Answer:
B. The sum of producer surplus and consumer surplus is maximized.
A trust has been established to fund scholarships in perpetuity. The next annual distribution will be $1,200, and future payments will increase by 3 percent per year. What is the value of this trust at a discount rate of 7.4 percent
Answer:
PV= $27,272.73
Explanation:
Giving the following information:
Annual distribution (Cf)= $1,200
Interest rate (i)= 7.4% = 0.074
Growth rate (g)= 3% = 0.03
To calculate the present value (PV) of the fund, we need to use the following formula:
PV= Cf / (i - g)
PV= 1,200 / (0.074 - 0.03)
PV= $27,272.73
An improvement in a country's balance of payments means a decrease in its balance of payments deficit, or an increase in its surplus. In fact we know that a surplus in a balance of payments A) is always beneficial. B) is usually beneficial. C) is never harmful. D) is sometimes harmful. E) is always harmful.
Answer:
Should be D (sometimes harmful).
You would like to have enough money saved to receive a $50,000 per year in perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8%.)
Answer:
$625,000
Explanation:
Calculation to determine How much would you need to have saved in your retirement fund to achieve this goal
Using perpetuity equation
PV=C/r
Where,
C=Perpetuity after retirement
r=Annual interest rate
Let plug in the formula
PV = (50,000/0.08)
PV= $625,000
Therefore How much would you need to have saved in your retirement fund to achieve this goal will be $625,000
A special investment project will require 5 years of planning and implementation, but will allow your firm to receive $350,000 at the end of years 6, 7, 8, 9, and 10. If the appropriate discount rate is 13%, what is the present value of those cash flows
Answer: $668,154
Explanation:
The present value would be the sum of the present values of the five cashflows.
= 350,000 / 1.13⁶ + 350,000 / 1.13⁷ + 350,000 / 1.13⁸ + 350,000 / 1.13⁹ + 350,000 / 1.13¹⁰
= $668,154.28
= $668,154
Coronado, Inc. reported net income of $2.95 million in 2022. Depreciation for the year was $188,800, accounts receivable decreased $413,000, and accounts payable decreased $330,400. Compute net cash provided by operating activities using the indirect method
Answer:
Net cash provided by operating activities $3,221,400
Explanation:
The computation of the net cash provided by operating activities using the indirect method is given below
cash provided by operating activities
Net income $2,950,000
Add: depreciation $188,800
Add: decrease in account receivable $413,000
Less: decrease in account payable -$330,400
Net cash provided by operating activities $3,221,400
Suppose that the equilibrium price and quantity for 1 bedroom apartments in Orange County is $2,000 and 250,000 respectively. What is the most likely outcome from the Orange County Board of Supervisors' implementation of a price ceiling at $2,500 for a 1 bedroom apartment
Answer: c. No effect
Explanation:
This is a non-binding price ceiling. A none-binding price ceiling is a price ceiling that is higher than the equilibrium price for a commodity in the market. As a result, there will be no effect on the market.
The reason being that a price ceiling is a price that companies and people are not meant to exceed. If this price is already higher than the equilibrium price, there would be no need to exceed or go below it it so there would be no effect.
Thomlin Company forecasts that total overhead for the current year will be $12,300,000 with 150,000 total machine hours. Year to date, the actual overhead is $8,270,500, and the actual machine hours are 97,300 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is a.$291,900 overapplied b.$291,900 underapplied c.$158,100 overapplied d.$158,100 underapplied
Answer:
b. $291,900 underapplied
Explanation:
With regards to the above information, we will calculate the predetermined overhead rate first.
Predetermined overhead rate = Estimated total overhead / Total machine hours
= $12,300,000 / 150,000
= $82 per machine hours
Total overhead = Predetermined overhead rate × Actual total machine hours
= $82 × 97,300
= $9,798,600
Then,
Overhead = Total overhead - Actual overhead
= $9,798,600 - $8,270,500
= $291,900 underapplied
Please calculate GDP using the following information: Government purchases - $200 billion Depreciation - $60 billion Investment - $80 billion Consumption - $600 billion Exports - $100 billion Imports - $120 billion Income receipts from the rest of the world - $10 billion Income payments to the rest of the world - $8 billion
Answer:
The GDP is $860 billion.
Explanation:
The gross domestic product (GDP) can be calculated using the expenditure approach formula as follows:
Y = C + I + G + (X - M) ....................................... (1)
Where:
Y = GDP = ?
C = Consumption = $600 billion
I = Investment - $80 billion
G = Government purchases = $200 billion
X = Exports = $100 billion
M = Imports = $120 billion
Substituting the values into equation (1), we have:
Y = $600 + $80 + $200 + ($100 - $120) = $860 billion
Therefore, the GDP is $860 billion.
Mahogany Inc. has an unfavorable total labor variance of $770 for the month of September. It had a favorable labor rate variance of $205. Determine the labor efficiency variance of Mahogany for the month of September. g
Answer:
$975 Unfavorable
Explanation:
Calculation to Determine the labor efficiency variance of Mahogany for the month of September
Using this formula
Labor efficiency variance=Unfavorable total labor variance + Favorable labour rate variance
Let plug in the formula
Labor efficiency variance=$770+$205
Labor efficiency variance=$975 Unfavorable
Therefore the labor efficiency variance of Mahogany for the month of September is $975 Unfavorable
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Answer: $9,800
Explanation:
Payroll taxes = Social security + Medicare +State unemployment + Federal unemployment
= (110,000 * 6%) + (110,000 * 1.5%) + (25,000 * 5.4%) + (25,000 * 0.8%)
= 6,600 + 1,650 + 1,350 + 200
= $9,800
A large company has an inspection system for the batches of small compressors purchased from vendors. A batch typically contains 15 compressors. In the
inspection system, a random sample of 5 is selected and all are tested. Suppose there are 2 faulty compressors in the batch of 15.
(a) What is the probability that for a given sample there will be 1 faulty compressor?
(b) What is the probability that inspection will discover both faulty compressors?
Solution :
Given data :
Total number compressors in a batch = 15 compressors
Number of samples to be tested = 5
Let the number of faulty compressors out of 15 compressors = 2
a) Therefore, the ways of selecting [tex]1[/tex] faulty and [tex]4[/tex] good compressor is
[tex]$=^2C_1 \times ^{13} C_4$[/tex]
The total number of ways = [tex]$^{15}C_5$[/tex]
Therefore, the probability is
[tex]$=^2C_1 \times ^{13}C_4 \times ^{15} C_5$[/tex]
[tex]=0.4761[/tex]
b). Number of ways for selecting [tex]2[/tex] faulty and [tex]3[/tex] good compressor is
[tex]$^{13}C_3[/tex]
Thus the probability
[tex]$=\frac{^{13}C_3}{^{15}C_5}$[/tex]
[tex]$=0.0952$[/tex]
If a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis the indifference curves: Group of answer choices will be straight lines with a slope of 1/2. will be straight lines with a slope of -1. will be right angles whose corners occur on a ray from the origin with a slope of 2. none of these options is correct. will be straight lines with a slope of -1/2.
Answer: will be straight lines with a slope of -1/2.
Explanation:
An indifference curve simply means the combination of two goods that can give a consumer equal satisfaction, and this makes the consumer indifferent.
It should be noted that along the curve, the consumer will have an equal preference which is for the combinations of the goods that are shown.
If a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis, then the indifference curves will be straight lines with a slope of -1/2. Here, the fact that the slope is negative
is due to the fact that the curve is downward sloping.
characteristics of a good negotiater
A firm's market-to-book ratio might be greater than 1.0 due to accounting reasons. An example of an accounting reason that would cause the market-to-book ratio to increase is
Answer: off-balance-sheet assets arising from investments in successful research and development programs that are expensed according to conservative accounting principles.
Explanation:
The market to book ratio refers to the financial valuation metric that is used in the evaluation of the current market value of a company relative to the book value of the company.
It should be noted that there'll be an increase in the market price of a company when there are investments which are made by the company in successful research and development programs which entails the use of the conservative accounting principles.
Cost-volume-profit analysis includes all of the following assumptions except:_________.
a. all units produced are sold.
b. changes in activity are the only factors that affect costs.
c. the behavior of costs is curvilinear throughout the relevant range.
d. costs can be classified accurately as either variable or fixed.
Answer:
a. all units produced are sold.
Explanation:
Cost-volume-profit analysis is also known as breakeven analysis. It is an analysis that review the point or number of units a company must sell for the revenue or sales to equate the total cost. In other words, the point the company neither makes a profit nor a loss.. The assumptions of this analysis are;
(i) The total costs are recognized as fixed and variable. Where as in reality, some costs may be semi-variable cost.
(ii) It assumes a linear relationship between costs and sales.
(iii) The selling price per unit of the product is constant.
the ness company sells $5,000,000 of five-year, 10% bonds at the start of the year. the bonds have an effective yield of 9%. present value factors are below: The amount of bond premium amortization for Year 2 is:
Answer:
The amount of bond premium amortization for Year 2 is:
= $35,421.26
Explanation:
a) Data and Calculations:
Face value of bonds = $5,000,000
Selling price of bonds = $5,194,482.56
Premium on bonds = $194,482.56
Coupon interest rate = 10%
Effective yield = 9%
Annual interest payment = $500,000 ($5,000,000 * 10%)
N (# of periods) 5
I/Y (Interest per year) 9
PMT (Periodic Payment) 500000
FV (Future Value) 5000000
Amortization Schedule
Period PV Annual PMT Interest Amortization
Year 1 $5,194,482.56 $500,000.00 $467,503.43 $32,496.57
Year 2 $5,161,985.99 $500,000.00 $464,578.74 $35,421.26
Year 3 $5,126,564.73 $500,000.00 $461,390.83 $38,609.17
Year 4 $5,087,955.56 $500,000.00 $457,916.00 $42,084.00
Year 5 $5,045,871.56 $500,000.00 $454,128.44 $45,871.56
End of Year 5 FV = $5,000,000
Results
PV = $5,194,482.56
Sum of all periodic payments $2,500,000.00
Total Interest $2,305,517.44
MC Qu. 54 Maxim manufactures a hamster food product... Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $3.60 and total fixed costs are $10,000. The hamster food can be sold as it is for $8.95 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,200 cost. The additional processing will yield 10,000 bags of Premium Green and 3,200 bags of Green Deluxe, which can be sold for $7.95 and $5.95 per bag, respectively. The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:
Answer:
Maxim
The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:
= $6,840.
Explanation:
a) Data and Calculations:
Inventory of Green Health = 10,000 bags
Production costs per bag = $3.60
Total variable costs = $36,000 (10,000 * $3.60)
Total fixed costs = $10,000
Total production costs = $46,000 ($36,000 + $10,000)
Selling price before further processing = $8.95 per bag
Total revenue from selling 10,000 bags = $89,500 (10,000 * $8.95)
Additional processing cost = $2,200
Total revenue from selling 10,000 bags of Premium Green and 3,200 bags of Green Deluxe:
Premium Green (10,000 * $7.95) = $79,500
Green Deluxe (3,200 * $5,95) = 19,040
Total revenue = $98,540
Less additional processing costs (2,200)
Net revenue from further processing $96,340
Net advantage of further processing = $6,840 ($96,340 - $89,500)
On March 14, Zest Co. accepted a 120-day, 6% note in the amount of $5,000 from AZC Co., a customer. On the due date of the note, AZC dishonors the note and fails to pay. The journal entry that Zest would make to record the failure to pay this note on the due date would include a debit to:____.
A. Notes Receivable for $5,000.
B. Accounts Receivable - AZC for $5,000.
C. Cash for $5,000.
D. Cash for $5,100.
E. Accounts Receivable - AZC for $5,100.
F. Notes Receivable for $5,100.
An important sustainability issue that has received much more scrutiny in recent years is the: focus on adequate inventory levels. reduction in packaging waste by using alternate materials. effort to move warehouse storage closer to consumers. emphasis on materials handling and warehouse design. none of the above
Answer:
reduction in packaging waste by using alternate materials.
Explanation:
An important sustainability issue that has received much more scrutiny in recent years is the reduction in packaging waste through the use of alternative materials. You can see this happening through new laws that prohibit the use of plastic bags in supermarkets and plastic drinking straws, for example.
There are several companies that seek the use of biodegradable packaging, even if these are not provided for by law. Companies seek to adopt sustainable actions in their processes to demonstrate to their stakeholders that they follow ideal standards of environmental preservation and social awareness. This is a positive type of marketing for companies, as the population is more aware and wants to consume more from environmentally responsible companies.These companies then become more valued by their consumers and consequently more competitive and well positioned in the market
On December 31, 2020, the Bennett Company had 110,000 shares of common stock issued and outstanding. On July 1, 2021, the company sold 22,000 additional shares for cash. Bennett's net income for the year ended December 31, 2021, was $630,000. During 2021, Bennett declared and paid $72,000 in cash dividends on its nonconvertible preferred stock. What is the 2021 basic earnings per share
Answer:
$4.61
Explanation:
Calculation to determine the 2021 basic earnings per share
Using this formula
2021 basic earnings per share=Net income-Cash Dividend/shares of common stock issued+(additional shares for cash*6/12)
Let plug in the formula
2021 basic earnings per share=$630,000-$72,000/110,000+(22,000*6/12)
2021 basic earnings per share=$558,000/110,000+11,000
2021 basic earnings per share=$558,000/121,000
2021 basic earnings per share=$4.61
Therefore the 2021 basic earnings per share is $4.61
The 2021 basic earnings per share is $4.61
Earnings per share = (Net Income - Preferred Dividends) / WACSO
EPS = (630,000 - 72,000) / 121,000
EPS = 558,000 / 121,000
EPS = 4.61
To compute for Weighted average common stock outstanding.
January 1, 2021 110,000 * 12/12 110,000
July 1, 2021 22,000 * 6/12 11,000
Weighted Average Common Stock outstanding 121,000
Therefore, the 2021 basic earnings per share is $4.61
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Smith Construction,Inc.just paid a $2.78 dividend.The dividend is expected to grow by 4% each year for the next three years.After that the company will never pay another dividend ever again.If your required return on the stock investment is 10%,what should the stock sell for today?
A) $7.46
B) $28.91
C) $46.33
D) $15.63
Answer:
A) $7.46
Explanation:
The computation of the stock sell for today is given below:
D1 = 2.78 × (1.04)
= 2.89
D2 = 2.89 × (1.04)
= 3.01
D3 = 3.01 × (1.04) = 3.13
Now the price of the stock is
= 2.89 ÷ (1.1) + 3.01 ÷ (1.1)^2 + 3.13 ÷ (1.1)^3
= $7.46
hence, the correct option is a.
The same should be considered and relevant
Comet Company is owned equally by Pat and his sister Pam, each of whom holds 100 shares in the company. Pam wants to reduce her ownership in the company, and it was decided that the company will redeem 50 of her shares for $1,000 per share on December 31, 20X3. Pam's income tax basis in each share is $500. Comet has total E&P of $250,000. What are the tax consequences to Pam as a result of the stock redemption?
a) $25,000 capital gain and a tax basis in each of her remaining shares of $100.
b) $50,000 dividend and a tax basis in each of her remaining shares of $50.
c) $50,000 dividend and a tax basis in each of her remaining shares of $100.
d) $25,000 capital gain and a tax basis in each of her remaining shares of $500.
Answer:
d) $25,000 capital gain and a tax basis in each of her remaining shares of $500.
Explanation:
Calculation to determine the tax consequences to Pam as a result of the stock redemption
Using this formula
Capital gain = Total amount - Tax basis
Let plug in the morning
Capital gain = (50 * $1,000) - ($500 * 50)
Capital gain = $50,000 - $25,000
Capital gain = $25,000
Since the Capital gain is $25,000 which means that The tax basis will be income tax basis in each share of $500 for the remaining 50 shares.
Therefore the the tax consequences to Pam as a result of the stock redemption will be:$25,000 capital gain and a tax basis in each of her remaining shares of $500.
Genius Professor Mullen Co. is using the Target Cost approach on a new product. Information gathered so far reveals: Expected annual sales (Market Sales) 400,000 units Desired profit per unit (DP) $0.25 Target cost (TC) $168,000 What is the Market Price (MP) per unit
Answer: $0.67 per unit
Explanation:
Find the target cost per unit:
= 168,000 / 400,000
= $0.42 per unit
If the desired profit is $0.25 and the target cost is $0.42, the market price per unit is:
= Desired profit + Target cost
= 0.25 + 0.42
= $0.67 per unit
which of the following attributes is not necessary for the information to qualify as a trade secret?
Answer:
short and long to type
Explanation:
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Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 715,000 units of basic, 420,000 units of classic, and 120,000 units of deluxe. Bricktan has limited production capacity of 90,000 hours. It can produce 10 units of basic, 8 units of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15 for the basic, $25 for the classic, and $55 for the deluxe. What is the most profitable sales mix for Bricktan Inc.? 1
A. 50,000 basic, 120,000 classic and 240,000 deluxe.
B. 75,000 basic, 420,000 classic and 120,000 deluxe.
C. 600,000 basic, 0 classic and 120,000 deluxe.
D. 71,500 basic, 420,000 classic and 240,000 deluxe.
E. 300,000 basic, 240,000 classic and 120,000 deluxe.
Answer:
B. 75,000 basic, 420,000 classic and 120,000 deluxe.
Explanation:
Products Available : Basic, Classic , Deluxe
Contribution margin per unit: $15 , $25, $55
Production units per hour : 10, 8 , 4
Contribution margin per production hour : $150 , $200 , $220
Maximum number of units to be sold: 715,000, 420,000, 120,000
Hours required to produce these units: 71,500, 52,500, 30,000
Units produced maximum sales : 75,000, 420,000, 120,000
Garden Variety Flower Shop uses 500 clay pots a month. The pots are purchased at $3 each. Annual holding costs per pot are estimated to be 25 percent of a pot's purchase price, and ordering costs are $25 per order. The manager has been using an order size of 1,500 flower pots.
a. What additional annual cost is the shop incurring by staying with this order size?
b. Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,500)?
Solution :
The data for the Garden Variety Flower shop is :
Monthly demand, d = 500 clay pots
Annual demand, D = 500 x 12
= 6000 clays
Price, p = $ 3.00 each
Annual carrying cost, h = 25% of price
[tex]$=\frac{25}{100} \times 3$[/tex]
= $0.75
Ordering cost, S = $ 25 per order
a). The optimal order quantity, EOQ
[tex]$EOQ=\sqrt{\frac{2DS}{h}}$[/tex]
[tex]$=\sqrt{\frac{2\times 6000 \times 25}{0.75}}$[/tex]
[tex]$=\sqrt{\frac{300000}{0.75}}$[/tex]
= 632.45
≈ 633
So, the optimal order quantity is 633 clay pots.
Therefore, the annual cost for optimal order quantity 633 clay pots,
[tex]$\text{Total annual cost}_1=\left(\frac{D}{Q} \times S \right) + \left(\frac{D}{2} \times h \right)$[/tex] [tex]$\text{Total annual cost}_1=\left(\frac{6000}{633} \times 25 \right) + \left(\frac{633}{2} \times 0.75 \right)$[/tex]
= 236.96 + 237.37
= 474.33
Now calculating the total annual cost for the optimal order quantity 1500 flower pots, as shown below:
[tex]$\text{Total annual cost}_2=\left(\frac{D}{Q} \times S \right) + \left(\frac{D}{2} \times h \right)$[/tex]
[tex]$\text{Total annual cost}_2=\left(\frac{6000}{1500} \times 25 \right) + \left(\frac{1500}{2} \times 0.75 \right)$[/tex]
= 100 + 562.5
= 662.5
Calculating the additional annual cost of the shipping is incurring by staying with the order size, i.e. 1500 flower pots as given below:
Extra cost = [tex]$\text{total annual cost}_2 - \text{total annual cost}_1 $[/tex]
= 662.5 - 474.3
= 188.2
So, the [tex]\text{additional annual cost}[/tex] is the shop [tex]\text{incurring}[/tex] by staying with this order size is 188.2
b). Calculating the average inventory level of the [tex]\text{optimal order quantity}[/tex] 1500 flowers plots :
Average inventory = Q/2
[tex]$=\frac{1500}{2}$[/tex]
= 750
Calculating the average percentage of the storage space :
[tex]$\text{Percentage of storage space} = \frac{\text{Extra cost}}{\text{average inventory}}\times 100$[/tex]
[tex]$=\frac{188.2}{750} \times 100$[/tex]
= 0.250 x 100
= 25 %
So, the benefit would be using the [tex]\text{optimal order quantity}[/tex] yield, i.e. 1500 flower plots is 25%.
Midsouth Stitchery wants to improve their productivity. Their process yield is currently 91.56% based on 9816 yards of material. If they are going to improve their productivity to 92.10, how many yards of finished material will they have to produce from the same amount of material input
Answer:
9,040.54 yards
Explanation:
Input material amount I = 9,816 yards
Productivity P = 92.10%
Let Output Material amount be O
O = I * P
O = 9,816 yards * 0.9210
O = 9040.536
O = 9040.54 yards
So, the unit of yards they will have to produce from the same amount of material input is 9,040.54 yards
Cosmo Company reported credit sales of $345,000 for the calendar year in its first year of operations. At December 31, customers buying on credit owed $35,000 to the company. Based on the experience of similar businesses, management estimates that $3,500 of its accounts receivable will be uncollectible.
Required:
Prepare the necessary December 31 adjusting entry by selecting the correct account names and dollar amounts
Answer and Explanation:
The journal entry is given below:
Bad debt expense $3,500
To Allowance for doubtful debts $3,500
(Being bad debt expense is recorded)
Here bad debt expense is debited as it increased the expense and credited the allowance as it decreased the assets
Following is information on two alternative investments being considered by Tiger Co. The company requires a 15% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Project X1 Project X2
Initial investment $ (98,000 ) $ (144,000 )
Expected net cash flows in:
Year 1 36,000 76,500
Year 2 46,500 66,500
Year 3 71,500 56,500
a. Compute each project's net present value.
b. Compute each project's profitability index. If the company can choose only one project, which should it choose?
Answer:
X1 NPV = $15,477.44
X2 NPV = $9,954.96
X1 PI = 1.16
X2 P2 = 1.07
X1 should be chosen
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
X1
Cash flow in year 0 = -98,000
Cash flow in year 1 = 36,000
Cash flow in year 2 = 46,500
Cash flow in year 3 = 71,500
I = 15%
NPV = 15,477.44
X2
Cash flow in year 0 = (144,000 )
Cash flow in year 1 = 76,500
Cash flow in year 2 = 66,500
Cash flow in year 3 = 56,500
I = 15%
NPV = 9954.96
profitability index = 1 + (NPV / Initial investment)
X1 - 1 + (15,477.44 / 98,000) = 1.16
X2 - 1 + (9954.96 / 144,000) = 1.07
X1 should be chosen because it has a higher NPV. this means that the project is more profitable than X2
To determine NPV using a financial calculator take the following steps:
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
Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which item would most likely not fit in the "best" stereotype scheme?
Answer:
American chocolate
Explanation:
In the field of psychology, a 'stereotype' is defined as a general belief about a certain type or category of people.
The consumers around the world have some different stereotypes about some specific countries and some specific products that they judged to be the 'best'. Such an item which does not fit best in the stereotype scheme is 'American chocolate.'
The American chocolate have a different taste than others. It is tangy and is slightly sour. It is lighter. So some people have a different perception or stereotype for this item.
Thus the answer is 'American chocolate.'
