Answer:
South Charleston Plant of Ravinia, Inc.
1. Cost behavior formula:
Forklift depreciation = $1,600 + $0q
Indirect labor = $43,000 + $6.20q
Fuel and oil for forklift = $3,550 + $0.71 (q - 5,000)
2. Cost of each item for an activity output level of 8,000 moves:
Forklift depreciation = $1,600
Indirect labor = $92,600
Fuel and oil for forklift = $5,680
3. Total cost formula = $48,150 + $6.47q
Materials handling cost = $99,880
Explanation:
a) Data and Calculations:
Resource Number of Moves Total Cost
Forklift depreciation:
Low 5,000 $1,600
High 15,000 1,600
Indirect labor:
Low 5,000 $74,000
High 15,000 136,000
Fuel and oil for forklift:
Low 5,000 $3,550
High 15,000 10,650
Cost behavior formula for each resource:
Forklift depreciation:
Low 5,000 $1,600
High 15,000 1,600
Difference 10,000 $0
Variable cost per unit = $0 ($0/10,000)
Fixed cost = $1,600
Cost behavior formula = $1,600 + $0q
Indirect labor:
Low 5,000 $74,000
High 15,000 136,000
Difference 10,000 62,000
Variable cost per unit = $6.20 ($62,000/10,000)
Fixed cost = $43,000 ($74,000 - ($6.20*5,000))
Cost behavior formula = $43,000 + $6.20q
Fuel and oil for forklift:
Low 5,000 $3,550
High 15,000 10,650
Difference 10,000 $7,100
Variable cost per unit = $0.71 ($7,100/10,000)
Fixed cost = $3,550 ($3,0 - ($0.71 * (15,000 - 5,000))
Step cost
Cost behavior formula = $3,550 + $0.71 (q - 5,000)
Forklift depreciation = $1,600 + $0 * 8,000 = $1,600
Indirect labor = $43,000 + $6.20 * 8,000 = $92,600
Fuel and oil for forklift = $3,550 + $0.71 (8,000 - 5,000) = $5,680
Total cost formula: Fixed + Variable
Forklift depreciation = $1,600 + $0 * 8,000 = $1,600
Indirect labor = $43,000 + $6.20 * 8,000 = $92,600
Fuel and oil for forklift = $3,550 + $0.71 (8,000 - 5,000) = $5,680
$48,150 + $51,730 = $99,880
= $48,150 + $6.47q ($51,730/8,000)
Materials handling cost = ($1600 + $43000) + ($6.20 + $0.71) X
= $44600 + $6.91 X
Y = $44600 + ($6.91 x 8000)
= $44600 + $55280
= $99880
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75. Michelle was willing to pay up to $6.75 for the cappuccino and Paul's Cafe and Bakery was willing to accept S1.25 for the cappuccino. Based on this information, answer the questions below.
Michelle's consumer surplus is equal to: _______
Paul's Bakery's producer surplus is equal to:__________
Answer:
$2
$3.50
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
$6.75 - $4.75 = $2
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
$4.75 - $1.25 = $3.5
MLX has annual sales of $320 million per year and has calculated the collection float to be 12 days. If MLX is currently paying 9.35% on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days? (Assume 365 days per year.
Answer:
The right solution is "$245,917.81".
Explanation:
According to the question,
Interest,
= 9.35%
Sales,
= 320000000
Float reduction,
= 3
Now,
Saving in interest will be:
= [tex]Sales\times Interest\times \frac{Float \ reduction}{365}[/tex]
By substituting the values, we get
= [tex]320000000\times 9.35 \ percent\times \frac{3}{365}[/tex]
= [tex]245,917.81[/tex] ($)
a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Answer: $2.5 billion
Explanation:
You need to first calculate the multiplier.
The multiplier is the amount that shows the effect of an increase in government spending on the aggregate demand of a country.
It is calculated as:
= 1 / ( 1 - MPC)
= 1 / ( 1 - 0.9)
= 10
Increase in aggregate demand = Government spending * multiplier
25 billion = G * 10
G = 25 billion / 10
= $2.5 billion
Which increases GDP the most: 1 pound of dried beans or one pound of New York strip steak?
Answer:
To determine which increases GDP the most, 1 pound of dried beans or one pound of New York strip steak, the value of each of these foods must be considered. Thus, knowing that in general meat has a much higher market value than beans (in supermarkets, 1 pound of beans costs about $ 2 or $ 3, while 1 pound of New York strip steak costs about $ 13), 1 pound of New York strip steak increases GDP the most.
With its current levels of input use, a firm's MRTS is 1/3 (when capital is on the vertical axis and labor is on the horizontal axis). This implies:__________.
A. the firm conld produce 3 more units of output if it increased its use of capital by one unit (holding labor constat).
B. the firm could produce 3 more units of output if it increased its use of labor by one unit (holding capital constant).
C. if the firm reduced its capital stock by one unit, it would have to hire 3 more worlkers to maintain its eurrent level of output.
D. the marginal product of labor is 3 times the marginal product of capital.
Answer: A. the firm could produce 3 more units of output if it increased its use of capital by one unit (holding labor constant).
Explanation:
The Marginal Rate of Technical Substitution(MRTS) is calculated as follows:
= Marginal product of labor / Marginal product of capital
= 1 / 3
Marginal product of labor = 1
Marginal product of capital = 3
This means that if one unit of labor is used, it produces 1 unit of output.
If one unit of capital is used however, it produces 3 units of output.
If a firm therefore used one unit of capital and kept labor constant, it could produce 3 units out output.
Justin builds fences for a living. Justin's out-of-pocket expenses (for wood, paint, etc.) plus the value that he places on his own time amount to his a. profit. b. producer surplus. c. cost of building fences.
Answer:
c. Cost of building fences.
Explanation:
The cost of production encompasses the money spend as well as the time to produce a commodity. For example, if a person spends $15 to make a juice cup and invest 1 hour to make so the total cost of production is $15 and the time invested by the producer. Thus, option "c" is correct.
When the United States sends money to Japan to help earthquake survivors, in which account is this transaction recorded
Answer:
When the United States sends money to Japan to help earthquake survivors, in which account is this transaction recorded? o credit item in that country's balance of payments.
WoodCore Inc. produces an entire line of office furniture at its manufacturing facility in the United States and then ships its products for sale to various companies in Europe. WoodCore Inc. is involved in A. outsourcing. B. licensing. C. franchising. D. exporting. E. diversifying.
Answer: D. exporting
Explanation:
Exporting is the sale of goods to other countries apart from your own even though the goods being sold were produced in your own country.
Exporting works best when the country doing the exporting is capable of producing the goods being exported at a lower price than the country that it is sending to, that way the people in that country have an incentive to buy it over locally made products. WoodCore is producing in the U.S. and selling elsewhere. This is exporting.
Classify each statement about the Federal Reserve System as either true or false.
1. The Federal Reserve was established by the U.S. Constitution in the late 1700s.
2. The national objectives of the Federal Reserve include promoting economic growth, full employment, stable prices, and moderate interest rates.
3. All Federal Reserve actions are subject to veto by the executive branch.
4. The Federal Reserve determines monetary policy in the United States.
5. The Federal Reserve was created by the Federal Reserve Act of 1913.
Answer:
1. The Federal Reserve was established by the U.S. Constitution in the late 1700s
Classification: False
2. The national objectives of the Federal Reserve include promoting economic growth, full employment, stable prices, and moderate interest rates.
Classification: True
3. All Federal Reserve actions are subject to veto by the executive branch.
Classification: False
4. The Federal Reserve determines monetary policy in the United States.
Classification: True
5. The Federal Reserve was created by the Federal Reserve Act of 1913.
Classification: True
Emphasis on the quantitative aspects of products sold (ie: portion size, price) and services offered (the time it takes to get the product) is called
Answer:
Calculability
Explanation:
A transaction can be defined as a business process which typically involves the interchange of goods (products), financial assets, services and money between a seller and a buyer.
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
A service can be defined as an intangible (immaterial), non-physical activities, satisfactions or benefits that are offered for sale by a business service or provided to accompany the sales of a product. Thus, it's an action that involves offering something to a service taker or customer in return for an amount of money as payment.
In Business management, calculability is the emphasis of a business firm on the quantitative aspects (portions, price, size) of products sold and services offered (the time it takes the consumer to get the product). Thus, calculability avails a business firm the opportunity to emphasize on the quantity of product sold rather than a qualitative factor.
The name which is given to the emphasis on the quantitative aspects of products sold (ie: portion size, price) and services offered (the time it takes to get the product) is called
Calculability
Calculability has to do with the ability to make calculations on the goods which are transacted by a company at any given time and how the services which were offered such as time taken to get the product.
With this in mind, we know that in a capitalist state, the main aim of any business is to make profit and calculability is used to show the quantitative aspects of the products which are sold and the services offered to determine profit.
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1. The advantage of trade is a very important concept in economics. In examining trade between two individuals or two countries, you usually see at least one side specializing in the production of one good. A. What concept is most important in determining which good a person or nation will specialize in the production of
Answer:
Comparative advantage
Explanation:
In simple words, The capacity of a country to provide a certain item or service at a lower opportunity price than its trade rivals is known as competitive advantage. A competitive edge allows a firm to sell products and solutions at a cheaper cost than its rivals while maintaining higher profit margins.
Thus, from the above we can conclude that the correct answer is comparative advantage.
Ideally, a profit oriented firm desires to denominate bonds in a currency that: ________.
a. Exhibits a low interest rate and is expected to depreciate.
b. Exhibits a high interest rate and is expected to depreciate.
c. Exhibits a low interest rate and is expected to appreciate.
d. Exhibits a high interest rate and is expected to appreciate.
Answer: exhibits a low interest rate and is expected to depreciate.
Explanation:
Bonds are the debt securities which are issued by the governments or corporations, and usually have a lower risk and reward than stocks.
A profit oriented firm desires to denominate bonds in a currency that exhibits a low interest rate and is expected to depreciate.
What IHRM activities would be pertinent to the sending, by Médecins Sans Frontieres, of a medical team into a country such as Bangladesh?
Answer:
It is the responsibility of the HR department to enable employees to perform a job with skill, safety and ideal conditions.
Therefore, in a Médecins Sans Frontières program with the sending of a medical team to a country like Bangladesh, it would be the competence of the responsible company's HR, to prepare its team to be received in the place with good housing, food and security conditions. Enabling and training the medical team to deal with the work and demands of a country like Bangladesh, which, being a country with a lot of social inequality and conditions of poverty, has particular challenges in relation to health, which the doctors sent should be well prepared to take on that job and the risks involved.
To select a strategy in a two-person, zero-sum game, Player A follows a ________ procedure and Player B follows a ________ procedure.
Answer:
None of these is correct
Explanation:
None of these is correct. The correct answer is that; it should be minimax
Ahngram Corp. has 1,000 defective units of a product that cost $3.70 per unit in direct costs and $7.20 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.70 per unit or reworked at an additional cost of $3.30 and sold at full price of $14.10. The incremental net income (loss) from the choice of reworking the units would be:
Answer:
Reowrk:
Effect on income= $10,800 increase
Explanation:
Giving the following information:
Number of units= 1,000
Sell as-is:
Selling price= $4.7
Rework:
Incremental cost= $3.3
Selling price= $14.1
We need to calculate the effect on the income of both options:
Sell as-is:
Effect on income= 4.7*1,000= $47,000 increase
Rework:
Effect on income= 1,000*(14.1 - 3.3)
Effect on income= $10,800 increase
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 48,000 48,000
Accounts
Receivable 18,000 18,000
Supplies 6,000 6,000
Equipment 57,000 57,000
Accumulated Depreciation 18,000 18,000
Accounts Payable 25,000 25,000
Wages Payable 6,000 6,000
Common Stock 30,000 30,000
Retained Earnings 3,000 3,000
Dividends 3,000 3,000
Fees Earned 155,000 155,000
Wages Expense 63,000 63,000
Rent Expense 27,000 27,000
Depreciation
Expense 15,000 15,000
Totals 237,000 237,000 105,000 155,000 132,000 82,000
Net Income (Loss) 50,000 50,000
155,000 155,000 132,000 132,000
The entry to close Dividends would be:_____.
a. debit Retained Earnings, $3,000; credit Common Stock, $3,000.
b. debit Common Stock, $3,000; credit Retained Earnings, $3,000.
c. debit Dividends, $3,000; credit Retained Earnings, $3,000.
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.
Answer:
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.
Explanation:
The journal entry to close the dividend account should be
Retained earnings Dr $3,000
To Dividend $3,000
(being the closing of the dividend account is recorded)
here the retained earning is debited as it decreased the stockholder equity and dividend is credited as it is closed
Profit margin is synonymous with the term _______ and tells whether or not total profit will be positive.
Answer: Average profit
Explanation:
Both average profit and profit margin show the percentage of profit that a company can expect to receive from $1 worth of sales. It is calculated by dividing the profits by the sales figure,
If sales are $10 and profits are $3, the profit margin would be:
= 3/10
= 30%
This means that for every $1 of sales, there is $0.30 in profit. This method shows us whether the total profit will be negative or positive by showing us individual product profit.
Employees are quitting at an alarming rate from a classy multi-star hotel. What can the HR team there do to find out the reason for quitting and retain good employees?
The Human resources team can interact with some of the staffs to know the problem.
Who is an employee?An employee is someone who is working for an organization or an individual to gets paid at the end of the job either as wages or salary.
In case of any problem, Human resources team can interact with some of the staffs to know the problem.
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Answer: I believe the answer is C
Explanation:
Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000 What is value of the entity multiple of Company X in Year 1?
Answer:
$5.59
Explanation:
Calculation to determine the value of the entity multiple of Company X in Year 1
Using this formula
Entity multiple=Market value / EBITDA
Let plug in the formula
Entity multiple=$99,450/$17800
Entity multiple=$5.59
Therefore the value of the entity multiple of Company X in Year 1 will be $5.59
A contra account will not:_____.
a. be listed immediately after its related account.
b. be potentially classified as a contra-assets or contra-liabilities.
c. always has a normal debit balance.
d. has a normal balance which is the opposite of its related account.
Answer:
a
Explanation:
first one is the best answer
For Sanborn Co., sales is $1,000,000, fixed expenses are $300,000, and the contribution margin per unit is $60. What is the break-even point? g
Answer:
Break-even point in units= 5,000
Explanation:
Giving the following information:
Sales= $1,000,000
Fixed expenses= $300,000
Contribution margin per unit= $60
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 300,000 / 60
Break-even point in units= 5,000
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories. These categories are: direct and indirect materials. direct costs and indirect materials. indirect materials and conversion costs. direct materials and conversion costs.
Answer:
direct materials and conversion costs.
Explanation:
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories which are direct materials and conversion costs.
This is because Automation does conversion on the Direct Materials which are visible and can be traced to product being manufactured.
Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.
a. True
b. False
Answer:
A) True
Explanation:
Ethical learning can be regarded as educational proposal that has the purpose of preparing students as regards their future working life , through rendering of help to acquire skills that will give them enablement to perform their professions with responsibility as well as autonomy.
Business ethics can be regarded as study of needed business policies as well as business practices. Subject needed to learn could involves could be corporate social responsibility,corporate governance and others. It should be noted that Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.
Last year, a Walmart store in Nebraska had annual sales of $11,390,000, with an average dollar stock amount for the year of $2,149,000. What was the stock turnover for the year at the store in Nebraska? How would the store manager determine if this was a "good" rate of turnover?
Answer:
See below
Explanation:
1. With regards to the information above, stock turnover is computed as cost of goods sold divided by average stock.
Stock turnover = Cost of goods sold / Average stock
Cost of goods sold/Cost of sales = $11,390,000
Average stock = $2,149,000
Then,
Stock turnover = $11,390,000 / $2,149,000
Stock turnover = 5.30 times
Therefore, the stock turnover for the year at the store in Nebraska is 5.30 times
2. The store manager would determine if it was a good rate of turnover if it increases compare to previous stock turnover. Rate of turnover shows the rate or number of times at which a company can sell and replace its stock of goods within a year.
LB Limited is a price taker in a perfectly competitive market. It produces and sells canned spices. The following information is available for the company: Current output 5000 units Current market price $3 Total cost $25,000 Marginal cost $3 Total variable cost $20,000 What is the best action for LB limited? a) Operating in the short run and in the long run b) Increase output in the short run and in the long run c) Shut down in the short run and exit in the long run d) Shut down in the short run and produce in the long run e) Reduce output in the short run and increase output in the long run
Answer:
The answer is "Option c".
Explanation:
In this question c, the short-term Shut - down as well as the long-term departure. Since overall revenues are lower than the entire variable cost, it means that a producer is not capable of covering the variable cost, thus stopping the output in the short term and the business leaving it market on account of losses inside the long term.
MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one to three years of age and includes "tours" of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have impressive sales. However, sales for the third CD in the collection, The Post Office Polka, have lagged the others. Several other CDs are planned for this collection, but none is ready for production.
MSI's information related to the Toddle Town Tours collection follows: Segmented Income Statement for MSI's Toddle Town Tours Product Lines Post Office Parade Getaway _Polka Pet Store Grocery Total Sales revenue Variable costs $110,000 $105,000 $31,000 $246,000 43,000 28,000 118,000 $ 63,000 S 62,000 $ 3,000 $128,000 2,800 16,700 $ 55,800 S 55,300 $ 200 $ 111,300 1,550 12,300 47,000 1000 4 Contribution margin Segment margin Net operating income (loss) Less: Direct Fixed costs 7,200 006,700 Less: Common fixed costs .505350 99,000 50,300 $ 50,050S (1.350) S 5,500 0 $ 50,050 $ (1,350) $99,000 5,250 Allocated based on total sales dollars MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products Required 1. Calculate the incremental effect on profit if the POP product is eliminated Effect on Profit 2. Should MSI drop the POP product?
Answer:
MSI
1. Incremental effect on profit if the POP product is eliminated is:
Profit will be reduced by $200 ($99,000 - $98,800).
2. Yes. MSI should drop the POP product. POP product is like a dog in the BCG matrix.
Explanation:
a) Data and Calculations:
Segmented Income Statement
for MSI's Toddle Town Tours Product Lines
Pet Store Grocery Post Office Total
Parade Getaway Polka Firm
Total Sales revenue $110,000 $105,000 $31,000 $246,000
Variable costs 47,000 43,000 28,000 118,000
Contribution margin $ 63,000 $ 62,000 $ 3,000 $128,000
Less: Direct Fixed costs 7,200 6,700 2,800 16,700
Segment margin $ 55,800 $ 55,300 $ 200 $ 111,300
Less: Common fixed costs 5,500 5,250 1,550 12,300
Net operating income (loss) $50,300 $ 50,050 $ (1,350) $99,000
Segmented Income Statement after POP Elimination
for MSI's Toddle Town Tours Product Lines
Pet Store Grocery Total
Parade Getaway Firm
Total Sales revenue $110,000 $105,000 $215,000
Variable costs 47,000 43,000 90,000
Contribution margin $ 63,000 $ 62,000 $125,000
Less: Direct Fixed costs 7,200 6,700 13,900
Segment margin $ 55,800 $ 55,300 $ 111,100
Less: Common fixed costs 6,275 6,025 12,300
Net operating income (loss) $ 49,525 $ 49,275 $98,800
1. Incremental effect on profit if the POP product is eliminated is:
Profit will be reduced by $200 ($99,000 - $98,800), which is the difference between the allocated fixed cost to POP ($1,550) and its operating loss ($1,350).
2. Yes. MSI should drop the POP product. POP product is like a dog in the BCG matrix.
You are given the following data Stock A Expected return 8.00% Standard deviation 23.00% Stock B Expected return 7.50% Standard deviation 33.00% The correlation of Stock A and Stock B is 0.05. What is the variance of risky portfolio P with 43% in Stock A and the rest in Stock B
Answer:
Variance of risky portfolio P = 4.61%
Explanation:
WA = Weight of stock A = 43%, or 0.43
WB = Weight of stock B = 1 - 0.43 = 0.57
SA = Standard deviation of stock A = 23%, or 0.23
SB = Standard deviation of stock B = 33%, or 0.33
Cab = Correlation of Stock A and Stock B = 0.05
Therefore, we have:
Variance of risky portfolio P = (WA^2 * SA^2) + (WB^2 * SB^2) + (WA * SA * WB * SB * Cab) = (0.43^2 * 0.23^2) + (0.57^2 * 0.33^2) + (0.43 * 0.23 * 0.57 * 0.33 * 0.05) = 0.0461, or 4.61%
Using the probability approach to determine an inventory safety stock and wanting to be 95 percent sure of covering inventory demand, which of the following is the number of standard deviations necessary to have the 95 percent service probability assured?A) 1.28B) 1.64C) 1.96D) 2.00E) 2.18
Answer:
B) 1.64
Explanation:
Given that there is 95% service probability i.e. assured
So here the company applied the approach in normally that sets the probability for not stocking out the 95 percent
So it would have the approx 1.64 standard deviation with respect to the safety stock
Therefore the option c is correct
A company wants to have $20,000 at the end of a ten-year period by investing a single sum now. How much needs to be invested in order to have the desired sum in ten years, if the money can be invested at 12%? (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.
Answer:
$6,439.56
Explanation:
The computation is shown below:
As we know that
Future value = Present Value × Future Value Interest Factor
where,
Future value interest factor = ( 1 + r )^10
= ( 1.12 )^10
= 3.1058
Now
Present value of the future sum is
= $20,000 ÷ 3.1058
= $6,439.56
The Fed threw a lot of money at the financial crisis in 2008 to unfreeze credit markets and encourage economic activity. As part of its effort to keep the interest rateâ low, the Fed purchased government bonds worthâ $300 billion between March and September 2009. Byâ October, the Fed heldâ $770 billion in governmentâ securities, nearly double itsâ pre-crisis total. Before theâ crisis, the Fed held mainly governmentâ securities, which it used to control the quantity of money in the economy. Now government securities make up justâ 35% of theâ Fed's balance sheet.
Required:
If the Fed purchased the government securities on the openâ market, explain why the purchase ofâ $300 billion of government securities would influence the interest rate.
Answer:
The actions of the Fed in 2009 are consistent with an expansionary monetary policy and this policy reduces or keeps interest rates low.
When the Fed bought that many government securities, they flooded the economy with $300 billion in cash. This cash would make its way into the pockets of people and into their bank accounts as savings.
With that many savings, banks would have much more money to loan out to people and as a result of this increase in the supply of loanable funds, interest would fall in order to entice people to borrow more of these excess funds.
