Answer:
a. Product A1
Explanation:
Calculation to determine Which product(s) should be sold at split-off to maximize profits in the short run
Product A1
Additional Revenues=Sales Value-Sales value at split-Off
Additional Revenues=$15,000-$10,000
Additional Revenues=$5,000
Difference=Additional Revenues -Additional Costs
Difference=$5,000-$2,500
Difference=$2,500
Product A1 Additional Revenues Additional Costs Difference
$5,000 $2500 $2,500
Therefore the product that should be sold at split-off to maximize profits in the short run is Product A1 Which therefore means that company should sell now
The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: Raw Materials Work in Process Credit Credit Debit Beginning Balance Debit Beginning Balance 9,000 22,200 5,000 5,200 4,100 6,200 8,500 8,300 Finished Goods Manufacturing Overhead Credit Debit Credit Debit Beginning Balance 20,400 8,300 2,200 22,200 2,800 3,500 3,200 Cost of Goods Sold Debit Wages & Salaries Payable Credit 20,400 Beginning Balance Debit Credit 20,400 2,500 12,000
The direct labor cost was:
a. $20,400
b. $13.100
Answer:
$8,500
Explanation:
The computation of the direct labor cost is given below
The raw material issued should be
= 6,200 + 2,800
= 9,000
The manufacturing overhead applied is 8,300
So, here the amount should be from both work in process and manufacturing overhead
Therefore the remaining amount i.e. $8,500 should be the direct labor cost
MotorCity, Inc. purchased 52,000 shares of Shaw common stock for $256,000. This represents 40% of the outstanding stock. The entry to record the transaction includes a:
Answer:
Debit to Long-Term Investments for $256,000
Explanation:
In the case when the shares are purchased they are considered for an investment that could generate the profit in near future. So here the long term assets is to be classified as the asset and the same is to be debited
Therefore it should be debited to the long term investment for $256,000
The same is relevant
A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity rises to 6.7 percent from the current rate of 5.5 percent
Answer: -10.14%
Explanation:
Original Price of bond:
Interest is paid semiannually so some variables need to be adjusted:
Period = 13 * 2= 26 semi annual periods
Coupon = 6% * 1,000 * 0.5 = $30 per period
Yield = 5.5% / 2 = 2.75%
Price = $1,046
Price after yield increases to 6.7%
Period = 13 * 2= 26 semi annual periods
Coupon = 6% * 1,000 * 0.5 = $30 per period
Yield = 6.7% / 2 = 3.35%
Price = $939.88
Percentage change = (939.88 - 1,046) / 1,046
= -10.14%
A customer sells short 1,000 shares of DT at $60 a share on Monday, October 14 and deposits the Regulation T margin requirement. If on October 23 the stock is trading at $75 a share. What would be TRUE about the customer selling?
Solution :
Adjusted Oct 23rd
Maintenance call will be issued, i.e. ,
$ 75k x 0.3 = 22.5 k
Equity only = 15k
Therefore, the account will be adjusted on October 23rd and the margin maintenance call will be issued.
Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below:
Per Unit
Selling price $1.50
Direct materials $26
Direct labor $3
Variable manufacturing overhead $1
Fixed manufacturing overhead $17
Variable selling expense $2
Fixed selling and administrative expense $18
The above per unit data are based on annual production of 3,000 units of the component. Assume that direct labor is a variable cost. The company has received a special, one-time-only order for 200 units of component S06. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. If XYZ has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit below which the company should not accept the special order?
a. $67 per unit
b. $150 per unit
c. $30 per unit
d. $47 per unit
Answer:
c. $30 per unit
Explanation:
The computation of the minimum price per unit below which the company should not accept the special order is given below:
Direct materials $26
Direct labor $3
Variable manufacturing overhead $1
minimum price per unit $30
Therefore the option c is correct
Mr. and Mrs. Underhill operate a hardware store in a jurisdiction that levies both a sales tax on retail sales of tangible personalty and an annual personal property tax on business tangibles. The personal property tax is based on book value as of December 31. This year, Mr. and Mrs. Underhill purchased $840,000 of inventory for their store.a. Are Mr. and Mrs. CS required to pay sales tax on the purchase of the inventory?b. How can Mr. and Mrs. CS minimize their personal property tax by controlling the timing of their inventory purchases?A. Minimize inventory on hand as of December 31.
B. Minimize inventory on hand as of March 31.
C. Minimize inventory on hand as of December 1.
D. Minimize inventory on hand as of April 30.
Answer:
a). No.
b). Minimize inventory on hand as of December 31.
Explanation:
As per the details provided, the Underhill couple is not eligible to pay any kind of sales tax while purchasing the inventories for their business. This is because the inventories are not purchased for resale. The sales tax that is levied on the final good(sold to the consumer) includes the tax on inventories indirectly as well. Therefore, charging sales tax on inventories when bought would lead to double tax on a single good. Thus, the answer would be 'No' i.e. option a.
As per the second question, in order to minimize the property taxes the couple requires to 'decrease their purchases associated with inventory on approaching December 31st.' This is due to the rule of 'First In and First Out.' If the inventories on 31st December is restricted, the taxes would be applied on property accordingly but if there's a huge stock, the higher amount of taxes would be levied depending on the property that is being used for the business. Thus, option b is the correct answer.
Consider the following four investments. a)You invest $3,000 annually in a mutual fund that earns 10 percent annually, and you reinvest all distributions. How much will you have in the account at the end of 20 years
Answer: $171,825
Explanation:
As you invest the same base amount as well as every distribution you receive, this can be said to be an annuity due to the amount being the same and the interest being compounded.
The value at the end of 20 years would be the future value of this annuity and is calculable as follows:
= Annuity * ( ( 1 + rate) ^ number of period - 1) / rate
= 3,000 * ( ( 1 + 10%)²⁰ - 1) / 10%
= $171,824.998
= $171,825
Date of NoteFace AmountInterest RateTerm of Notea.January 5 *$90,000 60 days b.February 15 *21,000 4 30 days c.May 1968,000
Answer and Explanation:
The computation is shown below:
Note Due date Interest Explanation
a) May-04 $ 1,800 ($ 90,000 × 6% × 120 ÷ 360)
b) Mar-16 $70 ($21,000 × 4% × 30 ÷ 360)
c) Jul-03 $680 ($68,000 × 8% × 45 ÷ 360)
In this way the interest expense should be calculated
The same should be relevant and considered too
Firestone Tires recently paid an annual dividend of $2.00 on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $24.00 a share. What is the market rate of return
Answer:
Market rate of return = 12.45%
Explanation:
Below is the calculation of market rate of return.
D = Just pad dividend x (1 + growth rate)
D = 2 x (1 + 0.038)
D = 2.076
Now use the below formula to find the market rate of return.
Market rate of return = (D/current selling price) + Growth rate
Market rate of return = (2.076 / 24) + 0.038
Market rate of return = 12.45%
Coomb's Fashions forecasts sales of $125,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $32,500. If the December 31 inventory is targeted at $41,500, budgeted purchases for this quarter should be:
Answer:
Total purchase= $109,000
Explanation:
To calculate the budgeted purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Budgeted purchase:
Production= 125,000*0.8= 100,000
Desired ending inventory= 41,500
Beginning inventory= (32,500)
Total purchase= $109,000
If you want to have $1,500 in two years, how much money should you deposit each month if you can earn 5% per year (assume monthly compounding)
Answer: $59.56
Explanation:
Convert the figures to monthly figures.
Term = 2 * 12 months = 24 months
Rate = 5%/12 = 5/12%
The amount should be constant so it will be an annuity.
The $1,500 will be the future value of that annuity.
Future value of annuity = Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate
1,500 = Annuity * ( ( 1 + 5/12%)²⁴ - 1) / 5/12%
1,500 = Annuity * 25.18592
Annuity = 1,500 / 25.18592
= $59.56
xyz's corporation has an investment in 20,000 shares of wallace company common stock with a cost of $872,000. these shares are used in a property dividend to stockholders of xyz's. the property dividend is declared on may 25 and scheduled to be distributed on july 31 to stockholders of record on june 15. the fair value per share of wallace stock is $63 on may 25, $66 on june 15, and $68 on july 31. the net effect of this property dividend on retained earnings is a reduction of
Answer:
XYZ's Corporation
The net effect of this property dividend on retained earnings is a reduction of:
= $388,000.
Explanation:
a) Data and Calculations:
Cost of investment in Wallace Company = $872,000
Property dividend declaration date = May 25
Property dividend distribution date = July 31
Property dividend date of record = June 15
Fair value per share of Wallace shares:
May 25 = $63
June 15 = $66
July 31 = $68
Amount of property dividend declared = $1,260,000 ($63 * 20,000)
Analysis of entries:
May 25:
Property dividend $872,000 Loss on Distribution $388,000 Property Dividend Payable $1,260,000
July 31:
Property Dividend Payable $1,260,000 Cash $1,260,000
1. A beverage company is having trouble with the production of the dye in their drinks. The color of their drink mix is supposed to be a pale green color, but they often get different results. For each unwanted result, choose the most plausible explanation to help the company improve the formula. (1pts) The color of the drink is too pale after adding the dye to the drink because
Answer: • not enough dye was added to the drink.
Explanation:
The color of the drink is too pale after adding the dye to the drink because (not enough dye was added to the drink)
It should be noted that the reason why the color of the drink is too pale is due to the fact that not enough due was added to the drink.
It should be noted that as more dye is added to the drink, the color intensifies and the reason for the paleness of the colour is because less dye was added.
If aggregate expenditures increase by $14 billion and equilibrium GDP consequently increases by $70 billion, then the marginal propensity to consume in the economy must be
Answer:
0.2
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Marginal propensity to consume is the proportion of disposable income that is spent on consumption
Marginal propensity to consume = amount consumed / disposable income
Marginal propensity to save is the proportion of disposable income that is saved
Marginal propensity to save = amount saved / disposable income
MPC + MPS = 1
MPC = $14 billion / $70 billion = 0.2
Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union Pacific (UNP); and transportation logistics services, such as C.H. Robinson Worldwide, Inc. (CHRW). Financial statement information for these three companies follows (in thousands):
YRC Union Pacific C.H. Robinson
Sales $4,697,500 $19,941,000 $13,144,413
Average total assets 1,824,700 55,159,000 3,436,058
Determine the asset turnover for all three companies.
Answer and Explanation:
The computation of the asset turnover for all three companies is as follows:
Particulars YRC UNP CH
Sales 4697500 19941000 13144413
Divided by
Average
total assets 1824700 55159000 3436058
Assets turnover 2.6 0.4 3.8
John is a manager on a manufacturing line. He has cross-trained a few employees on all stations so that if a key employee calls in sick, another employee can fill in to do the job. John is making ______ plans.
Answer:the answer is contingency
Explanation:
Management of Carla Vista Home Furnishings is considering acquiring a new machine that can create customized window treatments. The equipment will cost $199,550 and will generate cash flows of $104,750 over each of the next six years. If the cost of capital is 13 percent, what is the MIRR on this project
Answer:
MIRR = 27.85%
Explanation:
Below is the calculations:
The cost of equipment, Present value = $199550
Generate cash flow each year = $104750
Time = 6 years
Now find the future value of annual cash flow = 104750 (F/A , 13%, 6)
The future value of annual cash flow =104750 x 8.3227
The future value of annual cash flow = $871802.825
Now find the MIRR = (871802.825 / 199550)^(1/6)-1
MIRR = (4.3688)^(1/6)-1
MIRR = 27.85%
MC Qu. 117 Geneva Co. reports the following... Geneva Co. reports the following information for July: Sales$792,000 Variable costs 239,000 Fixed costs 114,000 Calculate the contribution margin for July.
Answer:
$553,000
Explanation:
The contributon margin is the amount a level of sales contributes to recovering fixed costs of the organization, using the formula for contribution margin formula provided below:
contribution margin=sales-variable costs
sales revenue=$792,000
variable costs=$239,000
contribution margin=$792,000-$239,000
contribution margin=$553,000
Bear Claw Industries uses a job-order costing system. The Molding Department applies overhead based on machine hours, while the Assembly Department applies overhead based on direct labor hours. The company made the following estimates at the beginning of the current year:
Molding Assembly
Manufacturing overhead cost $700,000 $400,000
Machine hours 10,000 4,000
Direct labor hours 12,000 16,000
The following information was available for Job No. 7-29, which was started and completed during August:______.
Job No. 7-29
Molding Assembly
Direct materials $3,500 $ 7,500
Direct labor $9,000 $12,500
Direct labor hours 900 1,250
Machine hours 500 400
The predetermined overhead rate for the molding department is:_____.
a. $50.
b. $70.
c. $100.
d. $83.
Answer:
Molding= $70 per machine hour
Explanation:
Giving the following information:
Molding
Manufacturing overhead cost $700,000
Machine hours 10,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Molding= 700,000 / 10,000
Molding= $70 per machine hour
The real interest rate is 3 percent, the inflation rate is 2 percent, and the tax rate on nominal interest is 25 percent. What is the true income tax rate on interest income? Why does inflation increase the true tax rate on interest income?
Answer:
True income tax on interest income:
= Tax on interest income / Real interest rate
Tax on interest income = Tax rate * Nominal interest
= 25% * (3% real rate + 2% inflation)
= 25% * 5%
= 1.25%
True income tax:
= 1.25% / 3%
= 41.67%
Why does inflation increase the true tax rate on interest income?
It is because tax is computed on the nominal interest rate as shown above. Nominal rates are affected by inflation such that when inflation rises, nominal rates rise as well which would lead to taxes being higher because they are now based on a higher figure.
Jed goes to the deli to purchase turkey that costs $6.71 per pound. State regulations indicate that the scale used in the deli must be accurate to within 1 20 pound. According to the scale, Jed's purchase weighs one-fourth pound and costs $1.68. How much might he have been undercharged or overcharged due to a scale error
Answer:
$0.333
Explanation:
Given :
Price per pound = $6.71
Accuracy should be within 1/20 pound
Weight of Purchase = 1/4 pound
Cost of purchase = $1.68
Since accuracy is within 1/20 pound ;
The weight of purchase will be within :
(1/4 - 1/20 ; 1/4 + 1/20)
(0.2 ; 0.3)
The weight of purchase would be within (0.2 ; 0.3) including factoring in the accuracy level.
Price per pound = $6.71
If weight is 0.2 pounds ; ($6.71 * 0.2) = 1.342
If weight is 0.3 pounds ; ($6.71 * 0.3) = 2.013
Difference :
$(2.013 - 1.68) = $0.333
Owing to scale error, Jed might have been under charged or overcharged an amount of $0.333
The questions below also rely on the following assumptions: (reference the Tax Cuts and Jobs Act of 2017)
You are 30 years old and your employer sponsors a 401(k) plan with a 4% employer match.
You earn $100,000 of gross wage income. This income is expected to stay constant over the next three years.
At the start of every year you decide to invest 4% of your salary into your 401(k).
Your expected return on your investments is 5% per year.
You file your taxes as a single filer and you are in the 24% tax bracket.
The long term capital gains tax is 15%.
1. Calculate the total amount of funds that you expect to be in your 401(k) at the end of three years. Explain your answer.
2. At the end of the third year, you decide to withdraw $15,000 from your 401(k) to pay for some home improvements. Calculate how much tax, if any, you will owe on this withdrawal. Explain your answer.
3. During this same three year period you also invested in a Roth IRA. At the end of this three year period, your Roth IRA had cumulative contributions of $15,000 and earnings or gains of $5,000.
Suppose you decided to fund your home improvements by withdrawing from your Roth IRA instead of your 401(k). Calculate how much tax, if any, would you owe in this withdrawal. Explain your answer.
Answer:
1. The total amount of funds that you should expect to be in your 401(k) at the end of three years is:
$26,481.00.
This is the future value of $8,000 invested at the beginning of the year for 3 years (principal of $24,000 plus interest of $2,481).
2. Tax liability on this withdrawal = $3,600 ($15,000 * 24%). This is based on the amount withdrawn multiplied by the taxpayer's tax rate of 24%. The taxpayer does not pay tax on his contributions. Instead, tax is paid on withdrawals from the 401(k) plan unlike ROTH.
3. No tax would be paid on the withdrawal for home improvements. Tax is also not paid on the gain because tax has already been paid before the investment is made into the ROTH fund.
Explanation:
a) Data and Calculations:
Gross wage income = $100,000
Investment in 401(k) = $4,000 ($100,000 * 4%)
Employer's match in 401(k) = $4,000 ($100,000 * 4%)
Total annual investment in 401(k) = $8,000
N (# of periods) 3
I/Y (Interest per year) 5
PV (Present Value) 0
PMT (Periodic Payment) 8000
Results
FV = $26,481.00
Sum of all periodic payments =$24,000.00
Total Interest $2,481.00
Roth IRA cumulative contributions = $15,000
Earnings or gains on the Roth IRA fund = 5,000
Tax liability on the withdrawal = $0 ($20,000 * 0%)
A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of March, there were 5,000 units in the beginning work in process inventory; 70,000 units were started into production in March; and there were 25,000 units that were 60% complete in the ending work in process inventory at the end of March. What were the equivalent units of production for conversion costs for the month of March
Answer:
75,000 equivalent units
Explanation:
Calculation to determine What were the equivalent units of production for conversion costs for the month of March
First step is to calculate completed and transferred units
Completed and transferred units =5,000 + 70,000 − 25,000
Completed and transferred units = 50,000
Now let determine the equivalent units for direct materials cost
Using this formula
Equivalent units for direct materials cost =100% of the completed units + 100% of the ending inventory
Let plug in the formula
Equivalent units for direct materials cost= (50,000 × 100%) + (25,000 × 100%)
Equivalent units for direct materials cost=50,000+25,000
Equivalent units for direct materials cost=75,000
Therefore the equivalent units of production for conversion costs for the month of March is 75,000
IBM signs an agreement to lend one of its customers $200,000 to be repaid in one year at 5% interest. IBM would record this loan as: A. Notes Payable. B. Notes Receivable. C. Accounts Receivable. D. Unearned Revenue.
Answer:
B. Notes Receivable.
Explanation:
Since the company is signed an agreement for lending out of its customers for $200,000 that could be repaid in one year at 5% interest so it is not revenue not note payable and also not account receivable
Therefore it is a note receivable
Hence, the option b is correct
and, the same is to be considered and relevant
Financial information is presented below: Operating Expenses $ 89300 Sales Returns and Allowances 17000 Sales Discounts 11700 Sales Revenue 320900 Cost of Goods Sold 173900 The amount of net sales on the income statement would be
Answer:
Net sales = 292200
Explanation:
Below is the given values:
Operating expenses = $89300
Sales return = 17000
Sales discounts = 11700
Sales revenue = 320900
Cost of goods sold = 173900
Net sales = Sales revenue - Sales discount - Sales return
Net sales = 320900 - 11700 - 17000
Net sales = 292200
Saving and net flows of capital and goods In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis
Recall the components that make up GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C consumption, I investment, G government purchases, X exports, M imports, and NX net exports: Y _________
Also, national saving is the income of the nation that is left after paying for Therefore, national saving (S) is defined as:
S _________
Rearranging the previous equation and solving for Y yields Y Plugging this into the original equation showing the various components of GDP results in the following relationship:
S ________
since net exports must equal net capital outflow (NCO, also known as net foreign investment) This is equivalent to S-
Now suppose that a country is experiencing a trade surplus. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or (equal to)
Outcomes of a Trade Surplus
Exports Imports
Net Exports 0
C+IG Y
Saving Investment C
0 Net Capital Outflow
Answer:
HAHAHAHAHAHAH
Explanation:
What can organizations do to keep rewards individualized enough to meet various employee needs (needs theory) while trying to ensure that everyone feels that all the different rewards are fair (equity theory)
Answer:
The best way to go about this is to design and operate and rewards system that recognizes individual needs as summarized and proposed by David McClelland.
The theory of equity on the other hand speaks to the perception of how input is compensated for in relation to those of others. Human beings (workers) will come with varying degrees of skills and input.
So to customize rewards in such a way that it recognizes unique contributions in an equitable way, one must first decide what key skills will be required for each job and which jobs are required to achieve organizational goals and objectives.
Explanation:
The Needs Theory by David Mclelland summarizes individual needs into three. They are:
Achievement AffiliationPowerA balanced reward system will have financial and non-financial benefits. some of the non-financial benefits will be tailored to have the above components.
- Achievement: An example of this is - Opportunity for higher assignments
- Affiliation: The need to belong to a strong Employer brand
- Power: This answers the question about whether or not one will become more influential as they progress with the company
The equity theory will guide the business owner in ensuring that all selected metrics of input are classed and priced accordingly.
The usual form of input include but are not limited to:
Ability Adaptability Commitment Determination Education Effort Enthusiasm Experience Flexibility Hard Work Loyalty Personal sacrifice Skill Support from co-workers and colleagues Time Tolerance Trust in supervisorsEquity sometimes is difficult to achieve due to issues with capacity on the part of the company. Best practice, however, is to recognize equity first from the perspective of standard industry practice, then match or exceed such offering by a combination of Financial and Non-Financial rewards that are based on the strength of the organization.
Another strategy is for organizations to adapt it's reward systems to Achievement Based Compensation. This type of compensation instead of focusing on the inputs listed above focuses on results.
In this case, expected results and capacity to deliver and subsequent rewards on same are discussed and agreed upon.
Minimum requirements are also defined ahead of time. Under this kind of structure, equity is achieved, and individual needs are recognized.
Cheers
It is essential that organizations meet the needs of employees on an individual basis and ensure that everyone feels that the different rewards are fair. This can be achieved by implementing a culture focused on integration, collaboration and open and clear communication.
What is Equity theory?It is a theory that explains how motivation in the workplace is related to the perception of employees through their sense of justice, that is, employees compare their work inputs and outputs in relation to others.
Therefore, by creating open communication and an effective reward system, employees can have their needs met and create a strong sense of appreciation for their work.
Find out more about Equity theory here:
https://brainly.com/question/26507171
Consider the following information about production in quarter 1 of 2019. Firm T produces 600 tires at a cost of $28 each, and sells 580 tires to Firm B at a cost of $39 each.Firm B produces 290 bicycles at a total cost of $330 each, and sells 280 bicycles to consumers for $400 each. In this simple economy, what is the value of inventory investment
Answer:
$3,860
Explanation:
Value of stock at the end of Firm T:
Firm T has stock of 20 tires at the end of the year
The cost price is $28 per tire
Value = Closing stock * Cost price of each tIres
Value = 20 * $28
Value = $560
Value of stock at the end of Firm B:
Firm B has stock of 10 bicycles at the end of the year
The cost price is $330 each
Value = Closing stock * Cost price of each bicycle
Value = 10 * $330
Value = $3,300
Value of the inventory investment = Value of stock at the end of Firm T + Value of stock at the end of Firm B
Value of the inventory investment = $560 + $3,300
Value of the inventory investment = $3,860
How has persuasion changed in the digital age?
a. Persuasion is simple and more personal
b. Persuasive techniques are bold and blunt
c. Persuasive messages spread at warp speed
d. All businesses are in the persuasion business
e. The volume and reach of persuasive messages have exploded
Answer:
Explanation:
Persuasion has changed a lot in the digital age, based on the options listed, the ones that are true would be ...
c. Persuasive messages spread at warp speed
d. All businesses are in the persuasion business
e. The volume and reach of persuasive messages have exploded
The internet and social media have allowed businesses to quickly and easily target millions of individuals around the world. So it is no wonder that all businesses are in the persuasion business. Persuasive techniques are able to spread incredibly fast from person to person, as well as word of mouth if enough individuals begin to like your product/service. The internet and social media even allow businesses to target specific categories on populations.
In year T, a US citizen buys 100 shares of Sonic on the Tokyo stock exchange at 700 yens each. Suppose the exchange rate then is $0.01 per yen. Suppose the price of the stocks falls to 600 yens each at time T +1. Nothing else changes. Compute the change in US external wealth between periods T and T +1 in dollars.
Answer:
Change in US external wealth between periods T and T +1 in dollars = -$100
Explanation:
Since nothing else changes, this implies that the exchange rate per yen is $0.01 in periods T and T +1. Therefore, we have:
Value shares of Sonic in period T in dollar = Number of shares of Sonic bought in period T * Price per share of Sonic in Yen in period T * Exchange rate per yen in periods T = 100 * 700 * $0.01 = $700
Value shares of Sonic in period T+1 in dollar = Number of shares of Sonic in period T+1 * Price per share of Sonic in Yen in period T+1 * Exchange rate per yen in period T+1 = 100 * 600 * $0.01 = $600
Change in US external wealth between periods T and T +1 in dollars = Value shares of Sonic in period T+1 in dollar - Value shares of Sonic in period T in dollar = $600 - $700 = -$100
