Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5.9 - 5.65)*26,600
Direct material price variance= $6,650 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7,300*3.6 - 26,600)*5.9
Direct material quantity variance= $1,888 unfavorable
YZ Company is rethinking the way it ships to its 62 customers in another city 220 miles away.
Current Shipping/Delivery Method
They currently hire an LTL (less-than-truckload) carrier to pick up and deliver these shipments. Each customer order shipped via LTL carrier costs $147.
Alternate Shipping/Delivery Method
A 3PL (third-party logistics provider) has approached XYZ Company and suggested that they make full truckload (TL) shipments from their facility to the 3PL's warehouse in the customers' city. The 3PL would then break the bulk shipment (TL or truckload shipment) into individual customer orders to be shipped locally by an LTL carrier. The relative data for this alternate shipping method are as follows:
Full TL shipment cost (220 miles) = $675
Average order weight = 750 lbs.
Warehouse break-bulk fee (per 100 lbs., a.k.a. per "hundred weight") = $13
Local LTL delivery fee = $36
1. What is the total cost of delivering to all customers via LTL carrier (current method
R=_______.
2. How much money would XYZ company save by using the alternate shipping/delivery method?
R=______.
3. At what number of customers would the cost of these two methods be the same?
R=______.
Answer:
1. Total cost of customer order shipped via LTL carrier is $9,114.
2. XYZ company would save $162 by using the alternate shipping/delivery method.
3. The cost of these two methods would be the same when the number of customers is approximately 6.
Explanation:
To ease answering the question, let us first the define as follows:
N = Number of customers = Number of Order
A = Each customer order shipped via LTL carrier costs = $147
B = Average order weight = 750
C = Warehouse break-bulk fee per hundred weight = 13
D = Total cost of weight = ((N * B) / 100) * C
E = Local LTL delivery fee = $36
F = Total Local LTL delivery fee = N * E
G = Full TL shipment cost (220 miles) = 675
H = Total cost of shipping using 3PL = D + F + G
I = Total cost of customer order shipped via LTL carrier = N * A
J = Difference between the cost of the two methods = I - H
1. What is the total cost of delivering to all customers via LTL carrier (current method
This can be calculated using E above as follows:
Total cost of customer order shipped via LTL carrier = E = N * A = 62 * $147 = $9,114
2. How much money would XYZ company save by using the alternate shipping/delivery method?
From the definitions above, we have:
N = Number of orders = 62
D = Total cost of weight = ((N * B) / 100) * C = ((62 * 750) / 100) * 13 = $6,045
F = Total Local LTL delivery fee = N * E = 62 * 36 = $2,232
G = Full TL shipment cost (220 miles) = $675
H = Total cost of shipping using 3PL = D + F + G = $6,045 + $2,232 + $675 = $8,952
I = Total cost of customer order shipped via LTL carrier = $9,114
J = Difference between the cost of the two methods = I - H = $9,114 - $8,952 = $162
Therefore, XYZ company would save $162 by using the alternate shipping/delivery method.
3. At what number of customers would the cost of these two methods be the same?
H = Total cost of shipping using 3PL = D + F + G = (((N * B) / 100) * C) + (N * E) + G ............ (1)
Substituting all the relevant value into equation (1), we have:
H = (((N * 750) / 100) * 13) + (N * 36) + 675
I = N * 147
Equating H and I and solve for N, we have:
(((N * 750) / 100) * 13) + (N * 36) + 675 = N * 147
((N0.01 * 7.50) * 13) + 675 = N147 - N36
(N0.075* 13) + 675 = N111
N0.975 + 675 = N111
675 = N111 - N0.975
N110.025 = 675
N = 675 / 110.025
N = 6.13496932515337.
By approximating to a whole number since we are talking about human being, we have:
N = 6
At what number of customers would
Therefore, the cost of these two methods would be the same when the number of customers is approximately 6.
Cal Cookie Company (CCC) has 100 million shares of $1 par common stock authorized. The transactions below caused changes in CCC's outstanding shares.
January 4, 2016 Repurchased and retired 1 million shares at $8 per share
June 25, 2016 Repurchased and retired 2 million shares at $2 per share
Prior to the transactions, CCC's shareholder's equity included the following:
Common stock, 80 million shares at $1 par $80,000,000
Paid-in-Capital - excess of par160,000,000
Retained Earnings 120,000,000
Required:
Record entries for the above transactions. Please show work
Answer and Explanation:
The journal entries are shown below:
On January 4, 2016
Common capital (1 million × $1 per share) $1,000,000
Paid in capital excess of par (1 million × $160,000,000 ÷ $80,000,000) $2,000,000
Retained earnings (difference) $5,000,000
To Cash (1 million × $8) $8,000,000
(Being repurchase & retired shares are recorded)
On June 25,2016
Common capital (2 million × $1 per share) $2,000,000
Paid in capital excess of par ( 2 million × $2) $4,000,000
To Cash (2 million × $2) $4,000,000
To Retained earnings (difference) $2,000,000
(Being repurchase & retired shares are recorded)
Waterway Industries purchased land as a factory site for $1335000. Waterway paid $120000 to tear down two buildings on the land. Salvage was sold for $8300. Legal fees of $5220 were paid for title investigation and making the purchase. Architect's fees were $46000. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15280. The contractor was paid $4500000. An assessment made by the city for pavement was $9700. Interest costs during construction were $258000. The cost of the land that should be recorded by Waterway Industries is $1479620. $1465520. $1469920. $1455820.
Answer:
$1,465,520
Explanation:
Calculation of cost of the land that should be recorded by Water ways industries
Cost of land = Purchase price + demolition of building - sales of salvage + legal fees + Title insurance cost + Payment assessment
Cost of land = $1,335,000 + $120,000 - $8,300 + $5,220 + $3,900 + $9,700
Cost of land = $1,465,520
Which of these best describes the Federal
Reserve System?-
It is an independent agency that
supervises and manages the financial
system.
-It is an agency through which Congress
supervises and manages the financial
system.
-It is an agency through which the judiciary
supervises and manages the financial
system.
-It is an agency through which the
executive branch supervises and manages
the financial system.
Answer:
Option A
Explanation:
The Federal Reserve System was created by Congress in order to provide an independent agency to the nation that can deal with the national monetary and financial system. It is the central bank of US that make monetary policies to maximize employment and stabilize inflation and interest rates.
Hence, option A is correct
The Maryville Construction Company occupies 105,800 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows: Allocation Department Area used S1 S2 S3 S4 Finishing Assembly S1 18,600 --- 0.20 0.10 --- 0.10 0.60 S2 5,050 --- --- 0.40 0.40 --- 0.20 S3 10,100 0.20 0.20 --- 0.30 0.20 0.10 S4 5,050 0.20 0.10 0.20 --- 0.30 0.20 Finishing 30,150 --- --- --- --- --- --- Assembly 36,850 --- --- --- --- --- --- Rent paid for the area used is $736,000. How much rent is allocable to the assembly department using the direct method of allocation
Answer:
$404,800
Explanation:
Calculation to determine How much rent is allocable to the assembly department using the direct method of allocation
Using this formula
Rent =Area used by Assembly department / Total Area used by Manufacturing Departments x Total Rent paid
Let plug in the formula
Rent =36,850/ (36,850+30,150) x $736,000
Rent=36,850/67,000*$738,000
Rent=0.55*$736,000
Rent= $404,800
Therefore How much rent is allocable to the assembly department using the direct method of allocation is $404,800
Diamond Company manufactures two models of cassette recorders: VCH and MTV. Based on the following production data for April, prepare a production budget.
VCH MTV
Estimated inventory (units), April 1 2,900 4,000
Desired inventory (units), April 30 6,900 5,250
Expected sales volume (units):
Eastern zone 12,500 12,960
Midwest zone 19,000 19,800
Western zone 14,500 9,840
Answer and Explanation:
The preparation of the production budget is presented below:
Particulars VCH MTV
Expected Sales:
Eastern zone 12500 12960
Midwest zone 19000 19800
Western zone 14500 9840
Add: Desired inventory 6900 5250
Less: Opening inventory (2900) (4000)
Production in units 50,000 43,850
Project manager Claire and her team need to minimize project risks. Help them match the step to minimize risk to what each step Involves.
Answer:
Determine which risks goes with prioritizing
Take into consideration goes with identifying
Relate to contingency goes with mitigating
and
Determine the likelihood goes with evaluating
Explanation:
I did the test and got it correct! Hope this helps :) For Edmentum/Plato
Answer:
Determine which risks >>> prioritizing risks
Take into consideration >>> identifying risks
Relate to contingency >>> mitigating risks
Determine the likelihood >>> evaluating risks
Explanation:
Correct on plato
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 20 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $7 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.
Answer:
See below
Explanation:
1. Total compensation pertaining to the restricted shares
= Fair value per share × Shares granted
= $7 × 20,000,000
= $140,000,000
Therefore, the total compensation cost pertaining to the restricted shares is $140,000,000
2. Journal entries as at December 31, 2021 (in million dollars)
Dr Compensation expense ($140,000,000 ÷ 2 years) $70
Cr Paid- in capital - restricted stock $70
Journal entries as at December 31, 2022 (in million dollars)
Dr Compensation expense ($140,000,000 ÷ 2 years) $70
Cr Paid in capital - restricted stock $70
Dr Paid in capital restricted stock $140
Cr Common stock (20 million shares × $1 par) $20
Cr Paid in capital in excess of par (remainder) $120
You are the manager of a firm that sells a leading brand of alkaline batteries. Click on the link below to access data on the demand for your product. Specifically, the file contains data on the natural logarithm of your quantity sold, price, and the average income of consumers in various regions around the world. Use the information provided in the excel spreadsheet to perform a log-linear regression. Excel Data File Fill in your estimates below:
Instruction:
Enter a negative number if the coefficient estimate is negative, and round your response to two decimal places.
lnQ=C ____ + _____ InP+ _____ InM
Determine the likely impact of a 3 percent decline in global income on the overall demand of your product.
a. Demand will decline by approximately 0.1%, but since income elasticity isn't significantly different from zero, it likely won't fall at all.
b. Demand will fall by nearly 10%, and income elasticity is significantly less than zero.
c. Demand will fall by nearly 1%, and income elasticity is significantly less than zero.
d. Demand will decline by approximately 3%, but since income elasticity isn't significantly different from zero, it likely won't fall at all.
Answer:
lnQ=C 1.29 + -0.07 lnP + -0.03 lnM
c. Demand will fall by nearly 1% and income elasticity is significantly less than zero.
Explanation:
Income elasticity is a major factor which impact the demand of a product. It measures the change in quantity demanded due to change in income. In the given scenario the demand for product will decline due to change in income. The income elasticity is smaller there will not be major change in demand but there will be some impact observed on the quantity demanded.
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $34 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally:
Per Unit 21,000 Units
Per Year
Direct materials $ 14 $ 294,000
Direct labor 12 252,000
Variable manufacturing overhead 2 42,000
Fixed manufacturing overhead, traceable 9 * 189,000
Fixed manufacturing overhead, allocated 12 252,000
Total cost $ 49 $ 1,029,000
Required:
1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?
2. Should the outside supplier’s offer be accepted?
3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per year. Given this new assumption, what would be financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?
4. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted?
Answer:
Troy Engines, Ltd.
1. Financial advantage of buying from outside supplier = $51,000 ($629,000 - $578,000)
2. The outside supplier's offer should be accepted.
3. The financial advantage would increase by $170,000 to $221,000.
4. The outside supplier's offer should still be accepted.
Explanation:
a) Data and Calculations:
Outside supplier's selling price = $34 per unit
Costs of producing in-house:
Per Unit 21,000 Units Per Year
Direct materials $ 14 $ 294,000
Direct labor 12 252,000
Variable manufacturing overhead 2 42,000
Fixed manufacturing overhead, traceable 9 * 189,000
Fixed manufacturing overhead, allocated 12 252,000
Total cost $ 49 $ 1,029,000
Cost of buying 17,000 carburetors from the outside supplier at $34 per unit = $578,000
Relevant cost of making 17,000 carburetors in-house ($37 * 17,000) = $629,000
1. Financial advantage of buying from outside supplier = $51,000 ($629,000 - $578,000)
2. The outside supplier's offer should be accepted.
3. The financial advantage would increase by $170,000 to $221,000.
4. The outside supplier's offer should still be accepted.
The Allied Corporation analyzes a project that requires an immediate investment of $440. Allied estimates that at the end of the first year the project will generate a cash flow of $660, but that at the end of the second year, when the project ends, it will generate a negative cash flow of $85. The project's required rate of return is estimated to be 7.50%. Calculate the NPV of Allied's project.
Answer:
NPV = $100.4002 rounded off to $100.40
Explanation:
The NPV or net present value is the present value of a project or business's cash flows which are calculated by deducting the cash outflows from the cash inflows. NPV is a tool or criteria used for investment and project appraisal. The NPV can be calculated as follows,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n - Initial Outlay
Where,
CF1, CF2, ... represents the cash flows in Year 1, Year 2 and so on.r represents the discount rateNPV = 660 / (1+0.075) + [ -85 / (1+0.075)^2] - 440
NPV = $100.4002 rounded off to $100.40
Berry Bloom Co is getting ready for Mother's Day and needs to purchase bouquets of flowers which will be sold prior to the holiday. Due to the high demand leading up to Mother's Day, the bouquets of flowers are sold at $20/bouquet. However, after the holiday, the bouquets can only be sold at $10/bouquet. The bouquets of flowers are purchased at $15/bouquet. Berry Bloom Co wants to perform an analysis to determine how many bouquets should be procured in preparation for Mother's Day. This type of problem is called the Group of answer choices Economic Order Quantity Problem Nonlinear Optimization Problem Newsvendor Problem Discriminant Analysis Problem
Answer:
Berry Bloom Co.
This type of problem that requires Berry to perform an analysis to determine how many bouquets of flowers to procure in preparation for Mother's Day is a:
Newsvendor Problem.
Explanation:
a) Data and Calculations:
Selling price of bouquets of flowers = $20/bouquet
Cost price of bouquets of flowers = $15/bouquet
Profit per bouquet during Mother's Day = $5 ($20 - $15)
After-holiday selling price of the bouquets of flowers = $10/bouquet
Loss per bouquet of flower after the holiday = $5 ($15 - $10)
b) The Newsvendor model describes the challenges facing Berry Bloom as it gets ready for the Mother's Day holiday. The company must decide the volume of bouquets of flowers to procure prior to the holiday. The purchase decision becomes a problem because the demand for flowers is not certain, and the company is aware that unsold bouquets will be sold at a loss of $5 per bouquet after the holiday.
With perfect price discrimination, the marginal revenue curve
A) is equal to the demand curve.
B) is below the demand curve. C) is above the demand curve.
D) is horizontal.
Answer: b
Explanation: Because the monopolist must lower the price on all units in order to sell additional units, marginal revenue is less than price. Because marginal revenue is less than price, the marginal revenue curve will lie below the demand curve.
Select the correct word(s) from the drop down menu to finish the following sentences:
Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are_____. If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are_____. Considering those two characteristics, fish in the ocean are____.
Question Completion:
Drop-down menu:
- excludable
- non-excludable
- rivalrous
- non-rivalrous
- common goods
- club goods
- public goods
- private goods
Answer:
Correct words to finish the sentences:
Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are__non-excludable___.
If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are__rivalrous___.
Considering those two characteristics, fish in the ocean are_common goods___.
Explanation:
The two key characteristics of a public good are: it is non-excludable and non-rivalrous. A common good is non-excludable but rivalrous. A private good is excludable and rivalrous. A club good is excludable and non-rivalrous.
Non-excludable refers to goods that are costly and impossible for a person to exclude other users from using the goods.
Non-rivalrous good refers to goods that a person can use without preventing others from using the goods.
Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3). However, to process the new raw material, fixed operating costs will increase by $100,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.
(a) Prepare a projected CVP income statement for 2017, assuming the changes have not been made, and
(b) assuming that changes are made as described.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price per unit= 1,560,000 / 60,000= $26
Unitary variable cost= 900,000 / 60,000= $15
Fixed costs= $500,000.
First, the income statement without the changes:
Sales= 1,560,000
Total varaible cost= (900,000)
Contribution margin= 660,000
Total fixed costs= (500,000)
Net operating income= 160,000
Now, with the changes:
Unitary variable cost= (15*0.8)= 12
Selling price= 26 - 1.5= $24.5
Sales in units= 60,000*1.05= 63,000
Fixed costs= 500,000 + 100,000= $600,000
Sales= 24.5*63,000= 1,543,500
Total variable cost= (12*63,000)= (756,000)
Total contribution margin= 787,500
Fixed costs= (600,000)
Net operating income= 187,500
For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $91,000 and $3,000, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $413,000 and $417,000, respectively, and $3,690 in accounts receivable were written off. Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021, is:
Answer:
See below
Explanation:
Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021 would be calculated as;
Step 1
= $413,000 × 1%
= $413,000 × 0.01
= $4,130
Step 2
= $3,000 - $3,690
= ($690)
Step 3
= $4,130 + ($690)
= $4,130 - $690
= $3,440
Therefore, Rahal's final balance in its allowance for uncollectible accounts at December 31, 2020 is $3,440
Junko's car dealership has been suffering from dust on the cars in its lot ever since Mak opened his bakery nearby. The bakery's flour deliveries send waves of dust down the block. Junko offers to cover half of the cost of Mak adding a shelter for his delivery area to reduce the blowing of flour dust toward the dealership. This is an example of reducing a negative externality through:
Answer:
"Private bargaining" seems to the appropriate response.
Explanation:
An accidental result of such an operation obtained by a corporate system as well as the agent isn't a respondent to this product or group of products, is termed as Externality.Factory pollution would be a detrimental externality as well as the costs are paid by local people. Correspondingly, thick planting supplies the locality with natural ventilation, which is a good externality.The groups remain private or third-party support until they reached a compromise. Thus the solution seems to be the right one.
Assigning manufacturing overhead costs and other indirect costs is called a:
Answer:
Cost allocation
Explanation:
Cost allocation means the process where the identification, aggregation, and the allocating of the cost is made to the various cost objects. It plays an important role as the cost i.e. incurred for generating a particular product or rendering a service would be determined
So if the manufacturing overhead cost assigned and the other indirect cost so this we called cost allocation
You expect to receive a payout from a trust fund in 3 years. The payout will be for $10,200. You plan to invest the money at an annual rate of 6.2 percent until the account is worth $17,800. How many years do you have to wait from today
Answer:
n= 12.25 years
Explanation:
Giving the following information:
Present value= $10,200
Future value= $17,800
Interest rate= 6.2%
First, we need to calculate the number of years it will take the investment to reach $17,80. We need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(17,800/10,200) / ln(1.062)
n= 9.25 years
Now, the total number of years:
n= 9.25 + 3
n= 12.25 years
A $64,000 machine with a 6-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with a new machine costing $82,000, with a 10-year class life. The new machine will not increase sales, but will decrease operating costs by $9,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the incremental annual cash flow associated with the project
Answer:
$6,779
Explanation:
Calculation to determine the incremental annual cash flow associated with the project
First step is to calculate the depreciation
Depreciation=[($64,000/6 years)-($82,000/10 years)
Depreciation=$10,667-$8,200
Depreciation=$2,467
Now let calculate the Incremental annual cash flow
Incremental annual cash flow ={($9,000-$2,467)
-[($9,000-$2,467)*34%]+$2,467}
Incremental annual cash flow =[($6,533-$2,221)+$2,467]
Incremental annual cash flow =$4,312+$2,467
Incremental annual cash flow=$6,779
Therefore the incremental annual cash flow associated with the project is $6,779
Adkins Bakery uses the modified half-month convention to calculate depreciation expense in the year an asset is purchased or sold. Adkins has a calendar year accounting period and uses the straight-line method to compute depreciation expense. On March 17, 2018, Adkins acquired equipment at a cost of $220,000. The equipment has a residual value of $43,000 and an estimated useful life of 4 years. What amount of depreciation expense will be recorded for the year ending December 31, 2018
Answer:
Depreciation expense= $36,875
Explanation:
Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.
An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:
Annual depreciation:
= (cost of assets - salvage value)/ Estimated useful life
Cost - 220,000
Residual value = 43,000
Estimated useful life = 4 years
Annual depreciation = (220,000- 43,000)/4 =44,250
Annual depreciation = 44,250.
Under the half-month convention, a full month depreciation is charged where an asset is first put to at the middle month of the month.
Thus March 17, 2018 to December 2018 is taken to be 10 full months
Depreciation expense = 44,250.× 10/12 = 36,875
Depreciation expense= $36,875
You are a struggling song writer. You hear a group on the radio singing a song
that you wrote with a friend who is now managing the band. You want to
make sure you are not cheated out of your creative work. You have tried to
talk to the band but they won't respond. What writ would effectively stop the
band from earning income on that song until the problem is remedied?
A. Punitive damages
B. A restraining order
C. A permanent injunction
D. A mandatory injunction
Answer:
B. A retraining order i guess
Suppose the economy is experiencing a recession. The output gap is hovering at −7%, causing higher than normal unemployment. Using the Fed model, complete the following passages to compare and contrast how monetary policy and fiscal policy can impact the economy. a. The Federal Reserve can reduce the to stimulate greater output and employment. The federal government can increase to help ease the recession. b. If both monetary and fiscal policy are used, the MP curve will shift , and the IS curve will shift to the . Both shifts will increase , and t
Answer:
a. The Federal Reserve can reduce the interest rates to stimulate greater output and employment. The federal government can increase government spending to help ease the recession.
The Fed can reduce interest rates by engaging in expansionary monetary policy that would then make it easier to borrow funds for investment. The Federal government can also increase spending as this will put more money into the economy to help it start moving again.
b. If both monetary and fiscal policy are used, the MP curve will shift downward, and the IS curve will shift to the right. Both shifts will increase income.
If both monetary and fiscal policy are used, companies will start producing again and hiring more people which will shift the Marginal Productivity curve downward. The IS curve will also shift to the right and both to these are indicators of an increase in income.
Select the statement that best describes money's function as a standard of deferred payment.
a. The purchasing power of a currency is relatively stable over time
b. A currency is widely accepted in exchange for goods and services and therefore makes economic transactions easier.
c. A currency can be used to express the value goods and services that are both relatively expensive and goods and services that are relatively cheap.
d. People are willing to accept a currency in the future as compensation for debts accrued earlier
Answer:
d. People are willing to accept a currency in the future as compensation for debts accrued earlier
Explanation:
Money can be used to pay your current debts at a later date since $100 will still be $100 in the future. They might lose some of its value due to inflation, but they do not spoil or rot, and will probably be accepted in the future. imagine trying to pay an old debt with rotten tomatoes or an old cow.
Suppose the elasticity of demand for tickets to Broadway shows is 2.0 for men and 0.3 for women. To use price discrimination to increase profits, the producers should charge lower prices to _____ because their demand is more _____. men; inelastic than that of women women; inelastic than that of men women; elastic than that of men men; elastic than that of women
Answer:
men; elastic than that of women
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Men have an elastic demand for tickets to Broadway shows
Women have an inelastic demand for tickets to Broadway shows
Since men have an elastic demand, if prices are reduced, the demand for tickets would increase and total profits of producers would increase
Knowledge Check 01 The standard quantity per unit defines the ________. multiple choice price that should be paid for each unit of direct materials. total cost of direct materials that should be used for each unit of finished product. amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage. amount of direct labor-hours that should be used to produce one unit of finished goods.
Answer:
amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage.
Explanation:
Standard quantity per unit is defined as materials that the manufacturer needs to complete a unit of a product. It also allows for inefficiencies such as spoilage and scrap.
It is used by managers to reduce wastage that exists during production by allocation of only the required amount of direct materials in the production process.
Jensen Automotive produces alternators for American-made cars. They generally use a static budget with the following costs based on 8,000 units per month: indirect materials, $22,000; indirect labor, $25,000; utilities, $12,000; supervision, $4,000; depreciation, $18,000. If Jensen wanted to create a flexible budget for 9,000 units, what value would they record for variable costs
Answer:
the value that should be recorded for variable cost is $66,375
Explanation:
The computation of the value that should be recorded for variable cost is shown below:
= Total variable cost ÷ budgeted units × flexible budget units
= ($22,000 + $25,000 + $12,000) ÷ 8,000 units × 9,000 units
= $59,000 ÷ 8,000 units × 9,000 units
= $66,375
hence, the value that should be recorded for variable cost is $66,375
The above formula is used
Abigail does not feel that the company is paying her enough money to live on, despite the fact that she works hard. The quality of this_____________ (lack of belongingness, motivator, lack of power, hygiene factor) will make her dissatisfied with her work, according to Frederick Herzberg.
Answer:
hygiene factor
Explanation:
Since in the question it is mentioned that Abigail was not feel that the company would not pay sufficient money accrding to her work so here the quality of the hygiene factor would dissatisfied with her work
As the attributes that are along with the job satisfaction is known as hygiene factor
So as per the given situation, the above represent the answer
The law of diminishing marginal returns: a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns b. is a mathematical theorem that can be logically proved or disproved c. is the rate at which one input may be substituted for another input in the production process d. none of the above
Answer:
d. none of the above
Explanation:
In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.
Also, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.
For example, buying a chocolate bar and eating it may satisfy your cravings but eating another one wouldn't give you as much satisfaction as the first due to diminishing marginal utility.
Short Company purchased land by paying $11,000 cash on the purchase date and agreed to pay $11,000 for each of the next six years beginning one-year from the purchase date. Short's incremental borrowing rate is 7%. On the balance sheet as of the purchase date, after the initial $11,000 payment was made, the liability reported is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Answer: $52,431.50
Explanation:
The liability reported will be the present value of the six payments of $11,000.
Since this is a constant amount, it will be an annuity:
= 11,000 * Present value interest factor of an annuity, 6 years, 7%
= 11,000 * 4.7665
= $52,431.50
Any difference between this and any options given is down to rounding errors. Pick the closest figure.
