Answer:
Break-even point in units= 12,562 units
Explanation:
Giving the following information:
Selling price= 32*1.0015= 32.048
Unitary variable cost= 24*1.0015= 24.036
Fixed costs= 100,200*1.0016= 100,360.32
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= 100,360.32/(32.048 - 24.036)
Break-even point in units= 12,562 units
Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The discount rate is 12 percent.
a) What is the payback period?
b) What is the NPV for this project?
c) What is the IRR?
Answer:
3.8 years
$2,189,324.56
20.33%
Explanation:
Payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.
Payback period = amount invested / cash flows = $7,125,000 / $1,875,000 = 3.8 years
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Net present value can be calculated using a financial calculator
cash flow in year 0 = $-7,125,000.
cash flow each year from year 1 to 8 = $1,875,000
I = 12%
NPV = $2,189,324.56
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
cash flow in year 0 = $-7,125,000.
cash flow each year from year 1 to 8 = $1,875,000
I = 12%
IRR = 20.33%
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
A sporting goods store purchased $10,150 worth of ski boots in October. The store had $4,350 of ski boots in inventory at the beginning of October and expects to have $3,800 of ski boots in inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October
Answer:
The budgeted cost of goods sold for October is $9,600.
Explanation:
Prepare a Budgeted Costs of Goods Sold for October as follows :
Budget Purchases $10,150
Add Budgeted Closing Stock $3,800
Needed $13,950
Less Budgeted Opening Stock ($4,350)
Budgeted Cost of Goods Sold $9,600
Conclusion :
The budgeted cost of goods sold for October is $9,600.
Dothan Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a −18% return. What is the firm's expected rate of return?
Answer:
Therefore, the firm's expected rate of return is 9%.
Explanation:
The expected rate of return of an investment refers to the profit or loss which an investors is anticipating to receive from the investment at a specified rate of return.
The expected rate of return is estimated by totaling the product of potential outcomes and the chances of the outcomes occurring.
For Dothan Inc.'s stock therefore, the expected rate of return can be estimated as follows:
Expected rate of return = (25% * 30%) + (50% * 12%) - (25% * 18%) = 9%
Therefore, the firm's expected rate of return is 9%.
The selling price of a particular product is $6 per unit, fixed costs total $18,000 , and the breakeven sales in dollars is $24,000 . What would be the variable expense per unit?
Answer:
$1.5= unitary variable cost
Explanation:
Giving the following information:
The selling price of a particular product is $6 per unit, fixed costs total $18,000, and the breakeven sales in dollars is $24,000
To calculate the unitary variable cost, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 24,000/6= 4,000
4,000= 18,000/ (6 - unitary variable cost)
24,000 - 4,000unitary variable cost = 18,000
6,000 = 4,000unitary variable cost
1.5= unitary variable cost
International franchising is
International franchising is a business model that expands the franchising concept into the international marketplace. For example, you can use the rental car concept as a prime example. You can expand the concept of renting a car from a domestic market to an international market.
On March 4, Micro Sales makes $4,850 in sales on bank credit cards that charge a 2.5% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day. Journalize the sales and recognition of expense as a single journal entry.
Answer:
Please see the journal entry below
Explanation:
Dr Cash. $4,728
($4,850 - $121.25)
Dr Credit card expense. $121.25
(2.5% × $4,850)
Cr Sales $4,850
We can infer from the question that sales can be debited to cash since the deposit is at the end of the business day.
Swing Co. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,130.35. However, Swing Co. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on Swing Co.’s bonds?
Answer:
YTM = 7.77%
YTC = 7.62%
Explanation:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {90 + [(1,000 - 1,130.35)/18]} / [(1,000 + 1,130.35)/2]
YTM = 82.758333 / 1,065.175 = 0.07769 = 7.77%
YTC = {coupon + [(call value - market value)/n]} / [(call value + market value)/2]
YTC = {90 + [(1,060 - 1,130.35)/8]} / [(1,000 + 1,130.35)/2]
YTC = 81.20625 / 1,065.175 = 0.07623 = 7.62%
Cost reduction is still the number one priority for many supply chain executives, according to the MHI and Deloitte survey. Select one: True False
Answer:
MHI and Deloitte Survey
Cost Reduction #1 Priority
True
Explanation:
For supply chain companies to achieve their profit targets, they need to curtail costs. Consumers are not ready to absorb much costs as they are presented with low-priced alternatives. The competition for customers among supply chain organizations is very high. Everyone competes for the dollar the consumer is willing to spend on goods. With property and advertising costs skyrocketing, careful management of the cost structure is required.
The negotiated ________ agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures.
Answer:
labor-management
Explanation:
Labor-management agreement is when the leaders and the employees of a company make an agreement that has the goal of protecting the rights of the parties involved and define aspects like salaries and working conditions of the employees. According to this, the answer is that the negotiated labor-management agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures because this agreement between employees and employers establishes the conditions the employees will receive for their services to avoid disputes and protect the rights of the parties.
When a company constructs a building, the cost of the building includes materials and labor but not design fees, building permits, or insurance during construction.
a. True
b. False
Answer:
False.
Explanation:
Construction costs can be defined as the overall costs associated with the development of a built asset, project or property. The construction costs is classified into two (2) main categories and these are;
1. Operational costs: these include the costs on daily basis during the construction process such as rent, wages, sales, utility bills, maintenance and repair fees etc.
2. Capital costs: these include the costs incurred in the acquisition of the property such as commissions, insurance, property acquisition, materials, inflation, fittings, equipment, labor etc.
Hence, when a company constructs a building, the cost of the building includes materials and labor as well as the design fees, building permits, or insurance during construction.
The desired reserve ratio is 3 percent. Robert deposits $3,000 in Bank America. Bank America keeps its minimum desired reserves and lends the excess to Fredrica. How much does Bank America lend to Fredrica?
Answer: $2,910
Explanation:
Bank America is required by law to keep 3% of all deposits as reserves and they can lend the rest which they did to Fredrica.
The amount they lent to Fredrica therefore is;
= 3,000 (1 - 3%)
= 3,000 * 97%
= $2,910
You are preparing a presentation on networking for a professional development seminar that your company is hosting for its employees. You look at the attendance list and see that you have good relationships with all of the registered seminar participants. Additionally, this presentation is a follow-up presentation that was requested by previous participants. You know you will have a friendly audience. What organizational pattern would be best for this situation
Answer:
any pattern.
Explanation:
When preparing a presentation for an organizational seminar, it is ideal to pre-analyze the audience for whom you will be presenting, the common characteristics of the audience will be essential for choosing the best organizational pattern.
In the scenario above, it is possible to perceive that the public is known and friendly, therefore any organizational pattern can be used, the focus in this case should be the use of a pattern that increases the involvement of the participants.
The essential thing is for the presenter to convey confidence by passing on important information, preparing beforehand, maintaining a friendly and cordial posture and being open to interaction with the public.
True or False: All other things being equal, firms exhibiting high degrees of operating leverage exhibit lower levels of business risk. This statement is: True False
Answer: False
Explanation:
Operating Leverage is used to measure how much a change in sales translates to a change in income. In general, a higher operating leverage means that a small change in sales leads to a higher change in income. This is quite risky because it shows that even a small error when forecasting sales can lead to a larger error in the cash flow that will be expected from the sales. This makes forecasting harder and increases business risk.
Your company has assigned one of its vice presidents to function as your project sponsor. Unfortunately, your sponsor refuses to make any critical decisions, always "passing the buck" back to you. What should you do
Explanation:
In this case, the best thing to do is to try to see the challenge of dealing with the lack of critical decision making by the project sponsor, as an opportunity to make the project progress smoothly and reach its best potential.
For this, the ideal is to respect the costs and the deadlines, without exceeding the budgets and the time necessary to carry out the tasks.
The good relationship between the team is also essential for there to be the necessary fluidity for the project to take place organically and as planned. It is also necessary to be attentive to the project's indicators, since monitoring and control are essential to observe the progress of the achievement of goals and the overall performance of the project's progress.
A borrower has applied for a refinance on her property valued at $235,000. She currently has a HELOC with a $47,000 limit and currently owes $25,850. The borrower has applied for a first mortgage of $164,500. Which of the following LTV, CLTV, and HLTV are accurate based on this information?
a. 70% / 80%/ 95%
b. 70% / 83% / 100%
c. 70% / 81% / 90%
d. 75% / 80% / 91%
Answer:
c. 70% / 81% / 90%
Explanation:
Loan to Value ratio LTV is the ratio of borrowers principal loan balance to the appraisal value of the property. Combined Loan to Value Ratio CLTV is the ratio which considers the sum of all the loan taken on the property. High loan to Value ratio is the one which loan is exceeding by the value of borrowers home.
Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is an increase in the maximum contribution, from $5,000 to $8,000 per year.
a. This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to _ and the level of investment spending to _.
b. An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government repeals a previously existing investment tax credit.
The repeal of the previously existing tax credit causes the interest rate to _______ and the level of investment to ________.
c. Initially, the government's budget is balanced, then the government responds to the conclusion of a war by significantly reducing defense spending without changing taxes.
This change in spending causes the government to run a budget __________ which ________ national saving. This causes the interest rate to ________ and the level of investment spending to _______
Answer:
a. Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is an increase in the maximum contribution, from $5,000 to $8,000 per year.
This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to _decrease and the level of investment spending to increase_.
b. An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government repeals a previously existing investment tax credit.
The repeal of the previously existing tax credit causes the interest rate to ___increase____ and the level of investment to ___decrease_____.
c. Initially, the government's budget is balanced, then the government responds to the conclusion of a war by significantly reducing defense spending without changing taxes.
This change in spending causes the government to run a budget ___surplus_______ which ___increases_____ national saving. This causes the interest rate to ___decrease_____ and the level of investment spending to __increase_____
Explanation:
Interest rate decreases with increased savings and this results to increased investment as funds are available at affordable costs. The situation is reversed when the savings are decreased, since the interest rate will increase as there are less savings for investment purposes.
There is a continuous interaction between taxation, savings, government spending, inflation, and investment versus interest rates. This means that interest rates also reflect these factors put together. This why in both fiscal and monetary policies, governments try to strike some balance in order to direct the economy towards desired targets. For example, when the government wants to stimulate the economy, it works to reduce interest rates in order to encourage investments, but this also lowers the propensity to save and encourages the propensity to spend, which trigger inflation and increases interest rate as an aftermath. And this seems to be an endless vicious or virtuous circle, depending on what is achieved by the monetary and fiscal measures in operation.
A municipal revenue bond trust indenture includes an "additional bonds test" covenant. This prohibits the issuer from doing all the following EXCEPT:_________.
A. issuing parity bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
B. issuing senior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
C. issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
D. issuing bonds with the same lien on pledged revenues unless the facility's revenues are sufficient to pay for existing and proposed debt
Answer:
C. issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
Explanation:
A municipal revenue bond trust indenture includes an "additional bonds test" covenant. This prohibits the issuer from doing all the following;
1. issuing parity bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
2. issuing senior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
3. issuing bonds with the same lien on pledged revenues unless the facility's revenues are sufficient to pay for existing and proposed debt
On the other hand, it allows issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
An additional bonds test ultimately implies that the issuer is prohibited or restricted from the issuance of new bonds against the revenues of any other firm having same parity lien against pledged revenues, except it has sufficient funds (revenues) to do so.
Generally, in bond transactions, prohibition are made for selling debt having a senior claim when compared to that of the old (existing) bondholders such as creditors or investors.
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $118,000) is worth $141,600 and Johnathan's land has a fair market value of $112,100, Johnathan also gives Logan cash of $29,500. a. Logan's recognized gain is $ . b. Assume that Johnathan's land is worth $127,440 and he gives Logan $14,160 cash. Logan's recognized gain is $ .
Answer:
A. 23,600
B. 14,160
Explanation:
land adjusted basis = $118,000
land worth = $141,600
fair market value of land = $112,100
Requirement A
Amount realized = Fair value + cash received
Amount realized = 112,100 + 29,500
Amount realized = 141,600
Less: adjusted basis = 118,000
Realized gain = 23,600
Note: Recognized gain is lower of cash received and realized gain
In this case, realized gain is lower so,
Logan's Recognized gain = 23,600
Requirement B
Amount realized = Fair value + cash received
Amount realized = 127,440 + 14,160
Amount realized = 141,600
less adjusted basis = 118,000
Realized gain = 23,600
Note: Recognized gain is lower of cash received and realized gain
In this case, cash received is lower So,
Logan's Recognized gain = 14,160
he Clark Company fails to record these two adjusting journal entries: Depreciation on Equipment: $10 Cash Dividends declared: $40 Working capital will be:
Answer:
Working Capital will be overstated by the amount of $40.
Explanation:
Of the two the adjusting entries, we need to identify the adjusting entry that affects any element of Working Capital (Current Assets or Current Liability).
Depreciation Entries include : Debit Depreciation Expense (Expense) $10 and Credit Accumulated Depreciation $10.
Cash Dividends Declared Entries include : Debit Dividend (Equity) $40 and Credit Shareholders for Dividends (Liability) $40.
Thus, the Liabilities will be understated due to omission of Cash Dividends Declared Entries.
Subsequently, Working Capital will be overstated by the amount of $40.
An investor purchases a put option with a strike price of $100 for $3. This option is considered "in the money" if the underlying is trading:
Answer: a.below $100
Explanation:
When a Put option is considered "in the money", it means that the underlying stock is trading at a value less than the strike price.
This is because with Put options, a person makes a profit if the underlying stock decreases to a value lower than the Strike Price because the Put option gives them to right to sell at the Strike price which means they would be selling at a value higher than the Market.
The above Put is therefore "in the money" if the underlying is selling less than the Strike price of $100.
Messaging systems range from semi-public systems such as standard text messaging on mobile phones, to private systems that are closed to anyone outside of invited members.
A. True
B. False
Answer:
True.
Explanation:
Messaging systems range from semi-public systems such as standard text messaging on mobile phones, to private systems that are closed to anyone outside of invited members.
A messaging system can be defined as an electronic device which enables users to send text messages to one or more users depending on the configuration and it ranges from semi-public systems to private systems.
In a semi-public messaging system, messages can be sent between users with little or no restriction to who can send or receive these messages. An example is sending short standard text on mobile phones.
On the other hand, a private messaging system is a type of system that denies access to individuals outside of the group, only invited members are able to send and receive messages.
Learning by doing suggests that: Multiple Choice greater experience increases production costs. greater experience increases efficiency. diminishing marginal productivity occurs more rapidly.
Answer:
greater experience increases efficiency.
Explanation:
In Business management, Learning by doing suggests that greater experience increases efficiency.
Learning by doing can be defined as the process which involves different individuals making use or an application of their experiences, especially the experiences they acquired by actively engaging in the production, tasks or projects.
Additionally, when significant externalities are actively associated with learning by doing, the level or quantity and quality of production will become sufficiently great and result in an increased returns to scale as more sales and profit would be made by the organization.
It is a good concept and strategy which helps organizations to break even and to meet their goals, aim and objectives.
Tobin inherited 100 acres of land on the death of his father in 2019. A Federal estate tax return was filed and the land was valued at $300,000 (its fair market value at the date of the death). The father had originally acquired the land in 1976 for $19,000 and prior to his death had made permanent improvements of $6,000. What is Tobin's basis in the land? a.$300,000 b.$19,000 c.$25,000 d.$325,000
Answer:
$300,000
Explanation:
Based on the information given we were told that the land was valued at the amount of $300,000 which is the fair market value price as at when Tobis father died this means that the amount of $300,000 will be Tobin's basis in the land eventhough his father bought the land at the amount of $19,000 in the year 1970 but since we were told that the Federal estate tax return was been filed and the land was valued at the amount of $300,000 this means that $300,000 will be Tobis basis in the land.
What is the shortcut for the Find/Replace command screen?
O F5
O Ctrl + ?
O Ctrl + F
O F4
Answer it i Crtl+F
Explanation:
Answer:
is
3. Ctrl + F
Anthem Inc. issues 200,000 shares of stock with a par value of $0.01 for $150 per share. Three years later, it repurchases these shares for $80 per share. Anthem records the repurchase in which of the following ways?
A. Debit Common Stock for $2.000, debit Additional Paid-in Capital for $29.998,000 and credit Cash for $30 million.
B. Debit Treasury Stock for $16 million and credit Cash for $16 million.
C. Debit Common Stock for $2,000, debit Additional Paid-in Capital for $15.998.000 and credit Cash for $16 million.
D. Debit stockholders' Equity for $30 million, credit Additional Paid-in Capital for $16 million and credit Cash for $16 million.
Answer:
B. Debit treasury stock for $16 million and Credit cash for $16 million
Explanation:
The journal entry below shows how Anthem records the repurchase
Treasury stock account Dr. $16 million
(200,000 shares × $80 per share)
To Cash account Cr. $16 million
Treasury stock is debited so as to decrease total shareholder's equity while cash is credited in order to record the expenditure of the company.
Suppose the 2017 financial statements of 3M Company report net sales of $21.7 billion. Accounts receivable (net) are $3.40 billion at the beginning of the year and $3.42 billion at the end of the year.
1. Compute 3M’s receivable turnover.
2. Compute 3M’s average collection period for accounts receivable in days.
Answer:
A.Receivable turnover 6.36
B. Average collection period 57.38
Explanation:
A. Computation of 3M Company’s receivable turnover
Using this formula
Receivable turnover= Net annual credit sale / (beginning accounts receivable+ending accounts receivable)/2
Let plug in the formula
Receivable turnover=21.7/ ((3.40 +3.42)/2)
Receivable turnover= 21.7/(6.82/2)
Receivable turnover=21.7/3.41
Receivable turnover=6.36
B. Computation of 3M Company’s average collection period for accounts receivable in days
Using this formula
Average collection period = Number of days in a year/Receivable Turnover
Let plug in the formula
Average collection period=365 /6.36
Average collection period= 57.38
Therefore Receivable turnover will be 6.36 and the Average collection period will be 57.38.
Your goal as a speaker is to help your audience understand, remember, and act upon your ideas. To improve comprehension and enhance retention, use visual aids.
1.Well-planned visual aids can _________________ and make the presenter appear more professional.
a) increased audience interest
b) decrease interruptions
2.What is an advantage of using multimedia slides?
a) They enhance recall because the audience keeps the reference material.
b) They are always compatible with other equipment and programs.
c) They are inexpensive to update and easy to use and transport.
3.What visual aid conveys a professional appearance by allowing the presenter to choose from many color, art, and font options?
a) Handouts
b) Speaker notes
c) Multimedia slides
Read the scenario, and answer the question.
You are giving a presentation on designing multimedia presentations. You will have access to compatible A/V equipment, and you know that each of your listeners will probably want a copy of the key tips in your presentation.
4.What visual aid option should you choose? Check all that apply.
a) Flip charts
b) Props
c) Transparencies
d) Handouts
e) Multimedia slides
Answer:
1. A
2. A
3. C
4. D and E.
Explanation:
1. Well-planned visual aids can increased audience interest and make the presenter appear more professional.
2. An advantage of using multimedia slides is that they enhance recall because the audience keeps the reference material.
3. Multimedia slides is a visual aid conveys a professional appearance by allowing the presenter to choose from many color, art, and font options.
4. Multimedia slides and handouts is a visual aid option that allows access to compatible A/V equipment, and each of the listeners can have a copy of the key tips in the presentation.
Generally, in order to have good communication and for the sake of impacting knowledge, speakers should help their audience understand, remember, and act upon ideas. Also, to improve comprehension and enhance retention, speakers are advised to use visual aids such as a multimedia slide, handouts etc. A multimedia slide can be designed or created through the use of a computer software such as Microsoft PowerPoint.
Additionally, the handouts should be shared to the audience at the end of the presentation.
Answer:
everything besides B
Explanation:
g If the velocity of money triples, while real GDP and money supply remain unchanged, in the long run, the price level:
Answer:
if velocity triples, then in the long run, price would triple
Explanation:
According to the quantity theory of money
velocity x money supply = output x price
if velocity triples, then in the long run, price would triple
Exhibit 35-4 Refer to Exhibit 35-4. Under a fixed exchange rate system, at the exchange rate of E 3, the dollar is __________ and there is a __________.
Please find diagram for question attached
Question options:
a.
overvalued; surplus of dollars
b.
undervalued; shortage of pesos
c.
overvalued; shortage of dollars
d.
undervalued; surplus of pesos
Answer:
Overvalued and there is a shortage of dollars
Explanation:
An increase in dollar price to buy peso means that dollar here is overvalued as it is above the equilibrium price(E2),and therefore it would be expensive to buy goods that are sold for a certain amount of dollars or in dollar currency with the Mexican pesos. This is because the fixed exchange rate system tries to ensure smooth and inexpensive trade between countries as it has to do with currency trading barriers by pegging a currency to another(in this case dollars) but here the dollar price increase for peso makes it more expensive to buy dollar products with pesos. Also this is caused here by the shortage of dollars.
To answer this question, refer to the crossover chart. For high volume production process, Process A would most likely be the best option. Group of answer choices True False
Answer: False
Explanation:
For a high volume Process, Process C would be the best option because it has the lowest cost at higher volumes.
Process A would be the best option if the company was looking for a low volume production process because at that point, it has the lowest cost. When it comes to high volume production though, Option A is the worst option as it is the most expensive.