Answer:
Price of bond = €875.09
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond would be worked out as follows:
Step 1
Calculate the PV of interest payments
Annual interest payment
= 3.8% × 1,000 = 38
PV of interest payment = A ×(1- (1+r)^(-n))/r
r- annual yield = 4.7%
n- 23
PV of interest payment= 38 × (1-(1.047^(-23)/0.047 = €527.37
Step 2
PV of redemption Value
PV = RV × (1+r)^(-n)
PV = 1,000 × (1.047)^(-23) = €347.717
Step 3
Price of bond
= 527.37+ 347.717 = €875.09
Price of bond = €875.09
While vacationing in Florida in November, Sally was seriously injured in an automobile accident. Sally died several days later. Complete each of the following statements which outline the Federal estate tax rules to each of these items.
A. Bruce, Sally's son and executor, incurred $6,200 in travel expenses in flying to Florida, retrieving the body, and returning it to Frankfort, Kentucky for burial.
B. Sally had pledged $50,000 to the building fund of her church. Bruce paid this pledge from the assets of the estate.
C. Prior to her death, Sally had promised to give her nephew, Gary, $20,000 when he passed the bar exam. Gary passed the exam late in the year, and Bruce kept Sally's promise by paying him $20,000 from estate assets.
D. At the scene of the accident and before the ambulance arrived, someone took Sally's jewelry (i.e., Rolex watch and wedding ring) and money. The property (valued at $33,000) was not insured and was never recovered.
E. As a result of the accident, Sally's auto was totally destroyed. The auto had a basis of $52,000 and a fair market value of $28,000. In January of the next year, the insurance company pays Sally's estate $27,000.
Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.15 direct labor-hours. The direct labor rate is $7.00 per direct labor-hour. The production budget calls for producing 6,500 units in April and 6,200 units in May. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?
Answer:
$13,335
Explanation:
Required production in units for April and May are 6,500 units and 6,200 units respectively.
Direct labor hours needed is 0.15 for both months.
Total direct labor hours needed for each month would be;
April
= 6,500 units × 0.15
= 975
May
=6,200 units × 0.15
= 930
Direct labor rate per hour for each months is $7
Total direct labor cost for April would be;
= $7 × 975
= $6,825
Total direct labor cost for May would be;
= $7 × 930
= $6,510
Therefore, total direct labor cost for both months April and May would be;
= $6,825 + $6,510
= $13,335
Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa powder as is, or it can process the cocoa powder further into chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue:
Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response.
Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "O" in the appropriate input box.)
Sell as Sell as Sell as Boxed
Cocoa Chocolate Assorted
Powder Syrup Chocolates
Revenue
Less: Additional processing costs
Net benefit
Cocoa powder $ 14,000
Chocolate syrup 104,000
Boxed assorted chocolates 202,000
The cost of transforming the cocoa powder into chocolate syrup would be $70,000. Likewise, the company would incur a cost of $176,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of S9,500 eats up most of the cocoa powder profits.
Answer:
No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.
Explanation:
Profit = Sales revenue - Processing Cost
1-The Cocoa powder result in $3,900 profit ($14,000 - $10100) to the Choco Heaven company
2- If the company makes Chocolates syrup it will get profit of $34,000 ($104,000 - $70,000)
3- f the company makes Boxed assorted Chocolates it will get profit of $26,000 ($202,000 - $176,000)
Continuous budgeting is the practice of revising the entire set of budgets for the periods remaining and adding new budgets to replace those for the periods that have elapsed.
a) true
b) false
Answer: True
Explanation:
Continuous Budgeting is a process by which a company prepares budgets for multiple time periods and then prepares a new one once one of the periods has elapsed as well as revising the budgets still to be used to ensure that they cater for the volatile business environment of today.
This ensures that the Business is more capable of dealing with the said volatility as well as making sure that the business caters for the same period of time i.e, if the budget was for 12 months and 1 month elapses, adding another month would keep it at 12 months.
Identifying the median voter
Sam, Andrew, and Darnell are roommates who are trying to decide how much money to spend on heat in their apartment each month.
A. Andrew would ideally contribute $15. However, he would prefer contributing $55 to contributing $0 because he does not want to freeze.
B. Sam hates being cold. Therefore, he would ideally like each to contribute $55 to heat, and his utility declines at a constant rate as the roommates decrease the amount of money they spend.
C. Darnell does not care about heat and is on a tight budget. Therefore, he prefers to contribute no money to heat, and his utility declines at a constant rate as the roommates increase the amount of money they spend.
Suppose the three roommates vote on spending either so, $15, or $55 on heat using the Borda count system of voting. That is, each roommate awards three points to his first choice, two points to his second choice, and one point to his third choice
Answer:
The median voter here is $55 based on the allocated points in order of preference.
This is the vote that avoids the two extremes of 5 and 7
Explanation:
Voting with the Borda count system of voting:
$0 $15 $55
Andrew 1 3 2
Sam 1 2 3
Darnell 3 2 1
Total points 5 7 6
The median voter is the selection that is based on choosing the median in a spectrum, so that the extremes are avoided. In this case, the extremes win points 5 and 4, with the median as 6.
The voting was done by using the Borda count system of voting. With this system, points are allocated based on personal preferences. The preference that is favored most is given the highest point, and so on. This implies that the preference that is least favoured is given the lowest point.
During the Great Recession, the U.S. budget deficit worsened as tax collections fell and payments to the poor rose. In other words, the deficit worsened as a result of _________ in the federal budget.
ABC Company manufactures a contraption meant to enable a rider to fly behind a ski boat. After a few months, ABC begins to hear of injuries when riders crash into water or boats. In hopes of escaping liability, the president of ABC Company decides to discontinue business and sell all assets to XYZ Company. The president of XYZ Company is excited to purchase the assets at a bargain price and help ABC avoid liability based upon the assertion of the president of ABC that XYZ cannot legally be held liable for the flying accidents. Which of the following is true in a majority of states applying the traditional successor liability rule?
a. XYZ Company will not be held liable for the accidents so long as there is no contractual agreement by which it agrees to accept liability.
b. XYZ Company will only be held liable if it continues to manufacture the same product lines as ABC.
c. XYZ Company will only be held liable if it keeps the same tax number as ABC Company.
d. XYZ Company will likely be held liable for the accidents based upon the transaction being entered into wrongfully in order for ABC Company to escape successor liability.
Answer:
d. XYZ Company will likely be held liable for the accidents based upon the transaction being entered into wrongfully in order for ABC Company to escape successor liability.
Explanation:
Successor liability basically means that any creditor or plaintiff can recover from the company or individual that purchases an asset or a business (in this case ABC company) from any liabilities that may have been originated before the exchange transaction was finished, even if the firm or individual that purchases the asset or company did not assume or will not want to assume any liabilities as part of the exchange deal.
In other words, XYZ is liable for any lawsuits regarding the contraption device previously manufactured by ABC.
Fuji film was also able to succeed in the US due to their history of catering to a sophisticated Japanese photo market in their native market. Which aspect of the diamond of national competitive advantage does this draw from
Answer:
Option B. Demand conditions
Explanation:
The demand conditioning is the domestic demand of the product that forms greater impact on the demand and innovation of the product in its domestic market. This great domestic demand of Fuji film products stipulated greater innovation which not only differentiated the product but also increased the demand in other markets like US and Europe.
This increased Demand conditions enabled the company to gain competitive advantage.
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,200,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021:
$9,000,000, 10% bonds
$6,000,000, 8% long-term note
Construction expenditures incurred during 2021 were as follows:
January 1 $900,000
March 31 1,500,000
June 30 1,160,000
September 30 900,000
December 31 700,000
Required:
Calculate the amount of interest capitalized for 2016 using the specific interest method.
Answer:
$255,960
Explanation:
Weighted average expenses:
January 1, $900,000 x 12/12 = $900,000March 31, $1,500,000 x 9/12 = $1,125,000June 30, $1,160,000 x 6/12 = $580,000September 30, $900,000 x 3/12 = $225,000December 31, $700,000 x 0/12 = $0total $2,830,000average interest rate for general debt = ($9,000,000 x 10%) + ($6,000,000 x 8%) = $1,380,000
$1,380,000/$15,000,000 = 9.2%
interest expense:
specific debt = $2,200,000 x 9% = $198,000
general debt = $630,000 x 9.2% = $57,960
total capitalized interest = $255,960
Construction Exp
Jan 900,000 1 900,000
Mar 1,500,000 0.75 1,125,000
June 1,160,000 0.5 580,000
Sept 900,000 0.25 225,000
Dec 700,000 0 -
5,160,000 2,830,000
Weighted avg
900,000
480,000
1,380,000
interest on difference interest on construction
9.20% 8.0%
630,000 2,200,000
57,960 176,000.0
Amount capitalized 233,960.0
Which of the following determine(s) the level of real interest rates? I) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds
Answer:
I II & III - All of the above.
Explanation:
Real interest rate is an interest rate that shows actual cost of funds to a borrower having taken into consideration the effects of inflation while also reflecting actual gain to the lender. It shows how purchasing power has value on interest paid on a loan.
With regards to the above, determinants of real interest rates are; the supply of savings by household and business firms, the demand for investment funds and the government's net supply/and or demand for funds.
If you take $100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change? Assuming that there are no new loans created from the deposit.\
Answer:
Neither changed
Explanation:
Based on the information given, if you decide to take the amount of $100 out of your piggy bank and deposit the amount in your checking account this means that neither M1 nor M2 changed, what only changed was the form of M1, therefore based on these you will have less availability of money or cash but have a larger checking account which allows you to make withdrawals and as well as deposits.
You have just recieved notification that you have won the $2 million first prize in the centennial lottery. However, the prize will be awarded on your 100th birthday, 76 years from now.
Requried:
What is the present value of your windfall if the appropriate discount rate is 8%?
Answer:
$5,765.35
Explanation:
Preparation of the present value of your windfall if the appropriate discount rate is 8%
To find the present value we are going to use this formula
PV = FV / (1 + r)^t
Where,
FV=$2,000,000
r=8%
t=76
Let plug in the formula
PV = 2,000,000 / (1 + .08)^⁷⁶
PV = $2,000,000 / (1.98)^⁷⁶
PV=$2,000,000/346.90
PV=$5,765.35
Therefore the present value will be $5,765.35
explain the procedure of inducting a new technology on a given business
The correct answer to this open question is the following.
Although the question does not provide a specific reference, we can say the following.
A general procedure of inducting a new technology on a given business would be like this.
First, really search for the technological necessities in your company. Take people's opinions. Once you have identified your priority, proceed informing every single one of the employees the reason and purpose of this new piece of technology or software. Remember that the benefit of it must be for all the areas in some way. Then give the specifics reasons for how this new technology will help employees' work. This novelty should be seen as an advantage, not an excuse for delaying work under the argument that "it is complicated."
Provide the proper training so everybody can get familiar with the technology.
Give the proper time so everybody is on the same page.
Which of the following statements is false about Activity-based management?
A. While useful, activity-based management and Activity-Based Costing information is not always cost efficient to obtain
B. The information needed for activity-based management is a direct byproduct of Activity-Based Costing
C. Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information
D. Activity-based management is designed to help management know which activities add the most value to goods and services
Answer:
C. Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information
Explanation:
Activity based management is the process by which a business identifies activities that contributes more to profitability of the business. These activities are retained.
While activities whose cost does not justify the profit they generate are discarded.
Activity based costing is used to allocate cost of a product based on level of activity of a particular process.
Activity based management uses information from activity based costing to identify processes that contribute more to profitability.
So the statement - Activity-based management is an activity that is similar to Activity-Based Costing but requires a very different set of information. - Is false
Activity-based management (ABM) is a way of identifying and assessing activities that a firm conducts, as well as doing a value chain analysis or a re-engineering exercise to enhance strategic and operational decisions in an organization, utilizing activity-based costing.
So, option C is correct as this is the only false statement about activity based management.
The other options are incorrect as:
Option A is incorrect as yes activity-based management and activity-based costing are not always cost-efficient.
Option B is incorrect as yes activity-based management and activity-based costing have many similarities but they need different information.
Option D is incorrect as yes activity-based management analysis every good and services provided by company and help organization know which of them add more value to organization.
Thus every statement is correct only statement C is untrue.
For more information about activity-based management refer to the link:
https://brainly.com/question/17192507
To: HR Department
From: Jill Best, Manager
Re: Lost Performance Appraisal Form
Six weeks ago when our offices were being remodeled, one of the janitors accidentally threw away a small stack of papers. Included in the stack was a performance appraisal form which I had just completed on one of my subordinates, Karen Whitmore. I know you need this form, but it is gone, What should I do?
Answer with its Explanation:
The performance Appraisal form are very important when we are interested in appraising the performance of employees. It not only helps to keep the employees motivated but also helps to highlights the underperforming employees. The corrective action plan to motivate the underperforming employees can then be formulated. It also helps in deciding which employee will be valuable asset for the company and thus must be promoted.
The corrective action would be that the manager must try to reassess the performance of the employees and submit his findings in the form of Performance Appraisal Form. The manager must also have backup of his findings and that he can mail the performance appraisal form by an email.
g If the Fed is concerned about a possible recession, it ________ the federal funds rate and, in response, longterm interest rates ________ by a ________ amount than the change in shortterm rates. A. lowers; increase; smaller B. lowers; decrease; smaller C. raises; decrease; larger D. raises; increase; smaller E. raises; increase; larger
Answer:
The Fed
Concern about possible recession:
E. raises; increase; larger
Explanation:
The federal funds rate is a short-term monetary policy tool that the Federal Reserve deploys to control expansionary or recessionary economic conditions. It is the interest rate that Federal Reserve allows banks with excess to charge other banks that need to borrow to shore up their deficits. This interest rate is a short-term rate when compared to the long-term interest rates that banks charge consumers of its products and services. The long-term interest rates are affected by the inflation rates.
Tobitzu TV produces wall mounts for flat panel television sets. The forecasted income statement for 2015 is as follows:
TOBITZU TV Budgeted Income Statement For the Year 2015
Sales ($49 per unit) $4,900,000
Cost of good sold ($32 per unit) (3,200,000)
Gross profit 1,700,000
Selling expenses ($4 per unit) (400,000)
Net income $1,300,000
Additional Information:
a. Of the production costs and selling expenses, $600,000 and $100,000, respectively, are fixed.
b. Tobitzu TV received a special order from a hospital supply company offering to buy 12,000 wall mounts for $30. If it accepts the order, there will be no additional selling expenses, and there is currently sufficient excess capacity to fill the order. The company's sales manager argues for rejecting the order because "we are not in the business of paying $32 to make a product to sell for $30."
Required:
Calculate the net benefit (cost) of accepting the special order.
Answer:
$48,000 net benefit
Explanation:
For computing the net benefit or net cost for accepting the special order first we need to find out the variable cost of goods sold per unit which is shown below:
The variable cost of goods sold is
= total cost of goods sold - fixed production costs
= $3,200,000 - $600,000
= $2,600,000.
Now
Total units produced is
= Total revenue ÷ selling price per unit
= $4900000 ÷ 49
= 1,00,000 units.
So, variable cost of goods sold per unit is
= $2,600,000 ÷ 1,00,000
= $26 per unit.
Therefore the net benefit or cost arises is
= (Revenue generated from the special order) - (variable cost of goods sold)
= (12,000 × $30) - (12,000 × $26)
= $48,000 net benefit
Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 23 years to maturity that is quoted at 103 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. a. What is the company’s pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the tax rate is 21 percent, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
Viserion, Inc.
Cost of debt:
Premium on Debt = 3% (103 - 100%)
Amortization of the premium = 3%/23 = 0.13%
Interest cost = 6%
Cost of debt (pretax) = 6% - 0.13% = 5.87%
Explanation:
The cost of debt is the difference between the interest expense in percentage that Viserion, Inc. pays annually and the premium on the debt that must be amortized over the life of the debt. Since Viserion, Inc. pays 6% annually or 3% semiannually on the debt and amortizes 0.13% of the debt premium, the amortization rate is taken away from the annual interest to get the cost of debts in percentage terms.
Cullumber Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $247,000, and fixed costs $96,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 12% with no change in total variable costs or units sold.
2. Reduce variable costs to 57% of sales.
Compute the net income to be earned under each alternative.
1. Net Income $enter a dollar amount
2. Net Income $enter a dollar amount
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales $382,500 (units 5,100)
Variable costs $247,000
Fixed costs $96,000
We need to determine the effect on the income of two options:
Option 1:
Increase the selling price by 12%
Sales= 382,500*1.12= 428,400
Variable cost= (247,000)
Contribution margin= 181,400
Fixed costs= (96,000)
Net income= $85,400
Option 2:
Reduce variable costs to 57% of sales
Contribution margin= (382,500*0.43)= 164,475
Fixed costs= (96,000)
Net income= $68,475
An investor purchases one municipal bond and one corporate bond that pay rates of return of 7% and 8.4%, respectively. If the investor is in the 15% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.
Answer:
After-Tax return on Municipal Bond = 7%After-Tax Return on Corporate Bond = 6.72%Explanation:
The main advantage that Municipal Bonds usually carry with them is that they are tax-exempt. As no taxes are paid on them, there is no need to calculate an after-tax return because it is the same as a pre-tax return.
After-Tax return on Municipal Bond = 7%
The Corporate Bond is subject to tax based on the holder's tax bracket.
After-Tax Return on Corporate Bond = 8.4 % * ( 1 - 20%)
After-Tax Return on Corporate Bond = 6.72%
Considering taxes, the Municipal Bond is better.
Currently Baldwin is paying a dividend of $19.69 (per share). If this dividend were raised by $3.64, given its current stock price what would be the Dividend Yield?
Answer:
$23.33
Explanation:
Calculation for the Dividend yield for Baldwin
Using this formula
Dividend yield = Dividend per share + Increase in Dividend
Let plug in the formula
Dividend yield = $19.69+$3.64
Dividend yield =$23.22
Therefore the Dividend yield will be $23.22
If you put up $39,000 today in exchange for a 6.5 percent, 16-year annuity, what will the annual cash flow be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$3,992.73
Explanation:
For computing the annual cash flow we need to apply the PMT formula i.e to be shown in the attachment below:
Given that,
Present value = $39,000
Future value or Face value = $0
RATE = 6.5%
NPER = 16 years
The formula is shown below:
= PMT(RATE;NPER;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the annual cash flow is $3,992.73
Use the Constant Dividend Growth Model to determine the expected annual growth rate of the dividend for ELO stock. The firm is expected to pay an annual divided of $4.32 per share in one year. ELO shares are currently trading for $92.51 on the NYSE, and the expected annual rate of return for ELO shares is 9.82%. Answer as a % to 2 decimal places (e.g., 12.34% as 12.34).
Answer: 5.15%
Explanation:
The Constant Dividend Growth Model is used to calculate the price of a stock given the next dividend that will be paid on it, its required return and its constant growth rate by the formula;
Price = [tex]\frac{Next Dividend}{Rate of Return - Growth rate}[/tex]
$92.51 = [tex]\frac{4.32}{0.0982 - growth rate}[/tex]
9.084482 - 92.51g = 4.32
9.084482 - 4.32 = 92.51g
92.51g = 4.764482
g = 0.0515
g = 5.15%
The following data relate to factory overhead cost for the production of 10,000 computers:
Actual: Variable factory overhead $262,000
Fixed factory overhead 90,000
Standard: 14,000 hrs. at $25 350,000
If productive capacity of 100% was 15,000 hours and the total factory overhead cost budgeted at the level of 14,000 standard hours was $356,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.00 per hour.
Answer:
1.-4,000 Favorable
2.6,000 Unfavorable
3.$2,000 Unfavorable
Explanation:
1.Preparation to determine variable factory overhead Controllable variance
Using this formula
Variable factory overhead Controllable variance=Standard hours * rate- Fixed factory overhead rate
Let plug in the formula
Variable factory overhead Controllable variance=14,000 * 25.00- 6.00= 266,000
Variable factory overhead Controllable variance = 262,000- 266,000
Variable factory overhead Controllable variance= -4,000 Favorable
2. Preparation to determine fixed factory overhead volume variance .
First step is to deduct Productive capacity hours from total factory overhead cost standard hours
15,000 hours -14,000 hours =1,000 hrs
Second step is to find the fixed factory overhead volume variance
Using this formula
Fixed factory overhead volume variance=Un-used Numbers of hrs*Fixed factory overhead rate
Let plug in the formula
Fixed factory overhead volume variance=1,000 hrs*$6.00
Fixed factory overhead volume variance= 6,000 Unfavorable
3. Preparation to Determine total factory overhead cost variance
Variable Factory Overhead Controllable Variance $4,000 Favorable
Fixed Factory Overhead Volume Variance $6,000 Unfavorable
Factory Overhead Cost Variance$2,000 Unfavorable
Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follows:________.
Pendleton Company
Income Statement
For Year Ending December 31, 2014
Gross sales $2,000,000
Less: Estimated uncollectible accounts (40,000)
Net sales 1,960,000
Cost of goods sold (1,100,000)
Gross profit 860,000
Operating expenses (including $25,000
depreciation) (500,000)
Net income $360,000
The following are management's goals and forecasts for 2015:________.
1. Selling prices will increase by 6 percent, and sales volume will increase by 4 percent.
2. The cost of merchandise will increase by 3 percent.
3. All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 percent. The company uses straight-line depreciation.
4. The estimated uncollectibles are 2 percent of budgeted sales.
Answer and Explanation:
The Preparation of budgeted functional income statement for 2015 is shown below:-
Pendleton Company
Budgeted functional income statement
For the year ended 2015
Particulars Amount
Sales revenue $2,204,800
($2,000,000 × 106% × 104%)
Less:
Estimated uncollectible accounts at 2% $44,096
Net sales revenue $2,160,704
Less: Cost of goods sold $1,178,320
($1,100,000 × 103% × 104%)
Gross Profit $982,384
Less: Operating expense $575,000
($500,000 + 10%) + $25,000
Net income $407,384
We simply deduct all expenses from the sales revenue so that the net income could come
If the USA could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if:
This question is incomplete because the options are missing; here are the options:
A. The USA specializes in potatoes because of its comparative advantage in producing potatoes.
B. The USA specializes in wheat because of its absolute advantage in producing wheat.
C. The USA specializes in wheat because of its comparative advantage in producing wheat.
D. There can be no mutual gains from trade.
The correct answer to this question is A. The USA specializes in potatoes because of its comparative advantage in producing potatoes.
Explanation:
In economics, a country has a comparative advantage, if it can produce a specific good at a lower opportunity cost, which implies the loss of choosing the product over others is low. Also, mutual gains are possible if each country specializes in the product with a comparative advantage. Moreover, to know which country has an opportunity advantage you need to calculate the opportunity cost of 1 unit, or, in this case, 1 ton of the product.
In the case of the U.S. you already know 1 ton of potatoes is equivalent to 0.5 tons of wheat, which is the opportunity cost. Now, let's calculate this factor for the production of 1 ton of potatoes in Ireland
3 tons of potatoes = 2 tons of wheat 1. Use 3 (tons of potatoes) and divide both numbers into three
3 tons of potatoes/ 3 = 2 tons of wheat / 3
1 ton of potatoes = 0.66
This shows the opportunity cost in the USA is lower and this represents a comparative advantage as less is lost when potatoes are chosen over wheat. Thus, to benefit both countries the USA should specialize in potatoes due to the higher comparative advantage or lower opportunity cost.
work cell at Chris Ellis Commercial Laundry has a workstation with two machines, and each unit produced at the station needs to be processed by both of the machines. (The same unit cannot be worked on by both machines simultaneously.) Each machine has a production capacity of 5 units per hour. The throughput time of the work cell=nothing minutes per unit (enter your response as a whole number).
What is the process time of the work cell in minutes per unit?
Answer:
24 minutes
Explanation:
The computation of the process time of the work cell is shown below:
Throughput time is the time that is needed to produced a finished good product. It involves the manufacturing process time and the time for converting the raw material into a finished product
Therefore
Throughput time = [1 unit × (60 min ÷ 5 units)] × 2
= 24 minutes
"An economy is based on three sectorsdashagriculture, manufacturing, and services. For each unit of output, agriculture requires inputs of 0.20 unit from agriculture, 0.40 unit from manufacturing, and 0.20 unit from services. For each unit of output, manufacturing requires inputs of 0.30 unit from agriculture, 0.20 unit from manufacturing, and 0.20 unit from services. For each unit of output, services requires 0.20 unit from agriculture, 0.30 unit from manufacturing, and 0.30 unit from services. Determine the production levels needed to satisfy a final demand of 0 units for agriculture, 40 units for manufacturing, and 0 units for services. The production level needed from the agricultural sector is 40.00 units."
Answer:
Required Production to fullfil a Demand for 40 industry units
Agriculture 54.4
Industry 83.2
Services 51.2
Explanation:
Input Agricuilture Industrial Service
Agriculture 0.2 0.3 0.2
Industrial 0.4 0.2 0.3
Service 0.2 0.2 0.3
We require X input to generate a demand of 0 agriculture 40 industry and 0 services
The previous matrix will be the input we solve for the output
Output Agricuilture Industrial Service
Agriculture 0.8 -0.7 -0.8
Industrial -0.6 0.8 -0.7
Service -0.8 -0.8 0.7
We now reverse the matrix using excel:
Output Agricuilture Industrial Service
Agriculture 2 1.36 0.96
Industrial 1 2.08 0.88
Service 1 1.28 2.08
Now we multiply this by our desired outcome of
0
40
0
Agriculture 54.4
Industry 83.2
Services 51.2
A(n) _____ gives managers access to large amounts of data and the processing power to convert the data into high-quality information quickly and efficiently.
Answer:
decision support system.
Explanation:
A decision support system can be defined as a technological program used by organizations to assist in decision making.
This system works by analyzing essential data for decision making, such as sales reports, revenues, operations and projections, and after the analysis, it gathers the most important information, which will help a manager to find relevant standards and make an important decision of more quickly and effectively.
This system guarantees the analysis of a high volume of information and synthesizes it in a flexible and easy way, allowing the analysis of data from graphs, for example, which facilitates decision making. Because it is an intelligent computer system, it can be developed to deliver better performance and assist in organizational decision making.
Ultimate Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.20. During the month of August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. This resulted in the production of 6,900 water ski radios for August. What is Zanny's labor rate variance for August?
a. $2,808 Unfavorable
b. $1,188 Unfavorable
c. $972 Favorable
d. $2,160 Favorable
Answer:
Direct labor rate variance= $594 unfavorable
Explanation:
Giving the following information:
The standard direct labor cost per hour is $7.20.
During August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708.
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 48,078/6,600= $7.29
Direct labor rate variance= (7.20 - 7.29)*6,600
Direct labor rate variance= $594 unfavorable