Answer:
Market Power
Externality
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low
The utility company is a monopoly
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Suppose that the demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3
Answer:
6.12units
Explanation:
Calculation to determine what should be the forecast for period 3
First step is to calculate the Forecast for period 2 using this formula
Forecast for period 2 = Alpha * Actual demand for period 1 + (1-alpha) * Forecast for period 1
Let plug in the
Forecast for period 2= 0.2 * 7+ (1-0.2)* 5
Forecast for period 2= 5.4 units
Now let determine the Forecast for period 3
Using this formula
Forecast for period 3 = Alpha* Actual demand for period 2 + (1- alpha) * Forecast for period 2
Let plug in the formula
Forecast for period 3= 0.2 * 9 + (1-0.2)* 5.4
Forecast for period 3=6.12units
Therefore what should be the forecast for period 3 is 6.12 units
A Type I subsequent event refers to _______. an event that occurred after the date of the financial statements an event that is typified by debit entries to contra-revenue accounts a contingent event, that may or may not occur an event that most likely occurred before the date of the financial statements
Answer:
that most likely occurred before the date of the financial statements
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).
Basically, financial statements are formally written records of the business and financial activities of a business entity or organization. The four (4) main types of financial statements are; cash-flow statement, balance sheet, statement of changes in equity and income statement.
Furthermore, there are two (2) main methods used in financial accounting for analyzing financial statements and these are;
I. Vertical analysis.
II. Horizontal analysis.
A Type I subsequent event refers to an event that most likely occurred before the date of the financial statements. Thus, it must have been reported or posted before the date of publishing a financial statement.
On the other hand, any event that is most likely to occur after the date a financial statement is issued, is referred to as a Type II subsequent.
The spending-income multiplier
a. magnifies spending-income changes into smaller changes in aggregate demand, causing demand-pull inflation.
b. magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation.
c. reduces spending-income changes into larger changes in aggregate supply, causing cost-push inflation.
d. reduces spending-income changes into smaller changes in aggregate supply, causing demand-push inflation.
Answer: magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation
Explanation:
The spending multiplier is the ratio of the change in GDP to the change in the autonomous expenditure.
The spending income multiplier magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation. In a situation whereby there's a reduction in the investment spending, there'll be a recession.
Bill Wessels has reviewed the strategic plan from corporate headquarters and is considering how to develop an annual business plan for his business unit that fulfills its part of the strategic plan. Bill is probably a(n)
Answer:
Bill is probably a(n)
SBU manager.
Explanation:
Bill Wessels, as a strategic business unit (SBU) manager, is responsible for strategic planning, profitability, and performance of his business unit. The SBU is a separate identifiable business unit in an entity with other SBUs. It has a manager, who is largely autonomous in pursuing the business mission of the unit. It manages and accounts for its resource utilization separately from other units. Its performance is evaulated based on set criteria.
The balance in the unearned fees account, before adjustment at the end of the year, is $14,530. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $7,480. If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6
Answer and Explanation:
The adjusting journal entry is given below;
Unearned fee revenue $7,050 ($14,530 - $7,480)
To Fee revenue $7,050
(Being the fees revenue is recorded)
here the unearned fees revenue is debited as it decreased the liabilities and credited the fees revenue as it increased the revenue
Suppose the demand function (D) for golf clubs is: QP, where P is the price paid by consumers in dollars per club and Q is the quantity demanded in thousands. Suppose the supply curve (S) for golf clubs is estimated to be: QP. Calculate the equilibrium price for golf clubs and the equilibrium quantity sold. The equilibrium price is $ 75 per club (Enter your response as an integer.), and the equilibrium quantity is 75 thousand clubs (Enter your response as an integer.) Suppose instead that golf club producers agree to charge a price of $ per club. This would result in a surplus of nothing thousand clubs (Enter your response as an integer.)
Answer:
(a)
The equilibrium price is $75 per club
The equilibrium quantity is 75000 clubs
(b)
A charge a price of $50 per club. This would result in a surplus of 25000 clubs
Explanation:
Given
[tex]Q = 150 - 1.00P[/tex] --- The demand function
[tex]Q = 1.00P[/tex] --- The supply function
Solving (a): The equilibrium price and quantity
To do this, we equate both functions
This gives:
[tex]1.00P = 150 - 1.00P[/tex]
Collect like terms
[tex]1.00P+1.00P = 150[/tex]
[tex]2.00P = 150[/tex]
Make P the subject
[tex]P =\frac{150}{2.00}[/tex]
[tex]P = \$75[/tex] ---The equilibrium price
Substitute 75 for P in [tex]Q = 1.00P[/tex]
[tex]Q = 1.00 * 75[/tex]
[tex]Q = 75[/tex] ---- The equilibrium quantity
Solving (c): When the price is changed to $50
This means that: [tex]P =50[/tex]
The quantity demanded will be:
[tex]Q = 150 - 1.00P[/tex]
[tex]Q = 150 - 1.00 * 50[/tex]
[tex]Q = 150 - 50[/tex]
[tex]Q = 100[/tex]
Subtract the equilibrium quantity from [tex]Q = 100[/tex] to get the shortage/surplus
[tex]\triangle Q = 100 - 75[/tex]
[tex]\triangle Q = 25[/tex]
Since the change is positive, then there is a surplus.
If a binding price floor is imposed on the video game market, then Question 8 options: the quantity of video games demanded will decrease. the quantity of video games supplied will increase. a surplus of video games will develop. All of the above are correct.
Answer:
All of the above are correct.
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Because price is set above equilibrium price, quantity supplied would exceed quantity demanded and there would be a surplus.
Because price is set above equilibrium price, quantity demanded will decrease
Novak Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2020, Novak entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,900 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $8,700. In addition, Walleye agrees to pay an additional $21,800 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
Required:
a. Prepare the journal entries for Tyler in 2019 and 2020 related to this service contract.
b. Prepare the journal entries for Tyler in 2020 related to the modified service contract, assuming a prospective approach.
c. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation
Answer: See explanation
Explanation:
a. 1 jan 2020
Debit Cash $10,900
Credit Unearned revenue $10,900
31st dec 2020
Debit Unearned revenue $10,900
Credit Service revenue $10,900
1 jan 2020
Debit Cash $10,900
Credit Unearned revenue $10,900
31st dec 2020
Debit Unearned revenue $10,900
Credit Service revenue $10,900
b. 1 Jan 2021
Debit Cash $30500
Credit Unearned revenue $30500
31st dec 2020
Debit Unearned revenue $7,625
Credit Service revenue $7,625 ($30500/4)
c. 1 Jan 2020
Debit Cash $30500
Credit Unearned revenue $30500
31st Dec 2020
Debit Unearned revenue $8,700
Credit Service revenue $8,700
Which of the following statements about striving to reduce labor costs per pair produced at each of the company's plants is true?
a. A company cannot achieve labor costs per pair produced that are close to the lowest in the industry (in those geographic regions where it has plants) unless its annual total compensation of plant workers is below the average annual total compensation paid by all companies with plants in these same regions.
b. All companies, regardless of the strategy being employed, should pursue actions to manage employee compensation and labor productivity in a manner that results in labor costs per pair produced that are equal to (or very close to) the industry-low in each region where the company has plants.
c. It is very difficult for a company producing branded footwear with a high S/Q rating to achieve labor costs per pair produced that are below the industry average in each geographic region where the company has plants.
d. A company pursuing a low-cost provider strategy is better able to pursue actions aimed at achieving low labor costs per pair produced in each of its plants (as compared to the labor costs of companies with plants in the same regions) than is a company pursuing a differentiation strategy.
e. It is more cost effective for a company to compensate plant workers at levels that are close to the highest in the industry in each geographic region where it has plants than it is for a company to pursue actions to keep labor costs per pair produced below the industry average in each geographic region where it has plants.
Answer:
b. All companies, regardless of the strategy being employed, should pursue actions to manage employee compensation and labor productivity in a manner that results in labor costs per pair produced that are equal to (or very close to) the industry-low in each region where the company has plants.
Explanation:
The less labor cost of production per pair could be attained in following two ways
1. The productivity level is icnreased
2. The compensation should be managed and it provides the combination of both fixed and variable. Also it pays the high compensation but at the more productivity rate due to which the labor cost per pair would fall
So as per the given situation, the option b is correct
when goods are sold to a customer by entity and customer promise to pay amount at certain future time period that is know as
Answer:
Promissory agreement.
Explanation:
A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.
Thus, when goods are sold to a customer by a business entity and the customer promises to pay an amount of money at a certain future time period it is known as a promissory agreement.
A promissory note can be defined as a signed document that contains a written promise by a customer to pay a specific amount of money to an individual or business firm, on demand or at a certain future time period, for the goods or services purchased.
dentify the statement below that is incorrect. Multiple Choice The normal balance of accounts receivable is a debit. The normal balance of dividends is a debit. The normal balance of unearned revenues is a credit. The normal balance of an expense account is a credit. The normal balance of the common stock account is a credit.
Answer: The normal balance of the common stock account is a credit.
Explanation:
Based on the information given, the correct statements are:
• The normal balance of accounts receivable is a debit.
• The normal balance of dividends is a debit.
• The normal balance of unearned revenues is a credit.
It should be noted that the statement that "The normal balance of an expense account is a credit" is incorrect. The normal balance of the common stock account is not a credit but rather a debit.
Wolfe Company had the following beginning inventory and purchases during 2018 Date Transaction Number of units Unit Cost 1/1 Beginning inventory 2,000 $22.00 4/12 Purchase No. 1 2,300 $26.00 7/11 Purchase No. 2 800 $28.00 10/5 Purchase No. 3 1,250 $30.00 Wolfe sold 4,100 units Determine the amount of ending inventory and cost of goods sold using the following methods: Method Ending inventory Cost of Goods Sold LIFO FIFO Weighted average
Answer:
Wolfe Company
The amount of:
LIFO FIFO Weighted Average
Ending inventory $50,500 $65,100 $58,005
Cost of goods sold $113,200 $98,600 $105,698
Explanation:
a) Data and Calculations:
Date Transaction Number of units Unit Cost Cost Value
1/1 Beginning inventory 2,000 $22.00 $44,000
4/12 Purchase No. 1 2,300 $26.00 59,800
7/11 Purchase No. 2 800 $28.00 22,400
10/5 Purchase No. 3 1,250 $30.00 37,500
Total inventory available 6,350 $163,700
Wolfe sold 4,100
Ending Inventory 2,250
LIFO
Ending Inventory = $50,500 (250 * $26 + 2,000 * $22)
Cost of goods sold:
4/12 Purchase No. 1 2,050 $26.00 53,300
7/11 Purchase No. 2 800 $28.00 22,400
10/5 Purchase No. 3 1,250 $30.00 37,500
Total cost of goods sold = 4,100 $113,200
FIFO:
Ending Inventory = Cost of goods available for sale - Cost of goods sold
= $65,100 ($163,700 - $98,600)
Cost of goods sold:
1/1 Beginning inventory 2,000 $22.00 $44,000
4/12 Purchase No. 1 2,100 $26.00 54,600
Total cost of goods sold = $98,600
Weighted average:
Weighted average cost = $25.78 ($163,700/6,350)
Ending inventory = $58,005 (2,250 * $25.78)
Cost of goods sold = $105,698 (4,100 * $25.78)
A regression model is used to forecast sales based on advertising dollars spent. The intercept is $500 and the slope is $35. The R-squared value is 0.90. Which is the best statement about this forecasting model?
a. The correlation coefficient between sales and advertising is 0.81.
b. For every $1 spent on advertising, sales are predicted to increase by $500.
c. For every $35 spent on advertising, sales are predicted to increase by $1.
d. Even if no money is spent on advertising, the company realizes $500 of sales.
Answer: d. Even if no money is spent on advertising, the company realizes $500 of sales.
Explanation:
In a regression model, the intercept term tells us the value of y when the value of x is zero.
According to this model, the y value here is the forecasted sales. The x value is the advertising dollars spent and the intercept is $500.
This therefore means that when no money is spent on advertising i.e. x = 0, the sales(y) would be $500 which is the intercept term.
There are several attempts to explain Marvels Success via competetive strategy but they fall flat: competitve strategy, with this specific case neither predicts nor explains the outcome why?
Answer:
It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.
Explanation:
This question is taken from a book titled "The Marvel Way: Restoring a Blue Ocean". It was written by W. Chan Kim, Renee Mauborgne, Michael Olenick. The central theme of the book was about one of the greatest turnarounds in modern business history by the then Marvel CEO with the name Peter Cuneo who was responsible for turning the business around and succeeded in launching a blue ocean.
From the question, neither predicts nor explains the outcome because;
It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.
Journalize the below entries.
Jul. 2 Sold merchandise inventory on credit, terms n/30, to Intelimate, Inc., $1,900 (cost, $300).
Jul. 3 Sold office supplies to an employee at cost, $55, receiving cash.
Jul. 7 Cash sales for the week totaled $2,100 (cost, $1,640).
Jul. 9 Sold merchandise inventory on account, terms n/30, to A. C. Malloy, $7,000 (cost, $5,600).
Jul. 10 Sold land that cost $11,000 for cash of the same amount.
Jul. 11 Sold merchandise inventory on account, terms n/30, to Super Electric, $5,300 (cost, $3,520).
Jul. 12 Received cash from Intelimate in full settlement of its account receivable from July 2.
Jul. 14 Cash sales for the week were $2,200 (cost, $1,600).
Jul. 15 Sold merchandise inventory on credit, terms n/30, to the partnership of Westin
Answer:
Journal Entries:
Jul. 2 Debit Accounts Receivable (Intelimate, Inc.) $1,900
Credit Sales Revenue $1,900
To record the sales on credit, terms n/30
Debit Cost of goods sold $300
Credit Inventory $300
To record the cost of goods sold.
Jul. 3 Debit Cash $55
Credit Office supplies $55
To record the sale of office supplies to a staff.
Jul. 7 Debit Cash $2,100
Credit Sales Revenue $2,100
To record a cash sale.
Debit Cost of goods sold $1,640
Credit Inventory $1,640
To record the cost of goods sold.
Jul. 9 Debit Accounts Receivable (A.C. Malloy) $7,000
Credit Sales Revenue $7,000
To record the sale of goods on account, terms n/30
Debit Cost of goods sold $5,600
Credit Inventory $5,600
To record the cost of goods sold.
Jul. 10 Debit Cash $11,000
Credit Land $11,000
To record the sale of land for cash.
Jul. 11 Debit Accounts Receivable (Super Electric) $5,300
Credit Sales Revenue $5,300
To record the sale of goods on account, terms n/30
Debit Cost of goods sold $3,520
Credit Inventory $3,520
To record the cost of goods sold.
Jul. 12 Debit Cash $1,900
Credit Accounts Receivable (Intelimate, Inc.) $1,900
To record the receipt of cash in full settlement.
Jul. 14 Debit Cash $2,200
Credit Sales Revenue $2,200
To record the sale of goods for cash.
Debit Cost of goods sold $1,600
Credit Inventory $1,600
To record the cost of goods sold.
Jul. 15 Debit Accounts Receivable (Westin Partnership) $5,000
Credit Sales Revenue $5,000
To record the sale of goods on credit, terms n/30
Debit Cost of goods sold $3,000
Credit Inventory $3,000
To record the cost of goods sold.
Explanation:
a) Data and Analysis:
Jul. 2 Accounts Receivable (Intelimate, Inc.) $1,900 Sales Revenue $1,900 on credit, terms n/30
Cost of goods sold $300 Inventory $300
Jul. 3 Cash $55 Office supplies $55
Jul. 7 Cash $2,100 Sales Revenue $2,100
Cost of goods sold $1,640 Inventory $1,640
Jul. 9 Accounts Receivable (A.C. Malloy) $7,000 Sales Revenue $7,000 on account, terms n/30 Cost of goods sold $5,600 Inventory $5,600
Jul. 10 Cash $11,000 Land $11,000
Jul. 11 Accounts Receivable (Super Electric) $5,300 Sales Revenue $5,300 on account, terms n/30
Cost of goods sold $3,520 Inventory $3,520
Jul. 12 Cash $1,900 Accounts Receivable (Intelimate, Inc.) $1,900
Jul. 14 Cash $2,200 Sales Revenue $2,200
Cost of goods sold $1,600 Inventory $1,600
Jul. 15 Accounts Receivable (Westin Partnership) $5,000 Sales Revenue $5,000 on credit, terms n/30
Cost of goods sold $3,000 Inventory $3,000 ($5,000 and $3,000 imagined).
Recommend specific tools and detailed strategies to help Booktix meet their goals & suggest which platform would be the best for them.
Answer: Hello your question has some missing details
Their goals are as follows:
• Create brand and product awareness
• Engage with users
• Increase website traffic and conversions
answer :
Tools : Qwaya , Ads A/B Testing , AD roll
" A social media platform " can be used to achieve these goals
Explanation:
Booktix goals been
to Create brand and product awareness , Engage with users and Increase website traffic and conversions
some of The best tools that they can use are:
Qwaya : This is an all in one software that can help Brook tix achieve all their goals in one place
Ads A/B Testing; this tool is used to test for the results of adverts been run. the main purpose of this tool is to help you know where to channel your resource for future adverts .
AD roll ; A tool used for the purpose of retargeting potential and existing clients
The platform I would recommend for Booktix is " A social media platform "
A cost center is a unit of a business that incurs costs without directly generating revenues. All of the following are considered cost centers except:
A. Accounting deportment at Warner Bros.
B. Juice division at Coca Cola.
C. Advertising department at Hertz.
D. Purchasing department at Best Buy.
E. Research department at Microsoft.
Explanation:
Juice division at Coca Cola is not an example of cost center.
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Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200 of A, short $100 of B and invest the short proceeds in Treasury Bills. What is the expected return of your portfolio?
A. 8%
B. 9%
C. 10%
D. 11%
Answer:
The expected return of the portfolio is:
= C. 10%
Explanation:
a) Data and Calculations:
Expected return of Stock A = 8%
Expected return of Stock B = 2%
Return of Treasury = 4%
Cost of Stock A = $200
Sale of Stock B = $100
Investment in Treasury Bills = $100
Stock A Stock B Treasury Bills Portfolio
Expected return 8% 2%
Weight of stock 0.667 0.333
Return 0.0534 0.0067 0.04 0.1001
Portfolio return = 10%
difference between white collar job and blue collar job?
Answer:
Kindly check explanation
Explanation:
White and blue collar jobs are usually differentiated in terms of the job setting or environment in which each group of job is undertaken. The white collar jobs are job categories whereby staffs often work in offices such that most of the duties performed are on computers or writing. This may include ; banking, clerical and administrative jobs and other related job fields.
Blue collar jobs in the other hand could be described as being less formal as it Involves most of the business or trade related job types whereby individuals could be seen undergoing laborious jobs. This jobs may be skilled or unskilled and the job types include cost uctjoj workers, artisans, mechanics, electctricians and so on.
Blue collar jobs cannot keep the sort of tidy outlook white collar job do keep due to the nature of their work. Hence, this palys a role in the name given as blue clothes are often more accommodation of dirt or stain than white garments.
A stock has a correlation with the market of 0.64. The standard deviation of the market is 30%, and the standard deviation of the stock is 38%. What is the stock's beta
Answer:
0.811
Explanation:
Calculation to determine What is the stock's beta
Using this formula
Stock's beta=Market correlation*Stock standard deviation*Market standard deviation/Market standard deviation^2
Let plug in the formula
Stock's beta=(0.64)(0.38)(0.30)/0.30^2
Stock's beta=0.07296/0.09
Stock's beta=0.811
Therefore the stock's beta is 0.811
Suppose the United States and Japan have the following production possibility tables:
Japan United States
Bolts of Cloth Tons of Wheat Bolts of Cloth Tons of Wheat
1,000 0 500 0
800 100 400 200
600 200 300 400
400 300 200 600
200 400 100 800
0 500 0 1,000
a. Draw each country’s production possibility curve.
b. In whatgooddoesthe United States have a comparative advantage?
c. Is there a possible trade that benefits both countries?
d. Draw their combinedproduction possibility curve. L04
Answer:
a) attached below
b) Wheat production
c) Yes there is a possible trade that benefits both countries
d) attached below
Explanation:
Opportunity cost can be expressed as
= Value/cost of alternative / value/cost of chosen alternative
a) Draw each country's production possibility curve
attached below
b) United state have a comparative advantage in Wheat production because of lower opportunity cost
c) The possible trade that would benefit both countries is when both countries trade on goods that they have lower comparative opportunity cost
i.e. Japan producing just Bolt cloths while United states produce Wheat alone
d) combined production possibility curve
attached below
In a continuous review inventory system, the lead time for door knobs is weeks. The standard deviation of demand during the lead time is units. The desired cycle-service level is percent. The supplier of door knobs streamlined its operations and now quotes a 1 week lead time. Refer to the standard normal tableLOADING... for z-values. How much can the safety stock be reduced without reducing the percent cycle-service level? The safety stock can be reduced by nothing door knobs. (Enter your response rounded to the nearest whole number.)
Answer:
The answer is "116 doorknobs".
Explanation:
The standard deviation of the demand before the (four weeks) protection intervals = [tex]\sigma-d \times (\sqrt{L}) = 100 \ units\\[/tex]
The desired cycle service level is [tex]99\%[/tex].Therefore, [tex]z = 2.33[/tex]
The safety stocks for the four-weeks protecting interval are:
Safety stock [tex]= z\times [ \sigma-d \times (\sqrt{L})][/tex]
[tex]= 2.33 \times 100 \\\\= 233\ door\ knobs[/tex]
The safety stocks require for the one-week protection interval are: [tex]\sigma-dLT = \sigma-dt \times (\sqrt{L}) = \sigma-dt \times (\sqrt{4}) = 100\ door\ knobs\\\\\sigma-d = \frac{100}{(\sqrt{4})} = \frac{100}{2} = 50 \ door\ knobs\\\\[/tex]
Safety stock [tex]= z\times \sigma-dt = 2.33 \times 50 = 116.5 \ or\ 117 \ door\ knobs\\\\[/tex]
Safety stock reduction[tex]= 233 -117 = 116 \ door\ knobs[/tex]
Deflation:_____.
a. might easily make both producers and consumers better off because consumers might lose jobs due to falling prices and profit margins, and the falling profit margins would negatively impact producers.
b. automatically implies that, on average, everyone is better off because prices have fallen.
c. would negatively affect producers but positively affect consumers because producers must accept lower prices.
d. automatically occurs when there are more goods with falling prices than there are goods with increasing prices.
Answer: c. would negatively affect producers but positively affect consumers because producers must accept lower prices.
Explanation:
Deflation refers to the reduction in the general price level of the goods and the services in an economy. It takes place when inflation rate is below 0%.
Deflation increases the value of a currency. This would negatively affect producers but positively affect consumers because producers must accept lower prices.
________ is the process of coordinating all messages, media and activities used by an organization to communicate with the market across different communication methods
Answer:
integrated Marketing communication
Explanation:
This method is used by firms and companies to brand their communications and also in their coordination. It makes sure that all the various forms of communications are well linked together. This would create a unified communication channel for the consumer during their interactions with the enterprise. the aspects it integrates includes, advertising, public relations, social media and promotion of sales.
Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.80 per pound and costs $15.55 per pound to produce. Product D would sell for $35.65 per pound and would require an additional cost of $11.65 per pound to produce. What is the differential cost of producing Product D
Answer:
the differential cost is $11.65 per pound
Explanation:
The computation of the differential cost of producing product D is shown below:
Here the differential cost of generating product B should be considered as the additional cost needed to produced i.e. $11.65 per pound
Therefore the differential cost is $11.65 per pound
So, the same should be relevant
For the same monopolist firm as in the previous question, what is the price that the monopoly chooses to set to go along with its quantity choice
Hi, you've asked an incomplete question. However, I provided some explanation about what monopoly entails.
Explanation:
Note that the term monopoly basically refers to a market environment in which an entity or enterprise is the only producer of a particular commodity.
In such a situation, the monopolist firm has a market advantage of being able to choose what price to sell its products without been concerned about the price of the competitor's products.
Sheffield Corp. sells $2600 of merchandise on account to Concord Company with credit terms of 2/11, n/30. If Concord Company remits a check taking advantage of the discount offered, what is the amount of Concord Company's check
Answer:
the amount of the concord company check is $2,548
Explanation:
The computation of the amount of the concord company check is shown below:
= Sale value of the merchandise - discount
= $2,600 - ($2,600 × 2%)
= $2,600 - $52
= $2,548
Hence, the amount of the concord company check is $2,548
The same should be considered
Saunders and Flimsy Partnership paid dividends of $0.27 and $0.15 per share last year. If yesterday's closing price was $12.27, what is the current yield on the stock
Answer:
the current yield on the stock is 3.42%
Explanation:
the computation of the current yield on the stock is shown below:
Current yield = Annual dividends paid ÷ Current market closing price
= ($0.27 + $0.15) ÷ $12.27
= $0.42 ÷ $12.27
= 3.42%
hence, the current yield on the stock is 3.42%
we simply applied the above formula to determine the current yield on the stock
Camille Noah is investing $5,000 in an account that pays an annually compounded rate of 6.75 percent for three years. What is the interest on interest if interest is compounded
Answer:
$69.88
Explanation:
Calculation to determine the interest on interest if interest is compounded
First step is to calculate Simple interest per year
Deposit today represent PV = $5,000
Interest rate represent i = 6.75%
No. of years represent n = 3
Simple interest per year = $5,000 × (0.0675)
Simple interest per year= $337.50
Second step is to calculate the Simple interest for 3 years
Simple interest for 3 years = $337.50 × 3
Simple interest for 3 years= $1,012.50
Fourth step is to calculate the Future value with compound interest (FV3)
FV3 = $5,000 (1 + 0.0675)^3
FV3=$5,000+(1.0675)^3
FV3= $6,082.38
Now let determine the Interest on interest
Interest on interest = $6,082.38 - $5,000 - $1,012.50
Interest on interest = $69.88
Therefore the interest on interest if interest is compounded is $69.88
Aurillo Equipment Company (AEC) projected that its ROE for next year would be just 6
percent. However, the financial staff has determined that the firm can increase its ROE by refinancing some high interest bonds currently outstanding. The firm’s total debt will remain at $200,000 and the debt ratio will hold constant at 80 percent, but the interest rate on the refinanced debt will be 10 percent. The rate on the old debt is 14 percent. Refinancing will not affect sales, which are projected to be $300,000. EBIT will be 11 percent of sales and the firm’s tax rate is 40 percent. If AEC refinances its high interest bonds, what will be its projected new ROE?
Answer:
Aurillo Equipment Company (AEC)
If AEC refinances its high interest bonds, its projected new ROE will be:
= 15.6%
Explanation:
a) Data and Calculations:
Total debt = $200,000
Debt ratio = 80%
Total assets = $250,000 ($200,000/80%)
Equity = $50,000 ($250,000 - $200,000)
Old interest rate on old debt = 14%
New interest rate on refinanced debt = 10%
Total interest = $20,000 ($200,000 * 10%)
Sales revenue = $300,000
EBIT = $33,000
Interest 20,000
Before tax $13,000
Tax = 5,200 (40% of $13,000)
Net income $7,800
ROE = Net income/Equity * 100
= ($7,800/$50,000 * 100)
= 15.6%
