A company with a higher contribution margin ratio is either more or less sensitive to changes in sales revenue, depending on other factors. likely to have a lower breakeven point. less sensitive to changes in sales revenue. more sensitive to changes in sales revenue.

Answer:

0.75

Explanation:

Marginal Propensity to Consume (MPC) is the change in consumption due to change in income

Change in consumption = $7,250 - $6,500 = $750

Change in income = $11,000 - $10,000 = $1,000

MPC = Change in consumption / Change in income

MPC = 750 / 100

MPC = 0.75

Answer: See explanation

Explanation:

a. 1 jan 2020

Debit Cash $10,900

Credit Unearned revenue $10,900

31st dec 2020

Debit Unearned revenue $10,900

Credit Service revenue $10,900

1 jan 2020

Debit Cash $10,900

Credit Unearned revenue $10,900

31st dec 2020

Debit Unearned revenue $10,900

Credit Service revenue $10,900

b. 1 Jan 2021

Debit Cash $30500

Credit Unearned revenue $30500

31st dec 2020

Debit Unearned revenue $7,625

Credit Service revenue $7,625 ($30500/4)

c. 1 Jan 2020

Debit Cash $30500

Credit Unearned revenue $30500

31st Dec 2020

Debit Unearned revenue $8,700

Credit Service revenue $8,700

Answer: b. Total expenditures will increase

Explanation:

Medical insurance reduces the amount that people have to pay to get health related services. Ugandans from the year 1960 can be expected to pay less for medical services as a result.

If people are able to pay less for a good or service, the normal thing that they would do would be to demand more of that good and service because it is more affordable. Total expenditure in the medical field will increase as a result.

Answer:

A. Mary produces only cakes while Tim produces only pies

Explanation:

I will start by describing the concept called comparative advantage. Comparative advantage can be described as a businesses ability to produce at a reduced or lower opportunity cost than others. Given this definition, we can see that Mary's opportunity cost of producing cakes is lower than Tims opportunity cost. So Mary has an advantage over Tim in the production of cakes. So the answer to this question is A. Mary should specialize in the making of cakes while Tim should specalize in pie making

Answer:

A. 0.9x + 0.3y ≤ 10,000

Explanation:

Given

[tex]x \to[/tex] oil based plant

[tex]y \to[/tex] water based plant

The data can be represented in tabular form as:

[tex]\begin{array}{ccc}{} & {A} & {B} & {x} & {90\%} & {10\%} & {y} & {30\%} & {70\%} & {} & {10000} & {5000}\ \end{array}[/tex]

Considering only A, we have the following constraints:

[tex]A \to 90\% * x + 30\% * y[/tex]

[tex]A \to 0.9x + 0.3y[/tex]

Since the company currently has 10000 of A.

The above constraint implies that, the mixture cannot exceed 10000.

So, we have:

[tex]A \to 0.9x + 0.3y \le 10000[/tex]

Hence, (A) is correct

Answer:

Kindly check explanation

Explanation:

White and blue collar jobs are usually differentiated in terms of the job setting or environment in which each group of job is undertaken. The white collar jobs are job categories whereby staffs often work in offices such that most of the duties performed are on computers or writing. This may include ; banking, clerical and administrative jobs and other related job fields.

Blue collar jobs in the other hand could be described as being less formal as it Involves most of the business or trade related job types whereby individuals could be seen undergoing laborious jobs. This jobs may be skilled or unskilled and the job types include cost uctjoj workers, artisans, mechanics, electctricians and so on.

Blue collar jobs cannot keep the sort of tidy outlook white collar job do keep due to the nature of their work. Hence, this palys a role in the name given as blue clothes are often more accommodation of dirt or stain than white garments.

Answer:

The answer is "116 doorknobs".

Explanation:

The standard deviation of the demand before the (four weeks) protection intervals = [tex]\sigma-d \times (\sqrt{L}) = 100 \ units\\[/tex]

The desired cycle service level is [tex]99\%[/tex].Therefore, [tex]z = 2.33[/tex]

The safety stocks for the four-weeks protecting interval are:

Safety stock [tex]= z\times [ \sigma-d \times (\sqrt{L})][/tex]

                     [tex]= 2.33 \times 100 \\\\= 233\ door\ knobs[/tex]

The safety stocks require for the one-week protection interval are: [tex]\sigma-dLT = \sigma-dt \times (\sqrt{L}) = \sigma-dt \times (\sqrt{4}) = 100\ door\ knobs\\\\\sigma-d = \frac{100}{(\sqrt{4})} = \frac{100}{2} = 50 \ door\ knobs\\\\[/tex]

Safety stock [tex]= z\times \sigma-dt = 2.33 \times 50 = 116.5 \ or\ 117 \ door\ knobs\\\\[/tex]

Safety stock reduction[tex]= 233 -117 = 116 \ door\ knobs[/tex]

Answer and Explanation:

the computation of the net income for the april month is as follows;

= Service fees - rent expense

= $3,113 - $813

= $2,300

Now the preparation of the owner equity is as follows;

Jay Pembroke, Capital $18,155

Net income $2,300

Less; Jay Pembroke, Drawing $145

Jay Pembroke, Capital ending capital $20,310

We assume that the capital is given for the beginning of the month

Answer:

1800

Explanation:

Answer:

total expenditures equal total production.

Explanation:

In the case when the economy is in the short-run equilibrium that means the total expenditures should be equivalent to the total production. In other words, we can say that the expenditure that can be incurred should be equal to the production

Hence, the last option is correct

Answer:

increase; decrease; decrease; decrease.

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Basically, trade can be categorized into two (2) main groups and these are;

I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.

II. Export: it involves the sales of goods produced in a domestic country to a foreign country.

An export subsidy can be defined as any government policy that encourages the export of goods to other countries while discouraging the sales of goods in the domestic market through the use of tax reliefs, low cost loans, government foreign adverts, etc.

A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.

Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Hence, an export subsidy will increase producer surplus, decrease consumer surplus, decrease government revenue, and decrease overall domestic national welfare.

Answer:

Calendar-Year Firm

The firm’s maximum 2012 deduction for depreciation is:

= $917.

Explanation:

a) Data and Calculations:

Purchase of a used computer server on May 11, 2012 = $6,000

Since the server is a used one, we assume a four-year useful life

Salvage value = $500

Assumed useful life = 4 years

Depreciable amount = $5,500 ($6,000 - $500)

Since the firm does not take the Section 179 Deduction, which would have allowed it to expense the whole depreciable amount this 2012, the depreciation expense for the first year is calculated as follows:

Annual depreciation expense, using the straight-line method = $1,375

For 2012, the firm's maximum deduction for depreciation will be:

= $917 ($1,375 * 8/12) (covering the months from May 11 to December 31)

Answer:

1.05

Explanation:

Beta measures systematic risk. Systemic risk are risk that are inherent in the economy. They cannot be diversified away.  

The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio

weighted beta of a stock = percentage of the stock in the portfolio x beta of the stock  

total value of the portfolio =  $30,000 +  $70,000 =  $100,000

percentage of stock A in the portfolio = $30,000 / $100,000 = 0.30

percentage of stock B in the portfolio = $70,000 / $100,000 = 0.70

weighted beta of stock A = 0.30 x 0.7 = 0.21

weighted beta of stock B = 0.70 x 1.2 = 0.84

Portfolio beta = 0.21 + 0.84 = 1.05

Answer:

The answer is "Slide Master View"

Explanation:

Slide Master Look is indeed the name of this feature. This can help you keep track of all the presentations you've created and change those ones that require work or even more information. The additional feature is the ability to change the presentation's actual picture, as it may be extended to all slides. Slide master view also allows you to change the text format & placeholders.

Answer:

Promissory agreement.

Explanation:

A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.

Thus, when goods are sold to a customer by a business entity and the customer promises to pay an amount of money at a certain future time period it is known as a promissory agreement.

A promissory note can be defined as a signed document that contains a written promise by a customer to pay a specific amount of money to an individual or business firm, on demand or at a certain future time period, for the goods or services purchased.

Answer:

a) attached below

b) Wheat production

c) Yes there is a possible trade that benefits both countries

d) attached below

Explanation:

Opportunity cost can be expressed as

= Value/cost of alternative / value/cost of chosen alternative

a) Draw each country's production possibility curve

attached below

b) United state have a comparative advantage in Wheat production because of lower opportunity cost

c) The possible trade that would benefit both countries is when  both countries trade on goods that they have lower comparative opportunity cost

i.e. Japan producing just Bolt cloths while United states produce Wheat alone

d) combined production possibility curve

attached below

Answer:

Following are the responses to the given question:

Explanation:

Statement In December the computation of typical spoiling units shall be shown:

Particulars                                   Units

WIP Inventory Start on 12 January 2019      22,500

Departments began in December             76,700

Total stock available for both the month     99,200

Less: transferred units on 31 December 2019       72,500

Inventory of Less: WIP on 31 December 2019        18,400

Inventory of Balance (Normal Spoilage units)        8,300

Answer:

Wolfe Company

The amount of:

                                      LIFO         FIFO    Weighted Average

Ending inventory      $50,500    $65,100        $58,005

Cost of goods sold  $113,200   $98,600       $105,698

Explanation:

a) Data and Calculations:

Date Transaction             Number of units   Unit Cost   Cost Value

1/1     Beginning inventory             2,000        $22.00    $44,000

4/12  Purchase No. 1                      2,300        $26.00      59,800

7/11   Purchase No. 2                        800        $28.00      22,400

10/5 Purchase No. 3                      1,250        $30.00      37,500

Total inventory available              6,350                       $163,700

Wolfe sold                                      4,100

Ending Inventory                          2,250

LIFO

Ending Inventory = $50,500 (250 * $26 + 2,000 * $22)

Cost of goods sold:

4/12  Purchase No. 1                      2,050        $26.00      53,300

7/11   Purchase No. 2                        800        $28.00      22,400

10/5 Purchase No. 3                      1,250        $30.00      37,500

Total cost of goods sold =            4,100                        $113,200

FIFO:

Ending Inventory = Cost of goods available for sale - Cost of goods sold

= $65,100 ($163,700 - $98,600)

Cost of goods sold:

1/1     Beginning inventory             2,000        $22.00    $44,000

4/12  Purchase No. 1                      2,100        $26.00        54,600

Total cost of goods sold = $98,600

Weighted average:

Weighted average cost = $25.78 ($163,700/6,350)

Ending inventory = $58,005 (2,250 * $25.78)

Cost of goods sold = $105,698 (4,100 * $25.78)

Answer:

Hence the correct option is Option C. Low interest rates.

Explanation:  

Low interest rates:-

Because the real GDP is lower than the potential GDP at the full employment level (Overcapacity). Internet based start ups and stock market are collapsing (The dot com bubble).

Answer:

the current yield on the stock is 3.42%

Explanation:

the computation of the current yield on the stock is shown below:

Current yield = Annual dividends paid ÷ Current market closing price

= ($0.27 + $0.15) ÷  $12.27

= $0.42 ÷ $12.27

= 3.42%

hence, the current yield on the stock is 3.42%

we simply applied the above formula to determine the current yield on the stock

Answer:

It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.

Explanation:

This question is taken from a book titled "The Marvel Way: Restoring a Blue Ocean". It was written by W. Chan Kim, Renee Mauborgne, Michael Olenick. The central theme of the book was about one of the greatest turnarounds in modern business history by the then Marvel CEO with the name Peter Cuneo who was responsible for turning the business around and succeeded in launching a blue ocean.

From the question, neither predicts nor explains the outcome because;

It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.

Answer:

that most likely occurred before the date of the financial statements

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).

Basically, financial statements are formally written records of the business and financial activities of a business entity or organization. The four (4) main types of financial statements are; cash-flow statement, balance sheet, statement of changes in equity and income statement.

Furthermore, there are two (2) main methods used in financial accounting for analyzing financial statements and these are;

I. Vertical analysis.

II. Horizontal analysis.

A Type I subsequent event refers to an event that most likely occurred before the date of the financial statements. Thus, it must have been reported or posted before the date of publishing a financial statement.

On the other hand, any event that is most likely to occur after the date a financial statement is issued, is referred to as a Type II subsequent.

Answer:

Aurillo Equipment Company (AEC)

If AEC refinances its high interest bonds, its projected new ROE will be:

= 15.6%

Explanation:

a) Data and Calculations:

Total debt = $200,000

Debt ratio = 80%

Total assets = $250,000 ($200,000/80%)

Equity = $50,000 ($250,000 - $200,000)

Old interest rate on old debt = 14%

New interest rate on refinanced debt = 10%

Total interest = $20,000 ($200,000 * 10%)

Sales revenue = $300,000

EBIT =        $33,000

Interest       20,000

Before tax $13,000

Tax =             5,200 (40% of $13,000)

Net income $7,800

ROE = Net income/Equity * 100

= ($7,800/$50,000 * 100)

= 15.6%

Answer:

integrated Marketing communication

Explanation:

This method is used by firms and companies to brand their communications and also in their coordination. It makes sure that all the various forms of communications are well linked together. This would create a unified communication channel for the consumer during their interactions with the enterprise. the aspects it integrates includes, advertising, public relations, social media and promotion of sales.

Answer:

1. Ex-ante real interest rate is:

= 4%

2. Ex-post real interest rate is:

= 5%

3. The LENDER benefits from lower actual inflation.  By this, the Ex-ante real interest rate is lower than the Ex-post real interest rate at which the borrower will repay the loan.

Explanation:

a) Data and Calculations:

Nominal interest = 6%

Expected inflation = 2%

Actual inflation = 1%

Ex-ante real interest rate = 4% (6% - 2%)

Ex-post real interest rate = 5% (6% - 1%)

b) The implication is that inflation is lower than expected, and this benefits the lender at the expense of the borrower.  The opposite is applicable when the inflation is higher than expected, and the result benefits the borrower at the expense of the lender.

Answer:

Amount from sale of bonds  $275,028

Explanation:

The computation is shown below;

Particulars      Amount        PV factor       Present value of cash flows

Interest            $11,821.50   9.38507        $1,10,946

            ($262,700 × 0.09 × 6 ÷ 12)

Principal          $262,700   0.6246         $164,082

Amount from sale of bonds                    $275,028

Answer:

The expected return of the portfolio is:

= C. 10%

Explanation:

a) Data and Calculations:

Expected return of Stock A = 8%

Expected return of Stock B = 2%

Return of Treasury = 4%

Cost of Stock A = $200

Sale of Stock B = $100

Investment in Treasury Bills = $100

                          Stock A      Stock B      Treasury Bills   Portfolio

Expected return    8%             2%

Weight of stock  0.667         0.333

Return                 0.0534       0.0067           0.04            0.1001

Portfolio return = 10%

Answer:

A. True

Explanation:

A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Basically, financial statements are formally written records of the business and financial activities of a business entity or organization.

There are four (4) main types of financial statements and these are;

1. Cash flow statement: it contains financial information about operating, financial and investing activities.

2. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.

3. Income statement: it contains financial information about the income and expenses of an organization.

An income statement comprises of the financial information about the income and expenses of an organization over a specific period of time.

4. Balance sheet: it contains financial information about assets, liability, and equity.

Furthermore, the amount of a cash dividend liability is expected to be recorded on the particular date of record because it is this date that identify the persons or entities who receives the dividend.

Answer:

b. All companies, regardless of the strategy being employed, should pursue actions to manage employee compensation and labor productivity in a manner that results in labor costs per pair produced that are equal to (or very close to) the industry-low in each region where the company has plants.

Explanation:

The less labor cost of production per pair could be attained in following two ways

1. The productivity level is icnreased

2. The compensation should be managed and it provides the combination of both fixed and variable. Also it pays the high compensation but at the more productivity rate due to which the labor cost per pair would fall

So as per the given situation, the option b is correct

Answer and Explanation:

The journal entry is given below:

Factory overhead Dr $550

      To Raw material inventory $550

(being the actual indirect material cost is recorded)

Here the factory overhead is debited as it increased the expense while the raw material inventory is credited as it decreased the assets