Answer:
to identify potential problems that could impact the schedule
Explanation:
a p e x
It is important for an organization to track the process of a plan in order to identify potential problems that could impact the schedule. Hence, option C holds true.
What is planning?Planning is the most basic function of management of a business organization. It is a continuous process. Planning involves setting up the goals and objectives and the actions needed to achieve them.
Furthermore, because planning is a continuous process, it helps in identification of difficulties that may create obstacles in achievement of organizational goals.
Hence, option C holds true regarding planning.
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g Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession. Instructions: In part a, round your answers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Answer: $5 billion
Explanation:
First find the spending multiplier which is a multiplier that shows how Aggregate demand increases as a result of additional spending.
Multiplier = 1 / (1 - Marginal propensity to consume)
= 1 / ( 1 - 0.8)
= 5
If the government wants to raise Aggregate demand by $25 billion, they should spend:
Increase in AD = Amount * Multiplier
25 billion = Amount * 5
Amount = 25 / 5
= $5 billion
Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 51,000 units per month is as follows:
Direct materials $48.10
Direct labor $9.20
Variable manufacturing overhead $2.20
Fixed manufacturing overhead $19.50
Variable selling & administrative expense $4.00
Fixed selling & administrative expense $19.00
The normal selling price of the product is $108.10 per unit.
An order has been received from an overseas customer for 3,100 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.30 less per unit on this order than on normal sales.
Direct labor is a variable cost in this company.
Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1,250 units for regular customers.
The minimum acceptable price per unit for the special order is closest to: (Round your intermediate calculations to 2 decimal places.)
a. $92.10 per unit
b. $108.10 per unit
c. $69.10 per unit
d. $79.18 per unit
Answer:
See below
Explanation:
Direct material = $48.10
Direct labor = $9.20
Variable manufacturing = $2.20
Fixed manufacturing = $19.50
Variable admin expenses = $4.0
Selling price = $108.10
Profit =
Contribution per unit =
New order = $3,100 units
Direct material = $48.10
Direct labor = $9.20
Variable manufacturing = $2.20
What does ceteris paribus mean?
ОА.
other things remain unequal
OB. other things remain constant
Oc. other things remain irregular
OD. other things remain unbalanced
Ceteris paribus mean : B. other things remain constant.
What is Ceteris paribus ?Ceteris paribus was a latin word that tend to means other things remain constant or the same.
Example of Ceteris paribus is when a marketer might say "ceteris paribus, we expect sales to increase by 20% if we lower the price of our product" to show that they are assuming that all other factors affecting sales such as advertising, competition, and consumer sentiment will remain the same
Therefore the correct option is B.
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Preston Corp. is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sells for $1,100. The firm could sell, at par, $100 preferred stock which pays a 6.07 percent annual dividend, but flotation costs of 5 percent would be incurred. Preston's beta is 1.2, the risk-free rate is 3 percent, and the market risk premium is 5 percent. The firm's marginal tax rate is 40 percent. What is Preston's WACC
Perfect Patties, Inc. has several divisions. One division provides birthday parties at their facility. Each party sold provides entertainment, decorations, food, and party favors for 10 children. The bookkeeper has prepared a report comparing actual results for the month of June to budgeted results.
Perfect Parties
Birthday Party Division Analysis of Revenues and Costs
For the Month Ended June 30
Planning Budge Actual Results Variances
Number of parties 80 92
Revenue $36,000 $39,560 $3,560 F
Expenses:
Food costs 7,200 8,648 1,448 U
Party supplies 3,200 3404 204 U
Party worker wages 6,400 7,728 1,328 U
Administrative salaries 3,700 3,500 200 F
Equipment depreciation 1,200 1,200 - None
Rent 5,000 5,000 - None
Total expense 26,700 29,480 2,780 U
Net operating income $9,300 10,080 $780 F
Food costs, party supplies, and party worker wages are variable costs.
Administrative salaries, equipment depreciation and rent are fixed costs.
Prepare a new report for June using the flexible budget approach.
Answer:
Perfect Parties, Inc.
Birthday Party Division
Analysis of Revenues and Costs
For the month ended June 30
Flexible Budget Actual Results Variances
Number of parties 80 92
Revenue $41,400 $39,560 $1,840 U
Expenses:
Food costs 8,280 8,648 368 U
Party supplies 3,680 3,404 276 F
Party worker wages 7,360 7,728 368 U
Administrative salaries 3,700 3,500 200 F
Equipment depreciation 1,200 1,200 - None
Rent 5,000 5,000 - None
Total expense 29,220 29,480 260 U
Net operating income $12,180 $10,080 $2,100 U
Explanation:
a) Data and Calculations:
Birthday Party Division Analysis of Revenues and Costs
For the Month Ended June 30
Planning Budget Actual Results Variances
Number of parties 80 92
Revenue $36,000 $39,560 $3,560 F
Expenses:
Food costs 7,200 8,648 1,448 U
Party supplies 3,200 3404 204 U
Party worker wages 6,400 7,728 1,328 U
Administrative salaries 3,700 3,500 200 F
Equipment depreciation 1,200 1,200 - None
Rent 5,000 5,000 - None
Total expense 26,700 29,480 2,780 U
Net operating income $9,300 10,080 $780 F
Flexing the variable revenue and costs:
Revenue $36,000/80 * 92 = $41,400
Food costs 7,200/80 * 92 = $8,280
Party supplies 3,200/80 * 92 = $3,680
Party worker wages 6,400/80 * 92 = $7,360
You are the manager of a monopoly that faces a demand curve described by P = 63 − 5Q. Your costs are C = 10 + 3Q. The profit-maximizing output for your firm is:
Answer:
Profit-maximizing output = 6 units
Explanation:
Given:
Demand curve = P = 63 − 5Q
Cost C = 10 + 3Q
Find:
Profit-maximizing output
Computation:
In monopoly maximum profit stand where;
MR = MC
So,
TR = P x Q
TR = (63 - 5q)Q
TR = 63Q - 5Q²
MR = d(TR) / dQ
So,
MR = d[63Q - 5Q²] / dQ
MR = 63 - 10Q
MC = dC / dQ
MC = d(10+3Q) / dQ
MC = 3
So,
Profit-maximizing output
MR = MC
63 - 10Q = 3
Q = 6
Profit-maximizing output = 6 units
Q 10.7: Melbee Farms is considering purchasing a new combine that would help them finish their harvesting faster, thus allowing them to pick up extra revenue by doing custom combining for other farmers. The combine and headers cost $487,000. They expect to have net cash flows of $157,000 in year 1, $182,000 in year 2, $202,000 in year 3, and $213,000 in year 4. If they discount the cash flows by 7%, what is the discounted payback period for the combine
Answer:
Discounted payback period= 3 years 1 month
Explanation:
The discounted payback period is the estimated length of time in years it takes the present value of net cash inflow from a project to equate the net cash the initial cost
To work out the discounted payback period, we will compute present value of the cash inflow and then determine how long it will take for the sum to be equal to the initial cost. This is done as follows:
Year Cash flow DF Present value
0 487,000 × 1 = (487,000)
1 157,000 × 1.07^(-1) = 146,729.0
2 182,000 × 1.07^(-2) = 158965.8
3 202,000 × 1.07^(-3) = 164,892.2
4 213,000 × 1.07^(-4) =162,496.7
Total PV for 2 years = 146729 +158965+164892= 470587.0
Balance of cash flow remaining to equal = 487,000-470587 = 16413.0
Discounted payback period = 3 years + 16413.0 /162,496.7 × 12 months
= 3year , 1.2months
Discounted payback period= 3 years 1 month
The law of comparative advantage suggests thata.both countries would gain if Botswana traded wheat grown in Botswana for Qatar's wine.b.Qatar would not gain from trade because it has an absolute advantage in producing both goods.c.neither country would gain from trade, even if the costs for transporting the products were zero.d.both countries would gain if Botswana traded wine made in Botswana for Qatar's wheat.
Answer:
A)both countries would gain if Botswana traded wheat grown in Botswana for Qatar's wine.
Explanation:
The law of comparative advantage can be regarded as one set up by David Ricardo in the year 1817, which gives reason that is behind international trade that exist between different countries , even the business, workers as well as factories of a country have efficiency at production of every single good compare to other country.
Comparative advantage shows the ability of an economy have in production of a particular good/ service having lower opportunity cost compare to its trading partners.
Jerryworld, Inc., is looking at setting up a new manufacturing plant in Dallas to produce footballs. The company bought some land six years ago for $5.2 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.6 million. The company wants to build its new manufacturing plant on this land; the plant will cost $10.4 million to build, and the site requires $840,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Answer:
the proper cash flow amount to use as the initial investment in fixed assets is $15,840,000
Explanation:
The computation of the proper cash flow amount to use as the initial investment in fixed assets is shown below:
= (Net amount + cost of the plant + grading cost)
= ($4.6 million + $10.4 million + $0.84 million )
= $15,840,000
Hence, the proper cash flow amount to use as the initial investment in fixed assets is $15,840,000
Suppose that Nevada Co., a US-based MNC, makes regular, monthly purchases of materials from a German supplier named Spicurity. These regular payments are typically in the amount of 300,000 euros. Last month the exchange rate was $1.93 per euro. Nevada Co. only has cash reserves in dollars, while Spicurity only has cash reserves in euros. Suppose both companies use the same bank.
In order to conduct this transaction last month, Nevada Co.
Required:
a. $_____ to pay for the materials. Thus, the bank handling the transaction reduced Nevada’s account by this amount, denominated in
b. __________( euros OR dollars). The bank then converted this amount to c. ___________ d. ________________( euros OR dollars). and credited it to Spicurity’s account.
Answer:
In order to conduct this transaction last month, Nevada Co.
Required:
a. $_579,000____ to pay for the materials. Thus, the bank handling the transaction reduced Nevada’s account by this amount, denominated in
b. __dollars___( euros OR dollars). The bank then converted this amount to c. ___euros________ from d. ______dollars_____( euros OR dollars). and credited it to Spicurity’s account.
Explanation:
a) Data and Calculations:
Importer = Nevada Co., a US-based MNC
Exporter = Spicurity, a German supplier
Amount of regular payments = 300,000 euros
Exchange rate = $1.93 per euro
Amount in dollars = $579,000 (300,000 euros * $1.93)
b) To convert to dollars from euro, when the exchange rate is $1.93 per euro, we multiply the euro-based amount by the exchange rate. To convert the dollars to the euro, we divide by the exchange rate. To multiply or divide depends on which currency has a higher value (e.g. euro vs dollars).
Bad Wolf Enterprises is recalling and reissuing an outstanding bond offering. The reissued bond offering will be 10 year 5% coupon bonds. The present value of the coupons savings of the new offering is $588,365, the future value of the extra principal payment of the new offering is $350,000, and the administrative fees associated with the recall and reissue are $112,394. Calculate the net benefit ( ) or cost (-) of the call and reissue for Bad Wolf Enterprises
Answer:
Bad Wolf Enterprises
The net benefit of the call and reissue for Bad Wolf Enterprises is:
= $261,071.
Explanation:
Data and Calculations:
Bond maturity period = 10 years
Coupon rate = 5%
Present value factor at 5% for 10 years = 0.614
Present value of the coupons savings of the new offering = $588,365
Future value of the extra principal payment of the new offering = $350,000
Present value of the extra principal payment = $214,900 ($350,000 * 614)
Administrative fees associated with the recall and reissue = $112,394
Total cost = $327,294 ($214,900 + $112,394)
The net benefit of the call and reissue = Total benefits minus total costs
= $261,071 ($588,365 - $327,294)
Choose, define, and restrict a topic based on a problem or issue you might deal with in one of the following divisions of a company: a. IT b. human resources/diversity c. security d. marketing e. accounting f. health care/health risks g. energy/utilities h. animal rights i. transportation j. environment Discuss the steps you took to narrow the topic, the audience you would be writing for, and the types of questions that audience may have.
Answer:
Human resource department is the one of the most important department in any organization. It has to deal with the concerns and problems of all the employees and satisfy them positively.
Explanation:
Human resource department is the first go to department for any employee when he faces some problem related to discrimination, demotivation, stressed or low pay. It is responsibility of human resource department to solve the problems that employees are facing. They have to resolve any issues that an employee is facing and assure him that his concerns will be dealt with pure justice.
Spa Inc. gathered the following information related to its gift card sales for 2020, its first year of selling gift cards: Sales of nonrefundable gift cards, 2020$25,500 Gift card redemptions, 2020$18,360 Spa Inc. estimates that 95% of the value of gift cards sold in 2020 will be redeemed while 5% will remain unclaimed. Under the proportional method, what would Spa Inc. recognize for gift card breakage revenue in 2020
Answer: $969
Explanation:
Since 5% of the value of the gift card sold will be unclaimed, the amount claimed will be:
= $25500 - (5% × $25500)
= $25500 -(0.05 × $25500)
= $25500 - $1275
= $24225
We then find the percentage of the cards that have been redeemed already and this will be:
= $18360 / $24225
= 0.7579
= 76%
Therefore, breakage in revenue to be recognized will be:
= ($25500 × 5%) × 76%
= $1275 × 76%
= $1275 × 0.76
= $969
Presented below is information related to Pharoah Corporation for the current year. Beginning inventory $ 590,300 Purchases 1,472,500 Total goods available for sale $2,062,800 Sales revenue 2,455,000 Compute the ending inventory, assuming that (a) gross profit is 46% of sales, (b) gross profit is 60% of cost, (c) gross profit is 36% of sales, and (d) gross profit is 25% of cost.
Answer:
a. $948,888
b. $773,550
c. $1,237,680
d. $412,560
Explanation:
The Ending Inventory is calculated using the missing figure approach or the Gross Margin technique.
that is,
Ending Inventory = Cost of Goods Available for Sale - Cost of Sales
thus,
This can be clearly done by writing up a Trading Account as shown below for each scenario.
also remember,
Cost + Profit = Sales
so for those based on cost use this formula.
for example : gross profit is 60% of cost
will be : 100 % + 60 % = 160 %
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part b
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($773,550) ($1,289,250)
Gross Profit $773,550
Part c
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($1,237,680) ($825,120)
Gross Profit $1,237,680
Part d
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($412,560) ($1,650,240)
Gross Profit $412,560
Mike and Marianne pulled their resources together to open a coffee place. They each put $20,000 and also took a bank loan of $20,000. Interest rate the bank charges is 8% and estimated tax rate is 30% for their business. If they both want a 12% return on their investment, what is the weighted average cost of capital
Answer:
WACC= 9.8%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.
After-tax cost of debt = (1- tax rate) × before tax cost of debt
= (1-0.3)× 8% = 5.6%
Total Equity = 20,000× 2= 40,000.
Bank loan = 20,000
Total value fund = 40,000 + 20,000 = 60,000
WACC= 5.5%× (2/6) + 12%× (4/6) = 9.8%
WACC= 9.8%
Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.75 cup of pure semolina flour. They buy 4,000 cups of flour at $0.55 per cup. They use 3,588 cups of flour to make 4,800 biscuits. The standard cost per cup of flour is $0.54. A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance
Answer:
Results are below.
Explanation:
To calculate the direct material rate and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (0.55 - 0.54)*4,000
Direct material price variance= $40 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (0.75*4,800 - 3,588)*0.55
Direct material quantity variance= $6.6 favorable
Finally, the total variance:
Total direct material variance= 40 + 6.6= $46.6 favorable
Plymouth Company owns equipment with a cost of $600,000 and accumulated depreciation of $375,000 that can be sold for $300,000, less a 4% sales commission. Alternatively, Plymouth Company can lease the equipment for four years for a total of $320,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Plymouth Company on the equipment would total $40,000 over the four-year lease.
A. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment.
B. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?
Answer:
A. We have:
Profit from Lease Equipment (Alternative 1) = $280,000
Profit from Sell Equipment (Alternative 2) = $288,000
Differential Effects = Net gain from selling = $8,000
B. Since the net gain from selling is $8,000, Plymouth Company should sell (Alternative 2) the equipment.
Explanation:
A. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment.
Note: See the attached excel file for the differential analysis.
In the attached excel file, the following calculation is made:
Cost of Sell Equipment (Alternative 2) = Sales commission = Revenue * Sales commission percentage = $300,000 * 4% = $12,000
From attached excel file, we have:
Profit from Lease Equipment (Alternative 1) = $280,000
Profit from Sell Equipment (Alternative 2) = $288,000
Differential Effects = Net gain from selling = $8,000
B. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?
Since the net gain from selling is $8,000, Plymouth Company should sell (Alternative 2) the equipment.
The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:
20Y3
Nov. 21. Received from McKenna Outer Wear Co., on account, a $96,000, 60-day, 3% note dated November 21 in settlement of a past due account.
Dec. 31. Recorded an adjusting entry for accrued interest on the note of November 21. 20Y4
Jan. 20. Received payment of note and interest from McKenna Outer Wear Co.
Required:
Journalize the entries to record the transactions.
Answer:
1. Nov-21
Dr Notes receivable $96,000
Cr Accounts receivable-McKenna Outer Wear Co. $96,000
2. Dec-31
Dr Interest receivable $320
Cr Interest revenue $ 320
3 Jan-20
Dr Cash $96,480
Cr Note Receivable $96,000
Cr Interest receivable $160
Cr Interest receivable $320
Explanation:
Preparation of the journal entries
1. Nov-21
Dr Notes receivable $96,000
Cr Accounts receivable-McKenna Outer Wear Co. $96,000
(To record note received)
2. Dec-31
Dr Interest receivable $320
($96,000*3%*40/2/360)
Cr Interest revenue $ 320
(To record Interest accrued till Dec 31)
3 Jan-20
Dr Cash $96,480
($96,000+$160+$320)
Cr Note Receivable $96,000
Cr Interest receivable $160
($96,000*3%*20/2/360)
Cr Interest receivable $320 ($96,000*3%*40/2/360)
(To record payment received of note and interest)
Jackson Company has two service departments (S1 and S2) and two producing departments (A and B). Department S1 serves Departments S2, A, and B in the following percentages, respectively: 15%, 25%, and 60%. Department S2 serves Departments S1, A, and B in the following percentages, respectively: 0%, 70%, and 30%. Direct department costs for S1, S2, A, and B are $200,000, $16,000, $210,000, and $185,000, respectively. If Jackson uses the step method of allocating service department costs beginning with Department S1, what is the total amount of cost that will be allocated from S2 to Department A?
Answer:
The total amount of cost that will be allocated from S2 to Department A is $32,200.
Explanation:
This can be calculated as follows:
Cost allocated from Department S1 to Department S2 = Direct department costs of Department S1 * Percentage of service to Department S2 = $200,000 * 15% = $30,000
Total Direct department costs for S2 = Direct department costs for S2 + Cost allocated from Department S1 to Department S2 = $16,000 + $30,000 = $46,000
Cost allocated from Department S2 to Department SA = Total direct department costs for S2 * Percentage of service to Department A = $46,000 * 70% = $32,200
Therefore, the total amount of cost that will be allocated from S2 to Department A is $32,200.
Which is not true of strategic alliances?
Question Completion with Options:
a. Strategic alliances refer to cooperative agreements between potential or actual competitors.
b. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners.
c. Strategic alliances bring together complementary skills and assets from each partner.
d. Joint venture is not a type of strategic alliances.
Answer:
d. Joint venture is not a type of strategic alliances.
Explanation:
A Joint venture is one of the strategic alliances that companies can form. Other forms of strategic alliances include equity and nonequity strategic alliances. In the first place, a strategic alliance is a corporate arrangement that enables two or more companies to undertake some mutually beneficial projects. With the alliance, each company still retains its independence, knowledge and resources are shared, and new products and markets are developed.
Natchez, Inc. is considering the purchase of a new machine costing $200,000. The company will incur $5,000 per year in cash operating expenses but it will allow the company to earn an additional $100,000 per year in revenues. Natchez expects the machine to provide future benefits for 3 years and salvage value at the end of the 3-year period to be $10,000. The company uses straight-line depreciation method. The income tax rate is 30%. If the required rate of return is 10%, how much is the net present value of this project
Answer:
$20,138.74
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
To determine cash flow, use this formula
Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(200,000 - 10,000) / 3 = 63,333
(100,000 - 5000 - 63,333) x ( 1 - 0.3) + 63,333 = 85499.90
Cash flow in year 0 = $-200,000
Cash flow in year 1 = 85499.90
Cash flow in year 2 = 85499.90
Cash flow in year 3 = 85499.90 + 10,000 = 95,499.90
I = 10
NPV = $20,138.74
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,800 6,500 6,360 The company wants to end each month with ending finished goods inventory equal to 30% of the next month's sales. Finished goods inventory on June 30 is 1,740 units. The budgeted production units for July are:
Answer:
Production= 6,010
Explanation:
Giving the following information:
July August
Sales units 5,800 6,500
Finished goods inventory on June 30 is 1,740 units.
To calculate the production for July, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 5,800 + (6,500*0.3) - 1,740
Production= 6,010
How does a flourishing business affect trade?
Answer: Flourishing services trade could boost world growth ... it easier to export such services as business- process outsourcing, medical diagnostics or education.
Explanation: Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services.[1][need quotation to verify] Barter involves trading things without the use of money.[1] When either bartering party started to involve precious metals, these gained symbolic as well as practical importance.[citation needed] Modern traders generally negotiate through a medium of exchange, such as money
Suppose that a worker in Radioland can produce either 5 radios or 1 television per year, and a worker in Teeveeland can produce either 1 radios or 5 televisions per year. Each nation has 100 workers. Also, suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Radioland trades 50 radios to Teeveeland in exchange for 50 televisions each year, then each country's maximum consumption of new radios and televisions per year will be
Answer:
450 radios 50 televisions in radioland and 50 radios 450 televisions in Teeveeland.
Explanation:
In radioland 5 radios are equivalent to one television. Then 1 radio will be equivalent to 0.2 of television. The opportunity cost for each radio is 0.2. In teeveeland the cost of 1 radio is 5 televisions. Hence radioland has comparative advantage in producing radios and Teeveeland has comparative advantage is producing televisions.
Alexa and David are managers of different sales teams. Together, they decide to have a competition between teams to see who can bring in the most new clients this month. To increase the sense of competition, they create spirit days where they wear team colors (Alexa's team: blue, David's black), strategize ways to beat the other group, and keep a running total of who is winning on a white board. Alexa and David are employing______to increase productivity.
A. Social identity theory.
B. Parasocial interaction theory.
C. Leader-member exchange theory.
D. Vigilant interaction theory.
E. Expectancy theory.
Answer:
D. Vigilant interaction theory
Explanation:
It is correct to say that Alexa and David are employing the theory of vigilant interaction to increase productivity.
This theory is related to the team's decision-making process, that is, its objective is the integration and collaboration of the entire group with innovative and creative contributions that help in solving problems, helping in a more effective decision-making that contributes for the positive end result of the team.
Therefore, when using the strategy of increasing the sense of competition in the teams, managers seek the theory of vigilant interaction so that the final result and the goals of the teams are achieved.
Graymont Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.10 per gallon. However, because Graymont purchases a high volume of Solvate, ChemMaster grants the company a 14 percent discount off the list price. Charges for shipping Solvate from ChemMaster to Graymont's factory are $130 for a shipment of twenty-five 49-gallon drums. Special storage requirements cost $0.59 per gallon.
Calculate Graymont's standard price for a gallon of Solvate. (Round answer to 2 decimal places, e.g. 3.51)
Answer:
the standard price for a gallon of Solvate is $5,942 per gallon
Explanation:
The computation of the standard price for a gallon of Solvate is shown below:
List Price $6.1 per gallon
Less: Discount at 14% 0.854 per gallon
Charges (130 ÷ (25 × 49) 0.106 per gallon
Special Storage $0.59 per gallon
Total Cost $5.942 per gallon
Hence, the standard price for a gallon of Solvate is $5,942 per gallon
An object was thrown from rest upward with an initial velocity of 10m/s with time frame of 6s find the distance of the object from it's resting point
Answer:
5.10 m
Explanation:
Given that :
Initial Velocity, u = 10m/s
Time taken, t = 6s
Distance traveled by the object , s
The final velocity, v at this point = 0
Upward throw, g = - (negative)
Using the relation :
u² =. V²-2gs
g = 9.8 m/s
10² = 0² - 2(9.8)*S
100 = 19.6S
S = 100 / 19.6
Distance traveled = 5.10 m
Classic Limo, Inc. provides limousine service to Tri-Cities airport. The price of the service is fixed at a flat rate for each trip and most costs of providing the service are stable for each trip. Marc Pence, the owner, budgets income by estimating two factors that fluctuate with the economy: the fuel cost associated with each trip and the number of customers who will take trips. Looking at next year, Marc develops the following estimates of contribution margin (price less variable cost of the trip, including fuel) and for the estimated number of customers. Although Marc understands that it is not strictly true, he assumes that the cost of fuel and the number of customers are independent.
Contribution Margin Per
Scenario Ride (Price - Variable cost) Number of Customers
Excellent $40 10,500
Fair $25 6,000
Poor $15 4,500
In addition to the costs of a ride, Marc estimates that other service costs are $50,000 plus $5 for each customer (ride) in excess of 6,000 rides. Annual administrative and marketing costs are estimated to be $25,000 plus 10% of the contribution margin.
Required:
1) Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc.
2) 2) If you were manager of Classic Limo, Inc. and had to choose only one budget scenario to use for planning for the year, which one of the nine scenarios would you choose?
Answer:
1) See the attached excel file for the analysis of the possible operating income for Classic Limo, Inc.
2) The scenario with the highest operating profit $280,500 which is Excellent with $40 Contribution Margin and 10,500 Numbers of Customers.
Explanation:
1) Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc.
Note: See the attached excel file for the analysis of the possible operating income for Classic Limo, Inc.
2) If you were manager of Classic Limo, Inc. and had to choose only one budget scenario to use for planning for the year, which one of the nine scenarios would you choose?
The scenario that would be chosen is the scenario with the highest operating profit $280,500 which is Excellent with $40 Contribution Margin and 10,500 Numbers of Customers.
Signal mistakenly produced 1,075 defective cell phones. The phones cost $70 each to produce. A salvage company will buy the defective phones as they are for $39 each. It would cost Signal $82 per phone to rework the phones. If the phones are reworked, Signal could sell them for $146 each. Signal has excess capacity. Should Signal scrap or rework the phones
Answer: Rework the phones
Explanation:
The phones have already been produced so the cost price of $70 does not matter as it is a sunk cost.
The decision the company makes between scrap and reworking will depend on which option bring in more money.
Scrap = $39
Reworking:
= Price after reworking - Cost to rework
= 146 - 82
= $64
Incremental income of reworking over scrap:
= 1,075 * (64 - 39)
= $26,875
Signal makes an incremental income of $26,875 if they rework the phones so they should do that.
You are on a TV game show and can choose one of the following. Which would you
take?
