Answer:
The level of operating income (EBIT) where the firm will be indifferent between the two plans is $33 million.
Explanation:
Indifferent level of EBIT refers to the EBIT level where the he Earnings Per Share (EPS) two alternative financial plans are the same.
Indifferent level of EBIT can be calculated using the following formula:
[(EBIT - FB) * (1 - T)] / SA = [(EBIT - FB) * (1 - T)] / SB .................... (1)
Where:
EBIT = Indifference level of EBIT
FA = Fixed interest costs under plan B = Interest on existing debt = $150 * 8% = $12 million
FB = Fixed interest costs under plan A = Interest on existing debt + Interest on new debt = ($150 * 8%) + ($60 * 10%) = $18 million
T = Tax rate = 40%, or 0.40
SA = Number of equity shares outstanding under Plan B = Existing number of shares + New number of shares = 10 million + ($60 million / $15) = 10 million + 4 million = 14 million
SB = Number of equity shares outstanding under Plan A = Existing number of shares = 10 million
Substiuting the values into equation (1) and solve for EBIT, we have:
[(EBIT - 12) * (1 - 0.40)] / 14 = [(EBIT - 18) * (1 - 0.40)] / 10
[(EBIT - 12) * 0.60] / 14 = [(EBIT - 18) * 0.60] / 10
[EBIT0.60 - 7.20] / 14 = [(EBIT0.06 - 10.80] / 10
[EBIT0.60 - 7.20] * 10 = [(EBIT0.06 - 10.80] * 14
EBIT6 - 72 = EBIT8.40 - 151.20
-72 + 151.20 = EBIT8.40 - EBIT6
EBIT2.40 = 79.20
EBIT = 79.20 / 2.40
EBIT = $33 million
Therefore, the level of operating income (EBIT) where the firm will be indifferent between the two plans is $33 million.
In a(n) _____ decision, there may be several "right" answers, and there is no precise way to get a right answer. A. recurring B. ad hoc C. nonstructured D. structured
Answer:
C. nonstructured
Explanation:
-Recurring decision refers to a decision that has to be made regularly.
-Ad hoc decision refers to a decision made for a specific situation.
-Nonstructured decision is a decision that can have multiple solutions that are correct and you don't have a form to define which one is the right option.
-Structured decision is when you make a decision using a process that has been established to manage a specific situation.
According to this, the answer is that in a(n) nonstructured decision, there may be several "right" answers, and there is no precise way to get a right answer.
Suppose that you have an old car that is a real gas guzzler. It is 10 years old and could be sold to a local dealer for $ cash. The annual maintenance costs will average $ per year into the foreseeable future, and the car averages only miles per gallon. Gasoline costs $ per gallon, and you drive miles per year. You now have an opportunity to replace the old car with a better one that costs $. If you buy it, you will pay cash. Because of a 2-year warranty, the maintenance costs are expected to be negligible. This car averages miles per gallon. Should you keep the old car or replace it? Utilize a 2-year comparison period and assume that the new car can be sold for $ at the end of year 2. Assume that the salvage value of the old car at the end of year 2 will be $0. Ignore the effect of income taxes and let your MARR be %.
Answer:
you should replace the old car with a newer and more efficient one
Explanation:
all the numbers are missing, so I looked them up:
current sale value of old car $400
maintenance costs per year $800
gasoline expense per year = $3.50 x 1/10 x 15,000 = $5,250
resale value in 2 years = $0
cost of replacing old car = $8,000
maintenance costs per year $0
gasoline expense per year = $3.50 x 1/30 x 15,000 = $1,750
resale value in 2 years = $5,000
MARR = 15%
if you keep the old car, your net cash flows will be:
Year 1 = -$6,050
Year 2 = -$6,050
if you change your car, your net cash flows will be:
Year 0 = -$8,000 + $400 = -$7,600
Year 1 = -$1,750
Year 2 = $3,250
keeping the old car results in a NPV = -$6,050/1.15 - $6,050/1.15² = -$5,260.87 - $4,574.67 = -$9,835.54
changing for a new car results in a NPV = -$7,600 -$1,750/1.15 + $3,250/1.15² = -$7,600 -$1,521.74 + $2,457.47 = -$6,664.27
since both options result in negative cash flows, we must select the option that results in a smaller loss
What is the internal rate of return of a project costing $3,000; having after-tax cash flows of $1,500 in each of the two years of its two-year life; and a salvage value of $800at the end of the second year in addition to the $1,500 cash flow
Answer:
Internal rate of return = 16.3%
Explanation:
The IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero
If the IRR greater than the required rate of return , we accept the project for implementation
If the IRR is less than that the required rate , we reject the project for implementation
IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%
Step 1 : Calculate NPVa at 10%
NPV = PV of cash inflow - Initial cost
PV of cash inflow = 1500× ( 1- 1.1^(-2))/0.1=2,603.31
PV of salvage value = 800× 1.1^(-2) =661.16
NPV = 2,603.31 + 6,661.16 - 3000= 264.46
Step 2 :Calculate NPVb at 20%
PV of cash inflow = 1500× ( 1- 1.2^(-2))/0.2=2291.67
PV of salvage value = 800× 1.2^(-2) =555.56
NPV =2291.67 + 555.56 - 3,000 = -152.78
Step 3 : Calculate IRR
IRR = 10% + (264.46/(264.46+152.78))× (20-10)%= 16.3%
Internal rate of return = 16.3%
Murie Corporation makes one product and has provided the following information: Budgeted selling price per unit $ 98 per unit sold Budgeted unit sales, February 11,000 units Raw materials requirement per unit of output 5 pounds Raw materials cost $ 3.00 per pound Direct labor requirement per unit of output 2.5 direct labor-hours Direct labor wage rate $ 18.00 per direct labor-hour Predetermined overhead rate (all variable) $ 11.00 per direct labor-hour Variable selling and administrative expense $ 2.70 per unit sold Fixed selling and administrative expense $ 80,000 per month The estimated net operating income (loss) for February is closest to:
Answer:
Net operating income= $5,800
Explanation:
Giving the following information:
Selling price= $98 per unit
Sales= 11,000 units
Variable cost per unit= (5*3) + (2.5*18) + (2.5*11) + 2.7= $90.2
Fixed selling and administrative expense $ 80,000 per month
Contribution margin income statement:
Sales= 98*11,000= 1,078,000
Total variable cost= (90.2*11,000)= (992,200)
Contribution margin= 85,800
Fixed costs= (80,000)
Net operating income= 5,800
The estimated Net operating income for February should be considered as the $5,800.
Giving that:
Selling price per unit is $98.Sales in February is 11,000 units.Fixed selling and administrative expense per month is $80,000.Calculation of the estimated net operating income;Variable cost / unit = ( 5 [tex]\times[/tex] 3 ) + ( 2.5 [tex]\times[/tex] 18 ) + ( 2.5 [tex]\times[/tex] 11 ) + 2.7
= $90.2
Now, we calculate contribution margin,
Total Sales value = $98 [tex]\times[/tex] 11,000 = $1,078,000
Total variable cost = $90.2 * 11,000 = $992,200
Contribution margin = Total Sales value - Total variable cost
= $1,078,000 - $992,200
= $85,800
Now, we can calculate net operating income by using following formula,
Net operating income = Contribution margin - Fixed selling and administrative expense
Net operating income = $85,800 - $80,000
Net operating income= 5,800
Learn more about net income : https://brainly.com/question/15745630
Bi-Lo Traders is considering a project that will produce sales of $33,300 and have costs of $19,700. Taxes will be $3,500 and the depreciation expense will be $1,900. An initial cash outlay of $1,600 is required for net working capital. What is the project's operating cash flow?
Answer: $10,100
Explanation:
Based on the information that have been given in the question, the project's operating cash flow goes thus:
Sales. $33,300
Less: cost. $19,700
Less: depreciation. $1,900
Profit before tax $11,700
Less: tax. $3500
Net profit. $8200
Add: depreciation. $1900
Operating cash flow. $10,100
The Golden Company issues of %, 10year bonds at on March 31, 2019. The bonds pay interest on March 31 and September 30. Assume that the company uses the straightline method for amortization. The journal entry to record the issuance includes a
Answer:
Debit to Cash for $560,560
Explanation:
Based on the information given we were told that the Company issues the amount of $539,000 at 104 on March 31 2019 this means that the journal entry to record the issuance will includes a:
Debit to Cash for $560,560.
Calculated as :
Cash received = $539,000 × 104%
Cash received = $560,560
During 2021, Deluxe Leather Goods issued 707,000 coupons which entitles the customer to a $5.00 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 71% of the coupons will be redeemed. 261,000 coupons had been processed during 2021. Deluxe recognizes coupon expense in the period coupons are issued. At December 31, 2021, Deluxe should report a liability for unredeemed coupons of:
Answer:
Deluxe should report a liability for unredeemed coupons of $1,204,850
Explanation:
Estimated coupons to be redeemed $501,970
(707,000 * 71%)
Less: Coupons redeemed $261,000
Coupons unredeemed $240,970
X Cost per Coupon 5.00
Liability for unredeemed Coupons $1,204,850
Assuming a bottom-up process of budget development, which of the following should be initially responsible for developing sales estimates?
a. The budget committee.
b. The accounting department.
c. The sales department.
d. Top management.
e. The marketing department.
Answer: The Sales Department
Explanation:
In budgeting, a bottom-up approach simply means that each head of department in the organization create a budget that'll be sent upwards for approval.
Assuming a bottom-up process of budget development, the sales department should be initially responsible for developing sales estimate.
O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,810,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,000,000. The following information is available: Indiana proposal Kentucky proposal Required investment $1,810,000 $2,000,000 Estimated life 6 years 6 years Estimated residual value $80,000 $40,000 Estimated annual cash inflows over the next 10 years $700,000 $800,000 Required rate of return 13% 13% The accounting rate of return for the Indiana proposal is closest to (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.)
Answer:
O'Mally Department Stores
The accounting rate of return for the Indiana proposal is closest to 24.28%
Explanation:
a) Data and Calculations:
Indiana proposal Kentucky proposal
Required investment $1,810,000 $2,000,000
Estimated life 6 years 6 years
Estimated residual value $80,000 $40,000
Estimated depreciable cost $1,730,000 $1,960,000
Average depreciable cost $288,333 $326,667
Estimated annual cash inflows
over the next 10 years $700,000 $800,000
Average cash inflows $70,000 $80,000
Required rate of return 13% 13%
Accounting rate of return = Average cash inflows/Average depreciable cost x 100 = $70,000/$288,333 x 100 = 24.28%
The Indiana proposal of O'Mally Department Stores' accounting rate of return is the ratio of estimated accounting profit to the average investment cost. The estimated accounting profit is equivalent to the average cash inflow and the average investment cost is equivalent to the average depreciable cost.
1. A research project began with the selection of women who had recently had abdominal surgery. The project matched those women with controls and continued with measurements of abdominal muscle strength for both groups every three months for a year. This project was: A. Prospective study B. Retrospective study C. Experimental study D. Cross sectional study
Answer:
Abdominal rectus diastasis is a condition where the abdominal muscles are separated by an abnormal distance due to widening of the linea alba causing the abdominal content to bulge. It is commonly acquired in pregnancies and with larger weight gains. Even though many patients suffer from the condition, treatment options are poorly investigated including the effect of physiotherapy and surgical treatment. The symptoms include pain and discomfort in the abdomen, musculoskeletal and urogynecological problems in addition to negative body image and impaired quality of life. The purpose of this review was to give an overview of treatment options for abdominal rectus diastasis.
Results: The first treatment step is physiotherapy. However, evidence is lacking on which regimen to use and success rates are not stated. The next step is surgery, either open or laparoscopic, and both surgical approaches have high success rates. The surgical approach includes different plication techniques. The recurrence and complication rates are low, complications are minor, and repair improves low back pain, urinary incontinence, and quality of life. Robotic assisted surgery might become a possibility in the near future, but data are still lacking.
Conclusions: Evidence on what conservatory treatment to use is sparse, and more research needs to be done. Both open and laparoscopic surgery have shown positive results. Innovative treatment by robotic assisted laparoscopic surgery has potential, however, more research needs to be done in this area as well. An international guideline for the treatment of rectus diastasis could be beneficial for patients and clinicians.
Keywords: rectus diastasis, treatment options, physiotherapy, surgery, abdominoplasty, laparoscopy, robot assisted surgery
A firm has a long-term debt-equity ratio of .4. Shareholders’ equity is $1 million. Current assets are $200,000, and the current ratio is 2. The only current liabilities are notes payable. What is the total debt ratio?
Answer:
Total debt ratio is 33.33%
Explanation:
A long term debt to equity ratio of 0.4 tells that the value of long term debt is 0.4 or 40% of the value of the equity. If the value of the equity is $1 million, the value of long term debt is,
Long term debt = 0.4 * 1000000 = $400000
A current ratio is calculated by dividing the current assets by the current liabilities. It tells how many current assets are available to satisfy $1 of current liabilities. A current ratio of 2 means that for every $1 of current liability, $2 of current assets are available. Thus, current liabilities are half of current assets. If the value of current assets is $200000, the value of current liabilities is,
Current liabilities = 200000 * 1/2 = $100000
Total liabilities = 400000 + 100000 = $500000
A debt ratio is calculated by dividing the value of total debt or total liabilities by the value of total assets.
Total assets = total liabilities + total equity
Total assets = 500000 + 1000000
Total assets = $1500000 or $1.5 million
Total debt ratio = 500000 / 1500000
Total debt ratio = 1/3 or 0.3333 or 33.33%
Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 155,000 kites (the local currency unit) and liabilities of 100,000. During this initial year of operation, the subsidiary reported a profit of 49,000 kites. It distributed two dividends, each for 7,300 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:
January 1, 2017 (start of business) $0.80
March 1,2017 0.78
Weighted average rate for 2017 0.77
October 1,2017 0.76
December 31, 2017 0.75
Required:
a. Assume that the kite is this subsidiary's functional currency. What transfation adjustment would Board report for the year 2017?
b. Assume that on October 1,2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 200,000 kites in three months at a forward exchange rate of $0.76/1 kite. Prepare the journal entries required by this forward contract.
c. Compute the net translation adjustment for Board to report in Accumulated Other Comprehensive Income for the year 2017 under this second set of circumstances.
Answer:
a. The Board would report translation adjustment of -$3,138.
b. See the journal entries and explanation below.
c. Net translation adjustment is -$1,138.
Explanation:
a. Assume that the kite is this subsidiary's functional currency. What translation adjustment would Board report for the year 2017?
Note: See the attached file for the calculation of translation adjustment.
The board would report a negative (debit) translation adjustment of $3,138. That is,
Translation adjustment = -$3,138
b. Assume that on October 1,2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 200,000 kites in three months at a forward exchange rate of $0.76/1 kite. Prepare the journal entries required by this forward contract.
Board Company
Journal Entries
Date Account titles and Explanation Debit ($) Credit ($)
01 Oct 17 (No entry)
12 Dec 17 Forward contract 2,000
Translation adjustment (positive) (w.1) 2,000
(To record forward contract change in the value to adjust translation adjustment.)
12 Dec 17 Foreign currency (kites) (w.2) 152,000
Cash 152,000
(To record 200,000 kites purchased at the spot rate of $0.76)
12 Dec 17 Cash 154,000
Foreign Currency (kites) 152,000
Forward contract 2,000
(To record 200,000 kites delivered, $154,000 received, and close the forward contract account.)
Workings:
w.1: Translation adjustment = Number of kites agreed to sell in three months * (Agreed exchange rate on October 1, 2017 per kite - Exchange rate on December 1, 2017) = 200,000 * (0.76 - 0.75) = $2,000
w.2: Foreign Currency (kites) = Number of kites agreed to sell in three months * Agreed exchange rate on October 1, 2017 per kite = 200,000 * 0.76 = $152,000
c. Compute the net translation adjustment for Board to report in Accumulated Other Comprehensive Income for the year 2017 under this second set of circumstances.
This can be calculated as follows:
Net translation adjustment = Negative translation adjustment in part a + Positive translation adjustment in part b (i.e. w.1) = -$3,138 + 2,000 = -$1,138
Therefore, net translation adjustment is -$1,138.
2. “An American woman executive is sent to negotiate a contract with a corporation in Saudi Arabia. She dresses conservatively in a dark business suit and completes her makeup and hair in the US fashion. She finds the Arabs to be very aloof. She is asked when her boss will be arriving and is feeling ignored.”
a. What mistakes have been made?
b. What can be done to correct such a situation?
Answer:
1. The mistakes she made include:
1. Dressing like a male when it was expected that she should dress like a female.
2. Not wearing a feminine cloth but rather a suit.
3. She wearing a makeup.
4. She fixing her hear but not covering it with hijab.
b. She could have done the following to fix it:
1. Making researches on how best to dress when in Saudi Arabia.
2. Wearing a long covering cloth.
3. Covering her hair with Hijab despite not been from their culture and country.
Explanation:
If government spends $80 billion at each level of GDP, and imposes a lump-sum tax of $100 then equilibrium GDP will be:_________
Answer: $350
Explanation: The equilibrium GDP or output of an economy is such that an economy output is level or equal to the total amount of planned spending. it is usually equal to the amount produced, or GDP. which is, equilibrium GDP = ( C + Ig ). Consumption expenditures usually rise with GDP while planned gross investment expenditures are independent of whatever level the GDP gets to.
Calculate the future value of an investment of $463 for 10 years earning an interest of 9%? (Round your answers to 2 decimal places.)
Answer:
$1,096.09
Explanation:
The computation of the future value by using the following formula is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
= $463 × (1 + 0.09)^10
= $463 × 2.367363675
= $1,096.09
We simply applied the above formula so that the future value could arrive and the same is to be considered
In your own words, assess the process of international strategy, competencies, planning, and international competitive advantage.
Explanation:
An international strategy can be understood as the set of processes and action plans that a company will implement to achieve its objectives in an external market.
An organization decides to internationalize its activities with the objective of conquering a different market that can bring different competitive and financial benefits to the company.
To be successful, the organizational strategy must comprise the set of requirements that must be followed to include itself in a different market, such as, for example, the set of policies that will guide the operation of the business.
In addition, it is necessary to plan its activities in such a way that they are in line with the fundamental requirements of the country, such as multicultural norms, values, tastes, preferences, etc.
Companies generally use internationalization as a competitive strategy, since this can be an effective means of reducing costs, due to the cheaper labor and the less bureaucratic process. A well-positioned brand also guarantees a differential that adds to the ease of an organization being successful in the process of conquering new markets.
While spring cleaning, Ramon found an entire box of unreported receipts for his sole proprietor business. Ramon wants to amend his return to claim these business deductions. Which form(s) and/or schedule(s) does he need to send to the IRS to amend the return
Answer:
3. Form 1040X, Schedule C, and any other forms or schedules affected by the change in his income.
Explanation:
This question is missing the possible answers:
Form 1040X. Form 1040X and a copy of his original return. Form 1040X, Schedule C, and any other forms or schedules affected by the change in his income. Form 1040X, Schedule C, and a copy of each receipt left off the original returnThe IRS requests that any change or amendment to a tax return must include a copy of all the tax forms and/or schedules that were presented with the original filing that is being amended. If the amendment affects more than 1 filing, you must include all the forms and schedules that were filed before and are being affected by the amendment.
Which of the following types of decisions involves deciding whether to perform a particular activity in-house or purchase it from an outside supplier?
A. Special-order
B. Make-or-buy
C. Continue or discontinue
D. Sell-or-process further
Answer: Make-or-buy
Explanation:
The decision that involves deciding whether to perform a particular activity in-house or purchase it from an outside supplier is regarded to as the Make-or-buy.
A company can decide to purchase a particular activity when it sees that it's cheaper or when the company wants to focus on other aspects of production.
At January 1, 2019, the Accrued Warranty Payable is . During 2019, the company recorded Warranty Expense of . During 2019, the company replaced defective products in accordance with product warranties at a cost of . What is the Accrued Warranty Payable at December 31, 2019?
Answer: A.$8,800
Explanation:
The Accrued Warranty Payable Balance for the year ending December 2019 will take into account the Warranty expenses that were old less the warranty expenses that have been paid for already with the formula;
= Opening Accrued Warranty payable + Warranty Expense recorded for the Year - Warranty Expenses Paid in the year
= 1,800 + 19,400 - 12,400
= $8,800
Answer:
jus 2 ez pz lemon squeezey ppppppp
Explanation:
In the _____ stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand.
Answer: maturity
Explanation:
The product life cycle is the time used by a product from the day the product is introduced into the market till the day it's withdrawn. The four stages of the product life cycle are the introduction stage, the growth, the maturity stage and finally the decline stage.
In the maturity stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand.
"A small business owner of a firm that has 25 employees wants to establish a retirement plan and make contributions for her employees. What type of plan can the employer establish?"
Answer:
SEP IRA
Explanation:
For this type of company, the best type of plan would be a SEP IRA. This refers to a Simplified Employee Pension Plan and is a plan that is set up by an employer, with deductible contributions made by the employer themselves. The employer sets the actual contribution rate when creating the plan, and provides all employees the same contribution rate. The annual contribution of such an account is capped at $56,000 in 2019 and the individuals may withdraw the total amount of the account tax-free when they turn 59 1/2 years old.
A loan is being amortized by means of level monthly payments at an annual effective interest rate of 8%. The amount of principal repaid in the 12th payment is 1000 and the amount of principal repaid in the tth payment is 3700. Calculate t.
Answer:
Option D. 216
Explanation:
The value of "t" can be calculated using the compounding formula given as under:
Principal Amount * (1 + r)^(t-n)/n = Future Value
Here
Principal Amount is $1,000
r is 8%
n is the number of payment which is 12th here
Future Value is $3,700
By putting values, we have:
$1,000 * (1 + 8%)^(t-12)/12 = $3,700
(1.08)^ (t-12)/12 = 3.7
By taking natural log on both sides:
(t-12)/12 = 17
t = 216
2. Roth retirement funds require you to pay taxes on your investment dollars up-front, while
traditional IRAs allow you to pay taxes only when you withdraw your investment at age 59.5 or
older. What are the pros and cons of each option?
(10 points: 5 for at least one pro and 5 for at least con)
Answer:
The Pros and Cons of Roth IRA and the Traditional IRA or 401(K):
Roth IRA is not advantageous to those, who are starting to save late in their career. It favors the younger worker, who is starting out with low-paying jobs at lower-paying tax rates, who will later be earning more.
With Roth IRA, you suffer the tax burden upfront when you are active and while making your contributions, so that you can enjoy your retirement benefits tax-free. This is why the younger worker benefits more. In the prime of life with little responsibilities, you can settle the taxman so that you can be free of him later in older age. But, if you are in the high tax bracket, this category is not funny for you, anyway. The IRS has an income limit for this category, therefore, you must go for the traditional IRA.
The traditional IRA saves you the tax burden initially, but you can never be free of the IRS. It must take its share later, having allowed you to enjoy tax-free contributions. When the net is filled, the IRS cuts its percentage off.
You will never feel bad then, because your tax rate will surely be reduced in comparison with when you are making the contributions. So, it is just and right to allow the IRS, who generously helped you to grow the nest in the first place to take its just and lawful cut. It does not bleed too much then, afterall you are drying up with life's responsibilities, including reduced tax bracket, and many of your children have started answering to the IRS independently. This is the better time to deal with IRS, anyway.
Explanation:
The question has the explanation: ROTH IRAs are retirement funds that allow you to pay taxes on your investments into retirement funds as you are making the contributions, so that you are free to make your withdrawals after at least 5 years without paying additional taxes.
The traditional IRAs or the 401(K) encourage you to make your retirement contributions without paying taxes on them so that you can contribute more. Then the IRS will bounce on you to pay the taxes when you are making withdrawals having grown the investments.
IRAs mean Individual Retirement Accounts which individuals use to save and accumulate their retirement funds.
Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay. Their agreement is
Answer:
unenforceable because Agro's performance was preexisting duty.
Explanation:
In the situation being described, it can be said that their agreement is unenforceable because Agro's performance was preexisting duty. This refers to the party's offer of a performance that was already required of them under the existing contract making a modification null. In this scenario, this is exactly what is happening, Agro Excavations has already signed a contract to dig the pond and has no enforceable reason to add $15,000 to the contract price mid-project and must finish digging the pond for the agreed-upon price of the first contract.
The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations. Ignoring other factors, this is likely to result in:
Answer: decrease in interest rates and an increase in inflation
Explanation:
From the question, we are informed that The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations.
This will result in a reduction in the interest rate and since there's more money in circulation, it will bring about an increase in the prices of goods.
The following data relate to the direct materials cost for the production of 50,000 automobile tires: Actual: 725,000 lbs. at $3.00 per lb. Standard: 730,000 lbs. at $2.95 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer and Explanation:
a. The computation of the material price variance is shown below:
= Actual Quantity × (Standard Price - Actual Price)
= 725,000 × ($2.95- $3)
= 725,000 × $0.5
= $36,250 unfavorable
b. The computation of the material quantity variance is shown below:
= Standard Price × (Standard Quantity - Actual Quantity)
= $2.95 × (730,000 - 725,000)
= $2.95 × 5,000
= $14,750 favorable
And, the total direct material cost variance is
= Material price variance + material cost variance
= $36,250 unfavorable + 14,750 favorable
= $21,500 unfavorable
Which clause in a mortgage allows a lender to increase the interest rate? A.) Defeasance B.) Escalation C.) Acceleration D.) Exculpatory
Answer:
A
Explanation:
The capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10% per year, is closest to
Answer:
$15,000Explanation:
Capitalized cost = Initial cost + Interest.
Initial cost = Principal - $10,000
Interest = Principal * Rate * Time/100
Given Principal = $10,000
Rate (in %) = 10%
Time (in years) = 5 years
Interest = 10,000*10*5/100
Interest = $5000
Capitalized cost = Initial cost + Interest.
Capitalized cost = $10,000+$5,000
Capitalized cost = $15,000
Hence the capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10% per year, is closest to $15,000
Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they are to be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of the following is the best description of the product life cycle of this product?
A. Long, level beginning, and rapid ascent.B. High initial sales followed by slow decline.C. High introductory sales followed by rapid decline.D. Rapid growth followed by rapid decline.E. Moderately slow introduction, followed by modest growth, gradually leveling off.
Answer:
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Explanation:
a
Long, level beginning, and rapid ascent is the best description of the product life cycle of this product. Thus, option (a) is correct.
What is product?
The thing being sold is called a “product.” A product and service market foundation. Items are divided into two categories: industrial products and consumer products. The product is to fulfill the needs of the consumer. There was the based on the commonly are the rules in the government to follow the product management.
Product life-cycle administration is the succession of tactics implemented by company management as a product progresses through its life-cycle. The circumstances under which a product is marketed evolve over time and must be handled as it progresses through its stages. Many products are still in a mature condition.
As a result, the long, level beginning, and rapid ascent is the best description of the product life cycle of this product.
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"Your customer has been declared legally incompetent and his daughter has presented the proper legal papers appointing her as the guardian. Which statement is TRUE?"
Answer: B. Trading instructions can be accepted only from the daughter
Explanation:
The customer has been declared legally incompetent which means that he should not be making decisions that have to do with something as serious as trading instructions as he will not be able to comprehend them.
The only person that should therefore take over such roles would be his daughter who is a legal guardian. As she is not his guardian, she is able to take such decisions for him and so the trading instructions should be accepted only from the daughter.
