produces sports socks. The company has fixed expenses of $ 75 comma 000$75,000 and variable expenses of $ 0.75$0.75 per package. Each package sells for $ 1.50$1.50. Read the requirementsLOADING.... Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. ​(Enter the amount to the nearest​ cent.) – = Contribution margin per unit

Answers

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price= $1.5

Unitary variable cost= $0.75

First, we need to calculate the unitary contribution margin:

Contribution margin= selling price - unitary variable cost

Contribution margin= 1.5 - 0.75

Contribution margin= $0.75

Now, we can calculate the contribution margin ratio:

contribution margin ratio= contribution margin/selling price

contribution margin ratio= 0.75/1.5

contribution margin ratio= 0.5


Related Questions

n 2016, Joshua gave $14,000 worth of Microsoft stock to his son. In 2017, the Microsoft shares were worth $23,000. What was the gift tax in 2016? The gift tax exemption in 2016 was the same as in 2017.

Answers

Answer:

$0

Explanation:

There is a provision that if the tax received on the money with respect to the valuation of the property is more than the $14,000 the same is to be taxable

Since there is $14,000 worth so no tax collection could be made on the gift amount

If the gift amount exceeds $14,000 the same is to be taxable

So the gift tax in 2016 would be $0

For what types of information would you use the Quick Analysis tool? Why would you choose to use the Quick Analysis tool and what other options would there be to calculate your data besides using this method? Is one method better than the other, or does it depend on what you are working with? Explain.

Answers

Answer:

The Quick Analysis Tool (QAT) is a tool found in Microsoft Excel Spreadsheet. It is very useful when dealing with an array of data with multiple cell qualities.The QAT gives one the ability to instantly produce various types of charts, including line and column charts, or add mini graphical representation of the data. Other alternative methods of achieving the above would be to go through the Data Tab on the Excel Ribbon and select the specific actions which one would like to effect.No method is better than the other. It all depends on the nature of work one is working on as well as one's dexterity or proficiency. With a simple array of data, one might find the QAT, which comes suggested as soon as the table with the data is highlighted, easy to use.

Cheers!

A and B are substitute goods and are priced the same. A complementary good of A increases in price while the price of the same complentary good for B remains the same. According to the law of demand, with everything else being equal, what will happen to the demand of A

Answers

Answer:

The demand for A will decrease

Explanation:

If A and B are substitute goods it means either A and B can be used in the place of the other as they satisfy same needs. Two goods are said to be complementary goods if the use of 1 of the goods requires the use of the other. For example if good A was a car, it's complementary good will be petrol.

Since A and B can be substituted for each other, if the price of a Complementary good for A increases, the demand for A will decrease because the law of demand says that higher prices causes decrease in demand. People will rather buy good B whose complement remains the same in price since it is cheaper.

I hope you find my answer useful.

Bolster Soda had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Castor Soda had a turnover ratio of 9.3 this year and 9.3 last year. This implies:

Answers

Answer:

This implies Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.

Explanation:

The accounts receivable turnover ratio refers to an accounting ratio that is used to show the how effective a firm is in collecting the receivables or money its clients are owing it.

This implies that accounts receivable turnover ratio is used to determine the extent to which a firm ie effectively managing the credit it gives to customers and how quickly the firm collects that that short-term debt.

The formula for calculating the accounts receivable turnover ratio is as follows:

Accounts receivable turnover ratio =  Net credit sales / Average accounts receivable

When the accounts receivable turnover ratio is high, it implies that the company is efficient is collecting debt and a high percentage of its cutomers are paying up their debts.

The account receivable turnover ratios in the question therefore imply Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.

3. Berkshire Hathaway A shares are trading at $120,000. What split ratio would it need to bring its stock price down to $50

Answers

You can divide to find the answer

Imagine you have the sole marketing rights to a new herbal shampoo that stops hair loss and actually causes new hair growth. You plan to sell your product on an Internet website, which you will advertise on late night television. You are also hoping to obtain free publicity to place stories in men's fashion magazines. You are planning to sell online a 15-ounce bottle for $24.99 plus $7.99 shipping and handling. Using the information provided, identify each element of your marketing mix.

Answers

Answer with Explanation:

There are basically four elements of marketing mix and are given as under:

Product: Herbal shampoo is my product which possesses features of stopping hair losses and increasing hair growth.

Price: The price per bottle is $24.99 and the shipment cost is $7.99 per bottle. The size of the bottle is 15 ounces.

Place: Across the globe through Internet website

Promotion: Late night television advertisement and free publicity in men's fashion magazines will help in growing the business.

Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign ___________ in Argentina.

1. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?

a. Protecting property rights and enforce contracts
b. Providing tax breaks and patents for firms that pursue research and development in health and sciences.
c. Increasing taxes on income from savings
d. Imposing restrictions on foreign ownership of domestic capital.

2. In less developed countries, what does the brain drain refer to?

a. The emigration of highly skilled workers to rich countries
b. Lower productivity due to a malnourished workforce
c. Rapid population growth that increases the burden on the educational system
d. Rapid population growth that lowers the stock of capital per worker

Answers

Answer:

Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign PORTFOLIO INVESTMENT in Argentina.

1. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?

a. Protecting property rights and enforce contracts b. Providing tax breaks and patents for firms that pursue research and development in health and sciences.

Both A and B are essential for increasing economic growth. E.g. if Coke was not able to keep its formula secret in certain country, it will not engage in business there. Investment in R&D is essential for future economic growth.

2. In less developed countries, what does the brain drain refer to?

a. The emigration of highly skilled workers to rich countries

Brain drain refers to the immigration of highly skilled workers from poor countries into rich countries. E.g. a doctor moves from mexico to the US because he/she can earn a much higher salary. But at the same time, all the money and time spent educating the doctor is lost by Mexico and its economy.

The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X = $2,276,000 + $50/ unit; Company Z = $1,052,000 + $98/unit. The selling price is $145 per unit for both companies. Required: 1. Calculate the indifference point between the two cost structures, that is, the amount of unit sales that produce exactly the same operating income for Company X and Company Z.

Answers

Answer:

Indifference point= 25,500

Explanation:

Giving the following information:

Company X = $2,276,000 + $50/ unit

Company Z = $1,052,000 + $98/unit

We need to find the indifference point where the two companies provide the same total cost.

We need to equal both cost equations:

2,276,000 + 50x = 1,052,000 + 98x

1,224,000 = 48x

25,500= x

x= number of units

To prove:

Company X = $2,276,000 + $50*25,500= $3,551,000

Company Z = $1,052,000 + $98*25,500= $3,551,000

Loaded-Up Fund charges a 12b-1 fee of 1.0% and maintains an expense ratio of 0.75%. Economy Fund charges a front-end load of 2% but has no 12b-1 fee and an expense ratio of 0.25%. Assume the rate of return on both funds’ portfolios (before any fees) is 6% per year. How much will an investment of $1,000 in each fund grow to after:

Answers

How much will an investment in each fund grow to after: (LO 4-5)

a. 1 year?

b. 3 years?

c. 10 years?

Answer:

A.  Year 1 = $1036.35

B.  Year 3 = $1158.96

C.  Year 10 = $1714.08

Explanation:

Given an investment of $1000. The end value of the investment will be equal

to I × (1 - front-end load) × (1 + r - true expense ratio)T

Loaded-Up:

Then add the 12b-1 fee to the operating expenses to obtain the true expense ratio: Expense ratio + (12b-1 fee) = 1% + 0.75% = 1.75%

a. Year 1 = $1000 (1 + 0.06 - 0.0175) = $104.25

b. Year 3 = $1000 (1 + 0.06 - 0.0175)^3 = $113.30

c. Year 10 = $1000 (1 + 0.06 - 0.0175)^10 = $151.62

Economy fund:

a. Year 1 = $1000 * 0.98 (1 + 0.06 - 0.0025) = $1036.35

b. Year 3 = $1000 * 0.98 (1 + 0.06 - 0.0025)^3 = $1158.96

c. Year 10 = $1000 * 0.98 (1 + 0.06 - 0.0025)^10 = $1714.08

Zarina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $15,000 in its bank account. The note has a two-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Zarina Corp.
Required:
1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2. Prepare the journal entry on January 1, 2018, the adjusting journal entry to accrue interest on March 31, 2018. Assuming the journal entry from requirement 3 also is recorded on June 30, September 30, and December 31, 2018, prepare the journal entry to record the first annual installment payment on December 31, 2018.
3. Calculate the amount of interest expense that should be accrued for the quarter ended March 31, 2019.

Answers

Answer:

1)

the annual installment = $7,952.94

total Interest paid = $905.88

Year     Beginning            Interest           Repaid            Ending

            Notes Payable     Expense         Principal         Notes Payable

1            $15,000               $600               $7,352.94      $7,647.06

2           $7,647.06           $305.88           $7,647.06      $0

2)

March 31, 2018, accrued interests on notes payable

Dr Interest expense 150

    Cr Interest payable 150

June 30, 2018, accrued interests on notes payable

Dr Interest expense 150

    Cr Interest payable 150

September 30, 2018, accrued interests on notes payable

Dr Interest expense 150

    Cr Interest payable 150

December 31, 2018, accrued interests on notes payable

Dr Interest expense 150

    Cr Interest payable 150

December 31, 2018, first installment on notes payable

Dr Notes payable 7,352.94

Dr Interest payable 600

    Cr Cash 7,952.94

3)

March 31, 2019, accrued interests on notes payable

Dr Interest expense 76.47

    Cr Interest payable 76.47

1. The Amortization schedule is:

Year  Beginning Notes Interest expense   Repaid Principle  Ending notes

                    Payable                                      on notes payable    Payable

2018           15,000                     600                    7,353                     7,647

2019            7,647                      306                     7,647                       0

                                             

The annual payment is an annuity and can be found as:

Loan= Annuity x Present value interest factor of annuity, 4%, 2 years

15,000 = Annuity x 1.886

Annuity = 15,000 / 1.886

= $7,953

Principal repaid in first year = Amount paid - interest

= 7,953 - (15,000 x 4%)

=  7,953 - 600

= $7,353

Principal repaid in second year

= 7,953 - (4% x 7,647)

= $7,647

2.

Date                Account title                                      Debit                 Credit

Jan 1, 2018      Cash                                               $15,000

                       Notes Payable                                                          $15,000

Date                     Account title                                      Debit              Credit

March 31, 2018     Interest expense                             $150

                             Interest payable                                                        $150

Working:

= Loan amount x Rate x period of loan so far

= 15,000 x 4% x 3/ 12 months

= $150

Date                Account title                                      Debit                 Credit

Dec 1, 2018    Interest payable                                $600

                       Notes payable                                  $7,353

                        Cash                                                                          $7,953

3. Interest accrued March 31,2019:

= Loan amount in second year x 4% x 3/12 months

= 7,647 x 4% x 3/12

= $76

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The Boxwood Company sells blankets for $ 35.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
Date Blankets Units Cost
May 03 Purchase 10 $26
10 Sale 5
17 Purchase 16 $27
20 Sale 4
23 Sale 3
30 Sale 9 $28
Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the LIFO Inventory cost method.
a. $108.
b. $81.
c. $252.
d. $130.

Answers

Answer:

The cost of merchandise sold for the sale of May 20 using the LIFO Inventory cost method is a. $108.

Explanation:

LIFO (Last in First Out) assumes that the last goods purchased are the first ones to be issued to the final customer or requisitioning department.

Calculation of the cost of merchandise sold for the sale of May 20 using the LIFO :

Cost of merchandise sold = 4 units × $27

                                           = $108

Conclusion :

The cost of merchandise sold for the sale of May 20 using the LIFO Inventory cost method is a. $108.

At the beginning of its current fiscal year, Willie Corp.’s balance sheet showed assets of $11,400 and liabilities of $5,700. During the year, liabilities decreased by $1,200. Net income for the year was $3,050, and net assets at the end of the year were $6,150. There were no changes in paid-in capital during the year.
Required:
Calculate the dividends, if any, declared during the year.
Stockholders' Equity
Assets = Liabilities + PIC + RE
Beginning $11,900 = $6,300 + 0 +
Changes = (1,200) + 0 +
Ending = + +

Answers

Answer:

$8,750

Explanation:

ASSETS = LIABILITIES + PAID IN CAPITAL + RETAINED EARNINGS

beginning of the year:

$11,400 = $5,700 + paid in capital + retained earnings

paid in capital + beginning retained earnings = $5,700

end of the year:

$6,150 = $4,500 + paid in capital + retained earnings

paid in capital + ending retained earnings = $1,650

ending retained earnings = beginning retained earnings + net income - dividends = beginning retained earnings + $3,050 - dividends

paid in capital + beginning retained earnings - $5,700 = 0

paid in capital + beginning retained earnings + $3,050 - dividends - $1,650 = 0

let X = paid in capital

let Y =beginning retained earnings

X + Y - $5,700 = X + Y + $3,050 - dividends

we eliminate X and Y

-$5,700 = $3,050 - dividends

dividends = $5,700 + $3,050 = $8,750

Gladstone Company issues 200,000 shares of preferred stock for $40 a share. The stock has fixed annual dividend rate of 5% and a par value of $3 per share. If sufficient dividends are declared, preferred stockholders can anticipate receiving dividends of:

Answers

Answer: $30,000

Explanation:

Preferred Dividends are paid at a fixed rate based on the par value and the dividend rate.

If there are 200,000 preferred shares, the amount that is to be paid to them in dividends every year would be;

= 200,000 * 5% * 3

= $30,000

This amount will be paid to them if sufficient dividends are declared to cover this amount. If the shares are Cumulative, they will receive this dividend in totality eventually even if it is not the year the dividends are announced in because these kind of shares accrue the dividends.

Signal mistakenly produced 1,450 defective cell phones. The phones cost $64 each to produce. A salvage company will buy the defective phones as they are for $32 each. It would cost Signal $82 per phone to rework the phones. If the phones are reworked, Signal could sell them for $148 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones.

Answers

Answer:

Incremental income from reworking the phone   is $49,300

Explanation:

                         Scrap              Rework

Sales                $46,400          $214,600

                        (32 * 1,450)      (148 * 1,450)

- Rework costs       0                   $118,900

                                                  (82 * 1,450)

Profit                 $46,400            $95,700

Incremental income from reworking the phone  

= $95,700 - $46,400

= $49,300

The Revenue Reconciliation Act of 1993 modified the 1986 passive loss restrictions by allowing individuals who materially participate in rental real estate to deduct rental losses from other income. To qualify, how much time must a person devote to personal services to real property trades or business during a tax year

Answers

Answer:

The answer is "50%"

Explanation:

Modify the state budget Act of 1974 to boost the FY in 1994 and 1995. It is the maximum federal debt quantity and also to set these other quantities for FY 1996 to 1998. Repudiates in the 1994 and 1995 boundaries on consumption spending.

In the Act of 1993, it modifies the 1986 active losses restrictions so, that it allowed rental damages from other revenues to also be deducted from persons who significantly participated such rental properties.  

The person may allocate 50% to his time towards services rendered throughout a tax year from the business.

Jeff visited a car dealership and test-drove a used car. After discussing the price with Jake, a salesman at the dealership, and learning that he could buy the car for $500 less than the sticker price, Jeff asked Jake to hold the car for him until 8:00 PM that evening so he could bring his wife back to the dealership to see the car. Jake agreed, writing out a note promising not to sell the car until 8:00 PM. The note was written on dealership letterhead, but Jake did not sign his name. The dealership broke that promise and sold the car to Bill before 8:00 PM. Was the dealership free to sell the car? Can Jeff sue Bill and recover the car? Does Bill have a claim against the dealership?

Answers

Answer:

Since this whole sales agreement is about a car, then it falls under the statute of frauds. Any sales contract or offer for any amount of $500 or more needs to be signed. We are not told the final price of the car, but if we consider that only the discount was $500, then we can assume that the price of the car was higher than that. Since the note was not signed, then the promise is not valid.

Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a:

Answers

Answer:

Store of value.

Explanation:

Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a store of value.

A store of value can be defined as the characteristic of an asset which makes it tradable, can be saved, maintain its value, retrievable and exchanged at a future time without it depreciating.

Assets with such functions or characteristics are money, gold, diamonds and other precious stones.

Answer:

Store of value.

Explanation:

I read the story.

Initially, the exchange rate between South Korean won and Tunisian dinar is in equilibrium. Then, there is a decrease in demand for Tunisian dinar. As a result of a decrease in demand for Tunisian dinar, what happens to South Korea's currency in relation to Tunisia's currency

Answers

Answer:

it appreciates

Explanation:

Exchange rate is the rate at which one currency is exchanged for another currency.

If the demand of the Tunisian dinar decreases, supply of the currency would exceed the demand for the currency. as a result of this, the value of the Tunisian dinar falls , it depreciates and the won appreciates.

What is the yield to maturity of a​ one-year, risk-free,​ zero-coupon bond with a $ 10 comma 000 face value and a price of $ 9 comma 800 when​ released?

Answers

Answer:

2.04%

Explanation:

yield to maturity of a zero coupon bond = (face value / market value)¹/ⁿ - 1

YTM = ($10,000 / $9,800)¹/¹ - 1 = 0.0204 = 2.04%

The yield to maturity is the expected return (yield) that a bondholder should receive after holding the bond until maturity. Generally risk free bonds have a very low YTM, and as risk increases, so does the bond's yield.

As illustrated by Textron Inc., when a firm uses the __________ structure hierarchy, the headquarters might rely on strategic controls to set rate-of-return targets and financial controls to monitor divisional performance relative to those targets and then allocate cash flow to the different divisions accordingly.

Answers

Answer:. Competitive

Explanation:

The competitive structure hierarchy is the most costky and also the most centralized form of multidivisional structure.

It should be noted that when this structure is used, the headquarters might rely on strategic controls to set rate-of-return targets and financial controls to monitor divisional performance relative to those targets and then allocate cash flow to the different divisions accordingly.

Solt Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Finished Goods Bal. 1/1 38,000 Credits ? Debits ? Bal. 12/31 50,000 The Cost of Goods Manufactured for the year was $415,000.The unadjusted Cost of Goods Sold for the year was:

Answers

Answer:

The unadjusted Cost of Goods Sold for the year was: $403,000

Explanation:

Calculation of Cost of Goods Sold

Opening Finished Goods Inventory                    $38,000

Add Cost of Goods Manufactured for the year $415,000

Less Ending Finished Goods Inventory             ($50,000)

Cost of Goods Sold                                            $403,000

Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation:
1. Acquired $30,000 cash from the issue of common stock.
2. Borrowed $40,000 cash from National Bank.
3. Earned cash revenues of $48,000 for performing services.
4. Paid cash expenses of $25,000.
5. Paid a $1,000 cash dividend to the stockholders.
6. Acquired an additional $20,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $53,000 cash to purchase land.
9. Determined that the market value of the land is $75,000.
a. Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first event is shown as an example.

Answers

Answer:

sine there is not enough space available, I used an excel spreadsheet.

Explanation:

The last event (9) does not need to be recorded since fixed assets must be reported using their historical value, not their fair market value.

When a buyer or seller of an agricultural commodity takes action to protect against a future change in the value of the commodity, then the buyer or seller is

Answers

Answer: b. Hedging

Explanation:

Hedging is a method of reducing the risk of expected losses in future by using derivative instruments to invest in an opposing strategy to the one you currently have. That way, if losses occur on the one side of the strategy, the other side would still bring you profits.

Granted, this will reduce your profits due to the extra investment but the rationale behind it is to either get some profit or no profit at all. '

A buyer or seller of an agricultural commodity can engage in a forward contract that guarantees that the other party buys the commodity in question for a particular price on a particular date. That way they would not have to worry about a price change.

Q 11.26: The board of directors of Testa Incorporated has decided that they would like to declare a $400,000 cash dividend at some point in the near future. The company currently has Retained Earnings of $2,419,000 and a Cash balance of $827,000. They also have current liabilities totaling $436,000. What is missing in order for Testa to be able to pay a cash dividend

Answers

Answer: B. : a healthy cash reserve

Explanation:

For the company to be able to declare a Dividend, it's cash reserve needs to be healthy. For this to happen use the following formula;

Free cash balance = Available cash balance - Current Liabilities payable

= 827,000 - 436,000

= $391,000

After taking out the money that will be needed to pay the Current Liabilities, there would be an insufficient balance to pay off the Dividends of $400,000.

Their cash reserve is not healthy enough for the dividends to be declared.

The thing that is missing in order for Testa to be able to pay a cash dividend is a healthy cash reserve.

It should be noted that for the company to be able to declare a dividend, it's important that the cash reserve is healthy.

The free cash balance can be calculated as:

= Available cash balance - Current Liabilities payable

= $827,000 - $436,000

= $391,000

When the current liabilities are paid, there would be an insufficient balance to pay off the dividends of $400,000. Therefore, a healthy cash reserve is required.

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Present value with periodic rates. Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new workstations. He has contacted​ A-Dec, and the new equipment and cabinetry will cost ​$25 comma 000. The purchase will be financed with an interest rate of 10​% loan over 6 years. What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year) and monthly payments ​(12 per​ year)? Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow each​ year? What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)?

Answers

Answer:

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)

$2,820.62

and monthly payments ​(12 per​ year)?

$531.13

Compare the annual cash outflows of the two payments.

total semiannual payments per year = $2,820.62 x 2 = $5,641.24total monthly payments per year = $531.13 x 12 = $6,373.56

Why does the monthly payment plan have less total cash outflow each​ year?

The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)?

$2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)

Explanation:

cabinet cost $25,000

interest rate 10%

we can use the present value of an annuity formula to determine the monthly payment:

present value = $25,000

PV annuity factor (5%, 12 periods) = 8.86325

payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62

present value = $25,000

PV annuity factor (0.8333%, 60 periods) = 47.06973

payment = PV / annuity factor = $25,000 / 47.06973 = $531.13

According to the adaptive expectations theory, you are likely to underestimate inflation when the price level is increasing at a_____________ rate and to overestimate inflation when price level is increasing at a___________rate.
a. Increasing
b. Decreasing
c. Constant

Answers

Answer: increasing

Explanation:

Adaptive expectations hypothesis is a theory which states that economic agents such as the individuals, firms and the government will look at past events and experiences to make adjustments on future expectations.

According to the theory, one is likely to underestimate inflation when the price level is increasing at an increasing rate and to overestimate inflation when price level is increasing at an increasing rate.

A closed-end fund starts the year with a net asset value of $12.00. By year-end, NAV equals $12.10. At the beginning of the year, the fund was selling at a 2% premium to NAV. By the end of the year, the fund is selling at a 7% discount to NAV. The fund paid year-end distributions of income and capital gains of $1.50. a. What is the rate of return to an investor in the fund during the year?

Answers

Answer:

One-year return on the fund (including capital gain/loss) 4.19%

Explanation:

An investor could purchase the fund at

12 x (1 + 2%) = 12.24

During the year, received 1.50 in distributions of income

At year-end it could sale it at:

12.10 x (1 - 7%) = 11.253

Capital return: 11.253 - 12.24= -0.987

Total return 1.50 - 0.987 = 0.513

Investment cost: 12.24

Return of return:  return / investment

0.513 / 12.24 =  0,0419117 = 4.19%

Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $465,000, variable manufacturing overhead of $2.10 per machine-hour, and 75,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed: Number of units in the job 10 Total machine-hours 80 Direct materials $ 750 Direct labor cost $ 1,500 If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple

Answers

Answer:

$3,496.80

Explanation:

total predetermined overhead rate = ($465,000 / 75,000 machine hours) + $2.10 per machine hour = $6.20 + $2,10 = $8.30

total costs related to Job 10:

Direct materials $750 Direct labor cost $1,500manufacturing overhead $8.30 x 80 = $664total $2,914

markup = (sales price - unit cost) / unit cost

20% = (sales price - $2,914) / $2,914

$582.80 = sales price - $2,914

sales price = $3,496.80

The _____ was established by Congress to encourage American firms to focus on quality improvement in order to improve their global competitiveness.

Answers

Answer:

The correct answer is: Baldridge Performance Excellence Program.

Explanation:

To begin with, the "Baldridge Performance Excellence Program" is the name given to the program that was established by the United States of America in order to encourage the companies of the country to improve their performance regarding the economy and the globalization that was happening at the time the program was created. It receives its name from the ex secretary of commerce Malcom Baldridge and the award gives to the company selected the recognition of having performance excellence in the its field  

A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national investment of Id = 1000 - 500rw. The foreign economy has desired national saving of = 1300 + 1000rw, and desired national investment of = 1800 - 500rw. The equilibrium world real interest rate equal to:________.

Answers

Answer: 10%

Explanation:

The Equilibrium real interest rate would be the interest rate that equates the Desired savings to the desired investment for both the National and foreign economy.

Desired national saving + Foreign desired national saving = Desired national investment + Foreign desired national investment

1,200 + 1,000rw + 1,300 + 1,000rw = (1,000 - 500rw) + (1,800 - 500rw)

2,500 + 2,000rw = 2,800 - 1,000rw

2,000rw + 1,000rw = 2,800 - 2,500

3,000rw = 300

rw = 0.1

rw = 10%

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