Frederick Taylor believed that workers were motivated by financial incentives and his scientific management system aimed to maximize efficiency through the scientific study of work processes.
Frederick Taylor, the pioneer of scientific management, held certain assumptions about humans at work. He believed that workers were rational beings who were motivated primarily by financial incentives.
Taylor did not consider workers lazy but rather viewed inefficiencies in work methods and management systems as the main obstacles to productivity. His scientific management system aimed to maximize efficiency through several key elements.
These included scientific study and analysis of work processes, careful selection and training of workers, standardization of tasks and tools, and the separation of planning and execution. Taylor's system aimed to eliminate wasted effort and improve productivity by optimizing division of labor and applying scientific principles to work.
Learn more about Frederick Taylor here
https://brainly.com/question/31944763
#SPJ4
Current Attempt in Progress If total fiabilities decreased by $30400 and owner's equity decreased by $21400 during a period of time, then total assets must chunize by what amount and direction during that same period? $51800 increase $51800 decrease $9000 decrease $9000 increase
The Total Assets decreased by $51,800 during the same period.
Given that total liabilities decreased by $30,400 and owner's equity decreased by $21,400 during a period of time, we are to find out by what amount and direction will the total assets change during the same period. Let us use the basic accounting equation i.e. ,Total Assets = Total Liabilities + Owner's Equity
To find the direction and amount of the change, we will consider the given data as: Total Liabilities decreased by $30,400and Owner's Equity decreased by $21,400Therefore,Total Assets = Total Liabilities + Owner's Equity Change in Total Liabilities = -$30,400 (decrease)Change in Owner's Equity = -$21,400 (decrease)Substituting these values in the accounting equation, we get Change in Total Assets = Change in Total Liabilities + Change in Owner's EquityChange in Total Assets = -$30,400 + (-$21,400)Change in Total Assets = -$51,800Therefore, the Total Assets decreased by $51,800 during the same period.
The Total Assets decreased by $51,800 during the same period. We know that Total Assets = Total Liabilities + Owner's Equity. Using this equation and the given data, we substitute the values to getChange in Total Assets = Change in Total Liabilities + Change in Owner's Equity. Change in Total Assets = -$30,400 + (-$21,400)
Change in Total Assets = -$51,800
To know more about Assets visit:
brainly.com/question/14826727
#SPJ11
Find a marketing plan for a healthcare organization, and look for the key components discussed in this chapter. On what specific features and attributes does the plan focus? Does it identify a target market segment? If so, what is the segment?
***MUST BE 500 WORDS***
A marketing plan for a healthcare organization typically includes an executive summary, situation analysis, target market identification, marketing objectives, marketing strategies, implementation plan, and evaluation and control measures. The specific features and attributes that the plan focuses on would depend on the organization's offerings a
When looking for a marketing plan for a healthcare organization, the key components discussed in this chapter would typically include the following:
1. Executive Summary: This provides a brief overview of the marketing plan, including the organization's goals and objectives.
2. Situation Analysis: This section involves conducting a thorough analysis of the organization's internal and external environment. It includes a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) and a competitive analysis.
3. Target Market: The marketing plan should identify a specific target market segment. This involves defining the characteristics and needs of the ideal customer for the healthcare organization's services.
4. Marketing Objectives: Clear and measurable objectives should be established to guide the marketing efforts. These objectives should align with the organization's overall goals.
5. Marketing Strategies: This section outlines the specific strategies that will be employed to reach the target market. It may include branding, advertising, public relations, digital marketing, and other promotional activities.
6. Implementation Plan: This details the action steps and timelines for executing the marketing strategies. It includes budget allocation, resource allocation, and responsibilities.
7. Evaluation and Control: This component involves monitoring the effectiveness of the marketing plan and making adjustments as needed. Key performance indicators (KPIs) should be identified to measure success.
Now, in terms of the specific features and attributes that the plan focuses on, it would depend on the healthcare organization and its unique offerings. For example, if the organization provides specialized services such as cardiology or pediatrics, the plan may focus on promoting those services. If the organization prides itself on patient-centered care or state-of-the-art facilities, those features and attributes would likely be highlighted.
In conclusion, a marketing plan for a healthcare organization typically includes an executive summary, situation analysis, target market identification, marketing objectives, marketing strategies, implementation plan, and evaluation and control measures.
The specific features and attributes that the plan focuses on would depend on the organization's offerings and unique selling points.
To know more about marketing visit;
brainly.com/question/27155256
#SPJ11
mario's home systems has sales of $2,880, costs of goods sold of $2,220, inventory of $516, and accounts receivable of $436. how many days, on average, does it take mario's to sell its inventory? assume a 365-day year.
84.83 days on average, Maria takes to sell all its inventory if the cost f goods sold is $ 2,220. Option D is correct.
Inventory Turnover Ratio = COGS / Inventory
= 2220/516
= 4.3023
Time taken to sell inventory = 365 / Inventory Turnover Ratio
= 365/4.3023
= 84.83 days
In business, a measure of a company's efficiency is a turnover ratio. It is determined by dividing the annual liability by the annual income. We divide the number of employees at the beginning of a given period by the number of terminations during that period to determine the turnover rate.
Turnover analysis looks at how people change when they leave or stay in an organization to find: how many workers quit. the factors that lead people to leave or stay The expense of turnover connected with an interruption of business coherence.
Learn more about Turnover Ratio:
brainly.com/question/28392732
#SPJ4
Complete question as follows:
Mario's home systems has sales of $2,880, costs of goods sold of $2,220, inventory of $516, and accounts receivable of $436. how many days, on average, does it take mario's to sell its inventory? assume a 365-day year.
A. 83.68 days
B. 71.68 days
C. 55.26 days
D. 84.83 days
E. 65.40 days
4. FILE Listed below are the salaries, in $000, for a sample of 15 chief financial offi cers in the electronics industry. Problem #14 on page 104 : Round Answers to Two Decimals Determine the mean , median standard deviation Determine the coefficient of skewness using Pearson's method.
The mean salary of the chief financial officers in the electronics industry is approximately $541.73 thousand.
The median salary is $546.0 thousand, and the standard deviation is approximately $26.98 thousand.
The coefficient of skewness, calculated using Pearson's method, indicates a slight negative skewness in the salary distribution.
To calculate the mean, we sum up all the salaries and divide by the total number of observations. Adding up the given salaries, we get a sum of $8126.0 thousand. Dividing this sum by 15 (the number of CFOs), we find that the mean salary is approximately $541.73 thousand.
To find the median, we arrange the salaries in ascending order and find the middle value. In this case, when the salaries are sorted, the middle value is the eighth observation, which is $546.0 thousand.
The standard deviation measures the dispersion or spread of the data. To calculate it, we first find the deviations of each salary from the mean. We square these deviations, sum them up, divide by the total number of observations minus one (to get an unbiased estimate), and take the square root of the result. By performing these calculations, we find that the standard deviation is approximately $26.98 thousand.
The coefficient of skewness indicates the asymmetry of the distribution. Pearson's method divides the difference between the mean and median by the standard deviation. In this case, the mean ($541.73) minus the median ($546.0) is approximately -$4.27, divided by the standard deviation ($26.98). This yields a coefficient of skewness of approximately -0.16. Since the coefficient is negative, it indicates a slight negative skewness in the distribution of CFO salaries, suggesting a longer left tail.
Learn more about standard deviation here:
https://brainly.com/question/13336998
#SPJ11
Give a 150-200 word executive summary about Château Margaux: Launching the Third Wine (Abridged)
The case study highlights the various challenges and considerations faced by Château Margaux. These include maintaining the brand's exclusivity and reputation, managing production costs, and ensuring.
That the new wine does not cannibalize sales of the grand vin or the second wine, Pavillon Rouge. Château Margaux: Launching the Third Wine (Abridged) is a case study that explores the strategic decision-making.
Process of one of the most renowned wineries in Bordeaux, Château Margaux, as it considers launching a third wine. Château Margaux has a rich history and reputation for producing exceptional wines.
However, the demand for its grand vin, the first wine, has been consistently high, resulting in limited availability and high prices.
To make an informed decision, the management team conducts extensive market research, seeking input from consumers, distributors, and wine experts.
To know more about reputation visit:
https://brainly.com/question/32755232
#SPJ11
The income index in the regression of the quantity demanded of the commodity over price, income and other variables is 10.
Required :
Find the income elasticity of demand for the commodity at the income of 10,000 and sales of 80,000 units
The income elasticity of demand for the commodity at an income of 10,000 and sales of 80,000 units is 1.25.
The income elasticity of demand measures the responsiveness of quantity demanded to changes in income. In this case, the income index of 10 indicates that a 1% increase in income leads to a 10% increase in quantity demanded, holding other factors constant.
To calculate the income elasticity at a specific income and sales level, we use the formula:
Income Elasticity = Income Index * (Income / Sales)
In this case, with an income of 10,000 and sales of 80,000 units, we substitute these values into the formula to find the income elasticity.
Income Elasticity = 10 * (10,000 / 80,000) = 1.25
The resulting income elasticity of 1.25 means that a 1% increase in income will lead to a 1.25% increase in quantity demanded, indicating a relatively elastic response of demand to changes in income.
learn more about demand here:
https://brainly.com/question/33250356
#SPJ11
If apple pays a $2.50 dividend and that rate grows at 8% a year, how many years will it take Apple to double its dividend?
According to the question it will take approximately 8.75 years for Apple to double its dividend if it continues to grow at a rate of 8% per year.
To determine the number of years it will take for Apple to double its dividend, we need to use the concept of the doubling time, which can be calculated using the rule of 70. The rule of 70 states that to approximate the number of years it takes for a variable to double, divide 70 by the annual growth rate of that variable.
In this case, Apple's dividend is growing at a rate of 8% per year. By applying the rule of 70, we can calculate the doubling time as follows:
Doubling time = 70 / Growth rate
Doubling time = 70 / 8% = 8.75 years
Therefore, it will take approximately 8.75 years for Apple to double its dividend if it continues to grow at a rate of 8% per year.
To learn more about rate
https://brainly.com/question/24841216
#SPJ11
Discuss opportunities and threats in the agriculture sector in
the Malaysian economy
In the Malaysian economy, the agriculture sector presents both opportunities and threats. Opportunities:
1. Growing demand: As the population increases, there is a rising demand for agricultural products, creating opportunities for farmers to meet this demand.
2. Export potential: Malaysia has a favorable climate for agriculture, enabling the production of a wide range of crops. This provides opportunities for exports and revenue generation.
3. Government support: The Malaysian government offers various incentives and support programs for farmers, including subsidies and infrastructure development, fostering growth in the sector.
Threats:
1. Climate change: Rising temperatures, unpredictable weather patterns, and natural disasters pose threats to agricultural production, affecting crop yields and farmers' income.
2. Global competition: The agriculture sector faces competition from other countries, making it necessary for Malaysian farmers to constantly innovate and improve their productivity to remain competitive.
3. Urbanization: The conversion of agricultural land into urban areas reduces the available land for farming, limiting the sector's potential for growth.
In conclusion, while the agriculture sector in the Malaysian economy offers opportunities such as growing demand and government support, it also faces threats from climate change, global competition, and urbanization.
To know more about economy visit:
https://brainly.com/question/18461883
#SPJ11
your quickbooks online client spends a lot of time away from their office and you’re sure they would benefit from the mobile app.
Your Quickbooks Online client is frequently out of the office, and you are confident that they would benefit from using the mobile app to make purchases or manage payroll.
anywhere to work. To enter transactions, keep track of spending, send invoices to clients, and send reports from anywhere, use your mobile device. The Android version may look different but contains similar capabilities. Despite the fact that you can do the majority of your payroll duties using the mobile app, you must sign in to QuickBooks Payroll on the web in order to complete specific operations and the initial payroll setup. Digital payments are transactions that happen online or through other digital platforms without a physical exchange of money. This indicates that both the payer and the payee exchange money via electronic means.
Read more about quickbooks online at
https://brainly.com/question/30113117
#SPJ4
What role(s) should marketing research play during a business crisis? Is research really valuable in a period of marketplace uncertainty?
Marketing research plays a vital role during a business crisis by providing valuable insights and guiding decision-making. Its ability to gather and analyze data helps businesses adapt to marketplace uncertainty and stay competitive.
During a business crisis, marketing research plays a crucial role in helping businesses navigate the uncertain marketplace. Here is a step-by-step explanation of its importance:
1. Understanding the situation: Marketing research helps businesses gather information about the crisis, its causes, and its impact on the marketplace. This understanding allows businesses to make informed decisions.
2. Assessing customer needs: Research helps identify changing customer needs and preferences during a crisis. By understanding customer behavior, businesses can adjust their marketing strategies and tailor their offerings to meet customer demands.
3. Evaluating market conditions: Marketing research provides insights into the market conditions during a crisis, such as changes in competition, pricing, and consumer sentiment. This information helps businesses adapt their marketing tactics accordingly.
4. Monitoring brand reputation: Research allows businesses to track their brand reputation and customer sentiment during a crisis. This helps in identifying potential issues and addressing them promptly to maintain customer trust.
5. Identifying opportunities: Research helps identify new market opportunities that may arise during a crisis. By uncovering gaps in the market, businesses can pivot their strategies and develop innovative solutions to meet emerging needs.
In conclusion, marketing research plays a vital role during a business crisis by providing valuable insights and guiding decision-making. Its ability to gather and analyze data helps businesses adapt to marketplace uncertainty and stay competitive.
To know more about crisis visit:
https://brainly.com/question/33692459
#SPJ11
You are an aggressive investor who is looking to purchase units in an emerging markets fund with the hope that the fund manager can outperform both the benchmark index as well as similar emerging markets funds. What is your main objective or concern in selecting a fund in which to invest?
A. The extent to which the possible realized returns differ from the expected return or the mean.
B. The volatility or risk of returns from an individual security or from a portfolio of securities.
C. The excess return attributed to the skill of the fund manager in selecting securities that outperform.
D. The degree to which individual stocks in the portfolio move up and down with the market.
the main objective or concern in selecting a fund in which to invest is to : C. The excess return attributed to the skill of the fund manager in selecting securities that outperform.
The excess return attributed to the skill of the fund manager refers to the additional return generated by the fund manager's ability to select securities that outperform the benchmark index or other similar funds in the market. This excess return is considered a measure of the fund manager's skill in identifying undervalued or high-performing securities. Fund managers employ various strategies and techniques to analyze market trends, evaluate individual securities, and make investment decisions. They aim to identify investment opportunities that have the potential to deliver higher returns compared to the overall market or other funds in the same category.
learn more about manager here :
https://brainly.com/question/28017308
#SPJ11
Computing job costs and overhead rate; assigning costs to inventory LO C1, P3 Skip to question [The following information applies to the questions displayed below.] At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs. At June 30 Job 5 Job 6 Job 7 Direct materials $ 16,200 $ 33,600 $ 27,600 Direct labor 9,200 15,400 22,200 Overhead applied 4,600 7,700 11,100 Additional Information Job 5 was
Finished goods are items that have completed all manufacturing steps and are offered for sale. The total transferred Cost to finished goods inventory in June is $82,200.
The price at which related parties interact with one another, like when supplies or labor are traded between departments, is referred to as the transfer price or transfer cost.
The finished goods cost is calculated as follows:
Job 5 Job 6
Direct Material $15,200 $33,100
Direct Labor $8,200 $14,400
Over Head $4,100 $7,200
Total Cost $27,500 $54,700
Total Transferred Cost =Job 5+Job 6
=$27,500+$54,700
=$82,200
To learn more on cost, here:
https://brainly.com/question/14566816
#SPJ4
Your question is incomplete, but most probably the full question was,
Job 5 Job 6 Job 7 Required information Problem 15-1A (Algo) Computing job costs and overhead rate; assigning costs to inventory LO C1, P3 (The following information applies to the questions displayed below.) At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs. At June 30 Direct materials $ 15,200 $ 33,100 $ 27, 100 Direct labor 8,200 14,400 21,200 Overhead applied 4,100 7,200 10,600 Additional Information a. Job 5 was started in May, and the following costs were assigned to it in May, direct materials, $6,100; direct labor, $1,900; and applied overhead, $1,000. Job 5 was finished in June. b. Job 6 and Job 7 were started in June; Job 6 was finished in June and Job 7 is to be completed in July. c. Overhead cost is applied with a predetermined rate based on direct labor cost. The predetermined overhead rate did not change across these months. Problem 15-1A (Algo) Part 4 4. What is the total cost transferred to Finished Goods Inventory in June? Total transferred cost
risk premiums on corporate bonds are usually anticyclical​; that​ is, they decrease during business cycle expansions and increase during recessions. why is this​ so?
Risk premiums on corporate bonds are usually anticyclical; they decrease during business cycle expansions and increase during recessions due to changes in investor perception of risk and market conditions.
The fluctuations in risk premiums on corporate bonds can be attributed to several factors. During periods of economic expansion, when business conditions are favorable and economic indicators are positive, investors tend to have more confidence in the financial stability and growth potential of corporations. This increased confidence leads to a decrease in perceived risk, resulting in lower risk premiums demanded by investors to hold corporate bonds. As economic conditions improve, companies are expected to generate higher profits and have a reduced likelihood of defaulting on their debt obligations. Consequently, investors are willing to accept lower compensation for taking on the risk associated with investing in corporate bonds.
Conversely, during economic recessions or periods of economic uncertainty, investor sentiment becomes more cautious. Economic downturns are often accompanied by higher levels of corporate bankruptcies, reduced profitability, and increased default risks. In such times, investors demand higher risk premiums to compensate for the heightened uncertainties and potential losses associated with investing in corporate bonds. The increased risk premiums serve as a safeguard against potential default or financial distress faced by companies during economic downturns.
Additionally, changes in market conditions, such as fluctuations in interest rates, also influence risk premiums. Lower interest rates, which are typically observed during economic expansions, can reduce the overall yield investors receive on bonds. To maintain an attractive risk-return profile, investors may demand lower risk premiums on corporate bonds. Conversely, higher interest rates during recessions can lead to higher overall bond yields, prompting investors to seek higher risk premiums as compensation for the perceived increased risk.
Learn more about Risks
brainly.com/question/27754423
#SPJ11
Determine the effect of the following on a cash basis taxpayer’s gross income for 2022:
a. Received his paycheck for $3,000 from his employer on December 31, 2022. He deposited the paycheck on January 5, 2023.
b. Received a dividend check from IBM on November 28, 2022. He mailed the check back the next day to IBM requesting that additional IBM stock be issued to him under IBM’s dividend reinvestment plan.
The $3,000 would increase the taxpayer's gross income for 2022.
The value of the additional IBM stock would be included in the taxpayer's gross income when it is eventually sold.
The effect on a cash basis taxpayer's gross income for 2022 would be as follows:
The paycheck of $3,000 received on December 31, 2022, would be included in the taxpayer's gross income for 2022 because it was received in that year, regardless of when it was deposited. So, the $3,000 would increase the taxpayer's gross income for 2022.
The dividend check received from IBM on November 28, 2022, would also be included in the taxpayer's gross income for 2022, even if it was mailed back the next day. The taxpayer's gross income would be increased by the amount of the dividend check. However, if the taxpayer requests additional IBM stock under IBM's dividend reinvestment plan, there would be no immediate effect on the taxpayer's gross income. The value of the additional IBM stock would be included in the taxpayer's gross income when it is eventually sold.
To know more about stock visit:
https://brainly.com/question/31940696
#SPJ11
(Related to Checkpoint 5.7) (Calculating an EAR) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 13 percent compounded semiannually or from a bank at 14 percent compounded daily. Which alternative is more attractive? elated to Checkpoint 5.7) (Calculating an EAR) You have a choice of borrowing money from a finance company at 22 percent compounded weekly or borrowing money from a bank at 22 reent compounded daily. Which alternative is the most attractive? What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother? elated to Checkpoint 5.7) (Calculating an EAR) Based on effective interest rates, would you prefer to deposit your money into Springfield National Bank, which pays 7.5 percent interest mpounded quarterly, or into Burns National Bank, which pays 7.3 percent compounded annually? (Hint: Calculate the EAR on each account.)
The finance company has an EAR of 13.32%, while the bank has an EAR of 15.49%.
To determine which alternative is more attractive in each scenario, we need to calculate the Effective Annual Rate (EAR) for each option.
The EAR allows for an apples-to-apples comparison of interest rates that are compounded differently. Let's calculate the EAR for each situation:
Comparing the finance company and the bank: Finance company: 13% compounded semiannually, Bank: 14% compounded daily.
To calculate the EAR for the finance company: EAR = (1 + r/n)ⁿ - 1
Where: r = annual interest rate (13%), n = number of compounding periods per year
EAR for the finance company: EAR = (1 + 0.13/2)² - 1
= (1.065)² - 1
= 0.133225 or 13.32%
To calculate the EAR for the bank: EAR = (1 + r/n)ⁿ - 1
Where: r = annual interest rate (14%), n = number of compounding periods per year
EAR for the bank: EAR = (1 + 0.14/365)³⁶⁵ - 1
≈ (1.00038356)³⁶⁵ - 1
≈ 0.154897 or 15.49%
Comparing the two options, the finance company has an EAR of 13.32%, while the bank has an EAR of 15.49%. Therefore, borrowing from the finance company is more attractive in this case.
Comparing the finance company and the bank: Finance company: 22% compounded weekly, Bank: 22% compounded daily
To calculate the EAR for the finance company: EAR = (1 + r/n)ⁿ - 1
Where: r = annual interest rate (22%), n = number of compounding periods per year
EAR for the finance company:
EAR = (1 + 0.22/52)⁵² - 1
≈ (1.00423077)⁵² - 1
≈ 0.242661 or 24.27%
To calculate the EAR for the bank: EAR = (1 + r/n)ⁿ - 1
Where: r = annual interest rate (22%), n = number of compounding periods per year
EAR for the bank: EAR = (1 + 0.22/365)³⁶⁵ - 1
≈ (1.00060274)³⁶⁵ - 1
≈ 0.248832 or 24.88%
Comparing the two options, both the finance company and the bank have an EAR of around 24.27% and 24.88%, respectively. Therefore, both options are equally attractive in terms of interest rates.
Comparing Springfield National Bank and Burns National Bank: Springfield National Bank: 7.5% compounded quarterly, Burns National Bank: 7.3% compounded annually
To calculate the EAR for Springfield National Bank: EAR = (1 + r/n)ⁿ - 1
Where: r = annual interest rate (7.5%), n = number of compounding periods per year
EAR for Springfield National Bank: EAR = (1 + 0.075/4)⁴ - 1
≈ (1.01875)⁴ - 1
≈ 0.031551 or 3.16%
To calculate the EAR for Burns National Bank: EAR = (1 + r/n)ⁿ - 1
Where: r = annual interest rate (7.3%), n = number of compounding periods per year
EAR for Burns National Bank: EAR = (1 + 0.073/1)¹ - 1
≈ (1.073)¹ - 1
≈ 0.073 or 7.3%
Comparing the two options, Springfield National Bank has an EAR of 3.16%, while Burns National Bank has an EAR of 7.3%. Therefore, depositing money into Burns National Bank is more attractive in this case.
know more about Effective Annual Rate here
https://brainly.com/question/5442201#
#SPJ11
Sales revenue is ; allocated manufacturing overhead is ; actual manufacturing overhead is ; and cost of goods sold before adjustment is . what is the actual gross profit?
Sales revenues is also refer to as sales income and it can be defined as the total amount of a money that a company generated from the sales of goods or service provided over a given period of time.
What is sales revenue?In calculating sales revenue, every cash inflow into a business from all departments of the business is summed together. when the cost of production is removed, this gives us the profit,
Gross profit can be defined as the amount of money earned by a business after the total cost of production has been removed.
Learn more on sales revenue on https://brainly.com/question/29436143
#SPJ4
Lynda lives in Melbourne, and is a world-famous painter. Her paintings are displayed at exhibitions all around the world, and are very popular with art collectors. Lynda enters into a contract with Taylor, who runs an art gallery. The contract requires Taylor to display Lynda’s paintings in her gallery, and to sell them on Lynda’s behalf. Taylor receives a commission for each painting sold, and Lynda receives the rest of the sale proceeds. The contract requires Taylor to display at least two of Lynda’s paintings in her gallery’s front window at all times. Unfortunately, when renovations lead to a shortage of space in Taylor’s gallery, Lynda’s paintings are displayed on an inside wall of the gallery instead, for six weeks in a row. Lynda tells Taylor that she is terminating the contract, but Taylor insists that their contract should continue. Lynda is concerned that she has lost sales as a result of her paintings not having a prominent place in Taylor’s front window. As a world-famous artist, with an international reputation to protect, she is feeling very distraught and deeply disappointed.
(a) Can Lynda terminate the contract? (b) Assume Lynda has lost sales as a result of Taylor’s breach of contract. Is Lynda entitled to recover damages for her lost profits, and for her distress and hurt feelings?
(a) Whether Lynda can terminate the contract depends on the specific terms and conditions outlined in the contract between Lynda and Taylor.
The contract may contain provisions that address situations where the agreed-upon display requirements cannot be met due to unforeseen circumstances such as renovations. If the contract allows for termination in such cases or if it includes a material breach provision that is triggered by Taylor's failure to display the paintings in the front window, Lynda may have grounds to terminate the contract. It is essential to review the contract carefully to determine the rights and remedies available to both parties. (b) Regarding damages, if it can be proven that Taylor's breach of contract, specifically the failure to display the paintings in the front window, directly resulted in lost sales, Lynda may be entitled to recover damages for her lost profits.
Learn more about display here:
https://brainly.com/question/2525444
#SPJ11
You are advising a nonprofit organization on its fundraising strategy. a. Would you recommend the organization to make monetary contributions public, or not? b. Would you offer some incentives (monetary or non-monetary) to encourage contributions, or not? c. Would you provide information on contributions of other past donors to prospective donors, or not?
a. It is recommended for the nonprofit organization to make monetary contributions public. It will encourage people to donate to the organization since donors often want recognition for their donations. Donors who want to have their donations publicized or to remain anonymous can be given options to choose from.
b. Incentives (monetary or non-monetary) should be offered to encourage contributions. A donor who feels appreciated or gets something in return for their donation is more likely to make additional contributions to the organization.
Examples of incentives could be certificates of appreciation, thank you letters, and recognition at fundraising events.
c. Information on contributions of other past donors to prospective donors should not be provided. This information should remain confidential to avoid any breach of privacy. Donors who wish to remain anonymous should not have their contributions made public without their consent. However, general information about the impact of donations on the organization can be provided to prospective donors to encourage more contributions.
To learn more about "Non-Profit Organization" visit: https://brainly.com/question/29785277
#SPJ11
For this assignment, you will need to record the transactions for a firm in the basic accounting equation (A=L+E). Make sure to label each account accurately, record the amount of the transaction (with the appropriate positive/negative sign), and place each transaction in the appropriate blank. This assignment is worth a total of 25 points with each transaction being worth 2 points. One point will be rewarded for following instructions correctly. 1. You started your company with $80,000 that you raised by selling stock in Practice Makes Perfect Inc. to your family and friends. 2. You purchased three pianos for $16,000 each, paying cash. You believe these pianos will last four years before you replace them. You expect the salvage value to be zero. 3. Knowing that you would need additional funds, you presented your business plan to the bank and were able to get a $60,000 loan at 12%. 4. You spent $2,000 on supplies (inventory), which you charged on account. 5. The newspaper bills you $400 for the advertisement you ran. You plan on paying the bill next month. 6. The first month you bill students $2,000 for lessons. 7. Rent for the space you have leased is $1,000 a month, which you paid. 8. You pay your two part-time piano teachers $500 each at the end of the month. 9. One of your students paid the $200 invoice you sent earlier in the month. 10. You adjust the supplies (inventory) account for $300 of sheet music that you gave to students. 11. You write the check for the interest owed for the month. 12. You record one month of depreciation on the pianos.
The accounting equation is Assets = Liabilities + Equity this means that the total value of a company's assets must equal the total value of its liabilities plus the total value of its equity.
The transactions for a firm in the basic accounting equation (A=L+E)
Transaction 1: Investment in Cash is increased by $80,000 to represent the owner's investment.
Transaction 2: Equipment is increased by $48,000 (3 pianos at $16,000 each). Cash is decreased by $48,000.
Transaction 3: The loan will increase both cash and liabilities. Cash is increased by $60,000. Loan Payable is increased by $60,000 ($60,000 * 12% * 1/12).
Transaction 4: Supplies (Inventory) is increased by $2,000. Accounts Payable is increased by $2,000.
Transaction 5: Advertisement expense is increased by $400. Accounts Payable is increased by $400. The payment will be made in the next month, so the expense is accrued.
Transaction 6: Accounts Receivable is increased by $2,000. Revenue is increased by $2,000.
Transaction 7: Rent expense is increased by $1,000. Cash is decreased by $1,000.
Transaction 8: Wages expense is increased by $1,000. Cash is decreased by $1,000.
Transaction 9: Cash is increased by $200. Accounts Receivable is decreased by $200.
Transaction 10:Revenue is increased by $300. Supplies (Inventory) is decreased by $300.
Transaction 11:Interest expense is increased by $600. Cash is decreased by $600. The interest owed for the month is $60,000 * 12% * 1/12 = $600.
Transaction 12: Depreciation expense is increased by $1,000. Accumulated Depreciation is increased by $1,000. The pianos have a useful life of 4 years and a zero salvage value. One month of depreciation is $48,000/48 = $1,000.
The accounting equation is Assets = Liabilities + Equity. This means that the total value of a company's assets must equal the total value of its liabilities plus the total value of its equity. The transactions listed above all affect the accounting equation in some way.
For example, Transaction 1 increases the value of assets (cash) by $80,000 and increases the value of equity (investment) by $80,000. This keeps the accounting equation balanced.
Transaction 2 increases the value of assets (equipment) by $48,000 and decreases the value of assets (cash) by $48,000. This also keeps the accounting equation balanced.
Transaction 3 increases the value of assets (cash) by $60,000 and increases the value of liabilities (loan payable) by $60,000. This also keeps the accounting equation balanced.
Learn more about Equity with the given link,
https://brainly.com/question/11556132
#SPJ11
Declining labor share in the U.S. economy Question 2.1 Although the labor share of income is a stable quantity over long periods of time, it has declined somewhat in the U.S. over the recent roughly two decades. Go to the FRED database, and search for a suitable time series (for example, try typing 'labor share' into the search box, you will get offered several time series they all show a similar picture) and include it in your problem set. You may actually find that the time series that you find does not show the actual share of GDP but rather an index normalized to 100 for a given year. Assuming that the labor share was on average 2/3 in the 1950 s, what is it equal to now? (I am not looking here for a sophisticated calculation, but rather for a rough assessment by looking at the graph. Question 2.2 Several studies, lately for instance Karabarbounis and Neiman (2014), argue that the decline in labor share during the 2000s and 2010s is a global phenomenon, and propose that the declining cost of capital (low interest rates or rental rates that make capital cheap so that firms substitute toward capital and away from labor) is the main culprit. If this is the case, can we model this phenomenon using our Cobb-Douglas production function? Why or why not?
it is a normalized index and not the actual share of GDP. alternative models that can better capture the substitution of capital for labor are needed.
Question 2.1: Declining labor share in the U.S. economy. Assuming that the labor share was on average 2/3 in the 1950s, the labor share is approximately 56.5% now, looking at the graph from the FRED database.The FRED database time series indicates that the labor share of income has decreased from 63.1% in 2001 to 56.6% in Q1 2020. However, it is a normalized index and not the actual share of GDP.
Question 2.2: Can we model this phenomenon using our Cobb-Douglas production function? Why or why not?Several studies, lately Karabarbounis and Neiman (2014), argue that the decline in labor share during the 2000s and 2010s is a global phenomenon, and suggest that the declining cost of capital is the main culprit.
If this is the case, can we model this phenomenon using our Cobb-Douglas production function?It is impossible to capture the decline in the labor share of income using the Cobb-Douglas production function because it is based on the assumption that labor and capital are perfect substitutes. It does not account for the distinction between labor and capital, as well as their respective income shares.
As a result, if labor and capital are perfect substitutes, the Cobb-Douglas production function generates the same income share for both factors. This is in contrast to the actual declining labor share that is observed in the United States and other developed countries. As a result, alternative models that can better capture the substitution of capital for labor are needed.
To know more about Declining labor here
https://brainly.com/question/32321586
#SPJ11
The labor share of income in the U.S. has declined over the past two decades. It can be estimated by comparing the current level to the average in the 1950s. The decline in labor share is a global phenomenon and is attributed to the declining cost of capital.
Explanation:The labor share of income in the U.S. has declined somewhat over the past two decades. To assess the current labor share, you can look at a graph from the FRED database and make a rough estimation. Assuming the labor share was on average 2/3 in the 1950s, you can compare the current level on the graph to estimate the current labor share. The decline in labor share is not only a U.S. phenomenon, but also a global one.
Several studies suggest that the declining cost of capital is the main reason behind this decline. However, it may not be possible to model this phenomenon using the Cobb-Douglas production function, as it assumes a constant capital-to-labor ratio. The declining cost of capital implies that firms are substituting labor with capital, which challenges the assumptions of the Cobb-Douglas function.
Learn more about Labor Share and Cobb-Douglas Production Function here:https://brainly.com/question/32357864
#SPJ12
Which country was the first to require the audits of
corporations?
a. Spain b. United States C. Japan D. England
The concept of corporate audits originated in England. England is considered the birthplace of modern corporate audits, as it was the first country to introduce the requirement of audits for corporations. (D)
England is recognized as the first country to require the audits of corporations. The roots of corporate audits can be traced back to the United Kingdom's Companies Act of 1844, which mandated that companies submit annual financial statements to the government for review. This act aimed to enhance transparency and accountability in corporate financial reporting. The requirement for independent audits of these financial statements emerged as a means to provide assurance and credibility to stakeholders, including shareholders, investors, and the public.
Since then, the practice of auditing has evolved globally, with countries worldwide adopting similar frameworks and regulations to ensure the accuracy and reliability of corporate financial statements. Auditing plays a crucial role in assessing the fairness and accuracy of financial information, detecting fraud or errors, and providing stakeholders with confidence in the financial health and performance of corporations. The foundation of modern auditing practices can be attributed to England's early recognition of the need for independent oversight of corporate financial reporting.
Learn more about fraud here:
https://brainly.com/question/33138375
#SPJ11
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually)
To prepare the journal entry to record the issuance of the bonds, you would need to credit the Bonds Payable account for the face value of the bonds issued. The entry would also include a credit to any premium or a debit to any discount associated with the bonds.
If there is a premium, you would credit the Premium on Bonds Payable account. This is the difference between the issue price and the face value of the bonds, representing the excess amount paid by the investors.
If there is a discount, you would debit the Discount on Bonds Payable account. This is the difference between the face value of the bonds and the issue price, representing the reduction in the amount paid by the investors.
Additionally, you would debit the Cash account for the total proceeds received from the issuance of the bonds.
The journal entry to record the issuance of the bonds would therefore be:
Dr Cash [amount received]
Cr Bonds Payable [face value]
Cr Premium on Bonds Payable [premium amount] or Dr Discount on Bonds Payable [discount amount]
Learn more about journal entry
https://brainly.com/question/33438461
#SPJ11
A professional golfer, 10 years from planned retirement, plans to invest a fixed amount of e20,000 a month for 5 years to save an amount to be used to lease a private jet over the final 5 years of their career. (i) How much will they have at the end of the initial 5 year period if they earn 10% interest (compounded monthly) on their deposits from a crowd lending site?
what monthly lease payment can the golfer afford over the 5-year lease
period assuming constant withdrawals from the total in (i) with the remainder earning interest at 11%, compounded monthly?
At the end of the initial 5-year period, the professional golfer will have an amount of money that includes the fixed monthly deposits of €20,000 and the interest earned from the crowd lending site.
To calculate the total amount at the end of the 5-year period, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (monthly deposit)
r = annual interest rate (10% or 0.10)
n = number of times interest is compounded per year (12, since it's compounded monthly)
t = number of years (5)
Plugging in the values, we have:
A = 20000(1 + 0.10/12)^(12*5)
A ≈ 20000(1 + 0.008333)^60
A ≈ 20000(1.008333)^60
A ≈ 20000 * 1.64362
A ≈ €328,724.60
Therefore, the professional golfer will have approximately €328,724.60 at the end of the initial 5-year period.
To calculate the monthly lease payment over the 5-year lease period, we need to subtract the lease amount from the total amount and calculate the monthly payment for the remaining amount using the compound interest formula again:
P = A/[(1 + r/n)^(nt) - 1]
Where:
P = monthly lease payment
A = remaining amount after deducting the lease amount from the total (€328,724.60)
r = annual interest rate (11% or 0.11)
n = number of times interest is compounded per year (12, since it's compounded monthly)
t = number of years (5)
Plugging in the values, we have:
P = 328724.60/[(1 + 0.11/12)^(12*5) - 1]
P ≈ 328724.60/(1.008333^60 - 1)
P ≈ 328724.60/(1.64362 - 1)
P ≈ 328724.60/0.64362
P ≈ €510,567.90
Therefore, the professional golfer can afford a monthly lease payment of approximately €510,567.90 over the 5-year lease period.
Learn more about compound interest: https://brainly.com/question/14295570
#SPJ11
The Charlotte County of Fionda charges automobiles $6 for every trip across the Boca Grande Causeway. This charge is an example of a(n) User's fee Transaction-based tax Activity-based tax Excise tax The government of Piate islands imposes a net incone tax on businesses operating witin its junsdiction. The tax equahs 5% of income up to $600,000 and 7% of income in excess of $600,000. Pirates Company generated 5800,000 net income this year Compute the income tax that Pirates Company owes to Pirate istands: $40,000 $44,000 $56,000 None of the above The government of Pirate islands imposes an individual income tax based on the following schedule. PeeDee has $90,000 taxable income. Compute the tax on this income.
$5,100
$3,600
$4,950
None of the choices are correct.
Charlotte County of Flionda charges automobiles $6 for every trip across the Boca Grande Causeway. This charge is an example of a(n) Excise tax.
An excise tax is a tax that is levied on a specific good, service, or activity. The government of Pirate islands imposes a net income tax on businesses operating within its jurisdiction.
The tax equals 5% of income up to $600,000 and 7% of income in excess of $600,000.Pirates Company generated $580,000 net income this year. Compute the income tax that Pirates Company owes to Pirate islands.
Therefore, the income tax that Pirates Company owes to Pirate islands is $40,000 (5% × $600,000) + (7% × ($580,000 − $600,000)) = $30,000 + ($980,000 × 7%) = $30,000 + $68,600 = $98,600 − $58,000 = $40,000
The government of Pirate islands imposes an individual income tax based on the following schedule.PeeDee has $90,000 taxable income. Compute the tax on this income.
The tax on this income is $5,100.
The computation of the tax is as follows
Tax = (0.05 × $50,000) + (0.07 × $30,000) = $2,500 + $2,100 = $4,600Tax = (0.05 × $10,000) + (0.07 × $30,000) = $500 + $2,100 = $2,600Tax = (0.05 × $10,000) + (0.07 × $10,000) = $500 + $700 = $1,200Total tax = $4,600 + $2,600 + $1,200 = $8,400= $5,100
To know more about charge visit:
https://brainly.com/question/13871705
#SPJ11
Group 1 has 40 members and each member has a direct demand of Q1(P1)=260−2P1. Group 2 has 60 members and each member has a direct demand of Q2(P2)=156−2P2. two decimal places. Group 1. Per-unit price: Membership fee: Group 2. Per-unit price: Membership fee: Profits: intermediate values and submit your answers rounded to two decimal places. Hint: you'll need to factor in the membership of the two groups in your profit-maximization problem. Per-unit price: Membership fee:
The per-unit prices are $52.00 for group 1 and $31.
per-unit price: $52.00
membership fee: $2,080.00
per-unit price: $39.00
membership fee: $2,340.00
profits: $6,080.00
to determine the per-unit price and membership fee for each group, we need to maximize profits. the demand functions for group 1 and group 2 are given as:
q1(p1) = 260 - 2p1
q2(p2) = 156 - 2p2
let's find the optimal per-unit prices for both groups. we can do this by setting the marginal revenue equal to marginal cost (mr = mc) for each group. the marginal cost is equal to the per-unit price (p1 or p2) since there are no additional costs mentioned.
for group 1:
mr1 = mc1
260 - 4p1 = p1
260 = 5p1
p1 = 52.00 (per-unit price)
for group 2:
mr2 = mc2
156 - 4p2 = p2
156 = 5p2
p2 = 31.20 (per-unit price)
next, we calculate the membership fees by multiplying the per-unit prices by the number of members in each group.
membership fee for group 1 = 40 * 52.00 = $2,080.00
membership fee for group 2 = 60 * 31.20 = $1,872.00
finally, we add the membership fees to the total revenue to calculate the profits.
profit = membership fee for group 1 + membership fee for group 2 = $2,080.00 + $1,872.00 = $6,080.00. 20 for group 2. the membership fees are $2,080.00 for group 1 and $1,872.00 for group 2. the total profits amount to $6,080.00.
Learn more about revenue here:
https://brainly.com/question/14952769
#SPJ11
Suppose that Greece and Germany both produce jeans and cheese. Greece's opportunity cost of producing a pound of cheese is 4 pairs of jeans while Germany's opportunity cost of producing a pound of cheese is 9 pairs of jeans. By comparing the opportunity cost of producing cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and has a comparative advantage in the production of jeans. Suppose that Greece and Germany consider trading cheese and jeans with each other. Greece can gain from specialization and trade as long as it receives more than of jeans for each pound of cheese it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than cheese for each pair of jeans it exports to Greece. Based on your answer to the last question, which of the following terms of trade (that is, price of cheese in terms of jeans) would allow both Germany and Greece to gain from trade? Check all that apply. 5 pairs of jeans per pound of cheese 3 pairs of jeans per pound of cheese 1 pair of jeans per pound of cheese 6 pairs of jeans per pound of cheese
In this scenario, Greece has a comparative advantage in the production of cheese, and Germany has a comparative advantage in the production of jeans. In order for both Greece and Germany to gain from trade, they must agree to a mutually beneficial exchange rate.
For Greece to gain from trade, it must receive more than 4 pairs of jeans for every pound of cheese it exports to Germany. For Germany to gain from trade, it must receive more than 9 pairs of jeans for every pound of cheese it exports to Greece.
Here the following terms of trade would allow both Germany and Greece to gain from trade:3 pairs of jeans per pound of cheese6 pairs of jeans per pound of cheese The term of trade of 3 pairs of jeans per pound of cheese would be beneficial to Greece because it is greater than Greece's opportunity cost of 4 pairs of jeans per pound of cheese.
To know more about pairs visit:
https://brainly.com/question/31875891
#SPJ11
"Banks are typically exposed to interest rate risk in both their trading book and banking book."
Define banks' trading book and banking book, and explain the above statement in approximately 200 words.
In the banking industry, banks manage their assets and liabilities in two main books: the trading book and the banking book.
The trading book consists of financial instruments held by the bank for the purpose of short-term trading activities, such as buying and selling securities, derivatives, and other marketable instruments. These assets are actively traded with the intention of making profits from short-term price movements. The trading book is marked-to-market regularly, reflecting changes in the fair value of the instruments.
On the other hand, the banking book comprises assets and liabilities that are held by the bank for longer-term investment and banking activities. This includes loans, deposits, mortgages, and other financial instruments that generate interest income over the long term. The banking book is usually held to maturity and is accounted for using accrual accounting methods.
The statement that banks are exposed to interest rate risk in both their trading book and banking book refers to the fact that changes in interest rates can impact the value of assets and liabilities in both books. In the trading book, interest rate movements can affect the market value of securities and derivatives held by the bank, leading to gains or losses. In the banking book, changes in interest rates can influence the profitability of loans and deposits, as well as the overall net interest income of the bank. Therefore, banks need to carefully manage their exposure to interest rate risk in both books to ensure their financial stability and profitability.
Learn more about deposits here:
https://brainly.com/question/1438257
#SPJ11
A consortium of local and international buyers is considering a takeover of GoGet Corp., an allequity driverless vehicle company with EBITDA in the most recent reporting period of $135 million. The table below summarises key points of previous deals ( 100% equity financed). The value of GoGet Corp. using the comparable transactions average EBITDA multiple is closest to: $290 m $300 m $240 m $310 m $250 m
To determine the value of GoGet Corp. using the comparable transactions average EBITDA multiple,
we need to calculate the average EBITDA multiple from the previous deals and apply it to the EBITDA of GoGet Corp.
From the table, we can see that the average EBITDA
multiple of the previous deals is 2.4x (240% of EBITDA).
To calculate the value of GoGet Corp., we multiply its EBITDA
($135 million) by the average EBITDA multiple (2.4x):
Value of GoGet Corp. = EBITDA x EBITDA multiple
Value of GoGet Corp. = $135 million x 2.4
Value of GoGet Corp. = $324 million
The value of GoGet Corp. using the comparable transactions average EBITDA
multiple is closest to $324 million. Therefore, none of the given options are correct.
To know more about average visit:
https://brainly.com/question/27646993
#SPJ11
Neveready Flashlights Inc. needs $302,000 to take a cash discount of 2/19, net 71. A banker will loan the money for 52 days at an interest cost of $11,800.
a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. How much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 71 days instead of 19 days? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. Should the firm borrow the money to take the discount?
multiple choice 1
No
Yes
d. If the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $302,000?
e-1. What would be the effective interest rate in part d if the interest charge for 52 days were $11,300? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
e-2. Should the firm borrow with the 20 percent compensating balance requirement? (The firm has no funds to count against the compensating balance requirement.)
According to the question a. effective rate on the bank loan is 10.66% , b. the cost of forgoing the discount 78.95% , c. Yes , d. the loan amount $377,500 , e-1. the effective rate 2.07% , e-2. Yes.
Here are the calculations for each part:
a. The effective rate on the bank loan can be calculated using the formula: [tex]\(\text{{Effective Rate}}[/tex] = [tex]\left(\frac{{\text{{Interest Cost}}}}{{\text{{Loan Amount}}}}\right) \times \left(\frac{{360}}{{\text{{Days of Loan}}}}\right)\)[/tex].
Plugging in the values, the effective rate on the bank loan is: [tex]\(\left(\frac{{11,800}}{{302,000}}\right) \times \left(\frac{{360}}{{52}}\right) = 0.1537 \times 6.9231 = 10.66\%.[/tex]
b. To calculate the cost if the firm did not take the cash discount but paid the bill in 71 days instead of 19 days, we can use the formula:[tex]\(\text{{Cost of Forgoing Discount}}[/tex] = [tex]\left(\frac{{\text{{Discount}}}}{{1 - \text{{Discount}}}}\right) \times \left(\frac{{360}}{{\text{{Days of Credit}} - \text{{Days of Discount}}}}\right)\)[/tex].
Plugging in the values, the cost of forgoing the discount is: [tex]\(\left(\frac{{2/19}}{{1 - 2/19}}\right) \times \left(\frac{{360}}{{71 - 19}}\right) = 0.1053 \times 7.5 = 0.7895 = 78.95\%.[/tex]
c. Should the firm borrow the money to take the discount? Since the effective rate on the bank loan is 10.66% and the cost of forgoing the discount is 78.95%, it is more cost-effective for the firm to borrow the money and take the discount. Therefore, the answer is Yes.
d. To calculate the amount the firm must borrow to end up with [tex]\$302,000[/tex], we can use the formula: [tex]\(\text{{Loan Amount}} = \frac{{\text{{Desired Amount}}}}{{1 - \text{{Compensating Balance}}}}\).[/tex]
Plugging in the values, the loan amount is: [tex]\$302,000 / (1 - 0.20) = \$302,000 / 0.80 = \$377,500.[/tex]
e-1. To calculate the effective interest rate in part d with an interest charge of [tex]\$11,300[/tex] for 52 days, we can use the same formula as in part a. Plugging in the values, the effective rate is: [tex]\(\left(\frac{{11,300}}{{377,500}}\right) \times \left(\frac{{360}}{{52}}\right) = 0.0299 \times 6.9231 = 2.07\%.[/tex]
e-2. Should the firm borrow with the 20 percent compensating balance requirement? Since the effective interest rate in part e-1 is [tex]2.07\%[/tex], which is lower than the effective rate on the bank loan [tex](10.66\%),[/tex] it would be more cost-effective for the firm to borrow with the 20 percent compensating balance requirement. Therefore, the answer is Yes.
To know more about loan visit -
brainly.com/question/32734255
#SPJ11
Luigui Casiraghi´s company. sells a specific automotive motor filter for cars. For quantities up through 100, the firm charges $400 per filter; for quantities between 101 and 200, it charges $300 for each filter purchased; and it charges $200 each for the additional quantities over 200 filters. So many car shops expect to require these motor filters for the next 5 years at a rate of least 400 filters every 15 days. Order set up costs is $250 and holding costs are based on a 45 percent annual interest rate. What should be the size of the standing order and total cost by using incremental discounts? Assume that there is a uniform demand and you have 26 periods of 15 days per year.
The size of the standing order should be 200 filters, and the total cost using incremental discounts would be $60,000.
To determine the optimal order quantity and total cost, we need to consider the incremental discount pricing and the costs associated with ordering and holding inventory. Since the demand is 400 filters every 15 days for 26 periods per year, the total annual demand is 400 * 26 = 10,400 filters.
Based on the pricing structure, the first 100 filters cost $400 each, the next 100 filters cost $300 each, and any additional filters beyond 200 cost $200 each. To minimize costs, we want to take advantage of the lower price tiers as much as possible.
With a standing order size of 200 filters, we can cover the demand for each 15-day period. This allows us to purchase the first 100 filters at $400 each and the next 100 filters at $300 each. The total cost for the standing order would be (100 * $400) + (100 * $300) = $40,000 + $30,000 = $70,000.
However, since the demand is for 400 filters every 15 days, there will be excess inventory. To calculate the holding cost, we need to determine the average inventory level. The average inventory is (200 filters / 2) = 100 filters. The holding cost is calculated by multiplying the average inventory by the holding cost per filter and the holding period. The holding cost per filter is $200 * 0.45 = $90 per year. The holding period is 26 periods per year * 15 days per period = 390 days. The holding cost would be 100 filters * $90 per filter * (390 / 365) = $9,726.
Therefore, the total cost using incremental discounts would be the sum of the standing order cost and the holding cost, which is $70,000 + $9,726 = $79,726.
Learn more about incremental discounts from the given link: https://brainly.com/question/32281590
#SPJ11
