Portfolio management best describes C. the buying, selling, and holding of various securities in order to meet a set of predetermined investment needs and objectives.
Portfolio management is an essential aspect of personal and institutional investing, as it helps investors allocate their resources efficiently to achieve desired financial goals while managing risk. A well-managed portfolio typically includes a diverse mix of assets, such as stocks, bonds, and other financial instruments. This diversification helps to minimize risk and maximize returns, as different asset classes tend to perform differently under various market conditions.
Portfolio management involves continuous monitoring of the investments and making adjustments when necessary, based on the investor's risk tolerance, investment horizon, and financial goals. Professional portfolio managers and financial advisors often use various tools and techniques to analyze and optimize portfolios, such as Modern Portfolio Theory, which focuses on maximizing returns for a given level of risk. They may also employ strategic and tactical asset allocation, which involves adjusting the proportions of different asset classes in response to changing market conditions and investment objectives.
In summary, portfolio management is the process of selecting, monitoring, and adjusting investments in order to achieve specific financial goals while managing risk. It involves the careful analysis of various securities and the development of an investment strategy that balances potential returns with an acceptable level of risk. Therefore, the correct option is C.
The question was incomplete, Find the full content below:
which of the following best describes portfolio management? group of answer choices
A. the management of a marketplace in which stocks, bonds, and other financial instruments are traded a procedure used to settle disputes between a brokerage firm and its clients, which makes a final and usually binding decision on the matter
B. the process of creation of a document that is made available to prospective security buyers that describes the firm and a new security issue
C. the buying, selling, and holding of various securities in order to meet a set of predetermined investment needs and objectives
D. the management of an agency of the federal government that regulates the disclosure of information about securities and generally oversees the operation of the securities exchanges and markets
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a. what is the total cost for the survivors receiving treatment a? b. what is the total cost for survivors receiving treatment b? c. what is the expected cost for those patients receiving treatment a? d. treatment b? e. calculate the incremental cost and incremental benefit of the treatment alternatives. f. what is the icer? g. how does cost-benefit analysis differ from cost-effectiveness analysis?
(a) The total cost for survivors and non-survivors receiving Treatment A is $34,000 and $10,000 respectively. The expected total cost is $33,520.
(a) The total cost for survivors and non-survivors receiving Treatment B is $8,500 and $3,000 respectively. The expected total cost is $8,225.
(c) The expected benefit for Treatment A and Treatment B is 19.6 years and 9.5 years respectively.
(d) The ICER is $2,506.93 per year.
(e) Cost-benefit analysis measures the costs and the outcomes of interventions in monetary terms while cost-effectiveness analysis measures the costs in monetary terms but the outcomes in non-monetary units.
(a) The total cost for survivors and non-survivors receiving Treatment A is as follows:Total cost for survivors:
$10,000 (initial) + $5,000 (year 1) + $1,000 x 19 (subsequent years) = $10,000 + $5,000 + $19,000 = $34,000
Total cost for non-survivors:
$10,000 (initial)
Expected total cost:
(98% x $34,000) + (2% x $10,000) = $33,320 + $200 = $33,520Total cost for survivors:
$3,000 (initial) + $1,000 (year 1) + $500 x 9 (subsequent years) = $3,000 + $1,000 + $4,500 = $8,500
Total cost for non-survivors:
$3,000 (initial)
Expected total cost:
(95% x $8,500) + (5% x $3,000) = $8,075 + $150 = $8,225
(c) The expected benefit for Treatment A and Treatment B is as follows:Expected benefit for Treatment A: (98% x 20 years) = 19.6 years
Expected benefit for Treatment B: (95% x 10 years) = 9.5 years
(d) The ICER is calculated as follows:ICER = (Expected cost of Treatment A - Expected cost of Treatment B) / (Expected benefit of Treatment A - Expected benefit of Treatment B)
= ($33,520 - $8,225) / (19.6 years - 9.5 years)
= $25,295 / 10.1 years
= $2,506.93 per year
(e) Difference between cost-benefit analysis (CBA) and cost-effectiveness analysis (CEA) is as follows:Cost-benefit analysis (CBA) differs from cost-effectiveness analysis (CEA) in that CBA measures both the costs and the outcomes of interventions in monetary terms, whereas CEA measures the costs in monetary terms but measures the outcomes in non-monetary units, such as years of life gained or disability-adjusted life years.
Note: The question is incomplete. The complete question probably is: The following information has been gathered on the costs and effectiveness of two treatments.
Treatment A Treatment B
Mortality rate 2% 5%
Life expectancy for survivors 20 years 10 years
Initial treatment cost $10,000 $3,000
Follow-up costs, year 1 $5,000 $1,000
Annual follow-up cost, subsequent years $1,000 $500
(a) What is the total cost for survivors receiving treatment A? For non-survivors? What is the expected total cost of treatment A? (b) What is the total cost for survivors receiving treatment B? For non-survivors? What is the expected total cost of treatment B? (c) What is the expected benefit for treatment A? For treatment B? (d) Calculate the ICER. (e). how does cost-benefit analysis differ from cost-effectiveness analysis?
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qzb company experienced a data breach during the holiday gift-giving season. what role can the marketing manager play to help rebuild customer trust?
The role that the marketing manager can play to help rebuild customer trust after a data breach during the holiday gift-giving season is to be transparent, empathetic, and proactive.
A data breach occurs when sensitive, protected, or confidential data is exposed or stolen by unauthorized access. Credit card numbers, email addresses, and customer passwords are among the information that hackers usually aim to access.
Trust is the foundation of any business relationship. Trust helps to develop a customer's loyalty to a business. Trust is built over time and through honest communication and the delivery of excellent customer service. The following steps can be taken to rebuild customer trust after a data breach:Transparency: Be transparent and inform customers about the breach. Transparency helps in establishing trust.
Empathy: Express empathy to customers who have been affected by the data breach. Customers want to know that you care about them. Proactivity: Be proactive and inform customers about the steps you have taken to prevent similar breaches from happening in the future. This helps in rebuilding trust. Communication: Communicate often with customers and keep them informed about the situation. Let customers know about the progress made to resolve the situation. Customer support: Provide customer support to help customers navigate the situation. Provide contact information and be available to answer questions or concerns.
Thus, the marketing manager plays an essential role in rebuilding customer trust after a data breach during the holiday gift-giving season by being transparent, empathetic, and proactive.
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the marginal benefit to society of reducing pollution declines with increases in pollution abatement because of the law of multiple choice increasing costs. diminishing returns. diminishing marginal utility. conservation of matter and energy.
"The marginal benefit to society of reducing pollution declines with increases in pollution abatement because of the law of: diminishing marginal utility." Option C is correct.
The law of diminishing marginal utility states that as the consumption of a good or service increases, the additional satisfaction or benefit gained from consuming each additional unit gradually decreases. Applied to pollution abatement, this means that as the level of pollution decreases, the additional benefit to society from further reductions in pollution also decreases.
This is because the initial reductions in pollution may result in significant improvements in public health and environmental quality, but as pollution levels decrease, the remaining pollutants become more difficult and expensive to remove. Thus, the cost of further pollution abatement may exceed the marginal benefit gained, leading to diminishing returns.
Therefore, policymakers must consider the costs and benefits of pollution abatement measures when determining the optimal level of pollution control.
Option C holds true.
This question should be provided as:
The marginal benefit to society of reducing pollution declines with increases in pollution abatement because of the law of_______? Multiple choice:
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epiphany is an all-equity firm with an estimated market value of $400,000. the firm sells $225,000 of debt and uses the proceeds to purchase outstanding equity. compute the weight in equity and the weight in debt after the proposed financing and repurchase of equity.
We must first determine the new market value of the company following the financing and buyback of equity in order to determine the weight in equity and the weight in debt following the planned financing and repurchase of stock.
The following formula can be used to determine the firm's market value following the financing:
Market value of the company is equal to the sum of its equity and debt.
The company's new market worth is $400,000 - $225,000, or $175,000
We may assume that the total quantity of equity remains at $400,000 since the company is utilizing the money from the sale of debt to repurchase outstanding shares.
As a result, the weight in equity following the suggested financing and stock repurchase may be estimated as follows:
Weight in equity = Market value of equity / New market value of the firm
Weight in equity = $400,000 / $175,000
Weight in equity = 2.29 or 229%
The weight in debt after the proposed financing and repurchase of equity can be calculated as:
Weight in debt = Market value of debt / New market value of the firm
Weight in debt = $225,000 / $175,000
Weight in debt = 1.29 or 129%
It's worth noting that the weights calculated above do not add up to 100% due to the fact that the market value of equity exceeds the new market value of the firm.
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on march 1, year 3, a taxpayer inherited 1,000 shares of extra corp., common stock, from a relative. the taxpayer's relative had paid $5,000 for the stock in year 1. the fair market value of extra corp. stock on march 1, year 3, the date of death, was $8,000 and increased to $11,000 six months later. the estate's executor elected the alternative valuation for estate tax purposes and distributed the stock six months after the date of death. how much income should the taxpayer report on the year 3 tax return for the inherited extra corp. stock?
The inherited Extra Corp. shares generated a $3,000 capital gain that must be disclosed by the individual as a long-term capital gain on their year three tax return.
The taxpayer received 1,000 shares of Extra Corp. common stock, worth $8,000 as of the relative's demise, as an inheritance. The executor of the estate chose the alternative assessment for estate tax reasons, so the stock's worth for estate tax purposes was also $8,000. The taxpayer would have a financial gain of $3,000 if they sold the shares for $11,000.
The taxpayer's basis in the stock for tax reasons is the stock's $8000 fair market worth on the date of death. It is regarded as though the taxpayer paid $8,000 for the stock because it was dispersed six months after the taxpayer's passing. Consequently, if the shareholder sells the shares for $11,000, there will be a $3,000 financial gain. The taxpayer's income tax classification determines the long-term capital gains tax rate.
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for the 2021 tax year, sally, who is single, reported the following items of income: interest income $600 wages $4,100 earnings from self-employment $3,000 she maintains a household for herself and her 1-year-old son who qualifies as her dependent. what is the earned income credit available to her for 2021, using the tables? a.$2,423 b.$1,369 c.$529 d.$503 e.none of these choices are correct.
The earned income credit available to her for 2021, using the tables will be $1,369. Option B is correct.
To calculate the Earned Income Credit (EIC) for Sally, we need to use the EIC tables given by IRS. However, we also need to make sure that Sally meets all the eligibility requirements for the EIC, including having earned income within certain limits and not having investment income over a certain amount.
Based on the information provided, Sally's earned income for 2021 is $4,100 (wages) + $3,000 (self-employment earnings) = $7,100. This is within the earned income limits for the EIC for a single filer with one qualifying child.
To find the EIC amount, we need to refer to the EIC tables provided by the IRS. Using the tables for single filers with one qualifying child for the 2021 tax year, we can find that the EIC amount for someone with earned income of $7,100 is $1,369.
Hence, B. is the correct option.
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if the marginal propensity is 0.75, then a $100 increase in investment will result in a maximum increase in equilibrium real gross domestic product of
If the marginal propensity is 0.75, then a $100 increase in investment will result in a maximum increase in equilibrium real gross domestic product of 400 million.
The portion of extra money that is spent on consumption is measured by marginal propensity. A rise in investment causes an increase in collective demand, which in turn can raise real GDP. The multiplier's size, which is set by the MPC, will decide how much real GDP will rise.
Calculating the value through multiplier -
Multiplier = 1 / (1 - MPC)
= 1 / (1 - 0.75)
= 1/0.25
= 4
Accordingly, real GDP will grow by four times for every dollar of increased expenditure. As a consequence, an increase in investment of $100 can only lead to a rise in equilibrium real GDP of:
= 100 x 4
= 400
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suppose that this year's money supply is $500 billion, nominal gdp is $10 trillion, and real gdp is $5 trillion. the price level is , and the velocity of money is . suppose that velocity is constant and the economy's output of goods and services rises by 2 percent each year. use this information to answer the questions that follow. if the fed keeps the money supply constant, the price level will , and nominal gdp will . true or false: if the fed wants to keep the price level stable instead, it should increase the money supply by 2% next year. true false if the fed wants an inflation rate of 10 percent instead, it should the money supply by % . (hint: the quantity equation can be rewritten as the following percentage change formula: (percentage change in m) (percentage change in v)
The Fed would need to increase the money supply by 2% to achieve a 10% inflation rate.
To answer the questions, we can use the quantity equation:
M * V = P * Y
Where M is the money supply, V is the velocity of money, P is the price level, and Y is real GDP.
If the Fed keeps the money supply constant, the price level will decrease and nominal GDP will decrease. This is because the economy's output is increasing while the money supply is staying constant, which means that each unit of money will have to represent a larger share of real output. Therefore, prices will have to fall to maintain the equilibrium between money and goods/services.
False. If the Fed wants to keep the price level stable, it should increase the money supply by 2% next year. This is because a 2% increase in the money supply would match the 2% increase in real GDP, which would keep the ratio of money to output constant and thus keep the price level stable.
To achieve an inflation rate of 10%, the Fed should increase the money supply by 10%. We can see this by using the percentage change formula:
(Percentage change in M) + (Percentage change in V) = (Percentage change in P) + (Percentage change in Y)
If we want the inflation rate to be 10%, then the percentage change in P will be 10%. If we assume that velocity is constant and that Y will increase by 2%, then we can solve for the percentage change in M:
10% + 0% = 10% + 2%
10% = 12%
(Percentage change in M) = 2%
Therefore, the Fed would need to increase the money supply by 2% to achieve a 10% inflation rate.
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during what phase of team evolution do team members discuss their opinions on a topic and become assertive in establishing their roles?
During the storming phase of team evolution, team members begin to discuss their opinions on a topic and become assertive in establishing their roles.
The storming phase is the second stage of team development, which follows the forming phase where team members are just getting to know each other.
During the storming phase, team members may disagree with each other, challenge authority, and compete for influence and control within the group.
This can lead to conflict and tension as team members assert their individual opinions and try to establish their roles within the team. It is a critical phase in team development as it allows the team to work through conflicts and establish clear communication and guidelines for how the team will operate.
It is important for team leaders to understand the storming phase and provide guidance and support to help the team move through it successfully. Team members need to learn how to listen to each other, respect different opinions, and work collaboratively to establish shared goals and objectives.
Overall, the storming phase of team evolution is a crucial stage in team development as it enables team members to discuss their opinions, establish their roles, and work together collaboratively towards shared goals.
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how much should you pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $75.17 one year from now?
You should pay $125.28 for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $75.17 one year from now.
To determine how much you should pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $75.17 one year from now, you can use the Dividend Discount Model (DDM). The DDM calculates the value of a stock based on the present value of future dividends. Determine the expected dividend payment one year from now (D1). Since the stock price is expected to be $75.17 and the growth rate is 10%, we can find the dividend payment by multiplying the stock price by the growth rate: D1 = $75.17 * 10% = $7.517.
Calculate the required rate of return (k) as a decimal. The required rate of return is given as 16%, so convert it to a decimal by dividing it by 100: k = 16% / 100 = 0.16. Calculate the stock price (P0) using the DDM formula: P0 = D1 / (k - g), where D1 is the expected dividend payment one year from now, k is the required rate of return, and g is the constant growth rate. In this case, P0 = $7.517 / (0.16 - 0.10) = $7.517 / 0.06 = $125.2833.
So, you should pay $125.28 for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $75.17 one year from now.
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adam negotiates with his superior to expand his authority due to his extensive sales and marketing knowledge, we would say that he has which type of power?
Adam is using referent power, based on his expertise and knowledge in sales and marketing, to negotiate with his superior for expanded authority.
Expert power can be seen in Adam's bargaining with his supervisor to increase his authority based on his vast sales and marketing knowledge. Expert power is drawn from an individual's valuable and recognised information, skills, and abilities.
In this case, Adam's boss recognises the worth of his knowledge and is ready to give him more power as a result. Adam's expert power is a type of referent power because his knowledge and skill in sales and marketing make him a regarded and powerful character within his organisation.
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mbi computers (mbi) announces that its sales doubled in the last quarter. mbi stock immediately moves from $22 per share to $40, correctly reflecting the company's growth. this type of reaction in the market to the announcement by mbi is best described as
mbi computers (mbi) announces that its sales doubled in the last quarter, mbi stock immediately moves from $22 per share to $40, correctly reflecting the company's growth. The type of reaction in the market to the announcement by MBI is best described as a rational reaction.
A rational reaction is when the price of a stock changes as a result of news that affects its future prospects or profitability. When investors hear positive news about a company, they typically believe the company's shares are more valuable and rush to buy them before the price rises further. If the company's shares are already overpriced, however, the price may fall as investors abandon the stock in search of better bargains.
In this scenario, MBI Computers' announcement that its sales had doubled in the last quarter caused the stock price to increase from $22 to $40, correctly reflecting the company's growth. This is a reasonable response to news of a company's success, and it indicates that investors believe that MBI will continue to perform well in the future.
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ncreases in equity that result from providing products or services to customers are called: revenues. investing activities. financing activities. liabilities. expenses.
Revenue is the total quantum of profit from the trade of goods and services related to the company's core business. This is option A.
The increase in equity from the trade of services and products is called revenue . It's the quantum that the company has generated through its operations in a given period of time. means and arrears would not affect equity.
Revenue is the moneybags generated in the ordinary course of business and is calculated by multiplying the average selling price by the number of units vented. This is the total quantum from which other costs and charges are abated to calculate your net income.
Question:
The increase in equity performing from the provision of products or services to guests is as follows
a)revenue
b) Investment exertion.
c) fiscal means.
d) arrears.
e) charges.
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geraldo often would rather go fishing than work his business. geraldo lacks: a. tolerance of risk. b. commitment. c. leadership. d. creativity.
Answer:
b) commitment
Explanation:
As his behaviors shows that he is not going to work but going to fishing means he has lack of commitment towards his company
Employee commitment is an emotional bond with and participation in a company. Employee commitment is a connection between the employee and the organisation that makes the person desire to keep working for and with the organisation to meet its goals.
Geraldo lacks commitment. Geraldo lacks commitment when he would rather go fishing than work his business.
What is commitment?Commitment is the state of being committed to a cause or activity. It is the pledge or assurance that one will follow through on a promise or duty.What does the statement suggest?Geraldo often prefers fishing over working his business, indicating that he is not dedicated to his business; thus, he lacks commitment. Geraldo lacks the focus and devotion necessary to achieve success in his business since he would rather do something else, implying that he is not committed to the company.
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the epbo for a particular employee on january 1, 2024, was $149,000. the apbo at the beginning of the year was $29,800. the appropriate discount rate for this postretirement plan is 4%. the employee is expected to serve the company for a total of 25 years with 5 of those years already served as of january 1, 2024. what is the apbo on december 31, 2024?
The APBO on December 31, 2024, is $36,952. APBO can be calculated by the annual service cost, interest cost and calculate the APBO on December 31, 2024.
The remaining service years for the employee is 20 years, as they are expected to serve the company for a total of 25 years and have already served 5 years as of January 1, 2024.
Divide the EPBO by the total service years to calculate the annual service cost. In this case, the EPBO is $149,000 and the total service years are 25.
Therefore, the annual service cost is $149,000 / 25 = $5,960.
Multiply the APBO at the beginning of the year by the appropriate discount rate to get the interest cost.
In this case, the APBO at the beginning of the year is $29,800, and the discount rate is 4%.
So, the interest cost is $29,800 * 0.04 = $1,192.
Add the annual service cost and the interest cost to the APBO at the beginning of the year to calculate the APBO on December 31, 2024.
In this case, the APBO at the beginning of the year is $29,800, the annual service cost is $5,960, and the interest cost is $1,192.
Therefore, the APBO on December 31, 2024, is $29,800 + $5,960 + $1,192 = $36,952.
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the creation across the supply chain and its markets of a coordinated flow of demand is the definition of
The creation across the supply chain and its markets of a coordinated flow of demand is the definition of demand planning.
It involves coordinating and managing demand across the supply chain and its markets, helping businesses adapt to market changes and optimize capital, money, and resources while maintaining accurate accounting practices.
What is demand planning?Demand planning is a business process that involves forecasting, planning, and managing demand for a company's products or services. It refers to the process of identifying and predicting consumer demand for a company's goods or services and then aligning production, inventory, and supply chain activities to satisfy that demand.
Demand planning is critical in ensuring that companies can meet customer needs while reducing waste and inefficiencies in the supply chain. It also assists companies in making decisions about the amount of capital to allocate to inventory, manufacturing, and other activities.
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When Porsche filmed an advertisement in which its vehicles ran over the Great Wall of China, Chinese consumers were left more confused than intrigued. To address or avoid such issues, one important cultural classification scheme that firms can use is Hofstede’s cultural dimensions concept. Hofstede proposes that cultures differ on all of the following dimensions except
a. Materialism
b. Individualism
c. Masculinity
d. Time orientation
e. Indulgence
Hofstede proposes that cultures differ on all of the following dimensions except Materialism. The correct option is a. materialism.
Hofstede's cultural dimensions concept is a framework for understanding how cultural differences can affect business practices and consumer behavior. By analyzing a society's values and beliefs across these dimensions, firms can tailor their marketing and branding strategies to better align with local customs and preferences.
In the case of Porsche's advertisement, the company failed to take into account the importance of the Great Wall of China as a cultural symbol and the negative impact that running over it could have on Chinese consumers. By using Hofstede's cultural dimensions concept, firms can avoid such missteps and create more effective cross-cultural communication strategies. The correct option is a. materialism.
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the retailer considers visa and mastercard sales as group of answer choices cash sales. promissory sales. credit sales. contingent sales.
The retailer considers visa and master card sales as credit sales. The answer is OPTION C
Since national credit card sales on Visa and MasterCard are debited directly from the business's account, these transactions are documented as cash sales. Credit purchases are transactions in which the debt will be paid in full at a later time.
In other words, credit sales are transactions where the customer does not pay in full, in cash, at the moment of the transaction. Cash purchases are those made to clients who pay with bank credit cards like MasterCard and VISA. The Credit Card Expense account is debited for the processing fees levied by the credit card provider. The answer is OPTION C
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break-even sales under present and proposed conditions portmann company, operating at full capacity, sold 1,000,000 units at a price of $189 per unit during the current year. its income statement is as follows: sales $189,000,000 cost of goods sold (99,000,000) gross profit $90,000,000 expenses: selling expenses $14,000,000 administrative expenses 18,400,000 total expenses (32,400,000) operating income $57,600,000 the division of costs between variable and fixed is as follows: variable fixed cost of goods sold 70% 30% selling expenses 75% 25% administrative expenses 50% 50% management is considering a plant expansion program for the following year that will permit an increase of $11,340,000 in yearly sales. the expansion will increase fixed costs by $3,000,000 but will not affect the relationship between sales and variable costs. required: 1. determine the total variable costs and the total fixed costs for the current year. total variable costs $fill in the blank 1 86,000,000 total fixed costs $fill in the blank 2 39,800,000 2. determine (a) the unit variable cost and (b) the unit contribution margin for the current year. unit variable cost $fill in the blank 3 unit contribution margin $fill in the blank 4 3. compute the break-even sales (units) for the current year. fill in the blank 5 units 4. compute the break-even sales (units) under the proposed program for the following year. fill in the blank 6 units 5. determine the amount of sales (units) that would be necessary under the proposed program to realize the $57,600,000 of operating income that was earned in the current year. fill in the blank 7 units 6. determine the maximum operating income possible with the expanded plant. $fill in the blank 8 7. if the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? $fill in the blank 9 income 8. based on the data given, would you recommend accepting the proposal? in favor of the proposal because of the reduction in break-even point. in favor of the proposal because of the possibility of increasing income from operations. in favor of the proposal because of the increase in break-even point. reject the proposal because if future sales remain at the current level, the income from operations will increase. reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. choose the correct answer.
Total variable costs for the current year: $70,000,000 (70% of cost of goods sold) + $10,500,000 (75% of selling expenses) + $9,200,000 (50% of administrative expenses) = $89,700,000.
Total fixed costs for the current year: $39,800,000 (given).
(a) Unit variable cost for the current year: $89,700,000 / 1,000,000 units = $89.70.
(b) Unit contribution margin for the current year: Sales price per unit - Unit variable cost = $189 - $89.70 = $99.30.
Break-even sales (units) for the current year: Total Fixed Costs / Unit Contribution Margin = $39,800,000 / $99.30 = 400,000 units.
Break-even sales (units) under the proposed program for the following year: Total Fixed Costs + Increase in Fixed Costs / Unit Contribution Margin = ($39,800,000 + $3,000,000) / $99.30 = 437,300 units.
Sales (units) necessary to realize the $57,600,000 of operating income earned in the current year: Total Fixed Costs + Operating Income / Unit Contribution Margin = ($39,800,000 + $57,600,000) / $99.30 = 974,981 units.
Maximum operating income possible with the expanded plant: Sales (units) x Unit Contribution Margin = 1,000,000 units (current sales level) x $99.30 (unit contribution margin) = $99,300,000.
Operating income or loss for the following year, if the proposal is accepted and sales remain at the current level: Maximum operating income possible with the expanded plant - Total Fixed Costs = $99,300,000 - $39,800,000 = $59,500,000.
Based on the data given, the correct answer would be: in favor of the proposal because of the possibility of increasing income from operations. As the maximum operating income possible with the expanded plant is higher than the current year's operating income, it suggests potential for increased profitability.
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a manufacturer, whose marr is 9%, is considering two alternative plant layouts, a1 and a2. the first cost represent the expenses of rearranging the current layout to the alternative new layout and the annual savings represent the reduction in the production costs of the new layout compared to the current layout. using the internal rate of return as the decision criterion, what course of action do you recommend? year a1 a2 first cost 0 $100,000 $140,000 annual savings 1 to infinity $11,000 $15,000 group of answer choices select alt a1 because its rate of return, 11.00%, is higher than the marr select alt a2 because it generates more savings in each year. select alt a2 because its rate of return, 10.71%, is higher than the marr select alt a2 because it is the more expensive option and the incremental rate of return, 10.00%, is higher than the marr
Based on the IRR analysis, the recommended course of action would be to select alternative A2 because it generates more savings in each year, even though its IRR is slightly lower than the MARR.
For alternative A1, Using a financial calculator or spreadsheet program, the IRR is calculated to be 11.00%. Which is higher than the manufacturer's minimum acceptable rate of return (MARR) of 9%.
For alternative A2, the IRR for alternative A2 is calculated to be 10.71%. Since the IRR for alternative A1 is higher than the MARR, it can be considered a financially feasible option.
However, alternative A2 generates more annual savings, so it may be more attractive to the manufacturer in the long run.
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a couple deposits $22,000 into an account earning 7% annual interest for 20 years. calculate the future value of the investment if the interest is compounded daily. round your answer to the nearest cent.
After 20 years of daily compounding at 7% annual interest, the couple's investment will have grown to approximately $84,864.84.
The future value of a $22,000 investment earning 7% annual interest for 20 years, compounded daily is $77,410.10.
To calculate the future value of the investment, use the formula: FV = [tex]P(1 + r/n)^{(n*t)}[/tex], where FV = future value of the investment, P = principal, or initial investment, r = interest rate as a decimal, n = number of times compounded per year, and t = time in years.
First, convert the interest rate to a decimal by dividing by 100: 7% ÷ 100 = 0.07
Next, calculate the number of times the interest is compounded per year: Daily = 365 times per year.
Now, substitute the values into the formula: FV = [tex]$22,000(1 + 0.07/365)^{(365*20)}[/tex] = [tex]$22,000 (1.00019178082192)^{7300}[/tex] = $77,410.10. Rounding to the nearest cent, the future value of the investment is $77,410.10.
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a firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end users is called a
A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end-users is called a contract manufacturer.
Companies engage contract manufacturers to make particular components or completed goods on their behalf. The contract manufacturer handles the production process and ensures that the finished product fulfills the required quality standards while the employing firm supplies the design and specifications.
Contract manufacturing enables businesses to outsource production while retaining control over the product's design and quality. Companies that lack the resources or know-how to produce certain components or goods internally frequently utilize this strategy. Moreover, it enables businesses to concentrate on their core capabilities while outsourcing manufacturing to a specialist company.
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which of the following statements is true? intelligence is the one ksa that predicts all facets of job performance different ksa's are related to different facets of performance on any given job any good selection system will measure every ksa that is related to performance virtually all selection systems attempt to improve all facets of performance simultaneously
Different ksa's are related to different facets of performance on any given job". The B statement that is true .
KSA stands for knowledge, skills, and abilities. While intelligence may be a factor that predicts job performance, it is not the only KSA that is important for all jobs. Different jobs may require different combinations of KSAs, and each KSA may be related to different facets of job performance. For example, a job that requires complex problem-solving skills may place a higher emphasis on a candidate's knowledge and skills in that area, whereas a job that involves customer service may require strong interpersonal skills.
It is not true that "intelligence is the one ksa that predicts all facets of job performance" or that "any good selection system will measure every ksa that is related to performance". Additionally, not all selection systems attempt to improve all facets of performance simultaneously, as different systems may focus on different areas of performance or different types of KSAs.
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the current strike price for a pound put option is $1.50. the pound is currently trading at $1.48. the premium was $.03. the option is:
The holder of the option has the right to sell one pound for $1.50. If the pound is currently trading at $1.48, the option is "in the money," as the holder can sell the pound for a higher price than the market value.
The current strike price for a pound put option is $1.50. The premium for the option is $.03, which is the price paid for the option. If the holder exercises the option, they can sell the pound for $1.50 and make a profit of $.02 ($1.50 - $1.48), minus the premium paid, resulting in a net profit of $.01 ($0.02 - $0.01).
Overall, the option is a profitable investment if the holder exercises for trading, as they can sell the pound for a higher price than the current market value.
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The current strike price for a pound put option is $1.50. the pound is currently trading at $1.48. the premium was $.03. the option is:
a) In the money
b) Out of the money
c) At the money
d) Profitable Investment
a well-known fortune 500 ceo dresses up in a different outlandish costume each year for his presentation during the annual stockholder meeting. the presentation is broadcasted to all divisions and offices of the firm and employees enthusiastically view the proceedings. this scenario is an example of what visual element of culture? group of answer choices stories
The scenario described is an example of a ritual as a visual element of culture.
The CEO's annual costume presentation during the stockholder meeting has become a repeated and highly anticipated event for the employees, which adds to the symbolic meaning of the event and reinforces the culture of the organization. The visual aspect of the CEO's costume adds to the ritualistic nature of the event and helps to create a shared identity and sense of belonging among employees.
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under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?
Under absorption costing, the fixed manufacturing overhead cost included in Ida Sidha Karya Company's inventory at the end of last year is $6,000.
To calculate the fixed manufacturing overhead cost included in inventory, we need to use the formula: Fixed manufacturing overhead cost per unit x Units in ending inventory.
The fixed manufacturing overhead cost per unit is calculated as follows:
Fixed manufacturing overhead cost ÷ Units producedThus:
= $60,000 ÷ 250 units = $240 per unit.Then, we can calculate the fixed manufacturing overhead cost deferred in inventory by multiplying the fixed manufacturing overhead cost per unit by the units in ending inventory:
= $240 per unit x 25 units in ending inventory= $6,000.Therefore, $6,000 is included in Ida Sidha Karya Company's inventory under absorption costing.
The complete question:
Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company's operations last year follow:
Units in beginning inventory 0Units produced 250Units sold 225Units in ending inventory 25Variable costs per unit: Direct materials$100Direct labor$320Variable manufacturing overhead$40Variable selling and administrative$20Fixed costs: Fixed manufacturing overhead$60,000Fixed selling and administrative$20,000
The absorption costing income statement prepared by the company's accountant for last year appears below:
Sales$191,250Cost of goods sold 157,500Gross margin 33,750Selling and administrative expense 24,500Net operating income$9,250Required:
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when cities and other political entities invest in a new stadium, the team using that stadium will receive most, if not all, of the additional revenue generated within the stadium while paying for only part of its cost. true false
When cities and other political entities invest in a new stadium, the team using that stadium will receive most, if not all, of the additional revenue generated within the stadium while paying for only part of its cost. true
This is because the team typically receives revenue from ticket sales, concessions, merchandise, and other activities that take place within the stadium.
However, the cost of building and maintaining the stadium is often shared by the city or other political entity and the team. This is a controversial issue, as many argue that public funds should not be used to support private enterprises like sports teams.
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a taxpayer exchanged investment real estate with a $375,000 fair market value (fmv), a $125,000 adjusted basis, and a $75,000 mortgage for similar investment property with a $260,000 fmv that was subject to a $40,000 mortgage, which the taxpayer assumed. in addition, the taxpayer received $50,000 cash and a vehicle with a $30,000 fmv, and the other party assumed the $75,000 mortgage. how much gain did the taxpayer recognize on the exchange, and what is the basis in the new real estate?
Since the taxpayer has a loss on the exchange of $195,000 , they do not recognize any gain. The basis in the new real estate is $135,000.
To calculate the gain or loss on the exchange, we need to compare the adjusted basis of the relinquished property ($125,000) with the sum of the cash received ($50,000) and the fair market value of the property received ($260,000) and the fair market value of the vehicle ($30,000), minus any liabilities assumed ($40,000).
$125,000 (adjusted basis of the relinquished property)
$320,000 ($260,000 FMV of new property + $30,000 FMV of vehicle + $50,000 cash - $40,000 mortgage assumed)
= ($195,000) loss on exchange
Since the taxpayer has a loss on the exchange, they do not recognize any gain.
To calculate the basis in the new property, we need to start with the adjusted basis of the relinquished property ($125,000) and add any additional cash paid ($50,000) and subtract any liabilities assumed ($40,000) to get the new basis.
$125,000 (adjusted basis of the relinquished property)
$50,000 (cash received)
$40,000 (mortgage assumed)
= $135,000 basis in new property
Therefore the loss of the exchange and the basis is $195,000 and $135,000 respectively.
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he present value of the terminal value is called the: question 13 options: a) reversion value b) going-concern value c) horizon value d) terminal value
The terminal value refers to the present value of the expected cash flows from a business or investment beyond a specified period of time, often referred to as the "terminal period." The correct answer is: d) terminal value.
It represents the value of the investment or business beyond the projected period, and is typically calculated using various methods such as the discounted cash flow (DCF) analysis or the multiples approach.
The other options listed are not synonymous with the terminal value:
a) Reversion value: This term is typically used in real estate or property valuation and refers to the estimated future value of a property after a specific period of time, assuming it returns to its original condition or state.
b) Going-concern value: This refers to the value of a business as a functioning entity, assuming it will continue its operations indefinitely and generate future cash flows.
c) Horizon value: This term is often used in finance and investment analysis to refer to the value of an investment or business at the end of a specific time horizon, typically used in financial modeling or forecasting.
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comparative figures for apple and follow. apple $ millions current year one year prior two years prior current year one year prior two years prior accounts receivable, net $ 17,874 $ 15,754 $ 16,849 $ 18,336 $ 14,137 $ 11,556 net sales 229,234 215,639 233,715 110,855 90,272 74,989 required: 1. compute the accounts receivable turnover for (a) apple and (b) for each of the two most recent years using the data shown. 2. compute how many days, on average, it takes to collect receivables for the two most recent years for (a) apple and (b) . hint: average collection period equals 365 divided by the accounts receivable turnover. 3. which company more quickly collects its accounts receivable in the current year?
1. The accounts receivable turnover for (a) apple and (b) for each of the two most recent years are 12.81.
2. The number of days, on average, it takes to collect receivables for the two most recent years for (a) apple and (b) is 28.47 days.
3. The company more quickly collects its accounts receivable in the current year as 26.74 days.
To calculate the accounts receivable turnover, we divide net sales by the average accounts receivable balance.
For Apple, the accounts receivable turnover for the current year is 12.81 ($229,234 / (($17,874 + $15,754)/2)). Similarly, for the previous two years, the turnover was 13.87 and 13.62, respectively.
Another useful metric is the average collection period, which tells us how many days it takes for a company to collect its accounts receivable. We can calculate this by dividing 365 days by the accounts receivable turnover.
For Apple, the average collection period for the current year is 28.47 days (365 / 12.81). In the previous two years, the average collection periods were 26.32 and 26.74 days.
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