As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative to Jamaican dollars. The depreciation in the U.S. dollar has benefitted some groups but harmed others. Indicate which of the groups are winners and which are losers from the standpoint of the depreciation of the U.S. dollar.
A. Todd, an American, going to visit Jamaica for spring break.
B. An investment bank in Jamaica that is interested in purchasing U.S. government bonds.
C. Goodyear, a U.S. based firm, selling car tires in Jamaica.
D. A family from Jamaica visiting relatives in the U.S. E. A firm from Jamaica selling handbags in the U.S.
F. U.S. based Hewlett-Packard, which is purchasing a high tech company in Jamaica.

Answers

Answer 1

Answer;

A. Todd, an American, going to visit Jamaica for spring break. - Loser

The US dollar depreciating means that it now takes more US dollars to buy Jamaican dollars. Todd will afford less Jamaican dollars when he goes to Jamaica.

B. An investment bank in Jamaica that is interested in purchasing U.S. government bonds. - Winner

The Investment bank will see that their domestic currency is stronger than it was therefore they can buy more US dollars. As a result it will be cheaper for the Investment bank to buy U.S. Government bonds.

C. Goodyear, a U.S. based firm, selling car tires in Jamaica. - Winners.

Goodyear will be winners because when they sell their tires in Jamaican dollars and then convert it to USD, they will.get more dollars from the transaction than before.

D. A family from Jamaica visiting relatives in the U.S. - Winners

As the Jamaican family will be able to buy more US dollars than before, they are winners.

E. A firm from Jamaica selling handbags in the U.S. - Losers.

As the firm sells in the US, they sell in US dollars. When they try to convert their sales to Jamaican dollars, they will get less than before.

F. U.S. based Hewlett-Packard, which is purchasing a high tech company in Jamaica. - Losers.

The depreciation of the US dollar means than HP will have to spend more dollars purchasing the company than before because the purchase price of the company will be stated in Jamaican dollars.


Related Questions

Suppose that Mexico experienced a very severe period of inflation in 1972. As prices in Mexico rose, the demand in the foreign exchange market for Mexican pesos:

Answers

Answer:

demand for pesos would fall and supply would rise. their value would decrease as a result

Explanation:

Inflation is a persistent rise in general price level.

When there is high inflation in a country, the demand for the currency would fall because the value of the currency is low. this fall in demand coupled with the excess supply of the currency would lead to a fall in the value of the currency.

hich of the following is NOT one of the ways companies are using mobile apps? Group of answer choices track behavior across tablets and mobile devices utilize cookies to track mobile activity utilize GPS data to provide location-based offers track loyalty program participation add social value and entertainment to consumers' lives

Answers

Answer: Add social value and entertainment to consumers' lives

Explanation:

In this age of technology, companies have found that being able to offer their customers relevant products can be greatly helped by gathering information about them and offering it to them directly on their phones. A great way to do so is through the use of mobile apps.

With mobile apps a company can track behavior on the device as well as track mobile activity. They could even use the GPS capabilities of the phone through the app to offer relevant location based content.

However, as much as companies would like their customers to have enjoyable lives, this is not an aim with mobile apps. The apps are there to boost the companies sales not to add social value and entertainment to consumers' lives unless of course, that is the company's main business.

Answer:

Which features are created by wave erosion?

Your answer is:

- arches

- cliffs

- stacks

Explanation:

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 750 300 Desired inventory (units), June 30 500 250 Expected sales volume (units): Midwest Region 12,000 3,500 South Region 14,000 4,000 Unit sales price $60 $90 a. Prepare a sales budget.

Answers

Answer: please see explanation column

Explanation:

                                                        Rumble Thunder

Estimated inventory (units), June 1 750 300

Desired inventory (units), June 30 500 250

Expected sales volume (units):

Midwest Region                           12,000 3,500

South Region                                14,000 4,000

Unit sales price                                 $60 $90

a)               Sonic Inc.  Sales Budget  for June

                        Unit Sales Vol Unit Selling price    Total Sales

Model Rumble:    

Midwest Region   12000      60         $720,000

South Region   14000      60          $840,000

Total   1,560,000

Model Thunder:    

Midwest Region 3500       $90           $315,000

South Region         4000       $90            $360,000

Total   $675,000

Total revenue from sales 1,560,000  + $675,000 =$2,235,000

B)               Sonic Inc.  Production budget for June

                                              Units Model Rumble Units Model Thunder

Expected units to be sold  26000                  7500

Add: Desired ending inventory   + 500                  +  250

Total units required                   26500                    7750

Less: Beginning inventory            - 750                     - 300

Total units to be produced  $25750                   $ 7450

Calculation :

Expected units to be sold =12,000  + 14,000 = $26,000

                                               3,500 + 4,000 = $7,500

Total units required=Expected units to be sold+ Desired ending inventory

26000 +500 =$26,500

7,500 +250= $7,750

1.1. Which of the following ratios are key components in measuring a company's operating efficiency? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
a. Profit margin
b. Equity ratio
c. Return on total assets
d. Total asset turnover
1.2. Which ratio summarizes the components applicable in 11?
a. Debt ratio
b. Profit margin
c. Return on total assets
d. Total asset turnover
2. What measure reflects the difference between current assets and current liabilities?
a. Gross margin
b. Day's sales uncollected
c. Retun on total assets
3. Which of the following short-term liquidity ratios measure how frequently a company collects its accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
a. Days' sales uncollected
b. Days' sales in inventory
c. Accounts receivable turnover
d. Acid test rato

Answers

Answer:

 1.1 The ratio from the list below which measures the efficiency of the operations of a company is D - Total Asset Turnover Ratio.  

Explanation:

Total Asset Turn Over Ratio is calculated by dividing Net Sales by Average Total Assets.

For example, if company CDH is reporting a value of $499,650 as initial total assets and $387,656 as ending total assets. Within the same period, the company generated sales of $250,655, with sales returns of $17,000.

This means that, the asset turnover ratio for Company CDH is calculated as follows:

($250,655-$17,000)/(($387,656+$499,650)/2)

The answer is 0.52667

Thus, every dollar in total assets generates $0.52667 in sales.

Efficiency ratios are important for rating the operations of the business. They are also used by investors and lenders when conducting financial analysis of businesses to decide whether the companies are a good investment.

1.2 The component which summarises the components applicable in 1.1 is D Total Asset Turnover          

2. Working capital is the variance between current assets and current liabilities.

. This is simply the capital that an organisation uses in its day-to-day business operations.

3.   The short-term liquidity ratios which calculate how frequently a company collects its accounts are:

A) Days' sales Uncollected and

C) Accounts receivable turnover.

A) Days' sales Uncollected is calculated by

(Accounts receivable/Net annual credit sales) x 365

It is the number of days before receivables are collected.

The lower the ratio the more liquid the company is likely to be. High Days' Sales Uncollected Ratios are bad for business.

C) Accounts receivable turnover is the annual rate at which a business collects its average accounts receivable.

Cheers!

Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,307 in March. Burpee sets their prices so that they earn an average 32% gross profit on sales revenue. What is budgeted cost of goods sold for the first quarter (January, February and March)?

Answers

Answer:

Total COGS= $5,123,006.44

Explanation:

Giving the following information:

Sales:

January= $2,038,635

February= $2,581,891

March= $2,913,307

Burpee sets their prices so that they earn an average 32% gross profit on sales revenue.

We need to calculate the cost of goods sold:

January= 2,038,635*0.68= 1,386,271.8

February= 2,581,891*0.68= 1,755,685.88

March= 2,913,307*0.68= 1,981,048.76

Total COGS= $5,123,006.44

For the quarter ended March 31, 2017, Croix Company accumulates the following sales data for its newest guitar, The Edge: $314,000 budget; $300,800 actual. In the second quarter, budgeted sales were $381,000, and actual sales were $391,000.
Prepare a static budget report for the second quarter and for the year to date.
CROIX COMPANY
Sales Budget Report
For the Quarter Ended June 30, 2017
Second Quarter Year to Date
Product Line Budget Actual Difference Budget Actual Difference

Answers

Answer:

CROIX COMPANY

Sales Budget Report

For the Quarter Ended June 30, 2017

                                  Second Quarter                         Year to Date

Product Line  Budget     Actual   Difference    Budget    Actual    Difference

The Edge     381,000  391,000  10,000         695,000   691,800    3,200  U

Explanation:

Croix's sales budget gives a forecast of the sales figure over the future period in order to help Croix plan its production or purchase of the newest guitar, The Edge so that customers' demand can be met and profit objectives of the company is achieved.

A corporate bond currently yields 8.5%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. At what tax rate would investors be indifferent between the two bonds?

Answers

Answer: 35.29%

Explanation:

Municipal Bonds are attractive in that they give the tax benefit of being tax exempt whereas a corporate bond is liable for taxation. The tax rate that will therefore make an investor indifferent between the two bonds is the one that will equate the Corporate bond's yield net of tax to the yield on the Municipal bond.

5.5% = 8.5% * ( 1 - x)

5.5% = 8.5% - 0.085x

0.085x = 8.5% - 5.5%

0.085x = 3%

x = 35.29%

The difference between total sales revenue and total cost of goods sold is the: A. Trade margin B. Gross marketing contribution C. Net marketing contribution D. All of the above

Answers

Answer:

A. Trade margin

Explanation:

The profit obtained from trading operations is known as gross profit or trade margin.This is calculated as sales less costs of goods sold.

The difference between total sales revenue and total cost of goods sold is the gross marketing contribution.

The following information is considered:

When the cost of goods sold is deducted from the sales revenue so the gross marketing contribution should come. Neither it is trade margin, nor net marketing contribution.In other words, the difference is called as gross margin.

Therefore we can conclude that the correct option is B.

Learn more: brainly.com/question/16115373

. A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price

Answers

Answer:

The answer is $18.29

Explanation:

We have many formulas to arriving at the stock price but here we use Gordon growth model.

Formula for getting stock price is:

D1/r - g

Where:

D1 - is the next year dividend or expected dividend to be paid next.

r is the rate of return

g is the growth rate

$0.75/0.105 - 0.064

$0.75/0.041

$18.29.

Therefore, the stock's current price is $18.29

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $971,600 Liabilities: Current liabilities $140,000 Note payable, 6%, due in 15 years 694,000 Total liabilities $834,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $834,000 Common stock, $10 par (no change during year) 834,000 Retained earnings: Balance, beginning of year $890,000 Net income 386,000 $1,276,000 Preferred dividends $33,360 Common dividends 130,640 164,000 Balance, end of year 1,112,000 Total stockholders' equity $2,780,000 Sales $21,141,000 Interest expense $41,640 Assuming that total assets were $3,433,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.

Answers

Answer:

Ratio of fixed assets to long-term liabilities  = fixed assets / long term liabilities = $971,600 / $694,000 = 1.4

Ratio of liabilities to stockholders' equity = total liabilities / stockholders' equity = $834,000 / $2,780,000  = 0.3

Asset turnover = net sales / average total assets = $21,141,000 / [($3,614,000 + $3,433,000)/2] = 6  

Return on total assets = (net income + interest expense) / average total assets =  ($386,000 + $41,640) / [($3,614,000 + $3,433,000)/2] = 12.14%

Return on stockholders’ equity = net income / average stockholders' equity = $386,000 / [($2,780,000 + $2,558,000) = 14.46%

Return on common stockholders' equity = net income / average common stockholders' equity = $386,000 / [($1,946,000 + $1,724,000) = 21.04%

Many managers describe performance appraisal as the responsibility that they like least. Why is this so? What could be done to improve the situation?

Answers

Answer:

Many managers describe performance appraisal as the responsibility that they like least. Why is this so?

it might be so because managers may feel that performance appraisal is not as productive as other activities, or because they lack the personal skills, or the motivation, to engage in that activity.

What could be done to improve the situation?

Managers should be taught that performance appraisal can be a very effective and productive method for the firm. When workers are praised for their work (when they deserve it), they are likely to be happier in the workplace, and it has been shown by countless studies that happier workers are also more productive.

One year ago, you purchased a stock at a price of $55.20 per share. Today, you sold your stock at a loss of 18.63 percent. Your capital loss was $12.62 per share. What was the total dividends per share paid on this stock over the year

Answers

Answer:

Dividend = $2.34

Explanation:

Purchase Price = $55.20

Loss on stock = 18.63% of $55.20 = $10.28

Capital Loss = $12.62

Dividend = Capital Loss - Total Loss

Dividend = $12.62 - $10.28

Dividend = $2.34

5. Kroger can use __________ gathered from ClickList orders to determine which products they should keep more or less of in stock.

Answers

Answer: Data analytics

Explanation:

Data analytics simply has to do withcanalyzing raw data to make conclusions about a particular information. Data analytics is used by organizations in order to optimize their business performance.

Kroger can use data analytics gathered from ClickList orders to determine which products they should keep more or less of in stock.

A company with a WACC of 8.5% is considering two possible investments. Project A will return 10% and be financed using equity costing 9.5%. Project B will return 8% and be financed using debt costing 6%. Which project should the company undertake

Answers

Answer:

The Company should undertake project A.

Explanation:

The finance of projects is usually done through pooling of funds, that is using various sources of finance. The WACC represents the return required by providers of this finance and also shows the risk of the company.

A company will always accept projects that provide a return higher that their weighted average cost of capital (risk) and reject any project offering a return below the WACC.

Conclusion :

The Company should undertake project A as this gives a return higher than the WACC of 8.5%.

Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion

Answers

Revenue: $500,000

Shoes: $250,000

Shoe boxes: $1,000

Advertising: $500

Rent: $1,000

Depreciation: $25

Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion?

A. 25.13% more shoes

B. 20.08% more shoes

C. None of the above, but I could calculate this with the information I am given.

D. None of the above, I cannot calculate this with the information I am given.

Answer:

Option A. 25.13% more shoes

Explanation:

Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.

The Benefit drawn before 10% promotion proposal:

Revenue:                           $500,000

Shoes:                               ($250,000)

Shoe boxes:                         ($1,000)

Advertising:                           ($500)

Rent:                                     ($1,000)

Depreciation:                          ($25)

Profit                                    $247,475

The Benefit drawn before 10% promotion proposal:

Revenue:                           $450,000

Shoes:                               ($250,000)

Shoe boxes:                        ($1,000)

Advertising:                          ($500)

Rent:                                    ($1,000)

Depreciation:                         ($25)

Profit                                   $197,475

Now we can calculate how much additional sales must be required to justify the promotion.

Sales Increase Required = (Initial Profit - Before Promotion) / Profit After Promotion

Sales Increase Required = ($247,475  - $197,475) / $197,475

Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.

Promotion is termed as the activity that involves the spreading or publicizing of information regarding the products and services. It is a part of marketing that involves publicity and public relations between the customers.  

The correct option is A. 25.13% more shoes

Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.

The Benefit drew before 10% promotion proposal:

Revenue:                           $500,000

Shoes:                               ($250,000)

Shoe boxes:                         ($1,000)

Advertising:                           ($500)

Rent:                                     ($1,000)

Depreciation:                          ($25)

Profit                                    $247,475

The Benefit drew before 10% promotion proposal:

Revenue:                           $450,000

Shoes:                               ($250,000)

Shoe boxes:                        ($1,000)

Advertising:                          ($500)

Rent:                                    ($1,000)

Depreciation:                         ($25)

Profit                                   $197,475

Now we can calculate how much additional sales must be required to justify the promotion.

Sales Increase Required = [tex]\frac{\text{Initial Profit - Before Promotion}}{\text{Profit After Promotion}}[/tex]

Sales Increase Required = [tex]\frac{\$247,475-\$197,475}{\$197,475}[/tex]

Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.

To know more about the promotional activities, refer to the link below:

https://brainly.com/question/15869831

Prior to setting pricing options for its products to maximize profit, a company must: a. determine whether it should use horizontal or vertical integration. b. select appropriate corporate-level strategies. c. perform value-chain functional activities.

Answers

Answer: b. select appropriate corporate-level strategies

Explanation:

Prior to setting pricing options for its products to maximize profit, a company must select appropriate corporate-level strategies.

This is necessary in order to ensure that the strategies aligns with what the organization is willing to do in order to achieve its profit maximization goal.

Hotel Cortez is an all-equity firm that has 10,900 shares of stock outstanding at a market price of $37 per share. The firm's management has decided to issue $66,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 8 percent. What is the break-even EBIT

Answers

Answer:

$32,264.07

Explanation:

The computation of the Break-even EBIT  is shown below:

(EBIT ÷ Number of shares) = (EBIT - Interest) ÷ Number of shares  

(EBIT ÷ 10,900) = (EBIT - $66,000 × 0.08) ÷ (10,900 - (66,000 ÷ $37))

(EBIT ÷ 10,900) = (EBIT - $5,280) ÷ (10,900 - 1,783.78)

(EBIT ÷ 10,900) = (EBIT - $5,280) ÷ (9116.22)

After solving this, the value of break-even EBIT is $32,264.07

Logan Corporation issued $800,000 of 8% bonds on October 1, 2006, due on October 1, 2011. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Logan Corporation closes its books annually on December 31.

Instructions

(a) Prepare the amortization schedule (effective interest method) through October 1, 2007.

(b) Prepare the adjusting entry for December 31, 2007. Use the effective-interest method.

(c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2007.

Answers

Answer:

a)

period     interest       interest       discount     amortized      bond's

               payment     expense     on BP          discount        carrying value

0                                                     49,320.60                        750,679.40

1               32,000       37,533.97   43,786.63   5,533.97       756,213.37

2              32,000       37,810.67    37,975.96   5,810.67       762,024.04

3              32,000       38,101.20    31,874.76     6,101.20       768,125.24

4              32,000       38,406.26   43,786.63   6,406.26      774,531.50

b)

December 31, 2017, accrued interest on bonds payable

Dr Interest expense 19,050.60

    Cr Interest payable 16,000

    Cr Discount on bonds payable 3,050.60

c)

total interest expense year 2007:

($37,533.97/2) + $37,810.67 + ($38,101.20/2) = $18,776.99 + $37,810.67 + $19,050.60 = $75,638.26

Explanation:

the market price of the bonds:

$800,000 / 1.05¹⁰ = $491,130.60

$32,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $259,548.80

market price = $750,679.40

discount on bonds payable $49,320.60

discount amortization first payment = (750,679.40 x 0.05) - 32,000 = 5,533.97

discount amortization second payment = (756,213.37 x 0.05) - 32,000 = 5,810.67

discount amortization third payment = (762,024.04 x 0.05) - 32,000 = 6,101.20

discount amortization fourth payment = (768,125.24 x 0.05) - 32,000 = 6,406.26

FIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Date Transaction Number
of Units Per Unit Total
Apr. 3 Inventory 48 $150 $7,200
8 Purchase 96 180 17,280
11 Sale 64 500 32,000
30 Sale 40 500 20,000
May 8 Purchase 80 200 16,000
10 Sale 48 500 24,000
19 Sale 24 500 12,000
28 Purchase 80 220 17,600
June 5 Sale 48 525 25,200
16 Sale 64 525 33,600
21 Purchase 144 240 34,560
28 Sale 72 525 37,800
Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Dunne Co.
Schedule of Cost of Goods Sold
FIFO Method
For the Three Months Ended June 30
Purchases Cost of Goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Apr. 3 $ $
Apr. 8 $ $
Apr. 11 $ $
Apr. 30
May 8
May 10
May 19
May 28
June 5
June 16
June 21
June 28
June 30 Balances $ $
2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.

Record sale
Record cost
3. Determine the gross profit from sales for the period.
$

4. Determine the ending inventory cost as of June 30.
$

5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

Answers

Answer:

Dunne Co.

Schedule of Cost of Goods Sold

FIFO Method

For the Three Months Ended June 30

                                          Purchases      Cost of Goods Sold Inventory

Date            Description    Quantity    Unit Cost       Total Cost   Sales

Apr. 3          Inventory         48                $150             $7,200

Apr. 8          Purchase         96                  180              17,280

Apr. 11         Sale                           64        500                             32,000

Apr. 30       Sale                           40        500                             20,000

May 8         Purchase         80                 200             16,000

May 10       Sale                           48        500                             24,000

May 19       Sale                           24        500                             12,000

May 28      Purchase         80                  220            17,600

June 5       Sale                          48         525                             25,200

June 16      Sale                         64         525                             33,600

June 21      Purchase      144                  240            34,560

June 28     Sale                         72         525                             37,800

June 30     Total            448   360                         $92,640 $184,600

June 30     Balances       88                 $240          $21,120      

2. Determination of total sales and cost of goods sold and Journal Entries:

Debit Accounts Receivable $184,600

Credit Sales Revenue $184,600

To record the sales of goods on account for the period.

Debit Cost of Goods Sold $92,640

Credit Inventory $92,640

To record the cost of goods sold for the period.

3. Income Statement for determining the gross profit:

Sales Revenue       $184,600

Cost of goods sold $92,640

Gross profit             $91,960

4. Determination of the ending inventory cost of June 30:

Ending Inventory units = 88

Cost per unit (FIFO) = $240

Total =                     $21,120

5. The ending inventory would be lower if the ending inventory was valued using the Last-in, First-out (LIFO) method.  The purchase price was increasing instead.  Using LIFO means that ending inventory would be valued at the cost of the purchases in earlier months because of the assumption with LIFO that goods sold are from the last purchases instead of the earlier purchases.

Explanation:

Someone offers to buy your car for four, equal annual payments, with the first payment coming 2 years from today. If you think that you could sell your car to another purchaser for an immediate payment of $9,000 and the interest rate is 10%, what is the minimum annual payment that you would accept from this buyer?

Answers

Answer:

4i8484884858585848484i

Pear Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
Alternative A Alternative B
Materials costs $ 40,000 $ 56,000
Processing costs $ 37,000 $ 37,000
Equipment rental $ 13,000 $ 13,000
Occupancy costs $ 15,000 $ 22,000
Are the materials costs and processing costs relevant in the choice between alternatives A and B?
Multiple Choice
A) Only processing costs are relevant
B) Only materials costs are relevant
C) Both materials costs and processing costs are relevant
D) Neither materials costs nor processing costs are relevant

Answers

Answer: B) Only materials costs are relevant

Explanation:

When choosing between alternatives, the main decider is the difference in costs. The costs that are different are the ones to decide whether a company takes on a project as it will signal the financial viability of a project.

In both alternatives, the Processing costs remain at $37,000 therefore the alternative chosen is irrelevant to these costs as they will be incurred regardless of the company's choice. They are therefore not to be considered.

Material costs on the other hand vary by the alternatives and so should be considered.

The following data is given for the Bahia Company: Budgeted production 1,049 units Actual production 971 units Materials: Standard price per pound $1.971 Standard pounds per completed unit 12 Actual pounds purchased and used in production 11,302 Actual price paid for materials $23,169 Labor: Standard hourly labor rate $15.00 per hour Standard hours allowed per completed unit 4.3 Actual labor hours worked 5,000.65 Actual total labor costs $76,260 Overhead: Actual and budgeted fixed overhead $1,014,000 Standard variable overhead rate $27.00 per standard labor hour Actual variable overhead costs $140,018 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a.$75,397.52 unfavorable b.$75,397.52 favorable c.$27,284.90 unfavorable d.$27,284.90 favorable

Answers

Answer:

c.$27,284.90 unfavorable

Explanation:

Standard variable overhead rate                     =$27.00

Standard hours allowed per completed unit  =4.3

Actual production unit                                      =971

Actual variable overhead costs                       =$140,018

Variable factory overhead controllable variance = (Standard variable overhead rate * Standard hours allowed per completed unit * Actual production unit) - Actual variable overhead costs

Variable factory overhead controllable variance = ($27 * 4.3 * 971) - $140,018

Variable factory overhead controllable variance = $112,733.1 - $140,018

Variable factory overhead controllable variance = $27,284.9 (Unfavorable)

A customer buys 1,000 shares of XYZ at $60 in a margin account, regular way settlement. Two days after the trade, XYZ has dropped to $40. The minimum maintenance margin requirement is:

Answers

Answer:

$10,000

Explanation:

A customer buys 1,000 shares of XYZ

The shares are bought at $60 in a margin account

Two days after the price of XYZ drops to $40

The first step is to calculate the current market value

= 1,000 shares×$40

= $40,000

Therefore, the minimum maintenance margin requirement can be calculated as follows

= 25/100 × current market value

= 25/100 × 40,000

= 0.25×40,000

= $10,000

Hence the minimum maintenance margin requirement is $10,000

After reading it write about whether or not you agree with the academic economic consensus that independent officials running the Federal Reserve are able to properly balance their dual mandate in a fair and balanced fashion with the needs of workers in one hand and the financial industry on the other. If you agree with the consensus view explain your reasons; or if you disagree and think that the officials are biased in favor of the financial industry explain your reasoning with some possible solutions to the problem. Write at least two paragraphs articulating your views.

Answers

Answer:

The Federal Reserve has been at times biased in favor of the financial industry, because they have often put inflation targeting above the need to reduce unemployment when executing monetary policy. Besides, the financial industry has often been rescued by massive loans from the Fed.

However, the Federal Reserve has also acted in favor of reducing unemployment, specially during recessions, by expanding the money supply through a policy known as quantitative easing.

In conclusion, we can say that the Fed tends to be biased in favor of the financial industry, but not at all times.

All else being equal, a marketing channel that has a high cost per exposure will have a ________ return on investment.

Answers

Answer:

all else being equal, a marketing channel that has a high cost per exposure will have a low return on investment

A division of a manufacturing company has a return on investment of 24%. The division has an opportunity to accept a project that is expected to earn a return on investment of 22%. The company’s hurdle rate is 20% which of the following statements is true?
a) A division reports the following figures: Profit margin =20% Investment turnover = 0.5. The division return on investment is
b) If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%, the company will need to earn a net income of $ .

Answers

Answer:

Return on Investment

The statement that is true is:

b) If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%, the company will need to earn a net income of $600,000 (30% of $2,000,000).

Explanation:

The company's Return on Investment is a financial performance measure that calculates the efficiency of the use of investment resources by dividing the returns generated by an investment by the cost of the investment during a period of time.  It can be used to evaluate a divisional manager's performance based on the returns generated from the investments made in the division.

When the actual cost of direct materials used exceeds the standard cost, the company must have experienced an unfavorable direct materials price variance.

a. True
b. False

Answers

Answer:

True

Explanation:

The cost was bigger than they had budgeted for, so it was an unfavorable variance.

Akram owns a small farm. He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The income of the business varies greatly during the year. The farm makes a small profit but Akram is ambitious. He wants to take over a neighbour’s farm and increase the range of crops he sells. He thinks that he needs long-term finance and plans to take out bank loan to pay for the takeover. He has already borrowed money to buy a new tractor. A friend has advised him to form a company and sell shares

Answers

Question Completion:

Requirement. Identity two types of short-term finance Akram could use when the farm income is low

Answer:

Akram's Farm

Akram's farm can make good use of the following short-term financing sources:

1. Akram's farm can use Accounts Payable to provide short-term trade finance when the farm buys farm inputs, equipment, and other supplies on credit.  The farm's Accounts Payable can provide interest-free trade loans by allowing the farm to take longer time to settle the suppliers.  But, the farm should not miss out on cash discounts - an important source of trade finance.

2. Akram's farm can generate finances by ensuring early collections of the  Accounts Receivable.  Akram's farm can also go ahead and borrow on the accounts receivable through short-term bank loans guaranteed on the accounts.  The farm can also factor the accounts receivable by selling them to factoring and finance houses for less.

Explanation:

Akram's farm is still a small farm that is not yet formed as a company.  The immediate concentration is growing the entity and starting the processes for changing its corporate status so that it can take advantage of the sources of finance available to companies.

Your supervisor instructs you to purchase 480 pens and 6 staplers for the workplace. Pens are purchased in sets of 6 for $2.45. Staplers are sold in sets of 2 for $14.95. How much will the purchase of these products cost?

Answers

Answer:

Total cost= $225.9

Explanation:

Giving the following information:

Your supervisor instructs you to purchase 480 pens and 6 staplers for the workplace.

Pens are purchased in sets of 6 for $2.45.

Staplers are sold in sets of 2 for $14.95.

First, we need to calculate the number of "packs" to buy:

Pens= 480/6= 80

Staplers= 6/2= 3

Total cost= 80*2.45 + 2*14.95= $225.9

The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8​% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 9.6​%, then this bond will trade at

Answers

Answer:

this bond will trade at $912.05.

Explanation:

There is an Inverse relationship between the yield and the price of bond.

As the yield goes up, the price of bond goes down, that is trade at discount.Whereas, as the yield goes down, the price of bond goes up, that is trade at a premium.

The Bond investment in Sisyphean Company is trading at a discount.

The Price of the Bond, PV can be determined as follows..

PV = ?

FV = $1,000

PMT = ($1,000 × 8​%) ÷ 2 = $40

P/yr = 2

YTM = 9.6​%

n = 8 × 2 = 16

Using a Financial Calculator, the Price of the Bond, PV  is $912.05.

Other Questions
Is 3+(-4) the same as -4+3 ? Explain HELP PLEASE ASAP I REALLY DONT KNOW HOW TO DO THIS What is the slope of a line perpendicular to the line containing the points $(-1,2)$ and $(1,-2)$? Express your answer as a common fraction. Enter your answer If a cell has 24 pairs of chromosomes in its diploid state, how manychromosomes will it have after Meiosis 2?A. 12B. 24C.48D. 6 (Pls Help) The study of such concepts as motion, force,y energy, matter, heat, sound, light, and the components of atoms is:- Physics- Biology- Earth Science- Astronomy What is the solution to -5 + z = -12 A. z = -17 B. z = -7 C. z = 7 D. z = 17 please help which phrase best completes the diagram? Nine and one-half less than four and one-half times a number is greater than 62.5. Which of the following represents the solution set of this problem?(16, positive infinity)(Negative 16, positive infinity)(Negative infinity, 16)(Negative infinity, Negative 16) Two numbers are in ratio 3 by 2 and their difference is 5 find numbers whats a negative times a positive times a negative? An octagonal pyramid ... how many faces does it have, how many vertices and how many edges? A triangular prism ... how many faces does it have, how many vertices and how many edges? a triangular pyramid ... how many faces does it have, how many vertices and how many edges? Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $53 each with expected sales of 4,300 tops annually. By adding the fleece tops, management feels the firm will sell an additional 285 pairs of jeans at $65 a pair and 420 fewer T-shirts at $26 each. The variable cost per unit is $36 on the jeans, $16 on the T-shirts, and $31 on the fleece tops. With the new item, the depreciation expense is $33,000 a year and the fixed costs are $76,000 annually. The tax rate is 35 percent. What is the project's operating cash flow? plz help asap i have limited time i will give brainliest What is the area of a parallelogram if the coordinates of its vertices are (0, -2), (3,2), (8,2), and (5, -2)? A portfolio to the right of the market portfolio on the CML is: Group of answer choices a lending portfolio. an inefficient portfolio. a borrowing portfolio. Find the midpoints of the points (-3,-2) and (1,-4) Question is on the picture. Answers: A. 0.1 J/g*C B. 0.2 J/g*C C. 0.4 J/g*C D. 4 J/g*C A mutation that hides the effect of another mutation at a site that is distinct from the site of the original mutation, but with in the same gene. This mutation is best described as a what number has 7 ten thousands, 1 thousand, 1 hundred, and no ones? "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?" (a) Identify the name of the method used below for the separation. (b) Give one more application of this method of separation. (c) What is the name for the line at position B ? (d) what conclusions can you draw about the colours present in sweets C and D ?