Answer: A. 25%
Explanation:
The Contribution margin for the whole company = [tex]\frac{Total Contribution Margin Amounts}{Total Sales}[/tex]
Total Contribution Margin = (0.45 * 25,000) + (0.4 * 40,000) + ( 0.15 * 100,000)
= 9,000+16,000+15,000
= $40,000
Total Sales = 20,000+40,000+100,000
= $160,000
Contribution Margin for the whole Company = [tex]\frac{40,000}{160,000}[/tex]
= 25%
Carmelita Company sells 40,000 units at $18 per unit. Variable costs are $10 per unit, and fixed costs are $62,000. What is the unit contribution margin? _________________________ What is the contribution margin ratio? _________________________ What is income from operations? ___________________________
Answer:
1. 44.44%
2. $258,000
Explanation:
Contribution Margin refers to what is left of sales income after the Variable Costs have been removed.
= Sales price - Variable cost
= 18 - 10
= $8
Contribution Margin Ratio = (Contribution Margin / Sales price) * 100%
= 44.44%
2. Income from Operations
= (Sales Quantity * Contribution Margin) - Fixed Costs
= (40,000 * 8) - 62,000
= 320,000 - 62,000
= $258,000
Two of the characteristics of useful information are: a. flexibility and durability. b. clarity and confidentiality. c. redundancy and simplicity. d. relevance and timeliness.
Answer:
The answer is D.
Relevance and timelinessThe two of the characteristics of useful information are d. relevance and timeliness.
The following information regarding the useful information is as follows:
It should be relevant to the thing which is needed. As irrelevant things should be useless.Also the useful information should be delivered on before time.Therefore we can conclude that the two of the characteristics of useful information are d. relevance and timeliness.
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The following is information for Palmer Co.:
2017 2016 2015
Cost of goods sold $643,825 $426,650 $391,300
Ending inventory 97,400 87,750 92,500
Required:
(a) Use the above information to compute inventory turnover for 2016, and its days' sales in inventory at December 31, 2016.
Numerator / Denominator = Ratio
Inventory turnover $426,650 / $90,125 = 4.7 times
Days' sales in inventory ?
(b) Use the above information to compute inventory turnover for 2017, and its days' sales in inventory at December 31, 2017.
Numerator / Denominator = Ratio
Inventory turnover $643,825 / $92,575 = 7.0times
Days' sales in inventory ?
Answer:
a.
i. 4.7 times
ii. 77.1 days
b
i. 7 times
ii. 52.1 days
Explanation:
Inventory turnover = cost of goods sold / average inventory
average inventory for 2016 = ( 87,750 + 92,500 ) / 2 = $90,125
Inventory turnover $426,650 / $90,125 = 4.7 times
Days' sales in inventory = 365 / inventory turnover = 77.1 days
for 2017
inventory turnover = cost of goods sold / average inventory
average inventory for 2017 = ( 97,400 + 87,750 ) / 2 = $92,575
Inventory turnover $643,825 / $92,575 = 7.0 times
Days' sales in inventory = 365 / inventory turnover = 52.1 days
Planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirements at a profit is called
Answer:
Marketing Logistics
Explanation:
The term that is being described in the question is known as Marketing Logistics. Like mentioned, this is various aspects/processes that need to take place when moving products from producer to market all in order to meet customer demands while making a satisfactory profit at the same time. This is a big part of every business since a business with a good marketing logistics department can easily keep track of product shipments and move products or information quickly to the correct locations thus making everything much more efficient.
The Juarez family is looking for a new cable company. After conducting research, they decide on a new cable provider. They call the new cable provider and mention they are going to switch from another provider. The salesperson at the new cable provider congratulates the Juarez family and lets them know that the new provider has been rated the highest in customer satisfaction in the industry. The salesperson tells them that if they sign up today for cable service, he will offer them a great monthly rate plus a free three-month trial of ten premium channels that they can cancel at any time. The Juarez family likes what they hear, and they sign up for the service. The salesperson has used which type of IMC marketing materials to close the sale?
The correct answer to this open question is the following.
Although there are no options provided, we can say the following.
The IMC marketing material to close the sale was the personal selling tool, using persuasion, and highlighting the benefits of the service to close the sale.
We are talking about Integrated Marketing Communications that include different disciplines such as Public Relations, Promotions, Sales, or Advertising. These resources are used by companies to plan and implement programs aimed to offer their products and services and closing the sale, relying on good customer service. Most of the modern campaigns include IMC to support the marketing effort.
Imagine that a politician has been asked to support the public good proposals below. In order not to waste money and improve her chances of reelection, she makes her decisions based on a cost-benefit analysis. In each of the situations, should she support or reject the proposal?
a) repairing a broken dam that is a major source of hydroelectric power for a large city
b) fixing a pothole along a lightly used street
c) installing streetlights in a community where there has been a lot of crime
d) building a flood control system for an area that floods once every 100 years
Answer:
a) repairing a broken dam that is a major source of hydroelectric power for a large city - Support
The Cost-benefit Analysis here will show a high benefit because the city relies on the dam to produce electricity. If the dam is repaired, the productivity of the city can increase which translates to higher benefits.
b) fixing a pothole along a lightly used street - Reject
The pothole being fixed is not very cost effective because the road is not being used by many. The chances of a high number of cars being damaged therefore is low so resources should not used to fix this road unless in excess.
c) installing streetlights in a community where there has been a lot of crime - Support
Criminals feel emboldened by darkness because they are concealed better and can escape faster. Installing lights will reduce crime and criminals will be spotted faster and their escape will be made harder. She should support this initiative as the benefits outweigh the costs.
d) building a flood control system for an area that floods once every 100 years - Reject
The time taken for the area to flood in the area is quite high. There is therefore no point in installing a flood control system at the moment when resources are a bit scarce. She should not support this initiative for the time being.
Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Poppy Corporation Seed Company Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity $ 51, eee 86,000 119, eee 680,000 (210,000) 141,000 $ 907,000 $ 33,000 52,000 97,000 390,000 (78,000) $494,000 $ 117,000 250, eee 300,000 240,000 $ 907,000 $ 59,000 200,000 100,000 135,000 $494,000
The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax rate of 40 percent is applicable to both companies. Seed reports net income of $36,000 for 20x2 and pays dividends of $10,000 Poppy reports income from its separate operations of $46,000 and pays dividends of $20,000
Required: Compute basic and diluted EPS for the consolidated entity for 20x2. (Round your answers to 2 decimal places.) Basic earnings per share Diluted earnings per share
Answer:
Poppy Corporation
Consolidated EPS
Basic Earnings per share = $67,600/10,000 = $6.76 per share.
Diluted earnings per share = $74,800/10,000 = $7.48 per share
Explanation:
With the conversion of the Seed's bonds, the interest of $20,000 would be included in its income. And an after tax increase of $12,000 (after taking out tax of 40% on $20,000) would be added to the net income, making the net income to become $48,000 ($36,000 + 12,000). The group's share of the net income would become $28,800 ($48,000 x 60%). This amount is added to the Poppy's net income of $46,000 to get a consolidated net income of $74,800 after the conversion of the bonds.
Before the conversion, the consolidated net income is $67,600 ($46,000 + 60% of $36,000).
EPS becomes diluted with the conversion of convertible debt securities. The effect for a consolidated entity like Poppy is the increase in the net income attributable to the holding company with the elimination of the interest expense. However, the number of shares outstanding for the group would remain the same as before the conversion since it was the bonds of the subsidiary that was converted and not the group's.
Intra-Spect Mining Co. acquired mineral rights for $153,000,000. The mineral deposit is estimated at 90,000,000 tons. During the current year, 23,400,000 tons were mined and sold.
Required:
a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places.
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Answer:
a. Determine the amount of depletion expense for the current year.
$39,780,000
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Dr Depletion expense 39,780,000
Cr Accumulated depletion: Mine 39,780,000
Explanation:
depletion expense per ton mined = $153,000,000 / 90,000,000 = $1.70 per ton
depletion expense for current year = $1.70 x 23,400,000 = $39,780,000
Depletion expense is similar to depreciation expense since the carrying value of the asset decreases as minerals are being mined.
If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for financial capital would Group of answer choices
Answer: shift to the left
Explanation:
When a small electric automobile manufacturer is able to gain the social return generated by its electric motor, then its demand for financial capital will shift to the left.
This means that since the financial capital shift to the left, there will be a reduction in the demand for financial capital.
intext:"If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is considered by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at"
Answer:
the seller must record the land at the purchase price = $137,000
Explanation:
Fixed assets like land must always be recorded at historical cost. This is specially important regarding land because it doesn't depreciate and its carrying value will always be the purchase cost since it cannot be adjusted if the fair market value changes.
Android Products, Inc., agreed to accept a $1,000, one-year, 10 percent note from C. Mate. On its maturity date of December 16, Mate honors the note by making a payment of $1,100. That payment consisted of the principal of $1,000 plus interest in the amount of $100 (computed as $1,000 × 10%).
Prepare the necessary December 16 entry for Android by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Date General Journal Debt Credit
Dec. 16
Answer:
Android Products, Inc.
Journal Entries
Date General Journal Debit Credit
Dec. 16 Cash $1,100
Notes Receivable $1,000
Interest Revenue $100
Lefty provides demolition services in several southern states. Lefty has property as follows: Property State Beginning Ending Alabama $ 123,044 $ 204,241 Kentucky $ 203,317 $ 185,108 Mississippi $ 881,932 $ 1,002,396 Louisiana $ 243,951 $ 350,310 Tennessee $ 143,204 $ 143,204 Total $ 1,595,448 $ 1,885,259 Lefty is a Mississippi corporation. Lefty also rents property in Mississippi and Tennessee with annual rents of $56,000 and $21,000, respectively. What is Lefty's Mississippi property numerator
Answer:
Lefty's Mississippi property numerator is
Property Numerator = $56,000
Which can be expressed as a percentage of the Average Annual Property Value
= Annual Rent/Average Annual Property
= $56,000/$942,164 x 100 = 5.9%
Explanation:
a) Data:
Property State Beginning Ending
Alabama $ 123,044 $ 204,241
Kentucky $ 203,317 $ 185,108
Mississippi $ 881,932 $ 1,002,396
Louisiana $ 243,951 $ 350,310
Tennessee $ 143,204 $ 143,204
Total $ 1,595,448 $ 1,885,259
b) Calculations:
Mississippi
Beginning Property value = $ 881,932
Ending Property value = $ 1,002,396
Average annual property value = $942,164 ($ 881,932 + $ 1,002,396)/2
Rent in Mississippi = $56,000
Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $300,000 starting at the beginning of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a operating lease. The drill press has an estimated useful life of 15 years, with no salvage value. Hernandez uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $1,800,000, based on implicit interest of 10%. What amount of amortization expense should be recorded for 2021?
Answer: $120,000
Explanation:
Depreciation is to be based on the cost of the asset being depreciated. In this scenario, the cost of the heavy duty drill press will be the Present Value of all the lease payments for the entire 10 years because it is said that the title will pass to Hernandez Inc. afterwards so the lease payments can be considered as payment.
Straight Line Amortisation = [tex]\frac{Cost of Asset - Salvage Value}{Estimated Useful Life}[/tex]
Straight Line Amortisation = [tex]\frac{1,800,000 - 0}{15}[/tex]
Straight Line Amortisation = $120,000 per year
The following data concerns a proposed equipment purchase: Cost $ 144,000 Salvage value $ 4,000 Estimated useful life 4 years Annual net cash flows $ 46,100 Depreciation method Straight-line Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is (ignore income taxes):
Answer:Accounting rate of return = 15%
Explanation:
Accounting rate of return =Net income(Net cash flow - depreciation expense) / Average investment x 100
but depreciation = Cost of equipment - salvage value/ useful life
=(144,000 - 4000)/ 4= 140,000/ 4= $35,000
also,
Average Investment = Cost of equipment +salvage value /2
=( 144,000+4000)/ 2= 148,000 /2 = $74,000
Accounting rate of return =Net income(Net cash flow - depreciation expense) / Average investment x 100
(46,100 - 35,000)/ 74,000} x 100 =11,100/74,000=0.15 x 100= 15%
How would producers respond if the figure for changes in stocks were postive ?
Answer:
this is not the answer
Explanation:
Consumers and producers react differently to price changes. ... Both of these changes are called movements along the demand or supply
Managers are important members of the organization. Within an organization, there are managers at four levels: top, middle, first-line, and team leaders.
a. True
b. False
Answer:
The correct answer is the option B: False.
Explanation:
To begin with, the managers are one of the most important parts of the organization due to the fact that they have the task to plan, organize, direct and control the operations of the company. There are at least three levels in which the managers can go and have their work done, like the management area(high), the department areas(middle) and the operations area(low): However, that will depend on the organization and its size due to that an organization can only have managers at one level.
July 15 Declared a cash dividend payable to common stockholders of $163,000.
Aug. 15 Date of record is August 15 for the cash dividend declared on July 15.
Aug. 31 Paid the dividend declared on July 15.
Required:
Prepare journal entries to record the above transactions for Corporation.
Answer:
look up the anwser lol ....
If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision?
A. Performance enhancement
B. Cost reduction
C. Political risk reduction
D. Life-cycle enhancement
Answer:
The correct answer is: D. Life-cycle enhancement
Explanation:
When a company wants to optimize physical locations for all activities in the value chain, it must manage all elements of the value chain to improve processes and increase the efficiency and effectiveness of the value chain. Therefore, some strategic advantages for this decision include the improvement of organizational performance, which would optimize the stages of the value chain, reducing waste, and the failures of the process, which would generate cost reduction. Compliance with legislation would also decrease political risks, being a significant strategic advantage for improving the value chain.
Therefore, the life-cycle enhancement may not constitute a strategic advantage, because this process requires greater capacity for the company to manage and monitor variable resources during the enhancement life cycle, which can generate greater difficulty in managing the value chain. and higher spending.
The following errors were discovered by the Gerding Company: Failure to record Unearned Revenue in 2026: $6 Failure to record Depreciation in 2025: $8 Indicate the error in 2026 Net Income:
Answer:
Overstated $2
Explanation:
Calculation to Indicate the error in 2026 Net Income
2026 Failure to record Unearned Revenue $6
Less 2025 Failure to record Depreciation ($8)
2026 Net income $2
Therefore the error in 2026 Net Income will be overstated amount of $2
Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times.
Required:
a. What percentage of time is Judy idle?
b. How much time, on average, does a student spend waiting in line?
c. How long is the (waiting) line on average?
d. What is the probability that an arriving student (just before entering the Administrative Services Office) will find at least one other student waiting in line?
Suppose a Roasted Olive restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $.52 of ingredients, $.24 of variable overhead (electricity to run the oven), and $.70 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor assigns $.96 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.75 per loaf.
a. What is the unit cost of making the bread in-house (use absorption costing)?
b. Should Roasted Olive bake the bread in-house or buy from the local bakery? Why?
Answer:
Roasted Olive should bake the bread in-house.
Because, It is cheaper to bake the bread in-house than to purchase as this saves $0.29 per loaf of bread.
Explanation:
Cost of Making
Unit Cost (Absorption Costing) = All Manufacturing Cost (Fixed and Variable)
= $0.52 + $0.24 + $0.70 + $0.96
= $2.42
Cost of Buying from Local Bakery
Note that the fixed costs are note avoidable, meaning that they would be incurred whether or not the bread is made internally or purchased from local Bakery
Cost of Purchase Option per unit :
Purchase Price $1.75
Add Fixed Overhead per loaf $0.96
Total unit cost $2.71
Conclusion :
It is cheaper to bake the bread in-house than to purchase as this saves ( $2.71 - $2.42) $0.29 per loaf of bread.
Therefore, Roasted Olive should bake the bread in-house.
The depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years is a(an):
Answer:
Accelerated depreciation method
Explanation:
Accelerated depreciation is a method of depreciation in which the assets lost his purchase price or book value at the speedy rate as compared with the straight-line method.
And it generates a larger amount of expenses during the early period and the smaller amount of expenses in the later year so that it can be decreased the taxable income
You expect a share of stock to pay dividends of $1.70, $1.95, and $2.20 in each of the next 3 years. You believe the stock will sell for $29.00 at the end of the third year.
a. What is the std, ak price if the discount rate for the stock is 20%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Stock price $ 20.83
b. What is the dividend yield for year 1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Dividend yield %
c. What will be the dividend yield at the start of year 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Dividend yield %
Answer:
A) 20.82
B) Dividend Yield = 8.16%
C) Second Year values:
market price: 23.30 per share
dividend yield: 8.37%
Explanation:
[tex]\left[\begin{array}{ccc}#&Dividends&Discounted\\&1&\\1&1.7&1.42\\2&1.95&1.35\\3&2.2&1.27\\3&29&16.78\\\\&TOTAL&20.82\\\end{array}\right][/tex]
At the third year we have two return the 2.2 dividends and the 29 dollars from the sale.
Dividends yield first year:
1.7 / 20.82 = 0,08165
Second Year:
Market price:
[tex]\left[\begin{array}{ccc}#&Dividends&Discounted\\1&1.95&1.63\\2&2.2&1.53\\2&29&20.14\\&TOTAL&23.3\\\end{array}\right][/tex]
Dividend Yield:
1.95 / 23.3 = 0,08369
Indicate what components of GDP (if any) each of the following transactions would affect. a. Your parents buy a new house from a local builder. b. Your parents pay an accountant to file their tax returns. c. New York hires workers to plow snow after a snowstorm. d. Honda expands its factory in Ohio. e. Ford sells a Mustang from its inventory to the Martinez family. f. Aunt Polly buys a new air conditioner from a domestic manufacturer. You buy a new Toshiba computer. g. the Jackson family buys an old Victorian house from the Walker family.
Answer:
a. Consumption spending
b. consumption spending
c. government spending
d. investment
e. consumption and investment
f. consumption spending
g. not included in GDP
Purchase of a Toshiba laptop is consumption spending
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used or old products
5. sale or purchase of intermediate products
Consumption spending includes expenditures by households on durable and non durable goods and services
the following are durable consumption by households and are included in the calculation of GDP :
Purchase of a house
Purchase of a mustang
Purchase of an air conditioner
purchase of a computer
the purchase of the old Victorian house isn't included in the calculation of GDP because it is old. Only items produced in the current year are included in the GDP. if the old home is counted, it would be double counting
hiring an accountant is an example of purchase of services by households and it is consumption spending.
Spending by businesses are included in investment spending.
expenditure by the government or state are included in government spending
Joan has the following assets and liabilities: Credit card balance$1,000 Cash$200 Government bonds$3,000 Checking$300 Car loan balance$10,000 Car$15,000 What is Joan's money demand
Answer:
$500
Explanation:
Money demand can be described as the part of an assets in which an individual is ready to hold as cash, this cash can be used to purchase goods and services.
In the scenario described above, Joan's money demand is
= Cash balance+Checking account balance
Cash balance = $200
Checking account balance = $300
Money demand= $200+$300
= $500
Hence Joan's money demand is $500
At a price of $200, a cell phone company manufactures 300,000 phones. At a price of $150, the company produces 200,000 phones. What is the price elasticity of supply
Answer:
1.33
Explanation:
At a price of $200, a cell phone company manufactures 300,000 phones
At a price of $150, the company produced 200,000 phones
P1= $200 , Q1= 300,000 units
P2= $150 , Q2= 200,000 units
Price elasticity = change in quantity / change in price
Change in quantity= Q2-Q1/(Q2+Q1/2)
= 200,000-300,000/(200,000+300,000/2)
= -100,000/500,000/2
= -100,000/250,000
= -0.4
Change in price= P2-P1/(P2+P1/2)
= 150-200/(150+200/2)
= -50/(350/2)
= -50/175
= -0.3
Price elasticity= -0.4/-0.3
= 1.33
Hence the price elasticity is 1.33
The price elasticity of supply when the firm produces 200,000 at a price of $150 per cell phone will be 1.33. The price elasticity of supply is a concept of economics useful in calculation of efficiency in the organization.
The price elasticity refers to the price undergone with the comparison of two different prices and two different rates of production at given price and predetermined period.
The price elasticity of supply however relates to the change in response by the cost and production by a change in cost of production per unit and the supply that is effected at such price being offered.The calculation of price elasticity in this case can be easily calculated with the information provided in the query above. [tex]\rm Quantity\ at\ price\ of\ 200\ per\ unit=\ 300000[/tex][tex]\rm Quantity\ Produced\ at\ 150\ per\ unit=\ 200000[/tex]We know the formula that the price elasticity of supply is obtained by dividing the difference of change in price divided by change in quantity produced.[tex]\rm Price\ Elasticity\ of\ Supply= \dfrac{Change\ in\ Quantity}{Change\ in\ Price}[/tex]Putting the values in the equation we get, [tex]\rm Change\ in\ price= \dfrac{150-200}{\dfrac {150+200}{2}}[/tex][tex]\rm Change\ in\ Price= -0.3[/tex]Now calculating Change in quantity[tex]\rm Change\ in\ Quantity= \dfrac{200000-300000}{\dfrac {200000+300000}{2}}[/tex]We get,
[tex]\rm Change\ in\ Quantity= -0.4[/tex]Putting the values obtained in the formula we can calculate as ,[tex]\rm Price\ Elasticity\ of\ Supply= \dfrac{-0.4}{-0.3}[/tex]So now we finally get the price elasticity of supply as [tex]\rm Price\ Elasticity\ of\ Supply= 1.33[/tex]Hence, the value obtained for Price Elasticity of Supply for cell phones produced in two different quantities at two different prices is 1.33.
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You have found three investment choices for a one-year deposit: 9.4 %9.4% APR compounded monthly, 9.4 %9.4% APR compounded annually, and 8.7 %8.7% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.)
Answer and Explanation:
The computation of EAR for each investment is shown below:-
EAR = ((1 + APR ÷ m)^m) - 1
where m indicates compounding periods
Now we will put the values with the help of the above formula
For 9.4% APR compounded monthly is
EAR = ((1 + 0.094 ÷ 12)^12) - 1
= 9.815747%
For 9.4% APR compounded annually is
EAR = ((1 + 0.094 ÷ 1)^1) - 1
= 9.400000%
For 8.7% APR compounded daily is
EAR = ((1 + 0.087 ÷ 365)^365) - 1
= 9.088537%
What are reasons why many organizations tap only a fraction of the potential that is available from cross-border transfer of knowledge and innovation except:_______
The available options are:
a. Barriers of language, cultural, and geographic distances.
b. Lack of trust among people at different locations.
c. Divisions sometimes view knowledge and innovation as power and want to hold onto it.
d. Economies of scope can increase a company's market power as compared to competitors.
Answer:
d. Economies of scope can increase a company's market power as compared to competitors.
Explanation:
There are various reasons why many organizations tap only a fraction of the potential that is available from cross-border transfer of knowledge and innovation, these include:
1. The technical know-how tends to remains hidden in various units because of language, cultural, and geographical distances
2. Various divisional units sometimes perceive knowledge and innovation as power and want to monopolize it, to gain influential position within the global firm
3. The "not-invented-here" syndrome makes some managers reluctant to tap into the technical knowledge and expertise of other units
4. Much of an organization's knowledge is in the minds of employees and cannot easily be written down and shared with other units
Hence, the reasons why many organizations tap only a fraction of the potential that is available from cross-border transfer of knowledge and innovation except: Economies of scope can increase a company's market power as compared to competitors.
At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to
Answer:
Hence, closing over overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000
Explanation:
Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.
As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.
Over applied overhead = Applied overhead - Actual overhead
= 42,000,000 - 40,300,00 = 1,700,000
Over applied overhead = $ 1,700,000
The adjustment required is to reduce the cost of gods sold by the amount of over-applied overhead because the cost of goods sold figure is would have over charged.
Hence, closing over overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000 because net income and cost of Goods Sold are inversely related.
A proposed nuclear power plant will cost $2.7 billion to build and then will produce cash flows of $350 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $950 million.
A. What is project NPV if the discount rate is 3%?
B. What if the discount rate is 16%?
Answer:
NPV when I is 3% = $2,088,046,130
NPV when I is 16% = $-646,059,679.8
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-2.7 billion
Cash flow each year from year 1 to 14 = $350 million
cash flow in year 15 = $950 million + $350 million = $1,300 billion
NPV when I is 3% = $2,088,046,130
NPV when I is 16% = $-646,059,679.8
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute