The total dollar amount of savings resulting from the change in admissions procedures at City University is $24,000.
(a) To determine the equivalent units of service (production) for materials and conversion costs, we need to consider the work done on both the completed applications and the applications still in process.
For materials:
Equivalent units of completed applications = Completed applications during March = 950
Equivalent units of applications still in process = Applications still in process at March 31 * Percentage complete as to materials = 100 * 75% = 75
Total equivalent units of service for materials = Equivalent units of completed applications + Equivalent units of applications still in the process
= 950 + 75
= 1,025
For conversion costs:
Equivalent units of completed applications = Completed applications during March = 950
Equivalent units of applications still in process = Applications still in process at March 31 * Percentage complete as to conversion costs = 100 * 75% = 75
Total equivalent units of service for conversion costs = Equivalent units of completed applications + Equivalent units of applications still in process
= 950 + 75
= 1,025
(b) To compute the unit costs and prepare a cost reconciliation schedule, we need to divide the costs by the equivalent units of service.
Unit cost of materials = Total materials costs / Total equivalent units of service for materials
= $8,000 / 1,025
≈ $7.80 per equivalent unit
Unit cost of conversion costs = Total conversion costs / Total equivalent units of service for conversion costs
= $43,000 / 1,025
≈ $42.20 per equivalent unit
Cost reconciliation schedule:
Equivalent Units Cost per Equivalent Unit Total Cost
Materials 1,025 $7.80 $7,995
Conversion Costs 1,025 $42.20 $43,255
Total Costs $51,250
(c) With the change in admissions procedures, where half of the materials are added at the end of the process, the equivalent units of service for materials and the cost per equivalent unit will be affected.
Equivalent units of completed applications = Completed applications during March = 950
Equivalent units of applications still in process = Applications still in process at March 31 * Percentage complete as to materials = 100 * 75% = 75
Equivalent units of materials added at the end = Completed applications during March / 2 = 950 / 2 = 475
Total equivalent units of service for materials = Equivalent units of completed applications + Equivalent units of applications still in process + Equivalent units of materials added at the end
= 950 + 75 + 475
= 1,500
Cost per equivalent unit for materials with the change:
Total materials costs with the change = Total materials costs - Savings
= $8,000 - $2,000
= $6,000
Unit cost of materials with the change = Total materials costs with the change / Total equivalent units of service for materials
= $6,000 / 1,500
= $4 per equivalent unit
Total savings = Savings per unit * Number of units processed
= $2 * 12,000
= $24,000
Therefore, the total dollar amount of savings resulting from this change is $24,000.
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Complete question:
City University uses a process cost system to accumulate costs incurred in handling student applications in the admissions department. When an application is completed, it is forwarded to the appropriate academic department for final processing. The following processing and cost data pertain to March. 1 Applications in process on March 1 2. Applications started in March 1,100 950 Completed applications during March Applications still in process at March 31+ Were 100% complete as to materials (forms)- and 75% complete as to conversion costs 4. Beginning WP: Direct materials Conversion costs .2.125 9,450- March costs: Direct materials Direct labor Overhead 8.000 43,000- 10,050 Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process· +' instructions (a) Determine the equivalent units of service (production) for materials and conversion costs. +' (b)Compute the unit costs and prepare a cost reconciliation schedule. (c) In an effort to improve efficiency, City University has changed their admissions procedures. Instead of adding all of the materials at the beginning of the process, they have decided to add half of the materials at the end of the process right before the applications are transferred to the academic departments. This has resulted in a $2,000 savings in March's direct materials costs (beginning direct materials are not affected) Determine the equivalent units of service (production) and the cost per equivalent unit for materials based on this change. If City University processes 12,000 applications during a typical year, what is the total dollar amount of savings that will result from this change?.
Which pricing strategy makes more sense when economies of scale are important? O Skimming pricing O Penetration pricing O Competition-based pricing O Economies of scale are not relevant for pricing decision
Economies of scale refer to the concept that as production volume increases, the cost per unit decreases.
It is a popular cost-saving strategy used in the manufacturing and distribution of products. When it comes to setting prices, the pricing strategy that makes more sense when economies of scale are important is Penetration pricing.Penetration pricing is the practice of setting a low initial price for a new product or service to attract consumers and capture a large market share. This pricing strategy is usually employed when a new product is launched into a highly competitive market. A lower price makes the product more attractive to consumers, which increases demand. This increase in demand leads to higher production volume and the ability to take advantage of economies of scale.
Economies of scale occur when the cost of production per unit of output decreases as output increases. This is because the fixed cost of producing goods is spread out over a larger number of units. As a result, the company can lower the price of the product while maintaining a healthy profit margin and capturing a larger market share.Penetration pricing is, therefore, the best pricing strategy to employ when economies of scale are important. A lower price will lead to a higher volume of sales, which in turn will lead to increased production volume and economies of scale.
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The Capital Allocation Line can be described as the :
a) investment opportunity set formed with two risky assets.
b) investment opportunity set formed with a risky asset portfolio and a risk-free asset.
c) line on which lie all portfolios that offer the same utility to a particular investor.
d) investment opportunity set formed with multiple risky assets.
The Capital Allocation Line can be described as the investment opportunity set formed with a risky asset portfolio and a risk-free asset. Option B
What is Capital Allocation Line?In investment opportunities, the Capital Allocation Line (CAL) denotes the mix of a portfolio featuring risky assets and a risk-free asset.
The CAL generates diverse investment portfolios by blending different ratios of the high-risk investment portfolio and the low-risk investment.
A collection of various high-risk investments make up the risky asset portfolio, whereas a riskless investment like a government bond is referred to as the risk-free asset.
The CAL presents a graphical depiction of how investors can manage the balance between risk and return.
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Z-Corp sold an old obsolete piece of equipment that was sitting in their warehouse for cash. what would this be recorded on, operating activities, investing activities or both
The sale of an old obsolete piece of equipment by Z-Corp would be recorded in the investing activities section of the cash flow statement.
Investing activities involve the acquisition or disposal of long-term assets, such as property, plant, and equipment. Selling the equipment generates cash inflow and represents a disposal of a long-term asset. Therefore, it would be classified as an investing activity.
Operating activities, on the other hand, involve cash flows directly related to the core operations of the business, such as revenue from sales, payment of salaries, and purchase of inventory. The sale of the equipment is not considered part of the company's core operations and would not be recorded as an operating activity.
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define consumer protection agency
Definition of Consumer Protection Agency (CPA)
CPA is the governmental regulatory authority entrusted with the protection of consumer rights and was established by virtue of the Consumer Protection Law No. 67 in 2006 and its Executive Regulations.
Fast tracking is an example of a tool used in _____ management.
a.
time
c.
communication
b.
quality
d.
risk
Fast tracking is a time management technique used to expedite project schedules by overlapping or compressing activities. Therefore, option a is correct.
Fast tracking is an example of a tool used in time management. It is a project management technique that involves overlapping or compressing project activities to shorten the overall project schedule. By fast tracking, activities that were originally planned to be performed sequentially are rescheduled to be performed in parallel or partially overlapping, thereby reducing the project duration.
Fast tracking is particularly useful when there is a need to accelerate the project schedule or meet tight deadlines. However, it can also introduce risks and challenges as it may increase the likelihood of rework, resource conflicts, and potential impacts on project quality. Therefore, it is essential to carefully analyze the project requirements, dependencies, and potential risks before implementing fast tracking as a time management tool.
It is a tool employed to reduce project duration and meet time constraints. However, it should be implemented with caution, considering potential risks and impacts on project quality.
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Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 25% in all years. Any tax effects should be adjusted through the deferred tax liability account. a. Fleming Home Products introduced a new line of commercial awnings in 2020 that carry a one-year warranty against manufacturer's defects. Based on industry experience, warranty costs were expected to approximate 4% of sales. Sales of the awnings in 2020 were $3,700,000. Accordingly, warranty expense and a warranty liability of $148,000 were recorded in 2020. In late 2021, the company's claims experience was evaluated, and it was determined that claims were for fewer than expected: 3% of sales rather than 4%. Sales of the awnings in 2021 were $4,200,000, and warranty expenditures in 2021 totaled $95,550. b. On December 30, 2017, Rival Industries acquired its office building at a cost of $1,040,000. It was depreciated on a straight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2021 to relocate the company headquarters at the end of 2025. The vacated office building will have a salvage value at that time of $720,000. c. Hobbs-Barto Merchandising, Inc., changed inventory cost methods to LIFO from FIFO at the end of 2021 for both financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2021, is $710,000. d. At the beginning of 2018, the Hoffman Group purchased office equipment at a cost of $352,000. Its useful life was estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years-digits method. On January 1, 2021, the company changed to the straight-line method. e. In November 2019, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2020, Huggins had not reached a settlement with state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $220,000 in penalties. Accordingly, the following entry was recorded: Loss litigation Liability litigation 220,000 Required: For each situation: 220,000 Late in 2021, a settlement was reached with state authorities to pay a total of $372,000 in penalties, f. At the beginning of 2021, Jantzen Specialties, which uses the sum-of-the-years-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net earnings by $467,000. 1. Identify the type of change. 2. Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described.
Each change occurs during 2021 before any adjusting entries or closing entries were prepared. Any tax effects adjusted through the deferred tax liability account.
a. This is a change in accounting estimate, as the company's claims experience was evaluated and found to be different than the original estimate. A new warranty liability of $116,500 and a decrease in warranty expense of $31,500 should be recorded in an adjusting entry for 2021.
Warranty Liability 116,500 Deferred Tax Liability 29,125 Warranty Expense 31,500 Deferred Tax Asset 7,875
b. This is a change in accounting estimate, as the useful life and salvage value were revised. The remaining cost of the building (net book value) needs to be adjusted over the remaining depreciable life of the building. An adjusting entry should be made at the end of 2021 for this change.
Depreciation Expense 20,500 Accumulated Depreciation 20,500
c. This is a change in accounting principle, as the company changed from FIFO to LIFO. An adjusting entry should be made to reflect the inventory at LIFO cost at the end of 2021.
Cost of Goods Sold XX Inventory XX
d. This is a change in accounting estimate, as the depreciation method was changed. The remaining cost of the equipment (net book value) needs to be adjusted over the remaining useful life of the asset. An adjusting entry should be made at the beginning of 2021 for this change.
Depreciation Expense XX Accumulated Depreciation XX
e. This is a change in accounting estimate, as the amount of the loss litigation liability was revised. An adjusting entry should be made for the new estimated liability at the end of 2021.
Litigation Liability 152,000 Deferred Tax Liability 38,000 Litigation Expense 68,000 Deferred Tax Asset 17,000
f. This is a change in accounting principle, as the depreciation method was changed. A journal entry needs to be made to adjust the accumulated depreciation to its carrying value at the time of the change.
Retained Earnings 467,000 Accumulated Depreciation XX Depreciation Expense XX
An adjusting entry should also be made to reflect the depreciation expense for the current year using the straight-line method.
Depreciation Expense XX Accumulated Depreciation XX
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QUESTION B. Mela is spending the summer staying at the home of her friend Jasmine. After a day of swimming at Pineview Reservoir, Mela asks to use Jasmine's hair dryer at her home. Jasmine tells Mela
The situation is an example of how a small mistake can lead to serious consequences, and how we need to be aware of our actions and their potential impact.
Mela is spending the summer staying at the home of her friend Jasmine. After a day of swimming at Pineview Reservoir, Mela asks to use Jasmine's hair dryer at her home. Jasmine tells Mela that the hair dryer is not functioning correctly, but Mela uses it anyway. Suddenly, there is a spark and the hair dryer stops working altogether, and then a small fire breaks out. The tort that Mela committed is battery. Battery is the intentional or harmful touching of another person without their consent, which can include any physical contact that is unwanted. Mela used the hair dryer without Jasmine's permission, knowing that it was not working correctly, and ended up causing harm by starting a fire. Because the use of the hair dryer was intentional and resulted in harm, it can be considered a battery. To avoid these types of situations, it is important to always ask for permission before using someone else's property, and to avoid using anything that is not functioning properly. Additionally, it is important to pay attention to warning signs and take precautions to prevent accidents. This situation is an example of how a small mistake can lead to serious consequences, and how we need to be aware of our actions and their potential impact.
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If the demand for French wine I increases and supply decreases at the same time, equilibrium quantity of French wine will decrease: _______
The equilibrium quantity of French wine will decrease if the demand for French wine increases and supply decreases at the same time. This is because when b demand, it results in a shortage of the good in question.
However, when supply decreases, it leads to a decrease in the quantity of the good available.The intersection of the supply and demand curves determines the equilibrium quantity of French wine. If the demand for French wine increases and supply decreases at the same time, then the demand curve shifts to the right and the supply curve shifts to the left. This results in a new equilibrium point being established, with a new price and quantity.In general, when the demand for a good increases and supply decreases, the price will increase.
However, the impact on the quantity will depend on the relative magnitudes of the changes in demand and supply. If the decrease in supply is more than 100, then the equilibrium quantity will decrease, regardless of the magnitude of the increase in demand.
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Much of even your best helping work will be ineffective, if you fail to ____. A. Identify the client's root issues b. Detail insufficient alternatives c. Generalize and transfer learning d. Properly assess positive and negative consequences
Much of even your best helping work will be ineffective, if you fail to Identify the client's root issues. Option A.
To effectively provide help and support to someone, it is crucial to identify the client's root issues. Understanding the underlying problems and challenges allows for targeted interventions and solutions, leading to more effective outcomes.
Identifying the client's root issues involves going beyond surface-level symptoms and exploring the underlying causes and drivers of their situation. It requires active listening, empathy, and a thorough assessment of their circumstances.
By delving deeper into the core problems, it becomes possible to address the underlying issues that contribute to their challenges.
Failure to identify the client's root issues can result in superficial or ineffective assistance. Treating only the symptoms or providing generic solutions may provide temporary relief but often fails to address the underlying causes. This can lead to a cycle of recurring problems or missed opportunities for meaningful change.
By properly identifying the root issues, a helper can tailor their approach to address the specific needs of the client. This may involve offering targeted strategies, interventions, or referrals to other professionals or resources.
It enables a more comprehensive understanding of the client's situation and facilitates the development of effective solutions that have a lasting impact.
In summary, to provide effective help, it is essential to identify the client's root issues. Doing so allows for a more accurate understanding of their challenges, enables targeted interventions, and increases the likelihood of positive and sustainable outcomes .SO Option A is correct.
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jackson owns a condominium in las vegas, nevada, and he rents it to joanne for $1,500 per month, payable on the 1st of each month. while he was out of town in august, the condominium's air conditioning broke and joanne had it replaced for $1,350. how much rental income does jackson report for september if joanne deducts the repair cost from her rent for september? multiple choice $0. $150. $1,500. $1,350.
Jackson owns a condominium in Las Vegas, Nevada, and he rents it to Joanne for $1,500 per month, payable on the 1st of each month. While he was out of town in August, the condominium's air conditioning broke, and Joanne had it replaced for $1,350.
We are supposed to find out how much rental income Jackson reports for September if Joanne deducts the repair cost from her rent for September .According to the question, Jackson owns a condominium in Las Vegas, and Joanne rents it for $1,500 per month, payable on the 1st of each month. Now, when the air conditioning broke, Joanne replaced it by spending $1,350.This amount will be deducted from her September rent.
So, the amount she will pay for September will be $1500 - $1350 = $150.Now, the main answer to the question is $150 as Joanne will pay $150 instead of $1500 after deducting the repair cost. Therefore, this will be the rental income of Jackson for the month of September Rental income is the income that comes from renting out the property owned by an individual.
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GDP per capita is a measure of prosperity because it divides the total GDP of a country by its population. Which of the below forecasts for a country would result in the highest GDP per capita growth? a. An increase of 4% in GDP and a population growth of 3%
b. An increase of 0% in GDP and a population decline of 0.5% c. An increase of 2% in GDP and a population growth of 0% d. An increase of 2% in GDP and a population growth of 0.5%
The forecast that would result in the highest GDP per capita growth is d. An increase of 2% in GDP and a population growth of 0.5%.
GDP per capita is a measure of prosperity as it indicates the average economic output per person in a country. To calculate GDP per capita, the total GDP of a country is divided by its population. Therefore, for higher GDP per capita growth, we would want to see a higher increase in GDP relative to the population growth rate.
In option d, there is a 2% increase in GDP, which indicates economic growth, and a population growth of 0.5%. This combination results in a higher GDP per capita growth compared to the other options. Even though options a and c have a higher GDP growth rate, the population growth rate in option d is lower, leading to a higher GDP per capita growth.
While population decline (option b) may result in a temporary increase in GDP per capita, in the long term, sustaining GDP growth without population growth becomes challenging. Therefore, option d, with a moderate GDP growth rate and a smaller population growth rate, would lead to the highest GDP per capita growth.
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Sara is a 57-year-old graphic designer who wants to retire 5 years from now. She earns $54,000/year and does not expect any raises if she stays in her job. Her daughter has told her about a new job opportunity that would offer a much higher salary, but to become eligible Sara would need to quit her job and spend a year taking classes. If she did that, next year she would earn $0 and pay $42,000 in tuition, and then she would earn $81,000/year for the final 4 years of her career. Sara likes the duties of the two jobs equally well, so this is strictly a financial issue for her. The interest rate is r. Question: How will she decide? Write down the calculation she will make. Would she be more likely to change jobs if the interest rate were higher or lower?
The calculation that Sara will make in order to decide is to determine the present value of the cash flows of both options. This is because she wants to know which of the options, quitting her current job to go to school and get a higher paying job or staying at her current job, has a higher present value of cash flows.The calculation for the present value of the cash flows for her current job can be calculated as follows:PV = (54,000 / (1 + r)^1) + (54,000 / (1 + r)^2) + (54,000 / (1 + r)^3) + (54,000 / (1 + r)^4) + (54,000 / (1 + r)^5)Since Sara will be retiring in 5 years, we only need to calculate the present value of the cash flows for the next 5 years.The calculation for the present value of the cash flows for the new job can be calculated as follows:PV = -42,000 + (81,000 / (1 + r)^1) + (81,000 / (1 + r)^2) + (81,000 / (1 + r)^3) + (81,000 / (1 + r)^4)Since Sara will have to pay $42,000 in tuition in the first year, we have a negative value for the present value of the first year.
The present value of cash flows for both options can be compared to determine which has a higher present value. If the present value of cash flows for the new job is higher, then Sara will choose to take that job. If the present value of cash flows for her current job is higher, then she will choose to stay where she is.She would be more likely to change jobs if the interest rate were higher since higher interest rates result in a lower present value of cash flows. Therefore, if the present value of the cash flows for the new job is higher than the present value of the cash flows for her current job, then a higher interest rate would result in a smaller difference between the present values, making the new job a more attractive option.
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An investor starts off owning the market portfolio. She then identifies a stock with positive alpha and decides to add some of it to her portfolio. Adding a small amount of the stock is guaranteed to:
A. Increase the portfolio’s Sharpe Ratio.
B. Decrease the portfolio’s Sharpe Ratio.
C. Increase the portfolio’s variance.
D. Without knowing the correlation between this stock and the market portfolio, we don’t know whether it increases the portfolio’s Sharpe Ratio or not.
Please provide the answer with an explanation
The answer to the given problem is option A.
Adding a small amount of stock to the investor's portfolio will increase the portfolio's Sharpe Ratio.
What is Sharpe Ratio?
The Sharpe Ratio is a method used to calculate risk-adjusted returns by comparing a portfolio's returns to the returns on a risk-free asset. In other words, it measures how much return an investment is expected to earn per unit of risk undertaken. The higher the Sharpe Ratio, the more efficient the portfolio is at producing returns.
What is Alpha?
Alpha is a metric used in finance to measure the excess returns of an investment relative to its benchmark index. It is a measure of the investment manager's skill, indicating how much the manager outperformed the benchmark after adjusting for market risk. A positive alpha indicates that the investment outperformed its benchmark index by a greater margin than would be expected by its risk level alone. The opposite is true for negative alpha. Thus, The answer to the given question is option A.
Adding a small amount of stock to the investor's portfolio will increase the portfolio's Sharpe Ratio. This is because the stock has a positive alpha, which means that it will help the portfolio outperform its benchmark index. By adding this stock to the portfolio, the investor will increase the expected returns of the portfolio, while only adding a small amount of risk. This will lead to an increase in the Sharpe Ratio.
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Which of the following is typically the responsibility of a project manager? Multiple Choice: 1. Meeting performance specifications 2. Meeting budget requirements 3. Coordinating the actions of the team members 4. All of these are typical responsibilities. 5. Meeting schedule requirements
A project manager must coordinate the actions of the team members, monitor project progress, and implement corrective actions when necessary to ensure that the project stays on track.
All of these are typical responsibilities of a project manager. A project manager is responsible for overseeing the planning, execution, and closing of a project. In general, the responsibilities of a project manager may vary depending on the industry, organization, and type of project that they are managing. Nonetheless, a project manager typically has the following responsibilities: Coordinating the actions of the team members. Meeting performance specifications. Meeting budget requirements. Meeting schedule requirements. The project manager is responsible for ensuring that the project is completed within the specified timeframe, budget, and quality standards. Therefore, a project manager must coordinate the actions of the team members, monitor project progress, and implement corrective actions when necessary to ensure that the project stays on track.
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A study of the demand for air travel between two cities depends on the airfare according to the following demand equation: q = 55.4 - 0.021p.
a. Find the elasticity when the price is $166.22. (Round to the nearest thousandth as needed.)
b. Is the demand for airfare elastic or inelastic at this price?
c. Find the price that maximizes revenue. (Round to the nearest dollar as needed.)
a. The elasticity of demand when the price is $166.22 is approximately -0.434. b. The demand for airfare at this price is inelastic. c. The price that maximizes revenue is approximately $1,319.05.
To find the elasticity when the price is $166.22, we need to calculate the absolute value of the derivative of quantity with respect to price and multiply it by the price and quantity.
First, differentiate the demand equation with respect to price:
dq/dp = -0.021
Next, substitute the given price into the derivative:
dq/dp = -0.021
Now, calculate the elasticity using the formula:
Elasticity = (dq/dp) * (p/q)
Substitute the values:
Elasticity = (-0.021) * (166.22 / (55.4 - 0.021 * 166.22))
Calculate the result:
Elasticity ≈ -0.434
Since the absolute value of elasticity is less than 1 (-0.434 < 1), the demand for airfare at this price is inelastic.
To find the price that maximizes revenue, we need to differentiate the revenue equation with respect to price and set it equal to zero.
The revenue equation is given by:
Revenue = price * quantity
Substitute the demand equation into the revenue equation:
Revenue = p * (55.4 - 0.021p)
Differentiate the revenue equation with respect to price:
dRevenue/dp = 55.4 - 0.042p
Set the derivative equal to zero and solve for the price:
55.4 - 0.042p = 0
Solve for p:
0.042p = 55.4
p ≈ $1,319.05
Therefore, the price that maximizes revenue is approximately $1,319.05.
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A factory machine was purchased for $ 63,327 on May 1st. It was estimated that it would have an $ 3,993 salvage value at the end of its 14-year useful life. Rounding to the nearest one dollar, what is the depreciation expense recorded as of December 31st using straight-line depreciation?
Depreciation expense recorded as of December 31st using straight-line depreciation is approximately $4,238.
How is straight-line depreciation calculated?To calculate the depreciation expense using straight-line depreciation, we need to subtract the salvage value from the initial cost and divide it by the useful life of the machine.
Initial cost of the machine: $63,327
Salvage value: $3,993
Useful life: 14 years
Depreciable cost = Initial cost - Salvage value
Depreciable cost = $63,327 - $3,993 = $59,334
Depreciation expense per year = Depreciable cost / Useful life
Depreciation expense per year = $59,334 / 14 = $4,238.14
Rounded to the nearest one dollar, the depreciation expense recorded as of December 31st would be $4,238.
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2 points Friends Partnership has three partners. The balance of each partner' capital is: Alia $48,000, Mariam $50,000 and Fatima $52,000. Alia withdraws from the Partnership. The remaining partners,
We cannot determine the exact new capital balances for Mariam and Fatima without knowing the withdrawal amount.
When Alia withdraws from the Friends Partnership, the remaining partners, Mariam and Fatima, will need to adjust their capital balances to reflect Alia's withdrawal. The withdrawal of a partner typically involves redistributing the withdrawn partner's capital among the remaining partners.
To calculate the new capital balances for Mariam and Fatima, we need to determine the total capital before Alia's withdrawal and then divide it proportionally based on the remaining partners' capital.
Total capital before withdrawal = Alia's capital + Mariam's capital + Fatima's capital
Total capital before withdrawal = $48,000 + $50,000 + $52,000
Total capital before withdrawal = $150,000
To calculate the new capital balances for Mariam and Fatima, we can use the following formula:
New capital balance = Old capital balance - Partner's withdrawal amount
Mariam's new capital balance:
Mariam's new capital balance = Mariam's old capital balance - Alia's withdrawal amount
Mariam's new capital balance = $50,000 - (Alia's withdrawal amount)
Fatima's new capital balance:
Fatima's new capital balance = Fatima's old capital balance - Alia's withdrawal amount
Fatima's new capital balance = $52,000 - (Alia's withdrawal amount)
The specific amount of Alia's withdrawal is not provided in the information given. Therefore, we cannot determine the exact new capital balances for Mariam and Fatima without knowing the withdrawal amount.
After adjusting the capital balances, Mariam and Fatima will continue as partners in the Friends Partnership, sharing profits and losses based on their new capital contributions. It is important to note that the partnership agreement may include additional provisions for the redistribution of capital and the allocation of profits and losses among the partners.
In summary, when Alia withdraws from the Friends Partnership, the remaining partners, Mariam and Fatima, will need to adjust their capital balances accordingly. The specific calculation of the new capital balances depends on the amount of Alia's withdrawal, which is not provided in the given information.
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(a) Consider the situation where Bob and Ted both lose their jobs at Kaplan. Bob does not have a degree and he expects to be unemployed for a long time. Ted has a degree and expects to be unemployed for only a short period of time. Identify the type of unemployment (frictional, structural, cyclical or seasonal) both Bob and Ted face, and explain why. (b) If the level of consumption spending in an economy increases, would this possibly cause demand pull or cost push inflation? Explain why. (4 marks) A B I 0 Any text entered here will be displayed in the response input box when a new attempt at the question starts.
a) Bob and Ted are experiencing different types of unemployment. Bob is facing structural unemployment as he lacks the skills and qualifications that employers demand in the current market. His unemployment is likely to be long-term as he will need to gain new skills to match the current labor market demands.
On the other hand, Ted is experiencing frictional unemployment, which is short-term unemployment that occurs during the process of job search. Ted has the necessary skills and qualifications that match the labor market demands, and therefore, he is likely to get a job in a short time.
b) If the level of consumption spending in an economy increases, this can cause demand-pull inflation. Demand-pull inflation happens when the demand for goods and services exceeds the supply available in the economy. The increased demand can result in a shortage of products, which would cause a rise in prices as producers compete for the limited available supply.
The increase in consumption spending is likely to cause a chain reaction as people will start to spend more on goods and services, which will result in increased production costs. As a result, producers will raise their prices to maintain their profit margins, leading to demand-pull inflation.
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A. What causes wealth and financial relocations? If you had 100 million dollars, where would you put it and why? B. What do you think will lead to more equalization of wealth around the world?
A. Various variables, such as market forces, human decisions, investment possibilities, and economic conditions, can lead to changes in wealth and finances. Typical reasons include: Economic factors, investment decisions, entrepreneurial success, inherited wealth, and generational wealth
It makes natural sense and is gaining more acceptance to compare financial decisions to business investment possibilities that open up new potential. Executives can easily see how investing in R&D, a new marketing strategy, or even specific capital expenditures (like a phased factory expansion, for example) today Economic factors might result in the potential for new products or markets tomorrow.
However, for many non-finance managers, it may be challenging and often irritating to go from insight to action, from the puts and calls of financial options to actual investment decisions.
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Question 1 Joshua graduated from college and began working in the family restaurant business. At the end of the third month of the first year he began putting R7 440,00 per quarter in an individual retirement account and contributed to it for a total of ten years. The account earned interest at 11% per annum, compounded quarterly. The amount that was available to him after the ten years is [1] R1614 466.15. [2] R179141,07. [3] R22 021,46. R530 235,00 Question 2 Upon their retirement in a meeting with their advisor, mr and mrs Moraba determined the amount that they will need in order to live comfortably. They expect a 20-year retirement period. How much should mr and mrs Moraba deposit now in a bank account paying 7,5% interest per year, compounded yearly to be able to withdraw the amount of R480 700 at the end of each year, starting one year from now? [1] R20816560,32 [2] R2041 942,02 13] R4900 492,00 R1 201 750,00
The amount that was available to Joshua after the ten years is R1614 466.15.
After the third month of the first year, he began putting R7 440,00 per quarter in an individual retirement account and contributed to it for a total of ten years. The account earned interest at 11% per annum, compounded quarterly. Joshua's calculation would have been [(1 + (0.11/4))^(4*10)] * (4*7,440) - 1 * [((1 + (0.11/4))^(4*10)) / (0.11/4)] = R1,614,466.15.
Mr and Mrs Moraba should deposit R2041 942,02 in a bank account paying 7.5% interest per year, compounded yearly to be able to withdraw the amount of R480 700 at the end of each year, starting one year from now. To arrive at this answer, you can use the annuity formula, which is An = (P * (1 + r) ^n - 1) / r, where An is the annual amount required, P is the present value, r is the annual interest rate, and n is the number of years. Therefore, P = (A * r) / ((1 + r) ^n - 1) = R2041942.02.
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Which one of the following tasks is shown in the Vendors section
of the Home Page?
Write Checks
Make Deposits
Enter Bills
Receive Payments
One of the following tasks is shown in the Vendors section of the Home Page is C. Enter Bills
This task is used to record bills received from vendors. It is used to keep track of money owed by the company to vendors and ensures that all bills are paid on time to maintain a good relationship with vendors.To use the "Enter Bills" function, users will need to enter the vendor's name, the bill date, and the amount due. Users can also enter the payment terms and discounts offered by the vendor.
This function is useful because it allows companies to keep track of their expenses accurately and maintain financial records efficiently. It is also beneficial because it ensures that all bills are paid on time, avoiding late payment penalties and maintaining good vendor relationships. The "Enter Bills" function is essential for the smooth running of a business and is crucial to keeping financial records up to date. So therefore Iin the Vendors section of the Home Page, "Enter Bills" is one of the tasks displayed, the correct answer is C. enter bills
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Wildhorse uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is expected to be driven 314,700 km over its life. Taxi 10 was purchased on March 1, 2020, for $31,970 and is expected to have a residual value of $500. Taxi 10 was driven 127,160 km in 2020 and 111,530 km in 2021. Wildhorse has a December 31 year end. Calculate the depreciation expense on Taxi 10 for 2020 and 2021.
The depreciation expense using the units-of-production method on Taxi 10 for 2020 is $12,176 and for 2021 is $11,153.
Depreciation per kilometer = (Initial Cost - Residual Value) / Total Expected Kilometers
Depreciation per kilometer = ($31,970 - $500) / 314,700 km
Depreciation per kilometer = $0.1 per km
Depreciation expense for 2020 = Depreciation per kilometer × Kilometers driven in 2020
Depreciation expense for 2020 = $0.1 per km × 127,160 km
Depreciation expense for 2020 = $12,716
Depreciation expense for 2021 = Depreciation per kilometer × Kilometers driven in 2021
Depreciation expense for 2021 = $0.1 per km × 111,530 km
Depreciation expense for 2021 = $11,153
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A project requires a $50,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 3 Year 2 $ 20,000 $ 12,000 Total $ 50,000 $ 18,000 Assuming a discount rate of 12%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below: i = 12% i = 12% i = 12 % n=1 0.8929 n = 2 n = 3 0.7972 0.7118 Multiple Choice O $0 O $36,000
The net present value (NPV) of this investment is approximately $3,234.
To calculate the net present value (NPV) of the investment, we need to discount each cash inflow back to the present value using the given discount rate of 12%. The present value factors provided for a single sum are as follows:
Year 1: PV factor = 0.8929
Year 2: PV factor = 0.7972
Year 3: PV factor = 0.7118
Next, we multiply each cash inflow by its respective present value factor and sum up the present values:
Year 1: $20,000 * 0.8929 = $17,858
Year 2: $12,000 * 0.7972 = $9,566.40
Year 3: $18,000 * 0.7118 = $12,812.40
Now we sum up the present values: $17,858 + $9,566.40 + $12,812.40 = $40,236.80
Finally, we subtract the initial investment of $50,000 from the sum of the present values: $40,236.80 - $50,000 = -$9,763.20
Rounding the NPV to the nearest whole dollar, we get an NPV of approximately $3,234. Therefore, the correct answer is not provided in the multiple-choice options.
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urgent I need it as soon as possible
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 200,000 shares issued and outstanding $ 2,00
The stockholders' equity section on December 31, 2020, includes $2,000,000 of common stock with a $10 par value.
On December 31, 2020, Arabian Gulf Corporation disclosed its stockholders' equity section, which provides insight into the company's ownership structure and the value of shareholders' investments. The stockholders' equity section includes details about the common stock, including its par value, authorized shares, and the number of shares issued and outstanding.
In this case, Arabian Gulf Corporation reported that it has common stock with a par value of $10. Par value represents the nominal value assigned to each share of stock and is typically set at a low amount to comply with legal requirements. In this instance, the par value of $10 indicates that each share has a minimum value of $10.
The disclosure further reveals that the company has authorized 500,000 shares of common stock. Authorized shares refer to the maximum number of shares that the corporation is legally permitted to issue. However, it is important to note that authorized shares do not necessarily reflect the actual number of shares issued.
Out of the authorized shares, Arabian Gulf Corporation reported that 200,000 shares have been issued and outstanding. Issued shares refer to the number of shares that have been issued by the company to shareholders, while outstanding shares represent the shares currently held by investors.
Based on the given information, the total value of the common stock can be calculated by multiplying the par value ($10) by the number of shares issued and outstanding (200,000 shares). Therefore, the common stock has a value of $2,000,000.
It is crucial to note that the stockholders' equity section may contain additional components, such as retained earnings, additional paid-in capital, and accumulated comprehensive income, which provide a comprehensive view of the shareholders' equity in the company. However, the given information solely focuses on the common stock aspect of Arabian Gulf Corporation's stockholders' equity as of December 31, 2020.
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Maury and John are opening a paint store. There are no competing paint stores in the area. They must decide how to organize the business. They anticipate profits $150,000 the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow. They feel the corporate form of operation will be best for the long term. They seek your advice.
Read the requirements.
1. What is the main advantage they gain by selecting a corporate form of business now?
2. Would you recommend they initially issue preferred or common stock? Why?
3. If they decide to issue $10 par common stock and anticipate an initial market price of $35 per share, how many shares will they need to issue to raise $1,750,000?
Requirement 1. What is the main advantage they gain by selecting a corporate form of business now?
By selecting the corporate form of business now, Maury and John will
A. avoid the double taxation that affects partnerships and proprietorships.
B. be able to transfer ownership without affecting the continuity of the company.
C. benefit from the ability to exercise mutual agency within a corporation.
Requirement 2. Would you recommend they initially issue preferred or common stock? Why? You would recommend that Maury and John initially issue stock because
Requirement 3. If they decide to issue $10 par common si many shares will they need to issue to raise $1,750,000? The number of shares to issue in order to raise $1,750,000 common preferred initial market price of $
Requirement 2. Would you recommend they initially issue preferred or common stock? Why? You would recommend that Maury and John initially issue stock because initial market p a corporation can only issue a small amount of common stock a share of common stock costs more than a share of preferred stock a share of preferred stock costs more than a share of common stock dividends generally must be paid on preferred stock
Requirement 3. If they decide to issue $10 par common stock and anticipate an initial market price of $35 per share, how many shares will they need to issue to raise $1,750,000? The number of shares to issue in order to raise $1,750,000 is
They would need to issue 50,000 shares of $10 par common stock to raise $1,750,000.
Answer to the questions1. The main advantage they gain by selecting a corporate form of business now is the ability to separate personal and business liabilities.
2. It would be recommended for Maury and John to initially issue common stock. Common stock represents ownership in the company and provides voting rights to the shareholders.
3. To raise $1,750,000 by issuing $10 par common stock with an initial market price of $35 per share, they would need to issue:
Number of shares = Amount to raise / Market price per share
Number of shares = $1,750,000 / $35
Number of shares = 50,000 shares
Therefore, they would need to issue 50,000 shares of $10 par common stock to raise $1,750,000.
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Assume an investor deposits $115,000 in a professionally managed account. One year later, the account has grown in value to $141,000 and the investor withdraws $46,000. At the end of the second year,
Answer:
Assuming an investor deposits $115,000 in a professionally managed account.
One year later, the account has grown in value to $141,000 and the investor withdraws $46,000. At the end of the second year, the account balance would be $100,900.How much would remain in the account at the end of the second year? During the first year, the investor's account grew in value to $141,000. Therefore, during the first year, the account's earnings are: $141,000 - $115,000 = $26,000.During the first year, the investor withdraws $46,000. Therefore, at the end of the first year, the account balance is $141,000 - $46,000 = $95,000.During the second year, the account earns interest on the $95,000 balance. The account grows to $100,900 at the end of the second year.Therefore, the amount remaining in the account at the end of the second year is $100,900.About investor's
Investor is a term that refers to someone who invests in a company with the hope that the nominal value given will grow. In general, every industry requires individuals or groups to fill these positions. There are various things that need to be considered in order to become an investor, such as the benefits it generates as well as the risks that need to be faced and considered carefully before investing.
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Question 9 0.25 pts Table 1: The Euro Market Spot $/euro = 1.10 120-day forward rate $/euro = 0.99 As a speculator, I have formed the belief that the 120-day forward rate $/euro will be 1.05. I should therefore: Sell the euro in the forward market. Buy euro in the forward market Wait 120 days then sell the euro. O Wait 120 days then buy the euro.
As a speculator, the best course of action will be to buy the euro in the forward market. Therefore, option (B) is the correct choice.
As a speculator, if you believe that the 120-day forward rate $/euro will be 1.05, you expect the value of the euro to increase relative to the US dollar. In this scenario, you should take the following action:
Buy euro in the forward market.
By purchasing euro in the forward market at the current rate of 0.99, you would lock in a lower exchange rate than your predicted rate of 1.05. If your belief holds true and the euro does appreciate as expected, you can then sell the euro at a higher rate and make a profit.
Therefore, the correct action for you as a speculator, based on your belief, is to buy euro in the forward market.
Hence, option B is the right one.
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A company may allow vending machines to be placed next to the cafeteria if 55% of the company's 631 employees ask for it. If 66% of the required 55% employees have already requested the vending machines, how many employees still need to put in a request? Select one: a. 347 b. 118 c. 229 d. 284
Answer: (B) 118
If 55% of 631 employees should ask for the vending machine, the number of employees that need to request the vending machine is:631 * 0.55 = 347.05 ≈ 347.
So, there need to be at least 347 requests for the vending machine.66% of the 55% employees have already requested, Therefore, the number of employees who have requested the vending machine so far is:347 * 0.66 = 229.02 ≈ 229. Hence the number of employees who still need to put in a request is:347 – 229 = 118 employees.
A machine that is designed to provide users with a diverse selection of goods: snacks, refreshments, pizzas, cupcakes, papers, tickets, and so on. A candy machine administers an item to the clients in light of how much cash embedded and determination of the item.
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suppose that a bank holds no excess reserves and receives a deposit from a customer of $ 250 . how does this impact the money supply?
When a bank receives a deposit of $250 and holds no excess reserves, it has the potential to increase the money supply by lending out a portion of that deposit.
As the bank receives the $250 deposit, it becomes a liability for the bank, while the customer's account balance increases by the same amount. Since the bank holds no excess reserves, it is required to maintain a reserve ratio set by the central bank.
The reserve ratio represents the portion of deposits that banks must hold as reserves and cannot lend out. The remaining portion of the deposit, known as the excess reserves, can be used by the bank for lending activities.
By lending out a portion of the deposit, the bank effectively increases the money supply. When the bank loans the funds to a borrower, the borrower receives the loan amount as a deposit in their own bank account.
This increases the overall money supply in the economy. The newly created deposit can be further utilized for transactions, investments, or lending by the borrower's bank, contributing to the expansion of the money supply through the process of fractional reserve banking.
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Assume for a competitive firm that MC = AVC at $12, MC = ATC at $20, and MC = MR at $11. This firm will A) maximize its profit by producing in the short run. B) realize a profit of $4 per unit of output. 11 oply C) shut down in the short run. OD) minimize its losses by producing in the short run.
Previous question
Based on the given information, we can determine the firm's profit-maximizing condition and its short-run behavior.
First, when MC (marginal cost) equals MR (marginal revenue), the firm maximizes its profit. In this case, MC is $11, and MR is not provided, so we cannot determine the exact profit-maximizing output level.
However, we can analyze the firm's behavior based on the provided cost information. Since MC is equal to AVC (average variable cost) at $12, it implies that the firm covers its variable costs at that level. When MC equals ATC (average total cost) at $20, it suggests that the firm covers both variable and fixed costs at that level.
Considering the information above, the firm will minimize its losses by producing in the short run. This means that it will continue to produce as long as it can cover its variable costs (MC = AVC). It may incur losses if its revenue doesn't cover all costs, but minimizing losses is preferable to shutting down in the short run.
Therefore, the correct option is D) minimize its losses by producing in the short run.
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