Answer:
D. the cost of increasing output by one more unit equals the revenues obtainable from selling the extra unit.
Explanation:
The firm should continue to producing till the increasing cost output by one extra unit equivalent to the revenue received from selling the additional unit as we know that the marginal cost is equivalent to marginal revenue. In the case when the marginal revenue is more than the marginal cost so it would rise the production but if the case is opposite so the output would reduce
Therefore the option D is correct
If a borrower can afford to make monthly principal and interest payments of 1000 and the lender will make a 30 year loan at 5 1/2%, or a 20 year loan at 4 1/2% what is the largest loan this buyer can afford
Answer:
The the largest loan this buyer can afford is 14,533.75.
Explanation:
This can be determined using the formula for calculating the present value of an ordinary annuity as follows:
Step 1: Calculations of the present value or the loan the buyer can afford for a 30 year loan at 5 1/2%
PV30 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV30 = Present value or the loan the buyer can afford for a 30 year loan at 5 1/2% =?
P = monthly payment = 1000
r = interest rate = 5 1/2% = 5.50% = 0.055
n = number of years = 30
Substitute the values into equation (1) to have:
PV30 = 1000 * ((1 - (1 / (1 + 0.055))^30) / 0.055)
PV30 = 1000 * 14.5337451711221
PV30 = 14,533.75
Step 2: Calculation of the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%
PV20 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)
Where;
PV30 = Present value or the loan the buyer can afford for a 20 year loan at 4 1/2% =?
P = monthly payment = 1000
r = interest rate = 4 1/2% = 4.50% = 0.045
n = number of years = 20
Substitute the values into equation (1) to have:
PV20 = 1000 * ((1 - (1 / (1 + 0.045))^20) / 0.045)
PV20 = 1000 * 13.0079364514537
PV20 = 13,007.94
Conclusion
Since 14,533.75 which is the present value or the loan the buyer can afford for a 30 year loan at 5 1/2% is greater than the 13,007.94 which is the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%, it therefore implies that the the largest loan this buyer can afford is 14,533.75.
Suppose that a monopoly computer chip maker increases production from 10 microchips to 11 microchips. If the market price declines from $30 per unit to $29 per unit, marginal revenue for the eleventh unit is:
Answer:
$19
Explanation:
Marginal revenue is the change in revenue when production increases by one unit
Marginal revenue = change in total revenue / change in quantity produced
total revenue 1 = $30 x 10 = $300
Total revenue 2 = $29 x 11 = $319
change in total revenue = $319 - $3000 = $19
Change in quantity produced = 11 - 10 = 1
Marginal revenue = $19 / 1 = 19
Lump-sum taxes are rarely used in the real world because:_______________
a. while lump-sum taxes have low administrative burdens, they have high deadweight losses.
b. while lump-sum taxes have low deadweight losses, they have high administrative burdens.
c. lump-sum taxes are often viewed as unfair because they take the same amount of money from both poor and rich.
d. lump-sum taxes are very inefficient.
Answer:
c. lump-sum taxes are often viewed as unfair because they take the same amount of money from both poor and rich.
Explanation:
To understand this question, you have to first understand what lump-sum taxes are.
Lump-sum taxes are a system of taxes where everybody pays the same amount of tax no matter their economic status, or their actions. Basically, lump-sum taxes take the same amount of money from the rich and the poor, hugely increasing the burden on the poor and lessening that of the rich.
As an example, a lump-sum tax of $100 would require everybody to pay $100. To a person earning, say $120, that would be a huge hit, and be a huge burden on his normal life. However, to a rich person who earns, say, $10000, that would be much more easier for the rich person.
Hence, lump-sum taxes are often viewed as unfair because of the unfair advantage the rich have over the poor in tax-paying.
Hope this helped!
A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 445,000 Debit Allowance for Doubtful Accounts 1,350 Debit Net Sales 2,200,000 Credit All sales are made on credit. Based on past experience, the company estimates 2.0% of its net sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
Dr Bad Debt Expense $44,000
Cr Allowance for Doubtful Accounts $44,000
Explanation:
Preparation of What adjusting Journal entry should the company make at the end of the current year to record its estimated bad debts expense
Based on the information given the adjusting Journal entry that the company should make at the end of the current year to record its estimated bad debts expense will be:
Dr Bad Debt Expense $44,000
Cr Allowance for Doubtful Accounts $44,000
(Net Sales 2,200,000*Estimated 2.0% of net sales)
(Being to record estimated bad debts expense)
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 23 units at $205 17 units February: 33 units at $210 17 units May: 28 units at $215 21 units September: 25 units at $220 20 units November: 23 units at $225 25 units On December 31, there were 32 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory
Answer:
$6,755
Explanation:
The computation of the cost of the ending inventory using the perpetual LIFO method is as follows:
For January:
Total value = Units remaining in inventory × cost per unit
= (23 - 17) × $205
= $1,230
For February:
Total value = Units remaining in inventory × cost per unit
= (33 - 17) × $210
= $3,360
For May:
Total value = Units remaining in inventory × cost per unit
= (28 - $21) × $215
= $1,505
For September:
Total value = Units remaining in inventory × cost per unit
= (25 - 20) × $220
= $1,100
For November:
Total value = Units remaining in inventory × cost per unit
= (25 - 23) × $220
= $660
Cost of the ending inventory:
= $1,230 + $3,360 + $1,505 + $660
= $6,755
A firm issues $225 million in straight bonds at an original issue discount of 2.0% and a coupon rate of 6%. The firm pays fees of 4% on the face value of the bonds. The net amount of funds that the debt issue will provide for the firm is
Answer:
$211.5 million
Explanation:
The computation of the net amount of funds that the debt issue is as follows
Particulars Amount
Face value of Bonds $225,000,000.00
Less Discount (225m × 0.02) -$4,500,000.00
Less fees (225m × 0.04) -$9,000,000.00
Net amount of funds $211,500,000.00
Hence, the net amount of funds that the debt issue is $211.5 million
The same is to be considered
Pexura731 Corporation conducts get-rich-quickly workshops and uses two measures of activity, classes and students, in the cost formulas in its internal financial and operating reports. The cost formula for workshops is $450 per month plus $105 per class plus $25 per student. Pexura731 expected its activity in January to be 15 classes and 125 students, but the actual activity was 9 classes and 108 students. (ID#92589) The actual cost for workshops in January was $4,450. Q) What was Pexura731's spending variance for workshops in January?
Answer:
355 (Unfavorable)
Explanation:
Budgeted Cost for Actual Output = $450 + ($105 * Actual No of Classes) + ($28 *Actual No of Student)
Budgeted Cost for Actual Output = $450 + ($105*9) + ($25*108)
Budgeted Cost for Actual Output = $450 + $945 + $2,700
Budgeted Cost for Actual Output = $4,095
Actual Cost for Actual output = $4,450
Spending Variance = Actual Cost for Actual output - Budgeted cost for Actual Output
Spending Variance = $4,450 - $4,095
Spending Variance = 355 (Unfavorable)
It is Unfavorable as actual expenditure is more than what is budgeted.
Samuelson Electronics has a required payback period of three years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 2.8 years and a net present value of $6,800. Project B has an expected payback period of 3.1 years with a net present value of $28,400. Which projects should be accepted based on the payback decision rule?
A. Project A only.
B. Project B only.
C. Both A and B.
D. Neither A nor B.
E. Either, but not both projects.
Answer:
Explanation:
Project A only
Companies that are concerned with boosting workplace morale, maximizing employees' productivity and creativity, and motivating employees to be more effective are concerned with:_______
a. human relations
b. behavior modification
c. sustainability
d. control systems
e. workplace capacity
Answer:
Companies that are concerned with boosting workplace morale, maximizing employees' productivity and creativity, and motivating employees to be more effective are concerned with:_______
e. workplace capacity
Explanation:
Workplace capacity is concerned with workers' welfare, workplace needs, work activity. It concentrates on ensuring the establishment of workplace morale and employee motivation in order to encourage the productivity and creativity of the workers. Every decision is centered around the workers' interest.
Mr. West wishes to purchase a condominium for $240,000 in cash upon his retirement 10 years from now. How much should he deposit at the end of each month into an annuity paying 2.7% interest compounded monthly in order to accumulate the required amount
Answer:
He should deposit $1,744.37 at the end of each month.
Explanation:
This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value or the of condominium = $240,000
M = Monthly payment = ?
r = monthly interest rate = 2.7% / 12 = 0.027 / 12 = 0.00225
n = number of months = 10 years * 12 months = 120
Substituting the values into equation (1) and solve for M, we have:
$240,000 = M * (((1 + 0.00225)^120 - 1) / 0.00225)
$240,000 = M * 137.585424499073
M = $240,000 / 137.585424499073
M = $1,744.37
Therefore, he should deposit $1,744.37 at the end of each month.
In the short run, a supply shock will _________ the equilibrium level of prices and ___________ the equilibrium level output. reduce;raise raise;raise reduce;reduce raise;reduce
Answer: raise; reduce
Explanation:
A Supply shock is described as a situation where the supply of a good changes suddenly/ abruptly due to an unforeseen event.
Supply shocks can be positive but are usually negative so we will assume the supply shock is negative here.
If there is a negative supply shock, the amount of goods being produced will reduce abruptly which will force the supply curve to shift left.
It will then intercept the the demand curve at an equilibrium level that has a higher price and a lower quantity of output.
Think of it this way. Negative supply shock ⇒ less goods ⇒ scarcity ⇒ higher prices.
Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $172,000 with terms of 2/15, n/45. Payment was made within the discount period. Shipping costs were $4,600, which included $220 for insurance in transit. Installation costs totaled $11,100, which included $4,900 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is:
Answer:
$184,260
Explanation:
Total cost of draw press is $172,000 and if it paid 15 days, there will be a discount of 2% and it is paid within the discount period
The discount is = $172,000 * 2/100 = $3,440
Total amount that would be capitalized is:
= ($172,000 - $3,440) + $4,600 + $11,100
= $168,560 + $4,600 + $11,100
= $184,260
So, the capitalized cost of the 10-ton draw press is $184,260
Note:
- The shipping costs and installation cost will be capitalized
- The cost of insurance in transit and cost incurred to remove a section of a wall will be capitalized as well as they are included in the cost above already
What is an added value???
Explanation:
The difference between the price of the finished product/service and the cost of the input involved in making it is known as an added value
The difference between the price of the finished product/service and the cost of the input involved in making it is known as an added value
A(n) _____ market is a market in which just a few firms control a large market share.
a. monopolistic
b. monopsonistic
c. monopolistically
d. competitive
e. oligopolistic
Answer:
Option e (oligopolistic) is the appropriate solution.
Explanation:
The oligopoly would be a market governed by those few companies. There are several companies throughout this industry that offer relatively homogenous either separated goods. Often, since there are very few retailers on the marketplace, each seller affects the actions of several other companies and perhaps other businesses.Some other available scenarios aren't relevant to the situation in question. That's the correct above.
On January 1, Graves Corporation had 60,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Apr. 1 Issued 9,000 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.5 per share to stockholders of record on June 30. July 10 Paid the $1.5 cash dividend. Dec. 1 Issued 4,000 additional shares of common stock for $12 per share. Dec. 15 Declared a cash dividend on outstanding shares of $1.6 per share to stockholders of record on December 31. Prepare the entries, if any, on each of the three dates that involved dividends. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 1, 225.)
Answer:
Date Account Titles and Explanation Debit Credit
June 15 Cash Dividends $103,500
[(60000+9000)*$1.5]
Dividends payable $103,500
(Being dividend declared for 69000 shares at $1.5 each)
July 10 Dividends payable $103,500
Cash $103,500
(Being dividend paid)
Dec 15 Cash Dividends $116,800
[(60000+9000+4000)*1.6]
Dividends payable $116,800
(Being dividend declared for 73000 shares at $1.6 each)
Jose opened a Premier account at City National Bank of Iowa with a minimum required deposit of
$1000. This bank advertised a rate of 1/2% on their Premier account with interest compounded quarterly.
After 5 years, what is the amount in the account?
Answer:
$1,025.299
Explanation:
The formula for compound interest is
FV = PV × (1+r)^ n
Where Fv is the future value
Pv is the present value = $1000
r is interest rate = 1/2 % or 0.5% per year
n is five years
interest is compounded quarterly,
Interest per quarter = 0.5% /4 = 0.125% which is 0.00125
n will be 5 years x 4 quarters = 20 periods
Fv= $1000 x (1 +0.00125)^20
Fv =$1000 x(1.00125)^20
Fv= $1000 x 1.025299
Fv = $1,025.299
The market value of the Blackwell Corporation just declined by 5 percent. Analysts believe this decrease in value was caused by recent legislation passed by Congress. Which type of risk does this illustrate?
a. Diversifiable risk
b. Purchasing power risk
c. International risk
d. Poltical risk
e. Exchange rate risk
Answer:
Option d: Political risk
Explanation:
Political Risk is simply defined as likelihood of disruption of the operations of MNEs by political forces or events. It is termed as action of a government that limits firm value.
Governments intervene in subtler but just as costly ways today leading to:
- Tax and royalty increases
- Partial/Full nationalizations
- Breach of contract and others
Amber Corporation purchases 40,000 shares of its own $20 par value common stock for $80 per share. What will be the effect on stockholders' equity?
a. decrease $800,000
b. increase $3,200,000
c. increase $800,000
d. decrease $3,200,000
Answer:d. decrease $3,200,000
Explanation:
Outstanding shares = 40,000
Price per share = $80
Amount to be paid to purchase its own shares = Number of outstanding shares x Price per share
= 40,000 x 80
= $3,200,000
When a company buys its own share , it is termed as Treasury stock, Having known that Treasury stock tends to decrease stockholders equity.
The stockholders equity of Amber Corporation will be decreased by $3,200,000.
A company reported total stockholders' equity of $540,000 on its balance sheet dated December 31, 2016. During the year ended December 31, 2017, the company reported net income of $60,000, declared and paid a cash dividend of $18,000, declared and distributed a 10% stock dividend with a $15,000 total market value, issued additional common stock for $70,000, and resold treasury stock for $15,000 that it had purchased in 2016 for $12,000. What is total stockholders' equity as of December 31, 2017
Answer:
$667,000
Explanation:
stockholders' equity December 31, 2016 = $540,000
plus net income = $60,000
minus cash dividends = ($18,000)
plus issuance of common stock = $70,000
plus sale of treasury stock = $15,000
stockholders' equity = $667,000
Stock dividends do not affect the value of stockholders' equity, that is why they are not included in this calculation.
Describe the technologies that contributed to the development and advancement of the newspaper from small, infrequent circulations of a few brief pages to the mass production of daily, extensive pages of news.
Answer: The industrial revolution came with the advent of the stream powered printing press, enabling newspapers to be produced in masses
Explanation:
The industrial revolution came with the advent of the stream powered printing press, enabling newspapers to be produced in masses. Improvement also took place in the inking process to aid speed up production also introduction of wood pulp helping drive production cost. One of the major advantage for this widespread growth was the relevance the newspaper gained globally as worthy news ready to be reported were available.
In this discussion question you have the opportunity to be creative and to relate what you have learned to your professional lives. Please explore and critically think about some of the learning outcomes and concepts presented in this course. Please effectively communicate how you would lead an organization (or a group of people within the organization) by applying the knowledge you have learned ethically and responsibly. Your discussion should also include innovative thinking, and information-technology aspects (such as the Internet, social-media, computers, etc.) that may assist you in decision-making. You may frame your discussion around any functional component of business, and in any context; problem-solving, management, leadership, organizational behavior, etc.
Answer:
Creating a friendly culture will motivate the employees to attend work everyday, setting goals and targets with their input which makes the targets and goals look achievable, this will also motivate the employees and result in better performance. Sense of responsibility is also important if they are given a task they should be liable for it and they should be accountable for the work done by themselves this initiative will minimize mistakes and encourage perfection.
Explanation:
Creating a friendly culture will motivate the employees to attend work everyday, setting goals and targets with their input which makes the targets and goals look achievable, this will also motivate the employees and result in better performance. Sense of responsibility is also important if they are given a task they should be liable for it and they should be accountable for the work done by themselves this initiative will minimize mistakes and encourage perfection.
Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet Gouda has a lower break-even point than Cheddar. Explain the reason. Assuming Gouda is above the break-even point, what will happen for each unit sale
Answer:
If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.
Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.
Explanation:
The following information is available for Felix Company: Net income $300 Decrease in plant and equip. $40 Depreciation expense $20 Increase in deferred tax asset $5 Gain on sale of assets $35 Decrease in long-term debt $50 Increase in inventories $25 Decrease in accounts payable $15 What is cash flow from operating activities for Felix Company
Answer:
$240
Explanation:
The computation of cash flow from operating activities of Felix company is seen below;
= Net income - Decrease in plant and machinery + decrease in expense - increase in deferred assets + gain on sale of assets
= $300 - $40 + $20 - $5 + $35
= $240
Therefore, cash flow from operating income of Felix company is $240
In each case, choose the firm that you expect to have the higher asset turnover ratio. (Hint: think about the likely nature of each firm’s business model. For example, would the firm require a lot or a little capital? Would it strive for high sales or high profit margins?) (LO4-3) a. Economics Consulting Group or Home Depot b. Catalog Shopping Network or Gucci c. Electric Utility Co. or Standard Supermarkets
Answer:
Asset Turnover ratio = Net Sales/ Average Total Assets
a. Economics Consulting Group or Home Depot.
Home Depot has more physical assets than the Economic Consulting group which has its main assets as its employees which cannot be recorded as values in the balance sheet. ECG will therefore have more sales to assets and a higher Asset Turnover ratio.
b. Catalog Shopping Network or Gucci.
Catalog Shopping conducts its business mainly online or rather without using stores which means they will not hold as much physical inventory. This is different from Gucci which will hold inventory as well as have stores and the like. They will have more assets than Catalog Shopping Network which will give Catalog a higher Asset Turnover.
c. Electric Utility Co. or Standard Supermarkets.
Electric Utility Co. as an electric provider will have a high amount of assets as the nature of their business demands this. Supermarkets in comparison have less assets and so this will give them a higher Asset Turnover ratio.
A mini-presentation Please make a presentation about the topic "What is important when working from home?" • Set up an office space in the house. • Plan your working hours and your breaks. • • You are require to submit your presentation script and your video here.
Explanation:
Working from home can be a challenging but very rewarding task. When thinking about the advantages of being able to work from home, you can assess the flexibility of being in an environment where you can feel more secure and comfortable, in addition to the possibility of adapting your schedules and goals, which guarantees greater autonomy and productivity.
However, on the other hand, the advantages explained here can give rise to an important challenge that interferes with the worker's performance, since self-management is something that can be difficult if there is no organization.
Being at home can confer external interference, even more if the individual lives with more people, so it is ideal to set up an office at home where there is silence and ideal conditions for the execution of tasks. It is also necessary that the schedules are adhered to and that there are no distractions with cell phones, television or any other form of incentive that blur the worker, it is ideal that there is an ideal stipulation of working hours and breaks, so that the flexibility is adequate and ideal for the employee. performance and productivity of each person according to their professional profile. But basically, organization, control, discipline and monitoring are necessary, so that there is efficiency and effectiveness in working at home.
If British pounds sell for $1.30 (U.S.) per pound, what should dollars sell for in pounds per dollar?
Solution :
British pound is the name of the currency of the country England.
It is given that the value of one British pound is $ 1.30 in terms of dollar.
i.e. $ 1.30 = 1 Pound
Now calculation for the dollar sells for in pounds per dollar is given by :
[tex]$1 \text{ dollar} = \frac{1}{1.30} \ \text{pound}$[/tex]
[tex]$1 \text{ dollar} = 0.76 \text{ pound}$[/tex]
Therefore, 1$ is 0.76 pound.
Thus, 1 dollar sells for in 0.76 pound per dollar.
You need to turn $13,593 dollars into $18,359 dollars in 8 years. Assuming you make no extra deposits, what interest rate would you need from a bank in order to accomplish this
Answer: 3.83%
Explanation:
$13,593 has to accrue to $18,359.
13,593 * ( 1 + r)⁸ = 18,359
( 1 + r)⁸ = 18,359/ 13,593
(1 + r)⁸ = 1.35062
1 + r = ⁸√1.35062
1 + r = 1.0383
r = 1.0383 - 1
r = 3.83%
While _______ decisions will generally need to be processed via the ______ system in our brains in order for us to reach a good decision, with ______ decisions, heuristics can allow decision-makers to switch to the quick, _____ system. Group of answer choices Nonprogrammed; reflective; programmed; reactive Nonprogrammed; reactive; programmed; reflective Nonprogrammed; reactive; programmed; reactive Programmed; reflective; nonprogrammed; reflective None of the above
Answer:
Nonprogrammed; reflective; programmed; reactive
Explanation:
Programmed decisions can be regarded as decision which involves well understood criteria when making it,. nonprogrammed decisions on the other hand can be explained as decisions which are novel, they are decision that does not have clear guidelines when trying to reach solution. rules as well as guidelines can be set up for programmed decisions by Managers when known fact is available because this will enhance in reaching
decisions quickly. It should be noted that While non programmed decisions will generally need to be processed via the reflective system in our brains in order for us to reach a good decision, with programmed decisions, heuristics can allow decision-makers to switch to the quick, reactive system.
Which of the followinThe IS-LM can be viewed as a special case of the AS-AD model where:
a. the short run aggregate supply curve is flat
b. the short run aggregate supply curve does not exist
c. there is only a short run aggregate supply curve if shocks are unexpected
d. the short run aggregate supply curve is verticalg statements is true
Answer:
Short run aggregate supply curve is flat ( A )
Explanation:
The special case of the AS-AD following the IS-LM is that the short run aggregate supply curve is flat
This is because in an AS-AD model the price level is constant and AD represents an equilibrium point along IS-LM model, hence the price been constant, shows that in short run aggregate supply curve will be flat.
The Holmes Company's currently outstanding bonds have a 8% coupon and a 13% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Holmes's after-tax cost of debt?
Answer: 8.45%
Explanation:
From the question, we are informed that Holmes Company's currently has an outstanding bonds and has a 8% coupon and a 13% yield to maturity.
We are further told that Holmes believes it could issue new bonds at par that would provide a similar yield to maturity and that its marginal tax rate is 35%.
Holmes's after-tax cost of debt will therefore be calculated as:
= Yield to maturity × (1 - Marginal tax rate)
= 13% × (1 - 35%)
= 13% × (65%)
= 0.13 × 0.65
= 0.0845
= 8.45%
