here are seven firms in the automobile industry. The market shares of the firms are 34 percent, 21 percent, 17 percent, 9 percent, 8 percent, 6 percent and 5 percent. Assume that the two (2) smallest companies (in terms of market share) in the automobile industry seek to merge in an effort to realize economies of scale and effectively compete with the larger companies in the industry. If so, then most likely
Answers
Answer:
The answer is "Option 4".
Explanation:
The Herfindahl-Hirschman Index formula:
[tex]HHI=s_{12} + s_{22} + s_{32} + s_{42} +........ + s_{n2}[/tex]
here sn is the firm n's share of the market proportion represented the society in general number instead of a decimal
Index Herfindahl-Hirschman:
[tex]= (34)^2 + (21)^2 + (17)^2 + 92 + 82 + 62 + 52\\\\= 1156 + 441 + 289 + 81 + 64 + 36 + 25\\\\= 2092[/tex]
Index Herfindahl-Hirschman(Result of the merger, firms with profit margins of 6% and 5% provided market shares of respectively).
[tex]= (34)^2 + (21)^2 + (17)^2 + 92 + 82 + 112\\\\= 1156 + 441 + 289 + 81 + 64 + 36 + 121\\\\= 2188[/tex]
The market with just an HHI of less than 1,500 is called a competitive industry, one on an HHI of 1,500 to 2,500 is called a moderately competitive store, and one on an HHI of 2,500 or higher is considered a highly potent store by us Justice department.
All businesses operate in a moderately crowded market, as well as a merger such as this reduces competition (increases chances of monopoly). Also as result, the Justice Dept may examine its merger but will most likely deny this because the Herfindahl-Hirschman index has risen.
Related Questions
Below are the prices of toothpaste (9 oz.), shampoo (7 oz.), cough tablets (package of 100), and antiperspirant (2 oz.) for August 2000 and August 2017. Also included are the quantity purchased. Use August 2000 as the base.
Item August 2000 August 2017
Price Quantity Price Quantity
Toothpaste $2.49 6 $3.35 6
Shampoo 3.29 4 4.49 5
Cough drops 1.59 2 4.19 3
Antiperspirant 1.79 3 2.49 4
a. Determine the simple price indexes.
b. Determine the simple aggregate price index for the two years.
c. Determine Laspeyres' price index.
d. Determine the Paasche price index.
Answers
Answer:
a. We have:
Toothpaste simple price index = 134.54
Shampoo simple price index = 136.47
Cough drops = 263.52
Antiperspirant = 139.11
b. Simple aggregate price index = 158.52
c. Laspeyres’ price Index = 147.09
d. Paasche price index = 150.23
Explanation:
a. Determine the simple price indexes.
Simple price index = (Price of a good in the current / Price of the good in the base year) * 100 ……. (1)
Using equation (1), we have:
Item August 2000 August 2017
Price Quantity Price Quantity
Toothpaste simple price index = ($3.35 / $2.49) * 100 = 134.54
Shampoo simple price index = ($4.49 / 3.29) * 100 = 136.47
Cough drops = ($4.19 / 1.59) * 100 = 263.52
Antiperspirant = ($2.49 / $1.79) * 100 = 139.11
b. Determine the simple aggregate price index for the two years.
Simple aggregate price index = (Total of the current year’s prices of the four commodities / Total of the base year’s prices of the four commodities) * 100 = (($3.35 + $4.49 + $4.19 + $2.49) / ($2.49 + $3.29 + $1.59 + $1.79)) * 100 = 158.52
c. Determine Laspeyres' price index.
Laspeyres’ price Index = Cost of the base quantities of the four commodities at current prices / (Cost of the base quantities of the four commodities at base period prices) * 100 = ((($3.35 * 6) + ($4.49 * 4) + ($4.19 * 2) + ($2.49 * 3)) / (($2.49 * 6) + ($3.29 * 4) + ($1.59 * 2) + (1.79 * 3))) * 100 = 147.09
d. Determine the Paasche price index.
Paasche price index = Cost of the current quantities of the four commodities at current prices / (Cost of the current quantities of the four commodities at base period prices) * 100 = ((($3.35 * 6) + ($4.49 * 5) + ($4.19 * 3) + ($2.49 * 4)) / (($2.49 * 6) + ($3.29 * 5) + ($1.59 * 3) + ($1.79 * 4))) * 100 = 150.23
What is technical profession?Give examples.
Answers
Answer:
Technical profession is a highly skill based profession in which a practical knowledge is required.Example:engineering in civil,mechanical,computer e.t.c.
For which of the following errors would the appropriate amount be subtracted from the balance per books on a bank reconciliation? Check written for $53, but recorded by the company as $35. Deposit of $200 recorded by the bank as $20. Check written for $58, but recorded by the company as $85. A returned $600 check recorded by the bank as $60.
Answers
Answer:
Check written for $53, but recorded by the company as $35.
Explanation:
In this, the check is written for $53 which means that the bank would debited the books by $53 but the books of the company represent only $35 in the credit sid. So here the company should have to deduct the additional amount i.e. $18 for making the amount same in both the books
Therefore the above statement represent the answer
Which of the following provides the best answer to the interview question, "What motivates you?"
"I'm most motivated when I get along well with my co-workers and enjoy a positive, engaging, and entertaining work environment."
"I'm most motivated when I know that the position I hold is secure and the salary and benefits package offered to me are fair for the job."
"I'm most motivated when I'm in a challenging and positive work environment, no matter the task. I like to be part of something bigger than myself."
"I'm most motivated when working under pressure. As a matter of fact, the more stress I'm under the more likely I am to rise to the occasion."
Answers
"I'm most motivated when I get along well with my co-workers and enjoy a positive, engaging, and entertaining work environment." the following provides the best answer to the interview question
What is the environment?The environment can be defined as a sum absolute of all the realistic and non-living atmospheric condition and their effects that influence human life. While all living or biotic elements are animals, plants, forests, fisheries, and birds, non-living or abiotic weather conditions include water, land, sunshine, rocks, and air.
An interview is an organized dialogue in which one person asks questions and the other responds. The term “interview” is commonly used to refer to a one-on-one talk between an interviewer and an interviewee. Individual and group interviews are the two forms of interviews. Interviews with individuals:
Therefore, Thus option (A) is correct.
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8. We asked our writer to write a short essay on "The benefits of eating fats"
This is what the writer wrote:
With all the different dietary advice flying around these days, how can you even begin to
know what food choices to make? Take fat for example. For years it has been painted
as an evil monster and the root cause of high cholesterol, heart disease and obesity.
Fat gets a bad rap even though it is a nutrient that we need in our diet, just not too
much.
There are different types of fats, with some fats being healthier than others. To help
make sure you stay healthy, it is important to eat unsaturated fats in small amounts as
part of a balanced diet. When buying products check the labels and choose the varieties
that are lower in saturated and trans fats and higher in poly and monounsaturated fats.
A diet that is low in saturated fats and trans fats, but that also includes moderate
amounts of unsaturated fats will help you stay healthy.
When comparing the advantages and disadvantages of eating fat, consider your weight,
caloric intake and health goals and concerns. Eating the recommended amount of fat
from a variety of healthy sources will meet your body's need for the essential nutrient.
Consuming too much of the wrong type of fat can lead to weight gain or heart disease.
Learn all about dietary fats and how getting too much or too little affects our health.
On a scale of 1 to 5, 1 being very bad and 5 being very good, what rating would
you give? Why?
Answer:
What are the strengths of this writer? What are the weaknesses?
Answers
Answer: I would like to rate it 4 because the writer has explained very nicely the right amount pf consumption of fat in the daily diet of a person
His strengths are that he is very clear with his points and has explained briefly and clearly the disadvantages of consuming too much fat.
One weakness that came to my consideration is that he has not mentioned the data in the form of figures like how much percentage and quantity is recommended and how excess fats can cause fluctuation in our blood pressure and heart activity because I believe figures are very important while writing about such issues.
Explanation:
Within the manufacturing plant of Reliable Garment Production Co., a company that makes clothing for many of the top fashion labels, there is a great deal of conflict. The employees who assemble the garments are extremely frustrated. They are rarely able to meet their daily production quotas because the employees who cut the fabricare almost always running behind schedule. Which of the following is the most likely source of this conflict?
a. Differentiation in orientations
b. Sequential interdependence
c. Competition for limited resources
d. Reciprocal interdependence
Answers
Answer:
b. Sequential interdependence
Explanation:
Sequential interdependence occurs when the output or work of one department is necessary for the performance of another department.
So a delay in output in one department leads to lack of work by the second department.
This is the case in the given instance where the employees who assemble the garments are rarely able to meet their daily production quotas because the employees who cut the fabricare almost always running behind schedule.
At the beginning of his current tax year, David invests $11,700 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $560 in interest ($280 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.6 percent. (Round your intermediate calculations to the nearest whole dollar amount.) How much interest income will he report this year if he elects to amortize the bond premium
Answers
Answer:
$419.95
Explanation:
The computation of the interest income reported is shown below
Year Adjusted basis Interest received Premium Reported
Amortization Interest
1 $11,700 $280 $69.40 $210.60
($280 - $210.60) ($11,700 × 3.6% × 6 ÷ 12 )
2. $11,630.60 $280 $70.65 $209.35
($11,700 - $69.40) ($280 - $209.35) ($11,630.60 × 3.6% × 6 ÷ 12 )
Total $419.95
Considering current world economic climate, the future exchange rates are uncertain. How would you analyse/anticipate the change in exchange rates? Write a brief proposal to mitigate impact of possible exchange rate fluctuations
Answers
Answer:
In order to analyse and anticipate the change in exchange rates, I would use a combination of technical and fundamental analysis. Technical analysis involves studying charts and trends to identify patterns that can be used to predict future price movements. Fundamental analysis involves looking at economic indicators such as GDP growth, inflation, unemployment, and interest rates to gain an understanding of the underlying economic conditions that can affect exchange rates.
In order to mitigate the impact of possible exchange rate fluctuations, I would suggest implementing a strategy of hedging. Hedging involves taking out a position in a currency or financial instrument that is opposite to the current position in order to reduce the risk of losses due to exchange rate fluctuations. This can be done through the use of forward contracts, options, and futures. Additionally, I would suggest diversifying investments across multiple currencies to reduce the risk of losses due to exchange rate fluctuations.
Finally, I would suggest monitoring exchange rate movements closely and adjusting the hedging strategy accordingly in order to ensure that the hedging strategy is effective in mitigating the impact of exchange rate fluctuations.
Explanation:
What is a likely result of an increase in trade between nations?
O A. It will increase the cost of goods due to increased competition.
O B. It will restrict the market for domestic products.
O C. It will provide consumers with more choice at lower prices.
O D. It will lower the standard of living in the weaker trade nation.
Answers
Answer:
C
Explanation:
The prices will lower and the the amount of goods will increase
Oriole Company reported retained earnings at December 31, 2018, of $312,500. Oriole had 210,000 shares of common stock outstanding at the beginning of 2019. The following transactions occurred during 2019.
1. A cash dividend of $0.50 per share was declared and paid.
2. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
3. Net income was $282,000.
Retained earning statement :
Compute the ending balance in retained earnings at the end of 2019.
Answers
Answer:the ending balance in retained earnings at the end of 2019=$332,000
Explanation:
Particulars Amount
Retained earnings December 31,2018 $312,500
Less: Cash dividend $105,000
(210000 X $0.50)
Less: Stock dividend $157,500
(210,000 X 5% X $15)
$50,000
Add: Net income $282,000
Retained earnings $332,000
why microeconomics is useful in business decision making? Explain
Answers
Answer:
The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce.
Explanation:
With the help of microeconomic analysis, business firms can forecast their level of demand within the certain time interval. The demand for a commodity fluctuates depending upon various factors affecting it. Thus, business firms and decision makers can determine the level of demand for the commodity.
Microeconomic theories explain various conditions of cost like fixed cost, variable cost, average cost, and marginal cost. Along with this, it also provides an analysis of the short run and long run costs that help the business decision makers determine the cost of production and other related costs, so they can implement policies to cut down cost and increase their level of profit.Microeconomics explains the operating of a free market economy where, an individual producer has the freedom to take economic decisions like what to produce, how to produce, or for whom to produce. Allocation of resources is determined by price or market mechanism i.e. interaction between demand and supply.
1) There are more final consumers than business and organizational customers, so more is purchased by final consumers. Answer: FALSE 2) Manufacturers and developers are often categorized as intermediaries. Answer: FALSE 3) Organizational buyers are often referred to as the B2B market. Answer: TRUE 4) Organizational buyers are also referred to as industrial or intermediate buyers. Answer: TRUE
Answers
Answer:
1. The first statement is false, since there are more middle customers than final consumers in a business. Middle customers are those entities that used the purchased product as a raw material for a further process or directly sell that to some other entity.
2. Manufacturers and developers are producers and sometimes customers for some other entity from which they are procuring raw materials from. Hence,false.
3. B2B refers to the business to business transaction in which one organisation purchase goods from other organisation for not final consumption. Hence the statement is true.
4. The given statement is true as these are the buyers who purchase a product for some further use.
One half of 1% converted to a decimal is
Answers
Suppose you are thinking of starting your own small business. Consider how your accounting profit is different than your economic profit.
a. Accounting profit is different than economic profit because:________.
i. economic profit is only important to economists and does not apply to the actual decision to launch a new business.
ii. accounting profit includes all financial and opportunity costs of starting a business.
iii. economic profit is what is reported on your tax return.
iv. accounting profit ignores the opportunity cost of launching a new business.
b. After doing your research, you are confident that you will make an accounting profit if you launch the business but feel it is very unlikely that you will make an economic profit. In this case, you start the business.
Answers
Answer:
IV
YES
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
economic profit includes the opportunity cost of funds
In some industries, only normal profit is earned in the short run. For example, in a perfect competition and monopolistic competition, only normal profit is earned in the long run due to free entry and exit of firms in the industry. thus if only normal profit would be earned, the company should still go ahead and establish
Identify messages that you have seen or heard from several companies?
Answers
Answer:
Integrated marketing communication can be described as the use of marketing strategies to optimizethe communication of a consistent message of the company’s brands to stakeholders. Messages areused by organizations to communicate about themselves and the value of the product they offer. I have seen these kind of messages from several companies. One of them is Telekom Networks of Malawi. This company provide communication services in Malawi. Their slogan is “always with you”. I can say that the company is consistent with its message across the market they are targeting because their adverts are everywhere (internet, newspapers, Magazine e.t.c) so as their services, assuch they reach their targets and deliver their promises, and also the services they provide are in line with their slogan, for example, they provide airtime on credit when one need it most.
Entities such as offer certifications and qualifications in accounting that will help increase your future earning potential, deepen your knowledge, and enhance your credibility in the field.
Answers
There are numerous other professional associations, such as the institute of management, accountants, and American association of finance and accounting .
What is certifications and qualifications in accounting ?So joining one of these organisations can help you improve your knowledge, raise your standing in the accounting community, and increase your earnings in the future.
In the United States, the CPA licence is the most widely used accounting credential for positions in accounting and finance. Your proficiency in tax, compliance, risk management, forensic accounting, and other fields is recognised by this accreditation.
A well-known accounting certification can help you get work, boost your marketability, and give you and your company professional credibility in a cutthroat industry.
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The following information is provided for Ivanhoe Company and Sarasota Corporation.
(in $ millions) Ivanhoe Company Sarasota Corporation
Net income 2022 $170 $350
Net sales 2022 1790 4790
Total assets 12/31/20 1075 2340
Total assets 12/31/21 1285 3150
Total assets 12/31/22 1195 4070
What is Bridgeport's return on assets (rounded) for 2017?
Answers
Answer: 9.695%
Explanation:
Based on the information given in the question, Bridgeport's return on assets for 2022 will be:
= Net income / Average total assets
= $350 / ($3150+$4070/2)
= $350/($7220/2)
= $350/$3610
= 0.09695
= 9.695%
Therefore, Bridgeport's return on assets for 2022 will be 9.695%
what is tertiary production?
Answers
Tertiary production refers to the service sector of an economy. It includes industries such as retail, hospitality, healthcare, education, and finance. This sector provides services to consumers, rather than producing tangible goods. Tertiary production is also known as the services sector, or the service economy. It is considered a key driver of economic growth, as it creates jobs, generates revenue, and contributes to overall economic activity.
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Times Inc. is trying to develop an asset-financing plan. The firm has $540,000 in temporary current assets and $440,000 in permanent current assets. Times also has $640,000 in fixed assets. Assume a tax rate of 40 percent. (Do not round intermediate calculations. Round your answers to the nearest whole number.) a. Construct two alternative financing plans for Times. One of the plans should be conservative, with 80 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 14 percent on long-term funds and 8 percent on short-term financing. Compute the annual interest payments under each plan. Annual Interest Conservative $ Aggressive $ b. Given that Times' earnings before interest and taxes are $420,000, calculate earnings after taxes for each of your alternatives. Earnings After Taxes Conservative $ Aggressive $ c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long-term interest rates were reversed
Answers
Answer:
Times Inc.
Conservative Aggressive
a) Annual interest payments $207,360 $184,275
b) Earnings After Taxes $127,584 $141,475
c) Annual interest payments $149,040 $172,125
Earnings After Taxes $162,576 $148,725
Explanation:
a) Data and Calculations:
Temporary current assets = $540,000
Permanent current assets = 440,000
Fixed assets = 640,000
Total assets = $1,620,000
Assumed tax rate = 40%
Conservative Aggressive
Financed by long-term sources 80% 56.25%
Long-term finance $1,296,000 $911,250
Short-term finance 324,000 (20%) 708,750 (43.75%)
Annual interest payments:
Long-term interest rate = 14% $181,440 $127,575
Short-term interest rate = 8% 25,920 56,700
Total annual interest payments $207,360 $184,275
b) Earnings before
interest and taxes $420,000 $420,000
Annual interest payments 207,360 184,275
Earnings before taxes $212,640 $235,725
Income taxes (40%) 85,056 94,250
Earnings After Taxes $127,584 $141,475
Annual interest payments:
Long-term interest rate = 8% $103,680 $72,900
Short-term interest rate = 14% 45,360 99,225
Total annual interest payments $149,040 $172,125
c) Earnings before
interest and taxes $420,000 $420,000
Annual interest payments 149,040 172,125
Earnings before taxes $270,960 $247,875
Income taxes (40%) 108,384 99,150
Earnings After Taxes $162,576 $148,725
Assume that during 2020, Cypress Semiconductor Corporation reported net cash provided by operating activities of $155,985,000, net cash used in investing activities of $207,055,000 (including cash spent for plant assets of $132,295,000), and net cash used in financing activities of $33,370,000. Dividends of $4,165,000 were paid. Calculate free cash flow. (Enter a negative amount using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)
Answers
Answer:
$19,525,000
Explanation:
Calculation to determine the free cash flow
Using this formula
Free cash flow=Net cash provided by operating activities-cash spent for plant assets-Dividends
Let plug in the formula
Free cash flow=$155,985,000-$132,295,000-$4,165,000
Free cash flow=$19,525,000
Therefore The Free cash flow is $19,525,000
Which economic indicators are used to measure the global economy? Choose four answers.
purchasing power parity
trade volumes
spending power parity
labor market data
gross domestic product
trade deficits and surpluses
Answers
Answer:
Explanation:
Used:
Trade Volumes
Labor Market Data
Gross Domestic Product
Trade Deficits and Surpluses
Not Used:
Purchasing Power Parity
Spending Power Parity
Economic indicators are;
Trade VolumesLabor Market DataGross Domestic ProductTrade Deficits and SurplusesWhat are economic indicators?Economic indicators serve as those economic data, that are needed to interpret current or future investment possibilities.
Therefore, economic indicators are used to measure the global economy.
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what is electric home and farm authority?
Answers
Answer: The Electric Home and Farm Authority (EHFA) is a nonprofit organization that provides energy efficiency and renewable energy solutions to rural and low-income households. The organization works with local governments, utilities, and other organizations to provide energy efficiency and renewable energy services to rural and low-income households. EHFA also provides education and outreach to help rural and low-income households understand and take advantage of energy efficiency and renewable energy opportunities.
Explanation:
Electric Home and Farm Authority refers to a government program in the United States that aimed to provide electricity to rural areas during the New Deal.
Explanation:An Electric Home and Farm Authority refers to a government program implemented during the New Deal in the 1930s. It aimed to bring electricity to rural areas in the United States that lacked access to it.
The program provided low-interest loans to cooperatives or private companies to build power plants and distribute electricity to rural communities. This initiative helped improve the quality of life in rural areas and contributed to the economic development of those regions.
Some examples of Electric Home and Farm Authorities include the Tennessee Valley Authority (TVA) and the Rural Electrification Administration (REA).
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When must you wash your hands
Answers
Answer:
Before, during, and after preparing food. Before and after eating food. Before and after caring for someone at home who is sick with vomiting or diarrhea. Before and after treating a cut or wound.
wash your hands before and after always and preferably with antibacterial soap
Recording the Early Retirement of a Bond Issued at a Premium (with Premium Account) LO10-7 Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,140,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,037,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Record the retirement of the bonds, using a premium account.
Answers
Answer:
Date Account Titles and Explanation Debit Credit
Bonds payable $1,000,000
Loss on retirement of bond $13,000
[$1,050,000 - $1,037,000]
Premium on bond $37,000
Cash (1,000,000*105%) $1,050,000
(Record the retirement of the bonds, using a premium account)
Thomas’ family also runs a gourmet food store that sells two main products: Premium Caviar and Goose Foie Gras. They import the Premium Caviar from Russia, and purchase Goose Foie Gras from Upstate New York. The two products are sold in boxes. Thomas gathers the following information:
When Thomas took accounting courses at college, he knows how to do cost-volume-profit analysis pretty well. However, he just remembers how to do the analysis for those companies with only one product. Therefore, he needs your help to calculate the following:
a. What is the business’ weighted-average contribution margin per unit? (show your computation)
b. Calculate the business’ break-even point in units assuming the current sales mix. (show your computation)
c. What will be the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales? (show your computation)
d. What is the business’ weighted average contribution margin ratio? (show your computation)
I have it completed... just need to check my work. I would appreciate a response as soon as possible.
Answers
a.
Premium Caviar:
Selling price per unit: $50
Variable cost per unit: $25
Contribution margin per unit: $50 - $25 = $25
Goose Foie Gras:
Selling price per unit: $30
Variable cost per unit: $15
Contribution margin per unit: $30 - $15 = $15
How to determine the weighted-average contribution?To determine the weighted-average contribution margin per unit, we need to know the sales mix (the proportion of total sales for each product). Let's assume that the sales mix for Premium Caviar and Goose Foie Gras is 50:50, so half of total sales are for Premium Caviar and the other half for Goose Foie Gras.
The weighted-average contribution margin per unit is calculated by multiplying the contribution margin per unit for each product by the proportion of sales for that product, and then summing those values.
Weighted-average contribution margin per unit = (Contribution margin per unit for Premium Caviar x Proportion of sales for Premium Caviar) + (Contribution margin per unit for Goose Foie Gras x Proportion of sales for Goose Foie Gras)
= ($25 x 0.50) + ($15 x 0.50) = $20
To calculate the break-even point in units, we need to know the total fixed costs of the business. Let's assume that the total fixed costs are $100,000.
The break-even point in units is calculated using the following formula:
Break-even point in units = Total fixed costs / Contribution margin per unit
= $100,000 / $20 = 5000 units
c. To calculate the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales, we need to know the sales mix. We can use the sales mix we assumed earlier (50:50) and multiply it by the break-even point in units:
Premium Caviar boxes = (Break-even point in units x Proportion of sales for Premium Caviar) = (5000 x 0.50) = 2500 boxes
Goose Foie Gras boxes = (Break-even point in units x Proportion of sales for Goose Foie Gras) = (5000 x 0.50) = 2500 boxes
To calculate the weighted average contribution margin ratio, we need to divide the weighted-average contribution margin per unit by the weighted-average selling price per unit.
Weighted-average selling price per unit = (Selling price per unit for Premium Caviar x Proportion of sales for Premium Caviar) + (Selling price per unit for Goose Foie Gras x Proportion of sales for Goose Foie Gras)
= ($50 x 0.50) + ($30 x 0.50) = $40
Weighted-average contribution margin ratio = Weighted-average contribution margin per unit / Weighted-average selling price per unit
= $20 / $40 = 0.50 or 50%.
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? Assessment
1/10
Which of the following is NOT a method a doctor would use to examine a patient?
A. Listening to a patient explain their
symptoms
B.Observing the patient through a
telescope
C. Testing reflexes with a reflex
hammer
D. None of the above
Answers
Answer:
B
Explanation:
A telescope is used to look at stars and planets, not a patient.
Answer:
The correct answer is B
Explanation:
When we purchase a few shares of another corporation, what is the effect on your stockholders' equity
Answers
Group of answer choices.
A. Increase.
B. Cannot tell from the given information.
C. No effect.
D. Decrease.
Answer:
C. No effect.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, corporations can be sold through stocks or shares, as a public entity.
Stockholders' equity can be defined as the amount of assets remaining or the residual interest of assets in a business after all liabilities are settled or deducted. A stockholders' equity is calculated by deducting or subtracting the value of liabilities from the value of assets on the balance sheet of a company.
Hence, when we purchase a few shares of another corporation, it has no significant effect on your stockholders' equity.
Select the correct text in the passage.
Which sentences in the passage describe the correct method of inventory planning?
Austin and Carter are managers in different warehouses. Austin plans his inventory such that he can have as large a stock of raw materials, work-in-process (WIP), and finished goods as possible. Carter plans his inventory so that the optimum quantity of raw materials, WIP, and finished goods allow for the smooth movement of
materials at each stage of production. Austin incurs a high inventory storage cost. Carter manages to keep the inventory storage cost low.
Answers
The sentences in the passage that describes the correct method of inventory planning is -Austin plans his inventory such that he can have as large a stock of raw materials, work-in-process (WIP), and finished goods as possible.
Carter plans his inventory so that the optimum quantity of raw materials, WIP, and finished goods allow for the smooth movement of materials at each stage of production.
What is inventory planning?Inventory planning is the process of determining the best quantity and timing of inventory to match sales and production capacity. Inventory management has an impact on a company's cash flow and profits while also contributing to an efficient supply chain.
Inventory planning assists businesses in purchasing the appropriate amount of stock and determining how frequently to reorder. Inventory planning reduces the costs of keeping items in stock while also ensuring that there is enough stock for making and selling items. Inventory planning is an important component of supply chain management.
Therefore, the first two sentences describe the correct method of inventory planning followed by Austin and Carter.
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Madzinga's Draperies manufactures curtains. A certain window requires the following: Direct materials standard 9 square yards at $5 per yard Direct manufacturing labor standard 5 hours at $10 During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $69,300. Direct labor totaled 7,600 hours for $80,560.
Required:
a. Compute the direct materials price and efficiency variances for the quarter.
b. Compute the direct manufacturing labor price and efficiency variances for the quarter.
Answers
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5 - 4.95)*14,000
Direct material price variance= $700 favorable
Actual price= 69,300 / 14,000= $4.95
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (9*1,500 - 14,000)*5
Direct material quantity variance= $2,500 unfavorable
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (5*1,500 - 7,600)*10
Direct labor time (efficiency) variance= $1,000 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (10 - 10.6)*7,600
Direct labor rate variance= $4,560 unfavorable
Actual rate= 80,560 / 7,600= $10.6
The following information is taken from the production budget for the first quarter: Beginning inventory in units 1200 Sales budgeted for the quarter 356000 Capacity in units of production facility 402000 How many finished goods units should be produced during the quarter if the company desires 3200 units available to start the next quarter
Answers
Answer:
358,000
Explanation:
The number of units to be produced is dependent on the desired closing units, the sales and opening balance
Hence,
Opening balance + Units produced - Sales = Closing balance
Let the goods produced be y
1,200 + y - 356,000 = 3,200
y = 3,200 + 356,000 - 1,200
y = 358,000
The company should produce 358,000 units during the quarter if company desires 3,200 units available to start the next quarter.