Answer:
10.24 years
Explanation:
Below is the calculation for a number of years:
Present value of the money = 10000
The interest rate on the money = 7%
Future value of the investment = $20000
Future value = Present Value (1 + r)^n
20000 = 10000(1 + 7%)^n
20000 / 10000 = (1 + 7%)^n
2 = (1 + 7%)^n
2 = (1.07)^n
Now solve for the value of n by taking ln.
So, n = 10.24 years
Priyanka is a branch manager at a bank in town. She hires Hudson, who comes with strong references and several years' experience, as a bank teller. Several months later, Priyanka is surprised to be personally named in a lawsuit alleging that Hudson misrepresented the bank's products by promising new account holders $1,000 for starting a savings account. Is Priyanka, as Hudson's manager, personally liable for the tort
Answer: Yes. because Priyanka is Hudson's manager and so his liability extends to her.
Explanation:
Based on the information given, it should be noted that Priyanka, as Hudson's manager, personally liable for the tort.
In this case, Priyanka is Hudson's manager and so his liability extends to her. Priyanka will be liable based on the employee-employer ground and will be liable since she hired Hudson.
You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 percent APR for this 360-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $950
Answer:
$573,963
Explanation:
First, calculate the present value of the loan payments using the following formula
PVA = PMT x [ ( 1 + r )^n - 1 ] / [ r ( 1 + r )^n)
PVA = $950 x [ ( 1 + 7.1%/12 )^360 - 1] / [ 7.1%/12 ( 1 + 7.1%/12 )^360)
PVA = $141,362.32
Now calculate the difference of Value of loan and the present value of loan payment
Difference = Loan value - PV of loan payment = $210,000 - $141,362.32 = $68,637.68
This te Ballon payment in present value term, We need to determine the value at the end of the loan term.
Hence we need to calculate the future value of this payment as follow
Future value = Present vale x ( 1 + Monthly Interest rate )^numbers of months
Future value = $68,637.68 x ( 1 + 7.1%/12 )^360
Future value = $573,963.09
Future value = $573,963
Hence the ballon Payment will be $573,963
Your firm has the responsibility to review transactions and activities occurring after the year-end to determine whether anything occurred that might affect the statements being audited. The procedures required to verify these transactions are commonly referred to as the review for _______ Group of answer choices contingent liabilities. subsequent events. late unusual occurrences. subsequent year's transactions.
Answer: Subsequent events
Explanation:
Reviewing transactions is what gives accountability in organization, without this organizations would not know when they are running at a loss or making gains. The best time to do this is at the end of yearly transactions, the procedure required to verify this transactions are referred to as subsequent events, meaning events that happened as time went on.
This act is carried out most times by auditors
Skysong, Inc. began the year with 9 units of marine floats at a cost of $12 each. During the year, it made the following purchases: May 5, 28 unit at $16; July 16, 19 units at $20; and December 7, 24 units at $24. Assume there are 30 units on hand at the end of the period. Skysong uses the periodic approach.
a. Determine the cost of goods sold under FIFO
b. Determine the cost of goods sold under LIFO
c. Calculate average unit cost
d. Determine the cost of goods sold under average-cost. Average-Cost Cost of good sold
Answer:
Skysong, Inc.
a. The cost of goods sold under FIFO
= $816
b. The cost of goods sold under LIFO
= $1,068
c. Average unit cost
= $18.90
d. The cost of goods sold under average-cost
= $945
Explanation:
a) Data and Calculations:
Date Transaction Units Unit Cost Total
Jan. 1 Beginning inventory 9 $12 $108
May 5, Purchases 28 $16 448
July 16 Purchases 19 $20 380
Dec. 7, Purchases 24 $24 576
Dec. 31 Total 80 $1,512
Dec. 31 Ending inventory 30
Dec. 31 Sales 50
a. The cost of goods sold under FIFO:
Jan. 1 Beginning inventory 9 $12 $108
May 5, Purchases 28 $16 448
July 16 Purchases 13 $20 260
Cost of goods sold $816
b. The cost of goods sold under LIFO:
May 5, Purchases 7 $16 112
July 16 Purchases 19 $20 380
Dec. 7, Purchases 24 $24 576
Cost of goods sold $1,068
c. Average unit cost:
= Total cost/Total units
= $18.9 ($1,512/80)
d. The cost of goods sold under average-cost:
= $945 (50 * $18.90)
Liz Chapa manages a portfolio of 250 common stocks. Her staff compiled the following rate of return performance statistics for two new stocks: Stock Mean Standard Deviation Salas Products, Inc. 15% 5% Hot Boards, Inc. 20% 5% What is the coefficient of variations for both stocks
Answer: See explanation
Explanation:
The coefficient of variations for both stocks will be calculated thus:
For Salas Product
Coefficient of Variation = Standard deviation / Mean × 100
= 5/15 × 100
= 1/3 × 100
= 33.33%
Hot boards:
Coefficient of Variation = Standard deviation / Mean × 100
= 5/20 × 100
= 1/4 × 100
= 25%
Carver Packing Company reports total contribution margin of $49,200 and pretax net income of $24,600 for the current month. In the next month, the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are:
Answer: 2.0 and 16%
Explanation:
The degree of operating leverage and the expected percent change in income, will be calculated thus:
Operating leverage will be:
= Contribution margin / Net operating income
= 49200 / 24600
= 2
Then, percentage change in income will be:
= %change in sale × operating leverage
= 8% × 2
= 16%
Q2. Why can the distinction between fixed costs and variable costs be made in the short run? Classify
the following as fixed or variable costs: advertising expenditures, fuel, interest on company-issued
bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance
premiums, wage payments, sales taxes, and rental payments on leased office machinery. “There are
no fixed costs in the long run; all costs are variable.” Explain
Answer:
Fixed costs cannot be changed in the short run and are the same regardless of the volume of production. Variable costs vary with production but can b changed in the short run.
Fixed costs:
Interest on company issued bonds Real estate taxesExecutive salaries Insurance premiums Rental payments on leased office machinery.Variable costs:
Advertising expendituresFuelShipping chargesPayments for raw materialsWage paymentsSales taxesAll costs are variable in the long run because all costs can be changed by investment and planning. For instance, over the long term, the company could buy the leased office machinery and not have to pay rent on it thereby stopping that fixed cost.
Bond J has a coupon rate of 3 percent and Bond K has a coupon rate of 9 percent. Both bonds have 13 years to maturity, make semiannual payments, and have a YTM of 6 percent. a. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds
Solution :
Given :
Coupon rate for Bond J = 3%
Coupon rate for Bond K = 9%
YTM = 6 %
Therefore,
The current price for Bond J = $ 718.54 =PV(6%/2,13x2,30/2,1000)x -1
The current price for Bond K = $ 1281.46 =PV(6%/2,13x2,90/2,1000)x -1
If the interest rate by 2%,
Bond J = $ 583.42 = -18.80% (change in bond price)
Bond K = $ 1083.32 = -15.46% (change in bond price)
Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,324,000 $2,630,000 Preferred dividends $50,000 $50,000 Average number of common shares outstanding 70,000 shares 120,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per sha
Question Completion:
b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
Answer:
Black Bull Inc.
20Y5 20Y6
1. Earnings per share (EPS) $18.20 $21.50
2. The change in the earnings per share from 20Y5 to 20Y6 is favorable.
More revenue and profits were generated in 20Y6 and despite the increased number of shares outstanding, the EPS for 20Y6 performed better than 20Y5's.
Explanation:
a) Data and Calculations:
20Y5 20Y6
Net income $1,324,000 $2,630,000
Preferred dividends $50,000 $50,000
Earnings available to common
stockholders $1,274,000 $2,580,000
Average number of
common shares outstanding 70,000 shares 120,000 shares
Earnings per share (EPS) $18.20 $21.50
($1,274,000/70,000) ($2,580,000/120,000)
Marketing covers several elements and concepts. At the center of all marketing efforts is:
At the center of all marketing efforts is the customer for understanding and meeting customer needs, wants and preferences is the primary focus of marketing.
The customer centric involves identifying target markets, conducting market research and developing products or services that resonate with consumers.
The effective marketing strategies aim to create value for customers, build strong relationships, and satisfy their demands better than competitors.
The customer serves as the guiding force that shapes marketing strategies and determines their success in the ever-evolving marketplace.
To know more about marketing here,
https://brainly.com/question/33994447
#SPJ6
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company.
For each cost, indicate whether it would most likely be classified as direct labor, direct materials, manufacturing overhead, selling, or an administrative cost.
1. The wages of the assembly shop's supervisor.
a. Direct labor cost
b. Direct materials cost
c. Manufacturing overhead cost
d. Marketing and selling cost
e. Administrative cost
2. The wages of the company's accountant.
a. Direct labor cost
b. Direct materials cost
c. Manufacturing overhead cost
d. Marketing and selling cost
e. Administrative cost
3. Depreciation on equipment used to test assembled computers before release to customers.
a. Direct labor cost
b. Direct materials cost
c. Manufacturing overhead cost
d. Marketing and selling cost
e. Administrative cost
4. Rent on the facility in the industrial park.
a. Direct labor cost
b. Direct materials cost
c. Manufacturing overhead cost
d. Marketing and selling cost
e. Administrative cost
Answer and Explanation:
The classification is as follows;
1. Since the wages are to paid for supervising the assembling process so the same is related to the factory operations therefore considered to be the manufacturing overhead cost
2. The wages paid to the accountant so classified as the administration cost
3. The depreciation is the manufacturing overhead cost as it is the indirect cost.
4. The rent facility should be classified as the manufacturing overhead cost and distributed as per the cost drivers.
Explain AHIMA's data quality management model, including the domains it covers and the data characteristics
Answer:
Data Quality management: AHIMA created this model for quality data management to support the need for true and accurate data. Patient care, patient outcomes, reimbursement, process...
Hope this helped :)
Explanation:
Answer: it’s a data quality management model
Explanation:
You're trying to save to buy a new $201,000 Ferrari. You have $51,000 today that can be invested at your bank. The bank pays 5.9 percent annual interest on its accounts. How long will it be before you have enough to buy the car
Answer:
The answer is 23.92 years
Explanation:
Future value(FV) = $201,000
Present value(PV) = $51,000
Annual rate of interest(i)= 5.9%
Using a texas BA II plus calculator:
FV = 201,000
PV= -51,000
I/Y = 5.9
CPT N = 23.92 years
OR
FV = PV × (1 + i)^N
$201,000 = $51,000 × (1 + 0.05.9)^N
3.9 = (1 + 0.05.9)^N
Solving this, the number of years is 23.92 years
Consolidated Freightways is financing a new truck with a loan of $60,000 to be repaid in six annual end-of-year installments of $13,375. What annual interest rate is Consolidated Freightways paying
Answer:
9%
Explanation:
Calculation to determine What annual interest rate is Consolidated Freightways paying
Based on the information given we would be using Financial calculator to determine the ANNUAL INTEREST RATE
PV= $60,000
PMT= -$13,375
N= 6
I/Y=?
Hence:
I/Y = 9%
Therefore annual interest rate that Consolidated Freightways is paying will be 9%
A company decides to introduce a line of crackers made with organically grown grains and vegetables. What environmental trend is the company responding to?
Feedback is important in improving our performance, and we should solicit feedback, and not just wait until someone provides us with feedback
a. True
b. False
A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 80%. If it is known that returns are normally distributed with a mean of 8%, what is the risk, measured by standard deviation, that this investment manager assumes in his calculation
Answer:
9.5%
Explanation:
we solve for the z value using
z = barX - μ/σ
= 0-0.08/σ
= p(x>0) = 0.80
1-0.80 = 0.20
0-0.08/σ = 0.20
using the z calculator we find the z score using a p value of 0.20
= -0.842
0-0.08/σ = -0.842
-0.08 = -0.842σ
Divide through by -0.842
0.08/0.842 = σ
0.095 = σ
The risk measured by the standard deviation at 80%= 9.5%
Thank you
Suppose that city leaders want to prevent the price of AA batteries from rising when tornadoes threaten Tulsa, Oklahoma. They impose a price ceiling of $8 for packages of AA batteries. c. This price ceiling of $8 per pack will impact the AA battery market during a typical week. d. What are quantity demanded and quantity supplied with the price ceiling in effect during the weeks when tornadoes threaten Tulsa
I have attached the word document below, it includesall the necessary information. I hope it will be helpful.
Answer:
The market for packs of AA batteries during a typical week in Tulsa, Oklahoma is described in the table below. Price (dollars)
$20
18
16
14
12
10
8
6 AA Battery Market
Quantity of Batteries
Explanation:
I have attached the document in which the answer is explained in quite detail. I hope this will help. Thanks
Donuts or Doughnuts: Homer's bakery in Brooklyn has the following short run production function for donuts: where q measures the amount of donuts per hour and L measures the quantity of labor hours. In the short run over what range of labor hours will diminishing marginal returns occur with each labor hours hired
Answer:
do you have a picture of a graph
Explanation:
In the market for tomatoes, assume the market demand is perfectly inelastic and the market supply is inelastic. If a tax is placed on the suppliers in this market, how will the tax burden be distributed
Answer:
Consumers will bear all the tax
Explanation:
O Consumers will bear a greater burden of the tax, but not all the tax. O Consumers and producers will bear the tax burden equally O Producers will bear all the tax Consumers will bear all the tax O Producers will bear a greater burden of the tax, but not all of the tax.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
The party with the less elastic demand bears the tax burden
COST OF PRODUCTION (5 pts each for a total of 25 pts) a. What is the relationship between the marginal cost of production and average total cost of production? b. What is efficient scale of production? c. Why is the average total cost curve (ATC) U-shaped in the short run? d. Why is the average total cost curve (ATC) U-shaped in the long run? e. What are the shapes of the average variable cost curve (AVC) and the average fixed cost curve (AFC)?
Answer:
a. When marginal cost is above average cost, average cost is rising; but when marginal cost is below average cost, average cost is falling.
b. The lowest point at which a plant or firm can produce such that the long-run average cost of the plant or firm is at the minimum.
c. The average total cost curve (ATC) U-shaped in the short run because of diminishing returns.
d. The average total cost curve (ATC) is U-shaped in the long run because economies of scale and diseconomies of scale.
e. The shape of the average variable cost curve (AVC) is usually U-shaped or upward-sloping; while the shape of the average fixed cost curve (AFC) is a Rectangular Hyperbola.
Explanation:
a. What is the relationship between the marginal cost of production and average total cost of production?
Marginal cost refers to the change in total cost when extra unit of output is produced, while average cost is the total cost divided by the number of units produced.
The relationship between the two is that when marginal cost is above average cost, average cost is rising; but when marginal cost is below average cost, average cost is falling.
b. What is efficient scale of production?
Efficient scale of production can be described as the lowest point at which a plant or firm can produce such that the long-run average cost of the plant or firm is at the minimum.
c. Why is the average total cost curve (ATC) U-shaped in the short run?
The average total cost curve (ATC) U-shaped in the short run because of diminishing returns.
Diminishing returns occur when the amount of a single factor of production is incrementally increased while holding all other factors of production constant, the marginal output of a production process decreases.
d. Why is the average total cost curve (ATC) U-shaped in the long run?
The average total cost curve (ATC) is U-shaped in the long run because economies of scale and diseconomies of scale.
Economies of scale can be described as a situation whereby increasing output leads to lower long-run average total costs.
But, after a given level of output, scale diseconomies may be encountered by a firm.
Diseconomies of scale can be described as a situation whereby increasing output leads to higher long-run average total costs.
e. What are the shapes of the average variable cost curve (AVC) and the average fixed cost curve (AFC)?
Note: See the attached photo for the curves of the AVC and AFC showing their shapes.
The shape of the average variable cost curve (AVC) is usually U-shaped or upward-sloping.
The shape of the average fixed cost curve (AFC) is a Rectangular Hyperbola. This occurs because the same amount of fixed cost is split by increasing output. Therefore, the AFC curve slopes downwards and is a rectangular hyperbola, meaning that the area under the curve is constant at all places.
Pepsi had accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Coke had a turnover ratio of 9.3 this year and 9.9 last year. This implies:______.
1. Coke has the better turnover for both years
2. Pepsi has the better turnover for both years
3. Coke's turnover is improving
4. Coke's credit policies are too loose
5. Coke is collecting its receivables more quickly than Pepsi in both years
The following units of an inventory item were available for sale during the year. Beginning inventory 10 units at $55 First purchase 25 units at $60 Second purchase 30 units at $65 Third purchase 15 units at $70 The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The ending inventory cost using FIFO is
Answer:
$1,375
Explanation:
Given the information above, the Ending inventory = Units available - Units sold
Units available = 10 + 25 + 30 + 70 = 80
Units sold = 60
Ending inventory = 80 - 60
Ending inventory = 20
Cost of ending inventory under FIFO
= (15 × $70) + (20 - 15) × $65
= $1,050 + $325
= $1,375
Therefore, the ending inventory cost using FIFO is $1,375
Montana Industries has computed the following unit costs for the year just ended:
Variable manufacturing overhead $85
Fixed manufacturing overhead 20
Variable selling and administrative cost 18
Fixed selling and administrative cost 11
Which of the following choices correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing?
a. Variable, $85; absorption, $105.
b. Variable, $85; absorption, $116.
c. Variable, $103; absorption, $116.
d. Variable, $103; absorption, $105.
e. None of the answers is correct.
Answer:
a. Variable, $85; absorption, $105.
Explanation:
The options that correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing is:
i. Variable costing = Variable manufacturing overhead
Variable costing = $85
ii. Absorption costing = Variable manufacturing overhead + Fixed manufacturing overhead
Absorption costing = $85 + $20
Absorption costing = $105
The condensed financial statements of Ness Company for the years 2016 and 2017 are presented below.
NESS COMPANY
Balance Sheets
December 31 (in thousands)
2017 2016
Current assets
Cash and cash equivalents $330 $360
Accounts receivable (net) 47 400
Inventory 46 390
Prepaid expenses 130 160
Total current assets 1,390 1,310
Property, plant, and equipment (net) 410 380
Investments 10 10
Intangibles and other assets 530 510
Total assets $2,340 $2,210
Current liabilities $820 $790
Long-term liabilities 480 380
Stockholders’ equity—common 1,040 1,040
Total liabilities and stockholders’ equity $2,340 $2,210
NESS COMPANY
Income Statements
For the Year Ended December 31 (in thousands)
2017 2016
Sales revenue $3,800 $3,460
Costs and expenses
Cost of goods sold 970 890
Selling & administrative expenses 2,400 2,330
Interest expense 10 20
Total costs and expenses 3,380 3,240
Income before income taxes 420 220
Income tax expense 168 88
Net income $ 252 $ 132
Compute the following ratios for 2017 and 2016. (Round current ratio and inventory turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.)
(a) Current ratio.
(b) Inventory turnover. (Inventory on December 31, 2015, was $340.)
(c) Profit margin.
(d) Return on assets. (Assets on December 31, 2015, were $1,900.)
(e) Return on common stockholders’ equity. (Equity on December 31, 2015, was $900.)
(f) Debt to assets ratio.
(g) Times interest earned.
Answer:
Ness Company
2017 2016
(a) Current ratio = 1.70 1.66
(b) Inventory turnover = 4.45 2.44
(c) Profit margin = 6.63% 3.82%
(d) Return on assets. (Assets on December 31, 2015, were $1,900.)
= 10.77% 5.97%
(e) Return on common stockholders’ equity. (Equity on December 31, 2015, was $900.)
= 24.23% 12.69%
(f) Debt to assets ratio = 0.56 0.53
(g) Times interest earned = 43X 12X
Explanation:
Condensed Financial Statements:
NESS COMPANY
Balance Sheets
December 31 (in thousands)
2017 2016
Current assets
Cash and cash equivalents $330 $360
Accounts receivable (net) 47 400
Inventory 46 390
Prepaid expenses 130 160
Total current assets 1,390 1,310
Property, plant, and equipment (net) 410 380
Investments 10 10
Intangibles and other assets 530 510
Total assets $2,340 $2,210
Current liabilities $820 $790
Long-term liabilities 480 380
Stockholders’ equity—common 1,040 1,040
Total liabilities and stockholders’ equity $2,340 $2,210
NESS COMPANY
Income Statements
For the Year Ended December 31 (in thousands)
2017 2016
Sales revenue $3,800 $3,460
Costs and expenses
Cost of goods sold 970 890
Gross profit $2,830 $2,570
Selling & administrative expenses 2,400 2,330
EBIT $430 $240
Interest expense 10 20
Total costs and expenses 3,380 3,240
Income before income taxes 420 220
Income tax expense 168 88
Net income $ 252 $ 132
(a) Current ratio = Current assets/Current liabilities
= $1,390/$820 = 1.70 1.66 (1,310/$790)
(b) Inventory turnover. (Inventory on December 31, 2015, was $340.)
= Cost of goods sold/Average Inventory
= $970/$218 = 4.45 2.44 ($890/$385)
Average inventory for 2016 = $365 ($390 + $340)/2
Average inventory for 2017 = $218 ($46 + $390)/2
Cost of goods sold for 2017 = $970 and 2016 = $890
(c) Profit margin = Net income/Sales
= 6.63% ($252/$3,800 *100) 3.82% ($132/$3,460 * 100)
(d) Return on assets. (Assets on December 31, 2015, were $1,900.)
= Net income/Total assets
= 10.77% ($252/$2,340 * 100) 5.97% ($132/$2,210 * 100)
Average assets for 2017 = $2,275 ($2,340 + $2,210)/2
Average assets for 2016 = $2,055 ($2,210 + $1,900)/2
(e) Return on common stockholders’ equity. (Equity on December 31, 2015, was $900.)
= Net income/Common stockholders' equity
= 24.23% ($252/$1,040 * 100) 12.69% ($132/$1,040 * 100)
(f) Debt to assets ratio = Total Debt/Total Assets
= 0.56 ($1,300/$2,340) 0.53 ($1,170/$2,210)
(g) Times interest earned = EBIT/Interest
= 43X ($430/$10) 12X ($240/$20)
short term finance is required for 5 years true or false
Answer:
yeah, its true
Explanation:
A company is considering dropping a product line. What costs would be relevant to the decision? What costs would be irrelevant? Why? (MO 2)'
Answer:
Relevant cost : Avoidable cost
Irrelevant cost : Sunk costs and future costs
Explanation:
Dropping or retaining a product line by a company depends on the effect of the product line on the net operating income of the company i.e. if the net income is decreased because of a product line then the product line should be dropped and vice versa.
Relevant costs to the dropping of a product line
Avoidable costs is a relevant cost that should be considered when dropping a product line
Irrelevant costs
Sunk costs ( i.e. past operational costs )
and future costs
All of the following are examples of qualitative information that should be collected by the financial planner EXCEPT: Group of answer choices General attitudes towards spending. Risk tolerance. Client age and number of children. Education goals.
Answer:
Client age and number of children.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on a periodic basis.
A financial planner refers to an individual who is an expert in the planning of a financial budget for another.
A client age and number of children aren't examples of qualitative information that should be collected by the financial planner.
Consider a model in which two products, x and y, are produced. There are 30 pounds of material and 60 hours of labor available. It requires 9 pounds of material and 12 hours of labor to produce a unit of x, and 5 pounds of material and 15 hours of labor to produce a unit of y. The profit for x is $300 per unit, and the profit for y is $250 per unit.
Required:
How many units of x and y to produce to maximize profit, the model is
Answer:
2 units of x and 2 units of y
Explanation:
The model can be represented as:
[tex]\begin{array}{cccc} & {x} & {y} & {} & {Materials} & {9} & {5} & {30} & {Labor} & {12} & {15} & {60} & {} & {300} & {250} \ \end{array}[/tex]
So, we have:
Max [tex]z = 300x + 250y[/tex] --- the objective function
Subject to:
[tex]9x + 5y \le 30[/tex]
[tex]12x + 15y \le 60[/tex]
[tex]x,y > 0[/tex]
Multiply the first equation by 3
[tex]9x + 5y \le 30[/tex] becomes
[tex]27x + 15y \le 90[/tex]
Subtract [tex]12x + 15y \le 60[/tex] from [tex]27x + 15y \le 90[/tex]
[tex]27x - 12x + 15y - 15y \le 90 - 60[/tex]
[tex]15x \le 30[/tex]
Divide by 15
[tex]x \le 2[/tex]
Substitute 2 for x in [tex]9x + 5y \le 30[/tex]
[tex]9 * 2 + 5y \le 30[/tex]
[tex]18 + 5y \le 30[/tex]
Collect like terms
[tex]5y \le 30 - 18[/tex]
[tex]5y \le 12[/tex]
Divide by 5
[tex]y \le 2.4[/tex]
y must be an integer;
So:
[tex]y \le 2[/tex]
So, we have:
[tex](x,y) \le (2,2)[/tex]
Hence, the company must product 2 units of x and 2 units of y
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,100 units at $300 each) $ 3,030,000 Variable costs (10,100 units at $240 each) 2,424,000 Contribution margin 606,000 Fixed costs 468,000 Pretax income $ 138,000 Exercise 18-17 Target income and margin of safety (in dollars) LO C2 1. Assume Hudson Co. has a target pretax income of $167,000 for 2020. What amount of sales (in dollars) is needed to produce this target income
Answer: $3,175,000
Explanation:
Sales in dollars needed to produce the target income is calculated by the formula:
= (Fixed assets + Target pretax income) / Contribution margin per unit * Selling price
Contribution margin per unit = Contribution margin / Units sold
= 606,000 / 10,100
= 60 units sold
Sales in dollars needed are:
= (468,000 + 167,000) /60 * 300
= $3,175,000
