Answer:
a. The net change in income if the new credit terms are adopted is a net gain of $2,880.
b. Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
Explanation:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
Old sales = $144,000
New Sales = Old sales * (100% + Percentage sales increase) = $144,000 * (100% + 20%) = $172,800
Increase in Sales = New Sales - Old sales = $172,800 - $144,000 = $28,800
Increase in Profit from new sales = Profit Margin * Increase in Sales = 25% * $28,800 = $7,200
Average Accounts Receivable without discount = Average Collection Period * Average daily Sales = 120 * ($144,000 / 360) = $48,000
Average Accounts Receivable with discount = Average Collection Period * Average daily Sales = 10 * ($172,800 / 360) = $4,800
Reduction in Accounts Receivable = Average Accounts Receivable without discount - Average Accounts Receivable with discount = $48,000 - $4,800 = $43,200
Loan balance as a result of reduction in accounts receivable. Therefore, we have:
Interest Saving = Interest Rate * Loan Reduction = 10% * $43,200 = $4,320
Cost of Discount = Discount Rate * New Sales = 5% * $172,800 = $8,640
Net Gain (loss) = Increase in Profit form new sales + Interest Saving - Cost of Discount = $7,200 + $4,320 - $8,640 = $2,880
Therefore, the net change in income if the new credit terms are adopted is an net gain of $2,880.
b. Should the firm offer a discount?
Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
Joe had made an agreement with Auto Insurance Co. not to use his van for commercial business purposes when he purchased auto insurance. Joe had an accident while delivering pizzas for Bigger Pizza, Inc. For which type of violation will Joe not be covered under his insurance?
Answer:
.Concealment
Explanation:
From the question we are informed about Joe who had made an agreement with Auto Insurance Co. not to use his van for commercial business purposes when he purchased auto insurance. Joe had an accident while delivering pizzas for Bigger Pizza, Inc. the type of violation that Joe will not be covered under his insurance is Concealment.
Concealment can be regarded as omission of information during insurance process, which would definitely has effect on the issuance as well as the rate of an insurance contract. In a case whereby the insurer is unable to get access to the nondisclosed information and the
nondisclosed information is material as regards the decision-making process, nullification of the insurance contract can be carried out by the insurer.
MC Qu. 71 Benjamin Company had the following results... Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $9.95) $159,200 Direct materials and direct labor$95,200 Overhead (20% variable) 15,200 Selling and administrative expenses (all fixed) 31,900 (142,300) Operating income $16,900 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,900 units at $7.39 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $590 and selling and administrative costs by $290. Assuming Benjamin has excess capacity and accepts the offer, its profits will:
Answer:
Benjamin Company
Assuming Benjamin has excess capacity and accepts the offer, its profits will increase by:
= $3,995.
Explanation:
a) Data and Calculations:
Sales (16,000 units at $9.95) $159,200
Direct materials and direct labor $95,200
Overhead (20% variable) 15,200
Selling and administrative expenses (all fixed) 31,900
Total expenses (142,300)
Operating income $16,900
Relevant costs:
Direct materials and direct labor $95,200
Variable Overhead (20% variable) 3,040 ($15,200 * 20%)
Total expenses (98,240)
Variable cost per unit = $6.14 ($98,240/16,000)
Additional costs:
Fixed overhead 590
Selling and administrative expenses (all fixed) 290
Accepting the offer:
Revenue from offer = $28,821 (3,900 * $7.39)
Costs:
Variable cost $23,946 (3,900 * $6.14)
Additional cost:
Fixed overhead 590
Selling and
administrative expenses 290
Total costs on the offer $24,826
Increase in profits = $3,995
The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000; setup, $50,000; and materials handling, $150,000. Norton manufactures two products: Product A and Product B. The activity-based usage quantities for each product by each activity are estimated as follows:
Assembly Setup Materials Handling
Product A 5,000 dlh 60,setups 25 moves
Product B 15,000 dlh 110 setups 250 moves
Total activity- 20,000 dlh 170setups 275 moves
base usage
Determine the activity rate for the set up activity.
a. $166 per setup
b. $294 per setup
c. $1,764 per setup
d. $118 per setup
Answer:
b. $294 per setup
Explanation:
The computation of the activity rate for the setup activity is given below:
Activity Rate is
= Total Activity Cost ÷ Cost Driver
Activity Rate for Setup Activity is
= $50,000 ÷ 170
= $294 per Setup
hence, the activity rate for the setup activity is $294
Therefore the option b is correct
The inventory turnover ratio: Multiple Choice Is used to analyze collectability. Is used to measure solvency. Reveals how many times a company sells its merchandise inventory during a period. Reveals how many days a company can sell inventory if no new merchandise is purchased. Calculation depends on the company's inventory valuation method.
Answer: Reveals how many times a company sells its merchandise inventory during a period.
Explanation:
The Inventory Turnover Ratio is used to measure how often a company is able to sell off all its inventory within a single period. The higher this is, the better because it means that the company has a high sales rate and is incurring low storage costs since the inventory does not stay with them for long.
It is important to use this ratio relative to the type of industry it is being applied to however. For instance, a car dealership would be expected to have a lower inventory turnover ratio than a grocery store so comparing them using this ratio would be inaccurate.
The following data apply to Elizabeth's Electrical Equipment:
Value of operations $20,000
Short-term investments $1,000
Debt $6,000
Number of shares 300
The company plans on distributing $50 million by repurchasing stock. What will the intrinsic per share stock price be immediately after the repurchase?
Answer:
$50
Explanation:
Calculation to determine the intrinsic per share stock price be immediately after the repurchase
First step
Total Assets=Value of operations of 20,000+ Short term investments of 1000
Total Assets=$21,000
Second step
Equity =Assets - Debt
Equity= $21,000-$6,000
Equity= $15,000
Now let determine the intrinsic per share stock price
Intrinsic per share stock price=$15,000/300
Intrinsic per share stock price=$50
Therefore the Intrinsic value per share will be $50 immediately after the repurchase has occured.
The intrinsic per share stock price immediately after the repurchase would be approximately $166,716.67
How did we get the value?To determine the intrinsic per share stock price immediately after the repurchase, we need to calculate the new number of shares outstanding after the repurchase and then divide the remaining value of operations by the new number of shares.
Given data:
Value of operations: $20,000
Short-term investments: $1,000
Debt: $6,000
Number of shares: 300
First, we need to calculate the new number of shares outstanding after the repurchase. Since the company plans on distributing $50 million by repurchasing stock, we can use this information to determine the number of shares repurchased.
The value of operations ($20,000) plus the short-term investments ($1,000) minus the debt ($6,000) gives us the total equity value of the company before the repurchase:
Equity value before repurchase = Value of operations + Short-term investments - Debt
= $20,000 + $1,000 - $6,000
= $15,000
Let's assume the repurchased shares are denoted by R.
Now, we can set up an equation to represent the total equity value after the repurchase:
Equity value after repurchase = (Number of shares - R) × Intrinsic per share stock price
Given that the total equity value after the repurchase is $15,000 and the number of shares is 300, we have:
$15,000 = (300 - R) × Intrinsic per share stock price
We also know that the company plans on distributing $50 million by repurchasing stock, so we can set up another equation to represent the total value of the repurchased shares:
Total value of repurchased shares = R × Intrinsic per share stock price
Given that the total value of repurchased shares is $50 million, we have:
$50,000,000 = R × Intrinsic per share stock price
Now we can solve these two equations simultaneously to find the values of R (repurchased shares) and Intrinsic per share stock price.
We have the following system of equations:
$15,000 = (300 - R) × Intrinsic per share stock price ...(1)
$50,000,000 = R × Intrinsic per share stock price ...(2)
Divide equation (2) by Intrinsic per share stock price:
$50,000,000 / Intrinsic per share stock price = R
Substitute this value of R into equation (1):
$15,000 = (300 - ($50,000,000 / Intrinsic per share stock price)) × Intrinsic per share stock price
Simplify:
$15,000 = 300 × Intrinsic per share stock price - (50,000,000 / Intrinsic per share stock price) × Intrinsic per share stock price
$15,000 = 300 × Intrinsic per share stock price - 50,000,000
Rearrange the equation:
300 × Intrinsic per share stock price = $15,000 + $50,000,000
300 × Intrinsic per share stock price = $50,015,000
Intrinsic per share stock price = $50,015,000 / 300
Intrinsic per share stock price = $166,716.67 (rounded to two decimal places)
Therefore, the intrinsic per share stock price immediately after the repurchase would be approximately $166,716.67.
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Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.
Required:
Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.
Answer:
Sanford Co.
Bond Amortization Schedule
Period PV PMT Interest FV
1 $468,951.03 $25,000.00 $28,137.06 $472,088.09
2 $472,088.09 $25,000.00 $28,325.29 $475,413.38
Year #1 end
3 $475,413.38 $25,000.00 $28,524.80 $478,938.18
4 $478,938.18 $25,000.00 $28,736.29 $482,674.47
Year #2 end
5 $482,674.47 $25,000.00 $28,960.47 $486,634.94
6 $486,634.94 $25,000.00 $29,198.10 $490,833.04
Year #3 end
7 $490,833.04 $25,000.00 $29,449.98 $495,283.02
8 $495,283.02 $25,000.00 $29,716.98 $500,000.00
Year #4 end
Explanation:
a) Data and Calculations:
Face value of bonds = $500,000
Proceeds from bonds = $468,951
Bonds Discounts = $31.049
Coupon interest rate = 10%
Effective interest rate = 12%
N (# of periods) 8
I/Y (Interest per year) 12
PMT (Periodic Payment) 25000
FV (Future Value) 500000
Results
PV = $-468,951.03
Sum of all periodic payments $200,000.00
Total Interest $231,048.97
Tangerine, Inc. provides the following data: Surround, Inc. Comparative Balance Sheet Dec. 31, 20X9 Assets Current Assets: Cash and Cash Equivalents $29,000 Account Receivable, Net 31,000 Merchandise Inventory 53,000 Total Current Assets $113,000 Property, Plant, and Equipment, Net 120,000 Total Assets $233,000 Liabilities Current Liabilities: Accounts Payable $4000 Notes Payable 3000 Total Current Liabilities $7000 Long-term Liabilities 84,000 Total Liabilities $91,000 Stockholders' Equity Common Stock $30,000 Retained Earnings 112,000 Total Stockholders' Equity $142,000 Total Liabilities and Stockholders' Equity $233,000 Calculate the debt to equity ratio.
Answer:
The debt to equity ratio is 0.64.
Explanation:
The debt to equity ratio can be calculated using the following formula:
Debt to equity ratio = Total Liabilities / Stockholders' Equity ……………………. (1)
Where:
Total Liabilities = $91,000
Stockholders' Equity = $142,000
Substitute the relevant data into equation (1), we have:
Debt to equity ratio = $91,000 / $142,000 = 0.64
Therefore, the debt to equity ratio is 0.64.
Jasper Company has sales on account and for cash. Specifically, 61% of its sales are on account and 39% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $523,000 for April, $533,000 for May, and $558,000 for June. The beginning balance of Accounts Receivable is $304,200 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.
Answer:
Jasper Company
Budgeted CAsh Receipts:
April May June
Cash sales (39%) $203,970 $207,870 $217,620
Cash collections 304,200 360,870 325,130
Total cash receipts $508,170 $568,740 $542,750
Explanation:
a) Data and Calculations:
April May June
Forecast sales $523,000 $533,000 $558,000
Cash sales (39%) 203,970 207,870 217,620
Credit sales (61%) 360,870 325,130 340,380
Cash collections 304,200 360,870 325,130
Budgeted CAsh Receipts:
April May June
Cash sales (39%) $203,970 $207,870 $217,620
Cash collections 304,200 360,870 325,130
Total cash receipts $508,170 $568,740 $542,750
Presented below are definitions of certain terms. Select the appropriate term from the dropdown list. Definitions 1. Quantity of input required if a production process is 100% efficient. 2. Managing by focusing on large differences from standard costs. 3. Record that accumulates standard cost information. 4. Preset cost for delivering a product or service under normal conditions. a. Standard cost card b. Management by exception c. Standard cost d. Ideal standard
Answer:
1. Ideal standard
2. Management by exception
3. Standard cost card
4. Standard cost
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.
On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.
1. Ideal standard: quantity of input required if a production process is 100% efficient.
2. Management by exception: Managing by focusing on large differences from standard costs.
3. Standard cost card: record that accumulates standard cost information.
4. Standard cost: preset cost for delivering a product or service under normal conditions.
Your company buys a computer system for $3 million and pays the vendor $200,000 to install the computer system. Your company should record: A. $3.2 million as expenses. B. $2.8 million as equipment and the rest as expenses. C. $3.2 million as equipment. D. $3 million as equipment and $200,000 as expenses.
Answer:
Your company should record:
C. $3.2 million as equipment.
Explanation:
a) Data and Calculations:
Cost of computer system = $3 million
Installation cost = $200,000
Total equipment cost = $3.2 million
b) The cost of installation, which helps to bring the computer system into its intended use, forms part of the equipment cost. Therefore, to record the asset in the books of the company, the sum of $3.2 million will be recorded as equipment. There are no expenses for the equipment at this time.
Suppose real GDP is forecasted to grow by 1.881.88 %, the velocity of money has been stable, and the Fed announces an inflation target of 2.502.50 %. What is the largest money growth rate the Fed could implement and still achieve its inflation target
Answer: 4.38%
Explanation:
Use the Quantity Theory of Money to find the growth rat:
MV = PY
ΔMoney supply + ΔVelocity = ΔPrice level + ΔEconomic output or GDP
Velocity is stable so is 0.
ΔMoney supply + 0 = 2.50% + 1.88%
ΔMoney supply = 4.38%
MC Qu. 122 Walter Enterprises expects... Walter Enterprises expects its September sales to be 20% higher than its August sales of $225,000. Purchases were $175,000 in August and are expected to be $195,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 20% in the month of purchase and 80% in the following month. The beginning cash balance on September 1 is $8,400. The ending cash balance on September 30 would be:
Answer:
Ending cash balance $67,900
Explanation:
The computation of the ending cash balance is given below:
Schedule of expected cash collection for September
From august sales (70% of 225,000) 157,500
From sept. sales (30% of 270,000) 81,000
Total cash collection$238,500
Now
Schedule of expected cash payment
For august purchase (80% of 175,000) 140,000
Foor september purchase (20% of 195,000) 39,000
Total cash payment $179,000
Now
Beginning cash balance 8,400
Budgeted cash collection 238,500
Total available cash 246,900
Budgeted cash payment -179,000
Ending cash balance $67,900
41 had investments in stock funds 91 had investments in bond funds 60 had investments in money market funds 47 had investments in stock funds and bond funds 36 had investments in stock funds and money market funds 36 had investments in bond funds and money market funds 22 had investments in all three funds a. How many employees had no fund investments
Answer:
The answer is "22 and 80"
Explanation:
The important part is to understand how the Venn diagram can assist you with your numbers.
You cannot draw this one, and you can create one as follows:
the 3 sorts of funding, then make your way back thru the list
this is the figure in the center - "22 had all 3 funds"
where the four dimensions meet. In the next three statements, you'll be able to:
Work out where 2 circles connect (remember all 22 of those circles are connected).
That's because the numerals have been already placed throughout the center zone.
bond & money market solenoid valves at a ratio of [tex]36-22=14[/tex]
[tex]36-22=14[/tex] as to where the corporate market and the term deposit intersect
[tex]47-22=25[/tex] as to where equities and bonds connect You can use the top 3 statements to work out all the values in a table.
(Set of) just one circle (circle)
for stock the number is [tex]141-(22+14+25)=80[/tex]
for the bond, the number is[tex]91-(22+14+25)=30[/tex]
for the money market, the number is [tex]60-(22+14+14)=10[/tex]
(universal set) Lastly, get the number that goes into the rectangle.
[tex]\to 200-(80+30+10+25+14+14+22)=5[/tex]
[tex]a) 22\\b) 80[/tex]
The strategy underlying price discrimination is Group of answer choices to charge higher prices to customers who have good substitutes available to them and lower prices to customers without many substitutes available to them.. to charge everyone the same price but limit the quantity they are allowed to buy. to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand. to reduce per-unit cost by charging higher prices to those with the most inelastic demand and lower prices to those with the most elastic demand.
Answer:
to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.
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
Requirements to practice successful price discrimination
1. The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers
2. The firm must have different elasticities of demand for their product in different markets. the firm should charge the higher price in the market with the less elastic demand.
3. The firm must be able to segment the market for their products
4. the firm's product should have a lot of close substitutes.
Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73.08. Variable finishing costs are expected to be $6.64 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases.
Answer:
Pine Street should sell finished bookcases.
Explanation:
Differential analysis
Sell unfinished Process further Net income
Increase (decrease)
Sale price per unit 58.09 73.08 14.99
Cost per unit
Variable 37.97 44.61 -6.64
Fixed 10.12 10.12 0
Total 48.09 54.73 8.35
Net income per unit 10 18.35 8.35
So, the book cases should be sold after processed further.
Compound value solving for n) How many years will the following take? a. $ to grow to $ if invested at percent compounded annually b. $ to grow to $ if invested at percent compounded annually c. $ to grow to $ if invested at percent compounded annually d. $ to grow to $ if invested at percent compounded annually
Answer:
Note: The complete question is attached below as picture
A = P(1+r/100)^n Where A is future value, P is present value, r is rate of interest and n is time period
1. A = P(1+r/100)^n
1042.51 = 480(1.09)^n
(1042.51/480) = 1.09^n
Taking log on both sides
log(1042.51/480) = n*log 1.09
n = log(1042.51/480)/log 1.09
n = 9 years.
2. A = P(1+r/100)^n
53.26 = 31(1.07)^n
(53.26/31) = 1.07^n
Taking log on both sides
log(53.26/31) = n*log 1.07
n = log(53.26/31)/log 1.07
n = 8 years
3. A = P(1+r/100)^n
383.59 = 100(1.13)^n
(383.59/100) = 1.13^n
Taking log on both sides
log(383.59/100) = n*log 1.13
n = log(383.59/100)/log 1.13
n = 11 years.
4. A = P(1+r/100)^n
66.91 = 53(1.06)^n
(66.91/53) = 1.06^n
Taking log on both sides
log(66.91/53) = n*log 1.06
n = log(66.91/53)/log 1.06
n = 0.10121516027 / 0.025306
n = 3.9997
n = 4 years.
Kevin promises to pay Macarena, his daughter, $5,000 if she obtains her degree at Brookdale community College, where she is currently in her first year. Macarena graduates. If a Court refuses to enforce the agreement it would most likely be because:
Question Completion with Options:
A. Macarena finished college.
B. Obtaining a college degree benefits Macarena.
C. A job can be hard to find after college.
D. Macarena was already in college.
Answer:
If a Court refuses to enforce the agreement it would most likely be because:
D. Macarena was already in college.
Explanation:
Macarena was currently in her first year when the promise was made by her father. This means that Macarena is not giving any consideration for the father's promise. But, if she enters the college based on the promise and eventually graduates in the college, then the court will not likely refuse to enforce the agreement. Kevin's promise to pay Macarena $5,000 is not enforceable because of past consideration.
The financial reporting for private not-for-profit entities primarily focuses on: Multiple Choice basic information for the organization as a whole. standardization of the fund information that is reported. inherent differences of various not-for-profit entities that impact reporting presentations. distinctions between current fund and noncurrent fund presentations.
Answer: basic information for the organization as a whole.
Explanation:
Private Not-for-profit organization as the term implies, are not operating to make a profit therefore their financial statements will generally not include measures that are aimed at showing profit like profit making organizations.
They will instead focus on talking about the entire organization as whole and what it has done so far in the current period. This is what is required of them by U.S. GAAP.
Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 percent compounded annually. Calculate the effective rates and state which bank offers the lowest cost of borrowed capital.
Answer and Explanation:
The computation is given below:
For Bank A,
Effective annual rate is
= (1 + 0.10 ÷ 12)^12 - 1
= 10.47%
For Bank B,
Effective annual rate is
= (1 + 0.11 ÷ 4)^4 - 1
= 11.46%
And,
For Bank C,
Effective annual rate = 12%
Therefore, Bank A is best to borrow at lowest effective annual rate
Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can. During the month of April, 304,000 cans were produced using 1,250,000 ounces of aluminum. The actual cost of aluminum was $0.21 per ounce and the standard price was $0.12 per ounce. There are no beginning or ending inventories of aluminum. Calculate the materials price and usage variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable.
Answer:
Material Price Variance : $112,500 Unfavorable
Material Quantity Variance : 3,168 Favorable
Explanation:
Material Quantity Variance:
Standard quantity : 304,000 cans * 4.4 ounces = 1,337,600
Actual Quantity used : 1,311,200
Variance : 26,400 * $0.12 = $3,168 Favorable
Material Price Variance:
Standard Price : [Standard Price * Actual usage]
[$0.12 * 1,250,000] = $150,000
Actual Price [Actual Price * Actual Usage]
[$0.21 * 1,250,000] = $262,500
Variance : $112,500 UnFavorable
Bolka Corporation, a merchandising company, reported the following results for October: Sales $ 407,000 Cost of goods sold (all variable) $ 173,400 Total variable selling expense $ 20,400 Total fixed selling expense $ 22,200 Total variable administrative expense $ 14,800 Total fixed administrative expense $ 39,700 The contribution margin for October is: Multiple Choice $198,400 $233,600 $136,500 $345,100
Answer:
the contribution margin for October is $198,400
Explanation:
The computation of the contribution margin for October is given below:
= Sales - Cost of goods sold (all variable) - Total variable selling expense - Total variable administrative expense
= $407,000 - $173,400 - $20,400 - $14,800
= $198,400
Hence, the contribution margin for October is $198,400
Therefore the first option is correct
And, the same should be considered
Flag
Collective case studies are known as multiple-case studies, cross-case studies, comparative case studies and contrasting case studies. What is a cross-case study?
Answer:
Explanation:
Cross case studies involves the use to several individual case studies in other to support a scientific study or research with the aim of reaching a reasonable and acceptable conclusion which can be generalized and adopted for use in similar cases. Researchers usually employ the use of cross case case study in the formulation of new knowledge by collating several case studies based on the research scenario, then rigorous relationships are examined by comparing and contrasting features of the existing cases.
Suppose that an additional 350 hours per week can be obtained from the milling machines by working overtime. The incremental cost would be $2.00 per hour. What would be the allowable increase(from the excel sensitivity report) in overtime when compared to additional hours that can be obtained
Solution :
It is given that :
Additional time obtained per week from milling machines = 350
The incremental cost = $ 2 per hour
Therefore, the allowable increase for milling operation is 400.
This indicates that we can accommodate additional constraint RHS of [tex]200[/tex] hours.
Also we have to consider the impact on the profit of 2.25 which is an incremental cost of [tex]1.5[/tex] is well affordable.
Discuss various factors that must be considered on the warehouse location decisions?
Answer:
burglar proofing
Explanation:
security
A company makes wireless routers. Their profit from each sale is $86.5. Every router that is returned as faulty results in a loss of $10.5. These routers cannot be resolved and therefore are scrapped. If 2% are faulty, what is the profit(or loss) the company can expect to make from selling 96.0 units
Answer:
The expected profit is $8,117.57
Explanation:
The computation of the profit or loss that the company could expect is given below:
The Probability of non-faulty router is
= 1 - 0.02
= 0.98
Now
Expected profit/loss is
= 96 × (0.98 × 86.5 - 0.02 × 10.6)
= $8,117.57
hence, The expected profit is $8,117.57
Suppose during 2014, Cypress Semiconductor Corporation reported net cash provided by operating activities of $89,063,000, cash used in investing of $43,133,000, and cash used in financing of $7,359,000. In addition, cash spent for fixed assets during the period was $25,900,000. Average current liabilities were $257,933,000, and average total liabilities were $280,651,000. No dividends were paid.
Free cash flow equals?
Total planned expenditure (equals total output) is 14,000 when autonomous consumption expenditure is 450. When autonomous consumption expenditure falls to 400, total planned expenditure (equals total output) is 13,800. The marginal propensity to consume is _______. A) 0.89 B) 0.75 C) 0.99 D) 0.44
Answer:
The marginal propensity to consume = 0.25
Explanation:
Given:
Planned expenditure = 14,000
Consumption expenditure = 450
New consumption expenditure = 400
New planned expenditure = 13,800
Find:
The marginal propensity to consume
Computation:
The marginal propensity to consume = [Consumption expenditure - New consumption expenditure] / [Planned expenditure - New planned expenditure]
The marginal propensity to consume = [450 - 400] / [14,000 - 13,800]
The marginal propensity to consume = 50 / 200
The marginal propensity to consume = 0.25
Consider the last purchase of two goods by a consumer. A bag of chips costs $1.75 and the marginal utility is 20. A cup of chili costs $2.50. What must the marginal utility of chili be for the consumer to maximize total utility
Answer:
The marginal utility of chili must be 28.57 for the consumer to maximize total utility.
Explanation:
The marginal utility of chili at which the consumer maximizes total utility can be calculated as follows:
Let:
CCHIP = Cost of a bag of chips = $1.75
MUCHIP = Marginal utility of a bag of chips = 20
CCHILI = Cost of a cup of chili = $2.50
MUCHILI = Marginal utility of a cup of Chili = ?
The condition for the utility maximization of the consumer is as follows:
MUCHIP / CCHIP = MUCHILI / CCHILI ……………………………. (1)
Substituting all the relevant values into equation (1) and solve for MUCHILI, we have:
20 / 1.75 = MUCHILI / 2.50
(20 / 1.75) * 2.50 = MUCHILI
MUCHILI = 28.57
Therefore, the marginal utility of chili must be 28.57 for the consumer to maximize total utility.
Inventors in developing countries are usually unable to capture the full benefit of their innovations. They therefore tend to devote too few resources to research. Government can address this problem of under-investment in research by (i) increasing restrictions on trade; (ii) establishing a patent system to provide inventors with exclusive control over their inventions for a period of time; (iii) subsidising the purchase of technology from other countries.
a. only (i) is used.
b. only (ii) is used.
c. only (iii) is used.
d. (i), (ii) and (iii) are all used.
Answer:
establishing a patent system to provide inventors with exclusive control over their inventions for a period of time.this way inventors will devout a lot of resources to research.
I hope this helps and sorry if it's wrong
Red Co. recorded a right-of-use asset of $170,000 in a 10-year finance lease. Payments of $27,667 are made annually at the end of each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be
,Answer: $147,599.30
Explanation:
Lease payment = Interest component + Principal component
Year 1:
Interest = 10% * 170,000
= $17,000
Principal component = 27,667 - 17,000
= $10,667
Lease payable will drop to:
= Lease balance - Principal component
= 170,000 - 10,667
= $159,333
Year 2:
Interest = 10% * 159,333
= $15,933.30
Principal component = 27,667 - 15,933.30
= $11,733.70
Lease payable balance will drop to:
= 159,333 -11,733.70
= $147,599.30
