Answer:
The answer is "6".
Explanation:
In the given question the response is 6 because the new rate is the lower of the index + margin (in that case 5 + 3 = 8) whenever the interest rate changes as well as the current rate + cap (in that instance the value 4 + 2 = 6). Its rate of interest would also be 6 percent after the very first adjustment.
Acme Air Compressor Company has decided to limit the number of compressors it will supply to some of its distributors that it suspects are selling a line of compressors made by one of its competitors. Acme is using its referent power in its distribution channel.
a. True
b. False
Answer:
b. False
Explanation:
A Referent power in an organization my be defined as the power of a person or a company that is based on high level of identification with that of admiration or inspiration or out of respect.
Thus in the context, the Acme company does not uses its referent power to its distribution channel when the company decides to limit the supply of the its compressors to some of its distributors as the distributors are selling some of the air compressors of the competitor company.
Hence the answer is FALSE.
Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel, $40,000 on seed, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $10,000 working at other occupations. Refer to Scenario 13-21. What is the economic profit for the family farm
Answer:
0
Explanation:
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
accounting profit = revenue - explicit cost
Explicit cost includes the amount expended in running the business.
100,000 - (25,000 + 40,000 + 25,000) = 10,000
economic profit = 10,000 - 10,000 = 0
Suppose that today you buy a bond with an annual coupon rate of 10 percent for $1,120. The bond has 17 years to maturity. What rate of return do you expect to earn on your investment
Answer:
8.63%
Explanation:
The expected rate of return on the bond can be determined using a financial calculator bearing in mind that the calculator would be set to its end date before making the following inputs:
N=17(number of annual coupons in 17 years)
PMT=100(annual coupon=face value*coupon rate=$1000*10%=$100)
PV=-1120(the current price is $1,120)
FV=1000(the face value of the bon is $1000)
CPT
I/Y=8.63%
EXCEL APPROACH:
=rate(nper,pmt,-pv,fv)
nper=N=17
=rate(17,100,-1120,1000)
rate=8.63%
Journalise the following transactions of Mr. Aamir Enterprises 4 (i)Mr. Aamirstarted business with Cash ₹60,000.
(ii) Deposited into Bank Rs. 2, 000
(iii). Purchased good for cash Rs. 3, 000
(iv). Building purchased from Hamza Rs. 5, 000.
Answer:
Mr. Aamir Enterprises
Journal Entries:
(i) Debit Cash Rs. 60,000
Credit Capital, Mr. AamirRs. 60,000
To record the amount invested in the enterprise.
(ii) Debit Bank Rs. 2,000
Credit Cash Rs. 2,000
To record amount deposited into the bank.
(iii). Debit Inventory Rs. 3,000
Credit Cash Rs. 3,000
To record the purchase of goods for cash.
(iv). Debit Building Rs. 5,000
Credit Cash Rs. 5,000
To record the purchase of building from Hamza, assumed to be for cash.
Explanation:
a) Data and Analysis:
(i) Cash Rs. 60,000 Capital, Mr. AamirRs. 60,000
(ii) Bank Rs. 2,000 Cash Rs. 2,000
(iii). Inventory Rs. 3,000 Cash Rs. 3,000
(iv). Building Rs. 5,000 Cash Rs. 5,000
Variable $100,000 $ 25,000 Fixed 150,000 75,000 Total $250,000 $100,000 What is the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method
Answer: $8.00
Explanation:
Details missing in question are:
These costs are for 50,000 units.
$250,000 is manufacturing cost. $100,000 is administrative cost.
The total manufacturing cost is shown to be $250,000 above.
A profit of $50,000 is needed in addition to this cost as well as the administrative cost of $100,000.
Total revenue expected is therefore:
= 250,000 + 100,000 + 50,000
= $400,000
50,000 units are to be sold so to make a revenue of $400,000, each unit should be sold for:
= 400,000 / 50,000
= $8.00
You are a bidder in an independent private values auction, and you value the object at $4,000. Each bidder perceives that valuations are uniformly distributed between $1,500 and $9,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
Answer:
a. 2 bidders $2,750
b. 10 bidders $3,750
c. 100 bidders $3,975
Explanation:
Calculation to determine what your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
Using this formula
Optimal bidding = Bidder's own valuation - (Bidder's own valuation - Lowest valuation) ÷ Number of bidders
Let plug in the formula
a) 2 bidders
Optimal bid = $4,000 - [($4,000 - $1,500) ÷ 2]
Optimal bid = $4,000 - ($2,500÷2)
Optimal bid = $4,000 - $1,250
Optimal bid = $2,750
b) 10 bidders
Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 10
Optimal bid = $4,000 - ($2,500÷10)
Optimal bid = $4,000 -$250
Optimal bid =$3,750
c) 100 bidders
Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 100
Optimal bid = $4,000 - ($2,500÷100)
Optimal bid = $4,000-$25
Optimal bid = $3,975
Therefore your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
a. 2 bidders $2,750
b. 10 bidders $3,750
c. 100 bidders $3,975
A borrows 10,000 from B and repays with 40 quarterly installments at a 4% annual effective rate. After 6 years, B sells the rights to future payments to C, at a price which yields C 6% annual effective over the remaining installment periods. What price did C pay
Answer:
$4,303.68
Explanation:
Quarterly payment = $10,000 / 32.835 (PVIFA, 1%, 40 periods) = $304.55
After 6 years, the principal due = $4,483
Present value of an annuity = payment x PVIFA = $304.55 x 14.13126 (PVIFA, 1.5%, 16 periods) = $4,303.68
The difference is not significant since the remaining payments are not many, and the increase in quarterly rate is only 0.5%
An increase in interest rates will help increase the future value of a portfolio because the cash flows produced by the portfolio: a. will increase the maturity value of the bond. b. will decrease the yield to maturity of the bond. c. can be used to recall high-rate bonds. d. can be reinvested at higher rates of return. e. will generate cash to pay future coupon interest.
Answer:
d. can be reinvested at higher rates of return.
Explanation:
Option d. can be reinvested at higher rates of return.
The interest rates on the portfolio is the yield that a person receives on his investment. This yield he gets periodically, therefore amount received can be used to generate further yields by reinvesting it into higher interest paying investments.
The operating income calculated using variable costing and absorption costing amounts to $9,100 and $11,200. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.
Answer:
$2,100
Explanation:
The difference between variable costing income and absorption costing income arises due to fixed cost deferred in inventory. This is the total fixed manufacturing overhead that will be expensed under absorption costing.
Calculation :
Fixed Cost in Inventory = $11,200 - $9,100
= $2,100
At the beginning of the year, Crane Company estimates annual overhead costs to be $2400000 and that 400000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 375000 hours is
Answer:
the amount of overhead applied during the year is $2,250,000
Explanation:
The computation of the overhead applied is shown below;
= Estimated annual overhead ÷ machine hours × actual machine hours
= $2,400,000 ÷ 400,000 machine hours × 375,000 hours
= $2,250,000
hence, the amount of overhead applied during the year is $2,250,000
Taggart Transcontinental hs a market cap of $4.5 billion, total enterprise value (including net debt) of $8 billion, an equity beta of 1.1, and a debt beta of 0.10. Your estimate of the asset beta for Taggart Transcontinental is closest to: A) 0.42 B) 0.59 C) 0.66 D) 0.71 E) 1.1
Answer:
C) 0.66
Explanation:
Market capitalization = $4.5 billion
Total enterprise value = $8 billion
Total Debt = ($8 billion - $4.5 billion) = $3.5 billion
Weight of Equity = $4.5 billion/$8 billion = 0.5625
Weight of debt = $3.5 billion / $8 billion = 0.4375
Beta of Debt = 0.10
Beta of Equity = 1.1
Asset Beta = 0.5625*1.1 + 0.4375*0.10
Asset Beta = 0.6625
Theresa is considering starting a small business. She plans to purchase equipment costing $145,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $30,000 per year. A market research specialist estimates that Theresa's annual sales from the business will amount to $80,000. Theresa plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?
A) $24,000
B) $56,000
C) $80,000
D) None of these answers is correct.
The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:
Direct method
Explanation:
If 20,000 units in ending inventory are 75% complete with respect to direct materials and 60% complete as to conversion costs, then the equivalent units of production for direct materials are ________ and for conversion costs are _________. The weighted-average method is used.A. 12,000 and 12,000B. 15,000 and 12,000C. 20,000 and 20,000D. 15,000 and 15,000
Answer:
B. 15,000 and 12,000
Explanation:
The computation of the equivalent units of production is given below;
For direct material
= 20,000 units × 75%
= 15,000 units
For conversion cost
= 20,000 × 60%
= 12,000 units
Hence, the option b is correct
So, the same should be considered
The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections. Please use the high-low method to calculate the variable cost per inspection.
Answer:
Variable cost per unit= $0.5 per inspection
Explanation:
Giving the following information:
The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections.
To calculate the variable cost under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,400 - 4,200) / (1,400 - 1,000)
Variable cost per unit= $0.5 per inspection
What would happen to GDP if the government hired unemployed workers who had been receiving an amount $0.5 TR in unemployment benefits, as government employees and now paid them $1 TR
Answer:
GDP will increase by $1 TR.
Explanation:
If the government is giving an amount to the unemployed worker then it will not account for the GDP because GDP calculation does not account the government transfers. Moreover, when the government hires them and paid them $1 TR. Thus this will consider as salary and salary is included in the GDP. Therefore, GDP will increase by $1TR.
Raj & company has fixed costs of $32,500, its
contribution ratio is 65%, and is selling its
product for $20 per unit. Its contribution margin
per unit is
A. $15
B. $13
C. $18
D. Cannot calculate
Answer:
Unitary contribution margin= $13
Explanation:
Giving the following information:
Contribution margin ratio= 65%
Selling price per unit= $20
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= Contribution margin ratio*selling price
Unitary contribution margin= 0.65*20
Unitary contribution margin= $13
Winston Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices $40,000. $65,000. $49,000. $45,000.
Answer:
$65000
Explanation:
Below is the calculation:
To find the net cash from the operating activity, we are required to add depreciation, accounts payable and accounts receivables.
Net income of the company = $50000
Add- expenses of depreciation = 5000
Add - Increase in accounts payable = 3000
Add - Decrease in accounts receivable = $7000
Thus net cash from operating activity = 50000 + 5000 + 3000 + 7000 = $65000
A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called Group of answer choices a bond indenture. a bond debenture. trading on the equity. a term bond.
Answer:
a bond indenture
Explanation:
a bond debenture can be described as the legal contract of a bond
Features of a bond debenture
Reason why the bond was created the interest rate to earned the method by which interest is calculated Maturity datescovenantsa bond indenture is a legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company
The following costs were incurred in August: Direct Materials $18,000 Direct Labor $21,000 Manufacturing Overhead $33,000 Selling Expenses $14,000 Administrative Expenses $19,000 Conversion costs during the month of August totaled: a. $39,000. b. $105,000. c. $54,000. d. $51,000.
Answer:
C. $54,000
Explanation:
Given the following information,
Direct labor = $21,000
Manufacturing overhead = $33,000
Conversion cost refers to the sum of direct labor and manufacturing overhead
Conversion cost = Direct labor + Manufacturing overhead
Conversion cost = $21,000 + $33,000
Conversion cost = $54,000
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,232 kilograms of plastic. The plastic cost the company $14,731. According to the standard cost card, each helmet should require 0.65 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Answer:
Bandar Industries Berhad of Malaysia
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets is:
= 2,015
2. The stand materials cost allowed (SQ * SP) is:
= $14,105
3. The materials spending variance is:
= $626 U
4. The materials price variance is:
= $893 F
The materials quantity variance is:
= $1,519 U
Explanation:
a) Data and Calculations:
Number of helmets manufacturing = 3,100
Units of direct materials used = 2,232 kilograms
Actual unit of direct materials used = 0.72 kilograms (2,232/3,100)
Cost of direct materials = $14,731
Unit cost of direct materials = $6.60 ($14,731/2,232)
Standard costs per kilogram = $7.00
Standard units of direct materials = 0.65 kilograms
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets = 2,015 (3,100 * 0.65)
2. The stand materials cost allowed (SQ * SP) = $14,105 (2,015 * $7.00)
3. The materials spending variance = $626 U ($14,731 - $14,105)
4. The materials price variance = standard price - actual price * actual quantity used
= $7.00 - $6.60 * 2,232
= $893 F
The materials quantity variance = standard quantity - actual quantity * standard price
= 2,015 - 2,232 * $7
= $1,519 U
Finisher Inc. sells merchandise of $250,000 in 2020 that includes a three-year limited warranty. Warranty costs are estimated to be 1% of sales. The company incurred actual costs of $800 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Answer: See explanation
Explanation:
a. Record the warranty accrual at the time of sale in 2020.
Debit Warranty expense = $250,000 × 1% = $2,500
Credit Warranty Liability $2,500
(To record the warranty accrual)
b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Debit Warranty Liability $800
Credit Cash and Payables $800
The net asset value of shares in a closed-end investment company is $36. An investor buys the shares for $34 in the secondary market. The company distributes $1 and after one year, the net asset rises to $42. The investor sells the shares for $43 in the secondary market. What is the percentage return on the investment
Answer:
Closed-End Investment Company
The percentage return on the investment is:
= = 29.41%
Explanation:
a) Data and Calculations:
Net asset value of share = $36
Price paid by an investor = $34
Dividend distributed = $1
Net asset value after one year = $42
Selling price in the secondary market by the investor = $43
Total amount realized by the investor = $44 ($43 + $1)
Cost of investment = $34
Dollar return on the investment = $10 ($44 - $34)
Percentage return on the investment = Return on investment/Cost of investment * 100
= $10/$34 * 100
= 29.41%
During a recent fiscal year, Creek Company reported pretax income of $125,000, a contribution margin ratio of 25% and total contribution margin of $400,000. Total variable costs must have been:
Answer:
475,000
Explanation:
Hey there! For this question, we will be using the COGS and SG&A formulas.
Basic Formula: Revenue - COGS - SG&A = Pretax profits
How do you calculate the SG&A?
Well, SG & A = (Contribution - Prextax income)
SG & A = ($400,000 - $125,000)
SG & A= $275,000
What's next?
Now, you must calculate for revenue.
Contribution margin/Revenue = Contribution Margin Ratio
Revenue = Contribution Margin/Contribution Margin Ratio
Revenue = $400,000/.25
Revenue = $1.1m
Now, let's use the COGS formula.
COGS: Starting inventory + purchases - ending inventory = cost of goods sold
Revenue - COGS - SG&A = Pretax profits
1.1m - COGS - 400k = 125k
COGS = $1.1m - $125k - $400k
Final answer: 1.100 Million (1,000,000)
What training would you provide to the supervisors who conduct job interviews? What are some primary safety concerns that the company should have about the warehouse operation? What OSHA guidelines do the company need to follow and communicate to employees? What kind of disabilities do you think could be reasonably accommodated for this job position?
Answer:
Kindly check explanation
Explanation:
For a Supervisor to be deemed capable of conducting a job interview, such individual must posses requisite knowledge about laws guiding the provision of employment, will include both the federal and state employment laws and act, information and provision about equal opportunity for employment and the framework of the labor force.
Primary safety concerns on warehouse operation:
Heavy equipment handling, this include knowledge on the use of heavy machines, restricted areas which must be avoided dduring its use. Similarly, heavy material lifting techniques to avoid back injury.
Also, harmful substances should be given special attention and workers should be trained to avoid prolonged exposure.
3.)
Safety tips and guidelines as outlined and provided by OSHA must be emphaxised and enforced. And workers must be continually updated on new directives as provide by OSHA.
4.)
An impairment which could still be accommodated is hearing ; such a person Can still be aided by following the lead of others and use of sign language or written notes. Visual or impairment of the limbs seems extreme and dies not seem manageable.
A company is an organization or commercial business setup. The supervisors conducting interviews must be well versed with laws regarding employment.
What is employee safety?Workplace safeties are the conditions and environment that include and cover the health, safety, and well-being of the employees.
A person conducting interviews in a company must be thorough with laws regarding employment. The laws should be both federal and state law and must include the rights of the employees.
In warehouse operations, the handling of the heavy equipment must be proper and includes the proper and complete knowledge of the machines and the equipment.
According to OSHA, the guidelines provided must be followed to ensure safety and should be enforced in the companies for security purposes.
A mute or hearing impaired person can be accommodated in places like this as they can see things to perform the tasks but will not be able to listen and talk but can be communicated in sign languages.
Therefore, safety guidelines by OSHA must be followed.
Learn more about employees here:
https://brainly.com/question/20910158
what is the technology seed? what are the main parameters of value and the functions?.
Answer:
Seed technology is technology in which superior crop seed development, plant varieties, seed production, seed marketing, quality control, seed psychology distribution, seed certification, etc.
These parameters are the seed technology variable and function.
Explanation:
The key points of interest and helpfulness of MPV are the different items and drive customer purchasing options.
Why would they say that they're important?
GEN TRIZ is a major vehicle for guaranteeing a distance from the market view and profit from MPV. Even the highest specialized arrangements risk a limited financial value without this view. A limited emphasis on MPV guarantees that the only focus of small R&D development assets is to improve customers' issues rather than to improve everything.
t is often costly to obtain the information necessary to make good decisions. yet your own interests can be best served by rationally weighing all options available to you. This requires informed decision making. does this mean that making uninformed decisions is irrational? How do you determine how much information is the right amount?
Answer:
The answer is below
Explanation:
1. Yes, making uninformed decisions is irrational. This is because it will cost the individuals making uninformed decisions to lose money in the process. Such individuals may also lose another important aspect concerning their decision, such as technological advantage, political assistance, social benefits, economic privilege, etc.
2. To determine how much information is the right amount is to ensure you continue to acquire information as long as the benefit of the additional information exceeds the additional costs. Otherwise, it is no longer the right amount anymore.
Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade. In one of her classes, Nancy has scores of 30 on her first midterm and 50 on her second midterm. When the first midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indifference curve has a slope of zero at the point (30, 50). Therefore this class could
Answer:
be professor Goodheart's but could not be Professor Stern's.
Explanation:
The indifference curve has a slope zero when marginal rate of substitution is zero. The marginal rate of substitution for Nancy is zero when she scores 30 in her first midterm. She scores 50 in her second midterm. The Professor Goodheart's count best midterm grades so Nancy grades must belong to Professor Goodheart.
In an inventory control system, the annual demand is 12,000 units, the ordering cost is GHS 30 per order and the inventory holding cost is GHS 3.00 per year. The order quantity is 1000 units and the cost per unit of the item is GHS 150. What is the total cost per year?
Answer:
Total cost per year = $1,801,860
Explanation:
Given:
Annual demand = 12,000 units
Ordering cost = $30 per order
Inventory holding cost = $3 per year
Order quantity = 1000 units
Cost per unit of the item = $150
Find:
Total cost per year
Computation:
Total cost per year = Purchase cost + Order cost + Inventory holding cost
Total cost per year = [12,000 x 150] + [12,000/1000 x 30] + [1,000/2 x 3]
Total cost per year = 1,800,000 + 360 + 1500
Total cost per year = $1,801,860
Gizmo Inc. purchased a one-year insurance policy on October 1 for $5,280. The adjusting entry on December 31 would be: (If an amount box does not require an entry, leave it blank.)
Answer and Explanation:
The adjusting entry is shown below:
Insurance Expense ($5,280 × 3 months ÷ 12 months) $1,320
To Prepaid Insurance $1,320
(being the insurance expense is recorded)
Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
