Answer: False
Explanation:
Unemployment refers to the individuals that are part of the labor force in an economy but cannot find suitable job for themselves.
Most spells of unemployment are not long but rather short while most unemployment observed at any given time is long-term. It should also be noted that the unemployment problem in an economy is usually because of few workers who are without job for long periods of time.
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.50; direct labor, $13.50, variable overhead $2.50 and fixed overhead, $7.50. An outside supplier has offered to sell the product to Paxton for $33.00. Compute the net incremental cost or savings of buying the component.
Answer:
$7.50 per unit
Explanation:
Cost of buying from outside supplier = $33 per unit.
Relevant cost of making such component in-house = Direct materials+ Direct labor+ Variable overhead
= $9.50 per unit + $13.50 per unit + $2.50 per unit
= $25.50 per unit
Net incremental cost of buying the component = Cost of buying from outside supplier- Relevant cost of making such component in-house
= $33.00 per unit - $25.50 per unit
= $7.50 per unit
A vendor sells hot dogs at $17.00 /piece. For every hot dog he spends $11.23 in the raw material. Additionally he spends $0.90 for packing each hotdog and monthly $46.00, $25.00, $13.00 as food truck rent, electricity and other expenses respectively. How much is the vendor contributing to covering his fixed costs or generating profits
Answer: $4.87
Explanation:
The question is asking for the Contribution margin which is the amount left of the selling price after the variable costs have been deducted.
Contribution margin = Selling price - variable costs
= Selling price - Raw materials - packing costs
= 17 - 11.23 - 0.90
= $4.87
Refer to Exhibit 26-5. Assume the firm is a factor price taker and that the price of a unit of labor is constant at $1,200. The firm should hire __________ of labor.
Answer: 3 units of labor
Explanation:
The marginal revenue product will be:
- 1 labor unit
Marginal product = 500
Marginal revenue product = 500 × 5 = 2500
- 2 labor unit
Marginal product = 400
Marginal revenue product = 400 × 5 = 2000
- 3 labor unit
Marginal product = 250
Marginal revenue product = 250 × 5 = 1250
- 4 labor unit
Marginal product = 200
Marginal revenue product = 200 × 5 = 1000
- 5 labor unit
Marginal product = 200
Marginal revenue product = 200 × 5 = 1000
Therefore, till the third unit of labor, we can infer that the marginal revenue product is more than the marginal revenue cost. The 4th and 5th unit of labor will become costly to hire more labor.
Financial statements that must be included in the annual report include all of the following except: _____________
a. the statement of cash flows
b. the balance sheet
c. the cash budget
d. the income statement
Answer:
c
Explanation:
A corporation has the following account balances: Common stock, $1 par value, $60,000; Paid-in Capital in Excess of Par, $1,300,000. Based on this information, the :_________.
A. legal capital is $1,360,000.
B. number of shares issued are 60,000.
C. number of shares outstanding are 1,360,000.
D. average price per share issued is $22.50.
Answer:
B. number of shares issued are 60,000.
Explanation:
The computation is shown below:
Since the value of the common stock is $60,000 and the par value is $1
So, the number of common shares issued is
= $60,000 ÷ $1
= 60,000
Hence, the number of shares issued is 60,000
Therefore, the option b is correct
The following data are from the financial statements of the Riverton Company.
Current assets $55,000
Total liabilities $95,000
Total assets 125,000
Net income 18,000
Current liabilities 25,000
Sales 275,000
Answer:
then what i have to found
One of the best sources of precall information is a prospect's own salespeople because they empathize with the salesperson's situation.
a. True
b. False
Answer:
a. True
Explanation:
In the case when the information is precalled so here the sources that considered to be best should be the own salespeople as it would emphathize the situation of the sales person
So as per the given situation, the given statement is true
Hence, the option a is correct
Therefore, the second option is wrong
Suppose Brian and Crystal are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Brian chooses Right and Crystal chooses Right, Brian will receive a payoff of 5 and Crystal will receive a payoff of 6.
Crystal
Left Right
Left 6, 3 6,4
Brian Right 3, 3 7,4
The only dominant strategy in this game is for_____to choose____. The outcome reflecting the unique Nash equilibrium in this game is as follows: Brian chooses____and Crystal chooses____.
Answer:
The only dominant strategy in this game is for Crystal to choose Right. The outcome reflecting the unique Nash equilibrium in this game is as follows: Brian chooses Right and Crystal chooses Right.
Explanation:
Given:
Crystal
Left Right
Brian Left 6, 3 6, 4
Right 3, 3 7, 4
A dominant strategy refers to a strategy that makes a player being better off regardless of the choice his opponent in a game.
It can be seen from the payoff matrix above that when Brian plays Left, Crystal chooses Right because 4 > 3. Also, when Brian plays Right, Crystal chooses Right because 4 > 3. The indication of this is that Crystal will always choose Right no matter what Brian chooses. This means that the dominant strategy for Crystal is Right.
On the other hand, when Crystal Chooses Left, Brian will also choose Left because 6 > 3. And when Crystal chooses Right, Brian will also play Right because 7 > 6. This is an indication that Brian does not have any specific strategy that makes him better off. Therefore, Brian does not have a dominant strategy.
Based on the analysis above, we have:
The only dominant strategy in this game is for Crystal to choose Right. The outcome reflecting the unique Nash equilibrium in this game is as follows: Brian chooses Right and Crystal chooses Right.
If the cost of production of Hula Hoops increases, what happens to the supply curve?
Answer:
Left shift
Explanation:
In simple words, If manufacturing costs rise, the distributor's expenses for each output threshold will rise as well. The supply curve must shift inwards that is to the left) if everything else remained constant, indicating the higher cost of manufacturing. At each quantity level, the provider will supply less.
Felix's profit is maximized when he produces teddy bears. When he does this, the marginal cost of the last teddy bear he produces is $ , which is than the price Felix receives for each teddy bear he sells. The marginal cost of producing an additional teddy bear (that is, one more teddy bear than would maximize his profit) is $ , which is than the price Felix receives for each teddy bear he sells. Therefore, Felix's profit-maximizing quantity corresponds to the intersection of the curves. Because Felix is a price taker, this last condition can also be written as .
Senior managers have an increasingly important role in top management because of their ability to think strategically. Most bring multi-industry backgrounds, cross-functional management expertise, analytical skills, and intuitive marketing insights to their job. These individuals are referred to as:__________
a. chief financial officer.
b. chief marketing officer.
c. chief executive officer.
d. chief human resource officer.
e. chief manufacturing officer.
Answer:
b. chief marketing officer.
Explanation:
A Chief Marketing Officer (CMO) is a person that is responsible for watching the proper planning, development and the execution of the marketing & advertising initiatives taken by the company. Here the message of an organization should be distributed across the various channels and targeted audience so that the sales goals could be met out
Therefore the option b is correct
Black Company's unadjusted and adjusted trial balances on December 31 of the current year are as follows
Answer:
wdym
Explanation:
A company purchased factory equipment for $350,000. It is estimated that the equipment will have a $35,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be:_________ a. $140,000 b. $84,000. c. $126,000 d. $75,600
Answer:
Annual depreciation= $126,000
Explanation:
Giving the following information:
Purchase price= $350,000
Useful life= 5 years
Salvage value= $35,000
To calculate the annual depreciation under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(350,000 - 35,000) / 5]
Annual depreciation= $126,000
Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to be $800,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 10,000 hours, respectively. What is the predetermined overhead allocation rate?
a. $0.00 per machine hour
b. $81.25 per labor hour
c. $50.00 per machine hour
d. $51.25 per labor hour
Answer:
c. $50.00 per machine hour
Explanation:
Calculation to determine the predetermined overhead allocation rate
Using this formula
Predetermined overhead allocation rate=Manufacturing overhead costs/Machine hours
Let plug in the formula
Predetermined overhead allocation rate=$500,000/10,000
Predetermined overhead allocation rate=$50.00 per machine hour
Therefore Predetermined overhead allocation rate is $50.00 per machine hour
Match the types of analytics that can be used to answer the business questions. Which people are mentioned in a company's business documents?
Answer:
Predictive
Cognitive
Explanation:
Predictive analysis help to forecast about future. It helps to analyse and identify profitable business activities and make strategy for business progress. Cognitive analysis predicts business performance based on current patterns and existing data.
If you throw exactly two heads in two tosses of a coin you win $101. If not, you pay me $30. Step 1 of 2 : Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.
Answer:
The expected value of the proposition is $2.50.
Explanation:
When a coin is tossed two times, the following is the sample space (S)
S = {HT,TH,TT,HH}
Using the information in the question, we can derive the following win/loss table:
S Probability Payoff
TH 1/4 -$30
HT 1/4 -$30
TT 1/4 -$30
HH 1/4 $100
The expected value (E) can now be calculated as follows:
E = Sum of (Probability * Payoff) = (1/4 * ($-30)) * (1/4 * ($-30)) * (1/4 * ($-30)) = (1/4 * $100) = ((1/4) * (-30)) + ((1/4) * (-30)) + ((1/4) * (-30)) + ((1/4) * 100) = $2.50
Which type of budgeting requests for investment in large assets such as buildings, renovations, software systems and furniture
The type of budgeting requests for investment in large assets is buildings.
An investment property is real estate property purchased with the intention of earning a return on the investment either through rental income, the future resale of the property, or both.
Why do people invest in buildings?Key Takeaways. Real estate investors make money through rental income, appreciation, and profits generated by business activities that depend on the property. The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage.
Apartment buildings frequently get sold on the basis of their cap rate, which is effectively a multiple of the income they produce. If you increase your building's income by raising rents or cutting expenses, you should be able to sell for a profit.
To learn more about investment in buildings, refer
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The following information is available for Jorgensen Company: a. The Cash Budget for March shows a bank loan of $10,000 and an ending cash balance of $48,000. b. The Sales Budget for March indicates sales of $120,000. Accounts receivable is expected to be 70% of March sales.
Answer:
Accounts receivable is
Explanation:
Expected accounts receivable is 70% of sales amount. The sales budget is $120,000 then accounts receivable will be $84,000. The rest of sales will be in cash, so the cash collection for the month of march will be $36,000. The new cash balance will be $36,000 + $48,000 = 84,000.
You pay $75 for a ticket to a Drake concert. You think the ticket is worth $100. The night before the concert your friend offers you a free ticket to a Post Malone concert that you think is worth $80. What is the opportunity cost to you of going to the Drake concert instead of the Post Malone concert?a) $155b) $20c) $5d) $75e) $80
Answer: $80
Explanation:
The opportunity cost is regarded as the real cost of the alternative that was left or forgone.
Based on the information given in the question, the opportunity cost is the free ticket to a Post Malone concert that is worth $80 which was given to me by my friend.
Therefore, the correct option is E.
You are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a 2 Review Only Click the icon to see the Worked Solution (Calculator Use). single cash payment back to you in the future. Details of each investment appears here: . Calculate the IRR of each investment. State your answer to the nearest basis point (i.e., the nearest 1/100th of 1%, such as 3.76%)
Answer:
8.27%
4.69%
10.77%
9.47%
4.81%
Explanation:
Please find attached the diagram of the cash flows
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR = (future value / present value)^(1/n)
n = number of years
1. (2637/1100)^(1/11) - 1 = 8.27
2. (13091 / 9500)^(1/7) - 1 = 4.69
3. (1855 / 400)^(1/15) - 1 = 10.77
4. (5030 / 3200)^(1/5) - 1 = 9.47
5. (9598 / 6000)^(1/10) - 1 = 4.81
A company pays $20,000 for the rights to a well with 5 million gallons of water. If the company extracts 250,000 gallons of water in the first year, what is the total depletion in year 1
Answer: $1,000
Explanation:
The cost of the well is $20,000
The capacity of the well is 5 million gallons
The cost of one gallon is therefore:
= Cost of all gallons / Number of gallons
= 20,000 / 5,000,000
= $0.004
If 250,000 gallons were extracted in the first year, the depletion is:
= Number of gallons extracted * Cost per gallon
= 250,000 * 0.004
= $1,000
On January 1, 2017, ARC Inc. issued 100 5-year bonds, with a face value of $1,000 each and a coupon rate of 10%, payable semiannually. The interest is paid on June 30 and December 31 of each year. The market rate of interest at the time that the bonds were issued was 13%, so that the bonds were sold for $892 each.1. Interest expense for the January 1–June 30 period was $_____.
2. Interest expense for the July1–December 31 period was $_____.
3. Book value of Bonds on June 30 was $_____.
4. Book value of Bonds on December 31 was $_____.
5. Interest payment on June 30 was $_____.
Answer:
ARC Inc.
1. Interest expense for the January 1–June 30 period was $__5,798___.
2. Interest expense for the July 1–December 31 period was $__5,850___.
3. Book value of Bonds on June 30 was $__89,998___.
4. Book value of Bonds on December 31 was $__90,848___.
5. Interest payment on June 30 was $__5,000___.
Explanation:
a) Data and Calculations:
January 1, 2017:
Face value of issued bonds = $100,000 ($1,000 * 100)
Coupon rate of interest = 10%
Effective rate of interest = 13%
Price of issued bonds = $89,200 ($892 * 100)
Discount on bonds = $10,800 ($100,000 - $89,200)
Interest payment = June 30 and December 31 (semiannually)
June 30:
Interest expense = $5,798 ($89,200 * 6.5%)
Cash payment = $5,000 ($100,000 * 5%)
Amortization of discount = $798
Value of bonds = $89,998 ($89,200 + $798)
December 31, 2017:
Interest expense = $5,850 ($89,998 * 6.5%)
Cash payment = $5,000 ($100,000 * 5%)
Amortization of discount = $850
Value of bonds = $90,848 ($89,998 + $850)
We have created the following Planned Production Orders over the planning period: 130 Product A We have the following Raw Materials on hand and available to be dedicated to these Planned Production Orders: Enough Raw Materials to product 70 Product A There are Purchase Orders at our suppliers for the following Raw Materials: 40 Product A How many products should we order on New Purchase Orders with our suppliers
Answer:
20
Explanation:
The computation of the no of products that should be ordered on the new purchased is shown below
We know that
New purchase order = Planned Production Order - Raw material available - purchase order for planned production
In this if the value is in negative, so it will be zero
So,
New Purchase Order (POnew) = maximum(0, PP - RM - SR)
Here,
PP = 130 Product A
RM = 70 Product A
SR = 40 Product A
Therefore POnew is
= maximum (0, 130-70-40)
= maximum (0, 20)
= 20
Which of the following is NOT an accurate description of modern marketing?
Marketing involves managing profitable customer relationships.
Marketing involves satisfying customers' needs.
O Marketing is the creation of value for customers.
Marketing emphasizes selling and advertising exclusively.
O Marketing is building value-laden exchange relationships with customers.
I'm stuck between
Marketing is the creation of value for customers and
Marketing emphasizing selling and advertising exclusively l.
A small toy store has organized its 10 inventory items on an annual dollar-volume basis. The information below shows the items, their annual demands, and unit costs. How should the store classify these items into groups A, B, and C?
Item Number Annual Volume (Units) Unit Cost ($)
Item 1 300 $10
Item 2 1000 $30
Item 3 500 $60
Item 4 100 $2
Item 5 1500 $20
Item 6 600 $50
Item 7 2000 $1.50
Item 8 900 $70
Item 9 1200 $2.00
Item 10 700 $40
Answer:
Classification:
Groups Annual Dollar-Volume
A Above $30,000:
Item Annual Volume Unit Cost Total Cost
Item 8 900 $70 $63,000
B Above $3,000:
Item Annual Volume Unit Cost Total Cost
Item 2 1,000 $30 $30,000
Item 3 500 $60 $30,000
Item 5 1,500 $20 $30,000
Item 6 600 $50 $30,000
Item 10 700 $40 $28,000
C $3,000 and Below
Item Annual Volume Unit Cost Total Cost
Item 1 300 $10 $3,000
Item 4 100 $2 $200
Item 7 2,000 $1.50 $3,000
Item 9 1,200 $2.00 $2,400
Explanation:
a) Data and Calculations:
Item Annual Volume Unit Cost Total Cost
Number (Units) ($) ($)
Item 1 300 $10 $3,000
Item 2 1,000 $30 $30,000
Item 3 500 $60 $30,000
Item 4 100 $2 $200
Item 5 1,500 $20 $30,000
Item 6 600 $50 $30,000
Item 7 2,000 $1.50 $3,000
Item 8 900 $70 $63,000
Item 9 1,200 $2.00 $2,400
Item 10 700 $40 $28,000
Gwen plans to retire in 3 years with $426,000 in her account, which has an annual return of 6.29 percent. If she receives annual payments of X, with her first payment of X received in 4 years and her last payment of X received in 9 years, then what is X, the amount of each payment? Number Emerson plans to retire in 3 years with $296,000 in his account, which has an annual return of 10.13 percent. If he receives payments of $60,700 per year and he receives his first $60,700 payment in 4 years, then how many payments of $60,700 can Emerson expect to receive? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).
Answer:
Q1. $87,423
Q2. 7.06
Explanation:
Q1. Calculation to determine what is X, the amount of each payment
Using Financial calculator to find X
End mode,
N = 6
% = 6.29%
PV= -$426,000
FV = 0
Hence:
X = 87,423
Therefore X, the amount of each payment will be
Q2. Calculation to determine how many payments can Emerson expect to receive
Using Financial calculator
End mode,
%= 10.13%
PV = -$296,000
PMT =$60,700
FV = 0
Hence,
Payment = 7.06
Therefore how many payments can Emerson expect to receive will be 7.06
According to the liquidity preference model, the equilibrium interest rate is determined by the: International Monetary Fund. supply of and demand for money. supply of and demand for loanable funds. level of investment spending and saving.
Answer:
Supply of and demand for money.
Explanation:
The equilibrium interest rate is determined by the demand and supply of the money. The interest rate is represented by the verticle axis of the graph and supply and demand for money is represented by the horizontal axis. Thus, the point of intersection between supply curve and demand curve determines the equilibrium interest rate.
S Corporation makes 41,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 10.00 Direct labor $ 9.00 Variable manufacturing overhead $ 3.70 Fixed manufacturing overhead $ 4.65 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to S Corporation for this motor is $25.45. If S Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:
Answer:
$112,750
Explanation:
Particulars Cost of making Cost of buying
Direct material 41,000*10=410,000 0
Direct labor 41,000*9=369,000 0
Variable manuf. overhead 41,000*3.70=151,700 0
Fixed manuf. overhead 41,000*4.65=190,650 41,000*4.65=190,650
Outside supplier's price 0 41,000*25.45=1,043,450
Total cost $1,121,350 $1,234,100
Financial advantage of making the motors = $1,234,100 - $1,121,350
Financial advantage of making the motors = $112,750
On June 1, $40,000 of treasury bonds were purchased between interest dates. The broker commission was $600. The bonds pay interest at 12%, which is paid semiannually on January 1 and July 1. How much interest revenue will be recorded on July 1?
a. $400.
b. $2,000.
c. $2,400.
d. $406.
Answer: $400
Explanation:
The amount of interest revenue that will be recorded on July 1 will be calculated thus:
Interest revenue = Face value × Interest percentage × 1/12
= $40,000 × 12% × 1/12
= $40000 × 0.12 × 0.08333
= $400
Therefore, the interest revenue that will be recorded on July 1 is $400.
The quantity demanded for money is higher in Japan than in the United States because: telecommunications and information technology is more advanced in the United States than in Japan. Japanese interest rates are higher than those in the United States. Japanese interest rates are lower than those in the United States. Japanese consumers use credit cards more than people in the United States.
Answer:
Japanese interest rates are lower than those in the United States.
Explanation:
The demand for money (the decision to hold money) is inversely related to interest rate. if interest rate is high, individuals would prefer to hold bonds and the demand for money would fall. if interest rate is low, individuals would prefer to hold money.
the opportunity cost of holding money is what would have been earned if money was invested. if interest rate is low, individuals would prefer to hold more money because the amount that would be earned if money was invested in bonds would be low, so the opportunity cost of holding money would be low
If the demand for money is higher in Japan than in the United States, it is because interest rates are lower in Japan
