Stahlmaere Inc. is a start-up company that manufactures simple machines. It is interested in analyzing the profit from a new machine using Monte Carlo simulation. It wants to investigate the profit resulting from a selling price of $150 per unit. The setup and advertising costs are known to total $75,000. They assume that the demand for the product is normally distributed with a mean of 1500 units and a standard deviation of 100 units. The company estimates that the raw material cost per unit is uniformly distributed between $5 and $6. The labor cost per unit is assumed to follow a discrete uniform distribution from $12 to $16. A junior analyst has devised the following Excel spreadsheet that simulates a single scenario using the information given above: Selling price per unit = 150 Set up and advertising cost = 75000 Demand = =NORM.INV(RAND(),1500,100) Raw material cost per unit = =5+(6-5)*RAND() Labor cost per unit = =RANDBETWEEN(12,16) Profit = =(B1*B4)-B2-((B5+B6)*B4) Copy-and-paste the above information into cells A1:B8 of an Excel spreadsheet. Then use a data table to repeat the simulation 1000 times. From the simulation results, estimate Stahlmaere's expected mean profit. Understanding that simulation is random in nature and that your estimate is unlikely to match any of the answer choices exactly, choose the answer choice that is closest to the estimated mean profit.

A. $180,000
B. $50,000
C. $150,000
D. $90,000
E. $120,000

Answer:

Inverted Organization Structure

Explanation:

An Inverted Organization Structure is a structure where the employees are given more autonomy. Employees are given more prominent and important roles in the business.

I hope my answer helps you

Option B is correct because it is an example of inverted organization structure.

An Inverted Organization Structure is a organizational structure where employees are given more autonomy in their operation, that is, they are given more prominent and important roles in the company.

This type of structure is beneficial because the top hierarchy have lesser work and employee get more experience because of decision-makings.

In conclusion, the Option B is correct because it is an example of inverted organization structure

Read more about inverted organization structure

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Answer:

All of the above are possible.

Explanation:

Discussions here center on equilibrium of an economy in a long run, and here after the government activities, their is a decline in dollar value; therefore in the short run, the price level and real GDP will both rise in as much as the price level and real GDP will also both fall. It is also gathered that neither the price leave nor real GDP will change.

The transition from the short run to the long run may be done by considering some short run equilibrium that is also a long run equilibrium as to supply and demand, then comparing that state against a new short run and long run equilibrium state from a change that disturbs equilibrium, say in the sales tax rate, tracing out the short run adjustment first, then the long run adjustment.

Answer:

The correct option is (c)a shortage of 45 units.

Explanation:

Solution

Given that:

Qd=225-3P

Qs=-22.5+1.5P

Then,

Set Qd=Qs for equilibrium

225-3P=-22.5+1.5P

4.5P=247.50

P=$55

Now

The  government forces a ceiling of $45, it is binding as it is lesser than the equilibrium price.

Thus,

Let calculate the demanded quantity and supplied quantity at a price of $45

Now,

Qd=225-3*45=90

Qs=-22.5+1.5*45=45

Shortage=Qd-Qs=90-45=45 units .

Therefore, there is a shortage of 45 units.

Answer:

Arbon should report net cash outflows from investing activities of: ($26)

Explanation:

Arbon Corporation

Statement of cash flows (extract)

Purchase of machinery                                  ($36)

Proceeds from sale of land                               90

Cash paid to acquire office equipment          (80)

Net cash outflows from investing activities  ($26)

Therefore, Arbon should report net cash outflows from investing activities of ($26).

Note that reacquired stock affects the financing section of the cash flows, while gain on sale of land and investment revenue received affect the operating section of the cash flows.

Answer:

$7,400 per year

Explanation:

Data provided for computing the annual depreciation expense is here below:-

Automated bottling machine = $74,000

Useful life = 10 years

The calculation of annual depreciation expense is given below:-

Annual depreciation expense = Automated bottling machine ÷ Useful life

= $74,000 ÷ 10

= $7,400 per year

Therefore for computing the annual depreciation expense we simply divide the automated bottling machine by useful life.

Answer:

$120,000

Explanation:

According to the question, the selling price (S.P) i.e. amount to be sold, of one imported olive oil case is $20 while the cost price (C.P) i.e. amount it was purchased, is €15

Looking at the currencies of both prices, they are different. To make the currencies the same, we need to convert euros (€) to dollars ($).

Based on the exchange rate of €1.25 to $1 given in the question;

€15 will be 15/1.25 = $12.

Therefore, the C.P is $12 and the S.P is $20

A customer ordered 15,000 cases of olive oil. This means that the;

1) The cost price (C.P) will be $12 × 15,000 = $180,000

2) The selling price will be $20 × 15,000 = $300,000

In order to obtain the pretax profit, we subtract the cost price (C.P) from the selling price (S.P). That is, $300,000 - $180,000 = $120,000

Answer:

By present value old furnace should not be replaced, since  the new furnace costs more.

Explanation:

Solution

For the old furnace

Present value = - 500 - 1500 = (1 +i)^n-1/i (1+i)n

= - 500-1500 * 1.05^⁵/0.05 * 1.05^⁵

= -$6994.215

Now,

For the new furnace

The present value = - 3000 - 1200 *  1.05^⁵ - 1/0.05 * 1.05^⁵ + 1000/ (1.05)⁵

= -$7411.845

Therefore, As the new furnace costs more by present value old furnace should not be replaced

Answer: The answer is provided below

Explanation:

Strike action, is a work stoppage, that is caused by mass refusal of employees to work and it usually takes place in response to the employee grievances.

Some of the reasons for strike include:

• Low wages: Employees engage in strik as a way to show their grievances to their employers that they're not well paid and want a pay rise.

• Poor communication with the organisation: Another reason for strikes is the lack of trust between employers and the trade unions. In cases whereby workers believe their employers aren't transparent with them, strike can take place.

• Employee debt: When employees are owed certain amount of money and the employer is not doing anything reasonable about paying, the workers may strike.

• Working conditions: Workers can engage in strike in order to seek for improvement in their working conditions. This may be probably because they need better equipments, medical facilities etc.

The detrimental effects that strikes has on various stakeholders in an economy are:

Effects on employers: Strike affects business and it is vital for employers to know their rights and keep up to date with the current labour laws and legislation. Strike leads to loss of revenue for the owner and if the strike continues.for a long time, it can badly affect the business.

Effects on employees: Striking employees who belong to a union are under the obligation to strike when the union wants. They can be at risk of losing their wages and benefits such as sick and holiday pay, medical aid insurance if the strike drags continues for an extended period of time.

Effect on the economy: The impact of strike will be felt by the economy in the immediate and long term future. Strike can harm a country’s investment and reputation internationally. The GDP growth will also be affected and consequences of higher wages in some sectors would lead to higher inflation.

Explanation:

Since the CFO wants the company to be competitive in the Industry he has to upgrade the machines and equipment in time when a new technology hits the market. which makes the company to increase the depreciation expense and write of the asset as early as possible.

The members of the farm is sharing the profits and assumes no other way of remuneration or incentive, Hence there will not be any opposition in charging higher depreciation.

So it is suitable for the company to claim depreciation on Straight Line method or Double Decline method which will amortize the capital expense early.

Answer:

1. Material Variances

Material Price Variance = $3,850 F

Material Quantity Variance = $5,200 U

2. Labor Variances

Labor Rate Variance = $1,350 U

Labor Efficiency Variance = $2,100 F

Explanation:

Calculation is as follows:

1. Material Variances

Material Price Variance = (Standard Price - Actual Price) x Actual units

Material Price Variance = ($2.60 - $2.4) x 19,250 pounds

Material Price Variance = $3,850 (favorable)

As the actual rate is less than standard rate the variance is favorable.

Standard Quantity = 2,500 x 6.9 = 17,250 pounds

Material Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Rate

Material Quantity Variance = (17,250 - 19,250) x $2.60

Material Quantity Variance = $5,200 (Unfavorable)

As the actual raw material quantity used is higher than standard raw material quantity the variance is unfavorable.

2. Labor Variances

Actual Labor Rate = 4,500/450 = $10/hour

Labor Rate Variance = (Standard Rate - Actual Rate) x Actual Hours

Labor Rate Variance = ($7 - $10) x 450

Labor Rate Variance = $1,350 (Unfavorable)

As actual rate is higher than standard rate thus the variance is unfavorable.

Standard Hours = 2,500 x 0.3 = 750

Labor Efficiency Variance = (Standard Hours - Actual Hours) x Standard Rate

Labor Efficiency Variance = (750 - 450) x $7

Labor Efficiency Variance = $2,100 (Favorable)

As the Standard Hours is more than Actual Hours the variance is favorable.

Answer:

Check the explanation

Explanation:

Kindly check the attached image below to see the step by step explanation to the question above.

Answer:

$35,000

Explanation:

Crane Corporation

CASH FLOW STATEMENT

FOR THE YEAR ENDING 2020

Cash Flows from Operating Activities:

Net Income                                                                                    $25,000

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation on Fixed Assets                                                       $19,000

(Increase) Decrease in Current Assets:

Accounts Receivable                                                                     ($10,000)

Inventory                                                                                         ($10,000)

Increase (Decrease) in Current Liabilities:

Accounts Payable                                                                            $11,000

Net Cash Provided by operating activities                                  $35,000

Cash Flow from Investing Activities:                                                     -

Cash Flow from Financing Activities:                                                     -

Net Increase (Decrease) in Cash                                                    $35,000

Answer:

See the explanation below.

Explanation:

Balance in the warranty liability account after claim = $202,000 - $106,000 = $96,000

Amount needed to reduce expected warranty to $115,000 = $155,00 - $96,000 = $19,000

The journal entries will be as follows:

Details                                           Dr ($)                         Cr ($)      .

Cash                                         1,840,000

Sales revenue                                                           1,840,000

To record the sales of products                                                     .

Warranty expenses                  202,000

Estimated warranty liability                                       202,000

To record the expected warranty expenses                                  .

Warranty liability account          106,000

Inventory                                                                     106,000

To record the warranty claim                                                           .

Warranty expenses                     19,000

Estimated warranty liability                                         19,000

To record the reduction of expected warranty expenses to $115,000.

Answer:

$0

Explanation:

Since 100% of Cooper Corporation's stock were owned by Carole and Chris (who are siblings), then no one can recognize any loss or gain from the contribution of property (nor the distribution of property). Under section 351, no gain or loss can be recognized for the contribution of property in exchange for stocks in a controlled corporation.

Since the contribution was made through a carryover basis transaction less than 5 years before the liquidation, the distribution is carried out in the same way.

Answer:

a) Boom = 162.50%

Normal =20.00%

Recession = - 100.00%

b) Expected return = 27.50%

Standard deviation = 107.30%

Explanation:

a) To find the rate of return for each economy state, let's use:

Rate of return = (Dividend +Stock price next year-stock price today)/stock price today

i) For Boom:

[tex] \frac{10 + 200 - 80}{80} = 1.625 [/tex] = 162.50%

ii) Normal:

[tex]\frac{6 + 90- 80}{80} = 0.2 [/tex] = 20.00%

iii) Recession :

[tex]\frac{0 + 0 - 80}{80} = - 1 [/tex] = -100%

b) To calculate the expected rate of return, let's use:

Expected return = Sum of expected return in different scenario / number of economy states

[tex] = \frac{162.5 + 20 - 100}{3} = 27.50[/tex]

Standard deviation:

To find the standard deviation, let's use:

Standard deviation = √[(sum of square of expected return in each scenario -average return)/n]

[tex] = \sqrt{\frac{(162.50-27.50)^2+(20-27.50)^2+(-100-27.50)^2}{3}} [/tex]

[tex] = \sqrt{\frac{(135)^2 + (-7.50)^2 + (-127.50)^2}{3}} [/tex]

[tex] = \sqrt{\frac{18225+56.25+16256.25}{3} [/tex]

= 107.30%

Standard deviation = 107.30%

Answer:

Company will receive = $96,000

Explanation:

As per the data given in the question,

Corresponding SF liability equals to pay SF200,000 including interest

= 200,000÷1.05 = SF190476.19

Now Convert the SF into $US at the current spot rate = $0.48×190476.19

= $91428.57

Now deposit the $ US at 5% and withdraw after 360 days =

= $91428.57 + $91428.57×5%

= $95999.99

This way the liability of SF 190476.19 + 190476.19×5% interest will be paid off when Parker company receives $200,000, Parker company will receive = $96,000 in 360 days.

Answer:

$393,063

Explanation:

The bond is issued on discount when the issuance price is less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.

Unamortized Discount is the discount balance which has not been expensed or discount balance for outstanding period of the bond to maturity.

Discount Balance = $540,052

Date   Interest Paid  Interest Expense  Amortization Book Value

7/1/19                                                                           11,859,948

6/30/20 1,116,000   1,185,995              69,995           11,929,943

6/30/21   1,116,000   1,192,994              76,994           12,006,937

Unamortized Discount = Total Discount - Discount amortized

Unamortized Discount = $540,052 - ($69,995 + $76,994)

Unamortized Discount = $393,063

Answer:

1.If the marginal propensity to consume decreases, then

a)the marginal propensity to save will decrease by the same percentage.

b)the spending multiplier will decrease.

c)the money multiplier will decrease.

d)the rate of savings will decrease.

e)the spending multiplier will increase.

2.Which of the following might cause stagflation in an open-market economy operating at equilibrium in the intermediate range of the aggregate supply curve?

a)Over the course of time, companies begin to provide educational opportunities for their employees.

b)The price of oil decreases as new reserves are found in the Alaskan wilderness.

c)The government sets a price ceiling for gasoline below market equilibrium.

d)An earthquake causes a serious rupture in the Alaskan oil pipeline that will take 6 months to repair.

e)Consumers fear a recession so they cut back on spending causing massive layoffs in major cities across the United States.

3.According to Classical economists,

a)the economy is stable in the long run causing unemployment to increase during time of recession.

b)the economy is stable in the long run and macroeconomic equilibrium can occur at less than full employment.

c)the economy is stable in the long run and self correcting to full employment.

d)the economy is unstable in the long run causing unemployment to increase during time of recession.

e)the economy is unstable in the long run and self correcting to full employment.

4.Which of the following will cause a decrease in SRAS?

a)An increase in labor productivity

b)An decrease in employee wages

c)An increase in government regulations on businesses

d)An increase in consumer spending

e)A decrease in investment spending

5.When inflation has reached a peak, economists would say that the economy has reached the

a)trough of the business cycle.

b)expansion of the business cycle.

c)peak of the business cycle.

d)contraction of the business cycle.

e)bottom of the business cycle.

6.In the circular flow diagram, tourists spend money in

a)the product market that provides goods and services to firms.

b)the product market that provides profit for firms.

c)the product market that provides revenue for firms.

d)the factor market that provides profit for firms.

e)financial markets that provides profit for firms.

7.Which of the following statements about the official rate of unemployment in the United States is most accurate?

a)The official unemployment rate includes only structurally and frictionally unemployed persons.

b)The official unemployment rate is greater than the natural rate of unemployment.

c)The official unemployment rate does not include discouraged workers.

d)The official unemployment rate includes all unemployed persons except teenagers who would be counted as seasonally unemployed.

e)The official unemployment rate includes all people in the labor force who do not have jobs.

8.If the Federal Reserve purchases securities, then

a)consumer spending will increase and AD will shift right.

b)consumer spending will decrease and AD will shift left.

c)government spending will increase and AD will shift right.

d)investment spending will increase and AD will shift right.

e)investment spending will decrease and AD will shift left.

9.If, while maintaining a balanced budget, Congress decreases spending and taxes by $100 each, then

a)aggregate demand will shift right.

b)aggregate demand will shift left.

c)aggregate demand will remain the same.

d)aggregate supply will shift right.

e)aggregate supply will shift left

10)If Congress wanted to lower inflation and unemployment at the same time, it would most likely

a)increase the international value of the dollar.

b)increase spending on public works projects across the United States.

c)decrease personal income taxes.

d)pay subsidies to businesses that increase economic investment and provide increased training and education to their workers.

e)decrease welfare payments to the working poor.

Explanation:

Answer:

Simple rate of return is 5.8%

Therefore option (a) is correct option.

Explanation:

It is given that purchase cost = $793800

Company saving per year = $133000

Yielding = $21200

Annual depreciation = $88200

Annual profit = $133000 - $88200 = $44800

Net investment is equal to = $793800 - $21200 = $772600

Simple rate of return [tex]=\frac{44800}{772600}=0.0579[/tex]

= 5.8%

Therefore simple rate of return is 5.8 %

So option (a) is correct.

Answer:

The Correct Option of the given scenario is "C - Publicize the options you rejected with your reasons".

Explanation:

While creating business selection it is ought to seek for the philosophies and integrities. However, don't create it public the explanations of captivating some choices as they are having dissimilarities in philosophies which might drawback your businesses.

Answer: c. publicize the options you rejected with your reasons.

Explanation:

Under the Profit Maximisation theory where ethical behaviour does not necessarily benefit the company and the corporate citizenship theory that describes just how a company contributes to society, all the above are methods applied execpt the publication of the options rejected with reasons.

This is because certain things need to remain confidential for the protection of individuals and reputations as well as to avoid scrutiny because a Company's methodology might not be the methodology that a number of people would subscribe to.

Answer:

D. June 30

Explanation:

Since no Sec. 444 election is​ made, the required tax yearmius-end for the partnership​ will be the tax yearminus−end of a partner with at least 40% interest.

Since Bob is a​ 40% partner and has a June 30 tax yearminus−end, therefore, the required tax yearminus−end for the partnership is June 30.

Answer:

Product B has a net income of $10,000 superior to Product A.

The correct answer is C.

Explanation:

Giving the following information:

Product A:

Unitary contribution margin= $16

Machine-hours required= 2

Product B:

Unitary contribution margin= $30

Machine-hours required= 3

First, we will calculate the total income of both products.

Product A= 16*(5,000/2)= $40,000

Product B= 30*(5,000/3)= $50,000

Product B has a net income of $10,000 superior to Product A.

Answer: Innovators.

Explanation:

The Diffusion Process defines how new products are able to spread across a market.

It does this by using the Adoption Process to determine the various groups in the market and how fast the product gets to those groups. There are 5 groups in total.

- Innovators

- Early Adopters

- Early Majority

- Late Majority

- Laggards.

In the above scenario, the Mouse Potatoes would be the Innovators. These are the first buyers of a product and as such their opinions are very important as they then tell others how useful the product is. Mouse Potatoes regularly browse the net looking for the latest in "techno-entertainment", so they can buy or use it first thus making them Innovators.

Answer:

Net income= $4,836,200

Explanation:

Giving the following information:

Offer:

21,000 units for $77.4

An increase in variable cost= $7.6 per unit

Direct materials $ 12.50 $ 1,050,000

Direct labor 15.00 1,260,000

Variable manufacturing overhead 14.00 1,176,000

Fixed manufacturing overhead 17.50 1,470,000

Variable selling and administrative expenses 14.00 1,176,000

Fixed selling and administrative expenses 13.00 1,092,000

Totals $ 86.00 $ 7,224,000

First, we need to calculate the effect on the income of accepting the offer:

Effect on income= 21,000*77.4 - 21,000*(12.5 + 15 + 14 + 14 + 7.6)

Effect on income= 1,625,400 - 1,325,100

Effect on income= 300,300

Net income= 84,000*140 + 300,300 - 7,224,000

Net income= $4,836,200

Answer:

10.83%

Explanation:

The simplest way to determine the if we use the Gordon growth model for determining the company's stock price:

stock price = [dividend x (1 + growth rate)] / (WACC - growth rate)

WACC - g = [dividend x (1 + g] / price

WACC = {[dividend x (1 + g] / price} + g

WACC = {[$4.25 x (1 + 4.4%] / $69} + 4.4% = 0.1083 or 10.83%

Answer:

Explanation:

                                  Product A              Product B     Total

Incremental rev.           79                       158                  237

Incremental cost           33                        66                   99

Contribution                  46                        92                  138

common cost                                                                    (89)

Cost of Processing                                                           (36)

Net income                                                                        13

B

Financial advantage - Incremental revenue- Incremental cost -Initial revenue

Product A

79-33-53 = - 7

Product B

158-66-113 = -21.

The two products are better sold at it is without further processing.

As no other cost is involved in the processing or selling and the initial selling price is greater than the incremental contribution , it is advisable that they are sold as they are

Answer:

174,250 shares

Explanation:

The computation of the number of shares to be used in computing diluted earnings per share is shown below:

Proceeds from exercise of options (a)  $369,000  (41,000 shares × $9)

Used to repurchased for common stock (b) 30,750 shares (41,000 shares × $9 ÷ $12)

Number of shares for exercised (c)                           41,000 shares

Less: repurchased shares (d)                                    -30,750 shares

Diluted common shares {e = c - d}                             10,250 shares

Add: Common shares (f)                                             164,000 shares

Total number of shares for diluted earning per share 174,250 shares

We ignored the market price of common stock as it is not relevant.

Answer:

A and C

Explanation:

A manufacturing cost is the depreciation of the office supplies utilized by the sales team and indirect materials. As a result, choices (A) and (C) are the correct stuff.

The cost of all the resources used to produce a product, collectively referred to as the manufacturing cost, is what is considered. Direct labor, direct material costs, and manufacturing overhead make up the three areas that make up the cost of production. The whole cost of delivery is affected by it.

The raw materials known as "direct materials" are those that are included into the finished good. Applying a chain of processes to maintain a deliverable product provides value to raw materials in manufacturing. For example, welding, cutting, and painting are just a few of the many processes that can be used on raw materials. The difference between direct and indirect materials must be understood.

Hence, option (C) is accurate.

Learn more about manufacturing costs, from:

brainly.com/question/17111259

#SPJ2

Answer:

Dr Apr 08 Cash $8,928

Dr Credit Card Expense $372

Cr Sales $9300

Apr 08 Cost of goods sold $6,873

Merchandise inventory $6,873

Dr Apr 12 Accounts receivable- Continental $4,875

Dr Credit card expense $125

Cr Sales $5,000

Dr Apr 12 Cost of Goods Sold $3,240

Cr Merchandise Inventory $3,240

Explanation:

Levine CompanyJournal entries

Date General Journal Debit Credit

Dr Apr 08 Cash $8,928

Dr Credit Card Expense $372

(4%×9300)

Cr Sales $9300

Apr 08 Cost of goods sold $6,873

Merchandise inventory $6,873

Dr Apr 12 Accounts receivable- Continental $4,875

Dr Credit card expense $125

(2.5%×5000)

Cr Sales $5,000

Dr Apr 12 Cost of Goods Sold $3,240

Cr Merchandise Inventory $3,240

Answer:

17%

Explanation:

The formula to calculate ROIC is:

ROIC= Net operating profit after tax/ Total invested capital

ROIC= EBIT*(1-Tax rate)/Total invested capital

ROIC= 10,500,000*(1-0.25)/46,000,000

ROIC= 7,875,000/46,000,000

ROIC= 0.17 → 17%

According to this, the answer is that the Return on Invested Capital (ROIC) for the year is 17%.

Answer:

Instructions are below.

Explanation:

Giving the following information:

Variable costs per unit:

Direct materials $6

Direct labor $9

Variable manufacturing overhead $3

Variable selling and administrative $4

Fixed costs per year:

Fixed manufacturing overhead$300,000

Fixed selling and administrative $190,000

During the year, the company produced 25,000 units and sold 20,000 units.

The selling price of the company’s product is $50 per unit.

The difference between the absorption costing and variable costing methods is that the first one includes the fixed manufacturing overhead to the product cost.

1) Absorption costing:

Unitary fixed overhead= 300,000/25,000= $12 per unit

Unitary product cost= 6 + 9 + 3 + 12= $30

Income statement:

Sales= 20,000*50= 1,000,000

COGS= (20,000*30)= (600,000)

Gross profit= 400,000

Total selling and administrative= (190,000 + 20,000*4)= (270,000)

Net income= 130,000

2) Variable costing method:

Unitary variable cost= 6 + 9 + 3= $18

Income statement:

Sales= 1,000,000

Variable cost= (20,000*22)= (440,000)

Contribution margin= 560,000

Fixed manufacturing overhead= (300,000)

Fixed selling and administrative= (190,000)

net income= 70,000