Answer:
-0.20
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Cross Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 16 million - 14 million = 2 million
Average = (16 million + 14 million) / 2 = 15 million
2 / 15 = 0.133
midpoint change in price = change in price / average of both price
change in price = 1 - 2 = - 1
average of price =(2 + 1) / 2 = 1.5
-1/1.5 = -0.67
0.1333 / -0.67
Zachary Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials $ 6,400 Unit-level labor 6,400 Unit-level overhead 3,800 Product-level costs* 8,400 Allocated facility-level costs 28,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Zachary for $2.70 each. Required Calculate the total relevant cost. Should Zachary continue to make the containers
Answer:
Zachary Electronics
Zachary should continue to make the containers. It is cheaper to make than to buy from Russo Container Company.
Explanation:
a) Data and Calculations:
Production units = 9,100 containers
Unit-level materials $ 6,400
Unit-level labor 6,400
Unit-level overhead 3,800
Total unit-level costs $16,600
Product-level costs* 8,400
Allocated facility-level costs 28,000
Relevant or avoidable costs:
Unit-level materials $ 6,400
Unit-level labor 6,400
Unit-level overhead 3,800
Total unit-level costs $16,600
Product-level costs* 2,800 ($8,400 * 1/3)
Total relevant costs = $19,400 (to make)
Relevant cost to buy:
Offer from Russo Container company = $2.70 per container
Total cost from outside supplier = $24,500 ($2.70 * 9,100)
A single commercial bank must meet a 25 percent reserve requirement. If the bank has no excess reserves initially and $5,000 of cash is deposited in the bank, it can increase its loans by a maximum of Group of answer choices $5,000. $1,250. $120,000. $3,750.
Answer:
$3,750
Explanation:
Calculation to determine what it can increase its loans by
Using this formula
Loan increase=Excess reserves-(Reserve requirement percentage* Excess reserves)
Let plug in the formula
Loan increase=$5000-($25%*$5000)
Loan increase=$5,000-$1,250
Loan increase=3,750
Therefore it can increase its loans by a maximum of $3,750
A company must repay the bank $10,000 cash in three years for a loan. The loan agreement specifies 8% interest compounded annually. The present value factor for three years at 8% is 0.7938. How much cash did the company receive from the bank on the day they borrowed this money?
A. $12,400.
B. $9,200.
C. $7,938.
D. $7,600.
E. $10,000.
Answer: C. $7,938
Explanation:
This is a straightforward question. From the question, we are informed that a company must repay the bank $10,000 cash in three years for a loan and that the loan agreement specifies 8% interest compounded annually and we are given the present value factor for three years at 8% is 0.7938.
Therefore, the amount of cash that the company receive from the bank on the day they borrowed this money will be:
= $10000 × Present value factor at 8%
= $10000 × 0.7938
= $7938
An owner can lease her building for $160,000 per year for three years. The explicit cost of maintaining the building is $55,000, and the implicit cost is $70,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of:_______.
a. Accounting profits.
b. Economic profits.
Answer:
a. Accounting profits.
Account profit = Revenue - explicit cost
= 160,000 - 55,000
= $105,000
Present value of $105,000 per year for 3 years is:
= 105,000 * Present value interest factor of an Annuity, 3 years, 5%
= 105,000 * 2.7232
= $285,936
b. Economic profit
Economic profit = Revenue - explicit cost - implicit cost
= 160,000 - 55,000 - 70,000
= $35,000
Present value of $35,000 per year for 3 years:
= 35,000 * Present value interest factor of an Annuity, 3 years, 5%
= 35,000 * 2.7232
= $95,312
Note: The profits were treated as annuities as they were constant.
[ Shareholders - Employees - Managers - Officers - Board of Directors ]
(a) Who manages the big picture and strategies for corporations, and who manages the day to day affairs of a corporation?
(b) How are each put in their position?
Your team is working hard to develop a strategy to serve a new client. Which of the following actions is most important to ensuring an effective strategy is chosen?
a. Suggest that each proposed strategy be evaluated against a set of key objectives.
b. Invite the client into a meeting to shape the strategy.
c. Conduct a benchmarking survey of similar clients to determine best strategy.
d. Ask the team member with the most industry-related experience to lead the process.
Answer:
b. Invite the client into a meeting to shape the strategy.
Explanation:
It is very important when we invited the client for meeting so that we are able to share the strategy as the open and loose could be discussed in a proper way and in easy way also the suggestions are also welcome. In addition to this, the strategy should be taken place as per the preferences, requirements and choices of the clients
Therefore the option b is correct
what is GDP of a country
Answer:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Explanation:
GDP is an acronym for Gross Domestic Products (GDP) and it can be defined as a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
On a related note, Gross Domestic Products (GDP) is a measure of the production levels of any nation.
Basically, the four (4) major expenditure categories of GDP are;
I. Consumption (C).
II. Investment (I).
III. Government purchases (G).
IV. Net exports (N).
In conclusion, GDP is a measure of the total amount of finished goods and services produced by a country.
Bangladesh has been the 7 th largest mango exporter in the world and exported 1-billion-dollar worth of vegetables across the world. Within 1000 words, discuss i) How can we internationalize our productions? ii) How can we localize our productions? Discuss some research oriented examples.
Answer:
Private companies added 330,000 jobs in July, according to ADP, far short of the 653,000 estimate
Explanation:
Private companies added 330,000 jobs in July, according to ADP, far short of the 653,000 estimate:The 330,000 new positions is a sharp deceleration from the 680,000 added in June and the lowest total since February. Leisure and hospitality led the gains with 139,000 during a month in which goods-producing industries contributed just 12,000 jobs. #accelerationism
On April 1, a company established a $150 petty cash fund. On April 15, the petty cash fund contains $5 in cash and the following paid petty cash receipts: Petty Cash Receipts Amount Advertising Expense $29.00 Gasoline Expense38.00 Miscellaneous Expense 50.00 Office Supplies 25.00 Prepare the general journal entries to (1) establish the petty cash fund, to (2) reimburse the fund, and to (3) increase its amount to $200 on April 15.
1. General journal entries to establish the petty cash fund
Date Account titles Debit Credit
April 1 Petty cash $150
Cash $150
2. General journal entries to reimburse the fund
Date Account titles Debit Credit
April 15 Advertising Expense $29.00
Gasoline Expense $38.00
Miscellaneous Expense $50.00
Office Supplies $25.00
Cash over and short $3
Cash ($150-$5) $145
3. General journal entries to increase its amount to $200 on April 15.
Date Account title s Debit Credit
April 15 Petty cash ($200-$150) $50
Cash $50
See related question here https://brainly.com/question/24003416
the financial statements for banana company include the following items: 20x9 20x8 cash $51,500 $50,000 short-term investments 25,000 15,000 net accounts receivable 53,000 50,000 merchandise inventory 163,000 50,000 total assets 532,000 554,000 accounts payable 131,500 124,000 salaries payable 25,000 13,000 long-term note payable 59,000 53,000 compute the current ratio for 20x8. group of answer choices
Answer:
1000,$5000maaf kalo salah
TB MC Qu. 08-156 Fortune Drilling Company acquires... Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined
Answer:
Fortune Drilling Company
Journal Entry:
Debit Depletion Expense $1,350,000
Credit Accumulated Depletion $1,350,000
To record the first year's expense.
Explanation:
a) Data and Calculations:
Acquisition cost of mineral deposit = $5,900,000
Additional costs incurred = $600,000
Total costs of mine = $6,500,000
Estimated mineral deposit = 2,000,000 tons
Estimated years of extraction = 5 years
First year's extraction quantity = 418,000
Expenses for the first year = 418,000/2,000,000 * $6,500,000
= $1,350,000
Analysis:
Depletion Expense $1,350,000 Accumulated Depletion $1,350,000
Positive Messages and the Writing Process
Organizations exchange information internally and externally. External messages go to customers, vendors, the government, and other business partners. Internal messages travel upward to supervisors, downward to employees, and horizontally among workers. Understanding the different types of business messages and following the 3-x-3 writing process will help you write more effective professional messages. Match the message content area with the correct types of messages.
1. Sales pitches, requests for favors
2. Replies, goodwill messages, direct claims
3. Bad news, refusals
a. persuasive
b. positive
c. negative
Consider the scenario about a positive message:
Gilberto is composing an e-mail that explains the terms of a recent business transaction. He has determined the purpose of the message, analyzed his audience, and determined its reactions.
According to the 3-x-3 writing process, what actions make up his next steps?
a. Make a list of points to cover.
b. Plan for feedback.
c. Check for mechanical problems.
d. Collect information.
e. Compose the first draft.
While most business communication is now done electronically, there remain situations in which a business letter is most appropriate.
Messages delivered through business letters are less likely to reach_____than messages delivered through_____. Thus, business letters are more_____.
Answer: See explanation
Explanation:
1a. Sales pitches, requests for favors: In this case, persuasive message should be used to convince the receiver to agree with the sender's viewpoint.
b. Replies, goodwill messages, direct claims: The positive message should be used as the main idea can be communicated directly before any other supporting information are provided.
c. Bad news, refusals: This scenario involves a negative messages and should therefore be written in an indirect manner. It should also be noted that a supporting message us given before the main message us written.
2. According to the 3-x-3 writing process, the actions that make up Gilberto next steps include
a. Make a list of points to cover.
d. Collect information.
e. Compose the first draft.
3. Messages delivered through business letters are less likely to reach (unintended recipients) than messages delivered through (email). Thus, business letters are more (confidential).
You made an investment of $15,000 into an account that paid you an annual interest rate of 3.8 percent for the first 8 years and 8.2 percent for the next 10 years. What was your annual rate of return over the entire 18 years
Answer: 6.22%
Explanation:
To find the annual rate of return, find the geometric mean of the returns:
= ¹⁸√ (1 + 3.8%)⁸ * (1 + 8.2%)¹⁰ - 1
= ¹⁸√ 2.9638173484126186153 - 1
= 1.0622187633434 - 1
= 6.22%
Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours?
a. $2,000.
b. $4,000.
c. $6,000.
d. $10,000.
Answer:
Spartan Corporation
The amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours is:
b. $4,000.
Explanation:
a) Data and Calculations:
Estimated manufacturing overhead = $200,000
Estimated activity level = 10,000 direct labor-hours
Predetermined overhead rate = $20 ($200,000/10,000) per direct labor-hour
Applied overhead to a job that required 200 direct labor-hours = $4,000 (200 * $20)
The cost of equity is ________. the interest associated with debt the rate of return required by investors to incentivize them to invest in a company the weighted average cost of capital equal to the amount of asset turnover
Answer:
If an = 3n - 2 , find a2
Explanation:
If an = 3n - 2 , find a2If an = 3n - 2 , find a2
What is the answer to this question? B or C?
Answer:B
Explanation: everything had a code of ethics.
Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2020 profit of $300,000, assuming a single sole proprietor with no other earned income.
Answer: $25,802.70
Explanation:
Social security
Social security rates in 2020 for a single sole proprietor is 12.40% on the first $137,700:
= 12.40% * 300,000
= $17,074.80
Medicare Tax
First you need to remove a deduction of 7.65% from the income:
= 300,000 * (1 - 7.65%)
= $277,050
Medicare tax is 2.90% of this adjusted amount in addition to 0.9% for any amount above $200,000:
= (2.90% * 277,050) + (0.9% * (277,050 - 200,000))
= 8,034.45 + 693.45
= $8,727.90
Total Social security and Medicare:
= 17,074.80 + 8,727.9
= $25,802.70
To meet projected annual sales, Bluegill Manufacturers, Inc. needs to produce 75,000 machines for the year. The estimated January 1 inventory is 7,000 units, and the desired December 31 inventory is 12,000 units. What are projected sales units for the year? fill in the blank 1 units
Answer: 70,000 units
Explanation:
You can use the formula for the ending inventory to get this:
Ending inventory = Opening inventory + Production for the year - Projected sales
12,000 = 7,000 + 75,000 - Projected sales
12,000 + Projected sales = 82,000
Projected sales = 82,000 - 12,000
Projected sales = 70,000 units
XYZ expects to sell 28,000 pools in 2019. It budgets the beginning inventory of Direct Materials, Work-in-process, and Finished goods to be 26,000; 0; 1,300 units; AND ending inventory to be 26,000; 0; 2,800 units. How many pools need to be produced
Answer:
the no of pools need to be produced is 29,500 units
Explanation:
The computation of the no of pools need to be produced is given below:
= Ending finished goods inventory units + number of units sold - beginning finished goods inventory units
= 2800 + 28000 - 1300
= 29500 units.
Hence, the no of pools need to be produced is 29,500 units
There are two preferred methods to accessing the database. One is to have newly instantiated object call the data access object. The other is to let the controller access the data access object.
a. True
b. False
If a fixed asset, such as a computer, were purchased on January 1st for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is: (Note: EOM indicates the last day of each month.)
Answer:
EOM depreciation expense $100
accumulated depreciation $100
Explanation:
Depreciation is a method used in expensing the cost of an asset.
Yearly Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($3750 - $150) / 3 = $1200
Monthly depreciation = yearly depreciation / 12
1200 /12 = 100
Accumulated depreciation is sum of depreciation expense
Budgeted Actual Overhead cost $909,000 $884,000 Machine hours 55,000 46,000 Direct labor hours 101,000 98,000 Overhead is applied on the basis of direct labor hours. (a) Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)
Answer:
Missing word "(b) Determine the amount of overhead applied for the year?"
1. Predetermined overhead rate = Budgeted overhead / Budgeted direct labor hours
Predetermined overhead rate = $909,000 / 101,000
Predetermined overhead rate = $9 per DLH
2. Overhead applied = Actual hours * Overhead rate
Overhead applied = 98,000 * $9 per DLH
Overhead applied = $882,000
Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $70, and each ceiling fan requires 2.50 hours of machine time to manufacture. Additional information is as follows:
Activity Allocation Base Predetermined Overhead Allocation Rate
Materials handling Number of parts $ 0.08
Machining Machine hours 7.20
Assembling Number of parts 0.35
Packaging Number of finished units 2.80
What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)
A) $18.00
B) $70.00
C) $144.00
D) $196.00
Answer:
Machining= $18
Explanation:
Giving the following information:
Each ceiling fan requires 2.50 hours of machine time to manufacture.
Machining Machine hours 7.20
To calculate the cost of machining per ceiling fan, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machining= 2.5*7.2
Machining= $18
Mitch and Jennifer have adjusted gross income of $125,000 and they have not planned for their children's education. Their children are ages 17 and 18 and the parents anticipate paying $20,000 per year, per children for education expenses. Which of the following is the most appropriate recommendation to pay for the children's education?
A) 529 Savings Plan
B) PLUS Loan
C) Pell Grant
D) Coverdell ESA
Answer: B) PLUS Loan
Explanation:
Seeing as they did not plan ahead and the children are about to start school, the best option they have is a loan. In light of that, they should go for a Parent Loan for Undergraduate Students (PLUS) loan.
A PLUS loan is provided by the Federal government to parents to help them pay for the tuition fees of their children at undergraduate level. It has a lower interest rate but is only given to people whose credit history are not to bad.
Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:
Ingredient Quantity Price
Cocoa 400lbs. $1.25per lb.
Sugar 80lbs. $0.40per lb.
Milk 120gal. $2.50per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.
Answer:
$0.16
Explanation:
Particulars Quantity Price Amount
Cocoa 400 $1.25 $500
Sugar 80 $0.40 $32
Milk 120 $2.50 $300
Total $832
Standard direct materials cost per bar = Total amount / Number of bar
Standard direct materials cost per bar = $832 / 5,200 bars
Standard direct materials cost per bar = $0.16
Purple Cab Company had 70,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 40,000 shares of common stock. The company had outstanding fully vested incentive stock options for 7,000 shares exercisable at $12 that had not been exercised by its executives. The average market price of common stock was $14. The company reported net income in the amount of $289,915 for 2021. What is the basic earnings per share (rounded)
Answer:
Purple Cab Company
The basic earnings per share is:
= $2.64 per share.
Explanation:
a) Data and Calculations:
January 1, 2021, Outstanding common stock shares = 70,000
April 1, 2021, Issue of new common stock shares = 40,000
December, 31, 2021, Outstanding common stock shares = 110,000
Outstanding fully vested incentive stock options = 7,000
Exercise price of options = $12
Common stock market price = $14
Reported net income = $289,915
The basic earnings per share = $ (Net income/Outstanding common stock)
= $289,915/110,000
= $2.64 per share
b) The basic earnings per share does not include the fully vested incentive stock options. It is only when calculating the diluted earnings per share that the stock options will be included.
Vortex Company operates a retail store with two departments. Information about those departments follows:
Department A Department B
Sales $832,000 $448,000
Cost of goods sold 410,000 291,200
Direct expenses:
Salaries 117,000 86,000
Insurance 13,500 10,900
Utilities 21,000 25,500
Depreciation 18,000 13,500
Maintenance 6,400 5,200
The company also incurred the following indirect costs.
Salaries $29,000
Insurance 6,600
Depreciation 14,800
Office expenses 40,000
Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows.
Department Square footage Number of employees
A 29,400 66
B 12,600 44
Required:
a. Determine the departmental contribution to overhead and the departmental net income for department A and Department B.
b. Should Department B be eliminated?
Answer:
Vortex Company
Department A Department B
a. Contribution margin $246,100 $15,700
Net income $188,270 ($16,870)
b. Department B should not be eliminated unless the indirect costs allocated to it can be eliminated as well.
Explanation:
a) Data and Calculations:
Department A Department B
Sales $832,000 $448,000
Cost of goods sold 410,000 291,200
Gross profit $422,000 $156,800
Direct expenses:
Salaries 117,000 86,000
Insurance 13,500 10,900
Utilities 21,000 25,500
Depreciation 18,000 13,500
Maintenance 6,400 5,200
Total direct expenses $175,900 $141,100
Contribution margin $246,100 $15,700
Total indirect expenses 57,830 32,570
Net income $188,270 ($16,870)
Department Square footage Number of employees
A 29,400 66
B 12,600 44
Total 42,000 110
Indirect Costs: Costs Rates Department A Department B
Salaries $29,000 $0.02266 $18,850 $10,150 ($448/$1,280)
Insurance 6,600 $0.15714 4,620 1,980
Depreciation 14,800 $0.35238 10,360 4,440
Office expenses 40,000 $363.64 24,000 16,000
Total costs $90,400 $57,830 $32,570
EcoFabrics has budgeted overhead costs of $1,162,350. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 553,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $442,800 and $719,550 is allocated to the design cost pool. Additional information related to these pools is as follows.
Wool Cotton Total
Machine hours 123,000 123,000 246,000
Number of setups 1,230 615 1,845
1. Calculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12.25.)
2. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.
3. Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.)
4. What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?
Answer:
EcoFabrics
1. Overhead Rates using activity-based costing:
Cutting = $1.80 per machine hour
Design = $390 per setup
2. Allocation of overhead:
Wool Cotton
Cutting $221,400 $221,400
Design 479,700 239,850
Total allocated $701,100 $461,250
3. Overhead rate using the traditional approach:
Predetermined overhead rate = $2.10
4. Allocation of overhead:
Wool Cotton
Total allocated $581,175 $581,175
Explanation:
a) Data and Calculations:
Budgeted overhead costs = $1,162,350
Estimated direct labor hours = 553,500
Activity Cost Cost Drivers Overhead Costs Wool Cotton Total
Pools
Cutting Machine hours $442,800 123,000 123,000 246,000
Design Number of setups 719,550 1,230 615 1,845
1. Overhead Rates using activity-based costing:
Cutting = $1.80 ($442,800/246,000) per machine hour
Design = $390 ($719,550/1,845) per setup
2. Allocation of overhead:
Wool Cotton
Cutting $221,400 ($1.80 * 123,000) $221,400 ($1.80 * 123,000)
Design 479,700 ($390 * 1,230) 239,850 ($390 * 615)
Total allocated $701,100 $461,250
3. Overhead rate using the traditional approach:
Predetermined overhead rate = $2.10 ($1,162,350/553,500)
4. Allocation of overhead:
Wool Cotton
Total allocated $581,175 ($1,162,350 * 50%) $581,175 ($1,162,350 * 50%)
Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
Cost of goods sold……………………………….. $ 735,000
Merchandise inventory, January 1………………. 84,700
Merchandise inventory, December 31…………… 82,400
Accounts payable, January 1……………………. 54,500
Accounts payable, December 31……………….. 60,200
Answer:
$727,000
Explanation:
Calculation of cash paid for merchandise
Cost of goods sold
$735,000
Add:
Merchandise inventory, December 31
$82,400
Less:
Merchandise inventory, January 1
($84,700)
Purchases during the period
$732,700
Add:
Accounts payable, January 1
$54,500
Less:
Accounts payable, December 31
($60,200)
Cash paid for merchandise
$727,000
A buyer’s agent represents the buyer, and the seller’s agent represents the broker true or false?
Answer: False
Explanation:
seller is not represent broker
