Answer:
Bramble Corp.
Unit price at which Bramble would accept the outside supplier's offer
= $14.40
Explanation:
a) Data and Calculations;
Production capacity in units = 100,000
Variable costs = $600,000
Fixed costs = 900,000
Total costs = $1,500,000
Target net income 140,000
Total revenue = $1,640,000
Alternative income (200,000)
Differential revenue $1,440,000 ($1,640,000 - $200,000)
Unit price at which Bramble would accept the outside supplier's offer =
$14.40 ($1,440,000/100,000)
What's the difference between a Monopoly and Oligopoly market?
Explanation:
The main difference between monopoly and oligopoly is in the number of firms under consideration.
In Monopoly, the market witness a situation in which one company alone dominates; in other words, this company produces goods or services without having any close competitors.
While in Oligopoly, not just one but a small group of companies act as the dominant players in the market even though they may produce slightly different products; they thus influence the market a lot reducing the chances of new competitors.
Suppose the demand function for a good is expressed as Q=100-4p. If the good currently sells for 10, what is the price elasticity equal to? a)-4 b)-1.5 c) -0.67 d) -2.5
Answer:
c)-0.67
Explanation:
Calculation to determine what the price elasticity equal to
Using this formula
Price Elasticity of Demand (PED)=dQ/dP*Q/P
Let plug in the formula
Price Elasticity of Demand (PED)=d(100-4p)/dp*p/100-4p
Price Elasticity of Demand (PED)=-4*p/100-4p
at p=$10
Price Elasticity of Demand (PED)=-4*$10/100-4($10)
Price Elasticity of Demand (PED)=-40/60
Price Elasticity of Demand (PED)=-2/3
Price Elasticity of Demand (PED)=-0.666
Price Elasticity of Demand (PED)=-0.67 Approximately
Therefore the price elasticity equal to -0.67
Custom Quilters makes decorative comforters, quilted garments, and other products in a small sewing factory. The company expects to make 2,000 comforters during the current year. With respect to the comforters, how would the supervisory salaries be classified
When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation. a. pure competition b. monopoly c. oligopoly d. monopolistic competition e. substitution
Answer:
B)monopoly
Explanation:
monopoly can be regarded as situation when company and its product dominate particular sector as well as industry. It give description of an entity which has total control as regards to a market. price elasticity of demand can be regarded as one that measure the sensitivity big the quantity demanded with its price. It should be noted that When the cross elasticity of demand between one product and all other products is low, one is generally referring to a monopoly situation
GroundTruth Ads Manager is an easy-to-use, self-serve advertising platform. Visual advertisements are integrated into text messages, applications, and mobile websites. Customers are reached based on their location. GroundTruth Ads Manager is an example of _______.
Answer:
a mobile ad
Explanation:
GroundTruth launches an ad manager which provides advertisement to its customers on its mobile phones based on the location of the customer. It is a self serving platform for advertisements and easy to operate and use.
The ad manager integrates the visual advertisements into the text messages, applications and also mobile websites and sends to the customers for advertising.
Thus the GroundTruth Ads Manager is an example of a mobile ad.
How much of the difference between the HSIF portfolio and the benchmark portfolio in the previous question is related to the asset allocation decision
The demand for a certain drug in a hospital has been increasing. For the past six months, the following demand has been observed:
Month Demand, Units
January 15
February 18
March 22
April 23
May 27
June 26
Use a three-month moving average to make a forecast for July.
Answer:
25.3
Explanation:
A moving average is often used to pinpoint the increase or decrease of a certain statistic over a certain period of time since the increase in the demand for this specific drug has been increasing constantly for the past 6 months we will take the past 3 months, April, May, and June, so we will have to add up 23+27+26=76, now we just have to divide by the number of months= 76/3=25.3, so the moving average for the increase in the forecast for July will be 25.3
Market leader in the confectionery industry, Jelly Belly, the jelly bean manufacturer, must keep coming up with new flavors. In 2011, it released its Soda Pop Shoppe collection, which was developed after company employees were asked to suggest as many potential new jelly beans tastes as they could without being criticized for any of their ideas, no matter how outlandish. What method did Jelly Belly use to come up with this new product line
Answer:
brainstorming
Explanation:
In product development different methods can be used to generate the ideas behind a product.
One of them is brainstorming which involves the use of creative ideas from different groups or people.
After ideas are obtained they are discussed, critiqued, and final selection is made.
The given scenario where Soda Pop Shoppe collection was developed after company employees were asked to suggest as many potential new jelly beans tastes as they could without being criticized for any of their ideas, no matter how outlandish. This is brainstorming
metion form of ownership represented by the SABC OF SOUTH AFRICA
Answer:
vbnjjhkhgfx
Explanation:
Vhhjjgddeszff
Elite Trailer Parks has an operating profit of $200,000. Interest expense for the year was $10,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. The tax was $61,250. The firm has 20,000 shares of common stock outstanding.
Required:
a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks.
b. What was the increase in retained earnings for the year?
Answer:
a. Earnings per share = (Operating profit - Interest expense - Tax - Preferred dividends) / Common stock outstanding
Earnings per share = ($200,000 - $10,000 - $61,250 - $18,750) / $20,000
Earnings per share = $110,000 / 20,000 Shares
Earnings per share = $5.5 per share
Common dividends per share = Dividend paid / Common stock outstanding
Common dividends per share = $30,000 / 20,000 Shares
Common dividends per share = $1.50 per share
b. What was the increase in retained earnings for the year?
Increase in retained earnings = $110,000 - Common dividend paid
Increase in retained earnings = $110,000 - $30,000
Increase in retained earnings = $80,000
So, the increase in retained earnings for the year is $80,000.
While an exporter and distributor can agree on what the distributor can add for margin on the wholesale price of goods, in agency contracts: Group of answer choices
Answer:
The correct option is e. None of the above.
Explanation:
Note: This question is not complete as the answer choices are omitted. The complete question with the answer choices is therefore provided before answering the question as follows:
While an exporter and distributor can agree on what the distributor can add for margin on the wholesale price of goods, in agency contracts: Group of answer choices
a. commissions are limited to U.S.$ 1.2 million per quarter.
d. commissions are set by the UCC.
c. the commission is whatever the agent decides it should be.
b. the commission is limited to 12 percent.
e. None of the above
The explanation of the answer is now provided as follows:
An agency contract is a legal contract that establishes a fiduciary relationship between two parties, in which the first ("the principal") recognizes that the second ("the agent" ) bind the principal to later agreements entered into by the agent as if the principal had made the subsequent agreements himself.
An agent is a third party you hire to negotiate and, if necessary, close contracts with clients on your behalf so you can keep the contract. Agents are paid a commission on the sales they make, which is commonly calculated as a percentage.
Manufacturers and exporters of goods usually engage agents to promote sales on their behalf, both in the manufacturer's own nation and abroad. A formal agreement is frequently made that specifies the commission the agent will get, as well as the territory, duration, and other parameters under which the principal and agent will conduct business.
Therefore, the commission the agent will get is usually determined by the exporter and stated in the formal agreement the agent signed with the exporter.
Therefore, the correct option is e. None of the above.
a budget is used to do which of the following
Answer:
A budget is a financial plan used to estimate future income and expenses. The budgeting process may be carried out by individuals or by organizations. Budgets help an entity determine whether it can continue to operate with its projected income and expenses.
Explanation:
thank me later
The____has sole responsibility for determining if a product or service will be added to the Procurement List and for setting the Fair Market Price
Answer:
AbilityOne Commission
Tim Armstrong was tapped to lead an integrated Yahoo!/AOL subsidiary of Verizon called Oath, and will most likely need to set a new strategic direction. Which of the four principal management functions should he focus on first?
Answer:
planning
Explanation:
The management process in any organization consists of four main and primary function that the managers of the organization needs to focus and perform. They are :
planningorganizingleadingcontrollingPlanning means to define the performance goals for the company and determining the plans and strategies in order to achieve that goal.
In the context, Tim Amstrong, who leads the integrated Yahoo!/AOL subsidiary is going to set a new strategic direction for the company. For this, he needs to focus on planning new organization goals and form new strategies to achieve them.
Thus he should focus on the planning of the four principal management functions.
the most effective use of the interim ___ is to establish cost standards and compare the actual amount with the budgeted amount for that time period
Answer:
income statement
inventory analysis (w)
Explanation:
What resource driver would you use to allocate occupancy cost to activities, and how much would you allocate to Inspect
Answer:
Cost drivers of occupancy cost:
Useful Life of Asset
Location of the asset
Lease terms
Explanation:
Cost drivers are the factors that drives the cost. Occupancy cost is the whole life cost of the asset. It is associated with the asset during its life irrespective of asset's performance. These costs include, property taxes, insurance, inspection costs, repairs and maintenance costs and likewise. These cost are allocated to the assets useful life. Some companies also use different cost drivers like location of the asset and its lease terms. These costs are charged as the part of assets cost.
The Trade Gravity Model predicts that the volume of trade between two countries increases with the product of the GDP of the two countries and inversely with distance. This prediction is most consistent with: g
Answer:
The HOS model
Explanation:
Heckscher Ohlin model is the economic model which assumes that there are two countries with two goods and two factors. These countries can trade easily in the market without any barrier. This model explains the pattern of trade of the two countries who wishes to trade the goods they produce in their home country.
It costs Waterway Company $18.00 of variable costs and $7.80 of fixed costs to produce its product that sells for $40. Carla Vista Company, a foreign buyer, offers to purchase 3100 units at $23.50 each. If the special offer is accepted and produced with unused capacity, net income will:
Answer:
Increase by $17,050
Explanation:
In our analysis, we will use the incremental revenue and cost only. That means we exclude fixed costs since they are irrelevant for this decision and are already incurred.
Analysis of effects of accepting the special order
Sales (3,100 units x $23.50) $72,850
Less Variable Costs (3,100 units x $18.00) ($55,800)
Financial Advantage / (Disadvantage) $17,050
therefore,
If the special offer is accepted and produced with unused capacity, net income will: Increase by $17,050.
Supposed you have had 10 apples. You gave 4 apples to your friend for Christmas. What portion of the initial amount did you give away? (use similar formatting to the dollar amount, strictly decimals, no other signs or characters)
Answer:
The portion of the initial amount that was given away is:
= 0.40
Explanation:
a) Data and Calculations:
Number of apples available = 10
Number of those apples given to a friend for Christmas = 4
The portion given away = 4/10 = 0.4
This represents 40% of the whole.
b) The portion given away to the friend for Christmas is a proportion of the whole. In this case, it represents just 40% of the 10 apples. This means that only 60% or 0.60 of the original apples are still available or on hand because 40% had been given away.
R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on John's salary. In addition, Ybarra must pay SUTA tax at a rate of 5.4% and FUTA tax at a rate of 0.8% on the first $7,000 of Ince's salary. Compute the total cost to Ybarra of employing Ince for the year. Round your answer to the nearest cent.
Answer: $57488.50
Explanation:
The total cost to Ybarra of employing Ince for the year will be calculated thus:
Gross Salary = $53,000
Add: Social security tax = $53000 × 6.2% = $3286
Add: Medicare tax = $53000 × 1.45% = $768.50
Add: SUTA tax = $7000 × 5.4% = $378
Add: FUTA tax = $7000 × 0.8% = $56
Total cost to Ybarra of employing Ince will be $57488.50
With the new technology, the opportunity cost of producing a chicken _____ because _____ soybeans must be forgone to produce a chicken.
The full question is:
A farm grows soybean and produces chickens. The opportunity cost of producing each of these products increases as more of it is produced.
The farm adopts a new technology which allows it to use fewer resources to produce soybean.
With the new technology, the opportunity cost of producing a chicken _____ because _____ soybeans must be forgone to produce a chicken.
Answer:
increases; more
Explanation:
Opportunity cost is the forgone alternative when a particular line of action is undertaken. For example in the given scenario more production of chicken will lead to loss of soyabean production and vice versa.
So when there is production of more chicken more opportunity cost is incurred because more of soyabean production is forgone in order to produce the chicken.
Economists consider opportunity cost seperately from the actual cost incurred in taking up a particular activity.
You are holding a stock that has a beta of 1.39 and is currently in equilibrium. The required return on the stock is 20.47%, and the expected return on the market portfolio is 16.50%. What would be the expected return on the stock if the expected market return increased to 21.00% while the risk-free rate and beta remained unchanged
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
Automation Services Co. offers its services to companies desiring to use technology to improve their operations. After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Automation Services: Fees Earned $614,500 Dividends 45,000 Rent Expense 140,000 Retained Earnings 3,250,000 Supplies Expense 18,200 Wages Expense 320,000 Miscellaneous Expense 8,700
Journalize the closing entries.
Answer and Explanation:
The journal entries are shown below:
1 Fees Earned $614,500
To Income Summary A/c $614,500
(Being the closing of revenue accounts is recorded)
2
Income Summary A/c $486,900
To Rent Expenses A/c $140,000
To Supplies Expense A/c $18,200
To Wages Expenses A/c $320,000
To Miscellaneous Expenses A/c $8,700
(Being the closing of expenses accounts is recorded)
3
Income Summary A/c $127,600 ($614,500 - $486,900)
To Retained Earnings A/c $127,600
(Being the closing of the income summary is recorded)
4
Retained Earnings A/c $45,000
To Dividends A/c $45,000
[Being the closing of the Dividend account is recorded]
Explain how the GDP and the interest rate are related to the transactions demand and asset demand for money.
Answer:
Transaction demand rises as income or GDp rises and falls as income or DP falls. Also high interest rate causes more to be left as asset, thereby reducing money demand
Explanation:
1. Asset demand for money is money that is kept aside for a person holding it to earn interest on. A high interest rate on money asset reduces the demand for money. This increased rate of interest is the opportunity cost of having money as assets. It has a negative relationship with interest rate of an economy.
2. Transaction money is that which is used for the day to day expenditure. This has a positive relationship with GDP. It increases as income or GDP increases and falls as it falls.
If you have a choice to earn simple interest on $10,000 for three years at 8% or annually compounded interest at 7.5% for three years which one will pay more and by how much
Answer:
The compound interest will yield $22.97 more than simple interest.
Explanation:
Giving the following information:
Initial investment (PV)= $10,000
Interest rate (r)= 8% simple interest
Interest rate (i)= 7.5% compound interest
Number of periods= 3 years
To calculate the future value of both options, we need to use the following formulas:
Simple interest:
FV= PV*r*t + PV
FV= 10,000*0.08*3 + 10,000
FV= $12,400
Compound interest:
FV= PV*(1 + i)^t
FV= 10,000*(1.075^3)
FV= $12,422.97
The compound interest will yield $22.97 more than simple interest.
Producers of Ocean Spray cranberry products decided to make Craisins (and dried cranberry snack food) available in convenience stores, supermarkets, and vending machines, it was involved with determining ______ strategy.
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 40,000 shares of common stock in exchange for $400,000 in cash. 2. Purchased equipment at a cost of $50,000. $15,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $98,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $170,000. The cost of the goods sold was $80,000. 5. Paid $6,000 in rent on the warehouse building for the month of March. 6. Paid $7,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018. 7. Paid $80,000 on account for the merchandise purchased in 3. 8. Collected $65,000 from customers on account. 9. Recorded depreciation expense of $2,000 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero.
Prepare a trial balance from the ending account balances.
Answer:
Wainwright Corporation
1. T-accounts:
Cash
Account Titles Debit Credit
Common stock $400,000
Equipment $15,000
Rent expense 6,000
Prepaid Insurance 7,000
Accounts Payable 80,000
Accounts Receivable 65,000
Balance $357,000
Accounts Receivable
Account Titles Debit Credit
Sales Revenue $170,000
Cash $65,000
Balance 105,000
Inventory
Account Titles Debit Credit
Accounts Payable $98,000
Cost of goods sold $80,000
Balance 18,000
Prepaid Insurance
Account Titles Debit Credit
Cash $7,000
Equipment
Account Titles Debit Credit
Cash $15,000
Notes Payable 35,000
Balance $50,000
Accumulated Depreciation
Account Titles Debit Credit
Depreciation expense $2,000
Common stock
Account Titles Debit Credit
Cash $400,000
Notes Payable
Account Titles Debit Credit
Equipment $35,000
Accounts Payable
Account Titles Debit Credit
Inventory $98,000
Cash $80,000
Balance 18,000
Sales Revenue
Account Titles Debit Credit
Accounts Receivable $170,000
Cost of goods sold
Account Titles Debit Credit
Inventory $80,000
Rent Expense
Account Titles Debit Credit
Cash $6,000
Depreciation Expense
Account Titles Debit Credit
Acc. depreciation $2,000
2. Trial Balance as at March 31, 2018
Account Titles Debit Credit
Cash $357,000
Accounts receivable 105,000
Inventory 18,000
Prepaid Insurance 7,000
Equipment 50,000
Accumulated depreciation $2,000
Common stock 400,000
Notes payable 35,000
Accounts payable 18,000
Sales revenue 170,000
Cost of goods sold 80,000
Rent Expense 6,000
Depreciation expense 2,000
Total $625,000 $625,000
Explanation:
a) Data and Analysis for the month of March 2018:
1. Cash $400,000 Common stock $400,000
2. Equipment $50,000 Cash $15,000 Notes Payable $35,000
3. Inventory $98,000 Accounts Payable $98,000
4. Accounts Receivable $170,000 Sales Revenue $170,000
4. Cost of goods sold $80,000 Inventory $80,000
5. Rent expense $6,000 Cash $6,000
6. Prepaid Insurance $7,000 Cash $7,000
7. Accounts Payable $80,000 Cash $80,000
8. Cash $65,000 Accounts Receivable $65,000
9. Depreciation expense $2,000 Accumulated Depreciation $2,000
The net present value decision rule is: When an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired.
a. True
b. False
Answer: True
Explanation:
Net present value (NPV) simply refers to the difference that is gotten between the present value of the cash inflows and that of the cash outflows over a particular period of time.
The net present value is used in investment planning and capital budgeting to determine the profitability of a project.
Therefore, the correct option is true.
ompany X and company Z are planning to merge their business into one and are seeking regulatory approval. What is the most likely reasoning X
Answer: The newly created firms is able to take advantage of economies of scale.
Explanation:
A merger is an agreement whereby two companies come together and pool their resources together in order to form one company and achieve same organizational goals.
One main reason why companies merge together is in order to achieve economies of scale. This is the reduction in cost as a result of the expansion and increase in production level.
Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded annually, what will be the value of the certificate when it matures?
Answer:
$1,586.87
Explanation:
Rate (I/Y) = 8.00%
Period (N) = 6
Amount (PV) = 1000
PMT = 80
Annual compounding type
Using the MSExcel function to solve for FV.
Future value = FV(Rate, Nper, Pmt, -Pv, 0)
Future value = FV(8%, 6, 80, 1000, 0)
Future value = $1586.87432294
Future value = $1,586.87
So, the value of the certificate when it matures will be $1,586.87.