Answer:
0.304
Explanation:
The calculation has been done step by step in order to understand the final result. Note that (p) in the below working refers to the correlation coefficient between Stock A and B.
0.042 = (0.70^2)(0.23^2) + (0.30^2)(0.29^2) + 2(0.70)(0.30)(0.23)(0.29)p
0.042 = 0.0259 + 0.0076 + 0.028p
0.042 = 0.0335 + 0.028p
0.042 - 0.0335 = 0.028p
0.0085 = 0.028p
p = 0.0085 / 0.028
p = 0.304
Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of $9,381.58. On that date, the bank statement indicated a balance of $11,828.12. A comparison of returned checks and bank advices revealed the following: Deposits in transit July 31 amounted to $4,650.03. Outstanding checks July 31 totaled $1,908.27. The bank erroneously charged a $422.50 check of Solomon Company against the Sullivan bank account. A bank service charge has not yet been recorded by Sullivan Company of $32.50. Sullivan neglected to record $5,200.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $5,200.00 as a deposit. Included with the returned checks is a memo indicating that J. Martin's check for $832.00 had been returned NSF. Martin, a customer, had sent the check to pay an account of $858.00 less a $26 discount. Sullivan Company recorded a $141.70 payment for repairs as $1,417.00 Required a. Prepare a bank reconciliation for Sullivan Company at July 31. b. Prepare the journal entry (or entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. Note: Do not round answers - enter using two decimal places, when needed.
Solution :
Sullivan's Company
Bank Reconciliation Statement, July 31
BANK BOOK
Ending balance from $11,828.12 Balance from the ledger $9,381.58
bank statement.
Add : Add :
Deposit in transit $4,650.03 Note payable borrowed $5,200
from bank
Error by bank $422.50 Error in recording payment $1275.3
$ 16,900.65 $15,856.88
Less: Less :
Outstanding checks $1,908.27 Service charge $32.50
NSF Check $832
Reconciled cash balance $ 14992.38 Reconciled cash balance $14992.38
b).
Date Accounts titles and explanations Debit($) Credit($)
July 31 Cash 5,200.00
Notes payable 5,200.00
July 31 Cash 1275.3
Repair expenses 1275.3
July 31 bank charges 32.50
Cash 32.50
July 31 Accounts receivable 832
cash 832
Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700.
Required:
Complete the journal entry.
Answer:
Date Account Title Debit Credit
January 31 Work in Process $540
Factory Overhead $540
Explanation:
Overhead is applies by linking it to direct labor.
Overhead is $20,000 when Direct labor is $100,000.
= 20,000 / 100,000
= 20%
The overhead for this job must therefore be:
= 20% * 2,700
= $540
Home Run Inn began producing frozen pizza in their single restaurant in South Chicago in the 1950s. They did this because their customers wanted this product. Today, businesses use IT to track customer tastes and desires in order to both attract new customers and retain current ones. Today this customer/business interaction is called
Answer:
Customer relationship management
Explanation:
Customer relationship management consists of an organizational strategy whose main objective is to increase brand awareness and value for your potential customer.
When Home Run Inn uses IT strategies to track customer tastes and desires in order to attract new customers and retain current ones, it is having a positive interaction with the consumer, who has their needs and preferences met by the company and thus build a relationship of loyalty with the brand that becomes more competitive and well positioned in the market.
The relationship between client and company is extremely valued today, whose digital age has narrowed this relationship and has made companies much more than profitable entities, but rather as providers of identification, value and satisfaction for the client.
The Miller Manufacturing Company has two divisions. The Cutting Division prepares timber at its sawmills. The Assembly Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 2019. During the year, the Cutting Division prepared 60,000 cords of wood at a cost of $660,000. All the lumber was transferred to the Assembly Division, where additional operating costs of $6 per cord were incurred. The 600,000 boardfeet of finished wood were sold for $2,500,000. Required: Determine the operating income for each division if the transfer price is $9 per cord.
Answer and Explanation:
The computation of the operating income in the case when the transfer price is $9 per cord
Particular Cutting Assembly
Revenue $540,000 $2,500,000
(60,000 × $9)
Cost of service
Incurred $660,000 $360,000
(60,000 × $6)
Transfered in $0 $540,000
Total $660,000 $900,000
Operating income -$120,000 $1,600,000
The following information is available for Conger Company for the month of January: expected cash receipts $59,000; expected cash disbursements $67,000; and cash balance on January 1, $12,000. Management wishes to maintain a minimum cash balance of $9,000.
Prepare a basic cash budget for the month of January.
Answer:
Basic cash budget for the month of January
Cash Receipts :
Receipts $59,000
Expenditures :
Disbursements $67,000
Net Cash ($8,000)
Beginning Balance $12,000
Ending Balance $4,000
Loan amount $5,000
Explanation:
A Cash Budget gives an estimate of cash receipts and expenditures. It can also tell when and how much additional cash may be required to meet minimum cash balances.
Explain how planning involves making decisions today that will have an impact later.
Planning is figuring out what you will do and when. If you plan to play video games instead of doing homework, then tomorrow at school you will get in trouble. If you plan on dropping out of high school, later in life you will not be able to get as many jobs.
Answer: Decision making is the core of planning. Unless a decision has been made, a plan cannot be implemented in the field. ... Decisions can be made without planning but planning cannot be done without making decisions. Planning can be defined as the process of selecting a future course of action.\
Limited partnership is best suited to rising large amount of capital.
True or false?
On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $7,200,000 of 8-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $6,836,187. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
Year 1 July 1 Cash 309.236
Discount on Bonds Payable 3,690,764
Bonds Payable 46,000,000
2. Journalize the entries to record the following:
A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method.
3. Determine the total interest expense for Year 1.
Answer:
Livingston Corporation
1.
Year 1 July 1
Debit Cash $6,836,187
Debit Discount on Bonds Payable $363,813
Credit Bonds Payable $7,200,000
To record bonds proceeds and liability.
2.
A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.
December 31, Year 1:
Debit Interest Expense $418,738
Credit Bond Discounts $22,738
Credit Cash $396,000
To record interest expense for the first six months and the amortization of bond discounts.
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method.
December 31, Year 1:
Debit Interest Expense $411,021
Credit Bond Discounts $15,021
Credit Cash $396,000
To record interest expense for the second six months and the amortization of bond discounts.
3. Determine the total interest expense for Year 1.
Total interest expense for Year 1:
Straight- Effective
Line Method Interest Method
December 31, Year 1 $418,738 $410,171 ($6,836,187 * 6%)
= Cash payment + Semi-annual
Amortization of bonds discount
= ($396,000 + $22,738)
Explanation:
a) Data and Calculations:
Face value of bonds issued = $7,200,0
Cash received = $6,836,187
Total bonds discount = $363,813 ($7,200,000 - $6,836,187)
Period of bonds = 8 years
Interest rate of bonds = 11%
Effective interest rate = 12%
Semi-annual cash payment = $396,000 ($7,200,000 * 11% * 6/12)
First interest expense on December 31 Year 1 = $410,171 ($6,836,187 * 12% * 6/12)
Amortization of bond discount for the first six months = $14,171 ($410,171 - $396,000)
Bond balance after the first six months = $6,850,358 ($6,836,187 + $14,171)
Second interest expense on June 30, Year 2 = $411,021 ($6,850,358 * 6%)
Amortization of bond discount for the second six months (June 30, Year 2) = $15,021 ($411,021 - $396,000)
Bond balance on June 30, Year 2 = $6,865,379 ($6,850,358 + $15,021)
Straight-line method amortization:
Semi-annual amortization of bond discount = $22,738 ($363,813/16)
Interest expense = $396,000
Chris invests a total of $19,000 in two accounts. The first account earned a rate of return of 13% (after a year). However, the second account suffered a 2% loss in the same time period. At the end of one year, the total amount of money gained was $1,495.00. How much was invested into each account
Answer:
Amount invested in account with 13% return = $12499.97 rounded off to 12500
Amount invested in account with -2% return = 6500.03 rounded off to 6500
Explanation:
To calculate the amount invested in each account, we must first calculate the total return earned by Chris as a percentage of his investment.
Total Return/gain = 1495 / 19000 = 0.078684 or 7.8684%
To calculate the overall return, we must use the weighted average of returns provided by each account. The weighted average can be calculated as follows,
Average Overall Return = wA * rA + wB * rB
Where,
w represents the weight of investment in each account as a percentage of overall investmentr represents the return provided by each accountLet weight of investment in account that provided 13% return be x
Let weight of investment in account that provided -2% return be (1 - x)
0.078684 = x * 0.13 + (1-x) * -0.02
0.078684 = 0.13x - 0.02 + 0.02x
0.078684 + 0.02 = 0.15x
x = 0.098684 / 0.15
x = 0.65789333333 or 65.789333333%
Amount invested in account with 13% return = 19000 * 65.789333333%
Amount invested in account with 13% return = $12499.97 rounded off to 12500
Amount invested in account with -2% return = 19000 * (1 - 65.789333333%)
Amount invested in account with -2% return = 6500.03 rounded off to 6500
Cornerstone Exercise 9-41 Ratio Analysis Red Corporation had $1,750,000 in total liabilities and $3,000,000 in total assets as of December 31, 2020. Of Red's total liabilities, $600,000 is long-term. Required: Calculate Red's debt to assets ratio and its long-term debt to equity ratio. Round your answers to four decimal places, if required. Debt to Total Assets fill in the blank 1 Long-Term Debt to Total Equity fill in the blank 2
Answer:
A. Debt to Total Assets ratio 0.5833 times
B. Long Term Debt to Total Equity Ratio 0.48 times
Explanation:
A. Calculation for Red's debt to assets ratio using this formula
Debt to Total Assets ratio = Total Liabilities/
Total Assets
Let plug in the formula
Debt to Total Assets ratio=$1,750,000/$3,000,000
Debt to Total Assets ratio=0.5833 times
Therefore the Debt to Total Assets ratio will be 0.5833 times
B. Calculation to determine its long-term debt to equity ratio
First step is to calculate the Shareholders’ Equity using this formula
Shareholders’ Equity = Total Assets – Total outside liabilities
Let plug in the formula
Shareholders’ Equity = $3,000,000-$1,750,000 Shareholders’ Equity =$1,250,000
Now let calculate the Long Term Debt to Total Equity Ratio using this formula
Long Term Debt to Total Equity Ratio = Long Term Debt/ Total Shareholder’s equity
Let plug in the formula Long Term Debt to Total Equity Ratio=$600,000/$1,250,000
Long Term Debt to Total Equity Ratio= 0.48 times
Therefore Long Term Debt to Total Equity Ratio will be 0.48 times
What is an example of an asset class?
A.
dividends
B.
inflation
C.
common stocks
D.
compounding interest
Answer: coming stocks
Explanation: just took test
Common stocks are an example of an asset class. Hence, option C is correct.
What is Common stocks?The most accessible form of a company's shares, known as common stock, is what you would most usually come across when trading equities on an exchange. These shares normally have voting privileges but are paid out last in the order of preference if a corporation goes bankrupt.
Common stocks are securities that indicate a person's ownership in a particular firm and their right to share in the venture's profits. Such a stock option grants people the right to vote for the company's board of directors and also gives them the ability to influence business policy.
The primary distinction between preferred and common stock is that common stock grants stockholders voting rights, whilst preferred stock does not.
Thus, option C is correct.
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• The Vice President of Customer Service has expressed concern over a project in which you are involved. His specific concern is with the staff you have identified to work on a project to migrate the corporate website from the data center to the cloud. The project sponsor insists that you need to cut down on your project staff. You are the project manager. What resources do you think are really necessary for this project? How would you respond to the project sponsor to defend your staffing plan?
Answer: A. The VP of customer service is correct. Since the cost was not taken into account at the beginning of the project, the project should not go forward as planned. Project initiation should be revisited to examine the project plan and determine how changes can be made to accommodate customer service. B.
Explanation:
The internal rate of return : (mark all that applies) does not need a required rate to calculate. rule states that a typical investment project with an IRR that is less than the required rate of return should be accepted. is the more sound decision rule when dealing with mutually exclusive projects is the rate that causes the net present value of a project to exactly equal zero. can effectively be used to analyze all investment scenarios.
Answer:
does not need a required rate to calculate
is the rate at which npv is zero
Explanation:
Internal rate of return is an example of capital budgeting method
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.
Projects with the IRR greater than the discount rate should be accepted. It means that it is profitable.
Projects with more than one negative cash flow are unsuitable for calculating with IRR. This is because it can lead to multiple IRR, Thus, it not suitable for analysing all investment scenarios.
The net present value is the most preferred capital budgeting method
Other capital budgeting methods includes
1. profitability index = 1 + (NPV / Initial investment)
2. Accounting rate of return = Average net income / Average book value
3. Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
4. Net present value is the present value of after-tax cash flows from an investment less the amount invested.
The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What is the amount that would be reported for stockholders’ equity at December 31, 2015?
Answer:
Postal Service
The amount that would be reported for Stockholders' Equity at December 31, 2015 is:
= $130,000.
Explanation:
a) Trial Balance
December 31, 2015:
Cash $15,000
Accounts receivable 11,000
Supplies 4,000
Prepaid insurance (12-month) 6,000
Equipment 210,000
Accounts payable $ 18,000
Accumulated depreciation – equipment 28,000
Note payable, due 6/30/16 70,000
Common stock 42,000
Retained earnings (1/1/15) 60,000
Dividends 14,000
Service revenue 133,000
Advertising expense 21,000
Depreciation expense 12,000
Insurance expense 3,000
Rent expense 17,000
Salaries and wages expense 32,000
Supplies expense 6,000
Totals $351,000 $351,000
Income Statement for the year ended December 31, 2015
Service revenue $133,000
Advertising expense 21,000
Depreciation expense 12,000
Insurance expense 3,000
Rent expense 17,000
Salaries and wages expense 32,000
Supplies expense 6,000 $91,000
Net income $42,000
Statement of Retained Earnings
For the year ended December 31, 2015
Retained earnings (1/1/15) $60,000
Net income 42,000
Dividends (14,000)
Retained earnings (December 31, 2015) $88,000
Equity:
Common stock $42,000
Retained earnings 88,000
Total equity $130,000
Suppose that the global crude oil price has risen due to refinery breakdowns caused by middle-east politics and warfare. Crude oil is an input in the gasoline production. At the same time, the demand for driving and, therefore, the demand for gasoline has also risen in the United States. You can accurately predict that the domestic price of gasoline is:_______
Answer:
"Definitely increase" is the correct approach.
Explanation:
As fuel demand rises, consumption exceeds the amount, as manufacturers are unable to cope with either the surge in demand whenever the profit margin is still rising.We could perhaps state precisely that consumption overtakes the output of petrol or the curve of availability to that same right as well as would therefore be at that same greater degree.Thus the above is the correct answer.
AN IMPLIED CONTRACT CAN BEST BE DEFINED AS: WILL NOT BE RECOGNIZED AS ENFORCEABLE BY THE COURTS A TRUE FORM OF A FORMAL CONTRACT THE INTENTIONS OF THE PARTIES ARE INFERRED FROM THEIR CONDUCT BY THE COURT AS WELL AS THE CIRCUMSTANCES OF THE CONTRACT WHICH EXISTS IN THE EYES OF THE LAW, EVEN THOUGH THE PARTIES HAVE NOT IN ANY WAY INTENDED TO FORM THE CONTRACT
Answer: the intentions of the parties is inferred from their conduct by the court as well as the circumstances of the contract
Explanation:
An implied contract is referred to as an agreement that's legally-binding which was created due to the actions, or circumstances of the parties that were involved.
In an implied contract, the parties typically possess no written contract, but an obligation is created by the law based on the conduct of the parties involved.
As reported by the Wall Street Journal in its’ article entitled "How Pfizer Set the Cost of its New Drug at $9,850," Pfizer determined that:________.
A. a price below $10,000 (or its determined price of $9,850) for its new drug Ibrance would result in a rapid increase in its marginal costs.
B. a price below $10,000 (or its determined price of $9,850) for its new drug Ibrance would result in a decline in its (total sale) revenues reflecting a price elasticity greater than one (in absolute value) for prices less than $10,000.
C. a price above $10,000 (or its determined price of $9,850) for its new drug Ibrance would result in a decline in its (total sale) revenues reflecting a price elasticity less than one (in absolute value) for prices exceeding $10,000.
D. a price above $10,000 (or its determined price of $9,850) for its new drug Ibrance would result in a decline in its (total sale) revenues reflecting a price elasticity greater than one (in absolute value) for prices exceeding $10,000.
my brain can't process this lol
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for
local, state, or federal governments.
nonprofit organizations that use unions.
companies that use self-employed contractors.
private companies and businesses.
HELP PLEASE
Answer:
A.) local, state, or federal governments.
Explanation:
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for local, state, or federal governments. Thus, option A is correct.
What is Transportation?Transportation, the development of merchandise and people from one spot to another, and the different means by which such development is achieved.
Laborers in Transportation and Logistics vocations who have confidence in the advantages of an association are probably going to work for it. not-for-profit associations that utilize associations.
Laborers in operations vocations who put stock in the advantages of an association are probably going to work for neighborhood, state, or central legislatures.
Union have better work well-being securities and preferred paid leave over non-association laborers, and are safer practicing their freedoms in the workplace.
Therefore, option A is correct.
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Heidi is having trouble understanding the Black Lives Matter (BLM) movement and why her workplace sent out an email affirming the company's commitment to diversity and inclusion. This is probably because as a white woman from a small town with little exposure to diversity efforts, Heidi has not had much education about what BLM is trying to accomplish. She is wrestling with this new information about systemic racism and ultimately dismisses it as unfounded because it is contrary to her past experiences. This is an illustration of which of the following?
a. Stereotyping
b. An entrenched mental model
c. Leader-Member Exchange Theory
d. Ethnocentrism
e. Social Identity Theory
Answer:
e. Social Identity Theory
Explanation:
It is correct to state that the scenario in the question above refers to the theory of social identity, which is a theory that seeks to explain how the categorization of groups such as those based on culture, social class, race, age, directly impact the life of an individual and their perception of the world. Psychology seeks to analyze how important it is for an individual to belong to a group and to form an identity based on the collective of that group, that is, to form a society.
Therefore, the theory of social identity suggests that there is an inclination for individuals to overestimate the characteristics of the group to which they belong and to minimize the characteristics of other groups, which can generate prejudice, racism and apathy, which is what happened with Heidi, who considered information about systemic racism unfounded by the fact that they are contrary to their previous experiences.
Paid $42,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $210 cash per truck for the cost of their annual tune-ups. Paid $168 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $236,250 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1.
Answer:
Part 1
Replacement of motor on equipment - Capital Expenditure
Cost of Initial tune -ups - Capital Expenditure
Replacement filters on an air-conditioning system - Revenue Expenditure
Addition to a Building - Capital Expenditure
Part 2
Item 1
Debit : Equipment $42,000
Credit : Cash $42,000
Item 2
Debit : Truck $210
Credit : Cash $210
Item 3
Debit : Replacement expense $168
Credit : Cash $168
Item 4
Debit : Buildings $236,250
Credit : Cash $236,250
Explanation:
Capital Expenditure is any expenditure incurred to enhance the economic value of an asset. This include improvements or costs directly incurred to place the asset in the location and condition intended for use by the management.
Revenue Expenditure is any expenditure incurred to maintain daily operations of the company. This includes repairs and maintenance expenses.
An asset falling under the MACRS five-year class was purchased three years ago for $200,000 (its original depreciation basis). Calculate the cash flows if the asset is sold now at a) $60,000 and b) $80,000. Assume the applicable tax rate is 40 percent.
Answer:
(a) The cash flows is $59,040.
(b) The cash flows is $71,040.
Explanation:
From the Modified Accelerated Cost Recovery System (MACRS) Tables, the depreciation rates for the first 3 years for an asset falling under the MACRS five-year class are 20%, 32% and 19.2%. Therefore, we have:
Accumulated depreciation rate = 20% + 32% + 19.2% = 71.20%
Accumulated depreciation = Cost of the asset * Accumulated depreciation rate = $200,000 * 71.20% = $142,400
Net book value of the asset = Cost of the asset - Accumulated depreciation = $200,000 - $142,400 = $57,600
We can now proceed as follows:
(a) Calculate the cash flows if the asset is sold now at $60,000
Capital gains = Sales proceeds - Net book value = $60,000 - $57,600 = $2,400
Capital gains tax = Capital gains * Tax rate = $2,400 * 40% = $960
Net sales proceeds = Sales proceeds - Capital gains tax = $60,000 - $960 = $59,040
Therefore, the cash flows is $59,040 net sales proceeds.
(b) Calculate the cash flows if the asset is sold now at $80,000
Capital gains = Sales proceeds - Net book value = $80,000 - $57,600 = $22,400
Capital gains tax = Capital gains * Tax rate = $22,400 * 40% = $8,960
Net sales proceeds = Sales proceeds - Capital gains tax = $80,000 - $8,960 = $71,040
Therefore, the cash flows is $71,040 net sales proceeds.
The cash flows is $59,040 and $71,040 when asset are sold at $60,000 and $80,000.
What is MACRS depreciation?MACRS stands for modified accelerated cost recovery system is the depreciation system in the U.S. where the cost of the asset is recovered in a specific period through deduction.
Given:
Asset=$200,000
The depreciation rate for 5 year asset are:20%, 32%, 19.2%, 11.52%, 11.52% and 5.76%
Accumulated depreciation for 3 years=20% + 32% + 19.2% = 71.20%
=asset cost X depreciation rate for 3 years
=$200,000 X 71.20% = $142,400
Net Book value=Asset Cost - Accumulated depreciation
=$200,000 - $142,400
= $57,600
(a)Cash flows if assets sold at $60,000
Capital gains = Sales - Net book value
=$60,000 - $57,600
= $2,400
Capital gains tax = Capital gains X Tax rate
= $2,400 * 40% = $960
Net sales proceeds = Sales proceeds - Capital gains tax
= $60,000 - $960 = $59,040
(b)Cash flows if assets sold at $80,000
Capital gains = Sales - Net book value
= $80,000 - $57,600
= $22,400
Capital gains tax = Capital gains X Tax rate
= $22,400 * 40% = $8,960
Net sales proceeds = Sales proceeds - Capital gains tax
= $80,000 - $8,960 = $71,040
Therefore the above calculation aptly gives the solution.
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Which statement concerning the kinked demand curve model of oligopoly is false? The portion of the demand curve above the "kink" is more elastic than the portion below. The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output. It assumes when one oligopolist raises the price, all others will follow. It addresses the question of price "stickiness."
Answer: It assumes when one oligopolist raises the price, all others will follow
Explanation:
An oligopoly is a form of market where there are dominated by few group of large sellers.
A kinked demand curve simply happens when the elasticity is not thesame for the lower and higher prices and the demand curve isn't a straight line.
It simply suggests that there are rigid prices and assumes when one oligopolist raises the price, all others will follow.
You are the manager of a monopoly that faces a demand curve described by P = 63 − 5Q. Your costs are C = 10 + 3Q. The profit-maximizing output for your firm is:
Answer:
Profit-maximizing output = 6 units
Explanation:
Given:
Demand curve = P = 63 − 5Q
Cost C = 10 + 3Q
Find:
Profit-maximizing output
Computation:
In monopoly maximum profit stand where;
MR = MC
So,
TR = P x Q
TR = (63 - 5q)Q
TR = 63Q - 5Q²
MR = d(TR) / dQ
So,
MR = d[63Q - 5Q²] / dQ
MR = 63 - 10Q
MC = dC / dQ
MC = d(10+3Q) / dQ
MC = 3
So,
Profit-maximizing output
MR = MC
63 - 10Q = 3
Q = 6
Profit-maximizing output = 6 units
Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. Use the formula method to determine how many cups of coffee would have to be sold to attain target profits of $3,000 per month.
Answer:
See below
Explanation:
The formula method is denoted by
Unit sales to attain the targeted profit =( Target profit + Fixed expenses) / Contribution margin per unit
Target profit = $3,000 per month
Fixed expenses = $1,300
Contribution margin per unit = $1.49 - $0.36 = $1.13
Therefore, unit sales to attain targeted profit = ($3,000 + $1,300) / $1.13 = 3,805.31 units
It means that 3,805.31 cup of coffee would have to be sold to attain target profit of $3,000 per month.
Cincinnati t-shirts prints custom t-shirts. The cost to produce one shirt is: direct materials, $10; direct labor, $1.20; and manufacturing overhead $4.50. Cincinnati Children’s Hospital asked Cincinnati t-shirt to sell them custom t-shirts for $12 each for a local charity event. Direct material and direct labor are required for each t-shirt. Of the manufacturing overhead, $1.50 is variable and would be incurred on each additional unit. The remaining $3 in overhead is allocated fixed overhead that would not be increased or decreased by this order. What would be the effect on net income if they accept this special order and sell 200 shirts to Cincinnati Children’s Hospital for $12 each?
Answer:
Effect on income= $140 decrease
Explanation:
Giving the following formula:
Production costs:
Direct material= 10
Direct labor= 1.2
Variable overhead= $1.5
Selling price= $12
Number of units= 200
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Effect on income= Units sold*unitary contribution margin
Effect on income= 200*(12 - 10 - 1.2 - 1.5)
Effect on income= $140 decrease
You have a 25-year maturity, 10% coupon, 10% yield bond with a duration of 10 years and a convexity of 135. If the interest rate were to increase 125 basis points, your predicted price change for the bond (including convexity) is
Answer:
The price change for the bond is -10.31%
Explanation:
Use the following formula to calculate the price change for the bond
Price change of bond = ( -Modified duration x Change in rate ) + ( 0.5 x Convexity x ( Change in rate )^2 )
Where
Modified duration = Duration / ( 1 + YTM ) = 10 years / ( 1 + 10% ) = 9.0909091
Change in rate = 125 basis point / 100 = 1.25%
Convexity = 135
Placing Values in the formula
Price change of bond = ( -9.0909091 x 1.25% ) + ( 0.5 x 135 x ( 1.25% )^2 )
Price change of bond = -0.11364 + 0.01055
Price change of bond = -0.10309
Price change of bond = -0.1031
Price change of bond = -10.31%
Paola and Isidora are married; file a joint tax return; report modified AGI of $148,000; and have one dependent child, Dante. The couple paid $12,000 of tuition and $10,000 for room and board for Dante (a freshman). Dante is a full-time student and claimed as a dependent by Paola and Isidora. Determine the amount of the American Opportunity credit for 2020.
Answer:
$2,500
Explanation:
The computation of the amount is shown below;
In the case when the modified AGI upto $180,000 so it would be credit by $2,500 per eligible student
As we can see that in the given situation there is modified AGI that reported $148,000 so here the amount of the American Opportunity credit for 2020 is $2,500 also we assume that the eligibility condition would be satisfied
Why is it important for everyone in an organization to have the opportunity to
contribute to the mission statement?
A. So it defines expected outcomes clearly
B. So that it will be accepted and used by employees
C. So employees know the organization's history
O D. So the organization can track progress toward meeting its goals
Answer: so that it will be accepted and used by employees
Explanation:
AP EX
Which of the following actions should the customer support manager take to best motivate these employees? Share trends in average customer ratings at quarterly staff meetings, emphasizing the importance of customer satisfaction. Each year, hold an award ceremony and give a bonus to the employee who has served the highest volume of customers and the one who has the highest average customer ratings. Track a great deal of data on customer interactions and send it to a consultant for detailed analysis, which can help improve procedures. Place a widget on employees’ computer screens that flashes a happy face every time the average customer wait is less than 2 minutes.
Answer: Place a widget on employees’ computer screens that flashes a happy face every time the average customer wait is less than 2 minutes.
Explanation:
Good emotional display go a long way in encouraging people who work for an organization and it in turn reflects on how well they would treat the customer's. Employees are further encouraged when they are not under excessive pressure by either employer or the customer's but are rather given an environment void of worries, it helps them respond well and carefully. The customer support manager placing a widget on employees’ computer screens that flashes a happy face every time the average customer wait is less than 2 minutes sends a relief message to the employees to carry out their work with ease.
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2021 and 2022\.\* A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $250,000 for 2021 and $380,000 for 2022. Year-end funding is $260,000 for 2021 and $270,000 for 2022. No assumptions or estimates were revised during 2021. * We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2022. Required: Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).)
Answer:
Details Dec. 31, 2021 Dec. 31, 2022
1. Projected benefit obligation $250 $645
2. Plan assets $260 $556
3. Pension expense $250 $369
4. Net pension asset or net pension liability $10* $89**
Where:
* implies asset
*** implies liability
Note: The figure above are in thousands buy entered as required in the question (Enter your answers in thousands (i.e., 200,000 should be entered as 200).)
Explanation:
Note: See the attached excel file for the calculations Projected benefit obligation, Plan assets, Pension expense, and Net pension asset or net pension liability for December 31, 2021 and December 31, 2022 respectively.