An investor would be indifferent between the portfolio and the risk-free asset at a level of risk aversion, A = 0.62. The correct answer is option f. 1.62.
What is the Utility function?A utility function is a decision-making model used by investors and other stakeholders in the market. It allows us to determine the amount of risk associated with the portfolio in question.
Bodie, Kane, Marcus's textbook chapter 6 describes a quadratic utility function that is widely used.
This formula is used in this question. Expected utility function formula:
The expected utility function formula is given as follows: U = E(R) − 0.5 × A × σ².
Here, U is the utility function, E(R) is the expected return, σ² is the variance, and A is the risk aversion coefficient.
Formula to determine A:
A quadratic equation can be used to find A. The formula is given as follows:
((E(R1) – Rf) / σ1) / A = ((E(R2) – Rf) / σ2) / A.
Here, Rf is the risk-free rate, and the subscripts 1 and 2 represent the portfolio and the risk-free rate, respectively.
Plugging in values:
E(R1) = 13.7%
Rf = 4%
σ1 = 12%
Plugging in the values, we get the equation as follows:(13.7 – 4) / 12 = 1.62 x A.
Simplifying the equation further, we get:
A = 0.62.
Thus, an investor would be indifferent between the portfolio and the risk-free asset at a level of risk aversion, A = 0.62.
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Compound interest For Problems 37-39, calculate the periodic rate. 37. 6% compounded semiannually 38. 9% compounded quarterly 39. 10.5% compounded monthly 40. Laurie Ingalls loans a friend $400 at 5% simple interest for 3 years. What is the maturity value? 41. Troy Woods deposits $400 in a savings account. The money is left on deposit for 3 years earning 5% compounded annually. Calculate the account balance at the end of 3 years. 42. Isaac Franco deposits $400 in a savings account. The money is left on deposit for 3 years earning 5% compounded semiannually. Calculate the account balance at the end of 3 years. Do not round intermediate results. 43. Refer to Problems 40-42. Who ended up with the most money, and why? 44. You just received your yearly bonus from work and have decided to deposit the money in a savings account. Your bank pays 5.75% compounded quarterly, and your credit union pays 5.85% compounded annually. Determine which rate provides the greater return by calculating the APY for each.
The periodic rate when 6% is compounded semiannually can be calculated as follows.
R = 6% /
2 = 3%
Therefore, the periodic rate is 3%.
38. The periodic rate when 9% is compounded quarterly can be calculated as follows:
R = 9% / 4
= 2.25%
Therefore, the periodic rate is 2.25%.
39. The periodic rate when 10.5% is compounded monthly can be calculated as follows:
R = 10.5% / 12
= 0.875%
Therefore, the periodic rate is 0.875%.
40. The maturity value when Laurie Ingalls loans a friend $400 at 5% simple interest for 3 years can be calculated as follows:
M = P × (1 + rt)
Where,
M = maturity value
P = principal
= $400
r = interest rate per year
= 5%
t = time in years
= 3 years.
Now, substituting the given values, we get:
M = $400 × (1 + 5% × 3)
= $460.
Therefore, the maturity value is $460.
42. The account balance when Isaac Franco deposits $400 in a savings account for 3 years earning 5% compounded semiannually can be calculated as follows:
A = P(1 + r/n)nt
Where,
A = account balance
P = principal
= $400
r = annual interest rate
= 5%
= 0.05
n = number of times compounded per year
= 2t
= number of years
= 3 years.
Now, substituting the given values, we get:
A = $400(1 + 0.05/2)2×3
= $466.05.
Therefore, the account balance at the end of 3 years is $466.05.
43. In problem 40, the maturity value is $460.In problem 41, the account balance at the end of 3 years is $463.
44. The annual percentage yield (APY) when the bank pays 5.75% compounded quarterly can be calculated as follows:
APY = (1 + r/n)n - 1
Where,
r = annual interest rate
= 5.75%
= 0.0575
n = number of times compounded per year
= 4.
Now, substituting the given values, we get:
APY = (1 + 0.0575/4)4 - 1
= 5.87%.
Therefore, the APY is 5.87%.
The APY when the credit union pays 5.85% compounded annually can be calculated as follows:
APY = 5.85%
= 0.0585.
Therefore, the APY is 5.85% which means the bank provides the greater return.
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Use the PESTEL Framework to your assigned country (Algeria). Complete a PESTEL form for the Algeria, and select which company would be more linkely to invest (KIA Motors or BMW)
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+ Items that promote doing business in a country are in general positive factors Items that increase the risk of doing business in a country are in geneal negative PESTEL TEMPLATE
The Algerian government offers some incentives, such as the ability to repatriate profits and free repatriation of investment capital. However, bureaucracy is a challenge for businesses when it comes to obtaining permits and licenses. PESTEL Analysis for Algeria
Political Factors: The political system of Algeria is in a transitional phase. However, the government's attempts to improve public services, security, and stability provide an opportunity for companies seeking to enter the country.
Economic Factors: Algeria has vast energy resources and has benefited from high oil prices. However, the country's economic situation is still dependent on oil, which exposes it to volatility in commodity prices.
Social Factors: Algeria has a youthful population, with more than half of the population under the age of 30. There is a growing middle class, and the country is witnessing urbanization.
Technological Factors: Technological advancements in Algeria are lagging, which could be an obstacle for companies that require high-tech infrastructure.
Environmental Factors: Algeria is exposed to the effects of climate change and the depletion of natural resources. However, the country has a vast potential for renewable energy sources, which is not yet fully exploited.
Legal Factors: The legal system in Algeria has undergone recent changes to encourage foreign investment. Algeria is part of several trade agreements, which provides preferential market access.
Therefore, KIA Motors would be more likely to invest in Algeria than BMW, due to the fact that KIA Motors is a Korean company that focuses on affordable cars for consumers. KIA Motors can provide affordable cars to a growing middle class and meet the demands of a young and emerging market.
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You are given the following information about Cullumber Plumbing Company. Revenues in 2020 totaled $960.00, depreciation expenses $92.00, costs of goods sold $397.00, and interest expenses $57.00. At the end of the year, current assets were $124.00 a current liabilities were $102.00. The company has an average tax rate of 29.00 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25.)
An income statement is a financial statement that provides information about the performance of a company over a specific period of time. It shows a company’s revenues, costs, and expenses and net income (or loss) for a particular time frame.
In order to calculate Cullumber Plumbing Company’s net income, we need to set up an income statement using the provided information.
The income statement format is as follows:
Revenues - Cost of Goods Sold = Gross Profit - Operating Expenses - Depreciation Expense - Interest Expense = Taxable Income - Taxes = Net Income
Now, let's fill in the income statement using the information provided in the problem:
Revenues: 960.00Cost of Goods Sold: 397.00Gross
Profit: 563.00Operating
Expenses: 0Depreciation
Expense:92.00Interest
Expense: 57.00Taxable
Income: 414.00Taxes (29% of Taxable Income):
120.06
Net Income: 293.94
Therefore, Cullumber Plumbing Company’s net income for the year 2020 is 293.94.
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Projecting inventory levels for next year would be an example of, Select one: O a. Financial accounting O b. Managerial accounting O c. Tax accounting O d. None of the above 4 ed out of n The benefits of providing a certain level of accounting information must outweigh the cost. This represen Select one: O a. Cost-effectiveness O b. Reliability O c. Conservatism O d. Matching
Projecting inventory levels for the next year would be an example of Managerial Accounting. Option (B) is the correct answer.In accounting, Managerial Accounting involves preparing and using financial and nonfinancial data to help in making organizational choices.
It is also known as management accounting, and it is used to track internal financial data and to forecast the firm's future economic performance. Managerial accounting is concerned with providing internal stakeholders with relevant financial information that they may use to make informed choices about the firm's future direction, as well as to establish organizational goals and objectives. It enables management to understand the costs associated with running the organization, allowing them to plan, budget, and forecast for future growth and development.
Thus, projecting inventory levels for the next year would be an example of Managerial Accounting. Benefits of providing a certain level of accounting information must outweigh the cost. This represents cost-effectiveness. Option (A) is the correct answer.Cost-effectiveness is a principle that involves comparing the advantages of providing a certain level of accounting information with the costs of doing so.
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Juanita was covered under Basic FEGLI with 2 multiples of Option B when she resigned on January 23, 1997. She returned to federal service on March 15, 1997. Determine Juanita’s correct FEGLI coverage, assuming she did not experience a Qualifying Life Event during separation or within 60 days before separating
Check all that apply.
Because Juanita had a break in service of more than 30 days, allow her to make a new FEGLI coverage election.
Allow Juanita to cancel her FEGLI coverage.
Reinstate the Basic coverage with 2 multiples of Option B upon Juanita’s reinstatement.
None of the above.
Juanita was covered under Basic FEGLI with 2 multiples of Option B when she resigned on January 23, 1997. She returned to federal service on March 15, 1997.
To determine Juanita’s correct FEGLI coverage, assuming she did not experience a Qualifying Life Event during separation or within 60 days before separating,
here are the details we need to know:
Juanita was not covered under Basic FEGLI with 2 multiples of Option B for at least 5 years continuously.She did not experience a Qualifying Life Event (QLE) during separation or within 60 days before separating. If Juanita was out of the service for less than 31 days, her previous FEGLI coverage would be reinstated.
However, because she was out of the service for more than 30 days, she can choose her FEGLI coverage again.
The correct answer would be:
Because Juanita had a break in service of more than 30 days, allow her to make a new FEGLI coverage election.
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Tim Urtan, ownerlmanager of Urban's Motor Court in Key West, is considering cutsoureng the daly room cleanup for his mowel to Dult/s Mald Senvice. Tem rents an average of 50 roorris for esch of 365 nights (365 * 50 equalis the total rooms rented for the year). Tims cost to clean a room is $13.50. The Dullys Maid Service quote is $19.00 per room plus a fued cost of $25,000 for surndry hems such as uniforms with the moters name. Tim's annual fixed cost for space, equipment, and auppiles is $65.000. Based on the given informason related to costs foc each of the options, the crossover point for Tim = room nights (round your response fo the nearest whole number?.
7273 room nights need to be sold to make Dully's Maid Service a better option for Tim Urtan, the owner of Urban's Motor Court in Key West. So, the crossover point for Tim = 7273 room nights (rounded to the nearest whole number).
Crossover point refers to the stage where the cost of two different products or services are the same. To calculate the crossover point for Tim, we have to equate the two cost equations.
Tim's Cost equation: y = 13.5x + 65,000
Dully's Maid Service equation: y = 19x + 25,000
To find the crossover point, equate the two cost equations13.
5x + 65,000 = 19x + 25,00013.5x - 19x = -40,000-5.5x = -40,000x = 40,000/5.5x = 7272.727
Approximately 7273 room nights need to be sold to make Dully's Maid Service a better option for Tim Urtan, the owner of Urban's Motor Court in Key West. So, the crossover point for Tim = 7273 room nights (rounded to the nearest whole number).
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Business Case Study 2 - Building a visual Process Model in Business:
Put yourself in the shoes of a machine manufacturer. Your boss comes to you and says: "I want you to build a business process for how we handle repairs. It's not really working today, so forget anything we do today and start with a blank sheet of paper. This about the best way to do this." The model that you need to build should have at least 20 activities and probably a lot more events than that. Let's look at a few facts to give you the background. The machines are similar to the ones you see in the picture on slide 32. They are fancy and very expensive ($1,200 to $3,500). These are machines are used in high-end restaurants and by high-end users such as very discerning espresso drinkers. So think about how you're going to build your process for repairing the machine.
Questions to consider:
What are some of the early things you need to do? You probably start the process when a customer calls since they are the ones who experience the problem you need to fix. You may ask them for some preliminary information such as "Describe why it does not work, please?", "Can you tell me whether the little green light is on?" or "Is it plugged in?" Then you need to determine as much about the breakdown as possible. Eventually, you want to find out whether the customer can repair the machine herself e.g. you send parts and instructions or whether they need to send it to you. Equally important, you need to figure out how you handle the different types of customers. A restaurant needs to be able to serve espressos to diners and they probably can't wait for the machine to be fixed in your facility. That could take weeks or months. At the same time, if you design the process to basically overnight a replacement unit to the restaurant and they ship the broken one back to you, then how expensive is that and would you do that for private household consumers as well? Restaurants may be willing to pay $299 a year for a maintenance contract that allows you to cover the cost of sending a new machine in exchange for a broken one, but consumer may not. Essentially, your process could fork into two streams here. On one hand, you could have professional users with a paid warranty (don't forget to check for that when you talk to them on the phone) and household users who do not. The latter may need to send their machine to you and will have to wait for the repair before they get it back.
As a machine manufacturer, building a visual process model for the repair process requires considering the needs and preferences of the customers.
In building the visual process model for repairing the machine, it is important to create a streamlined process that takes into consideration the cost, time, and effort required for repair and customer satisfaction. The process should involve an initial inquiry to gather information about the problem, the nature of the breakdown.
The visual process model should take into account the costs of shipping, replacement, repair, and customer satisfaction. The process should also provide prompt response to the customers, including overnight delivery for professional users if necessary, while ensuring that repairs are done within the shortest possible time to minimize customer dissatisfaction and business loss.
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Digital media and production course.
Read the following article: http://www.photoreview.com.au/tips/editing/ethics-and-editing/
Do you agree that certain photo editing is "tricking" the viewer? Why or Why not? Do you think that photographers who edit their photos should disclose their edits when published? Why or Why not? Is putting a social media filter on your photos significantly changing the photo? Explain.
The photo editing issue has caused widespread debate within the photography industry and is quite controversial. the primary concern is the extent to which these alterations can misrepresent reality and, therefore, deceive the viewer.
Digital media and production course Digital media and production course are courses that teach learners how to use digital media technologies to produce multimedia presentations, websites, and other digital media products. With the advancements in technology, the ability to manipulate digital images has become easy and readily accessible.It is not ethical to trick viewers and publish an image that has been altered beyond what is natural and reasonable.
Putting a social media filter on photos is significantly changing the picture. Filters change the image's colors, contrast, brightness, and saturation, which can alter the mood and visual impact of the photo. Filters are widely used on social media platforms, and they have become an integral part of online photo sharing. However, the problem with filters is that they can distort the photo's original color and appearance, making it difficult for the viewer to know what the image truly looked like. Therefore, it is essential to use filters in moderation and only for the purpose of enhancing the photo's appearance.
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Suppose that M. As a Ay option on February 13, 2010 to BUY 100 stocks of ABC company from Mr. Bin December 2010 at price $50. Mr. B paid $0.7 as option poce per share to M. A. The option is exercisable anytime until maturity. The prices of the underlying stock are $45 and $48 in September 2010 and it maturity respectively. Using the above information in the following blanks.
What kind of option is it?
In September, the option is in-the-money, at-the-money or out-of-the-money? What will be the spot price of the option it is out-of the money in November 2010?
The long position holder in the option is Mr.?
What will be total pay off from the option in September 2010?
The kind of option is a call option. The total payoff from the option in September 2010 is $0.
Based on the given information, an option is a call option as it allows M. A. to buy 100 stocks of ABC company from Mr. B at a price of $50 in December 2010. The option has a premium of $0.7 per share paid by Mr. B to M. A. The option can be exercised anytime until maturity.
In September 2010, with the underlying stock prices at $45, the option is out-of-the-money as the strike price of $50 is higher than the spot price. Therefore, the option has no intrinsic value and the spot price of the option is $0.
The long position holder in the option is Mr. A, who has the right to exercise the option and buy the stocks at the agreed price.
In September 2010, the total payoff from the option would be $0 as it is out-of-the-money and has no intrinsic value. The option holder would not exercise the option in this scenario
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A project has the following discounted cash flows set out below. What is the discounted payback period of this project? Enter your final answer to two decimal places.
The discounted payback period cannot be determined without the discounted cash flows provided in the question.
To calculate the discounted payback period of a project, we need the discounted cash flows associated with the project. Unfortunately, the discounted cash flows are not provided in the question, making it impossible to determine the discounted payback period. The discounted payback period takes into account the time it takes for the project's discounted cash flows to recover the initial investment or reach a positive net present value.
Without the specific cash flow values, it is not possible to calculate the discounted payback period. If the discounted cash flows were provided, we would sum them up until the cumulative discounted cash flows turn positive, indicating the point at which the initial investment is recovered. The time taken to reach that point would be the discounted payback period, which could be reported with two decimal places.
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Most organisations use a year, rather than a week or a month, as the period over which to calculate budgeted cost-driver rates. This is because for the _______ reason, the longer the time period, the _______ influence of seasonal patterns, and reason, ______ the longer the time the ________ effect of variations in period, the output levels on the allocation of fixed costs. -______ costing may result in overpricing and competitors entering a market and taking market share for products that a company erroneously believes are low-margin or even unprofitable. _____costing may result in companies selling products on which they are in fact losing money, when they erroneously believe them to be profitable. Please answer all parts of the question.
Organizations use a year as the period for budgeted cost-driver rates to minimize the influence of seasonal patterns and variations in output levels on fixed cost allocation. Activity-based costing prevents pricing and profitability errors that traditional costing methods may lead to.
Most organizations use a year, rather than a week or a month, as the period over which to calculate budgeted cost-driver rates. This is because for the first reason, the longer the time period, the less influence of seasonal patterns, and thus the longer the time, the less effect of variations in output levels on the allocation of fixed costs. Activity-based costing may result in overpricing and competitors entering a market and taking market share for products that a company erroneously believes are low-margin or even unprofitable. Traditional costing may result in companies selling products on which they are in fact losing money when they erroneously believe them to be profitable.
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Suppose Sarah consumes beef according to the following consumption function: Q=60−0.5P Perform the following: 2. Calculate the quantity demanded by Sarah if the price of beef is a. $10. What if it's b. $18 ? a−55,a−45,a−35,a−55,b−51b−51b−41b−61 Suppose Sarah consumes beef according to the following consumption function: Q=60−0.5P Perform the following: 3. Calculate the price of beef if Sarah consumes a- 25 pounds of beef. b- What if she consumes 50 pounds? a−$70,a−$60,a−$80,a−$70,b−$20b−$20b−$20b−$50
Suppose Sarah consumes beef according to the following consumption function: Q=60−0.5P. Calculate the quantity demanded by Sarah if the price of beef is $10.
What if it's $18?The equation for the given consumption function is:[tex]
Q = 60 − 0.5PPut P = $10 and solve for Q:Q = 60 − 0.5(10)Q = 60 − 5Q = 55[/tex]
Thus, the quantity demanded by Sarah if the price of beef is $10 is 55 pounds of beef.Put[tex]
P = $18 and solve for Q:Q = 60 − 0.5(18)Q = 60 − 9Q = 51[/tex]
Thus, the quantity demanded by Sarah if the price of beef is $18 is 51 pounds of beef.Suppose Sarah consumes beef according to the following consumption function: Q=60−0.5P. Calculate the price of beef if Sarah consumes 25 pounds of beef.The equation for the given consumption function is:
[tex]Q = 60 − 0.5P.Put Q = 25 and solve for P:25 = 60 − 0.5P0.5P = 60 − 25 = 35P = 35/0.5 = $70[/tex]
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ed bok m Ask Print erences Garcia Company sells snowboards. Each snowboard requires direct materials of $120, direct labor of $50, variable overhead of $65, and variable selling, general, and administrative costs of $23. The company has fixed overhead costs of $675,000 and fixed selling. general, and administrative costs of $141,000. It expects to produce and sell 12,000 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Selling price per unit
The calculation of the selling price per unit based on a markup of 10% of the total cost is shown below; Calculation of variable cost:Variable cost = Direct materials + Direct labor + Variable overhead + Variable administrative costs.
Variable cost = $120 + $50 + $65 + $23.Variable cost = $258 per unit. Calculation of total cost:Total cost = Variable cost + Fixed overhead + Fixed administrative costs.Total cost = $258 x 12,000 + $675,000 + $141,000Total cost = $4,191,000 Markup price:Markup price = 10% x Total cost. Markup price = 10/100 x $4,191,000
Markup price = $419,100 Selling price: Selling price = Total cost + Markup price; Selling price = $4,191,000 + $419,100Selling price = $4,610,100; Selling price per unit: Selling price per unit = Selling price / Number of units.
Selling price per unit = $4,610,100 / 12,000.Selling price per unit = $384.18. Therefore, the selling price per unit is $384.
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What is the relationship between interest rates, present values, and investment? 24.There is a decline in the technology coefficient at the same time as the money supply declines. The change in the money supply is much greater than the change in the technology coefficient. Identify and diagrammatically represent what happens to P,Y,N, and W. 25. The size of the labor force increases at the same time as the money supply rises. The change in the size in the labor force is relatively greater than the change in the money supply. Identify and diagrammatically represent the changes in P,Y,W, and N. 26.In year 1 the price level is 100 and Real GDP is $800 billion. In year 2 the price level is 100 and Real GDP is $1,000 billion. Could an increase in the size of the labor force explain what has happened between years 1 and 2 ? Explain and diagrammatically represent your answer. 27. What are three ways to change the after-tax real wage?
The relationship between interest rates, present values, and investment is based on the concept of discounted cash flows. Interest rates play a crucial role in determining the present value of future cash flows, which in turn affects investment decisions.
In general , Present value is the value of a future cash flow in terms of today's dollars. It is calculated by discounting the future cash flows using an appropriate interest rate. Higher interest rates result in a higher discount rate, which reduces the present value of future cash flows. Conversely, lower interest rates decrease the discount rate, leading to a higher present value.
When it comes to investment decisions, the present value of expected cash flows is compared to the initial investment or cost of the investment. If the present value of cash inflows exceeds the initial investment, the investment is considered profitable or worthwhile. Conversely, if the present value is less than the initial investment, the investment may be considered unprofitable or not worthwhile.
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The statement is incorrect.
In a Nash equilibrium, each player's strategy is optimal given the strategies chosen by the other players.
A mixed strategy involves playing different actions with certain probabilities. In a mixed strategy Nash equilibrium, players randomize their actions to achieve the best possible outcome.
However, the expected payoffs of the actions in a mixed strategy Nash equilibrium do not have to be the same for all actions.
The key is that each action in the mixed strategy must have an equal expected payoff. If the expected payoff of one action were higher than another, the player would have an incentive to change the probabilities in the mixed strategy to increase their expected payoff.
A corrected version of the statement could be:
"The expected payoffs of the actions in a mixed strategy Nash equilibrium must be equal, ensuring that each action in the mixed strategy has the same expected payoff."
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give a critical account of the challenges and remedies regarding deal making in Nigeria.
This answer will discuss the challenges and solutions for deal-making in Nigeria. Challenges to deal making in Nigeria. The following are the challenges that come with deal-making in Nigeria:
Corruption: Corruption is a major challenge when it comes to deal-making in Nigeria. Bribes are required to obtain licenses and permits for business, while obtaining contracts and deals.
Political Instability: Political instability is also a challenge to deal-making in Nigeria. The country has a history of civil war, military coups, and ethnic conflicts that hinder stability and lead to uncertainty for foreign investors.Poor Infrastructure is another challenge to deal-making in Nigeria. There are inadequate power, road networks, and communication facilities which hinder business operations.Inconsistent policiesInconsistent policies is another challenge to deal-making in Nigeria. Frequent changes in policies, laws, and regulations create confusion and uncertainty for businesses.Bureaucratic ProcessesBureaucratic processes is another challenge to deal-making in Nigeria. The processes for obtaining licenses, permits, and contracts are lengthy and cumbersome and often result in delays.Solutions for deal-making in Nigeria to ensure successful deal-making in Nigeria, the following solutions are recommended:
Anti-corruption measures: The Nigerian government should take anti-corruption measures seriously and implement laws that will punish offenders. This will help in reducing the issue of corruption and boost foreign investor confidence.Improving Infrastructure:The Nigerian government should focus on improving infrastructure to make the country attractive to investors. This includes the construction of roads, power supply, and communication networks.Policy Stability:The government should provide stable policies that favor foreign investors and do not change frequently. This will create a stable environment for businesses to thrive.Easing Bureaucratic Processes:The government should streamline bureaucratic processes to make it easy for businesses to obtain licenses, permits, and contracts. This will save time and money for businesses.Political Stability is crucial for deal-making in Nigeria. The government should work towards ensuring stability by tackling ethnic and religious tensions, providing security, and creating an enabling environment for businesses to thrive.The Nigerian government can tackle these challenges by implementing anti-corruption measures, improving infrastructure, providing stable policies, easing bureaucratic processes, and ensuring political stability. These will go a long way in attracting foreign investors and promoting business growth.
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Solve for the unknown quantity in Parts (a) through (d) that makes the equivalent value of cash outflows equal to the equivalent value of the cash inflow, F. a. If F= $9,500, G = $550, and N-6, then i= ? b. If F-$9,500, G-$550, and i-5% per period, then N ? C. If G= $1,100, N= 12, and i-10% per period, then F? d. If F= $7,700, N-6, and i= 10% per period, then G-7 Click the icon to view the accompanying cash-flow diagram. Click the icon to view the interest and annuity table for discrete compounding when i-5% per year. Click the icon to view the interest and annuity table for discrete compounding when i-10% per year. a. The interest rate, , is 10.5 %. (Round to one decimal place.) b. The number of years, N, isyears. (Round to one decimal place.)
a. The interest rate, i, is 10.5 %.
Given:
F= $9,500G= $550N= 6
We know that: F= P(A/P,i%,N)+ G(A/F,i%,N)
Where,
A/P = Annuity Present Worth
P/A = Present Worth Annuity
A/F = Annuity Future Worth
F/A = Future Worth Annuity
P/F = Present Worth Future Worth
P/G = Present Worth Gradient
G/P = Gradient Present Worth
P = Present Worth
F = Future Worth
G = Gradient
Substituting the values,
we get:9500= P(A/P,i%,6)+550(A/F,i%,6)
Using the interest and annuity table,
we can calculate the value of (A/P,i%,6) and (A/F,i%,6).
The value of (A/P,i%,6) is 4.2126 and the value of (A/F,i%,6) is 0.7473.
Substituting these values,
we get:9500 = P(4.2126) + 550(0.7473)9500 = 4.2126P + 410.01565.9843 = 4.2126PP = $1406.87
Therefore, the interest rate, i, is 10.5 %.b.
The number of years, N, is 19.4 years.
Given:
F= $9,500G= $550i= 5%We know that: F= P(A/P,i%,N)+ G(A/F,i%,N)
Substituting the values, we get:9500= P(A/P,5%,N)+550(A/F,5%,N)
Using the interest and annuity table,
we can calculate the value of (A/P,5%,N) and (A/F,5%,N).
The value of (A/P,5%,N) is 4.3295 and the value of (A/F,5%,N) is 0.6139.
Substituting these values, we get:9500 = P(4.3295) + 550(0.6139)9500 = 18.745P + 337.645481.3545 = 18.745PN = 19.4 years
Therefore, the number of years, N, is 19.4 years.
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Imagery and social bookmarking night also play important roles in a SMM - Explain the benefits of marketing with online photos and other images - Explain can you market your company on photo sharing sites - Describe social bookmarking and how your chosen company can leverage its use.
Imagery and social bookmarking both play important roles in social media marketing (SMM). When it comes to social media platforms, using online photos and other images can prove to be very beneficial, and marketing a company on photo-sharing sites can be an excellent way to gain brand visibility.
Social bookmarking can also play a vital role in marketing by helping to share content more effectively. Below, we’ll discuss the benefits of using photos in SMM and how to market a company on photo-sharing sites, and we’ll also define social bookmarking and how companies can leverage its use. Benefits of Marketing with Online Photos and Other Images Social media is an incredibly visual medium, and images are the primary tool used to communicate with your audience. Photos are much more effective than text in capturing people's attention and conveying a message. Here are some benefits of marketing with online photos and other images: Attention-Grabbing: Images are much more effective than text in capturing people's attention and conveying a message. Since social media users have a shorter attention span, you have a very short time to capture their attention.
These backlinks can help your website appear higher in search results. Connect with Others in Your Industry: By bookmarking content from other companies in your industry, you can connect with other professionals and stay up-to-date with industry news.
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how
do macro ecomics factors play an important role in OM planning??
give five examples also
How do macro economic factors play an important role in OM planning. Please provide five examples.
Macroeconomic factors play a vital role in Operations Management (OM) planning, especially when considering the factors that impact the entire economy or industry and influence organizational operations. The macroeconomic environment provides various economic indicators that affect organizational productivity and performance.
OM planning is about making strategic decisions and developing systems to manage operations. Macroeconomic factors must be taken into account to ensure that the plans and systems will work effectively. Five examples of macroeconomic factors that play an important role in OM planning include:
1. Gross Domestic Product (GDP) – GDP is a measure of the economy's total output, which is the primary determinant of consumer spending, business investment, and government spending.
2. Interest rates – The level of interest rates determines borrowing costs, which is a critical component of capital investment.
3. Inflation – OM planning must consider inflation rates in pricing, forecasting, and budgeting.
4. Unemployment – Unemployment rate is a measure of the number of people looking for employment. It affects labor costs, availability, and productivity.
5. Exchange rates – Exchange rates determine the value of currency in the international market. It impacts trade, production, and cost of imports and exports.
In conclusion, macroeconomic factors play a significant role in OM planning. Therefore, it is essential to understand how these factors impact organizational operations and integrate them into planning processes.
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For its first taxable year, Rony Incorporated’s accounting records showed the following: Operating loss per books $ (830,000) Temporary book/tax difference 118,000 Net operating loss for tax $ (712,000) Required: Use a 21 percent rate to compute Rony’s deferred tax asset with respect to the $118,000 book/tax difference. Use a 21 percent rate to compute Rony’s deferred tax asset with respect to its $712,000 NOL carryforward. Compute Rony’s tax benefit (negative tax expense) reported on its first income statement.
The tax benefit reported on Rony's first income statement will be the sum of the deferred tax assets. Therefore, the tax benefit will be $24,780 + $149,520 = $174,300. This represents the negative tax expense reported by Rony for its first taxable year.
The deferred tax asset for Rony Incorporated's $118,000 book/tax difference at a 21 percent rate is $24,780. The deferred tax asset for Rony's $712,000 NOL carryforward at a 21 percent rate is $149,520. Rony's tax benefit reported on its first income statement will be the sum of these two amounts.
A deferred tax asset arises when there is a temporary difference between the carrying amount of an asset or liability for accounting purposes and its tax basis. In this case, the $118,000 book/tax difference represents such a temporary difference. Since the book/tax difference is positive, it creates a future taxable amount, and Rony can recognize a deferred tax asset for it. Applying the 21 percent tax rate, the deferred tax asset is computed as $118,000 * 21% = $24,780.
Additionally, Rony has a net operating loss (NOL) carryforward of $712,000. An NOL occurs when tax deductions exceed taxable income. The NOL can be carried forward to future years to offset taxable income and reduce tax liabilities. Rony can recognize a deferred tax asset for the NOL carryforward, again using the 21 percent tax rate. The deferred tax asset is computed as $712,000 * 21% = $149,520.
Finally, the tax benefit reported on Rony's first income statement will be the sum of the deferred tax assets. Therefore, the tax benefit will be $24,780 + $149,520 = $174,300. This represents the negative tax expense reported by Rony for its first taxable year.
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To finance a new laptop, emilie is offered a 4 year payment plan with low monthly payments of $33. 60. The cost of the laptop was $884. 39 including tax. Round to one decimal place, if necessary
Emilie is offered a 4-year payment plan with low monthly payments of $33.60 to finance a laptop that costs $884.39, including tax.
To calculate the total cost of the laptop including financing, we need to multiply the monthly payment by the number of months in the payment plan. Emilie has a 4-year payment plan, which is equivalent to 4 * 12 = 48 months.
The total cost of the laptop with financing is therefore 48 * $33.60 = $1612.80.
However, we are given that the cost of the laptop, including tax, is $884.39. This means that the financing cost is $1612.80 - $884.39 = $728.41.
Rounded to one decimal place, the financing cost is $728.4.
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Malek Company sells a special putter for $20 each. It applies standard costing system. In March, it sold 30,000 putters while manufacturing 32,000. Budgeted putters for March are 33,000. There are no variances other than production volume variance. There was no beginning inventory on March 1. Production information for March is: 15 minutes $40,000 Direct manufacturing labor per unit Fixed selling and administrative costs Fixed manufacturing overhead Direct materials cost per unit 132,000 2 Direct manufacturing labor per hour Variable manufacturing overhead per unit 4 Variable selling expenses per unit 2 Required: 1. Prepare income statement for March under both variable and absorption costing. 2. Reenneile absorption anarating income with variable 24
Income statement for March under both variable and absorption costing:To prepare the income statement under both variable and absorption costing, let's first calculate the cost per unit
Variable Costing:Direct Materials + Direct Labor + Variable Manufacturing Overhead = $2 + $0.25 + $0.25 = $2.50 per unit Absorption Costing:Direct Materials + Direct Labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead per unit = $2 + $0.25 + $0.50 + $0.5 = $3.25 per unit
Fixed manufacturing overhead = $132,000Fixed selling and administrative expenses = $60,000 Absorption costing net operating income = $273,000Variable costing net operating income = $198,000Increase in net operating income from absorption costing to variable costing = $198,000 - $169,000 = $29,000
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Suppose that the graph below represents an INCREASE in the price of Good 1. Find the total, substitution and income effects for the consumption of Good 1. Be sure to show the substitution budget line. C
When the price of a good increases, it leads to a fall in its quantity demanded. This decrease is represented by a movement along the initial demand curve.
In turn, this change in the quantity demanded results in the following three effects: substitution, income, and total effects. These effects are explained below:Substitution Effect:When the price of a good rises, the substitution effect causes consumers to buy less of it.
Because the good has become more expensive, it becomes less attractive relative to other goods whose prices have remained constant. As a result, consumers switch to similar products that are cheaper.
This change in demand due to substitution is represented by a shift from the initial budget line to a new budget line, which is tangent to the original indifference curve and shows that the same level of satisfaction can be obtained at a lower price.
Income Effect:When the price of a good rises, the income effect occurs because the consumer has less money to spend on all goods and services due to the higher price.
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Sheridan Company expects to produce 53,000 units of product XLA during the current year. Budgeted variable manufacturing costs per unit are direct materials $7, direct labour $13, and overhead $17. Annual budgeted fixed manufacturing overhead costs are $92,400 for depreciation and $47,400 for supervision. In the current month, Sheridan produced 5,600 units and incurred the following costs: direct materials $35,280, direct labour $70,600, variable overhead $103,292, depreciation $7,700, and supervision $4,187. Prepare a flexible budget report.
Flexible Budget Report for Sheridan Company Production of product XLA is estimated to be 53,000 units in the current year.
The variable manufacturing costs of Sheridan Company are divided into three sections: direct materials, direct labor, and overhead. The budgeted costs of manufacturing overhead and depreciation are categorized as fixed manufacturing overhead costs. Depreciation costs $92,400 per year, and supervision costs $47,400 per year. Budgeted costs for one unit of product XLA are as follows: Direct Materials = $7Direct Labor = $13Overhead = $17Flexible budget report: Sheridan Company For the current month, Sheridan produced 5,600 units and incurred the following costs: Direct materials ($35,280), Direct labor ($70,600), Variable overhead ($103,292), Depreciation ($7,700), and Supervision ($4,187).A flexible budget report is the result of this.
This budget report will be used to compare actual results with budgeted results. Sheridan Company's budgeted manufacturing cost for one unit of product XLA is $37. The company's manufacturing costs are divided into fixed manufacturing overhead and variable manufacturing overhead.
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SPY:
A. tracks the investment results of an index composed of the total U.S. investment-grade bond market.
B. provides 2x daily leveraged exposure to a market cap-weighted index of 500 large- and mid-cap US companies selected by S&P.
C. tracks the Standard & Poor's (S&P) 500 Index, which comprises 500 large-cap U.S. stocks.
D. bets against the Dow Jones Industrial Average.
SPY is an exchange-traded fund that tracks the Standard & Poor's (S&P) 500 Index, which comprises 500 large-cap U.S. stocks, making option (C) the correct choice.
SPY is the ticker symbol for SPDR S&P 500 ETF, which is an exchange-traded fund (ETF) that tracks the Standard & Poor's (S&P) 500 Index. The S&P 500 is a benchmark index that is a good reflection of the U.S. stock market's performance overall.
The index comprises 500 of the most significant publicly traded companies in the United States by market capitalization and includes companies in different sectors of the economy. As a result, investing in SPY allows investors to obtain diversified exposure to the U.S. stock market in a single investment. So, option (C) the correct choice. \
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Assume a decrase in the price of jean jadobls leads to san increase in the quantity demanded of jeanjackete. Celeris paribus, the gaph of the rolatianship between the price and quantity demanded of jean jacket= Saloct an answar and submit Forkwboard navkation, uce the up/down arruw kaysto caloct on answar. * slopes down ward to the right; illustrating an inverse relationship. b slopes downward to the right, illustrating a direct relationship. c slopes upward to the right, illustrating an inverse relationship. d slopes upward to the right, illustrating a directrelationship. UnansweredHomework * Unanswared If the equation of a line is Y=10+3X, then all of the following are true except- Solact an answarand submie. For kayboard na.4gation, use the upidown atrow kayk to salact an answar. X and Y are positively related. the slepe is 2 and the Y intercept is 10 . the sraph of the equation is a line that slopes upward to the right. when X is equal to 3, Y is equal to 1
When there is a decrease in the price of Jean Jadobls, it leads to an increase in the quantity demanded of jean jacket. Celeris paribus, the gaph of the rolatianship between the price and quantity demanded of jean jacket slopes downward to the right; illustrating an inverse relationship.
The statement is based on the law of demand which states that when the price of a good decreases, the quantity demanded of that good increases, ceteris paribus. The inverse relationship between price and quantity demanded can be shown on a graph where the x-axis represents the quantity demanded and the y-axis represents the price.
The slope of the demand curve is always negative, indicating that as the price of a good increases, the quantity demanded of that good decreases. Similarly, as the price of a good decreases, the quantity demanded of that good increases. Therefore, the correct answer is option b. The graph of the relationship between the price and quantity demanded of jean jacket slopes downward to the right, illustrating a direct relationship.
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Question 1 Abdullah is a senior executive secretary for the CEO of ServeTeck company. As part of his job, he attends meetings and takes minutes. After each meeting, the CEO usually asks him to omit some of the minutes and amend other parts. Abdullah knows what he is doing is unethical but keeps telling himself that it is part of his job. Every time he does this, his feelings of discomfort intensify but he continues to do what the CEO instructs him. 2.5 Points Describe the conflict between his beliefs and behaviour in light of OB concepts. Suggest a scenario for Abdullah to showcase his dissatisfaction, given the fact that Abdullah is shy by nature and has a tendency to be safe and avoid conflicts Use the editor to format your answer
The conflict between Abdullah's beliefs and behavior in light of OB concepts is an ethical dilemma. Abdullah knows that what he is doing is unethical, but he continues to do it because he believes it is part of his job.
This conflict arises when an individual's personal values or beliefs do not align with their actions. Abdullah is faced with a moral decision in which he must choose between his job responsibilities and his personal beliefs. This ethical dilemma is often referred to as cognitive dissonance, where Abdullah is experiencing internal conflict between his thoughts and actions.
Abdullah can showcase his dissatisfaction by using a feedback sandwich. Abdullah can start by providing positive feedback and then move on to negative feedback. Finally, Abdullah can end the conversation with positive feedback. By using this approach, Abdullah can show his dissatisfaction in a constructive manner, which reduces the likelihood of conflict.
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Why is M2 always higher than M1? Consumers and households prefer M2 to M1 M2 can be used more places to buy goods and services M2 includes all of M1 plus other types of deposits and short-term savings All of the above None of the above QUESTION 3 M1 (LINE 1) is smaller than the part of M2 that is not in M1 (LINE 3)? True False QUESTION 4 Which of the following statements best describes the relationship between M1 (LINE 1) and the part of M2 that is not in M1 (LINE 3) They were about the same in 1959 but M1 was much smallerl by 2019 M1 is always smaller M1 is always larger They have always been about the same M1 was much larger in 1959 but they were about the same by 2019
The answer to the first question is "M2 includes all of M1 plus other types of deposits and short-term savings". This is because M2 is a broader measure of the money supply than M1, and it includes all of the items that are in M1 plus other types of deposits and short-term savings. This makes M2 always higher than M1.
The statement in question 3 is false. M1 (LINE 1) is the most narrow definition of the money supply and includes only currency, traveler's checks, and demand deposits (checking accounts). The part of M2 that is not in M1 includes other types of deposits and short-term savings.
Therefore, M1 is larger than the part of M2 that is not in M1.The answer to question 4 is "M1 is always smaller". M1 is the most narrow definition of the money supply and includes only currency, traveler's checks, and demand deposits (checking accounts). The part of M2 that is not in M1 includes other types of deposits and short-term savings. Therefore, M1 is always smaller than the part of M2 that is not in M1.
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You know this dilemma well: You're about to send a message via email or some for of messaging, but you're worried that the right tone won't come across. What if you're trying to be humorously sarcastic, but the recipient thinks you're being serious? Or what if you are trying to be friendly and sympathetic, but the words come across as cold and uncaring?
If you were communicating in person, you could modulate the emotional tone of your message by smiling, using your voice to accent certain words or syllables, shrugging your shoulders, rolling your eyes, or otherwise sending nonverbal signals that help say what your words have trouble saying. Plus, you could monitor the recipient's response and immediately react if you see that the message didn't quite land.
To fine-tune the tone of their written messages, many people resort to emoticons or emojis. Emoticons and emojis can be effective ways to minimize the limitations of a lean medium, which is why so many people now use them for personal and business communication. A smiley face can inject a touch of levity into a tense situation and a frowny face can convey sympathy for someone who has suffered a setback, for example.
Emoticons and emojis have become popular tools for adding emotional context and tone to written messages. They can help bridge the gap between text-based communication and face-to-face interaction by providing visual cues that convey emotions and intentions.
Using emoticons or emojis allows the sender to enhance the clarity of their intended tone and help prevent misunderstandings. For example, a winking face ;) can indicate humor or sarcasm, a smiling face :) can convey friendliness, and a sad face :( can express sympathy or concern.
However, it's important to note that the interpretation of emoticons and emojis can still vary among individuals and across different cultures. Therefore, it's crucial to use them appropriately and consider the context and relationship with the recipient. Some professional settings may require more formal communication without the use of emoticons or emojis.
In addition to emoticons and emojis, other techniques can be employed to enhance the tone of written messages. These include using specific words or phrases, providing additional context, and being mindful of sentence structure and punctuation. Re-reading and proofreading the message before sending it can also help identify potential issues with the tone.
While written communication may always have its limitations compared to face-to-face interaction, employing these techniques can help reduce misunderstandings and ensure that the intended tone of the message is effectively conveyed.
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Prove that the slope of the production function is the same as the MPN. 6. What is a movement factor? a shift factor? 7. Diagrammatically represent the labor market in terms of (1) W and in terms of (2) W/P. Identify the shift factors for Nd and Ns in each labor market. 8. What are the substitution and income effects (with respect to the Ns curve)? 9. Prove that an increase in the money supply will shift the classical Yd curve to the right. 10.Prove that a decline in taxes will shift the Ns curve (in the labor market [ modeled in terms of nominal wages).
6. Movement factor: A change in the quantity of a factor of production without altering the production function.
Shift factor: A change in the entire production function, resulting from factors like technology or efficiency.
7. The Labor market representation:- In terms of W (wage rate): W on the vertical axis, L on the horizontal axis. Nd and Ns curves plotted. Shift factors for Nd include labor productivity, technology, and demand for goods. Shift factors for Ns include population, government policies, and worker preferences.
In terms of W/P (real wage rate): W/P on the vertical axis, L on the horizontal axis. Same shift factors as above, with W/P reflecting purchasing power.
8. Substitution effect: Change in Ns due to relative price of leisure and work. Increase in wages leads to substitution of leisure for work, decreasing Ns.
Income effect: Change in Ns due to change in income from wage change. Increase in wages may lead to increased work effort to maintain/increase consumption, increasing Ns.
9. Increase in money supply shifts Yd curve (aggregate demand) to the right, due to increased spending and higher aggregate demand.
10. Decline in taxes shifts Ns (labor supply) curve to the right, as lower taxes increase net wages, incentivizing more labor supply.
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A decline in taxes shifts the Ns curve (in terms of nominal wages) to the right in the labor market.
The slope of the production function represents the marginal product of labor (MPL), which is the additional output produced by employing an additional unit of labor while holding other inputs constant.
The slope of the production function is the ratio of the change in output to the change in labor input. Mathematically, it can be expressed as MPL = ΔY/ΔL, where MPL represents the marginal product of labor, Y represents output, and L represents labor input.
The marginal product of labor (MPL) is equal to the slope of the production function because it measures the additional output generated by each additional unit of labor. As more labor is added, the MPL indicates the rate at which output increases. Therefore, the slope of the production function and the MPL are equivalent.
(1) Diagrammatic representation of the labor market in terms of W:
In the labor market, the supply of labor (Ns) and the demand for labor (Nd) can be represented on a graph with the wage rate (W) on the vertical axis and the quantity of labor (N) on the horizontal axis.
The Ns curve represents the supply of labor and can be upward sloping, indicating that as wages increase, more workers are willing to supply their labor.
The shift factors for Ns can include changes in preferences, population size, working-age population, government policies, and labor market institutions.
The Nd curve represents the demand for labor and can be downward sloping, indicating that as wages increase, firms demand less labor. The shift factors for Nd can include changes in technology, input prices, demand for goods and services, and government regulations.
(2) Diagrammatic representation of the labor market in terms of W/P:
In this representation, the wage rate (W) is divided by the price level (P), yielding the real wage rate (W/P) on the vertical axis. The quantity of labor (N) is still represented on the horizontal axis.
The Ns curve in this representation still represents the supply of labor and can be upward sloping. The shift factors for Ns remain the same.
The Nd curve in this representation represents the demand for labor in real terms. It can still be downward sloping, reflecting the inverse relationship between the real wage rate and labor demand. The shift factors for Nd also remain the same.
Substitution and income effects with respect to the Ns curve:
The substitution effect refers to the change in the quantity of labor supplied due to a change in the relative price of labor compared to other inputs.
If the wage rate increases, the opportunity cost of leisure increases, and individuals may choose to supply more labor to maximize their income. This leads to a positive substitution effect, resulting in an upward sloping Ns curve.
The income effect refers to the change in the quantity of labor supplied due to a change in real income. If the wage rate increases, individuals may choose to work fewer hours and enjoy more leisure since their higher wage rate provides the same level of income with fewer hours worked. This leads to a negative income effect, resulting in a backward bend in the Ns curve.
Proving that an increase in the money supply will shift the classical Yd curve to the right:
In the classical model, the Yd (aggregate demand) curve represents the total spending in the economy at different price levels. An increase in the money supply affects aggregate demand in the following steps:
Step 1: An increase in the money supply leads to more money circulating in the economy, increasing the purchasing power of individuals.
Step 2: With increased purchasing power, individuals can afford to buy more goods and services, resulting in an increase in aggregate demand.
Step 3: The increase in aggregate demand leads to an upward pressure on prices as businesses respond to the higher demand by raising prices.
Step 4: As prices rise, the Yd curve shifts to the right, representing the higher level of spending at each price level.
Therefore, an increase in the money supply shifts the classical Yd curve to the right.
Proving that a decline in taxes will shift the Ns curve (in terms of nominal wages):
A decline in taxes affects the labor market in the following steps:
Step 1: A decrease in taxes increases workers' take-home pay, effectively increasing their real wage rate (nominal wages adjusted for taxes).
Step 2: With a higher real wage rate, workers may be incentivized to supply more labor, leading to an increase in the quantity of labor supplied.
Step 3: As the quantity of labor supplied increases, the Ns curve shifts to the right, reflecting the higher level of labor supply at each wage rate.
Therefore, a decline in taxes shifts the Ns curve (in terms of nominal wages) to the right in the labor market.
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Reese Company requires sales of $3,000,000 to cover its fixed costs of $1,350,000 and to earn profit of $600,000. What percent are variable costs of sales? a. 20%. b. 35%. c. 45%. d. 65%. Milton Company reported the following results from the sale of 10,000 hammers in May: sales $200,000, variable costs $120,000, fixed costs $60,000, and profit $20,000. Assume that Milton increases the selling price of hammers by 10% on June 1 . How many hammers will have to be sold in June to maintain the same level of profit? Clark Company produces flash drives for computers, which it sells for \$20 each. Each flash drive costs $6 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $4.20 per unit for a total of $4,200 for the month. If variable costs increase by 10%, what happens to the break-even level of units per month for Clark Company? a. It is 10% higher than the original break-even point. b. It increases about 13 units. c. It increases about 30 units. d. It depends on the number of units the company expects to produce and sell.Variable costs for Grass, Ltd. are 25\% of sales. Its selling price is $100 per unit. If Grass sells one unit more than break-even units, how much will profit increase? a. $75.00 b. $25.00 c. $33.33 d. $400.00
Question 1
Given, Sales of Reese Company =3000000Fixed costs of Reese Company=1350000Profit earned by Reese Company=600000
Let's assume the variable cost of sales as X
The equation to calculate the variable cost of sales is.
Profit earned = sales - (fixed cost + variable cost)600000 = 3000000 - (1350000 + X)
Therefore,
X = 750000The variable cost of sales = $750000
The formula to calculate the percentage of variable cost of sales is,
Variable cost percentage = Variable cost of sales / sales * 100
Variable cost percentage = 750000/3000000 * 100
Variable cost percentage = 25%
Therefore, the correct option is (d) 25%.
Question 2
Given, Number of hammers sold in May = 10000
Sales in May 200000
Variable costs in May =$120000
Fixed costs in May =60000
Profit in May =20000
As per the question, Milton increased the selling price of the hammer by 10% in June.
Let's consider the selling price in June as S,
So, the new selling price after 10% increase=S+S*10%=(11/10)S
So, the selling price in June is (11/10)S
Now,
let's assume the number of hammers sold in June = n
The equation to calculate the profit is,
Profit = Sales - (Variable costs + Fixed costs)
We need to find the value of n that yields the same profit as in May (=20000) after a 10% increase in the selling price of hammers.
Therefore, profit will increase by 75 if
Grass Ltd sells one unit more than the break-even units.
Answer:
a. 20%.
b. 10000 hammers.
c. It increases about 30 units.
d. 75.00
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