____ concerns how often a particular project will be repeated and what its lifespan will be.

Answer: True

Explanation:

The quality improvement teams are groups of employees that are from various departments who come together and meet regularly in order to define, analyze, and then solve common production problems.

The aim of the quality improvement team is to improve the production process. This is achievable by them working on their methods.

Answer:

9,400 shares

Explanation:

Treasury stock is the difference between issued shares and outstanding shares.

Number of treasure shares = Number of issued shares - Number of outstanding shares

Number of treasure shares = 10,500 - 1,100

Number of treasure shares = 9,400 shares

Therefore, number of treasury shares is 9,400

Answer:

A

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

Because the IRR of both projects are positive, both projects are acceptable.

If the manager can only choose one project, she should choose the one with the higher IRR because it would be more profitable.

Answer:

$1 = 500 Pesos

1 Pesos = $0.002

Explanation:

$125 = 62,500 Pesos

$1 = 62,500 / 125

$1 = 500 Pesos

$1 = 500 Pesos

1 Pesos = $1 / 500

1 Pesos = $0.002

Answer:

b

Explanation: