Answer: $15 per hour
Explanation:
The marginal product of labor in this instance is the increase in total sales as a result of one additional worker being hired:
= Change in sales/ change in number of workers
= (130 - 115) / 1
= 15/1
= $15 per hour
The management of Tony Corporation is considering the purchase of a new machine costing $400,000. No residual value is expected. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information the following data is available. Year Income from Operations Net Cash Flow 1 $100,000 $180,000 2 40,000 120,000 3 20,000 100,000 4 10,000 53,000 5 10,000 71,000 The net present value for this investment is: Group of answer choices positive $55,200 positive $18,130 Negative $126,810 Negative $99,630
Answer:
positive $18,130
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
Cash flow in Year 0 = $-400,000
Cash flow in Year 1 = $180,000
Cash flow in 2 = 120,000
Cash flow in 3= 100,000
Cash flow in 4 = 53,000
Cash flow in 5 = 71,000
I = 10%
NPV = $18,130
To determine 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
Costly Corporation is considering using equity financing. Currently, the firm's stock is selling for $26.00 per share. The firm's dividend for next year is expected to be $4.90 with an annual growth rate of 8.0% thereafter indefinitely. If the firm issues new stock, the flotation costs would equal 11.0% of the stock's market value. The firm's marginal tax rate is 40%. What is the firm's cost of internal equity
Answer: 26.85%
Explanation:
Based on the information given in the question, the firm's cost of internal equity will be calculated as:
Cost of equity = (D1/Current price) + Growth rate
= (4.90 / 26.00) + 8.0%
=(4.9/26) + 0.08
=26.85%
Therefore, the firm's cost of internal equity is 26.85%.
A provision requiring a construction contractor to pay $300 for every day it is late in completing the construction contract is:
Answer:
liquidated damages provision.
Explanation:
Liquidated damages can be regarded as one that is been presented in some particular legal contracts which is an estimate of otherwise intangible to one of the party or hard-to-define losses. It can be regarded as a provision which give room for the payment of a specified sum in case there is breach of contract by one of the parties. It can be regarded as contractual provision set up so that a party in breach will need to make a payment of pre-determined amount , which serve as compensation for failure by breaching partyin performing particular obligation.
For instance, provision requiring a construction contractor to pay $300 for every day it is late in completing the construction contract is liquidated damages provision.
Of all the promotional tools we looked at, which one is the most effective in getting your attention and interesting you in a product? Conversely, which of the tools is something that has a slim to zero chance of reaching you, much less interesting you?
Answer:
There are basically four tools of promotion namely, Advertisement, public relations, sales promotions, and direct marketing.
Of these, direct marketing will be most effective in capturing my attention while public relations will be less effective to me.
Explanation:
Direct marketing involves establishing direct communication with the potential buyer. It allows for a personal relationship with the buyer. Media such as telemarketing, direct mails, and face-to-face marketing are used to sell the goods. I will be easily convinced because I can easily relate with the person selling the goods and ask questions about the product.
Public relations refers to ways the company formally promotes its image to maintain its customer base. Press release is a measure employed by these companies. I will not be captivated by this because of the formality involved. I believe that through these measures, the company only lets out information they will like you t know.
Cioffi Manufacturing Company incorporates standards in its accounts and identifies variances at the time the manufacturing costs are incurred. Journalize the entries to record the following transactions:
a. Purchased 2,450 units of copper tubing on account at $52.00 per unit. The standard price is $48.50 per unit.
b. Used 1,900 units of copper tubing in the process of manufacturing 200 air conditioners.
Answer:
A. Dr Materials $18,825
Dr Direct Materials Price Variance $8,575
Cr Accounts Payable $127,400
B. Dr Work in Process $97,000
Cr Direct Materials Quantity Variance $4,850
Cr Material 92,150
Explanation:
Preparation of the journal entries
A. Dr Materials $18,825
(2,450*$48.50 per unit)
Dr Direct Materials Price Variance $8,575
[2,450*($52.00 per unit-$48.50 per unit)]
Cr Accounts Payable $127,400
(2,450*$52.00 per unit)
B. Dr Work in Process $97,000
(200*10 units *$48.50)
Cr Direct Materials Quantity Variance $4,850
(2,000 units – 1,900 units) × $48.50
Cr Material 92,150
(1,900 × $48.50 )
If autonomous consumption increases by $50 billion and the MPC is 0.95, the resulting change in total spending equals__________________ billion, assuming that idle resources exist at each expenditure round and the multiplier is operative.
Answer: $1,000 billion
Explanation:
The change in total spending is calculated by:
= Autonomous consumption increase * Multiplier
Multiplier:
= 1 / (1 - MPC)
= 1 / (1 - 0.95)
= 1 / 0.05
= 20
Change in total spending:
= 50 billion * 20
= $1,000 billion
If there are 360 million people living in the U.S, but 1 million died of health issues leaving 289 million eligible workers, what is the unemployment rate if 170 million are in the labor force and 7 million are actively seeking work?
Answer: 4.12%
Explanation:
Unemployment rate only includes people who are actively looking for work and no discouraged workers or those who have retired:
Unemployment rate = Number of unemployed looking for work / Labor force
= 7,000,000 / 170,000,000
= 4.12%
A firm has net working capital of $560, net fixed assets of $2,306, sales of $6,700, and current liabilities of $870. How many dollars worth of sales are generated from every $1 in total assets?
a. $1.70.
b. $2.52.
c. $1.63.
d. $1.87.
e. $2.09.
Answer:
1.79
Explanation:
Net working capital is $560
Net fixed assets is $2,306
Sales is $6,700
Liabilities is $870
Therefore the amount of dollar wort sales generated in every $1 can be calculated as follows
= 560+870
= 1,430
6700/1430+2,306
= 6700/3736
= 1.79×1
= 1.79
who is the first lady president in the world
Answer:
Isabel Martínez de Perón
Explanation:
Isabel Martinez de Perón of Argentina was the very first woman or lady to serve as leader of a country as president, taking over as vice president following her husband died in 1974.
On July 21, 1960, Sirimavo Bandaranaike was chosen as the world's first women Prime Minister.
Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 10,000 $17,000 February 8,000 13,500 March 9,000 14,400 April 7,000 12,500 Compute the variable and fixed cost elements using the high-low method. (Round variable cost to 2 decimal places, e.g. 15.25.)
Answer:
Results are below.
Explanation:
Giving the following information:
Miles Driven Total Cost
January 10,000 $17,000
February 8,000 13,500
March 9,000 14,400
April 7,000 12,500
To calculate the variable cost per unit and the total fixed cost, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (17,000 - 12,500) / (10,000 - 7,000)
Variable cost per unit= $1.5
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 17,000 - (1.5*10,000)
Fixed costs= $2,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 12,500 - (1.5*7,000)
Fixed costs= $2,000
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 46,000 units per month is as follows:
Per Unit Direct materials $45.60
Direct labor $8.70
Variable manufacturing overhead $1.70
Fixed manufacturing overhead $18.50
Variable selling & administrative expense $3.00
Fixed selling & administrative expense $14.00
The normal selling price of the product is $98.10 per unit.
An order has been received from an overseas customer for 2,600 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 $1.80 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 1,000 units for regular customers. The minimum acceptable price per unit for the special order is closest to: __________
Answer:
Ash Corporation
The minimum acceptable price per unit for the special order is closest to:
= $94.93.
Explanation:
a) Data and Calculations:
Normal production capacity per month = 46,000 units
Per Unit
Direct materials $45.60
Direct labor $8.70
Variable manufacturing overhead $1.70
Fixed manufacturing overhead $18.50
Variable selling & administrative expense $3.00
Fixed selling & administrative expense $14.00
The normal selling price of the product = $98.10 per unit.
Special order = 2,600 units
Relevant costs:
Direct materials $45.60
Direct labor $8.70
Variable manufacturing overhead $1.70
Variable selling & administrative expense $1.20
Total relevant costs per unit $57.20
Total variable cost for the special order = $148,720 ($57.20 * 2,600)
Loss sales revenue (1,000 * $98.10) 98,100
Total cost for the special order = $246,820
Minimum acceptable price per unit = $94.93 ($246,820/2,600)
Galaxy Air, previously a no-growth firm, has two million shares outstanding. Until now, it consistently earned $20 million per year on its assets. (It has no debt and pays out all earnings as dividends. Its cost of capital is 10 percent.) Due to its newly appointed CEO, Galaxy Air is now able to squeeze out 1 percent annual growth by plowing back 5 percent of earnings. Calculate its stock price per share
Answer: $106.61
Explanation:
The following can be deduced from the information given:
Net Income = $20
Weighted Average no. of shares = 2
Earning per share (EPS) = $20/2 = $10
DPS =(100% - 5%) of EPS
= 95% × $10 = $9.5
Growth Rate (g) = 1%
Cost of equity (Ke) = 10%
DPS1 = [9.5 × (1+0.01)] = 9.595
Price of Stock will now be
= Po = DPS1/(Ke-g)
= 9.595/(0.10-0.01)
= 106.61
Gross Domestic Product is a ________measurement of standard of living because ________.
a. imperfect; not all important determinants of standard of living are incorporated
b. imperfect; all important determinants of standard of living are incorporated
c. perfect; all important determinants of standard of living are incorporated
d. perfect; not all important determinants of standard of living are incorporate
Answer: A. imperfect; not all important determinants of standard of living are incorporated.
Explanation:
The gross domestic product refers to the monetary value of the goods and the services which are produced in a nation.
Gross Domestic Product is an imperfect measurement as it excludes non-market transactions such as the activities of mothers etc. Also, it doesn't account for income inequality in the society. Therefore, not all the important determinants of standard of living are incorporated.
The Avengers movie, produced by a subsidiary of Disney Studios, sold seven billion yuan worth of tickets in China in its first month of distribution. In terms of the National Income and Product Accounts, this represents:
A. An import of Chinese capital.
B. A demand for yuan on the foreign exchange markets
C. Lost employment for U.S. movie theaters.
D. An export of U.S. services.
Answer:
D. An export of U.S. services.
Explanation:
Since the avengers movie generated the subsidiary of Disney Studios that sold the 7 billion yuan worth tickets in china at the time of first month
so here the national income and the accounts related to the product shows the export of the united states services as the services are provided from one country to another due to this they sold 7 billion yuan tickets
Therefore the option d is correct
A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimated at $600 million. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accountants in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridge project
Answer:
$18.20 million
Explanation:
Net present value = Initial cost + (Annual cost/3%)
Net present value = $600 million + $200,000/3%
Net present value = $600 million + $6.67 million
Net present value = $606.67 million
Annualized cost = Net present value * 3%
Annualized cost = $606.67 million * 3%
Annualized cost = $18.20 million
So, the annualized cost of the bridge project is $18.20 million.
Garcia Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. Cash proceeds exceed the sum of the fair value of the warrants and the face amount of the bonds. This excess is reported as:
Answer:
Discount on bond payable
Explanation:
since in the question it is mentioned that the company has issued the common stock warrants also the cash proceeds is more than the sum of the fair value + face value
So we presume that the bond are to be sold at the discount
Therefore the excess should be reported as the discount on bond payable
If a firm has a market beta of 0.9. is subject to an income tax rate of 35 percent, has a risk-free rate of 6 percent, a market risk premium of 7 percent, and has a market value of debt to market value of equity ratio of 60 percent, what does the market expect the firm to generate in terms of equity returns using CAPM?
a) 12.3%
b) 7%
c) 6%
d) 13%
Answer:
A
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
risk free + (beta x market premium)
6 + (0.9 X 7) = 12.3%
Suppose firm X just paid its annual dividend of $2.00 per share. You expect that the firm will continue to pay $2.00 per share (per year) for the next 10 years (times t=1 through 10), after which point you expect that the annual dividend per share will grow by 12% every year thereafter (forever). If the required rate of return is 15%, what is the current price per share?
Answer:
Current price per share = $10.54
Explanation:
Note: See the attached file for the calculation of present values (PV) for year 1 to 10 dividends.
From the attached excel file, we have:
Total of dividends from year 1 to year 10 = $10.0375372517085
Year 10 dividend = $0.494369412243732
Therefore, we have:
Year 11 dividend = Year 10 dividend * (100% + Dividend growth rate after year 10) = $0.494369412243732 * (100% + 12%) = $0.55369374171298
Share price at year 10 = Year 11 dividend / (Required return rate - Dividend growth rate after year 10) = $0.55369374171298 / (15% + 12%) = $2.05071756189993
PV of share price at year 10 = Share price at year 10 / (100% + Required return rate)^Number of years = $2.05071756189993 / (100% + 15%)^10 = $0.506906017877183
Therefore, we have:
Current price per share = Total of dividends from year 1 to year 10 + PV of share price at year 10 = $10.0375372517085 + $0.506906017877183 = $10.54
The quantity of money demanded is the Group of answer choices income and volume of profits that people and businesses would like to receive. average daily volume of bank account withdrawals. amount that people and businesses choose to hold. fraction of cash holdings in an average investment portfolio.
Answer:
The amount that people and businesses choose to hold.
Explanation:
The amount that people and businesses choose to hold.
The total demand for money is the total amount of money that people wants to hold and there are three main reasons for which money is being held. First is transactions related reason, second is the precautionary reason, and third is the speculative reason. The above three reasons push the people to hold the money that becomes the total demand for money.
Project Risk Analysis and IdentificationInitial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.Also, provide a graduate-level response to each of the following questions:
1. Explain each of the following steps in risk evaluation and remediation.
Risk identification.
Risk evaluation for chance of occurrence.
Risk evaluation for impact if the risk takes place.
The four types of risk remediation.
What is a project risk owner.
What is a risk threshold.
What is a risk matrix.
2. Complete a risk analysis for a project involving a family vacation where a family of four is driving 1,000 miles one way to Myrtle Beach, SC to stay for one week at a coastal resort. Include the construction of a risk matrix.
Answer:
Checklists.
Lessons Learned.
Subject Matter Experts.
Documentation Review.
SWOT Analysis.
Brainstorming.
Delphi Technique.
Assumptions Analysis.
A new kind of smartphone is selling for $500. The first cell phone costs $300 to produce, and each subsequent phone costs $325 to produce. What is the producer surplus for this market when selling four cell phones at this rate
Answer:The profit is $740
Explanation:4(500)-[3(320)+300]
4x500=2000
3x320=960+320=1260
2000-1260=$740
Information technology has been used to improve both internaland external access and sharing of information. Three main kinds ofinformation technology allow access and sharing of informationinternally among employees: executive information systems,intranets, and portals.
For each description in the following table, identify thecorresponding information technology.
Description Executive Information System Intranet Corporate Portal
1. Helps managers monitor and analyze organizationalperformance
2. A hybrid system that uses a web address to give employeesaccess to customized information and specialized transactions
3. An internal company network that provides employees witheasy access to information
Answer:
1. Executive Information System (EIS).
2. Corporate Portal.
3. Intranet.
Explanation:
Information technology (IT) can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products.
An information technology (IT) interacts with its environment by receiving data in its raw forms and information in a usable format.
Information technology (IT) has significantly helped to improve both internal and external access and sharing of information between two or more business firms and individuals. Basically, there are three (3) main kinds of information technology (IT) which allow informations to be accessed and shared internally among employees; executive information systems (EIS), intranets, and portals.
1. Executive Information System (EIS): it assist managers working in an organization to monitor and analyze organizational performance. An Executive information system is also referred to as an Executive support system and it can be defined as a management support system that enhances and supports all of the senior executive information and decision-making process.
2. Corporate Portal: it's a hybrid system that uses a web address (uniform resource locator-URL) to give employees access to customized information and specialized transactions with respect to an organization.
3. Intranet: it's an internal company network which is private and provides employees with easy access to information.
Sheridan Industries reported actual sales of $2,125,000 and fixed costs of $562,275. The contribution margin ratio is 30%. Compute the margin of safety in dollars and the margin of safety ratio. (Round margin of safety ratio to 1 decimal place, e.g. 52.7.)
Answer:
Margin of safety $250,750
Margin of safety ratio 11.8%
Explanation:
Computation for the margin of safety in dollars and the margin of safety ratio
First step is calculate the Break even point in dollars
Break even point in dollars = Fixed costs / Contribution margin ratio
Break even point in dollars=$562,275/0.30
Break even point in dollars = $1,874,250
Now let determine the the margin of safety in dollars and the margin of safety ratio
Margin of safety = Actual Sales - Break even sales
Margin of safety= $2,125,000 -$1,874,250
Margin of safety=$250,750
Margin of safety ratio= Margin of safety/Actual Sales
Margin of safety ratio = $250,750/$2,125,000
Margin of safety ratio = 0.118*100
Margin of safety ratio = 11.8%
Thereforethe margin of safety in dollars and the margin of safety ratio will be:
Margin of safety $250,750
Margin of safety ratio 11.8%
Conoly Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent and at 24 percent? Year 1, 2, 3, and 4 Cash Flow $1,200, 600, 855 and 1,480 respectively
Answer:
Present Value when discount rate is 10% = $3240.01
Present Value when discount rate is 24% = $2432.40
Present Value when discount rate is 18% = $2,731.61
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = $1,200
Cash flow in year 2 = 600
Cash flow in year 3 = 855
Cash flow in year 4 = 1,480
Present Value when discount rate is 10% = $3240.01
Present Value when discount rate is 24% = $2432.40
Present Value when discount rate is 18% = $2,731.61
To find the PV 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
Corporation sold 210000 watches and produced 217000 watches that it sold for $19 each. The company determined that fixed manufacturing cost per unit was $8 per watch. The company reported a $1,302,000 gross margin on its financial statements. Determine the total contribution margin.
Answer:
The total contribution margin is:
= $2,982,000.
Explanation:
a) Data and Calculations:
Production units = 217,000 watches
Sales units = 210,000 watches
Sales price per watch = $19
Sales revenue = $3,990,000 (210,000 * $19)
Cost of goods sold 2,688,000 ($3,990,000 - $1,302,000) ($12.80 each)
Gross profit = $1,302,000
Cost of goods sold per unit = $12.80 ($2,688,000/210,000)
Fixed cost per unit = $8
Variable cost per unit = $4.80 ($12.80 - $8.00)
Contribution margin per unit = $14.20
Total contribution margin = $2,982,000 ($14.20 * 210,000)
On January 1, 20X1 when the effective interest rate was 14%, a company issued bonds with a maturity value of $1,000,000. The stated rate of interest is 12%, the bonds pay interest semi-annually and sold for $893,640. The amount of bond discount amortized on July 1, 20X1 is approximately:__________.
Answer: $2,555
Explanation:
Bond discount amortization = Interest cost - Coupon payment
Coupon payment = Stated interest * Par value
= 12% * 1,000,000 * 6/12 months
= $60,000
Interest cost = Issue price * effective interest
= 893,640 * 14% * 6/12
= $62,554.80
Amortized amount:
= 62,554.80 - 60,000
= $2,554.80
= $2,555
Depreciation by Units-of-activity Method A diesel-powered tractor with a cost of $259,000 and an estimated residual value of $7,400 is expected to have a useful operating life of 85,000 hours. During April, the tractor was operated 200 hours. Determine the depreciation for the month. If required, carry out any division to two decimal places.
Answer:
the depreciation expense is $592
Explanation:
The computation of the depreciation expense is shown below:
= (cost - residual value) ÷ useful operating life × operated in april month
= ($259,000 - $7,400) ÷ 85,000 hours × 200 hours
= $592
Hence, the depreciation expense is $592
The same should be considered and relevant too
Stock Z is trading at $50 today. In one year, the value will go either up to $62.50 or down to $40. A call option on Z with exactly one year to expiration has a strike price of $55. Inflation is high, so the interest rate is 10% per year. Find the delta of the call option using binomial approach. a. 0.25 b. 0.67 c. 1.05 d. 0.33
Answer:
0.33
Explanation:
Delta = (Cu – Cd)/(Su – Sd)Cu
= 62.50 – 55 = 7.50
Cd = 0
Delta = (7.50 – 0)/(62.50 – 40)
= 0.33
Outstanding Stock Lars Corporation shows the following information in the stockholders' equity section of its balance sheet: The par value of common stock is $5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? fill in the blank 1 shares
Answer:
32,000 shares
Explanation:
Note that the value of the treasury stock is usually deducted from the total stockholders' equity which means that in a bid to ascertain the number of shares outstanding we need to deduct the number of shares held in treasury stock.
The number of shares without treasury stock=common stock account balance/par value per share
The number of shares without treasury stock=$225,000/$5
The number of shares without treasury stock=45,000 shares
The number of shares considering treasury stock=45,000-13,000
The number of shares considering treasury stock=32,000
Alpha Company, a business firm based in California, advertises its products on the Web to customers in all 50 states. In which of the following cases would a court in New Jersey be MOST LIKELY to exercise personal jurisdiction over Alpha under its long arm jurisdiction state (and U.S. constitutional law)?
a. Alpha only advertised without interactivity at its Web site.
b. Alpha conducted substantial business with New Jersey residents through its Web site.
c. Alpha interacted with New Jersey residents through its Web site.
d. None of the other answers describe proper grounds for personal jurisdiction in New Jersey.
Answer:
b. Alpha conducted substantial business with New Jersey residents through its Web site.
Explanation:
If Alpha conducted substantial business with any person living or being in New Jersey while doing so, then a New Jersey court will have jurisdiction over Alpha's business. A company can interact with its customers, for example, provide customer service for free, but if it makes business in the state, then it falls under the jurisdiction of the state.
