Answer:
the differential cost is $11.65 per pound
Explanation:
The computation of the differential cost of producing product D is shown below:
Here the differential cost of generating product B should be considered as the additional cost needed to produced i.e. $11.65 per pound
Therefore the differential cost is $11.65 per pound
So, the same should be relevant
Test Tech has preferred stock outstanding that pays an $10.85 annual dividend. It price is $125. What is the required rate of return on the preferred stock
Answer:
8.7%
Explanation:
Calculation to determine the required rate of return on the preferred stock
Using this formula
Required rate of return=Annual dividend/Price
Let plug in the formula
Required rate of return=$10.85/$125
Required rate of return=0.087*100
Required rate of return=8.7%
Therefore the required rate of return on the preferred stock is 8.7%
In an inventory control system, the annual demand is 12,000 units, the ordering cost is GHS 30 per order and the inventory holding cost is GHS 3.00 per year. The order quantity is 1000 units and the cost per unit of the item is GHS 150. What is the total cost per year?
Answer:
Total cost per year = $1,801,860
Explanation:
Given:
Annual demand = 12,000 units
Ordering cost = $30 per order
Inventory holding cost = $3 per year
Order quantity = 1000 units
Cost per unit of the item = $150
Find:
Total cost per year
Computation:
Total cost per year = Purchase cost + Order cost + Inventory holding cost
Total cost per year = [12,000 x 150] + [12,000/1000 x 30] + [1,000/2 x 3]
Total cost per year = 1,800,000 + 360 + 1500
Total cost per year = $1,801,860
Samantha Rose Inc. made a $25,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales made on credit, how much should be recorded as revenue
Answer:
$24,750
Explanation:
The computation of the amount that should be recorded is shown below"
Sales on account = $25,000
Credit term = 1/15, n/30
Sales discount rate = 1%
Now
Sales discount = Sales on account × Sales discount rate
= 25,000 × 1%
= $250
So,
Net sales = Sales- Sales discount
= $25,000 - $250
= $24,750
A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called Group of answer choices a bond indenture. a bond debenture. trading on the equity. a term bond.
Answer:
a bond indenture
Explanation:
a bond debenture can be described as the legal contract of a bond
Features of a bond debenture
Reason why the bond was created the interest rate to earned the method by which interest is calculated Maturity datescovenantsa bond indenture is a legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company
Nike has so far had $30,000,000 in losses at its shoe factory in Vietnam in 2017. The additional revenue that it will earn from producing an additional shoe is $100 while the additional cots incurred for that additional shoe is $99.99. Should Nike continue operations in that factory and produce that additional shoe
Answer: c. Yes, because the marginal revenue from producing the additional shoe is greater than the marginal costs.
Explanation:
When making financial decisions, companies abide by the principle of Sunk Costs. This means that money that has already been spent, should not have any effect on future financial decisions. The $30 million that has been lost already will therefore not be considered.
The only figures now are the additional cost and revenue. The additional revenue is more than the additional cost so this shoe should be produced because it brings in a profit of $0.01.
Suppose net exports and net capital outflow are in equilibrium in a small open economy. If foreign governments adopt expansionary fiscal policy, in the small open economy the real exchange rate ____________ and net exports ____________. g
Answer:
the small open economy the real exchange rate DEPRECIATES and net exports INCREASE.
Explanation:
If the government adopts an expansionary monetary policy, then the country's currency will depreciate since a higher interest rate will result in a lower value according to the PPP thoery. When a currency depreciates, the exports become cheaper for foreign countries, so they increase. While the imports become more expensive and they decrease.
A farmer is considering the installation of a fuel storage system that will save $0.065 per gallon because the fuel can be purchased in bulk. The farmer uses about 20,000 gallons per year. The system will cost $10,000 to install. The annual operating and maintenance cost will be nothing in the first year but will increase by $25 each year thereafter. After ten years that the system will be used it will have a salvage value of $3,000. The Farmer
The farmer's cost of funds is 12%. What is the equivalent uniform annual benefit for the fuel storage system?Based on this analysis, should the farmer purchase the fuel storage?
Answer:
yes and because yes
Explanation:
A borrows 10,000 from B and repays with 40 quarterly installments at a 4% annual effective rate. After 6 years, B sells the rights to future payments to C, at a price which yields C 6% annual effective over the remaining installment periods. What price did C pay
Answer:
$4,303.68
Explanation:
Quarterly payment = $10,000 / 32.835 (PVIFA, 1%, 40 periods) = $304.55
After 6 years, the principal due = $4,483
Present value of an annuity = payment x PVIFA = $304.55 x 14.13126 (PVIFA, 1.5%, 16 periods) = $4,303.68
The difference is not significant since the remaining payments are not many, and the increase in quarterly rate is only 0.5%
In the liquidation of a partnership, any partner who has a capital deficiency Group of answer choices has a personal debt to the partnership for the amount of the deficiency. is automatically terminated as a partner. will receive a cash distribution only on the basis of his or her income-sharing ratio. is not obligated to make up the capital deficiency.
Answer: A. has a personal debt to the partnership for the amount of the deficiency
Explanation:
Partnership is a form of business whereby two or more people come together and manage an organization together.
Capital deficiency refers to when there's a debit balance in the capital account of a partner after the allocation of gain or loss.
In the liquidation of a partnership, any partner who has a capital deficiency has a personal debt to the partnership for the amount of the deficiency.
All of the following assets require a title as proof of ownership, except: Group of answer choices Life insurance. Boat. Home. Vehicle.
Answer:
Life insurance.
Explanation:
A life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.
All of the following assets such as home, boat, vehicle require a title as proof of ownership, except a life insurance because no one person can present a proof to attest to the ownership of their life.
Simply stated, a life of an individual is abstract and as such can not be quantified or qualified by any document as a proof to be presented to another person or business entity. Thus, a life insurance cannot be used as a collateral to obtain credits or loans from a financial institution or investors.
Finisher Inc. sells merchandise of $250,000 in 2020 that includes a three-year limited warranty. Warranty costs are estimated to be 1% of sales. The company incurred actual costs of $800 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Answer: See explanation
Explanation:
a. Record the warranty accrual at the time of sale in 2020.
Debit Warranty expense = $250,000 × 1% = $2,500
Credit Warranty Liability $2,500
(To record the warranty accrual)
b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Debit Warranty Liability $800
Credit Cash and Payables $800
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January 29,000 February 40,800 March 34,600 April 36,200 Finished goods inventory at the end of December is 7,000 units. Target ending finished goods inventory is 20% of the next month's sales. How many mattresses need to be produced in January 2019?
Select one:
a. 27,800 mattresses
b. 41,800 mattresses
c. 30,160 mattresses
d. 44,160 mattresses
Answer:
c. 30,160 mattresses
Explanation:
At the beginning of January, we had 7,000 units as opening stock inventory( which was the ending inventory in December), which means out of the planned sales in January 7,000 units are already available
The balance of January sales to be produced in January is the excess of planned sales of 29,000 units over the beginning inventory of 9,000 units
January sales items to be produced in January=29000-7000
January sales items to be produced in January=22,000
Also, we need to produce 20% of February sales in January which would serve as the closing inventory
total production in January=22,000+(40,800*20%)
total production in January=. 30,160 mattresses
Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that at the optimal quantity for each firm. Furthermore, the quantity the firm produces in long-run equilibrium is the efficient scale. True or False: This indicates that there is a markup on marginal cost in the market for shirts. True
Answer:
Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that P = ATC, P>ATC, MR =MC, or MR>MC at the optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is the efficient scale. True False
This indicates that there is a markup on marginal cost in the market for shirts. True False
Explanation:
In the long run, monopolistically-competitive entities produce at a level where marginal cost and marginal revenue are equal. This makes it impossible for individual companies to sell their products at prices above the average cost. This situation means that monopolistically-competitive companies will always earn zero economic profit in the long run.
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 40 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 35 billion bottles of wine are sold every year; consumers pay $9 per bottle, and producers receive $6 per bottle (after paying the tax). The amount of the tax on a bottle of wine isper bottle. Of this amount, the burden that falls on consumers isper bottle, and the burden that falls on producers isper bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
Answer and Explanation:
The computation is shown below:
The amount of the tax for the wine bottle is
= $9 per bottle - $6 per bottle
= $3 per bottle
Before the tax, the price per bottle is $7 per bottle
The Tax burden on consumers is
= $9 - $7
= $2 per bottle
And, the tax burden on producers is
= $7 per bottle - $6 per bottle
= $1 per bottle
So, the given statement is false as the impact would remain the same whether it is for producer or consumer
Hugh is in charge of creating the value proposition for a new start-up company. In order for him to create an effective value proposition, what questions does he need to answer for a potential consumer
Answer:
Who is the target buyer for the offering, what is the offering to the buyer, why is the offering unique for the customer
Explanation:
Since in the given situation, it is mentioned that the hugh developed the value proposition for newly startup company so for developing the effective value proposition he need to answer the question for a consumer that involved about the target purchaser who is offering, the offering made to the buyer and the unique offering made to the customer
These 3 types of questions he need to answer
The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:
Direct method
Explanation:
Cash Received from Customers—Direct Method Sales reported on the income statement were $480,000. The accounts receivable balance increased $54,000 over the year. Determine the amount of cash received from customers. $fill in the blank 1
Answer:
$426000
Explanation:
Cash = sales - account receivable
480000 - 54000 = $426000
Winston Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices $40,000. $65,000. $49,000. $45,000.
Answer:
$65000
Explanation:
Below is the calculation:
To find the net cash from the operating activity, we are required to add depreciation, accounts payable and accounts receivables.
Net income of the company = $50000
Add- expenses of depreciation = 5000
Add - Increase in accounts payable = 3000
Add - Decrease in accounts receivable = $7000
Thus net cash from operating activity = 50000 + 5000 + 3000 + 7000 = $65000
A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) then-current dollars.
Answer:
The Present Worth of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year, using:
(a) constant-value dollars
= $10,518.60
(b) then-current dollars
= $10,818.65
Explanation:
a) Data and Calculations:
Cost a certain machine six years from now = $25,000
Time period = 6 years
Real interest rate = 10%
Inflation rate = 5%
Nominal interest rate = 5% (10% - 5%)
Discount factor at 10% for 6 years = 0.564
Discount factor at 5% for 6 years = 0.746
PW using:
a) Constant-value dollars = $18,650 ($25,000 * 0.746)
PW = $10,518.60 ($18,650 * 0.564)
b) Then-current dollars:
The nominal rate = 0.1 + 0.05 + (0.1 * 0.05) = 0.155
$10,818.65 ($25,000 * 0.432746)
Lakeesha bought 300 shares of stock at $48.25 per share. Her broker charges 3% commission for round lots and 4% for odd lots. Calculate the total cost of the stock purchase.
Answer:
$14909.25
Explanation:
Given :
Recall : A round lot is any number of shares that can be evenly divided by 100 while an odd lot is any number of shares between 1 and 100.
Therefore, 300 shares will be classified as a round lot.
Commission paid on round lot = 3%
Price per share = $48.25
Share price for 300 : ($48.25 * 300) = $14,475
Commission fee = 3% * 14475 = $434.25
Total cost of stock purchase :
$(14475 + 434.25)
= $14909.25
How jse reported the negative impact of the coronavirus on the economic conditions
Answer:
C
Explanation:
sorry if im wrong tried my best
The following costs were incurred in August: Direct Materials $18,000 Direct Labor $21,000 Manufacturing Overhead $33,000 Selling Expenses $14,000 Administrative Expenses $19,000 Conversion costs during the month of August totaled: a. $39,000. b. $105,000. c. $54,000. d. $51,000.
Answer:
C. $54,000
Explanation:
Given the following information,
Direct labor = $21,000
Manufacturing overhead = $33,000
Conversion cost refers to the sum of direct labor and manufacturing overhead
Conversion cost = Direct labor + Manufacturing overhead
Conversion cost = $21,000 + $33,000
Conversion cost = $54,000
Assume Peanut Butter and Jelly are two complement products. For both markets explain what happens for an increase in the Supply of Jelly to both the Peanut butter and Jelly markets.
Answer:
Complementary goods are goods that are consumed together
If the supply of Jelly increases, the supply curve for jelly shifts rightward. As a result of the rightward shift, price decreases and quantity increases.
Because jelly and peanut butter are complements, an increase in the supply leads to an increase in the supply of peanut butter.
the supply curve of peanut butter shifts outward also. As a result of the rightward shift, price decreases and quantity increases.
Explanation:
A complimentary service or product is one that is employed in connection with just another good or service. When ingested solo, the complement product is usually of little or no value. If a commodity has a positive connection with another product, it is considered complimentary.
The supply curve for jelly goes rightward as the supply of jelly increases. Price drops and quantity volume increases of the rightward shift. Because jelly and peanut butter complement one other, an increase in jelly availability leads to an increase in peanut butter supply. Peanut butter's supply curve is also shifting outward. Price decreases and quantity increases as a result of the rightward shift.
The cross-price elasticity of demand is equal to 2 and larger than 1, indicating that demand is elastic and positive since wheat and rice are complimentary items, and as the price of wheat rises, so does the demand for rice.
To know more about the complementary goods, refer to the link below:
https://brainly.com/question/1240785
The price elasticity of demand measures: Group of answer choices how responsive consumers are in the quantity they want when consumer incomes change how responsive producers are in the quantity they produce when the price changes how responsive consumers are in the quantity they want when the price changes how responsive producers are in the quantity they produce when consumer incomes change
Answer:
how responsive consumers are in the quantity they want when the price changes
Explanation:
The price elasticity of demand is
= Percentage change in quantity demanded ÷ percentage change in demand
So based on the above formula it shows that the consumers are responsive with regard to the quantity they need at the time when the price is changed
Therefore the above represent the answer
Answer:
Price
Inelastic
Elastic
Explanation:
got it right on edg
The GASB requires governments to present budgetary comparisons in their external annual financial statements (either as an additional financial statement or as schedules in required supplementary information). What does the GASB require these statements/schedules to include
Answer:
The GASB requires these statements/schedules to include:
1. budgetary comparisons for the activities that are reported in the general fund and each major special revenue fund.
2. schedules showing the original budget, the final appropriations budget, and actual inflows, outflows, and balances on a budgetary basis.
Explanation:
The purpose of GASB section 34 is to improve the financial transparency of state and local governments' fiscal reports. It also increases governmental accountability, making it possible for citizens to participate in deciding operating budgets of their states and local governments.
Find the present value of $19,000 in 11 months at 5.1% interest
Answer:
$19,886.396
Explanation:
Given :
Interest rate = 5.1% = 5.1
Principal = $19000
Period = 11 months = (11/12)year
The present value of 19000 in 11 months at 5.1% interest Can be obtained using the relation:
PV = P(1 + r)^n
PV = 19000(1 + 0.051)^(11/12)
PV = 19000(1.051)^(11/12)
PV = 19000 * 1.0466524
PV = 19886.396
Hence, the present value is $19,886.396
Theresa is considering starting a small business. She plans to purchase equipment costing $145,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $30,000 per year. A market research specialist estimates that Theresa's annual sales from the business will amount to $80,000. Theresa plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?
A) $24,000
B) $56,000
C) $80,000
D) None of these answers is correct.
Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent, respectively. The risk free rate is 1%. According to the Sharpe ratio, which fund performed better
Answer:
Explanation:
The Sharpe ratio is given by:
(Return of portfolio - risk free rate) / standard deviation.
On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $16,000. Hartford uses the units-of-output method depreciation, and the bulldozer is expected to yield 26,500 operating hours.
Required:
(a) Calculate the depreciation expense per hour of operation.
(b) The bulldozer is operated 1,250 hours in the first year, 2,755 hours in the second year, and 1,225 hours in the third year of operations. Journalize the depreciation expense for each year.
Answer:
a. Depreciation expense per hour:
= (Cost - salvage value) / Expected operating hours
= (228,000 - 16,000) / 26,500
= $8 per hour
b. First year depreciation: Second year depreciation:
= 1,250 * 8 = 2,755 * 8
= $10,000 = $22,040
Third year depreciation:
= 1,225 * 8
= $9,800
Journal entries
Date Account Title Debit Credit
June 30, Year 1 Depreciation $10,000
Accumulated Depreciation $10,000
Date Account Title Debit Credit
June 30, Year 2 Depreciation $22,040
Accumulated Depreciation $22,040
Date Account Title Debit Credit
June 30, Year 3 Depreciation $9,800
Accumulated Depreciation $9,800
Company Company A Company B Forecasted return 7% 11% Standard deviation of returns 8% 23% Beta 1 3 The market risk premium is 6% and the risk-free rate is 3%. Using Capital Asset Pricing Model (CAPM), will you invest in the companies
Answer and Explanation:
The computation is shown below:
As we know that
Required rate of return = Risk Free Rate + Beta × (Market Return -Risk Free Rate)
For company A
= 3% + 1 × 6%
= 9%
For Company B
= 3% + 3 × 6%
= 21%
As we can see that the forecast return should be lower than the required return so we should not invest in company A also the same is done in company B too
Therefore we dont invest in any of the company
