Answer:
Variable cost per unit= $175.5
Explanation:
Giving the following information:
Units Produced Total Costs
80,000 $25,100,000
92,000 $27,206,000
120,000 $32,120,000
To calculate the variable cost per unit under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (32,120,000 - 25,100,000) / (120,000 - 80,000)
Variable cost per unit= 7,020,000 / 40,000
Variable cost per unit= $175.5
Annual Worth and Capital Recovery Calculations U S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year?
Answer:
$5,601,632
Explanation:
we must first calculate the present value of the required investments and the annual costs:
initial investment = $13,000,000 + $10,000,000/1.1 = $22,090,909
annual costs = $1,200,000 x 5.0188 (PV annuity factor, 15%, 10 periods) = $6,022,560
present value of initial investment + annual costs = $28,113,469
we must calculate an annuity that has a present value = $28,113,469 with a 15% discount rate and 10 years:
annuity = $28,113,469 / 5.0188 = $5,601,631.67 ≈ $5,601,632
When a manager uses relationships and formal authority to cause other people in the organization to change their behavior, the manager is _____________.
Answer:
answer choices?
Explanation:
what are the answer choices
What must be the first cost of Alternative B to make the two alternatives equally attractive economically at an interest rate of 8% per year
Answer:
The answer is "21,622.98".
Explanation:
In the given question some information is missing, which can be defined in the given attachment.
To calculate the first cost we first subtract B cost is to X.
NPV = Cash Flow of the sum of PV amount
[tex]PV = \frac{Flow of cash} {(1+i)^n} \\\\ \ Calculating \ the \ NPV \ of \ option \ A: \\\\[/tex]
[tex]= \frac{-16600}{(1 + 0.08)^0}-\frac{2400}{(1 + 0.08)^1}-\frac{2400}{(1 + 0.08)^2} -\frac{2400}{(1 + 0.08)^3}-\frac{2400}{(1 + 0.08)^4}[/tex]
[tex]= \frac{-16600}{1}-\frac{2400}{1.08}-\frac{2400}{1.16}-\frac{2400}{1.25}-\frac{2400}{1.36}[/tex]
[tex]=-16600-2222.22-2068.96-1920-1764.70\\\\=-24,575.88[/tex]
The value of Option A or NPV = -24,575.88
The value of Option B or NPV:
[tex]=-\frac{X}{(1 + 0.80)^0}-\frac{1000}{(1 + 0.08)^1} -\frac{1000}{(1 + 0.08)^2}-\frac{1000}{(1 + 0.08)^3}-\frac{1000}{(1 + 0.08)^4} \\\\ =-\frac{X}{(1.80)^0}-\frac{1000}{(1.08)^1} -\frac{1000}{(1.08)^2}-\frac{1000}{(1.08)^3}-\frac{1000}{(1.08)^4}[/tex]
[tex]= -\frac{X}{1}-\frac{1000}{1.08}-\frac{1000}{1.16}-\frac{1000}{1.25}-\frac{1000}{1.36}\\\\= -X -555.55-862.06-800-735.29\\\\=-X -2952.9[/tex]
The value of Option B or NPV = -X -2952.9
As demanded
In Option B the value of NPV = In Option A the value of NPV
[tex]-X -2952.9= -24,575.88\\\\-X= -21,622.98\\\\X=21,622.98\\[/tex]
The "added worker" effect would cause the labor force to __________ during a recession. Group of answer choices increase decrease remain unchanged either increase or decrease
Answer: Increase
Explanation:
The Added Worker effect refers to a scenario where more family members typically women, enter the job market when the principal breadwinner in the household becomes unemployed. This is done to increase the income streams of the household to cushion the effect of the breadwinner becoming unemployed.
In a recession, more people will lose jobs so more members of a family will join the job market looking to give their households more income streams so the labor force will increase in size.
An individual sets aside a certain amount of his income per month to spend on his two hobbies, collecting wine and collecting books. Given the information below, illustrate both:
a. the price-consumption curve associated with changes curve for wine.
b. the price of wine and the demand
Price Wine 10.00 12.00 15.00 20.00
Price Book 10.00 10.00 10.00 10.00
Quantity Wine 7.00 5.00 4.00 2.00
Quantity Book 8.00 9.00 9.00 11.00
Budget 150.00 150.00 150.00 150.00
Answer and Explanation:
The price consumption curve abbreviated PCC indicates graphically the changes in consumption of goods given changes in prices of the goods
The graph picture attached(please find attached) illustrates the decrease in consumption for wine as the price increases( the higher the price, the lower the demand), hence the downward sloping PCC curve. The other diagram B for book shows increase in quantity demanded even while price is constant causing a straight line not downward or upward sloping curve. This can happen as a result of other factors such as increase in quality of product or other factors. Also notice that we are working with the assumption that consumer's budget is constant so that it does not contribute as a factor for increase in demand
Absolute Manipulation Manufacturing's (AMM) standards anticipate that there will be 4 pounds of raw material used for every unit of finished goods produced. AMM began the month of May with 3,500 pounds of raw material, purchased 18,700 pounds for $16,830 and ended the month with 1,900 pounds on hand. The company produced 4,700 units of finished goods. The company estimates standard costs at $1.30 per pound. The materials price and efficiency variances for the month of May were:
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard:
Quantity= 4 pounds per unit
Cost= $1.3 per pound
Actual:
Purchase= 18,700
Used= 3,500 + 18,700 - 1,900= 20,300
Cost= 16,830/18,700= $0.9 per pound
Units produced= 4,700 units
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= (1.3 - 0.9)*18,700
Direct material price variance= $7,480 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (4*4,700 - 20,300)*1.3
Direct material quantity variance= $1,950 unfavorable
BPR is part of the larger discipline of ________, which consists of methods, tools, and technology to support and continuously improve business processes.
Answer:
Business process management.
Explanation:
Business process re-engineering (BPR) is part of the larger discipline of business model optimization, which consists of methods, tools, and technology to support and continuously improve business processes.
The main purpose of business process re-engineering (BPR) is to remove any unnecessary process which does not add value to a business, then to simplify and automate other processes left so as to reduce costs, cycle time, and labor.
Hence, this would ensure that the business is running smoothly without any downtime, backlogs or inefficiency.
A university bookstore buys mechanical pencils from a wholesaler. The wholesaler offers discount for large order quantity per shipment according to the following price schedule:
Order Quantity Price Per Unit
1 to 200 $4.00
201 to 1,000 $3.60
1,001 to 2,000 $3.40
2,001 and greater $3.25
The bookstore expects an annual demand of 2,500 units. It costs $10 to place an order, and the annual cost of holding a unit in stock is 30% of the unit’s procurement price. Determine the best order quantity.
Answer:
226 units
Explanation:
Formula : [tex]\sqrt{\frac{2 * Annual Demand * Ordering Cost}{Holding Cost}[/tex]
[tex]\sqrt{\frac{2*2500*10}{0.3*3.25} }[/tex] = 226
The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The reorder point is the inventory management system in which a certain level of inventory is set as a trigger for reordering the stock. Ordering cost is determined by the number of order placed.
Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2. At December 31 Year 2 Year 1 Common Stock, $5 par value $500,000 $450,000 Paid-in capital in excess of par 948,000 853,000 Retained earnings 688,000 582,000 A. $95,000. B. $201,000. C. $69,000. D. $79,000. E. $50,000.
Answer:
C. $69,000
Explanation:
Computation of the cash paid for dividends during Year 2
First step is to calculate the difference in Retained earnings for Year 2 and Year 1
Retained earnings =$688,000-$582,000
Difference in retained earnings =$106,000
Second step is to calculate for the cash paid for dividends during Year 2
Using this formula
Cash paid dividend = Year 2 Net income- Retained earnings difference
Let plug in the formula
Cash paid dividend=$175,000-$106,000
Cash paid dividend =$69,000
Therefore the cash paid for dividends during Year 2 will be $69,000
The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:
September October November
Sales $250,000 $300,000 $315,000
Manufacturing costs 150,000 180,000 185,000
Selling and administrative expenses 42,000 48,000 51,000
Capital expenditures _ _ 200,000
The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.
Current assets as of September 1 include cash of $40,000, marketable securities of $75,000, and accounts receivable of $300,000 ($60,000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively. Current liabilities as of September 1 include $40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $55,000 will be made in October. Bridgeport’s regular quarterly dividend of $25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $50,000.
Required:
1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Enter all amounts as positive values except for overall cash decrease and deficiency which should be indicated with a minus sign.
Bridgeport Housewares Inc.
Cash Budget
For the Three Months Ending November 30
September October November
Estimated cash receipts from:
Cash sales $ $ $
Total cash receipts $ $ $
Less estimated cash payments for:
Manufacturing costs $ $ $
Selling and administrative expenses
Capital expenditures
Other purposes:
Income tax
Dividends
Total cash payments $ $ $
$ $ $
Less cash balance at beginning of month
Cash balance at end of month $ $ $
Plus minimum cash balance
Excess or (deficiency) $ $ $
2. The budget indicates that the minimum cash balance (will or will not) be maintained in November. This situation can be corrected by (inevesting or borrwing) and/or by the (purchase or sale) of the marketable securities, if they are held for such purposes. At the end of September and October, the cash balance will (exceed or be sort of) the minimum desired balance.
Answer:
Bridgeport Housewares Inc.
1. Monthly Cash Budget with supporting schedules for September, October, and November:
a. Cash Budget for September, October, and November:
September October November
Beginning balance $40,000 $111,0000 $137,500
Cash receipts 253,000 259,500 288,000
Total cash available $293,000 $370,500 $425,500
Cash Payments:
Payment for manufacturing costs 140,000 130,000 135,000
Income tax 55,000
Dividend 25,000
Selling & administrative expenses 42,000 48,000 51,000
Capital expenditures _ _ 200,000
Total cash payment $182,000 $233,000 $411,000
Balance $111,000 $137,500 $14,500
Minimum Cash Balance 50,000 50,000 50,000
Cash to invest or borrow $61,000 $87,500 -$35,500
b. Supporting Schedules:
i) Cash Collections:
September October November
10% Cash Sales, month of sales $25,000 $30,000 $31,500
Sales on account: 90%
70% following month of sales 157,500 189,000
30% 2nd month following sale 67,500
30% of July Sales 60,000
70% of August 168,000
30% of August 72,000
Total cash receipts $253,000 $259,500 $288,000
2. The budget indicates that the minimum cash balance (will or will not) be maintained in November. This situation can be corrected by (investing or borrowing) and/or by the (purchase or sale) of the marketable securities, if they are held for such purposes. At the end of September and October, the cash balance will (exceed or be sort of) the minimum desired balance.
Explanation:
a) Data and Calculations:
1. Budget Information:
September October November
Sales $250,000 $300,000 $315,000
Manufacturing costs 150,000 180,000 185,000
Selling and administrative expenses 42,000 48,000 51,000
Capital expenditures _ _ 200,000
2. Cash Collections:
September October November
10% Cash Sales, month of sales $25,000 $30,000 $31,500
Sales on account: 90%
70% following month of sales 157,500 189,000
30% 2nd month following sale 67,500
30% of July Sales 60,000
70% of August 168,000
30% of August 72,000
Total cash receipts $253,000 $259,500 $288,000
3. Manufacturing Costs:
Manufacturing costs 150,000 180,000 185,000
less Depreciation, insurance, &
property tax expenses 50,000 50,000 50,000
Remainder 100,000 130,000 135,000
4. Remainder of Manufacturing costs:
80% paid in the month incurred 80,000 104,000 108,000
Remainder 20%, month following 20,000 26,000 27,000
August manufacturing cost: 40,000
Payment for manufacturing costs $140,000 $130,000 $135,000
5. Cash Payments:
Payment for manufacturing costs 140,000 130,000 135,000
Income tax 55,000
Dividend 25,000
Selling & administrative expenses 42,000 48,000 51,000
Capital expenditures _ _ 200,000
Total cash payment $182,000 $233,000 $411,000
Other relevant information:
Current assets as of September 1:
Cash of $40,000
Marketable securities of $75,000
Accounts receivable of $300,000 ($60,000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively
Current Liabilities:
September 1 Accounts payable = $40,000 incurred in August for manufacturing costs.
Selling and administrative expenses are paid in cash in the period they are incurred.
Income tax = $55,000 October
Quarterly Dividend of $25,000 in November
Minimum cash balance of $50,000 monthly
b) When Bridgeport Housewares Inc prepares budgeted monthly cash budgets, important highlights are indicated. For instance, it becomes easier for the management of Bridgeport to know when to borrow cash to meet the minimum cash balance or in the alternative sell off some marketable securities. It is also easier for Bridgeport to understand that it can be having excess cash which should not be allowed to sit idle, but can be invested in marketable securities. The cash budgets and their preparation also help Bridgeport to be better prepared to exert the required efforts to generate sales revenue in order not to jeopardize its liquidity position. It can also help Bridgeport to understand that the capital expenditure could have been paid for instalmentally starting from September or so instead of lumping the sum in November. There are many other insights garnered from the cash budgets and their preparation.
Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:___________.
A) started in process during the period.
B) in process during the period.
C) completed and sold during the period.
D) completed during the period.
Answer:
D) completed during the period.
Explanation:
The jobs that have been completed are transferred from Work In Process Account to the Finished Goods Inventory Account.
It is from this Finished Goods Inventory that the Cost of Sales would be determined for those jobs sold.
Nick and Dale owned Buddy Corporation and had contacted Kurt's Warehousing to about storing some goods. Per the warehouse receipt, Nick and Dale would store the goods on its premises. This is an example of _______________.
Answer:
Flex warehousing
Explanation:
Flex warehousing also known as Public Warehousing, is a form of warehousing in which various firms seek to store high-turnover product in spaces for short periods of time.
It is a type of warehouse space which allows many clients' products to be received, handled, stored, and transported out in a flexible environment.
It is used to cater for overflow of goods, so as to maximize the space and labor reserved for only one contract client at a time.
Hence , in this case, this is an example of FLEX WAREHOUSING.
Part 1 Household consumption, which accounts for about _______% of the economy, grew at a 4.2% annualized rate during the second quarter of 2016.
Part 2 Which component of GDP would cause the largest increase in GDP if it increased by 5%
Answer:
1) Household consumption, which accounts for about 68%* of the economy, grew at a 4.2% annualized rate during the second quarter of 2016.
*Data obtained from federal government sources.
2) Since household/consumer spending (consumption) represents almost 70% of the nation's GDP, any change will cause a major change in the total GDP. E.g. if consumption increases by 5%, then the whole economy will grow by 5% x 68% = 3.4%.
During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?
Answer:
qualified acquisition debt = $750,000
qualified home equity debt = $0
Explanation:
Qualified acquisition debt refers to the debt incurred to purchase or build your home. In this case, Cary and Bill are allowed to itemize the interests paid for up to $750,000 of the acquisition debt ($375,000 if filing separately). This limit was reduced due to the TCJA of 2017, and will remain in place until 2025. After 2025, the limit will return to the normal $1,000,000.
Certain amount of interests on qualified home equity loans will also return in 2025, but currently they are not deductible.
You are scheduled to receive $35,000 in two years. When you receive it, you will invest it for 6 more years at 7 percent per year. How much will you have in 8 years?
Answer:
$52,526
Explanation:
In two years i have $35,000.
the amount invested thus the Principle amount is $35,000
Pv = $35,000
r = 7 %
PMT = $0
n = 6
Fv = ?
Note that The 8 th year is the sixth year of this investment.
FV = PV × (1 + r) n
= $35,000 × ( 1 + 0.07) 6
= $52,525.56
= $52,526
In the aftermath of the global economic crisis that started to take hold in 2008, U.S. government budget deficits increased dramatically, yet interest rates on U.S. Treasury debt fell sharply and stayed low for quite some time. Does this make sense? Why or why not
Answer and Explanation:
the supply effect of large deficits should cause interest rates to go up. The economic crisis caused wealth and income to be lower
which brought about a depression inTreasury bond demand, corporate bond supply also fell the more as investment opportunities reduced. A greater leftward shift in the bond
supply curve than the rightward shift in the bond demand curve would bring about a rise in
bond prices and a reduction in interest rates. Because off the seriousness of the global crisis, the United States
treasury debt became safe for forms of investment, with relative risk falling and liquidity
for U.S. treasury debt rising.
This then increased the U.S. treasury bond demand, resulting into higher
bond prices and lower yields.
Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1.Common Stock14.Accumulated Depreciation-Buildings. 2.Discount on Bonds Payable.15.Cash Restricted for Plant Expansion. 3.Treasury Stock (at cost).16.Land Held for Future Plant Site. 4.Notes Payable (short-term).17.Allowance for Doubtful Accounts. 5.Raw Materials18.Retained Earnings. 6.Preferred Stock (Equity) Investments (long-term).19.Paid-in Capital in Excess of Par-Common Stock. 7.Unearned Rent Revenue.20.Unearned Subscriptions Revenue. 8.Work in Process.21.Receivables-Officers (due in one year). 9.Copyrights.22.Inventory (finished goods). 10.Buildings.23.Accounts Receivable. 11.Notes Receivable (short-term).24.Bonds Payable (due in 4 years). 12.Cash.25.Noncontrolling Interest. 13.Salaries and Wages Payable. Prepare a classified balance sheet in good form
Answer:
Denis Savard Inc
Classified Balance sheet
Amount$ Amount$ Amount$
Assets
Current Assets
Cash xxx
Less Cash Restricted for Plant xxx xxx
Expansion
Accounts Receivable xxx
Less Allowance for Doubtful debt xxx xxx
Notes Receivable xxx
Receivables-Officers xxx
Inventory
Finished goods xxx
Work in Process. xxx
Raw Materials xxx xxx
Total Current Assets xxx
Stockholders Equity
Common Stock xxx
Add Paid-in Capital in Excess of xxx
Par-Common Stock.
Total paid in capital xxx
Add Retained Earnings. xxx
Total paid in capital and retained earnings xxx
Less Treasury Stock (at cost) xxx
Total Stockholders Equity xxx
Total Liability and Stockholders Equity xxx
Liability and Stockholders Equity
Current Liability
Salaries and Wages Payable. xxx
Unearned Subscriptions Revenue. xxx
Unearned Rent Revenue. xxx
Total Current Liability. xxx
Long term liabilities
Bonds Payable (due in 4 years) xxx
Less Discount on Bonds Payable xxx xxx
Total Long term liabilities. . xxx
Long term Investment
Preferred Stock (Equity) Investments. xxx
Land Held for Future Plant Site.. xxx
Cash Restricted for Plant Expansion. xxx
Total Long term Investment. xxx
Property, Plants and Equipment
Building. xxx
Less Accumulated Depreciation xxx xxx
- Buildings
Total Property, Plants and . xxx
Equipment
Intangible Assets
Copyrights. . xxx
Total Intangible Assets. . xxx
Total Assets. . xxx
All of the following are assumptions facing opposing forces of reducing costs and adapting to local markets that international business people should be aware of except? Homogenous customer needs worldwide People around the world are willing to sacrifice preferences for lower prices and higher quality Economies of scale can be obtained in production and marketing through supplying worldwide Lowering international synergy and cost via the value chain matrix
Answer: Lowering international synergy and cost via the value chain matrix
Explanation:
Theodore Levitt came up with some assumptions facing opposing forces of reducing costs and adapting to local markets that international business people should be aware of which include;
On a global scale, customer needs are beginning to become homogeneous.People are willing to sacrifice their preferences for better quality products at a cheaper quality which gives Multinational Companies a chance to offer them better products than local producers due to their large sizes and Economies of scale.Having to supply the world can lead to Economies of scale in production and marketing due to the larger market.Lowering international synergy and cost via the value chain matrix is not one of the assumptions espoused by Theodore Levitt and so is the correct answer.
Oriole Company had $197,000 of net income in 2019 when the selling price per unit was $152, the variable costs per unit were $90, and the fixed costs were $571,800. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Oriole Company is under pressure from stockholders to increase net income by $99,200 in 2020.
Required:
a. Compute the number of units sold in 2019.
b. Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit .
c. Assume that Oriole Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Net income= $197,000
Selling price per unit= $152
Unitary variable cost= $90
Fixed costs= $571,800
Desired profit= 99,200 + 197,000= $296,200
First, we need to calculate the number of units sold:
Contribution margin per unit= 152 - 90= $62
Total contribution margin= net income + fixed costs
Total contribution margin= 197,000 + 571,800= $768,800
Units sold= total contribution margin / unitary contribution margin
Units sold= 768,800/62= 12,400 units
Now, to determine the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profir) / contribution margin per unit
Break-even point in units= (571,800 + 296,200) / 62
Break-even point in units= 14,000 units
Finally, we need to determine the selling price for 12,400 units and the desired profit of $296,200.
12,400= 868,000 / (selling price - 90)
-1,116,000 + 12,400selling price= 868,000
12,400 selling price = 1,984,000
selling price= $160
Target ROI is 19% Invested Capital is $569,512 Full Cost per unit $1,124 Expected sales volume is 959 units. If the company prices each unit to earn the target ROI, what amount of profit would be added to the cost of each unit?
Answer:
The amount of profit to be added to the cost of each unit = $112.83
Explanation:
Profit is the difference between the selling price per unit and full cost per unit. To determine the the amount of profit to be added , we will divide the total return on invested capital by the number of units to be produced and sold. This is given below as follows:
Target return = ROI (%) × Invested capital
= 19% × 569,512 = 108,207.28
Profit per unit = Total return/Number of units
= $108,207.28 /959 units
= $112.83 per unit
Selling price per unit = Full cost per unit + profit per unit
= 1,124 + 112.83 = 1,237.66 (this is not required anyway)
The amount of profit to be added to the cost of each unit = $112.83
The amount of profit that would be added to the cost of each unit is $112.83 that should be come after calculating the target return.
Calculation of the amount of profit:Before that the following calculations need to be done
Target return = ROI (%) × Invested capital
= 19% × 569,512
= 108,207.28
Now
Profit per unit = Total return/Number of units
= $108,207.28 /959 units
= $112.83 per unit
hence, The amount of profit that would be added to the cost of each unit is $112.83.
Learn more about sales here: https://brainly.com/question/24343063
Banks often estimate inflation. You can see what they think inflation will be if you know how much they charge for loans and how much they expect to earn. Suppose the nominal interest rate is 7% and the real interest rate is 2%. Given these interest rates, the bank thinks inflation will be_________ %
Answer:
5%
Explanation:
To find the answer, we use the Nominal Interest Rate formula:
Nominal Interest Rate = Real Interest Rate + Inflation Rate
Now, we plug the amounts into the formula, and confirm that the answer is correct:
7% = 2% + 5%
As we can see, the nominal interest rate is the sum of the real interest rate and the inflation rate. Therefore, banks will estimate the nominal interest rate taking into account the expected inflation rate.
A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus.
Answer and Explanation:
From the diagram in the picture (please find attached) we see that the competitive price and quantity lies at the marginal cost( which the producer cannot go below). The consumer surplus lies just below the demand curve(the downward sloping curve with) and the producer surplus is above the marginal cost. Note the producer surplus is the difference between what the supplier is willing to sell and how much he actually sells, the marginal cost is the lowest the supplier would want to sell. This applies to the consumer surplus too
The producer surplus region was indicated with vertical strokes in the diagram attached
If the Fed lowers the interest rate, then A. only consumption expenditure decreases. B. only investment decreases. C. consumption expenditure decreases and investment increases. D. net exports will increase. E. both consumption expenditure and investment decrease.
Answer: D. net exports will increase.
Explanation:
Lower interest rates decrease the value of a currency because less investors will invest in it. This reduced currency value will mean that exports will become cheaper as they are quoted in the domestic currency. As the exports are cheaper, more countries will buy them leading to an increase in Net exports.
The employer amount of FICA taxes that Red Mountain is required to pay is equal to the amount that it withholds from its employees. Assume no other payroll taxes are incurred at this time. What is Red Mountain's total expense with regards to this payroll
Answer:
$189,000
Explanation:
The computation of total expense with regards to this payroll is shown below:-
Total expense = Salaries and wages earned by employees + Employer's portion of FICA taxes
= $180,000 + $9,000
= $189,000
Therefore for computing the total expenses with regards to this payroll we simply applied the above formula and we ignore all other values as they are not relevant.
A 4% loan of $20,000 is to be repaid by level annual installments. The principal in the 4th installment is $450. Find the amount of each installment.
Answer:
Explanation:
Please note that this question we have to do by hit and trail method. Every annual payment has 2 components,
Interest and Principal repayment
Interest is higher at the beginning and principal repayment is lower. We have not been given the time for the loan.
So i will tell you how to calculate the Total annual installment by hand
and then we will make table of payments to see if we are getting 450 principal repayment in month 4
We will do 3-4 iterations to get the answer
Loan Amount = 20,000
Rate = 4%
Principal repayment in year 4 = 450
Let say time = n years
Annual installment = Loan amount * ( rate * ( 1+rate ) ^n ) / ( ( 1 + rate ) ^n -1 )
assume n = 25 years
Annual installment = 20,000 * ( 0.04* ( 1.04 ) ^ 25 ) / ( ( 1.04 ) ^25 -1 ) = 1280.24
The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the nest department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs arc added evenly throughout the mixing process and the company uses the weighted-average method.
Compute the total equivalent units of production for direct materials and conversion costs for October.
Answer:
The total equivalent units of production are as follows:
For direct materials = 62,000 units
For conversion costs = 42,000 units
Explanation:
These can be computed by preparing statements of equivalent units as follows:
Statement of Equivalent Units (EU) (Weighted average)
For October
For Materials
Particulars Units (a) Complete (%) (b) EU (c = a * b)
Transferred 38,000 100% 38,000
Ending WIP 24,000 100% 24,000
Total 62,000 62,000
Statement of Equivalent Units (EU) (Weighted average)
For October
For Conversion Costs
Particulars Units (a) Complete (%) (b) EU (c = a * b)
Transferred 38,000 100% 38,000
Ending WIP 24,000 20% 4,800
Total 62,000 42,000
Conclusion
The total equivalent units of production are as follows:
For direct materials = 62,000 units
For conversion costs = 42,000 units
Neutrino Industries stock trades at $49 per share and there are 120 million shares outstanding. The management would like to raise $400 million in an SEO. If the underwriter charges 6% of gross proceeds, how many shares must it sell?
Answer:
Neutrino Industries must sell 8.68 million shares to raise $400 million.
Explanation:
To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:
Gross proceeds = $49 * B, or $49B
Underwriter charges = 6% * $49B = $2.94B
To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:
$49B – $2.94B = $400,000,000
$46.06B = 400,000,000
B = 400,000,000 / 46.06
B = 8,684,324.79 shares, or 8.68 million shares.
Therefore, Neutrino Industries must sell 8.68 million shares to raise $400 million.
A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 3.0 per minute. In serving themselves, customers take about 14 seconds, exponentially distributed. a. How many customers would you expect to see, on average, at the coffee urn? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer: 3 customers.
Explanation:
Given the following :
Arrival rate of customers = 3 customers per minute
Service time = 14 seconds
Then if service time is 14 seconds, the service rate per minute will be 60/14 = 4.29 = 4 (nearest whole number)
Service rate = 4 customers per minute.
Number of customers at coffee urn(Nc) :
Nc = (arrival rate) /(service rate - arrival rate)
Nc = (3) / (4 - 3)
Nc = 3 / 1
Nc = 3
Therefore, average number of customers expected at coffee urn = 3
Ted failed to disaffirm a contract during his minority or within a reasonable time after reaching majority. The contract was automatically:
Answer:
Ratified
Explanation:
Which of the following is an example of a hidden variable? Quality of life is a hidden variable because it cannot be measured directly but must be inferred from measurable variables such as wealth, success, and environment.
Answer:
Quality of life is a hidden variable because it cannot be measured directly but must be inferred from measurable variables such as wealth, success, and environment.
Explanation:
Hidden variable: The term "hidden variable" is described as the proposition that specific "statistical models" of any physical systems, for example, Quantum mechanics are being incomplete inherently, and along with this the apparent randomness of a particular system is being dependent not on "collapsing functions" but instead it is due to any unmeasurable or unseen or hidden variables.