Answer: $24
Explanation:
Given the following :
Total product for first worker hired = 24
Total product when two workers are hired = 32
Product price = $3 per unit
The marginal revenue product of a worker is equal to the product of the marginal product of labor (MPL) and the marginal revenue (MR) of output.
Marginal revenue product of second worker:
The marginal product of labor :
Change in output when additional labor is added
Therefore, change in product when worker increases from one to two workers ;
32 - 24 = 8 products
Marginal product of labor * product price
8 * $3 = $24
A person borrows $100,000 from the bank for 6 months at an annual simple interest rate of 5%, what steps do you take to determine how much principal and interest are due at the end of the 6 months to determine how much he/she needs to pay to the bank? Please describe how you would solve.
Answer:
$100,000 and $2,500
Explanation:
The computation of the principal and the interest due at the end of the 6 months is shown below:
As we know that
Simple interest is
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $100,000 × 5% × (6 months ÷ 12 months)
= $2,500
The total amount would she paid is
= Principal + interest
= $100,000 + $2,500
= $102,500
The partnership between Toyota and Tesla Motors, in which Toyota has made a $50 million investment in the California startup company to learn new knowledge and gain a window into new technology, is an example of a(n)
Answer: Equity alliance
Explanation: Equity alliance may be explained as an allegiance or business partnership which occurs between two organizations whereby there is an exchange of product, ideas or vision such that both benefit. In the scenario above, Tesla motors are a vibrant technology startup which have proved their innovative edge in recent times, this prompted Toyota's investment decision inn Tesla so that he could tap into Tesla's technology bank and gain technical expertise required to grow. Toyota is coming with money, Tesla is giving out expertise.
On january 1, ace electronics bought a new cash register for $2,500. Ace plans to use the cash register for 4 years and then sell is for $200. If Ace uses straight-line depreciation expense for the 1st year ended December 31 equals________
Answer:
Depreciation expense = $575
Explanation:
According to International Accounting standards(IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.
Annual depreciation = (Cost - Scrap Value)/ Number of years
Cost of asset = 2500
Scrap value - 200
Estimated useful life = 4
Annual depreciation = (2500 - 200)/4 = 575
Depreciation expense = $575
A decrease in the discount rate: Group of answer choices leads to an increase in the interbank rate charged by commercial banks. causes an increase in the federal funds rate. increases reserve holdings of the commercial banks. lowers the cost of borrowing from the Fed. decreases the money supply.
Answer:
lowers the cost of borrowing from the Fed.
Explanation:
The discount rate is the rate that the Fed charges to commercial banks for overnight loans. This loans are only made when commercial banks have no other option, and represent one of the Fed's main functions: acting as lender of last resort.
When the Fed lowers the discount rate, commercial banks can access the Fed as lender of last resort at cheaper interest rates.
Buyline is an e-commerce Web site. It has come up with a promotional offer where buyers get a 60 percent discount on refrigerators if a minimum of 100 buyers agree to buy the product within 24 hours of the offer being announced. In this case, it is evident that BuyLine is a _____.
Answer:
Group buying platform
Explanation:
Group buying platform is also known as collective buying and is when the prices of goods and services are significantly reduced on the condition that a minimum number of buyers make purchase.
Usually there is a deal of the day displayed that is activated when the minimum number of buyers has been reached.
In this scenario Buyline has a promotional offer where buyers get a 60 percent discount on refrigerators if a minimum of 100 buyers agree to buy the product within 24 hours of the offer being announced.
This is a group buying platform
TQK, LLC, provides consulting services and was formed on 1/31/X5. Aaron and ABC, Inc., each hold a 50 percent capital and profits interest in TQK. If TQK averaged $27,000,000 in annual gross receipts over the last three years, what accounting method can TQK use for X9
Answer:
Accrual method
Explanation:
As the average annual growth receipts is $27,000,000 which is greater than the $25,000,000 this amount reflects an exception due to which it cannot be applied for cash
Also the accrual method is also selected because it helps while subtracting the expenses instead of cash basis plus it also provides an accurate amount as compared with other methods. And, there is no need to maintain separate books for the purpose of tax
down the net income from the peak tax bracket.
Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Answer:
$5 billion
Explanation:
Calculation of how much would government spending have to rise
The MPC will be :0.8
First step
Using multiplier =1/1-0.8
=1/0.2
=5
Second step is to calculate the amount of the rise in government spending
=25/5
=$5 billion
Therefore the amount that the government spending would have to rise to shift the aggregate demand curve rightward by $25 billion will be $5 billion
Suppose the federal government wishes to purchase goods and services valued at $200 billion today and finances these expenditures by raising taxes. According to some economists, this will lead to ▼ a lower a higher level of national consumption and ▼ a lower a higher level of national savings than if the expenditure had been financed by selling bonds left parenthesis borrowing right parenthesis. If the economy is operating at full employment and the federal government increases its borrowing, A. aggregate expenditures and real GDP will rise more rapidly. B. taxes will be raised immediately. C. the tax burden on future generations will be lessened. D. investment will be crowded out.
Answer:
lower national consumption, higher national saving;
D, investment will be crowded out.
Explanation:
If the Federal government is to purchase goods and services and taxes are to be used to finance the purchase, this can economically mean that the government will have to save more of the taxes collected and reduce how much it spends. This will mean that the government is not going to borrow funds to finance the purchase which is another option.
On the other hand, if the government was running at full employment and then increases its borrowing, it means that one or more sectors of the market economy will be affected due to the government's increased interference in another sector as it tries to raise funds for the purchase of goods and services. This also means that private investments will thin out to the barest minimum.
Cheers
Paradise Travels is an all-equity firm that has 6,000 shares of stock outstanding at a market price of $34 a share. The firm's management has decided to issue $40,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 7 percent. What are the earnings per share at the break-even level of earnings before interest and taxes? Ignore taxes.
Answer:
$2.38
Explanation:
Number of shares purchased
= $40,000 / $34
= $1,176
EBIT / 6,000 = [EBIT - ($40,000 * 0.07)] / (6,000 - 1176)
EBIT / 6,000 = (EBIT - $2,800) / 4,824
4,824 EBIT = 6000 EBIT - $16,800,000
1,176 EBIT = $16,800,000
EBIT = $14,285.71
Earning per Shares at Break-even level of earning
= [EBIT - ($40,000 * 0.07)] / (6,000 - 1,176)
= ($14,285.71 - $2,800) / 4,824
= $11,485.71 / 4,824
= $2.38
Lower inventory levels Group of answer choices make processes less dependent on each other while revealing bottlenecks more quickly make processes more dependent on each other while keeping bottlenecks hidden make process less dependent on each other while keeping bottlenecks hidden make processes more dependent on each other while revealing bottlenecks more quickly
Answer:
The correct answer will be "more dependent on each other while revealing bottlenecks more quickly".
Explanation:
Maintaining low inventory rates seems to be a common goal for businesses around logistics as well as inventory. Inventory needs supervision and is responsible for the costs.A traditional inventory manager could use the level of inventory including the sale of products and services to assess the best period whether to produce more, whether they control the manufacturing of a supplier, as well as to acquire more when the commodity is kept as stock in something like a department store.What are some of the possible consequences of financial distress? I) Bondholders, who face the prospect of getting only part of their money back, will likely want the company to take additional risks. II) Equity investors would like the company to cut its dividend payments to conserve cash. III) Equity investors would like the firm to shift toward riskier lines of business.
Answer:
III) Equity investors would like the firm to shift toward riskier lines of business.
Explanation:
Financial distress refers to the situation at which the organization not able to generate the profit as it is not able to meet or pay the financial debts. This occurs when the fixed cost is high, liquid assets leads to be sensitive in nature which results in downturns of an economic system
Hence, the third option is correct as the firm would shift to the riskier business lines
Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 10 billion cases of beer were sold every year at a price of $7 per case. After the tax, 5 billion cases of beer are sold every year; consumers pay $9 per case (including the tax), and producers receive $6 per case.
a. The amount of the tax on a case of beer is ($_____) per case. Of this amount, the burden that falls on consumers is ($_____) per case, and the burden that falls on producers is ($_____) per case.
b. (True or False) The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers.
Answer:
$3
$2
$1
false
Explanation:
Tax is a compulsory sum levied by the government on goods and services. it increases the price of the good
Tax on a case of beer = amount consumers pay after the tax has been levied - amount producers receive = $9 - $6 = $3
Burden on consumers = amount consumers pay after the tax has been levied on the cases of beer - amount consumers pay before tax was levied on cases of beer = $9 - $7 = $2
Burden on producers = Tax on a case of beer - Burden on consumers = $3 - $2 = $1
false. producers are already being taxed
Suppose the comedy club had a monopoly and a marginal cost of $7 per entrant. Suppose the club could perfectly price-discriminate. That is, it could charge each customer a different price equal to his or her maximum willingness to pay. How many tickets would the comedy club sell
Answer:
Seven
Explanation:
The correct answer to the given question is 7. The comedy club has a monopoly that is why the entrants are price discriminated and the maximum willingness to pay is charged by each customer. However the data shows that seven customers are willing to pay different prices for the entry to the comedy club. So the correct answer is 7 tickets which can be sold when price discriminating.
The reason Air-Omnibus was not celebrating despite selling more aircrafts than Crow-Wing in 2003 was because of the Multiple Choice increasing regulations. rising value of the euro. profits being static. lower value of the euro. rising value of the dollar.
Answer:
i wouldnt be celebrating either
Explanation:
i certainly wouldnt feel joyous if my regulations were increasing
disadvantages of modern cutting crops
Answer:
The need of soil..........
Answer:
Hey... Mayb your question meant about modern farming..
Explanation:
1)water retaining capacity of the soil decreases.
2)pesticides may kill useful insects
3)money spent on agriculture increases
4)it is not sustainable.
5)they pollute the environment.
Here u go!!
TYSM...
,
The management of Arnold Corporation is considering the purchase of a new machine costing $430,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, 0.621, respectively. In addition to this information, use the following data in determining the acceptability in this situation: Year Income from Operations Net Cash Flow 1 $100,000 $180,000 2 40,000 120,000 3 20,000 100,000 4 10,000 90,000 5 10,000 90,000 The net present value for this investment is a.negative $25,200. b.negative $124,800. c.positive $152,000. d.positive $25,200.
Answer:
d.positive $25,200.
Explanation:
The computation of net present value for this investment is shown below:-
Year Income From Net Cash Flow Present value
Operations
1 $100,000 180,000 163620
2 40,000 120,000 99120
3 20,000 100,000 75100
4 10,000 90,000 61470
5 10,000 90,000 55890
Total Cash inflow present value 455,200
Initial cash outflow $430,000
Net present value $25,200
As we can see that the total cash inflow i.e $455,200 is greater than the initial investment is $430,000 that reflects the positive net present value i.e difference of $25,200 so the project should be accepted
On January 1, 2017, Blossom Company had Accounts Receivable of $51,600 and Allowance for Doubtful Accounts of $4,100. Blossom Company prepares financial statements annually. During the year, the following selected transactions occurred:
Jan. 5 Sold $4,600 of merchandise to Rian Company, terms n/30.
Feb. 2 Accepted a $4,600, 4-month, 9% promissory note from Rian Company for balance due.
12 Sold $11,100 of merchandise to Cato Company and accepted Cato’s $11,100, 2-month, 10% note for the balance due.
26 Sold $11,700 of merchandise to Malcolm Co., terms n/10.
Apr. 5 Accepted a $11,700, 3-month, 8% note from Malcolm Co. for balance due.
12 Collected Cato Company note in full. June 2 Collected Rian Company note in full.
15 Sold $2,100 of merchandise to Gerri Inc. and accepted a $2,100, 6-month, 12% note for the amount due.
Journalize the transactions. (Omit cost of goods sold entries.)
Answer:
Blossom Company
Journal Entries:
Jan. 5
Debit Accounts Receivable (Rian Company) $4,600
Credit Sales Revenue $4,600
To record credit sales.
Feb. 2:
Debit 9% Note Receivable $4,600
Credit Accounts Receivable $4,600
To record the transfer.
Feb. 12
Debit Notes Receivable (Cato Company) $11,100
Credit Sales Revenue $11,100
To record the sale in exchange for 10% note.
Feb. 26:
Debit Accounts REceivable (Malcom Co.) $11,700
Credit Sales Revenue $11,700
To record sales on account, terms n/10.
Apr. 5:
Debit Notes Receivable $11,700
Credit Accounts Receivable $11,700
To transfer the balance to a 3-month 8% notes receivable
Apr. 12:
Debit Cash Account $11,285
Credit Interest on Notes Receivable $185
Credit Notes Receivable $11,100
To record full settlement of notes receivable.
Apr. 15:
Debit Notes Receivable $2,100
Credit Sales Revenue $2,100
To record the sale of goods and acceptance of 6-month 12% note.
Explanation:
Journal entries record business transactions for the first time. The accounts to be debited and credited are identified and these are entered into the journal. It is from the journal that postings are made to the general ledger.
Distinguish among operating, investing, and financing activities for the statement of cash flows indirect method) Aurum Investments specializes in low-risk government bonds. Identify each of Aurum's transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a transaction that is not reported on the statement of cash flows (N). Indicate whether each item increases (+) or decreases (minus) cash. The indirect method is used for operating cash flows.
A. Acquisition of equipment by issuance of note payable
B. Purchase of long-term investment with cash
C. Issuance of long-term note payable to borrow cash
D. Increase in prepaid expenses
E. Decrease in accrued liabilities
F. Loss of sale of equipment
G. Decrease in accounts receivable
H. Depreciation of equipment
I. Increase in accounts payable Amortization of intangible assets
K. Purchase of treasury stock
L. Payment of long-term debt
M. Increase in salary payable
N. Cash sale of land
O. Sale of long-term investment
P. Acquisition of building by cash payment
Q. Net income
R. Issuance of common stock for cash
S. Payment of cash dividend
Answer:
A. noncash investing and financing (NIF)
B. investing (I), decreases (minus)
C. financing (F), increases (+)
D. operating (O), decreases (minus)
E. operating (O), increases (+)
F. operating (O), increases (+)
G. operating (O), increases (+)
H. operating (O), increases (+)
I. operating (O), increases (+)
J. operating (O), increases (+)
K. financing (F), decreases (minus)
L. financing (F), decreases (minus)
M. operating (O), increases (+)
N. investing (I), increases (+)
O. investing (I), increases (+)
P. investing (I), decreases (minus)
Q. operating (O), increases (+)
R. financing (F), increases (+)
S. financing (F), decreases (minus)
Explanation:
Operating Activities includes the Net Income and adjustments to the net income for (1) non-cash items previously included or deducted and (2) changes in working capital.
Investing Activities includes sale and investments in Property , Plant and Equipment items.
Financing Activities includes sale of ownership interest and aquisition of financing sources.
To answer this question, the cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities are first as explained.
Cash flow from operating activities represents the revenue generated by a company's ongoing, routine business activity, such as manufacturing and selling things or providing a service to clients.
On a company's cash flow statement, cash flow from operating activities is the first section shown they comprise of net Income, as well as revisions to net Income for previously included or subtracted non-cash items and changes in working capital.
Cash flow from investing activities refer to the cash generated or expended on non-current assets that are expected to yield a profit in the future.
Capital expenditures, lending money, and the sale of investment securities are examples of cash flow from investing activities.
Cash flow from financing activities portion of a company's cash flow statement illustrates the net cash flows used to finance the business.
Examples of cash flow from financing activities include sales of shares, issue of debentures, and among others.
As a result of the above explanation, we have:
A. Acquisition of equipment by issuance of note payable = NIF
B. Purchase of long-term investment with cash = I-
C. Issuance of long-term note payable to borrow cash = F+
D. Increase in prepaid expenses = O-
E. Decrease in accrued liabilities = O-
F. Loss of sale of equipment = O+
G. Decrease in accounts receivable = O+
H. Depreciation of equipment = O+
I. Increase in accounts payable = O+
J. Amortization of intangible assets = O+
K. Purchase of treasury stock = F-
L. Payment of long-term debt = F-
M. Increase in salary payable = O+
N. Cash sale of land = I+
O. Sale of long-term investment = I+
P. Acquisition of building by cash payment = I-
Q. Net income = O+
R. Issuance of common stock for cash = F+
S. Payment of cash dividend = F-
Learn more here: https://brainly.com/question/5256701.
Which of the following costs do not vary with the amount of output a firm produces? a. average fixed costs b. fixed costs and average fixed costs c. marginal costs and average fixed costs d. fixed costs
Answer:
d. fixed costs
Explanation:
The fixed cost is the cost which does not change if there is a change in the level of production i.e if the production level is increased or decreased it the fixed cost would remain the same as it is previous before
Therefore according to the given situation, since the fixed does not vary with the amount of firm output
Hence, option d is correct
Q-mart failed to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count. Consequently, the ending inventory on 12/31 was understated on the balance sheet. Explain how this error will effect the income statement. (Check all that apply.)
Answer:
If the ending inventory was understated, that means that the cost of goods sold will be overstated. If the cost of goods sold was overstated, then net profits were understated.
Explanation:
Imagine a company that sells shoes:
It bought 100 shoes at $100 each during the whole year and their ending inventory was 10 units. This means that cost of goods sold was (100 - 10) x $100 = $9,000. But someone discovered 5 pairs in some shelf that were not included in the ending inventory, then the real ending inventory was 15 units = $1,500 and not $1,000. That also means that the cost of goods sold was $8,500, not $9,000. Lower costs = higher profits.
Answer:
Explanation:
The current year's cost of goods will be too high
The current year's income will be too low
Aurora Corporation operated without insurance coverage for the first month of operations. Then, on February 1, the company paid the $4,800 premium on a two-year insurance policy with benefits beginning on that date. The company uses the accrual basis. How much insurance expense will be reported on the company's income statement for their first year ended December 31?
Answer:
$4,400 insurance expense will be reported on the company's income statement for their first year ended December 31.
Explanation:
When the company pays for the premium on a two-year insurance policy on February 1, the following must happen.
1. Recognize the Asset : Prepaid Insurance
2. De-recognize a decrease in Assets of Cash
At the end of the First year, the company will have utilized 11 months of the insurance policy, the following must happen
1. Recognize an Expense : Insurance Expense to the extent the insurance was utilized.
2. De-recognize the Asset : Prepaid Insurance to show utilization of the Asset benefit.
Entry is as follows :
Insurance Expense $4,400 (debit)
Prepaid Insurance $4,400 (credit)
Insurance Expense Calculation = $4,800 × 11/ 12 = $4,400.
We can imagine the financial manager doing several things on behalf of the firm’s stockholders. For example, the manager might do the following:
a. Increase the firm's market value by investing in real assets.
b. Modify the firm’s investment plan to help shareholders achieve a particular time pattern of consumption.
c. Choose high- or low-risk assets to match shareholders’ risk preferences.
d. Help balance shareholders’ checkbooks.
Answer:
A
Explanation:
One of the responsibilities of a financial manager is to direct investment activities towards increasing the market value of an organization and also support the long term financial goal of the firm.
In as much as the financial manager is expected to act in the best interest of the shareholders , he should not be bias towards them in carrying out his responsibilities,
Therefore , the best option of the given alternatives in the scenario is the he should work towards increasing the market value by investing in real assets.
Refer to Scenario 15-2. Which of the following statements is most likely to be true? (i) New entrants to the market know they will have a smaller market share than PPCo currently has. (ii) PPCo is most likely experiencing rising marginal cost. (iii) PPCo is a natural monopoly. (iv) PPCo is most likely experiencing declining average total cost.
Answer: (i), (iii) and (iv)
Explanation:
PPCo is able to provide the entire needs of the county and and has been in operations for a few years gaining loyal customers and controlling the market. Any company that will want to come in will have to fight them for market dominance and as such will have a smaller market share than PPCo.
As PPCo is meet the demands of everyone in the county, they are most likely experiencing Economies of Scale. This means that they are making more revenue thereby driving total cost down as the fixed costs remain the same but Revenue climbs. This classifies them as a Natural Monopoly because Natural Monopolies experience Economies of Scale and declining average total costs.
Offshore oil-drilling operations entail an unavoidable risk of an oil spill, but importing oil on tankers presently entails an even greater such risk per barrel of oil. Therefore, if we are to reduce the risk of an oil spill without curtailing our use of oil, we must invest more in offshore operations and import less oil on tankers.
Which of the following, if true, most seriously weakens the argument above.
A) Tankers can easily be redesigned so that their use entails less risk of an oil spill.
B) Oil spills caused by tankers have generally been more serious than those caused by offshore operations.
C) The impact of offshore operations on the environments can be controlled by careful management.
D) Offshore operations usually damage the ocean floor, but tankers rarely cause such damage.
E) Importing oil on tankers is currently less expensive than drilling for it offshores.
Answer:
A) Tankers can easily be redesigned so that their use entails less risk of an oil spill.
Explanation:
The option that if true most seriously weakens the argument above is: tankers can easily be redesigned so that their use entails less risk of an oil spill because the statement says that importing oil on tankers entails a greater risk of an oil spill than offshore oil-drilling and the option chosen directly talks about that and says that the tankers can easily be redesigned to decrease the risks of an oil spill which goes against the argument given.
The other options are not right because the options B and C support the argument given. Also, options D and E doesn't talk about oil spill which is the topic on the argument presented.
who was a sole practitioner, about representing him before a governmental board. Due to a conflict of interest arising from the attorney’s recent service on the board, the attorney declines to represent the businessman in the current matter?
Answer:
yes
Explanation:
Based on this scenario, it can be said that yes the attorney's actions are proper because the referral fee was reasonable. A standard referral fee percentage could be around 10% for a closed job, starting at around 2-5% for e-mail introductions and even up to 15-20% for referrals where the referrer deals alone with the client. As long as the referral fee is reasonable and the attorney is not taking advantage then his/her actions are proper and ethical.
An agent is selling a new issue of a non-exempt security to a customer. In order to make it easier for the customer to understand the risks of the investment, the agent highlights the "Important Risk Factors" section of the prospectus before giving it to the customer. Which statement is TRUE about this action
Answer: b. This action is a violation of the Uniform Securities Act
Explanation:
Most terms people carry out in doing business is a breach on the policies of the other party and which is not healthy for the business society, clients should get to understand when they are crossing the line in carrying out task and do the right thing, violations can lead to law enforcement which would not be pleasurable for the party involved.
A real estate broker is employed by a buyer, as an agent. When the broker finds a property the buyer might be interested in buying, the broker is careful to find out as much as possible about the property's owners and why the property is on the market. The broker's efforts to keep the buyer informed of all facts that could affect a transaction is the duty of
Answer:
Disclosure.
Explanation:
In this scenario, a real estate broker is employed by a buyer, as an agent. When the broker finds a property the buyer might be interested in buying, the broker is careful to find out as much as possible about the property's owners and why the property is on the market. The broker's efforts to keep the buyer informed of all facts that could affect a transaction is the duty of disclosure. A disclosure is a legally binding agreement between the buyer and seller of a property, wherein the seller highlights all the information or details they know about the property for the purpose of enlightening and informing the buyer. It contains informations such as legal encumbrance, structural flaw, size of property etc.
Mountain Gear has been using the same machines to make its name brand clothing for the last five years. A cost efficiency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. The old machines cost the company $360,000. The old machines presently have a book value of $136,000 and a market value of $28,000. They are expected to have a five-year remaining life and zero salvage value. The new machines would cost the company $260,000 and have operating expenses of $19,000 a year. The new machines are expected to have a five-year useful life and no salvage value. The operating expenses associated with the old machines are $46,000 a year. The new machines are expected to increase quality, justifying a price increase, and thereby increasing sales revenue by $26,000 a year. Select the true statement.
A. The company will be $44,000 better off over the 5-year period if it replaces the old equipment.
B. The company will be $72,000 better off over the 5-year period if it keeps the old equipment.
C. The company will be $33,000 better off over the 5-year period if it replaces the old equipment.
D. The company will be $28,000 better off over the 5-year period if it replaces the old equipment.
Answer:
C. The company will be $33,000 better off over the 5-year period if it replaces the old equipment.
Explanation:
keep old machine:
operating expenses = $46,000 x 5 = $230,000
new machine:
purchase cost $260,000 - $28,000 = $232,000
operating expenses = $19,000 x 5 = $95,000
increase in revenue $26,000 x 5 = $130,000
if new machine is purchased, operating costs decrease by $135,000, revenues increase by $130,000, but investment outflows increase by $232,000 ⇒ $135,000 + $130,000 - $232,000 = $33,000
Which of the following was the result in Larry S. Lawrence v. Bainbridge Apartments, the case in the text in which the window washer argued that he was entitled to recover against the building owner for his injuries in a fall?
A. The window washer was entitled to workers' compensation as an employee.
B. The window washer was entitled to a recovery in tort based on the inherently dangerous activity at issue and the defendant's failure to take sufficient precautions.
C. The window washer was not entitled to recover because he took insufficient precautions for his own safety.
D. The window washer was entitled to no recovery based on his status as an independent contractor. p. 760
Background image
Answer:
D. The window washer was entitled to no recovery based on his status as an independent contractor.
Explanation:
The reason is that the employer is liable to have all safety measures in place to safeguard the employee from any type of injury at work. If despite all these safety measures, the employee gets injured then he is entitled to workers' compensation.
However, the employer is not liable to compensate independent contractors for accidents as the duty of care is not upon the employer in the case of independent contractors which means that the independent workers are obliged to take all necessary precautions to avoid any injury because it will not be compensated by the employer. Thus, the employer is not liable to compensate independent contractors and option D is correct.
A typing instructor builds a regression model to investigate what factors determine typing speed for students with two months of instruction. Her regression equation looks like: Y' = 11 + 7x1 + 5x2 + 3x3 where: Y' = typing speed in words per minute; x1= hours of instruction per week; x2= hours of practice per week; x3 = hours of typing per week necessary for school or work;
Answer:
The range that has a 95.45% probability that that student's typing speed will be in two months is [49.5, 65.5].
Explanation:
The compete question is:
A new student is taking 2 hrs of typing instruction per week, will practice 5 hrs per week and must type 2.5 hours per week for work. If the standard error of the estimate is 4, within what range do we have a 95.45% probability that that student's typing speed will be in two months?
Solution:
The regression equation formed by the typing instructor to investigate what factors determine typing speed for students with two months of instruction is as follows:
[tex]Y' = 11 + 7x_{1} + 5x_{2} + 3x_{3}[/tex]
Here,
Y' = typing speed in words per minute
x₁ = hours of instruction per week
x₂ = hours of practice per week
x₃ = hours of typing per week necessary for school or work
Compute the value of Y' for the given values of x₁, x₂ and x₃ as follows:
[tex]Y' = 11 + 7x_{1} + 5x_{2} + 3x_{3}[/tex]
[tex]=11+(7\times 2)+(5\times 5)+(3\times 2.5)\\=11+14+25+7.5\\=57.5[/tex]
So, the typing speed of this student in words per minute is 57.5.
The range providing the (1 - α)% prediction interval for values of Y' is:
[tex]Y=[Y'\pm t_{\alpha/2, (n-2)}\times SE][/tex]
Since the data selected is for 2 months the sample size is too large.
The critical value of t is 2.
Compute the range as follows:
[tex]Y=[Y'\pm t_{\alpha/2, (n-2)}\times SE][/tex]
[tex]=[57.5\pm 2\times 4]\\\\=[57.5\pm 8]\\\\=[49.5, 65.5][/tex]
Thus, the range that has a 95.45% probability that that student's typing speed will be in two months is [49.5, 65.5].