Answer:
31.42%
Explanation:
The computation of the estimate of the percentage reduction in present overhead costs per month is shown below:-
n = log s ÷ log2
= log 0.90 ÷ log 2
= -0.152
Now we will use the learning curve equation which is here below:
Z30 = 1.15X × 30^(-0.152)
= 0.685765148
So, the cost is reduced by
= 1 - 0.685765148
= 0.314234852
or
= 31.42%
A cement manufacturer has supplied the following data: Tons of cement produced and sold 320,000 Sales revenue $ 1,024,000 Variable manufacturing expense $ 241,000 Fixed manufacturing expense $ 340,000 Variable selling and administrative expense $ 199,320 Fixed selling and administrative expense $ 101,000 Net operating income $ 142,680 The company's contribution margin ratio is closest to:
Answer:
contribution margin ratio= 0.57
Explanation:
Giving the following information:
Sales revenue $ 1,024,000
Total variable cost:
Variable manufacturing expense $ 241,000
Variable selling and administrative expense $ 199,320
Total= $440,320
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (sales - total variable cost) / sales
contribution margin ratio= (1,024,000 - 440,320) / 1,024,000
contribution margin ratio= 0.57
A put on XYZ stock with a strike price of $40 is priced at $2.00 per share, while a call with a strike price of $40 is priced at $3.50. What is the maximum per-share loss to the writer of the uncovered put and the maximum per-share gain to the writer of the uncovered call
Answer:
Loss = $38
Gain = $3.5
Explanation:
The calculation of maximum per-share loss and maximum per-share gain is shown below:-
Maximum loss = Exercise price - Premium received
= $40 - $2
= $38
So, the maximum per share loss is $38
Maximum gain = Premium received
= $3.5
So, the maximum per share gain is $3.5
We simply applied the above formulas to determine each part
If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.
Answer:
c) B; A
Explanation:
For isolation the stock B is chosen as it contains the less standard deviation but for diversified portfolio stock A is chosen as the less risk is added also standard deviation is not relevant i.e unsystematic diversified risk also it involves less beta as compared with other two stocks
Hence, the correct option is C and the rest options are wrong
An organization's tangible and intangible resources can be a source of competitive advantage, and these resources play an important role in determining an organization's capabilities and competencies.
A. True
B. False
Answer:
A. True
Explanation:
Tangible resources includes cash, inventory, machinery, land or buildings. they are assets that can be seen
Intangible resources are resources that cannot be seen
for example, a company has developed a resource that increases the amount of output a company produces at a lower cost. this resource would increase the capabilities of the company.
Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 40%; the next expected dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is F
Answer: 7.48%
Explanation:
Weighted Average Cost of capital is simply the weighted average of the costs of equity and debt.
Cost of Equity
= [tex]\frac{Next dividend}{Stock Price ( 1 - flotation Costs)} + growth rate[/tex]
= [tex]\frac{0.65}{19(1 -0.1)} + 0.06[/tex]
= 9.80%
Cost of debt
= Interest ( 1 - Tax)
= 0.075 (1 - 0.40)
= 4.65%
WACC = 9.80% * 0.55 + 4.65% * 0.45
= 7.48%
Calculate the required rate of return for Avy Inc., assuming that the company has a beta of 1.10, while investors expect treasury bills to be yielding 3.0%, with a market risk premium is 5.0%.
Answer:
8.5%
Explanation:
Avy incorporation has a beta of 1.10
The risk free rate is 3.0%
The market risk premium is 5.0%
Therefore, the required rate of return can be calculated as follows
Required rate of return= Risk-free rate+beta(market Risk premium)
= 3.0% + 1.10(5.0%)
= 3.0%+5.5
= 8.5%
Hence the required rate of return is 8.5%
During June, Vixen Company sells $850,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 3% of the selling price. Customers returned $14,000 of merchandise for warranty replacement during the month. The entry to settle the customer warranties is:
Answer: Debit Warranty Expense $25,500; credit Estimated Warranty Liability $25,500.
Explanation:
From the question, we are informed that during June, Vixen Company sells $850,000 in merchandise that has a one year warranty and that experience shows that warranty expenses average about 3% of the selling price and that customers returned $14,000 of merchandise for warranty replacement during the month.
The entry to settle the customer warranties is to debit Warranty Expense $25,500 and then credit Estimated Warranty Liability $25,500.
The warranty expense is calculated as:
= 3% × $850,000
= 0.03 × $850,000
= $25,500
"What are your goals when responding to the previous scenario"? Check all that apply. You are the owner of a cell phone store. A customer recently sent back a phone that she purchased at your store. She claims the phone won’t turn on. After examining the phone, you notice it has excessive water damage and is beyond repair. Unfortunately, the customer’s warranty expired three months ago.
Answer:
B. Explain clearly and completely.
C. Be fair.
D. Convey empathy and sensitivity.
Explanation:
The warranty for the device has already expired and it can be inferred that the water damage was from the customer because the warranty expired a while back. Since you cannot refund her, the best course of action is to explain to the customer in a clear, concise and complete tone, the problem with the phone. You should not place blame on the customer but rather be fair in your assessment. Your tone should also convey sensitivity and empathy because this is a problem that could happen to anyone and they need to know that.
Managers today need to look past traditional viewpoints in determining the success of their company's strategy. One such approach is known as the balanced scorecard. This approach involves looking past just one measure and involves taking a comprehensive view of the organization. This is a useful tool for new managers to understand and add to their "toolbox" of management expertise.
The balanced scorecard give managers a quick and comprehensive view of organizational performance using four primary indicators: customer satisfaction, internal processes, innovation and improvement activities, and financial measures. This "scorecard" is visually represented on a strategy map.
Bryan was recently tasked with developing a balanced scorecard for his new employer, KanO Mines. Bryan is preparing a presentation for upper management and needs to complete a visual chart of the components of the balanced scorecard approach.
Match one perspective, goal, and measure, with each of the four components that Bryan has identified.
Growth: This would concentrate on an increase in sales.
Innovation and Learning: This perspective is concerned with making sure employees learn and grow so they can continually innovate.
Service: This would be the level of customer service.
Customer: This perspective concentrates on things like customer service.
Financial: This perspective has to do with the conversion of performance into financial performance and the creation of value.
Survey: This would be the results of an online customer satisfaction survey.
Analysis: This would use data from the ERP system to look into success levels of company processes.
Training: This would focus on providing enhanced training opportunities for employees.
Productivity: This would concentrate on changes to the process involved in production.
Internal business: This perspective focuses on the things that a company has to do internally to meet and exceed customer expectations.
Sales: This would be the annual sales figures.
Results: This would look at changes in the skill level of employees.
How do we look to our shareholders?
What do we need to excel at?
Can we continue to improve and create value?
How do our customers see us?
Identify one perspective, goal, and measure, to correspond with the above goals.
Answer:
The Balanced Scorecard
Customer satisfaction:
Perspective: Customer: This perspective concentrates on things like customer service.
Goal: Service: This would be the level of customer service.
Measure: How do our customers see us? Survey: This would be the results of an online customer satisfaction survey.
Internal processes:
Perspective: Internal business: This perspective focuses on the things that a company has to do internally to meet and exceed customer expectations.
Goal: Productivity: This would concentrate on changes to the process involved in production.
Measure: How do we look to our shareholders? Analysis: This would use data from the ERP system to look into success levels of company processes.
Innovation and improvement activities:
Perspective: Innovation and Learning: This perspective is concerned with making sure employees learn and grow so they can continually innovate.
Goal: Training: This would focus on providing enhanced training opportunities for employees.
Measure: What do we need to excel at? Results: This would look at changes in the skill level of employees.
Financial measures:
Perspective: Financial: This perspective has to do with the conversion of performance into financial performance and the creation of value.
Goal: Growth: This would concentrate on an increase in sales.
Measure: Can we continue to improve and create value? Sales: This would be the annual sales figures.
Explanation:
The balanced scorecard which Bryan is developing for KanO Mines helps KanO Mines to understand how to create value in the organization. With the balanced scorecard as a strategic planning and management tool, organizational goals are communicated to KanO Mines, so that his daily activities are aligned with the organizational strategy. It also helps him to prioritize his projects, products, and services. The balanced scorecard does not only deal with perspectives and goals, it also helps KanO Mines and his manager, Bryan, to measure and monitor his progress towards achieving the set organizational strategic goals.
Elements of a Flexible Budgets
Presented are partial flexible cost budgets for various levels of output.
Required
Solve for items "a" though "n"
Rate per unit Units
1,000 1,500 2,000
Direct materials $10,000
Direct labor 3,000
Variable overhead
$3.00
Fixed overhead
Total $40,000
Answer:
1000 units$25,000
1,500 units 32,500
2,000 units $40,000
Explanation:
Partial flexible cost budgets for various levels of output
Rate per unit Units 1,000 1,500 2,000
DIRECT MATERIALS
Rate per unit
a.$10 ($10,000 / 1,000 units)
Units
1000 units
$10,000
1500 units
b. $15,000 (1,500 units * $10)
2000 units
c. $20,000 (2,000 units * $10)
DIRECT LABOR
Rate per units
d. $2 ($3,000 / 1,500 units)
Units
1000 units
e. $2,000 (1,000 units * $2)
2000 units
3,000
1000 units
f. $4,000 (1,000 units * $2)
VARIABLE OVERHEAD
Rate per units
$3.00
Units
1000 units
g. $3,000 (1,000 units * $3)
1500 units
h. $4,500 (1,500 units * $3)
2000 units
i. $6,000 (2,000 units * $3)
FIXED OVERHEAD
Units
1000 units
j.$10,000
1500 units
k.$10,000
2000 units
l.$10,000 (40,000 - 20,000 - 4,000 - 6,000)
TOTAL
1000 Units
Direct materials $10,000
Direct labor $2,000
Variable overhead $3,000
Fixed cost $10,000
= m. $25,000
1500 Units
Direct materials $15,000
Direct labor $3,000
Variable overhead $4,500
Fixed cost $10,000
=n. $32,500
2000 Units
Direct materials $20,000
Direct labor $4,000
Variable overhead $6,000
Fixed cost $10,000
= $40,000
Therefore :
1000 units$25,000
1,500 units 32,500
2,000 units $40,000
Estimated cash flows appear below for an investment project. The project is required rate of return (IRR) is 11.40%. What is the discounted payback period for the project in years
Answer: 3.83 years
Explanation:
The Discounted Payback period is used to determine how long it would take a project to payback the investment made in it given required return adjusted cashflows.
Year 1.
= 17,000 / ( 1 + 11.4%)
= $15,260
Year 2
= 20,000/ 1.114²
= $16,116
Year 3
= 27,000/1.114³
= $19,530
Year 4
= 30,000/1.114⁴
= $19,480
Investment Balance up to year 3
= -67,000 + 15,260 + 16,116 + 19,530
= -$16,904
The amount left is smaller than the discounted Cashflow for Year 4 so the Investment will be paid back in year 4.
= 16,904/19,480
= 0.83
0.83 of year 4 will be taken to pay off Investment.
In total;
= 3 complete years + 0.83 in 4th year
= 3.83 years.
Consider a fast food café of your choice. Apply 4 V’s of Operation. Describe each V as ‘High’, ‘Low’ or ‘Moderate’ with one liner reason.
Answer:
4 V's of Operation
The 4 V's of operation are Volume, Variety, Variation, and Visibility. Let us take Mrs. Happy Food Cafe with over 100 outlets in Fiacton Town, as an example to illustrate the 4 V's of operation.
Volume: As a food cafe, the volume of production that will be required for some foods and drinks is so high that their provision requires repetitive tasks. Based on this, procedures are normally standardized in order to achieve low cost for foods and drinks. However, it is harder to standardize services, since personal touches are added by the servers based on their individual perceptions and abilities.
Variety: Mrs. Happy Food Cafe tries to bring some variety in her offerings to satisfy the various needs of her customers. While variety is naturally low in the Food Cafe sector, some cafes like Mrs. Happy Good Cafe, try to satisfy customers' demands by varying the foods with Continental, African, Latino cuisines and dishes.
Variation: At Mrs Happy Food cafes, the food and drinks do not vary much as customers expect to be served the same quality of services at any of their cafes. This is because the processes are standardized to achieve low cost. So, the variation is moderate.
Visibility: Customers of Mrs Happy Food cafes are not able to see and track their experiences of the the processes for the food preparation that they order. But, they can track the processes for the services because services are consumed as they are offered. So, visibility is 'Moderate," as it is divided between the hard goods and the soft goods. With respect to goods visibility is 'Low.' However, with respect to the services the customers' visibility of processes is high.
Explanation:
The 4 V's of operation describe the different characteristics of the processes that various entities use to transform their inputs into outputs of goods and services. They may be high, low, or moderate. They include, volume, variety, variation, and visibility.
Movements in individual stock prices tend to be Group of answer choices positively correlated positively correlated with inflation negatively correlated positively correlated with changes in interest rates
Answer:
Option A (positively correlated) is the correct choice.
Explanation:
A stock for whom the valuation hasn't adjusted from over timeframe would have a slight Weighted Analysis and perhaps a product where price has plummeted and over timeframe would have a measured Analysis loss.The share price would typically vary considerably as shareholders purchase securities during the business day. Because more customers look to purchase something and decrease as companies began consuming more than just the stock, the stock value will change.The other three choices are not related to the given situation. So that Option A would be the correct one.
Your task is to take this _______and construct a graphical representation of the data. In doing so, you determine that as the price of soda rises, the quantity of soda demanded decreases. This confirms the _______ .
Answer:
1. Demand Schedule
2. Law Of Demand
Explanation:
A demand schedule in economics is a tabular representation that describes the quantity demanded of a good or service at different price levels.
In other words, demand schedule depicts the quantity or units of a good or service will be purchased at various price points.
On the other hand, the law of demand states that, given that, all things being equal, as the price of a good increases, quantity demanded decreases; and at the same time, as the price of a good decreases, quantity demanded increases.
Hence, it is can be concluded that, in this case, Your task is to take this DEMAND SCHEDULE and construct a graphical representation of the data. In doing so, you determine that as the price of soda rises, the quantity of soda demanded decreases. This confirms the LAW OF DEMAND.
Answer:
Given the data, a graphical representation of an increase in price of soda resulting in a decrease in quantity demanded of soda, ceteris paribus, is given below in the attachment.
Explanation:
This confirms the law of demand, which states that, all other things being equal, the higher the price of a commodity, the lower the quantity demanded of it.
Other things that are held equal or constant include:
- taste of the consumer
- income level of the consumer
- interest rate in the economy
- level of production or supply of the commodity; etc.
View attachment below, for the graph illustrating THE LAW OF DEMAND.
- DD represents the demand curve
- The vertical axis represents the prices
- The horizontal axis represents the quantities demanded
- The equilibrium point is also seen at D4.
What form of FDI is NOT an option in the service industry, due to the fact that many services have to be produced where they are sold
Answer: C. exporting
Explanation:
As many services have to be produced where they are sold, Exporting is not very ideal in the Service industry even if it might work here and there.
Exporting is a form of FDI that means sending the good in question to another country and this is not ideal when services are needed.
For instance, you need your hair cut in Maine but Maine uses exported Barbers from Mexico City, the logistics of such a business are to understate it, untenable. The barber should be in Maine.
9. The risk-free rate and the expected market rate of return are 5.6% and 12.5%, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on a security with a beta of 1.25 is equal to
Answer:
21.2%
Explanation:
CAPM = risk free rate +( beta x expected market return)
5.6% + (1.25 x 12.5%) = 21.2%
Discuss the requisite skills a person needs to lead change for a chosen organization. How can the organization’s structure accommodate change?
Explanation:
Organizational changes can create insecurity in workers, often caused by a lack of sufficient information and fear of the unknown.
Therefore, in the case of any organizational change, however small, it must be properly communicated to all employees, then communication is the essential ability of a leader to promote a transition of some practice or procedure in a rational, objective and clear way.
It is ideal that the leader knows how to communicate the changes using various channels, such as e-mail, panel, meetings, and explain in detail that the change will generate positive results for the work and for the organization, in order to make the workers safe and prepared.
It is also essential to provide adequate training in the event of changes in work, technological innovations, etc. The essential thing is that people management is geared towards the improvement of the employee along with the changes that are necessary and happen in every organization.
Jan's Bakery is considering a merger with Tina's Cookies. Jan's total operating costs of producing services are $300,000 for a sales volume of $2 million. Tina's total operating costs of producing services are $75,000 for a sales volume of $600,000. If the two firms merge, calculate the total average cost for the merged firm assuming no synergies.
Answer:
Jan's Bakery and Tina Cookies
Total Average Cost for the merged firm
= ($300,000 + $75,000)/2
= $187,500
Explanation:
The total average cost for Jan's Bakery and Tina's Cookies is the average of their total operating costs. This is obtained by adding $300,000 to $75,000 and then dividing by 2.
Though, in practical terms, the presence of some synergies will cut some of the operating costs off, especially such costs as rent, advertising, and some other administrative costs. Some selling costs will also be eliminated when the merger goes through.
Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very popu- lar. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $25, and the fixed cost that must be covered is $2,400 per week. With a selling price of $40 each, how many pool cues must be sold to break even
Answer:
Break-even point in units= 160 units
Explanation:
Giving the following information:
Unitary variable cost= $25
Selling price per unit= $40
Fixed costs= $2,400
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 2,400 / (40 - 25)
Break-even point in units= 160 units
With the segmentation variables identified, the VP of Marketing asks you to think about what the target market would look like for the Sauber washer-dryer combo. The VP continues: "I need you to analyze three key demographic segmentation variables and make recommendations for each. As you make your recommendations, keep the washer-dryer's key attributes in mind. We'll begin with household size."
1. Large households: 5+ members.
2. Small households: 1-2 members.
3. Medium households: 3-4 members.
Answer:
2. Small household: 1-2 members.
Explanation:
The small household will require lesser things. The Sauber washer-dryer combo is suitable for small houses where there are 1 or 2 people living there. It is suitable for newly wed couple or old aged couple or 2 people living together on sharing basis. The best suited is to target such households for marketing of new washer dryer combo.
Some companies resort to questionable means to enforce computer use policies. They use surveillance software to monitor employees' IT use. Every activity on the employee's computer is simultaneously tracked and recorded. Everything that the employee sees on their monitor can also be seen on the monitor of the person tracking them. The same software is used to monitor children's online activities and monitor spouses suspected on infidelity. Should employees be treated as undisciplined children of cheating spouses
Answer:
Its appropriate because the company monitors its employee's use of IT system during office time not their personal devices.
Explanation:
If the company is monitoring closely its own IT systems then it is appropriate as the company is keen in increasing the employee productivity during office time. This is also appropriate if the employee is told about the close monitoring because he will not access his personal things which includes payments of utilities and other item using online banking. So this is appropriate as it is not meant to harm the employee and is part of improving employee performance.
Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $79,000 and at the end of the month was $72,000. The cost of goods manufactured for the month was $361,600. The actual manufacturing overhead cost incurred was $118,400 and the manufacturing overhead cost applied to jobs was $112,000. The adjusted cost of goods sold that would appear on the income statement for July is:
Answer:
$375,000
Explanation:
Unadjusted cost of goods sold = Opening stock of finished goods + Cost of goods sold - Closing stock of finished goods
Unadjusted cost of goods sold = $79,000 + $361,600 - $72,000
Unadjusted cost of goods sold = $368,600
The overhead applied is $112,000 and the actual manufacturing overhead is $118,400. As the actual manufacturing overhead is more than the overhead applied, the overhead is under applied as shown below
Under-applied Overhead = Actual manufacturing overhead - Overhead applied
= $118,400 - $112,000
= $6,400
Now, calculation of the adjusted cost of goods sold is as follow
Adjusted cost of goods sold = Unadjusted cost of goods sold + Under-applied Overhead
= $368,600 + $6,400
= $375,000
Thus, the adjusted cost of goods sold is $375,000
On January 1, 1999, Luciano deposits 90 into an investment account. On April 1, 1999, when the amount in Luciano’s account is equal to X, a withdrawal of W is made. No further deposits or withdrawals are made to Luciano’s account for the remainder of the year. On December 31, 1999, the amount in Luciano’s account is 85. The dollar-weighted return over the 1-year period is 20%. The time-weighted return over the 1-year period is 16%. Calculate X.
Answer:
X = 107.63
Explanation:
From the given information:
The amount of interest earned on this account will be:
= 85 + W - 90
= W - 5
However; the dollar weight return rate is:
[tex]\dfrac{(W-5)}{(90 - \dfrac{3}{4*W})} = 0.2[/tex]
[tex]\dfrac{(W-5)}{(90 - 0.75W})} = 0.2[/tex]
W - 5 = 0.2(90 - 0.75W)
W - 5 = 18 - 0.15 W
W + 0.15 W = 18 + 5
1.15 W = 23
W = 23/1.15
W = 20
The time weighted return rate can be computed as:
[tex]0.16 = \dfrac{X}{90} \times \dfrac{85}{X-20} -1[/tex]
[tex]1+0.16 = \dfrac{X}{90} \times \dfrac{85}{X-20}[/tex]
[tex]1.16 = \dfrac{X}{90} \times \dfrac{85}{X-20}[/tex]
1.16×((90)(X-20)) = 85X
1.16 × (90X - 1800) = 85X
104.4X - 2088 = 85 X
104.4X - 85 X = 2088
19.4X = 2088
X = 2088/19.4
X = 107.628866
X = 107.63
The holder of a promotional permit may:
Provide alcohol to a minor
Serve an intoxicated person
Offer in-store wine and beer samples
Sell alcohol to members in a private club
Answer:
Offer in-store wine and beer samples.
Explanation:
Promotional permit was established to allow a person promote sale of alcoholic beverages on behalf of the manufacturer. Such alcoholic beverage must however be sold on the premises of the licenced holder.
A promotional permit holder, according to the Texas Alcoholic Beverage Commission,which was established in 1935, may involve in the sales of alcoholic beverages in a state or premises of the license holder. It is to be noted that the license holder must qualify enough before being granted the permit and must also pay some fees before carrying on such activities.
As a holder of a promotional permit, you are allowed to offer in-store wine and beer samples.
A person with a promotional permit:
Is allowed to promote the sale of a certain brand of alcohol Must be in a contract with the brand they are promotingIn order to promote the brand of alcohol, the person may use sales strategies such as offering in-store wine and beer samples to people to get them to try out the brand that they are promoting.
In conclusion, a holder of a promotional permit can offer in-store wine and beer samples.
Find out more at https://brainly.com/question/5796198.
You observe a portfolio for five years and determine that its average return is % and the standard deviation of its returns in %. Would a 30% loss next year be outside the 95% confidence interval for this portfolio? The low end of the 95% prediction interval is nothing%. (Enter your response as a percent rounded to one decimal place.) A. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than 30%. B. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than 30%. C. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is greater than 30%. D. No, you cannot be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than 30%.
Answer:
A. Yes, you can be confident that the portfolio will not lose more than 30% of its value next year. This is because the low end of the prediction interval is less than 30%
Explanation:
Confidence Interval is a type of estimated probability that the observed data lies within the parameters. 95% confidence interval means that its is 95% certain that true mean of population is within the range. In the given scenario there is 95% confidence interval that the portfolio will not lose more than 30% of its value next year.
_____ is the method used to determine the number of units a firm must sell at a specific price to cover all costs.
Answer:
Breakeven analysis.
Explanation:
Breakeven analysis is the method used to determine the number of units a firm must sell at a specific price to cover all costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.
Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;
1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.
2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.
Ask Socrates, Inc., employees are allowed to dress informally. This is an example of a __________ through which organizational culture is transmitted.
The question is incomplete:
Ask Socrates, Inc., employees are allowed to dress informally. This is an example of a __________ through which organizational culture is transmitted.
A) primary procedure
B) ritual
C) material symbol
D) symbolic act
E) fundamental mechanism
Answer:
C) material symbol
Explanation:
-Primary procedure is a document that indicates employees how to perform a core activity in the business process.
-Ritual refers to a group of acctivities that are performed in a specific way according to an established order.
-Material symbol is a type of non-verbal communication that goes from the employer to the employees that shows the culture of the company.
-Symbolic act is an act that represents an idea without using words.
-Fundamental mechanism refers to a key process that helps people to perform their jobs.
According to this, the answer is that this is an example of a material symbol through which organizational culture is transmitted because a material symbol is a non-verbal form of communication from the employer to the employees and in this case, the company allows employees to dress informally and the organization's culture is communicated through this.
When individuals acquire, process, and act on relevant economic information promptly in their own self-interest and investigate its impact on others, they are said to have __________ expectations.
Answer: rational
Explanation:
Rational expectations is a way by which individuals make their decisions based on their past experience, self interest, human rationality and the information that they have.
Therefore, when individuals acquire, process, and act on relevant economic information promptly in their own self-interest and investigate its impact on others, they are said to have rational expectations.
To prepare a budgeted balance sheet as of December 31, 2020, data is needed from the ______ December 31, 2019. income statement for the year ended
Answer and Explanation:
For preparing the budgeted balance sheet as of December 31,2020 we need to refer the data of balance sheet as of December 31,2019 so that the firm could get an idea.
Also by referring the income statement, statement of owner equity, profit and loss account we can get an idea so that it becomes easy for the company to prepare the budgeted balance sheet
Answer:
data is needed from the balanceh sheet as of
On January 1, 2016, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles.
Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods. (Do not round intermediate calculations.)
1. Straight line
2. Sum of the years digits
3. Double declining balance
4, Units of production using miles driven as a measure of output and the following actual mileage:
Year Miles
2016 22,000
2017 24,000
2018 15,000
2019 20,000
2020 21,000
Answer:
1. Straight line
years 2016 to 2020 = $6,000
2. Sum of the years digits
2016 = $10,000
2017 = $8,000
2018 = $6,000
2019 = $4,000
2020 = $2,000
3. Double declining balance
2016 = $13,200
2017 = $7,920
2018 = $4,752
2019 = $2,852
2020 = $1,276
4, Units of production using miles driven
2016 = $6,600
2017 = $7,200
2018 = $4,500
2019 = $6,000
2020 = $5,700
Explanation:
purchase cost $33,000
useful life 5 years, salvage value $3,000
expected use 100,000 miles
1. Straight line
($33,000 - $3,000) / 5 = $6,000
2. Sum of the years digits
year 1 = 5/15 x $30,000 = $10,000
year 2 = 4/15 x $30,000 = $8,000
year 3 = 3/15 x $30,000 = $6,000
year 4 = 2/15 x $30,000 = $4,000
year 5 = 1/15 x $30,000 = $2,000
3. Double declining balance
year 1 = 2 x 1/5 x $33,000 = $13,200
year 2 = 2 x 1/5 x $19,800 = $7,920
year 3 = 2 x 1/5 x $11,880 = $4,752
year 4 = 2 x 1/5 x $7,128 = $2,851.20 ≈ $2,852
year 5 = $4,276 - $3,000 = $1,276
4, Units of production using miles driven
depreciation expense per mile = ($33,000 - $3,000) / 100,000 = $0.30
Year Miles
2016 22,000 x $0.30 = $6,600
2017 24,000 x $0.30 = $7,200
2018 15,000 x $0.30 = $4,500
2019 20,000 x $0.30 = $6,000
2020 (21,000 - 2,000) x $0.30 = $5,700