The percent change in nominal gross domestic product (GDP) minus the percent change in price level equals

Answers

Answer 1

Answer:

Real GDP

Explanation:

Nominal GDP less percent change in price levels equals to real GDP

Nominal GDP is GDP calculated using current year prices

Real GDP is GDP using base year prices. it has been adjusted for inflation.

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year


Related Questions

Troy Enterprises uses a continuous review inventory control system. The firm operates 50 weeks per year, with an annual demand of 50,000 units, an ordering cost of $35 per order, a holding cost of $1 per unit per year, a lead time of 3 weeks, and a standard deviation of demand during lead time equal to 216.51 units. what is safety stock for the firm if a 94% service level is desired?

Answers

Answer:

Safety Stock is 336.62 units

Explanation:

As per given data

Demand = D = 50,000

Ordering Cost = S = $35

Holding Cost = H = $1 per unit per year

Weekly Demand = Demand / 50 weeks = 50,000 / 50 = 1,000 units per week

Weekly Demand during Lead time of 3 weeks = 1000 x 3 = 3,000 units

Standard Deviation = 216.51 units

Desired Service level = 94%

The Z score at 94% service level is 1.55477  

Safety Stock = Zscore x standard deviation = 1.55477 x 216.51

Safety Stock = 336.62

The Safety Stock for the firm if a 94% service level is desired is 336.62 units

Calculation of the safety stock:

Since

Demand = D = 50,000

Ordering Cost = S = $35

Holding Cost = H = $1 per unit per year

Now

Weekly Demand = Demand / 50 weeks

= 50,000 / 50

= 1,000 units per week

Now

Weekly Demand during Lead time of 3 weeks

= 1000 x 3

= 3,000 units

Standard Deviation = 216.51 units

Desired Service level = 94%

Also, The Z score at 94% service level is 1.55477  

So,

Safety Stock = Zscore x standard deviation

= 1.55477 x 216.51

= 336.62

hence, The Safety Stock for the firm if a 94% service level is desired is 336.62 units

Learn more about stock here: https://brainly.com/question/24353661

Zapper has beginning equity of $293,000, net income of $69,000, dividends of $58,000 and stockholder investments of $24,000. Its ending equity is:

Answers

Answer:

$328,000

Explanation:

As we all know that:

Ending Equity = Opening Equity + Share Issues + Net Income – Net Loss – Dividends Paid

Here,

Opening Equity is $293,000

Money raised through Shares Issuance was $24,000

Net Income would be $69,000

Dividends paid were $58,000

There were no losses as their is Profit for the year (Net Income).

By putting values, we have:

Ending Equity = $293,000  +  $24,000   +  $69,000   -  $58,000

= $328,000

There is strong evidence that many investors suffer from familiarity bias and overconfidence bias. Can you explain why these biases might exist

Answers

Answer:

The bias of most investors suffering from familiarity or overconfidence bias can be attributed to human factor of being comfortable with what the person knows. For example, Investor A knows the owner of Company B, he or she would be comfortable to invest in Company B because he or she is familiarize with the owner or the company.

On the other-hand, when an investor reviews the businesses that he or she has invested in that are doing well, the individual will become overconfident in his or her ability to know and find good prospects to invest. The investor will become laid back in doing his investigation before investing in subsequent businesses.

Explanation:

The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a piece of equipment it originally purchased for $302,000. a. What is the book value of the​ equipment? b. If Jones sells the equipment today for $184,000 and its tax rate is 35%​, what is the​ after-tax cash flow from selling​ it? c. Just before it is about to sell the​ equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if​ so, what is​ it? Explain.​ (Assume the new order will consume the remainder of the​ machine's useful​ life.) Note​: Assume that the equipment is put into use in year 1.

Answers

Answer:

a. What is the book value of the​ equipment?

$86,976

b. If Jones sells the equipment today for $184,000 and its tax rate is 35%​, what is the​ after-tax cash flow from selling​ it?

($184,000 - $86,976) x (1 - 35%) = $97,024 x 65% = $63,065.60

c. Just before it is about to sell the​ equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if​ so, what is​ it?

the cost to taking the new order is the opportunity cost of selling the equipment, which is $63,065.60.

Explanation:

MACRS depreciation rate:

Year             %              Depreciation expense             Carrying value

1                   20%            $60,400                                  $241,600

2                  32%            $96,640                                  $144,960

3                  19.20%        $57,984                                  $86,976

4                  11.52%         $34,790.40                             $52,185.60

5                  11.52%         $34,790.40                             $17,395.20

6                  5.76%          $17,395.20                              $0

You purchased a stock at a price of $48.98. The stock paid a dividend of $1.63 per share and the stock price at the end of the year was $54.12. What was the total return for the year? Multiple Choice 13.82% 10.49% 13.17% 12.51% 3.33%

Answers

Answer:

13.82%

Explanation:

The computation of total return for the year is shown below:-

Total return = (End value - Beginning value + Dividend) ÷ Beginning value

= ($54.12 - $48.98 + $1.63) ÷ $48.98

= 6.77 ÷ $48.98

= 0.13821

or

= 13.82%

Therefore for computing the total return we simply applied the above formula by considering all the information given in the question

Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales 820 Selling price per unit $ 2,130 Cost per unit $ 1,500 Variable selling and administrative expense (per unit) $ 75 Fixed selling and administrative expense (per year) $ 400,000 Interest expense for the year $ 29,000 Required: Prepare the company’s budgeted income statement for the year.

Answers

Answer:

Budgeted Income Statement for the year

Sales (820 units × $ 2,130)                            $1,746,600

Less Cost of Sales (820 units × $ 1,500)    ($1,230,000)

Gross Profit                                                       $516,000

Less Operating Expenses :

Selling and administrative expense

Variable (820 units ×  $ 75)                              ($61,500)

Fixed                                                               ($400,000)

Operating Profit                                                 $54,500

Less Non - Operating Expenses :

Interest                                                            ( $29,000)

Net Income / (Loss)                                           $25,500

Explanation:

Income Statement shows the company`s performance from its operations.

Income / (Loss) = Sales - Expenses.

A rights offer made to existing shareholders with the sole purpose of making it more difficult for another firm to acquire the company is called

Answers

Answer:

Poison pill

Explanation:

Poison pill is a strategy that is used to avoid that another party takes over an organization by allowing the current shareholders of the firm to acquire more shares. According to this, the answer is that a rights offer made to existing shareholders with the sole purpose of making it more difficult for another firm to acquire the company is called poison pill as this is a defensive strategy that companies use to avoid a takeover from an outside party.

Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Chapman as of May 31, 2014, are as follows. The company is preparing its statement of cash flows.
CHAPMAN COMPANY
COMPARATIVE BALANCE SHEET
AS OF MAY 31
2014 2013
Current assets
Cash $28,560 $20,820
Accounts receivable 75,850 58,940
Inventory 220,080 250,770
Prepaid expenses 9,148 7,580
Total current assets 333,638 338,110
Plant assets
Plant assets 600,070 502,460
Less: Accumulated depreciation—plant assets
150,060 125,320
Net plant assets 450,010 377,140
Total assets $783,648 $715,250
Current liabilities
Accounts payable $123,190 $115,200
Salaries and wages payable 47,660 72,420
Interest payable 27,980 25,490
Total current liabilities 198,830 213,110
Long-term debt
Bonds payable 70,770 100,640
Total liabilities 269,600 313,750
Stockholders’ equity
Common stock, $10 par 370,460 280,890
Retained earnings 143,588 120,610
Total stockholders’ equity 514,048 401,500
Total liabilities and stockholders’ equity
$783,648 $715,250

CHAPMAN COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED MAY 31, 2014
Sales revenue $1,255,260
Cost of goods sold 722,590
Gross profit 532,670
Expenses
Salaries and wages expense 252,580
Interest expense 75,830
Depreciation expense 24,740
Other expenses 8,980
Total expenses 362,130
Operating income 170,540
Income tax expense 43,250
Net income $127,290
The following is additional information concerning Chapman’s transactions during the year ended May 31, 2014.
1. All sales during the year were made on account.
2. All merchandise was purchased on account, comprising the total accounts payable account.
3. Plant assets costing $97,610 were purchased by paying $17,610 in cash and issuing 8,000 shares of stock.
4. The "other expenses" are related to prepaid items.
5. All income taxes incurred during the year were paid during the year.
6. In order to supplement its cash, Chapman issued 957 shares of common stock at par value.
7. Cash dividends of $104,312 were declared and paid at the end of the fiscal year.
Prepare a statement of cash flows for Chapman Company for the year ended May 31, 2014, using the direct method. (A reconciliation of net income to net cash provided is not required.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answers

Answer:

Chapman Company

Statement of Cash Flows for the year ended May 2014:

Operating activities:

Cash from customers     $1,238,350

Cash to suppliers              ($683,910)

Salaries & Wages                (277,340)

Other expenses                    (10,548)

Income Tax                           (43,250)

Net Cash from operating activities       223,302

Investing activities:

Plant                                      (17,610)         (17,610)

Financing activities:

Dividends                           (104,312)

Interest                                (73,340)

Bonds                                  (29,870)

Issue of stock                        9,570

Net cash from financing activities        (197,952)

Net cash flows                                          $7,740

Explanation:

a) Data and Calculations:

1. CHAPMAN COMPANY

COMPARATIVE BALANCE SHEET

AS OF MAY 31

                                                 2014                2013

Current assets

Cash                                     $28,560       $20,820

Accounts receivable              75,850          58,940

Inventory                             220,080        250,770

Prepaid expenses                    9,148             7,580

Total current assets           333,638           338,110

Plant assets

Plant assets                        600,070        502,460

Less: Accumulated depreciation

—plant assets                      150,060         125,320

Net plant assets                 450,010          377,140

Total assets                     $783,648       $715,250

Current liabilities

Accounts payable            $123,190        $115,200

Salaries & wages payable  47,660           72,420

Interest payable                  27,980          25,490

Total current liabilities       198,830          213,110

Long-term debt

Bonds payable                    70,770        100,640

Total liabilities                  269,600        313,750

Stockholders’ equity

Common stock, $10 par  370,460       280,890

Retained earnings            143,588         120,610

Total stockholders’ equity 514,048      401,500

Total liabilities and stockholders’

equity                              $783,648     $715,250

2. CHAPMAN COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED MAY 31, 2014

Sales revenue                    $1,255,260

Cost of goods sold                 722,590

Gross profit                             532,670

Expenses

Salaries and wages expense 252,580

Interest expense                       75,830

Depreciation expense              24,740

Other expenses                         8,980

Total expenses                       362,130

Operating income                  170,540

Income tax expense               43,250

Net income                          $127,290

3) Cash Receipts:

Cash from customers $1,238,350

Issue of stock                       9,570

4) Cash Payments:

Cash to suppliers         $683,910

Plant                                   17,610

Income Tax                      43,250

Dividends                        104,312

Salaries & Wages          277,340

Interest                            73,340

Other expenses              10,548

Bonds                              29,870

5) Prepaid Expenses

Ending balance             $9,148

Expenses                        8,980

Beginning balance         7,580

Cash paid                   $10,548

6) Accounts Receivable:

Beginning balance  $58,940

Sales                     1,255,260

Ending balance         75,850

Cash received   $1,238,350

7) Accounts Payable:

Beginning balance $115,200

Purchases                691,900

Ending balance      $123,190

Cash paid              $693,910

8) Purchases:

Ending inventory    $220,080

Cost of goods sold   722,590

Beginning inventory 250,770

Purchases               $691,900

9) Salaries and Wages Payable

Beginning balance $72,420

Expenses               252,580

Ending balance        47,660

Cash paid            $277,340

10) Interest payable:

Beginning balance $25,490

Expense                    75,830

Ending balance        27,980

Cash paid               $73,340

According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2016. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2016.
2016 2015
Sales Revenue $ 109,000 $ 133,500
Cost of Goods Sold 64,500 75,100
Gross Profit 44,500 58,400
Selling, General, and Administrative Expenses 36,900 38,800
Interest Expense 590 520
Income before Income Tax Expense 7,010 19,080
Income Tax Expense 1,500 5,900
Net Income $ 5,510 $ 13,180
Required:
1. Compute the times interest earned ratios for 2016 and 2015. (Round your answers to 1 decimal place.) Times Interest Earned 2015 2016
2. Does Computer Tycoon generate sufficient net income in both years before taxes and interest) to cover the cost of debt financing?
a. Yes
b. No

Answers

Answer:

A.

2015 37.7

2016 12.9

B. Yes

Explanation:

Computation of the times interest earned ratios for 2016 and 2015

First step is to find the EBIT

EBIT: 2016 $ 2015 $

Gross profit 44,500 58,400

Less Selling, General and Administrative expenses (36,900) (38,800)

EBIT 7,600 19,600

Second step is to compute the times interest earned ratios for 2016 and 2015 using this formula

Time interest earned = EBIT / Interest expense

Let plug in the formula

Time interest earned 2016 2015

EBIT $7,600 $19,600

÷Interest expense $590 $520

=Time interest earned 12.9 37.7

Therefore the Time interest earned will be :

2015 37.7

2016 12.9

2. Yes Computer Tycoon generate sufficient net income in both 2015 and 2016 before taxes and interest in order to cover the cost of debt financing.

On January 1, 2017 , Northeast USA Transportation Company purchased a used aircraft at a cost of $ 53,200,000. Northeast USA expects the plane to remain useful for five years (6,500,000 miles) and to have a residual value of $ 5,200,000. Northeast USA expects to fly the plane 900,000 miles the first year, 1,400,000 miles each year during the second, third, and fourth years, and 1,400,000 miles the last year.
1. Compute Northeast USA​'s depreciation for the first two years on the plane using the​ straight-line method, the​units-of-production method, and the​ double-declining balance method.
a. Straight-line method Using the straight-line method, depreciation is $:________
b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $:________
c. Double-declining balance method
Using the double-declining-balance method, depreciation is $_______ for 2017 and $ for 2018 for 2017 and $ for 2018. for 2017 and for 2017 and $________ for 2018.

Answers

Answer:

1. Compute Northeast USA​'s depreciation for the first two years on the plane using the​ straight-line method, the​units-of-production method, and the​ double-declining balance method.

a. Straight-line method Using the straight-line method, depreciation is $9,600,000

straight line depreciation = ($53,200,000 - $5,200,000) / 5 = $9,600,000

depreciation expense year 1 = $9,600,000

depreciation expense year 2 = $9,600,000

b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $7.384615 per mile

depreciation expense per unit of production = ($53,200,000 - $5,200,000) / 6,500,000 = $7.384615 per mile

depreciation expense year 1 = $7.384615 x 900,000 = $6,646,153.50

depreciation expense year 2 = $7.384615 x 1,400,000 = $10,338,461

c. Double-declining balance method

depreciation expense year 1 = 2 x 1/5 x $53,200,000 = $21,280,000

depreciation expense year 2 = 2 x 1/5 x $31,920,000 = $12,768,000

Shaw Company engages Maya Company to produce a large machine, install the machine, and train their employees on the machine. The machine, installation, and training are distinct, and Maya determines that the contract includes three separate performance obligations. The machine, installation, and training typically cost $800,000 $100,000, and $100,000 respectively when each is provided in a separate contract. Shaw and Maya agree to a total contract price of $920,000.

Required:
How much of the contract price should Maya allocate to the machine, installation, and training, respectively?

Answers

Answer:

Machine= 736,000

Installation= 92,000

Training= 92,000

Explanation:

Giving the following information:

The machine, installation, and training typically cost $800,000 $100,000, and $100,000 respectively when each is provided in a separate contract.

Shaw and Maya agree to a total contract price of $920,000.

First, we need to determine the proportion of each:

Machine= 800,000/1,000,000= 0.8

Installation= 100,000/1,000,000= 0.1

Training= 100,000/1,000,000= 0.1

Now, we can allocate:

Machine= 0.8*920,000= 736,000

Installation= 0.1*920,000= 92,000

Training= 0.1*920,000= 92,000

The law of comparative advantage indicates that if a group of individuals wants to maximize their joint output, then each good should be supplied by

Answers

Answer:

b. the low opportunity cost producer.

Explanation:

Here are the options to this question :

a. the person with the lowest wage rate.

b. the low opportunity cost producer.

c. the person with the most advanced technical knowledge.

d. the person that can accomplish the task most rapidly.

a country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.

for country A,

opportunity cost of producing beans = 5/10 = 0.5

opportunity cost of producing rice  = 10/5 = 2

for country B,

opportunity cost of producing rice = 5/10 = 0.5

opportunity cost of producing beans  = 10/5 = 2

Country A has a comparative advantage in the production of beans and country B has a comparative advantage in the production of rice

On October 10, the stockholder's equity of Sherman Systems appears as follows:
Common stock–$10 par value, 72,000 shares authorized,
issued, and outstanding $720,000
Paid-in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total stockholders’ equity $1,800,000
1. Prepare journal entries to record the following transactions for Sherman Systems.
1A. Purchased 5,000 shares of its own common stock at $25 per share on October 11.
1B. Sold 1,000 treasury shares on November 1 for $31 cash per share.
1C. Sold all remaining treasury shares on November 25 for $20 cash per share.
2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.

Answers

Answer and Explanation:

The journal entries are shown below:

1A. Treasury Stock (5,000 × $25) $75,000

            To Cash $75,000

(Being the purchased of its own common stock is recorded)

1B. Cash (1,000 × $31 shares) $31,000

            To Treasury Stock (1,000 ×  $25) $25,000

            To Paid-in Capital from Sale of Treasury Stock $6,000

(Being the sale of treasury stock is recorded)

1C. Cash (4,000 × $20) $80,000

Paid-in Capital from Sale of Treasury Stock $6,000

Retained Earnings $14,000

         To Treasury Stock 99,000 (4,000 × 25) $100,000

(Being the sale of treasury stock is recorded)

2. The preparation of the revised equity section of its balance sheet is presented below:

Common stock 36,000 shares authorized, issued                     $720,000

Paid in capital in excess of par value

, common stock.                                                                             $216,000

Retained Earnings.                                                       $864,000

Less: Treasury Stock - 5,000 shares                           -$75,000 $789,000

Total stockholders' equity                                                            $1,725,000

​What is the relationship between total surplus and economic efficiency?

Answers

Answer: When total surplus gets maximized, then economy meet economic efficiency.

Explanation:

Economic efficiency is described as a thinking that there is one possible way to make situation better by imposing a cost on another.

Total surplus is described as the sum of producer and consumer surplus.

It gets maximized in a perfect competition (hit free-market equilibrium).

i.e. It gets maximized when both consumer and producer surplus is maximum, and then the economy meet economic efficiency.

Conversion costs are:_______.
A. The direct labor costs associated with processing a product.
B. The combined costs of converting raw materials to finished goods.
C. The overhead costs associated with processing a product.
D. All the costs that go into the manufacturing of a product (DM, DL and OH).

Answers

Answer:

B. The combined costs of converting raw materials to finished goods.

Explanation:

Conversion Costs are the combined costs of converting raw materials to finished goods.

These include the costs of direct labor and manufacturing overheads such as water and electricity.

Suppose the real risk-free rate is 3.50%,the average future inflation rate is 2.50%, a maturity premium of 0.20% per year to maturity applies, i.e., MRP = 0.20%(t), where t is the years to maturity. Suppose also that a liquidity premium of 0.50% and a default risk premium of 0.80% applies to A-rated corporate bonds.

Required:
What is the difference in the yields on a 5-year A-rated corporate bond and on a 10-year Treasury bond?

Answers

Answer:

the 5 year A-rated corporate bond yields 0.3% more than the 10-year Treasury bond

Explanation:

the yield of a 10 year treasury bond = real risk free rate + average future inflation rate + (maturity premium x number of years) = 3.5% + 2.5% + (20% x 10 years) = 8%

the yield of a 5 year A-rated corporate bond = real risk free rate + average future inflation rate + liquidity premium + default risk premium + (maturity premium x number of years) = 3.5% + 2.5% + 0.5% + 0.8% + (20% x 5 years) = 8.3%

difference in yields = 8.3% - 8% = 0.3%

Green Inc. made no adjusting entry for accrued and unpaid employee wages of $38,000 on December 31. This error would Multiple Choice Understate assets by $38,000. Overstate net income by $38,000. Understate net income by $38,000. Have no effect on net income.

Answers

Answer:

The answer is B. Overstate net income by $38,000.

Explanation:

Accrued expense is an expense that has been enjoyed or incurred but has been paid for. Examples of an accrued expense are unpaid wages/salary, unpaid electricity bill etc.

Usually, the adjusting entry for accrued expense is to debit the expense and debit increases expense while credit decreases it. Since there is no adjusting entry, that means no expense is being recognized on the income statement for this transaction. Hence, the net income increases (overstated). because ordinarily expense reduces net income.

When harvesting a venture, the outright purchase of the going concern by managers, employees, or external buyers is known as going public. Question 2 options:

Answers

Answer:

In simple words, Harvesting seems to be the tool used by traders and investors to get out of business and, preferably, to recover the interest of their investments in the company. It's about more than trying to sell and having to leave a company. It includes collecting interest, risk reduction, and developing opportunities for the future.

Whenever a marketing plan includes a harvest tactic, investment firms and borrowers are convinced that the proprietors aim to establish the market and start selling it to either international shareholders or go to another corporation.

Begin by reviewing the labels for the change in​ stockholders' equity and then enter the amounts for each situation.
Three situations about Timmy Company's issuance of stock and declaration and payment of dividends during the year ended January 31, 2017. follow.
Requirements.
Begin by reviewing the labels for the change in stockholders' equity and then enter the amounts for each situation.
Situation A Situation B Situation C
Total stockholders' equity, January 31, 2016
Add: Issuance of stock
Net income
Less: Dividends declared
Net loss
Total stockholders' equity, January 31, 2017
For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Timmy's net income or net loss during the year ended January 31 2017.
1. Timmy issued $13 million of stock and declared no dividends.
2. Timmy issued no stock but declared dividends of $17 million.
3. Timmy issued $20 million of stock and declared dividends of $27 million.

Answers

Answer:

Note: The missing part of the question is

"                          2017'million    2016'million

Total asset             77                  50

Total liability           18                  13"

Solution:

Stockholders Equity at year end

                         2017     2016

Assets      77        50    

Less: liabilities   -18       -13

Equity at end     59       37

Note: Situation 1, 2 and 3 is the same as question 1, 2 and 3

                                          Situation 1   Situation 2  Situation 3

                                             $'million     $'million      $'million

Total stockholders Equity            37            37              37

Jan 31 ,2016

Add: Issuance of stock                13              0               20

Less: dividend declared               0             -17              -27

Net income                                    9             39               29

Total stockholders Equity             59           59              59

January 31,2017

Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6 pounds $4.30 per pound $25.80 Direct labor 2.40 hours $5.00 per hour $12.00 During May, Jackson purchased 145,600 pounds of direct material at a total cost of $655,200. The total factory wages for May were $258,800, 90 percent of which were for direct labor. Jackson manufactured 21,000 units of product during May using 122,800 pounds of direct material and 50,900 direct labor-hours. The price variance for the direct material acquired by Jackson Industries during May is:

Answers

Answer:

Direct material price variance= $29,120 unfavorable

Explanation:

Giving the following information:

Standard: Direct materials 6 pounds $4.30 per pound $25.80

Actual= Jackson purchased 145,600 pounds of direct material at a total cost of $655,200.

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Actual price= 655,200/145,600= $4.5

Direct material price variance= (4.3 - 4.5)*145,600

Direct material price variance= $29,120 unfavorable

A car dealership union negotiates a contract that dramatically increases the salaries of all salesmen. If one of the salesmen is thinking of changing careers to be a hardware salesman, his opportunity cost:___________.
a. Would not be affected
b. Of becoming a hardware salesman would decrease
c. Of becoming a hardware salesman would increase
d. None of the above

Answers

Answer:

c. Of becoming a hardware salesman would increase

Explanation:

Opportunity cost defines that when a person gets to benefit from another than he received. So, that person takes another benefit from where he gets more benefit or we can say that he will choose the best alternative.

According to the given situation, A car dealership association is negotiating a contract that significantly increases all salesmen 's wages. Now, the Opportunity cost when one of the salespersons feels that shifting the path to hardware is of becoming a hardware salesperson that would increase.

Hence, the right answer is C

1. What are Red Bull's greatest strengths and risks as more companies (like Coca-Cola, Pepsi, and Monster) enter the energy drink category and gain market share? 2. Should Red Bull do more traditional advertising? Why or why not? Discuss the effectiveness of Red Bull's sponsorships, for example, Bull Stratos. Is this a good use of Red Bull' marketing budget? Where should the company draw the line?

Answers

Answer:

Strengths

RedBull is a well-established brand in the Energy Drink sub-sector.It has been in existence since 1987 making it a 33-year-old company. That's a lot of experience doing the same thing. Given its years of experience, consumers have a lot of confidence in its brand. This means it has strong brand equity.As of 2019, RedBull still has the highest market share of any energy drink in the world with a record 7.5 billion cans sold

Risks

The challenge is this, Coca-cola is a much older company with about 128 years behind it. It was established in 1892.Coca-cola equally has a very strong brand equityIn the carbonated drinks sub-sector, it has dominated the sector since 2004. It's market share is estimated at 42.5%.It has about 500 brands compared to Redbull which has only one brand.In Pepsi was created in 1893. Just one year younger than Coca-cola. It currently has about 24.9% of the soda market. Within the cola segment alone, it has about 100 flavours.Monster energy as a strong entrant into the energy drink market is only 18 years old and it already has 49 different drinks with about 14% market share worldwide.

Suffice it to say that if Red Bull does not concieve of a critical strategy to maintain market dominance, it may continue to bleed it's market share.

2. Red Bull should do more than traditional advertising.

There is no reason why it can go into the Soda space. There are countries where the big players still exert a huge dominance. Mexico, for instance, consumes the more coca-cola than anywhere else in the world.

Red Bull in addition to keeping it's market share through aggressive advertising, can enter into the soda market, targeting these regions where coca-cola and other players seem to have a pseudo monopoly.

Red Bull can also look at creating more flavours depending on the psychographics of the target market it is looking at.

Bull Stratos

Red Bull Stratos is the official name for the project involving Mr Baumgartner's mission. Mr Baumgartner's project involved a record breaking jump for the ages from the edge of space which cost about USD 30 million. It is on record that this is nothing like what Red Bull have ever done before and it did so at a fraction of it's annual sports marketing which is estimated at about USD 300 Million.

To answer the question about its effectiveness, its definitely yes.

Over 8 million people saw the jump which had the Red Bull logo/ branding conspicuously displayed. It was dubbed "the most successful Public Relations campaign of year 2012."

The line will always be dictated by the metrics which show returns on marketing budget invested.

Any strategy that currently works to enhance the brand of Red Bull or at least keep its dominance over the energy drink market, must be explored.

Cheers!

The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be $1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndt’s federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndt’s expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndt’s depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndt’s depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why? Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (p. 93). Cengage Learning. Kindle Edition.

Answers

Answer:

a) Berndt Corporation

Income Statement

Sales revenue                                         $12,000,000

All cost other than depreciation            ($9,000,000)

Depreciation expense                             ($1,500,000)

EBIT                                                            $1,500,000

Income taxes                                             ($600,000)

Net income                                                  $900,000

net cash flow = $900,000 + $1,500,000 = $2,400,000

b) if depreciation doubles, net profit will decrease to $0, but net cash flows will increase to $3,000,000

c) if depreciation decreases by 50%, net profit will increase to $1,350,000, but net cash flows will decrease to $2,100,000

d) Once a company is operating, its value is generally calculated based on its cash flows, therefore, I would select the option that increases the company's net cash flows (Congress doubles depreciation expense).

Inventory at the end of April, 2008: 200 unitsExpected demand during April, 2008: 50 unitsProduction expected during April, 2008: 100 unitsWhat was the inventory at the end of March 2008?

Answers

Answer:

beginning inventory= 150 units

Explanation:

Giving the following information:

Endiing inventory= 200 units

Sales= 50 units

Production= 100

To calculate the beginning inventory, we need to use the following formula:

Production= sales + ending inventory - beginning inventory

100= 50 + 200 - beginning inventory

beginning inventory= 250 - 100

beginning inventory= 150 units

Milltown Company specializes in selling used cars. During the month, the dealership sold 26 cars at an average price of $15,400 each. The budget for the month was to sell 24 cars at an average price of $16,400. Compute the dealerships sales volume variance for the month.

Answers

Answer:

Sales volume variance = $32,800 favorable

Explanation:

Please refer to the below for Sales Volume Variance formula and calculation.

Sales Volume Variance = (Budgeted sales volume - Actual sales volume) Standard price per unit

= ( 24 units - 26 units) $16,400

= ( 2 units ) $16,400

= $32,800 favorable

The Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation requires a return on investment of 18%.
Required ( support your answers with explanations):
a.Calculate the company's return on investment (ROI) and residual income (RI).
b.Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment?(Note: the decision model for the division manager is self-interested i.e. centers on the decision's effect on his evaluation criteria)
c.Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a residual income of $50,000 and its manager is evaluated based on the division's residual income, will the division manager be inclined to request funds to make this investment?(Note: the decision model for the division manager is self-interested i.e. centers on the effect on his evaluation criteria)

Answers

Answer:

The Clipper Corporation

a. The company's return on investment (ROI) and residual income (RI):

ROI = $380,000/$2,000,000 x 100

= 19%

RI = $380,000 - (18% of $2,000,000)

= 380,000 - $360,000

= $20,000

b. Investment = $70,000

Annual operating income = $12,950

Department's current return on investment = 20%

Actual return on investment for this project = $12,950/$70,000 x 100

= 18.5%

The manager of the division will not be inclined to request funds to make this investment that will yield an ROI of 18.5% when the department is already making 20%.  This new investment will dilute his current ROI and adversely affect his performance evaluation.

c. Investment = $70,000

Annual operating income = $12,950

Current divisional residual income = $50,000

Actual residual income from this project,

= $12,950 - (18% of $70,000)

= $12,950 - $12,600

= $350

The division manager will be inclined to request funds for this investment that will increase her Residual Income marginally from $50,000 to $50,350, because her evaluation depends on an absolute figure and not a relative one (ROI).

Explanation:

1. The Clipper Corporation's Residual Income is equal to its operating income minus (minimum required return x operating assets).

2. The Clipper Corporation's Return on Investment is a derivative obtained from dividing the returns of its investment by the cost of the investment.

Here, we are preparing the cpmpany's return on investment (ROI), residual income (RI) etc

a. Computation of the Return on investment (ROI):

Return on investment = (Operating income/Average operating assets) * 100

Return on investment = ($380,000/$2,000,000) * 100

Return on investment = 0.19

Return on investment  = 19%

Computation of the residual income (RI)

Residual income = [(Operating income - (Return on investment *Average operating assets)]

Residual income = $380,000 - (18% * $2,000,000)

Residual income = 380,000 - $360,000

Residual income = $20,000

b. Given Information

Investment = $70,000

Annual operating income = $12,950

Department's current return on investment = 20%

The actual return on investment for this project will equals:

= (Annual operating income / Investment) * 100

= ($12,950/$70,000) * 100

= 0.185

= 18.5%

Therefore, the manager of the division will not be inclined to request funds to make this investment that will yield an ROI of 18.5% because the department is already making 20%.

c. Given Information

Investment = $70,000

Annual operating income = $12,950

Current divisional residual income = $50,000

The actual residual income from this project will be:

= Annual operating income - (Return on investment * Investment)

= $12,950 - (18% * $70,000)

= $12,950 - $12,600

= $350

Therefore, the division manager will be inclined to request funds for this investment that will increase the residual Income marginally from $50,000 to $50,350 because her evaluation depends on an absolute figure and not a relative one (Return on investment).

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n the _____stage of team development, team members often become intensely loyal to one another and feel mutual accountability for team successes and failures.

Answers

Answer:

Performing.

Explanation:

In other to get to this stage of team development, you must have passed through the certain other three stages where you are been formed as a group and also stormed before performance.

Group seen to have made it to their performing stage are seen to displays a level of competence experience and also trust that is less apparent in the earlier stages of group development. Cohesion is seen to be the vital driver in this stage of team development. Also strong relationships is maintained amongst its members facilitating smooth flow of work; and can certainly work without supervision too.

Baker's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Baker product manager do in order to improve upon the buying criteria, and thus potentially increase demand

Answers

Question options :

Increase MTBF by 2000

Reposition Cake to make it even smaller and higher performing

Increase the promotion budget to gain greater awareness

Lower the selling price since it is the second most important buying criteria

Answer:

Increase the promotion budget to gain greater awareness

Explanation:

In this case, some managers might consider reducing price and may be affecting contribution margin in this way(because selling price/profit is reduced and price- variable cost =contribution margin). While price reduction might be a good strategy to compete in the market, it might not be the best option here. in order to increase demand in a case such as this, the manager should consider increasing product awareness so as to reach more potential buyers and increase market share compared to competitors.

The accounts receivable turnover is computed as __________ divided by __________. sales; accounts receivable sales; average accounts receivable sales; net income accounts receivable; net income

Answers

Answer:

sales ; average accounts receivables

Explanation:

Accounts receivable turnover refers to how a business firm manage its assets. Businesses, companies uses accounts receivables to know and quantify how perfectly goods bought on credit by their customers are being paid back. It also measures how business gives credit and collects back it's debt .It is calculated as net sales divided by average accounts receivables.

according to the nist the process of identifying risk, assessing risk, and taking steps to reduce risk to an

Answers

Answer: Risk management

Explanation:

According to the nist, the process of identifying risk, assessing risk, and taking steps to reduce risk to an acceptable level is referred to as the risk management.

Risk management simply has to do with the identification of risks before they occur. In such scenarios, the business owners can either avoid the risk or minimize the impact of the risk.

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