The correct option is (d) by multiplying 90 by the expected variable rate per unit and then adding total expected fixed costs. This is the calculation used to determine the total costs expected for a specific operating cost.
When a company uses the high-low method to develop cost behavior equations, the expected total costs for a specific operating cost can be calculated as follows :Step 1: Calculate the expected variable rate per unit using the high-low method.The high-low method entails using the highest and lowest activity levels and corresponding costs to calculate the variable rate per unit. The formula for calculating the variable rate per unit is as follows: Variable rate per unit = (Highest activity level cost - Lowest activity level cost) / (Highest activity level - Lowest activity level)Assuming that the highest activity level was 100 units with a cost of $15,000 and the lowest activity level was 50 units with a cost of $9,000, the variable rate per unit can be calculated as follows: Variable rate per unit = ($15,000 - $9,000) / (100 - 50)Variable rate per unit = $6,000 / 50Variable rate per unit = $120
Step 2: Calculate the expected fixed cost per unit using the high-low method. The high-low method also allows us to calculate the fixed cost per unit, which is the cost that remains constant regardless of the activity level. To calculate the fixed cost per unit, we use the following formula: Fixed cost per unit = Highest activity level cost - (Variable rate per unit x Highest activity level)Assuming that the highest activity level was 100 units with a cost of $15,000 and that the variable rate per unit was calculated as $120, the fixed cost per unit can be calculated as follows: Fixed cost per unit = $15,000 - ($120 x 100)Fixed cost per unit = $15,000 - $12,000 Fixed cost per unit = $3,000Step 3: Calculate the expected total cost for a specific operating cost by multiplying 90 by the expected total cost per unit.The expected total cost for a specific operating cost can be calculated by multiplying the expected total cost per unit by the number of units expected.
The expected total cost per unit is the sum of the expected fixed cost per unit and the expected variable rate per unit.Using the expected fixed cost per unit of $3,000 and the expected variable rate per unit of $120, the expected total cost per unit can be calculated as follows: Expected total cost per unit = Expected fixed cost per unit + Expected variable rate per unit Expected total cost per unit = $3,000 + $120Expected total cost per unit = $3,120Finally, to calculate the expected total cost for a specific operating cost, we multiply 90 by the expected total cost per unit as follows :Expected total cost for a specific operating cost = 90 x Expected total cost per unit. Expected total cost for a specific operating cost = 90 x $3,120Expected total cost for a specific operating cost = $280,800Therefore, the correct option is (d) by multiplying 90 by the expected variable rate per unit and then adding total expected fixed costs. This is the calculation used to determine the total costs expected for a specific operating cost.
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the franchise disclosure document is accepted in (or by) . question 1 options: a) all 50 states and parts of canada b) all 50 states, all of canada, and parts of mexico c) 11 states d) 39 states and all of canada e) all nations participating in the north america free trade agreement
Option A is the correct option. The Franchise Disclosure Document (FDD) is accepted in all 50 states and parts of Canada.
The Franchise Disclosure Document (FDD) is accepted in all 50 states and parts of Canada. Franchisors should disclose their FDD to potential franchisees before a franchise sale agreement can be concluded. The FDD's aim is to provide potential franchisees with material information about the franchisor and the franchise system. Franchisors should provide the FDD to prospective franchisees at least 14 days before they sign the franchise agreement.
The Federal Trade Commission (FTC) regulates the Franchise Disclosure Document. Franchisors must provide a copy of the FDD to potential franchisees before they sign the franchise agreement. The FDD is a long document that outlines the franchise system's business structure, costs, financial performance, and legal history. As a result, it's vital to read the document thoroughly before signing a franchise agreement. The FTC demands that all franchisors use the FDD as part of the sales process, and the document's specific content requirements are defined by law. The FDD is also required by state law. Franchisors are required to register their FDD with each state where they plan to market their franchise opportunity.
Option A is the correct option . The Franchise Disclosure Document (FDD) is accepted in all 50 states and parts of Canada. The FDD is a legal document that discloses the material information that a potential franchisee would need to know before purchasing a franchise.
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2. The Trinidad and Tobago NGL Limited (NGL), is one of the stocks listed in the Energy Sector on the local stock exchange. The company's initial public offering (IPO) was in October 2015 and the company was listed for the first time on October 19, 2015; at an opening price of $20.00. Required: i. If an investor purchased shares in the IPO at $20.00, would this investor have experienced a capital gain or loss if he/she decided to sell the stock on July 1, 2022 (use the closing price)? State the gain or loss in dollars ($) and as a percentage. 3 Marks 11. 111. When did this share trade at its highest price since its IPO? What was this price? If an investor who purchased shares at the IPO, sold his holdings on this day, what would have been his capital gain/loss as a percentage (use closing price)? 3 Marks Based on the stock's price movements since its IPO, what do you garner about investing in the stock market? 4 Marks per share that 3 Marks iv. If an investor held NGL shares since its IPO, what is the total dividends he/she would have received to date? Provide details by payment date.
The Trinidad and Tobago NGL Limited (NGL) is a stock that was listed in the energy sector on the local stock exchange. The company's initial public offering (IPO) was in October 2015, and the company was listed for the first time on October 19, 2015.
At an opening price of $20.00.An investor who purchased shares in the IPO at $20.00 would have experienced a capital gain if he/she decided to sell the stock on July 1, 2022, as the stock closed at a price of $24.50. To calculate the gain in dollars and percentage.
We need to use the following formula:Capital Gain or Loss = (Closing Price - Purchase Price) * Number of SharesIf an investor purchased 100 shares of NGL in the IPO at $20.00, the cost would have been: [tex]$20.00 * 100 shares = $2,000If[/tex] he/she sold the 100 shares on July 1, 2022, at a price of $24.50
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The loanable funds model focuses on interest rates in the short
run.
False. The loanable funds model focuses on the interaction between the supply and demand of loanable funds (such as savings and investments) in the economy.
It is a framework used to analyze long-term interest rates and the allocation of funds between borrowers and lenders in the financial market. The model considers factors such as saving behavior, investment opportunities, and the equilibrium interest rate that balances the demand and supply of loanable funds in the long run. Therefore, the loanable funds model primarily examines interest rates in the long run, rather than the short run.
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You decide to invest in a portfolio consisting of 32 percent Stock A, 46 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio?
State of Economy Probability of State Return if State Occurs
of Economy Stock A Stock B Stock C
Recession .113 − 10.00% − 3.40% − 12.40% Normal .663 9.30% 10.64% 16.80% Boom .224 21.53% 25.07% 29.77% rev: 04_25_2019_QC_CS-167128
Multiple Choice
.01088
.00846
.00806
.00910
.00749
The variance of the portfolio is 0.00846. The correct option is .00846.
We are given that the portfolio consists of 32% Stock A,
46% Stock B, and the remainder in Stock C.
In other words, we have the following weights for the three stocks in our portfolio:
Stock A = 32%
Stock B = 46%
Stock C = 22%
Now we need to find the expected return and variance of the portfolio. We can use the formula for the expected return of a portfolio:
Expected return = w₁R₁ + w₂R₂ + w₃R₃
where w₁, w₂, and w₃ are the weights of the three stocks in the portfolio, and R₁, R₂, and R₃ are the expected returns of the three stocks.
Using the data in the table, we can fill in the values:
Expected return = 0.32(9.3%) + 0.46(10.64%) + 0.22(16.8%)
= 11.48%
To find the variance of the portfolio, we can use the formula:
Variance = w₁²σ₁² + w₂²σ₂² + w₃²σ₃² + 2w₁w₂σ₁σ₂ + 2w₁w₃σ₁σ₃ + 2w₂w₃σ₂σ₃
where σ₁, σ₂, and σ₃ are the standard deviations of the three stocks.
We are given the returns of the three stocks in different states of the economy, but we need to calculate the standard deviations.
To calculate the standard deviation, we can use the formula:
[tex]\sigma = \sqrt{[\sum(R - E(R))^{2P}]}[/tex]
where R is the return of the stock, E(R) is the expected return of the stock, P is the probability of the state of the economy, and the summation is taken over the three states of the economy.
Using the data in the table, we can fill in the values:
[tex]\sigma A = \sqrt{[(0.113)(0.093 - 0.1148)^2 + (0.663)(0.1064 - 0.1148)^2 + (0.224)(0.2153 - 0.1148)^2] }[/tex]
= 0.1421
[tex]\sigma B = \sqrt{[(0.113)(-0.034 - 0.1148)^2 + (0.663)(0.1064 - 0.1148)^2 + (0.224)(0.2507 - 0.1148)^2] }[/tex]
= 0.0814
[tex]\sigma C = \sqrt{[(0.113)(-0.124 - 0.1148)^2 + (0.663)(0.168 - 0.1148)^2 + (0.224)(0.298 - 0.1148)^2] }[/tex]
= 0.1461
Now we can plug in the values into the formula for variance:
Variance =
[tex](0.32)^2(0.1421)^2 + (0.46)^2(0.0814)^2 + (0.22)^2(0.1461)^2 + 2(0.32)(0.46)(0.1421)(0.0814) + 2(0.32)(0.22)(0.1421)(0.1461) + 2(0.46)(0.22)(0.0814)(0.1461)[/tex]
= 0.00846
Thus, the variance of the portfolio is 0.00846.
Hence, the correct option is .00846.
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you invest $100 today. nine years from now, you want the investment to be worth $500. what interest rate (compounded continuously) will you need?
Let the interest rate be r, the principal amount invested be P, and the value of the investment be A. Then the formula for the value of the investment with continuous compounding is given by A=P*e^(r*t), where e is the mathematical constant approximately equal to 2.71828, and t is the time period.
Here, P = $100, A = $500, and t = 9 years. Substituting these values in the formula, we get:
500 = 100*e^(r*9)
Dividing both sides by 100, we get:
5 = e^(r*9)
Taking the natural logarithm of both sides, we get:
ln 5 = r*9
Dividing both sides by 9, we get:
r = ln 5/9 ≈ 0.1129
Therefore, the interest rate (compounded continuously) needed to turn an investment of $100 into $500 in 9 years is approximately 11.29%.
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omycourses/967 quizzes/secured lock SA22 Cm 2 Question 37 B&B Corporation manufactures plumbing hardware in two departments, Fabrication and Assembly. In the Fabrication department, B&B uses a predete
Tthe predetermined overhead rate used during May in the Fabrication department is $12.50 per DLH.
B&B Corporation manufactures plumbing hardware in two departments: Fabrication and Assembly. In the Fabrication department, B&B uses a predetermined overhead rate based on direct labor-hours.
At the beginning of the year, the company estimated that it would work 32,000 direct labor-hours and incur $400,000 in manufacturing overhead costs in the Fabrication department.
The company also estimated that the Assembly department would work 64,000 direct labor hours.
The total budgeted overhead cost for the year was $1,200,000. The company's cost accounting system provides the following data concerning the Fabrication department for the month of May:
Actual manufacturing overhead cost incurred: $33,000
Actual direct labor-hours worked: 2,000
Direct labor wage rate: $16 per hour
Actual direct materials cost used: $12,000
Requirement: Compute the predetermined overhead rate used during May in the Fabrication department.
What is the Predetermined Overhead Rate?
Predetermined Overhead Rate is a technique that is used to allocate overhead to a product.
Overhead costs can be difficult to track for specific products because they are indirect costs. In addition to direct materials and direct labor, manufacturing overhead must be allocated to products.
The formula for calculating the Predetermined Overhead Rate is:
Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estimated Total Units of the Allocation Base.
The Fabrication department uses direct labor-hours as the allocation base.
Therefore, the formula is:
Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estimated Total Direct Labor-Hours.
The total budgeted overhead cost for the year was $1,200,000.
The estimated direct labor hours for the year was 32,000, based on the information provided, the predetermined overhead rate can be calculated as follows:
Predetermined Overhead Rate = $400,000 ÷ 32,000 DLHs
Predetermined Overhead Rate = $12.50 per DLH
The predetermined overhead rate used during May in the Fabrication department can be calculated as follows:
Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estimated Total Direct Labor-HoursPredetermined Overhead Rate = $400,000 ÷ 32,000 DLHs
Predetermined Overhead Rate = $12.50 per DLH
Therefore, the predetermined overhead rate used during May in the Fabrication department is $12.50 per DLH.
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charger company's most recent balance sheet reports total assets of $27,702,000, total liabilities of $15,552,000 and total equity of $12,150,000. the debt to equity ratio for the period is (rounded to two decimals): multiple choice 0.78 1.28 0.44 0.56 1.78
The correct answer is option (b). 1.28.
Debt to equity ratio is a financial ratio which calculates the amount of equity contributed by the shareholders to the total capital raised by the company.
It is used to determine the financial leverage of a company. The formula to calculate the debt to equity ratio is as follows:
Debt to equity ratio = Total debt / Total equity
In this question, we need to calculate the debt to equity ratio for the period using the given information.
Let's substitute the values into the formula.
Total debt = Total liabilities = $15,552,000
Total equity = $12,150,000
Debt to equity ratio = Total debt / Total equity= $15,552,000 / $12,150,000 = 1.28
Therefore, the debt to equity ratio for the period is 1.28.
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Which of the following can be used by an employer as a BFOQ?
Religion or race
Race or gender
Gender or national origin
National origin or race
An employer can potentially use "BFOQ" (Bona Fide Occupational Qualification) as a legitimate defense when considering certain factors related to job requirements. None of the options provided (religion, race, gender, or national origin) can universally be used as BFOQs.
A Bona Fide Occupational Qualification (BFOQ) is a specific job requirement that allows an employer to make employment decisions based on certain factors that would otherwise be considered discriminatory. However, the criteria that can be used as BFOQs vary by jurisdiction and are subject to specific legal standards.
Religion, race, gender, and national origin are generally protected characteristics under anti-discrimination laws. Employers cannot use these factors as blanket BFOQs to justify employment decisions. However, there may be limited circumstances where a particular job genuinely requires specific characteristics related to religion, gender, race, or national origin due to the nature of the job. These circumstances would need to meet the strict legal requirements for establishing a BFOQ on a case-by-case basis.
It's important to note that the determination of a BFOQ is highly context-dependent and subject to legal interpretation. Employers should consult with legal counsel to ensure compliance with applicable laws and regulations regarding employment discrimination.
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if good x has a cross-price elasticity that is positive, and the price of good y increases, what will happen?we move down along a given demand curve.nothing changes.the demand curve will shift to the left.the demand curve will shift to the right.we move up along a given demand curve.of good y increases, what will happen?
If good X has a positive cross-price elasticity, it means that it is a substitute for good Y. When the price of good Y increases, there are two possible outcomes:
1. Movement down along a given demand curve: If the price of good Y increases while the price of good X remains constant, consumers are likely to switch from good Y to the relatively cheaper substitute, good X. This would result in a movement down along the given demand curve for good Y.
2. The demand curve will shift to the right: If the price of good Y increases and there is a significant shift in consumer preferences towards good X as a substitute, the demand for good X will increase. This increased demand for good X can lead to a shift in the demand curve for good X to the right.
It's important to note that the specific outcome depends on the magnitude of the cross-price elasticity and the extent to which consumers perceive the goods as substitutes.
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The following facts apply to the pension plan of Tamarisk Corporation for the year 2020. Plan assets, January 1, 2020 Projected benefit obligation, January 1, 2020 Settlement rate Service cost Contrib
The following facts apply to the pension plan of Tamarisk Corporation for the year 2020. Plan assets, January 1, 2020 Projected benefit obligation, January 1, 2020Settlement rate service cost contribution to the plan benefit paid
During the year, the Tamarisk Corporation makes a contribution to the pension plan. As a result, the plan assets will increase. The difference between the market value of plan assets and the present value of the future benefits is recognized as net pension asset/liability. When the market value of plan assets is greater than the present value of future benefits, a net pension asset is created. When the present value of future benefits is greater than the market value of plan assets, a net pension liability is created.
Below is the formula for Net Pension Liability/Asset: Net Pension Liability/Asset = Present value of the future benefits - Fair value of the plan assets
Since the plan assets will increase due to a contribution, the net pension asset/liability will decrease. The increase in plan assets is recognized through a credit to cash and a debit to the pension plan asset account.
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Question 6 Every Republican president or presidential candidate since 1996 has proposed or implemented supply side tax cuts. O True False 2 pt
False. While it is true that supply-side tax cuts have been a common policy proposal among Republican presidents and presidential candidates.
It is not accurate to say that every Republican president or candidate since 1996 has proposed or implemented supply-side tax cuts.
For example, in the 2008 presidential election, Republican candidate John McCain did not propose supply-side tax cuts as a central part of his economic plan. Additionally, in some cases, Republican presidents or candidates may have proposed tax cuts that were not solely based on the supply-side theory, but rather a combination of different economic principles.
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Which probability distribution should be used to solve the following problem? A machine shop has 100 drill presses and other machines in constant use. The probability that a machine will become inoper
The Poisson distribution is used to model the probability of a given number of events occurring in a fixed interval of time or space when these events happen independently and with a constant rate per unit of time or space.
This distribution can be used to solve the problem of the machine shop having 100 drill presses and other machines in constant use. The probability that a machine will become inoperable can be modeled as a Poisson process since the failures are random and independent.
It is assumed that the probability of a machine breaking down in a given time interval is proportional to the length of the time interval. The Poisson distribution has only one parameter, lambda (λ), which represents the average rate of events per unit of time or space.
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which of the following is true about financial markets?multiple choice question.financial markets provide information that allows economies to grow.financial markets often obscure important information, slowing decision making.too many financial markets slow economic growth.financial markets can be defined as a collection of prices set by the government.
The true statement about financial markets is: Financial markets provide information that allows economies to grow.
Financial markets play a crucial role in providing information to participants, such as investors, businesses, and governments.
information helps them make informed decisions, allocate resources efficiently, and promote economic growth. Financial markets facilitate the flow of funds between savers and borrowers, allowing businesses to raise capital for investments and expansion. They also enable price discovery and risk management through various instruments like stocks, bonds, derivatives, and commodities. Financial markets are not defined as a collection of prices set by the government but are rather decentralized systems where prices are determined by the interactions of buyers and sellers.Financial markets provide a wide range of information that is essential for the functioning of economies and the growth of businesses. Here are some additional points about the role of financial markets in providing information:
1. Price Discovery: Financial markets serve as platforms where buyers and sellers come together to determine the prices of financial assets. Through the interaction of supply and demand, prices are established, reflecting market expectations, investor sentiment, and the perceived value of the underlying assets. This price discovery mechanism helps in assessing the worth of assets and aids in decision making.
2. Market Efficiency: Efficient financial markets quickly incorporate new information into asset prices. As new information becomes available, market participants adjust their trading decisions, leading to more accurate pricing. This efficiency helps in the allocation of resources to their most productive uses and supports economic growth.
3. Financial Statements and Reporting: Companies listed on financial markets are required to disclose financial information regularly. These financial statements provide valuable insights into a company's performance, financial health, and prospects. Investors and analysts analyze this information to make informed investment decisions and assess the overall state of the economy .
4. Economic Indicators: Financial markets serve as a barometer of economic health. Various market indices, such as stock market indices or bond yields, are often used as indicators of economic performance. Movements in these indicators provide insights into investor sentiment, economic trends, and expectations, which can influence decision making by businesses, policymakers, and investors.
5. Research and Analysis: Financial markets attract a wide range of professionals, including analysts, economists, and researchers, who specialize in studying market trends, analyzing data, and providing insights. Their research and analysis help in understanding market dynamics, identifying investment opportunities, and assessing risks.
Overall, financial markets act as information hubs, providing data, prices, and insights that support economic growth, facilitate investment decisions, and enhance resource allocation. This flow of information enables participants to make informed choices, allocate capital efficiently, and contribute to the overall development of economies.
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a producer is found guilty of rebating. under what circumstance would this be held against the insurance carrier? a: if the carrier was aware of the producer and their rebating activities and did not report or try to prevent it. b: such activity is automatically held against the carrier. c: if the carrier knew nothing about the producer rebating taking place. d: if the carrier is a stock insurance company.
The correct answer is a: if the carrier was aware of the producer and their rebating activities and did not report or try to prevent it.
Rebating refers to the practice of offering customers something of value, such as a kickback or special favor, in order to induce them to purchase an insurance policy. It is generally considered illegal and unethical in the insurance industry.
If an insurance producer is found guilty of rebating, the insurance carrier can be held accountable if they were aware of the producer's rebating activities and did not take appropriate action. Insurance carriers have a responsibility to ensure compliance with laws and regulations and to prevent unethical practices by their producers.
Therefore, if the carrier had knowledge of the producer's rebating activities but failed to report or prevent it, it would be held against the insurance carrier. The other options provided (b, c, and d) do not accurately describe the circumstances under which rebating would be held against the insurance carrier.
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Client Debt and Income Information
Home value: $220,000
Mortgage balance:
$180,000
Mortgage Payment: $800
Auto value: $10,000
Auto loan balance: $6,000
Auto loan payment: $400
Checking
Client Debt and Income InformationGiven that: Home value: $220,000Mortgage balance: $180,000
Mortgage Payment: $800Auto value: $10,000Auto loan balance: $6,000 Auto loan payment: $400
CheckingTo determine a client's debt-to-income ratio, you need to take a look at their total monthly income and their monthly debt payments including mortgage and auto loan payments. For example, if a client has a $180,000 mortgage balance with a monthly payment of $800 and an auto loan balance of $6,000 with a monthly payment of $400, the total monthly debt payments would be $1,200 ($800 + $400).If the client's monthly income is $3,500, their debt-to-income ratio would be 34% ($1,200 / $3,500 = 0.34). A debt-to-income ratio below 36% is generally considered a good indicator that the client will be able to manage their monthly debt payments without difficulty and is therefore likely to be approved for loans with favorable terms.
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Suppose Canada and Mexico agree that labour and capital can cross borders without any restrictions. If the two countries agree on a common set of import duties, this would be called a A. trade association. B. WTO. C. free trade area. D. customs union. E. common market.
The concept of free trade zones or agreements has been established as a method of achieving economic gains from trade by lowering trade barriers, reducing transaction costs, and increasing efficiency.
When two countries, such as Canada and Mexico, agree that labour and capital can cross borders without any restrictions, this is known as a free trade area.A free trade area (FTA) is a region where a group of countries agree to eliminate trade barriers between them for goods and services while maintaining autonomous trade policies with non-member countries. Each member of the free trade area is free to establish its own tariffs and quotas against non-members as well as to set its own internal rules for trade.
Furthermore, a common set of import duties would be imposed by Canada and Mexico. A customs union would imply that the countries have a common external tariff on goods imported from non-members, and that the free movement of goods within the union would be facilitated by a common set of trade rules. On the other hand, a common market allows for the free movement of labour and capital across borders in addition to the free trade of goods and services.
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Melake Miners Inc. (MMI) produces products A and B from a single joint manufacturing process. The total cost of input and joint manufacturing process is estimated to be $400,000 for 2021. During the year the company expects to produce 4,000 units of A and 6,000 units of B. The company has an option to sell products A and B at the split-off point for $10 and $15 per unit respectively.
Required: (Show computations and round all cost calculations to two decimal places – e.g. $53.84)
1. Allocate the joint manufacturing cost to A and B using the physical unit method.
2. Allocate the joint manufacturing cost to A and B using the sales value method.
3. A new customer approached MMI and offered to buy product B at a price of $22 per unit provided the company agrees to further process the product. The accountant of MMI advised that the cost of further processing product B would amount to $37,000. As a qualified management accountant, you are required to advise MMI whether to accept the offer and process product B further or reject the offer and sell it at the split-off point. Show computations to support your answer
Joint manufacturing cost allocation to A and B using the physical unit method:Joint manufacturing cost per unit = Total joint manufacturing cost ÷ Total number of units produced= $400,000 ÷ (4,000 units of A + 6,000 units of B)= $400,000 ÷ 10,000 units= $40 per unit
The joint manufacturing process is the method of producing two or more joint products from one input. Because it is not feasible to allocate joint manufacturing expenses to any one joint product, the cost must be allocated. The most frequent methods for allocating joint manufacturing expenses are the physical unit method and the sales value method.The physical unit method of joint product costing is one of the most often used. The joint manufacturing costs are allocated to each joint product by dividing the total costs by the number of physical units produced.
This technique assumes that each product necessitates an equal amount of processing and that each unit has an equal chance of being sold.The sales value method, also known as the relative sales value method, calculates the allocation based on the relative value of each product at the split-off point. The joint manufacturing expenses are allocated based on the sales value of each product at the split-off point, as determined by its expected selling price less any additional processing costs that will be incurred after the split-off point.
The management accountant's task is to decide whether or not to accept the new client's offer to purchase Product B. To make the decision, the management accountant must compute the incremental profit from further processing Product B. If the incremental profit is positive, the offer should be approved because it will raise the firm's overall profitability. If the incremental profit is negative, the firm should decline the offer because it will lower the firm's overall profitability.
Joint product costing is a strategy for allocating joint manufacturing expenses to two or more joint products. The most often used methods are the physical unit method and the sales value method. When there is an offer from a new customer to buy a joint product after the split-off point, the management accountant must determine whether to accept the offer or reject it based on incremental profits. If the incremental profit is positive, the offer should be approved.
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Bair B. Rosen, Inc. (BSR) is a brokerage firm that specializes in investment portfolios designed to meet the specific nisk tolerances of its clents. A client who contacted-BBR this past week has a maximum of $50,000 to invest. BGR's investment advisor decides to recommend a portfolio consist of two investment funds: an Internet fund and a-Blue Chip fund. The Intemet fund has a projected annual return of 12%, and the Blue Chip fund 1 a projected annual return of 9%. The investment advisor requires that at most $35,000 of the client's funds should be invested in the Internet funs B8R services include a risk rating for each investment alternative. The Intemet fund, which is the more risky of the two investment alternatives, hi risk rating of 6 per thousand dollars invested. The Blue Chip fund has a risk rating of 4 per thousand doliars invested, For example, if $10,000 is invested in each of the two investment funds, BBR's risk rating for the portfolio would be 6(10)+4(10)=100. Finally, BBR developed a questionn to measure each client's risk tolerance. Based on the responses, each client is classified as a conservative, moderate, or aggressive investor. Suppd that the questionnaire results classified the current client as a moderate investor. BRA recommends that a client who is a moderate irivestor limit h or her portfolio to a maximum risk roting of 240 . (a) Formulate a linear programming model to find the best investment strategy for this chent. Let f= internet fund investment in thousands B= Blue Chip fund investment in thousands ) Build a spreadsheet model a Internet Fund = ? Blue Chip Fund = c) Suppose that a second client with $50,000 to invest has been classified as an aggressive investor. B\&R recommends that the maximum portfolic risk rating for an aggressive investor is 320 . What is the recommended investment portfolio for this aggressive investor? Internet Fund =$ Blue Chip Fund =$ Annual Retum =$ d) Suppose that a third client with $50,000 to invest has been classified as a conservative investor. B\&R recommends that the maximum portfolio risk rating for a conservative investor is 160 . Develop the recommended investment portfolio for the conservative investor. If your answer is zero enter " 0 ". Internet Fund =$ Blue Chip Fund =$
The linear programming model that determines the best investment strategy for the client is to invest $35,000 in the internet fund and $15,000 in the blue-chip fund.
This is an optimization problem where we have to maximize the annual return while keeping in mind the maximum risk rating and investment limits. The objective function is to maximize the annual return of the investment. The first constraint is the budget constraint, which is equal to the client's maximum investment of $50,000. The second constraint is the maximum risk tolerance of the client, which is 240 for a moderate investor.
The third constraint is the limit on investment in the Internet fund, which is a maximum of $35,000. We have to use Solver in Excel to solve this linear programming model, which recommends that the client should invest $35,000 in the Internet fund and $15,000 in the blue-chip fund.
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Discuss in terms of the concept analysis and evaluation the
topic below. Support your statements with credible evidence and
offer an example. Explain in detail at least two paragraphs.
-Financial Mana
Financial management is a crucial aspect of organizational decision-making. Financial management refers to the process of planning, organizing, controlling, and monitoring an organization's financial resources. It involves analyzing and evaluating financial data to make informed decisions that maximize the organization's profitability and ensure its long-term financial stability.
In the concept analysis of financial management, it is important to understand the key components and principles involved. These include financial planning, budgeting, financial reporting, and financial analysis. Financial planning involves setting goals and objectives, identifying the resources needed to achieve them, and developing strategies to allocate those resources effectively. Budgeting is the process of creating a financial plan that outlines income and expenditure for a specific period. Financial reporting involves preparing and presenting financial statements that provide an overview of an organization's financial performance. Lastly, financial analysis involves evaluating financial data to assess the organization's financial health and make informed decisions.
To evaluate the concept of financial management, credible evidence can be found in research studies, textbooks, and industry reports. For example, a study conducted by the Harvard Business School found that companies with effective financial management practices tend to have higher profitability and better overall performance. This evidence supports the importance of financial management in achieving organizational success.
Therefore, financial management is a crucial aspect of organizational decision-making. It involves analyzing and evaluating financial data to make informed decisions that maximize profitability and ensure long-term financial stability. By understanding the key components and principles of financial management and using credible evidence, organizations can improve their financial performance and achieve their goals.
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Great Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $60 per passenger. Great Cruiseline's variable cost of providing the dinner is $30 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. Under these conditions, the breakeven point in tickets is 9,000 and the breakeven point in sales dollars is $540,000. Suppose Great Cruiseline embarks on a cost reduction drive and slashes fixed expenses from $270,000 per month to $192,000 per month. Read the requirements. 1. Compute the new breakeven point in units and in sales dollars. Begin with the breakeven point units. Enter the formula, then compute the breakeven point. (For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) = Breakeven units Now compute the breakeven point in sales dollars. Enter the formula, then compute the breakeven point. (Enter the contribution margin ratio as a whole percent. For amounts with a $0 balance, make sure to enter "0" in the appropriate input field.) Breakeven sales 2. Is the breakeven point higher or lower than under the original conditions? Explain how changes in fixed costs generally affect the breakeven point. The breakeven point is All else being equal in fixed costs will decrease the breakeven point while in fixed costs will increase the breakeven point.
The new breakeven point in units is 6,400 and the new breakeven point in sales dollars is $384,000.
How to find?To compute the new breakeven point in units and in sales dollars, we need to calculate the contribution margin per unit and the contribution margin ratio.
The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price per unit. In this case, the selling price per unit is $60 and the variable cost per unit is $30, so the contribution margin per unit is $60 - $30 = $30.
The contribution margin ratio is calculated by dividing the contribution margin per unit by the selling price per unit and multiplying by 100 to get a percentage. In this case, the contribution margin ratio is ($30 / $60) * 100 = 50%.
To calculate the new breakeven point in units, we can use the formula:
breakeven units = fixed costs / contribution margin per unit.
Under the new conditions, the fixed costs are $192,000 per month.
Plugging this into the formula, we get: breakeven units = $192,000 / $30
= 6,400 units.
To calculate the new breakeven point in sales dollars, we can use the formula:
breakeven sales = breakeven units * selling price per unit.
Plugging in the values, we get: breakeven sales = 6,400 units * $60
= $384,000.
Therefore, the new breakeven point in units is 6,400 and the new breakeven point in sales dollars is $384,000.
2. The breakeven point under the new conditions is lower than under the original conditions. When fixed costs decrease, the breakeven point decreases as well.
This is because fixed costs are expenses that do not change with the level of production or sales.
By reducing fixed costs, the company is able to cover its costs with fewer units or sales dollars, resulting in a lower breakeven point.
Conversely, an increase in fixed costs would raise the breakeven point as more units or sales dollars would be required to cover the higher fixed costs.
In summary, changes in fixed costs generally have a direct impact on the breakeven point.
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what kind of graph from the following table can be used to model a highway system between major cities, where
The graph that can be used to model a highway system between major cities is a Weighted Graph. A weighted graph is a graph in which each edge has an associated numerical value, called weight, which could be positive or negative.
The highways system between major cities is an example of a transportation network where it is crucial to represent the distance between the cities as weights. There are many ways to represent the data, but one of the most common ways is to use a weighted graph in which the cities are represented as nodes and the highways are represented as edges with weights that represent the distance between the cities.
The weights in the weighted graph are more than 100 because the distance between major cities is usually much greater than 100 miles, and this is the distance unit most often used for highways in the United States.
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In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today. there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the
change?
In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. This change was primarily caused by a combination of factors:
1. Economic considerations: The multiple competing bus companies in the past often resulted in inefficiencies and duplication of services. As a result, the government intervened to regulate and streamline the industry. This led to the consolidation of bus companies into a single entity, which could operate more efficiently and cost-effectively.
2. Public interest: The shift towards a single, subsidized, regulated monopoly was driven by the desire to ensure reliable and affordable public transportation for all citizens. The government stepped in to guarantee essential services and prevent market failures that could arise from unregulated competition.
3. Infrastructure development: The rise of private car ownership and the expansion of road networks also played a role in the change. As more people relied on personal vehicles, the demand for public transportation decreased. To ensure the viability of public transportation systems, the government stepped in to provide financial support and regulate the industry.
In conclusion, the change from multiple competing city bus companies to a single, subsidized, regulated monopoly was primarily driven by economic considerations, public interest, and infrastructure development. This shift aimed to improve efficiency, guarantee essential services, and adapt to changing transportation needs.
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which of the following strategies can be used to identify the cause of an incident? [choose all that apply]
When identifying the root cause of an incident, there are several strategies you can use. These strategies include the follow ingrains orbing fishbone Diagram5 whys Analysis of trends Brainstorming.
You may write down all the possible causes that come to mind and select the most relevant ones. Fishbone Diagram: Another technique for identifying the root cause of an incident is using a Fishbone diagram, also known as an Ishikawa diagram or cause-and-effect diagram. It assists you in visualizing possible causes by dividing the possible causes into categories and subcategories.
Additionally, trend analysis can help you identify any changes in the incident rate or incident patterns over time. Therefore, the strategies that can be used to identify the cause of an incident are brainstorming, fishbone diagram, 5 Whys, and trend analysis.
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how often should quality control tests be done for procedures performed in the office
QC tests should be performed at least once per day for most procedures, but more frequently for procedures with a high risk of harm to the patient.
The frequency of quality control (QC) tests for procedures performed in the office will vary depending on the type of procedure and the risk of harm to the patient if an error occurs. However, it is generally recommended that QC tests be performed at least once per day for most procedures.
Here are some factors to consider when determining the frequency of QC tests:
The stability of the procedure. Some procedures are more stable than others, and therefore require less frequent QC testing.
The risk of harm to the patient. Procedures that have a high risk of harm to the patient should be QC tested more frequently.
The availability of QC materials. Some QC materials are more expensive or difficult to obtain than others, and therefore may not be available for daily testing.
The cost of QC testing. The cost of QC testing should be weighed against the risk of harm to the patient.
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The reason price equals marginal revenue in a perfectly competitive market is that: marginal revenue is always equal to marginal cost O consumer advocacy groups maintain a steady price. the law prohibits marginal revenue from diverging from market price. since price is constant, the added revenue from selling one more unit is the price.
In a perfectly competitive market, the reason price equals marginal revenue is because the added revenue from selling one more unit is equal to the price.
Here's a step-by-step explanation:
1. In a perfectly competitive market, there are many buyers and sellers, and the products being sold are identical.
2. Each individual seller in a perfectly competitive market is a price taker, meaning they cannot influence the market price and must accept it as given.
3. The market price is determined by the intersection of the market demand and supply curves.
4. In this market structure, a firm's marginal revenue is equal to the price because the firm can sell additional units at the market price.
5. Since the price is constant for each unit sold, the added revenue from selling one more unit is equal to the price.
6. Therefore, price equals marginal revenue in a perfectly competitive market.
It's important to note that this relationship between price and marginal revenue is specific to perfectly competitive markets. In other market structures, such as monopolies or oligopolies, the relationship between price and marginal revenue may be different.
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On January 1, 2020, Sheffield Corp. purchased a machine costing $350000. The machine is in the MACRS 5-year recovery class for tax purposes and has an estimated $66000 salvage value at the end of its economic life. It's based on half year convention.
Assuming the company uses the general MACRS approach, the amount of MACRS deduction for tax purposes for the year 2020 is
The MACRS (Modified Accelerated Cost Recovery System) is a depreciation method used for tax purposes in the United States. It allows businesses to recover the cost of assets over a specified period.
In this case, Sheffield Corp. purchased a machine on January 1, 2020, with a cost of $350,000 and an estimated salvage value of $66,000 at the end of its economic life. The machine falls under the MACRS 5-year recovery class and follows the half-year convention.
Under the general MACRS approach, the depreciation deduction for the first year is calculated using the half-year convention. The half-year convention assumes that the asset was placed in service in the middle of the year, regardless of the actual acquisition date.
For a 5-year recovery class, the MACRS depreciation percentages are 20%, 32%, 19.2%, 11.52%, 11.52%, and 5.76% for each respective year.
To calculate the MACRS deduction for the year 2020, we apply the 20% depreciation rate to the machine's cost of $350,000. However, since we are using the half-year convention, we multiply the depreciation rate by 0.5.
The MACRS deduction for the year 2020 can be calculated as follows:
MACRS deduction = (Cost of the machine × Depreciation rate × Half-year convention)
= ($350,000 × 20% × 0.5)
= $35,000
The MACRS deduction for tax purposes for the year 2020, using the general MACRS approach with the half-year convention, is $35,000. This amount represents the depreciation expense that Sheffield Corp. can claim for tax purposes in the first year of owning the machine.
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Describe the THREE (3) issues that a financial institution will have to consider when assessing credit risk from a single counterparty. (b) Discuss how 'credit quality' can affect the counterparty to perform an obligation. (c) Differentiate between credit ratings used by banks in relation to those used by others.
(a) The three issues are: financial position of the borrower, level of security available, and past repayment record.
(b) Credit quality can affect the counterparty's ability to perform an obligation.
(c) Banks use more specific credit ratings than others.
The questions are self-explanatory, the first is asking for 3 issues to be described, the second for a discussion of credit quality, and the third for a differentiation between credit ratings used by banks in relation to those used by others.
(i) the financial position of the borrower,
(ii) the level of security available, and
(iii) the past repayment record of the borrower.
The financial position of the borrower is evaluated by the institution to determine the ability of the borrower to pay back the credit granted. Credit quality refers to the ability of a borrower to meet its obligations and responsibilities.
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a colorless, crystalline solid is decomposed, leaving a pale yellow-green gas and and a soft, shiny metal.
The given scenario describes a decomposition reaction where a colorless, crystalline solid undergoes a chemical transformation, resulting in the formation of a pale yellow-green gas and a soft, shiny metal.
One possible compound that fits this description is mercuric oxide (HgO). When heated, mercuric oxide decomposes into mercury vapor (Hg) and oxygen gas (O2). The release of oxygen gas is colorless, while the mercury vapor appears as a pale yellow-green gas. The residue left behind is metallic mercury, which is soft and exhibits a shiny appearance.
The decomposition reaction of mercuric oxide can be represented as:
2HgO (s) → 2Hg (g) + O2 (g)
This type of decomposition reaction is commonly observed in various laboratory experiments involving mercuric oxide. It highlights the transformation of a solid compound into gases and a metallic residue, demonstrating the chemical changes that can occur during thermal decomposition.
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If
there are a known finite number of repeated games to be played, the
two players will cooperate until the last game, at which point both
will try to defect.
true or false? explain.
False, the statement is not completely true. The concept of repeated games is based on the expectation of players to meet each other again in the future games and if this concept of the future is removed the outcome of the game can change considerably.
The repeated games are a common game theory concept in which a set of games played multiple times between two players or groups where the outcome of the previous game affects the future game. The theory of repeated games suggests that the players cooperate in the first game as they expect to meet each other in the future games too. Therefore, cooperation is the best strategy that maximizes the mutual benefit of the players.
However, the given statement is not completely true as it does not include all the factors that affect the decision-making of players. The cooperation between the players is not solely dependent on the number of games played. Instead, it is based on many other factors, such as the information about the strategy of the other player, the discount rate of the future benefits, and the uncertainty of the future games.
The discount rate determines the value of the present benefit over the future benefit. If a player has a high discount rate, the present benefit is valued more than the future benefit, and hence the player will defect in the last game instead of cooperating. Similarly, if the players are uncertain about the future games, they may not cooperate in the present game as they cannot predict the future games.
Therefore, the statement is not completely true as it does not include all the factors that affect the decision-making of players. The cooperation of players in the repeated games is not solely dependent on the number of games played.
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In which of the following situations can a firm providing goods and services gain a competitive advantage? (Check all thatapply.)a)Their offerings are similar to competitors' offerings at higher prices.b)Their offerings are of similar quality to competitors' offerings but can be sold atlower prices due to lower costs.c)Their offerings provide more value for consumers than competitors' offerings.d)Their offerings cost more to produce than competitors' offerings.
A competitive advantage is when a company is able to provide goods and services that are more valuable to consumers than those offered by its rivals. There are several ways a firm can gain a competitive advantage. Among the options listed above, only options (b) and (c) apply.
In the scenario where a firm provides offerings that are similar in quality to those of its rivals but at a lower price due to lower costs (option b), the firm will have a competitive advantage. The firm can either maintain its current price level and achieve higher profit margins or undercut its competitors’ prices to gain a greater market share.
Alternatively, if the firm is able to provide more value for consumers than its competitors’ offerings (option c), then the firm will also have a competitive advantage.
The firm will be able to attract more customers and/or charge a premium price for its goods or services, which will lead to increased profitability.
However, if a firm’s offerings are similar to those of its competitors but at higher prices (option a), then it will not have a competitive advantage. Customers will opt to purchase goods or services from the cheaper alternatives, and the firm’s sales will suffer.
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