Identify which of the factors below are better short-range predictors and which are better long-range predictors of movements in foreign exchange rates.a. Relative monetary growthb. Relative inflation ratesc. Nominal interest rate differentialsd. Psychological effectse. Investor expectationsf. Bandwagon effects

Answers

Answer 1

Answer:

Short range predictors:

c. Nominal interest rate differential

d. Psychological effects

e. Investor expectations

f. Bandwagon effect

Long range predictors:

a. Relative monetary growth

b. Relative inflation rates

Explanation:

Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.

Bandwagon effect is a short range predictor because it is effect of uptake when people follow others. They take decisions what other do and its their belief that other people have taken the right decision so we too. This is just a short term hop based on beliefs regardless of any underlying evidence.


Related Questions

Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,700 in quarter 2, 14,800 in quarter 3, and 18,500 in quarter 4. Using a sales price of $85 per unit. Prepare the sales budget by quarters for the year ending December 31, 2017.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,700 in quarter 2, 14,800 in quarter 3, and 18,500 in quarter 4. Using a sales price of $85 per unit.

Sales Budget:

Q1:

Sales= 10,800*85= $918,000

Q2:

Sales= 12,700*85= $1,079,500

Q3:

Sales= 14,800*85= $1,258,000

Q4:

Sales= 18,500*85= $1,572,500

Bramble Corp. recorded operating data for its shoe division for the year. Sales$1300000 Contribution margin360000 Controllable fixed costs180000 Average total operating assets720000 How much is controllable margin for the year

Answers

Answer:

controllable margin for the year is $180,000.

Explanation:

The Controllable Margin is the Profit that is controllable by the divisional manager.

Calculation of Controllable Margin :

Contribution Margin                 $360,000

Less Controllable fixed costs ($180,000)

Division Controllable Margin    $180,000

When estimating the incremental after-tax free cash flows for a project, we include which one of the following costs?A. Investment costsB. Opportunity costsC. Sunk costsD. Costs that impact another product that the firm does not produce.

Answers

Answer: Opportunity cost

Explanation:

Opportunity cost is the cost of what one forgoes when one makes another decision or another choice. When estimating the incremental after-tax free cash flows for a project, the opportunity cost is included.

A sunk cost is a type of cost that an economic agent such as the individual, the firm or the government has already spent and therefore cannot be recovered again. This isn't included.

Sunny Day Manufacturing Company is considering investing in a one-year project that requires an initial investment of $450,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $550,000. The rate of return that Sunny Day expects to earn on its project (net of its flotation costs) is:____________

White Lion Homebuilders has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2.03 at the end of next year. The company's earnings' and dividends' growth rate are expected to grow at the
constant rate of 8.70% into the foreseeable future. If White Lion expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be:_________

Sunny Day Manufacturing Company Co.'s addition to earnings for this year is expected to be $420,000. Its target capital structure consists of 50% debt, 5% preferred, and 45% equity. Determine Sunny Day Manufacturing Company's retained earnings breakpoint: ___________

a. $840,000
b. $980,000
c. $933,333
d. $886,666

Answers

Answer:

A lot to read and check but I will get back to you soon

Do you believe the cash flows from investing activities should include not only the return of investment, but also the return on investment, that is the interest and dividend revenue?

Answers

Answer:

Yes. Cash flows from investing activities should also include return on investment.

Explanation:

Dividend and Interest revenue arise as a result of the Investments that were made by the company and as such constitutes cash flow from investing activities of a Company.

Suppose that Dunkin Donuts reduces the price of its regular coffee from $2 to $1 per cup, and as a result, the quantity sold per day increased from 10 to 40. Over this price range, the price elasticity of demand for Dunkin Donuts’ regular coffee is:

Answers

Answer:

PED = -6

Explanation:

The PED or price elasticity of demand for a product measures the responsiveness of a product's demand to the changes in the price of the product. The PED is calculated as follows,

PED = % change in Quantity demanded / % change in price

PED = [(40 - 10) / 10]  /  [(1 - 2) / 2]

PED = -6

A PED of -6 represents that quantity demanded is highly price elastic and a negative sign means that it is a normal good.

he carrying value of Blossom’s net identifiable assets, including the goodwill, at year-end is $855,000. Prepare Cullumber’s journal entry, if necessary, to record impairment of goodwill.

Answers

Answer:

Goodwill Impairment (Debit)

           Goodwill (Credit)

Explanation:

In case goodwill is impaired, then the entry to record this impairment will be Goodwill Impairment Debit and Goodwill Credit.

By crediting the Goodwill, the account will be reduced. This shows that the business is currently worth less than is accounted for. The Goodwill account is reduced to identify this difference.

The Impairment loss is an expense and must be reflected in the income statement. Therefore, while we reduce Goodwill amount from balance sheet. We record the expense on the income statement, which would mean that the current year profit amount will be reduced.

A one-month summary of manufacturing costs for Rapid Routers Company follows.

Direct materials $40,000
Direct labour 20,000
Material handling costs 1,500
Product inspection and rework 2,000
Materials purchasing and inspection 500
Routine maintenance and equipment servicing 1,200
Repair of equipment 300

Required:
Classify each cost as value-added or non-value-added

Answers

Answer:

        Cost                                                                 Classification

Direct materials                                                       Value added

Direct labor                                                              Value added

Material handling costs                                           Non-value added

Product inspection and rework                              Non-value added

Materials purchasing and inspection                     Value added

Routine maintenance and equipment                    Non-value added

servicing

Repair of equipment                                                Non-value added

ZZZ-Best, Inc. recently issued $65 par value preferred stock that pays an annual dividend of $17. If the stock is currently selling for $76, what is the expected return of this preferred stock?

Answers

Answer:

r = 0.22368 or 22.368% rounded off to 22.37%

Explanation:

The expected or required rate of return on a preferred stock is the return provided by the stock in terms of dividend as a proportion of the current market price. The expected return on a preferred stock can be calculated as follows,

r = Dividend / current market price

r = 17 / 76

r = 0.22368 or 22.368% rounded off to 22.37%

Bing engaged Dill to perform personal services for $2,200 a month for a period of four months. The contract was entered into orally on July 1, 1984, and performance was to commence on September 1, 1984. On August 10, Dill anticipatorily repudiated the contract. As a result, Bing:

Answers

Answer:

Bing can immediately sue for breach of contract

Explanation:

Based on the scenario that is being described, Bing can immediately sue for breach of contract. Breaching a contract is when one party in a binding agreement fails to deliver according to the terms of the agreement. When Dill made an anticipatory repudiation, he basically stated that he does not intend to live up to the obligations of the contract that he had agreed to, therefore breaching the contract and becoming liable.

Data pertaining to a company's joint production for the current period follows
L M
Quantities produced 310 lbs 260 lbs
Market value at split-off point . $10.2Mb $20.4/lb
Compute the cost to be allocated to Product L for this period's $792 of joint costs if the value basis is used. (Do not round intermediate calculations.)
a. $295.81.
b. $49619.
c. $39600.
d. $2,926.00.
e. $962.19.

Answers

Answer:

a. $295.81

Explanation:

Total market value = (310 * 10.2) + (260 * 20.4)

Total market value = 3,162 + 5,304

Total market value = 8466

Joint cost allocated to L on basis of value

= [ (310 * 10.2) / 8,466] * 792

= (3,162 / 8,466) * 792

= $295.81

Bronco Corporation discovered these errors in August of Year 3:

Year Depreciation Overstated Prepaid Expense Omitted
1 $2500 $3000
2 4000 2000

Assume all current items are two months in duration. Net Income for Year 2 was $18,000. Assume all errors are discovered in August of Year #3. The Year #2 books are closed. The net effect on Year #3 Beginning Retained Earnings caused by the August Year #3 correcting journal entries was:

a. $5,500
b. $6,500
c. $6,000
d. $8,500
e. $4,500

Answers

Answer:

e. $4,500

Explanation:

Year            Depreciation overstated         Prepaid expense omitted

1                              $2,500                                $3,000

2                             $4,000                                $2,000

Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $3,000 - $2,000 = $23,000

This means that year 2's net income was understated by $5,000.

But year 1's net income was overstated by = $2,500 - $3,000 = -$500.

The adjustment on the retained earnings account should be $5,000 - $500 = $4,500

Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $450,000 is estimated to result in $184,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $74,000. The press also requires an initial investment in spare parts inventory of $33,000, along with an additional $3,750 in inventory for each succeeding year of the project. The shop’s tax rate is 23 percent and its discount rate is 10 percent. (MACRS schedule)

Required:
Calculate the NPV of this project.

Answers

Answer:

Masters Machine Shop

PV of Salvage value = $74,000 x 0.683 =               $50,542

Present value of total savings                                $449,126

less Present value of investments                          494,888

Net Present Value                                                      $4,780

Explanation:

a) Data                      Amount              Present Value

Cash Outflow         $450,000             $450,000

Initial spare parts        33,000                  33,000

Annual Inventory          3,750                    11,888

PV of investments                               $494,888

     

Project lifespan = 4 years

Discount rate = 10%

Annual pretax cost savings = $184,000

Tax rate                 23%              42,320

After Tax savings                    $141,680

PV of Annuity of Tax savings = $141,680 x 3.170 = $449,126

Salvage value = $74,000        

PV of Salvage value = $74,000 x 0.683 =               $50,542

Present value of total savings                                $449,126

less Present value of investments                          494,888

Net Present Value                                                      $4,780

b) Master Machine Shop's Net Present Value (NPV) is the difference between the cash inflows (savings) and the cash outflows (investments) for this four-year project

If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity in order to minimize the total annual inventory cost?
A. 707
B. 909
C. 634
D. 500
E. 141

Answers

Answer:

22

3 25

6 15

a. Determine which variable is the dependent variable.

b. Compute the least squares estimated line.

c. Compute the coefficient of determination. How would you interpret this value22

3 25

6 15

a. Determine which variable is the dependent variable.

b. Compute the least squares estimated line.

c. Compute the coefficient of determination. How would you interpret this value

A preferred share of Coquihalla Corporation will pay a dividend of $8 in the upcoming year and every year thereafter; that is, dividends are not expected to grow. You require a return of 7% on this stock. Using the constant-growth DDM to calculate the value of Coquihalla Corporation is worth _________. A. $13.50 B. $45.50 C. $91 D. $114.29

Answers

Answer:

$114.29

Explanation:

A preferred share of Coquihalla corporation will pay a dividend of $8

The return on the stock is 7%

= 7/100

= 0.07

Therefore, by using the constant growth DMM the worth of the corporation can be calculated as follows

Vo= 8/0.07

= $114.29

Hence the value of Coquihalla corporation is worth $114.29

An investment offers a total return of 12.0 percent over the coming year. Janice Yellen thinks the total real return on this investment will be only 6.0 percent. What does Janice believe the inflation rate will be over the next year?

Answers

Answer:

inflation rate= 0.06= 6%

Explanation:

Giving the following information:

Interest rate= 12%

Real rate of return= 6%

The inflation rate is counterproductive to the interest rate. The inflation rate reduces the purchasing price, therefore it decreases the interest rate effect on nominal money.

Real interest rate= interest rate - inflation rate

0.06 = 0.12 - inflation rate

inflation rate= 0.12 - 0.06

inflation rate= 0.06= 6%

GoSnow sells snowboards. Each snowboard requires direct materials of $128, direct labor of $53, and variable overhead of $63. The company expects fixed overhead costs of $844,976 and fixed selling and administrative costs of $391,000 for the next year. The company has a target profit of $290,000. It expects to produce and sell 11,800 snowboards in the next year. The company has a target profit of $189,800. It expects to produce and sell 11,800 snowboards in the next year. Required:Compute the selling price using the variable cost method.

Answers

Answer:

$364.83

Explanation:

The computation of selling price using the variable cost method is shown below:-

Sales units for target profit = (Total fixed costs + Target profit) ÷ (Selling price per unit - Total Variable cost per unit)

11,800 = ($1,235,976 + $189,800) ÷ (Selling price per unit - $244)

11,800 = ($1,425,776) ÷ (Selling price per unit - $244)

(Selling price per unit - $244) = $1,425,776 ÷ 11,800

(Selling price per unit - $244) = 120.83

Selling price per unit = $120.83 + 244

= $364.83

Working note

Total fixed cost = Fixed overhead costs + Fixed selling and administrative costs

= $844,976 + $391,000

= $1,235,976

Total variable cost = Direct materials + Direct labor + and variable overhead

= $128 + $53 + $63

= $244

What is another name for progress monitoring? a. Curriculum-based measurement c. Curriculum-based learning b. Assessment d. None of these

Answers

Answer:

Curriculum based measurement

Answer:

a.  Curriculum-based measurement

It's correct

g An increase in taxes when the economy is above full employment ​ ______ aggregate demand and real​ GDP, and the price level​ ______.

Answers

Answer:

C.  ​decreases; falls

Explanation:

As we know that

The rise in taxes results in low disposable income for individuals that lowered the spending of the consumer also the consumer spending is an element of the aggregate demand so ultimately it declines that result the curve to shift leftward or downward

Due to this, the real GDP also falls, and the price level too

Hence, the correct option is c.

The Baldwin Company currently has the following balances on their balance sheet: Total Assets $260,881 Total Liabilities $150,673 Retained Earnings $52,700 Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year

Answers

Answer:

common stock = $80,308

Explanation:

assets = liabilities + equity

current balance:

$260,881 = $150,673 + $110,208

$110,208 = common stock + retained earnings = $57,508 + $52,700

next year:

net income = $44,200

dividends = $12,000

assets = $260,881 + $55,000 = $315,881

liabilities = $150,673

equity = $315,881 - $150,673 = $165,208

retained earnings = $52,700 + $44,200 - $12,000 = $84,900

common stock = $165,208 - $84,900 = $80,308

The beta of company Myers’s stock is 2. The annual risk-free rate is 2% and the annual market premium is 8%. What is the expected return for Myers’ stock? A. 14% B. 25% C. 20% D. 18

Answers

Answer:

18%

Explanation:

Myers's stock has a beta of 2

The annual risk free rate is 2%

The annual market premium is 8%

Therefore, the expected return for Myers's stock can be calculated as follows

= 2% + (2×8%)

= 2% + 16%

= 18%

Hence the expected return for Myers's stock is 18%

On July 1, Shady Creek Resort borrowed $320,000 cash by signing a 10-year, 11.5% installment note requiring equal payments each June 30 of $55,480. What amount of interest expense will be included in the first annual payment

Answers

Answer:

$36,800

Explanation:

The total amount of interest expense included in the first annual principal

= Principal's balance × yearly interest rate

= $320,000 × 11.5%

= $36,800

The principal's balance after the first payment is

= $320,000 - $36,800

= $283,200

The interest expense included in the second payment is

$283,200 × 11.5%

= $32,568

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

a. True
b. False

Answers

Answer:

True

Explanation:

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

Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.
End of Year Beginning of Year
Cash and cash equivalents $1,424 $140
Accounts receivable (net) 4,000 3,800
Inventory 1,800 1,800
Other current assets 636 591
Total current assets $7,860 $6,331
Total current liabilities $3,930 $3,122
For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.
Instructions:
Compute the current ratio, current cash debt coverage, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year.

Answers

Answer and Explanation:

The computation is shown below:-

1. Current ratio is

= Current Assets ÷ Current Liabilities

= $7,860 ÷ $3,930

= 2

2. Current cash debt coverage is

= Net Cash Provided by Operating Activities ÷ Average Current Liabilities

Average Current Liabilities = ($3,930 + $3,122) ÷ 2

= $3,526

Current Cash Debt Coverage Ratio = $1,251 ÷ $3,526

= 25.48%

3. Accounts receivable turnover is

= Net Credit Sales ÷ Average Accounts Receivables

= $8,258 ÷ (($4,000 + $3,800) ÷ 2)

= $8,258 ÷ $3,900

= 2.12 times

4. Average collection period is

= 365 ÷ Account Receivable Turnover

= 365 ÷ 2.12

= 172.17

5. Inventory Turnover is

= Cost of Goods Sold ÷ Average Inventory

= $5,328 ÷ ((1,800 + 1,800) ÷ 2

= $5,328 ÷ 1,800

= 2.96

6. Days in Inventory is

= 365 ÷ Inventory Turnover Ratio

= 365 ÷ 2.96

= 123.31 days

Lance contributed investment property worth $507,500, purchased Five years ago for $312,500 cash, to Cloud Peak LLC in exchange for an 70 percent profits and capital interest in the LLC. Cloud Peak owes $380,000 to its suppliers but has no other debts.

Required information

A. What is Lance’s tax basis in his LLC interest?

B. What is Lance’s holding period in his interest?

C. What is Cloud Peak’s basis in the contributed property?

D. What is Cloud Peak’s holding period in the contributed property?

Answers

Answer:

a. Lance's Tax basis in his LLC interest

= Basis of investment property + Shares in LLC debt

= $312,500 + ($380,000 * 70%)

= $312,500 + $266,000

= $578,500

Therefore, LLC common debt obligation treated as non-recourse debt, lance income allocation ratio is used to allocate a share of LLC debt to him

b. Lance holding period in his interest is 5 years. The holding period of the contributed assets "tacks onto" his partnership interest because Lance contributed a capital asset

c. Cloud Peak's basis in the contributed property is $312,500. Also, the carryover basis would be taken by the LLC in the contributed property

d. Cloud's Peak holding period in the contributed property is 3 years

A stock currently sells for $34 a share but is expected to increase in value over the next six months to at least $36 a share. Assume there are 6-month options available on this stock with an exercise price of $35. Which of these options should have the most value today?a. American and European calls equallyb. European callc. European putd. American pute. American call

Answers

Answer:  American call

Explanation:

The price of the underlying stock is going to increase to at least $36 which is more than the exercise price on the option of $35. The option that would have more value therefore is a Call option because call options make profit when the exercise price is less than the market price.

The more valuable call option between the European and American call options is the American call option. This is because with an American call option, the holder is free to call in the option at any point in time up to the exercise date while a European option has to wait till the exercise date.

The American Call option is therefore the option with the most value today.  

Macklin Company forecasts that total overhead for the current year will be $13,500,000 with 500,000 total machine hours. Year to date, the actual overhead is $14,000,000 and the actual machine hours are 530,000 hours. If Macklin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Macklin Company forecasts that total overhead for the current year will be $13,500,000 with 500,000 total machine hours.

Year to date, the actual overhead is $14,000,000 and the actual machine hours are 530,000 hours.

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 13,500,000/500,000

Predetermined manufacturing overhead rate= $27 per machine-hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 27*530,000= 14,310,000

Finally, the under/over allocated overhead:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 14,000,000 - 14,310,000

Under/over applied overhead= 310,000 overallocated

If a firm is producing so that the point chosen along the production possibility frontier is socially preferred, then that firm is said to have reached its:________

a. allocative efficiency
b. productive efficiency
c. utility-maximizing efficiency
d. minimum price efficiency


Answers

Answer:

b

Explanation:

Productive efficiency means that production is been carried out with no waste.  

Production possibility frontier is a curve that shows the various combinations of goods that can be produced in an economy when all resources are fully utilised.

On the ppf, all resources are fully utilised, so there is productive efficiency.

wHAT is the largest private operator of health care facilities in the world with hundred of facilities in over 20 states. In 2006, private equity buyers took the company private in a $31.6 billion acquisition. In broad terms how costly do you think financial distress would be to HCA if it began to appear the company might be having difficulty servicing its debt

Answers

Answer:

Hey There!! The answer to this is HCA: Because HCA Is The Largest Private Operator Of Health Care Facilities In The World With Hundrd Of Facilities In Over 20 States. In 2006, Private Equity Buyers Took The Company Private In A $31.6 Billion Acquisition.

Hope It Helped!~ ♡

ItsNobody~ ☆

In which of the following organization forms is the owners' legal responsibility for the debt of the business limited to the amount they invested in the business?
a. Cooperative
b. Sole proprietorship
c. Partnership
d. Corporation

Answers

Answer:

d. Corporation

Explanation:

The Corporation is the business form of an organization in which it has the separate legal entity from its owners. Also, there is a limited liability towards any debt that invested in the business and whenever the person think for an organization so he thinks for the long term

Here in the given situation, the corporation is the best choice as it it has the limited liability of the amount invested

Hence, the correct answer is d.

Other Questions
Which is an example of a time-bound goal?Complete something in 90 days.Do something at noon every day.Take only five minutes to complete a goal.Give yourself more than enough time to complete a goal. In recent years, the United States has Group of answer choices had a large goods trade surplus with the rest of the world. exported more services abroad than it has imported. maintained an overall trade surplus (goods and services combined) with the rest of the world. had a small goods trade surplus with Japan A number is more than half of another number by 4. The difference of these two numbers is 2. Find these numbers. If United Airlines acted as a "price leader" and all other airlines simply charged the same prices that United Airlines charged, then could this action be illegal because it is a form of "silent collusion?" A. There is no such term in microeconomics known as "tacit" or "silent collusion." B. Matching the prices of the price leader firm is a good example of a competitive market. C. The U.S. Anti-Trust Department has always considered this business behavior as suspicious and it does consider this pricing strategy to be illegal. D. The famous 1982 anti-monopoly IBM court case said that this pricing strategy within an industry is legal as long as the firms fill out quarterly reports to keep the U.S. Anti-Trust Roselyn is driving to visit her family, which live 150 150150 kilometers away. Her average speed is 60 6060 kilometers per hour. The car's tank has 20 2020 liters of fuel at the beginning of the drive, and its fuel efficiency is 6 66 kilometers per liter. Fuel costs 0.60 0.600, point, 60 dollars per liter. How long can Roselyn drive before she runs out of fuel? A population has a standard deviation of 16. If a sample of size 64 is selected from this population, what is the probability that the sample mean will be within 2 of the population mean? a. Since the mean is not given, there is no answer to this question. b. -0.6826 c. 0.3413 d. 0.6826 e. -0.3413 what is the present difficulty of speaker? compare and explain how the parent child relationship become significant in poem parrot in cage For some postive value of Z, the probability that a standardized normal variable is between 0 and Z is 0.3770. The value of Z is A shipping company borrows $70 million at 5% p.a. compound interest to build a new cruise ship. If it repays the debt after 3 years, how much interest will the company pay? photo of freedom fighter quotes on white sheet.pls send me fast which phrase describes how metamorphic rocks form Members of the board of directors of have received the following operating income data for the year ended: May 31, 2018:Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by and decrease fixed selling and administrative expenses by $10,000.Requirements:1. Prepare a differential analysis to show whether Safety Point Safety Point should drop the industrial systems product line.2. Prepare contribution margin income statements to show Safety Point's Safety Point's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1.3. What have you learned from the comparison in Requirement 2?Product LineIndustrial HouseholdSystems TotalNet Sales Revenue $340,000 $370,000 $710,000Cost of Goods Sold: Variable 36,000 46,000 82,000Fixed 250,000 69,000 319,000Total Cost of Goods Sold 286,000 115,000 401,000Gross Profit 54,000 255,000 309,000Selling and Administrative Expenses:Variable 65,000 72,000 137,000Fixed 45,000 22,000 67,000Total Selling and Administrative Expenses 110,000 94,000 204,000Operating Income (Loss) ($56,000) $161,000 $105,000 In the poem "Love Songs," the speaker uses the phrases "black silence" and "shower of sunlight" in the first stanza and "the dark" and "clean swift brightness" in the second stanza. These contrasting phrases are most likely used to _____ .a. share how day and night keep nature in balanceb. illustrate the clarity of life when time is taken to reflectc. explain the conditions of human life as darkness and lightd. describe how pleasant memories have brightened life The lack of which of the following represents scarcity? orange juice because the trucks carrying it are on strike enough workers to finish two jobs because theres a limited supply of workers enough workers to work at night because the pay is too low grapefruit juice because very few people want to buy it How is heat transferred through convection?A. Heat is transferred by energy waves moving through space.B. Heat is transferred through contact between moleculesC. Heat is transferred by light being changed into kinetic energy.D. Heat is transferred by the movement of a liquid or gas. What are the characteristics of argumentative writing? Explain the characteristics of an effective claim. Explain the features of a valid counterclaim and an effective rebuttal? The graph shows the wolf population inYellowstone National Park aince 2000 Astudent drew a line of beat fit to model theWolf Population180160150Number of Wolves5 130120110100.02 4 6 8 10 12 14Years Since 2000Which statement best describes the line ofbest fit that the student drew?A. The line of best fit is not a strong modelfor the data, because the points are notclose to the line.B. The line of best fit is not a strong modelfor the data, because it does not passthrough any of the data points.C. The line of best fit is a strong model forthe data, because both the line and thedata show a negative trend.D. The line of best fit is a strong model forthe data, because about half the datapoints are on each side of the line. Household members tend to have different preferences, but empirical evidence shows that overall, most households are Pareto efficient.a. Trueb. False During a titration, a known concentration of _____ is added to a _____ of an unknown concentration g What is the meaning of Delegation? a) Assigning the responsibility of completing a task to another. b) Being active. c) Being sincere. d) Being innovative.