Answer:
Organizations are always looking for new strategies to leverage their profits and market positioning. Corroboration arises then as a strategy in which two or more companies unite temporarily or not, through strategic alliance, licensing, joint venture, outsourcing, etc., with the common objective of expanding their market share and profits.
The way to corroborate influences the success of a collaboration because the chosen strategy is aligned with the organizational values and objectives. When two companies join a strategic alliance, for example, they share their resources, knowledge, technologies, market value and others, to achieve different joint benefits, such as competitive advantage, consumer attraction, greater positioning, increased market share, etc.
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
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
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
Journalise the following transactions of Mr. Aamir Enterprises 4 (i)Mr. Aamirstarted business with Cash ₹60,000.
(ii) Deposited into Bank Rs. 2, 000
(iii). Purchased good for cash Rs. 3, 000
(iv). Building purchased from Hamza Rs. 5, 000.
Answer:
Mr. Aamir Enterprises
Journal Entries:
(i) Debit Cash Rs. 60,000
Credit Capital, Mr. AamirRs. 60,000
To record the amount invested in the enterprise.
(ii) Debit Bank Rs. 2,000
Credit Cash Rs. 2,000
To record amount deposited into the bank.
(iii). Debit Inventory Rs. 3,000
Credit Cash Rs. 3,000
To record the purchase of goods for cash.
(iv). Debit Building Rs. 5,000
Credit Cash Rs. 5,000
To record the purchase of building from Hamza, assumed to be for cash.
Explanation:
a) Data and Analysis:
(i) Cash Rs. 60,000 Capital, Mr. AamirRs. 60,000
(ii) Bank Rs. 2,000 Cash Rs. 2,000
(iii). Inventory Rs. 3,000 Cash Rs. 3,000
(iv). Building Rs. 5,000 Cash Rs. 5,000
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)
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
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.
What would happen to GDP if the government hired unemployed workers who had been receiving an amount $0.5 TR in unemployment benefits, as government employees and now paid them $1 TR
Answer:
GDP will increase by $1 TR.
Explanation:
If the government is giving an amount to the unemployed worker then it will not account for the GDP because GDP calculation does not account the government transfers. Moreover, when the government hires them and paid them $1 TR. Thus this will consider as salary and salary is included in the GDP. Therefore, GDP will increase by $1TR.
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, _________
A. Mary produces only cakes while Tim produces only pies
B. Mary produces only pies
C. Tim produces both pies and cakes
D. Tim produces only cakes while Mary produces only pies
Answer:
A. Mary produces only cakes while Tim produces only pies
Explanation:
I will start by describing the concept called comparative advantage. Comparative advantage can be described as a businesses ability to produce at a reduced or lower opportunity cost than others. Given this definition, we can see that Mary's opportunity cost of producing cakes is lower than Tims opportunity cost. So Mary has an advantage over Tim in the production of cakes. So the answer to this question is A. Mary should specialize in the making of cakes while Tim should specalize in pie making
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 "
Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade. In one of her classes, Nancy has scores of 30 on her first midterm and 50 on her second midterm. When the first midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indifference curve has a slope of zero at the point (30, 50). Therefore this class could
Answer:
be professor Goodheart's but could not be Professor Stern's.
Explanation:
The indifference curve has a slope zero when marginal rate of substitution is zero. The marginal rate of substitution for Nancy is zero when she scores 30 in her first midterm. She scores 50 in her second midterm. The Professor Goodheart's count best midterm grades so Nancy grades must belong to Professor Goodheart.
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.
Gizmo Inc. purchased a one-year insurance policy on October 1 for $5,280. The adjusting entry on December 31 would be: (If an amount box does not require an entry, leave it blank.)
Answer and Explanation:
The adjusting entry is shown below:
Insurance Expense ($5,280 × 3 months ÷ 12 months) $1,320
To Prepaid Insurance $1,320
(being the insurance expense is recorded)
Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
The net asset value of shares in a closed-end investment company is $36. An investor buys the shares for $34 in the secondary market. The company distributes $1 and after one year, the net asset rises to $42. The investor sells the shares for $43 in the secondary market. What is the percentage return on the investment
Answer:
Closed-End Investment Company
The percentage return on the investment is:
= = 29.41%
Explanation:
a) Data and Calculations:
Net asset value of share = $36
Price paid by an investor = $34
Dividend distributed = $1
Net asset value after one year = $42
Selling price in the secondary market by the investor = $43
Total amount realized by the investor = $44 ($43 + $1)
Cost of investment = $34
Dollar return on the investment = $10 ($44 - $34)
Percentage return on the investment = Return on investment/Cost of investment * 100
= $10/$34 * 100
= 29.41%
Brad and Angie are married and file a joint return. For year 14, they had income from wages in the amount of $100,000 and had the following capital transactions to report on their income tax return: Carryover of capital losses from year 13$200,000 Loss on sale of stock purchased in March year 14, sold on October 10, year 14, and repurchased on November 2, year 1420,000 Gain on the sale of stock purchased 5 years ago and sold on March 14, year 1415,000 Gain on the sale of their personal residence (all qualifications have been met for the maximum allowable gain exclusion)675,000 Loss on the sale of their personal automobile10,000 Gain on the sale of their personal furniture5,000 Loss on the sale of investment property (land only)150,000 What is the amount of capital loss carryover to year 15
Answer:
The amount of capital loss carryover to year 15 is 152,000
Explanation:
The working is attached with the answer please find the attached file.
The following losses cannot be claimed or considered
Loss on sale of stock purchased in March year 14, sold on October 10, year 14, and repurchased on November 2, year 14Loss on the sale of their personal automobileAurillo 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%
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
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%
During a recent fiscal year, Creek Company reported pretax income of $125,000, a contribution margin ratio of 25% and total contribution margin of $400,000. Total variable costs must have been:
Answer:
475,000
Explanation:
Hey there! For this question, we will be using the COGS and SG&A formulas.
Basic Formula: Revenue - COGS - SG&A = Pretax profits
How do you calculate the SG&A?
Well, SG & A = (Contribution - Prextax income)
SG & A = ($400,000 - $125,000)
SG & A= $275,000
What's next?
Now, you must calculate for revenue.
Contribution margin/Revenue = Contribution Margin Ratio
Revenue = Contribution Margin/Contribution Margin Ratio
Revenue = $400,000/.25
Revenue = $1.1m
Now, let's use the COGS formula.
COGS: Starting inventory + purchases - ending inventory = cost of goods sold
Revenue - COGS - SG&A = Pretax profits
1.1m - COGS - 400k = 125k
COGS = $1.1m - $125k - $400k
Final answer: 1.100 Million (1,000,000)
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]
On May 11, 2012, your calendar year firm pays $6,000 for a used computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Section 179 deduction is taken, what is your firm’s maximum 2012 deduction for depreciation?
Answer:
Calendar-Year Firm
The firm’s maximum 2012 deduction for depreciation is:
= $917.
Explanation:
a) Data and Calculations:
Purchase of a used computer server on May 11, 2012 = $6,000
Since the server is a used one, we assume a four-year useful life
Salvage value = $500
Assumed useful life = 4 years
Depreciable amount = $5,500 ($6,000 - $500)
Since the firm does not take the Section 179 Deduction, which would have allowed it to expense the whole depreciable amount this 2012, the depreciation expense for the first year is calculated as follows:
Annual depreciation expense, using the straight-line method = $1,375
For 2012, the firm's maximum deduction for depreciation will be:
= $917 ($1,375 * 8/12) (covering the months from May 11 to December 31)
The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections. Please use the high-low method to calculate the variable cost per inspection.
Answer:
Variable cost per unit= $0.5 per inspection
Explanation:
Giving the following information:
The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections.
To calculate the variable cost under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,400 - 4,200) / (1,400 - 1,000)
Variable cost per unit= $0.5 per inspection
I’ll give 20 points to the best answer !!!
Answer:
The answer is "Slide Master View"
Explanation:
Slide Master Look is indeed the name of this feature. This can help you keep track of all the presentations you've created and change those ones that require work or even more information. The additional feature is the ability to change the presentation's actual picture, as it may be extended to all slides. Slide master view also allows you to change the text format & placeholders.
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.
Suppose that today you buy a bond with an annual coupon rate of 10 percent for $1,120. The bond has 17 years to maturity. What rate of return do you expect to earn on your investment
Answer:
8.63%
Explanation:
The expected rate of return on the bond can be determined using a financial calculator bearing in mind that the calculator would be set to its end date before making the following inputs:
N=17(number of annual coupons in 17 years)
PMT=100(annual coupon=face value*coupon rate=$1000*10%=$100)
PV=-1120(the current price is $1,120)
FV=1000(the face value of the bon is $1000)
CPT
I/Y=8.63%
EXCEL APPROACH:
=rate(nper,pmt,-pv,fv)
nper=N=17
=rate(17,100,-1120,1000)
rate=8.63%
The operating income calculated using variable costing and absorption costing amounts to $9,100 and $11,200. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.
Answer:
$2,100
Explanation:
The difference between variable costing income and absorption costing income arises due to fixed cost deferred in inventory. This is the total fixed manufacturing overhead that will be expensed under absorption costing.
Calculation :
Fixed Cost in Inventory = $11,200 - $9,100
= $2,100
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
Which of the following statements is false? Question 21 options: Not all economists are agreed as to whether government should bail out companies in financial trouble. Not all economists prefer a rule-based monetary policy to discretionary monetary policy. Rule-based monetary policy advocates often assert that discretionary monetary policy can be motivated by politics. The tax multiplier is always larger than the government spending mult
Answer:
The tax multiplier is always larger than the government spending multiplier
Explanation:
As we know that
Tax multiplier = mpc ÷ (1 - mpc)
Here mpc means marginal propensity to consume
And,
Government spending multiplier= 1 ÷ (1 - mpc)
So based on this the government spending multiplier should always be more than the tax multiplier
Therefore the last option should be considered
Acme Air Compressor Company has decided to limit the number of compressors it will supply to some of its distributors that it suspects are selling a line of compressors made by one of its competitors. Acme is using its referent power in its distribution channel.
a. True
b. False
Answer:
b. False
Explanation:
A Referent power in an organization my be defined as the power of a person or a company that is based on high level of identification with that of admiration or inspiration or out of respect.
Thus in the context, the Acme company does not uses its referent power to its distribution channel when the company decides to limit the supply of the its compressors to some of its distributors as the distributors are selling some of the air compressors of the competitor company.
Hence the answer is FALSE.
An individual has $30,000 invested in a stock with a beta of 0.7 and another $70,000 invested in a stock with a beta of 1.2. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
Answer:
1.05
Explanation:
Beta measures systematic risk. Systemic risk are risk that are inherent in the economy. They cannot be diversified away.
The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighted beta of a stock = percentage of the stock in the portfolio x beta of the stock
total value of the portfolio = $30,000 + $70,000 = $100,000
percentage of stock A in the portfolio = $30,000 / $100,000 = 0.30
percentage of stock B in the portfolio = $70,000 / $100,000 = 0.70
weighted beta of stock A = 0.30 x 0.7 = 0.21
weighted beta of stock B = 0.70 x 1.2 = 0.84
Portfolio beta = 0.21 + 0.84 = 1.05
