If, because of an externality, the economically efficient output is Q2 and not the current equilibrium output of Q1, what does D1 represent?

Answer:

70 units

Explanation:

The computation of profit maximizing output level is shown below:-

Monopolist perform Marginal Revenue which equivalent to the Marginal Cost as

MR = Marginal Revenue and MC = Marginal Cost

[tex]MR = \frac{\partial TR}{\partial Q} = \frac{\partial PQ}{\partial Q} = \frac{\partial (320-0.5Q)Q}{\partial Q}[/tex]

[tex]MR = \frac{\partial (320Q -0.5Q^2)}{\partial Q}[/tex]

MR = 320 - Q

Now we will find the MC which is

[tex]MC = \frac{\partial TC}{\partial Q} =\frac{\partial (1.5Q^2 + 40Q)}{\partial Q} = 3Q + 40[/tex]

now we will put the value of which is into MR = MC

320 - Q = 3Q + 40  

280 = 4Q

70 = Q

So, the profit maximizing output level is 70 units.

Answer: a. Increase liabilities and decrease stockholders' equity.

Explanation:

Contingent Liabilities are obligations that the company may owe if a future event happens such as them being ruled against in a case in court.

Contingent Liabilities are to be recorded in the financial statements only when it is probable that it will happen and that the amount to be paid is reasonably estimable.

Company A's management feels like the loss is probable and that they would have to pay the full amount to company B which means that the loss is both likely and estimable.

Company A should therefore increase their liabilities and debit loss which will come from the Equity thereby reducing it.

Answer:

r = 0.099974 or 9.9974% rounded off to 10.00%

Explanation:

Using the constant growth model of DDM we calculate the price of a stock today which is expected to pay a dividend which increases at a constant rate through out. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price under this model is,

P0 = D1 / r - g

Where,

Plugging in the available values in the formula, we calculate r to be,

74.11 = 4.63 / (r - 0.0375)

74.11 * (r - 0.0375) = 4.63

74.11r - 2.779125 = 4.63

74.11r = 4.63 + 2.779125

r = 7.409125 / 74.11

r = 0.099974 or 9.9974% rounded off to 10.00%

Answer:

The answer is C.

Explanation:

The formula for holding period is:

(Future value/present value) - 1

Future value = $42 per share

Present Value = $5 per share

(42/5) - 1

=8.4 - 1

7.4

Expressed as a percentage:

740%

B. Annual return on investment

(1+AHP)^(1/n) - 1

Where AHP is the annual holding period

n is the number of years

[(1+7.4)^(1/8)] - 1

[8.4^ 0.125] - 1

1.3048 - 1

0.3048

Expressed as a percentage

30.48%

Answer:

Ignatius Corporation

Basic and Diluted EPS are:

c. $ 2.85 $ 2.67

Explanation:

Data and Calculations:

Common stock outstanding = 7 million shares

Issued 10,000, $1,000 convertible bonds = $10,000,000

Convertible bonds = 10,000 bonds = 500,000 shares (10,000 x 50)

Interest payment = semiannual at 10% per annum

6%, 100,000 Cumulative preferred stock at $100 par = $10,000,000

Preferred dividend = $600,000

Net Income of $20 million

Basic EPS = $20,000,000/7,000,000 = $2.857 per share

Diluted EPS = $20,000,000/7,500,000 = $2.67 per share

To obtain the diluted EPS, the outstanding common stock is increased by the number of potential convertible bonds.

Answer:

Misrepresentation.

Explanation:

In this scenario, on its advertisement, a company claims that it has funds in its possession that are in fact not available for payment of losses or claims. The company is guilty of misrepresentation.

Misrepresentation can be defined as an untrue or misleading statement of fact made by a party to an individual or group of people to deceitfully lure or induce them to go into a contract. A company stating in its advert that it has funds in its possession but in the true sense or actual fact do not have the funds for payment of losses or claims; such a company is engaging in a fraudulent act and is liable to prosecution in any court of competent jurisdiction.

Answer:

Characterize a project based on the above narration and distinguish the project manager from an operations manager?

Explanation:

Answer:

d. A company with assets totaling $50 billion.

Explanation:

In order to calculate the material impact of the lawsuit on each company, we must divide the settlement by total assets. In this case, we do not need to do the math, we simply have to select which company has the most assets. The more assets a company has, the lesser the material impact of any unfavorable settlement.

Answer:

$1.43

Explanation:

A lot of information is missing, but i found a similar question. Hope it can help.

Labor    Q     Fixed          Variable   Total      Marginal       Average  

                     costs          costs         cost       cost              total cost

0            0       50              0               50           0                     0

1            10       50             30              80           8                     8

2           24      50             60              110          2.5                 4.58

3           49      50             90              140         1.20                2.86

4           70      50            120              170         1.43                2.43

5           82      50            150             200        2.50               2.44

marginal cost is calculated by dividing the incremental cost ($30) by the incremental output (21) = $30 / 21 = $1.4286 ≈ $1.43

Answer:

C. $25,000

Explanation:

The interest charges on the account(margin) are based on the debit balance in the account. Also, credits that came as a result of short sales are usually not matched off against debits in the account, hence interest charges is based on the $25,000 debit balance.

Answer:

0.4820

Explanation:

The computation of the weight of debt is shown below:

= Debt value ÷ Total capital structure

where,

Debt value is

= 630 bonds × $1,000 × 0.93

= $585,900

And, the total capital structure is

= Debt value + common stock + preferred stock

= $585,900 + 5,800 shares × $81 + 4,700 shares × $34

= $1,215,500

So, the weight of debt is

= $585,900 ÷ $1,215,500

= 0.4820

Answer:

1. $18620

2. $35709

Explanation:

1.we are required to find incremental loss.

= Defect(market price - price per unit - correction per unit)

Defect product = 900

Market price = 20.8

Price for each defect unit = 4.9

Price for defect correction = 6.1

1900(20.8-4.9-6.1)

= $18600

2. Present value of cash flow =

40500*0.9091 = 36818.55

40500*0.8264 = 33469.2

35500*0.7513 = 26671.15

35500*0.683 = 24246.5

Total = 121209

We subtract cost of new equipment from this value

121209-85500

= $35709

Answer:

$672,000

Explanation:

The computation of the account receivable balance at the end of July month is shown below:

Particular          June              July          August            September

Unit sales         8,500           16,000      18,000             19,000

Unit selling

price                 $70               $70           $70                 $70

Sales               $595,000     $1,120,000 $1,260,000  $1,330,000

Credit sales collection

40% in this

month sale      $238,000      $448,000  $504,000    $532,000

60% in the

following month                     $357,000   $672,000   $756,000

Total collection  $238,000    $805,000  $1,176,000   $1,288,000

For the account receivable at the end of July we considered the 60% oustanding amount i.e $672,000

Answer:

her long-run average cost of selling each Italian ice decreases.

Explanation:

Economies of scale is when a firm produces more units of goods or services on a much larger scale, with very little input cost(average cost). Invariably, this implies that the production units of a firm increases as it grows while having a decreased input costs.

A firm will experience economies of scale in the long run if it's average total costs(cost per unit required for production which remains the same irrespective of output) decreases as it increases its scale of production.

Answer: Selecting an appropriate negotiation team

Explanation:

The first step toward initiating efficient and effective international business negotiations is selecting an appropriate negotiation team.

When an appropriate negotiation team has been selected to negotiate on behalf of a particular company, negotiation becomes easier and are more feasible and both parties can agree on a particular stance.

Answer:

$92,200

Explanation:

Calculation for Hopson's projected benefit obligation at December 31, 2015

Using this formula

Projected benefit obligation=Actuarial estimate of projected benefit obligation + Service costs +(Actuarial estimate of projected benefit obligation × Discount rate)- Pension benefit

Let plug in the formula

Projected benefit obligation= $72,000 + $28,000 + ($72,000 × .10) -$15,000

Projected benefit obligation=$72,000 + $28,000 + $7,200-$15,000

Projected benefit obligation= $107,200-$15,000

Projected benefit obligation=$92,200

Therefore Hopson's projected benefit obligation at December 31, 2015 will be $92,200

Explanation:

Yes, as purchasing behavior and purchasing criteria tend to vary according to the reason for the purchase.

The consumer purchase decision process begins by identifying a need, searching for available information about the purchase need found, evaluating the options available for purchase and finally buying decision. And this process varies according to the type of purchase, if it is for yourself, you can consider different benefits and options, when a purchase is made to be a gift, you can have different criteria in relation to the price you want to pay, the preferences and needs of the person who will receive the gift, etc.

Which means that sellers must create different strategies for each purchase situation, in order to positively influence the purchase process for a gift, if that is the case.

Answer:

False.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

A person who enters into a contract when he or she is intoxicated cannot void the contract even if the terms are obviously favorable to the other party.

By law, an individual can void a contract entered into while under the influence of alcohol or intoxicated, only if he or she doesn't understand or comprehend the legal consequences binding on the parties involved in the contract.

Hence, a contract is legally binding and enforceable even if one of the parties was intoxicated at the time of its formation.

Answer: Exhibitive Media

Explanation:

This type of media aims to strike a bond between the potential buyer and the product by engaging them eyeball-to-eyeball, often at the point of sale or close to it. The purpose of Exhibitive media is therefore to showcase the product to the prospective buyer.

Examples include;

Answer is given below

Explanation:

Answer:

1. A manufacturing company's costs can be classified broadly as direct materials, direct labor, and factory overhead cost.

2. The costs to manufacture a product are classified as Period cost, Administrative Expense, and Selling expenses.

Explanation:

A manufacturing company encounters so many costs in the cause of the manufacturing of the products which they are into. Some of these cost are periodic in nature (one off payment or interval cost ) while others are directly related to the product being manufactured.

Following are the calculation to the given question:

[tex]\to TC = 4,000 + 5Q + 10 \ Q2\\\\\to MC = 5 + 20\ Q\\\\[/tex]

For point A)

[tex](a)\ TFC = 4,000\\\\(b)\ AFC = \frac{TFC}{ Q} = \frac{4,000}{ Q}\\\\(c)\ TVC = 5Q + 10\ Q2\\\\(d)\ AVC = \frac{TVC }{Q} = 50 + 10\ Q\\\\(e)\ ATC = \frac{TC }{ Q} = (\frac{4,000}{ Q}) + 50 + 10Q \ \text{Also, ATC = AVC + AFC}\\\\[/tex]

For point B)

TFC remains unchanged at 4,000, regardless of the price of Q.

i)

[tex]\to Q = 0[/tex]

AFC, AVC, and ATC cannot be calculated (division by zero is not possible).

ii)

[tex]Q = 1\\\\AFC =\frac{4,000}{ 1} = 4,000\\\\TVC = (5 \times 1) + (10 \times 1) =5 + 10 = 15\\\\AVC = \frac{TVC}{ Q} = \frac{15}{1} = 15\\\\ATC = 4,000 + 15 = 4,015\\\\MC = 5 + (20 \times 10 = 5 + 20 = 25[/tex]

iii)

[tex]Q = 2\\\\AFC = \frac{4,000}{ 2} = 2,000\\\\TVC = (5 \times 2) + (10 \times 2 \times 2) = 10 + 40 = 50\\\\AVC = \frac{50}{2} = 25\\\\ATC = 2,000 + 25 = 2,025\\\\MC = 5 + (20 \times 2) = 5 + 40 = 45\\\\[/tex]

iv)

[tex]Q = 3\\\\AFC = \frac{4,000}{ 3} = 1,333.33\\\\TVC = (5 \times 3) + (10 \times 3 \times 3) = 15 + 90 = 105\\\\AVC = \frac{105}{3} = 35\\\\ATC = 1,333.33 + 35 = 1,368.33\\\\MC = 5 + (20 \times 3) = 5 + 60 = 65\\\\[/tex]

For point C)

i)

[tex]ATC[/tex] is minimized when [tex]\frac{dATC}{dQ} = 0[/tex]

[tex](- \frac{4,000}{Q2} ) + 10 = 0\\\\\frac{4,000}{Q2} = 10\\\\Q2 = 400\\\\Q = 20\\[/tex]

ii)

Part (B) shows that as MC increases from Q = 0 to Q = 3, ATC decreases, validating the link.

Learn more:

brainly.com/question/15002834

Answer:

A. True

Explanation:

Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance. Also, a negative direct labor efficiency variance is considered favorable one. And for a direct labor, if the efficiency and rate variances are both negative, then the flexible budget variance will be unfavorable. Therefore, the statement of the question is true.

Answer:

Warranty repair Expense (Dr.) $200

Warranty Payable (Dr.) $200

Explanation:

The warranty expense is the estimate of probable expense that will incur due to fault in the product. The estimated repair is the 4% of skates sold. If 500 pairs of skates are sold then out of them 4% will require repair. The repair for the faulty skates will cost $10. The total cost will be $200,

500 pairs of skates * 4% * $10

Answer:

The expected return on stock is 30%

Explanation:

Growth rate = Return on Equity * Retention ratio

Growth rate = Return on Equity * (1- Payout ratio)

Growth rate = 25% * (1 - 0.40)

Growth rate = 0.25 * 0.60

Growth rate =  0.15

Growth rate =  15%

Hence, Expected return = Dividend return + Growth rate

Expected return = 15% + 15%

Expected return = 30%

Therefore, the expected return on stock is 30%

Answer:

Results are below.

Explanation:

Giving the following information:

Radison Enterprises sells a product for $102 per unit.

The variable cost is $58 per unit, while fixed costs are $758,912.

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= 758,912 / (102 - 58)

Break-even point in units= 17,248 units

Now, the selling price is $107:

Break-even point in units= 758,912 / (107 - 58)

Break-even point in units= 15,488 units

Answer:

Norwood Company

Norwood Company signs a​ $11,000, 8.5%,​ six-month note dated November​ 1, 2018. The interest expense recorded for this note in 2018 will be​ ___$156_____. (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

Explanation:

a) Data and Calculations:

Note Payable = $11,000

Interest rate = 8.5%

Interest expense for a year = 8.5% of $11,000 = $935

Interest expense for 2 months (from November to December) = $935/12 * 2 = $156

b) Interest expense represents the annual expense that must be incurred for the use of resources which the Norwood, Inc. obtained through the signing of the six month note.  Interest on notes are computed based on an annual basis unless otherwise stated.  The 8.5% is per annum.  So, when the interest and principal are being repaid in six month's time, Norwood, Inc. should have accrued interest for six months, which will amount to $467.

Answer:

a. True.

Explanation:

In determining whether a company's financial condition is improving or deteriorating over time, horizontal analysis of financial statement data would be more useful than vertical analysis.

In Financial accounting, Horizontal analysis can be defined as an analysis and evaluation of a financial statement which illustrates or gives information about changes in the amount of corresponding financial statement items, benchmarks or financial ratio over a specific period of time. It is one of the most important technique that is used to measure how a business is doing financially. Hence, it is also referred to as the trend analysis.

Under the horizontal analysis of financial statement, we use the financial statements of two or more periods; earliest and latter periods.

Generally, the earliest is chosen as the base period while all other items on the statement for a latter period will be compared with the items on the statement of the base period.

Answer:

Correct answer:

d. No

Explanation:

This is because, from the random sample that was done, it shows that the average money held by customers falls within $3550 - $5950 which averages $4750 (Factoring in the standard deviation of $1200). Therefore, it is not considered unusual if an individual had $4000 since it falls within the range of amount held by most depositors and customers of the said bank.

Answer:

a) $0

Generally, partners recognize gain on property contributed to a partnership only when the cash they are deemed to receive from debt relief exceeds their basis in the partnership prior to the deemed distribution. Harry did not have any debt relief.

b) $0.

Partners may never recognize loss when property is contributed to a partnership even when they are relieved of debt.

c) Sally should consider selling the property to the partnership rather than contributing it. By selling the property, she could recognize the $50,000 built-in loss on the equipment.