When there is excess capacity, an analysis of a special order typically includes fixed costs. Excess capacity refers to the situation where a company's existing production capabilities are not fully utilized, meaning there is additional capacity available to produce more goods or services without incurring significant additional costs.
Including fixed costs in the analysis of a special order is important because fixed costs are incurred regardless of the level of production. These costs include expenses such as rent, salaries, utilities, and depreciation. By considering fixed costs, a company can assess the impact of taking on a special order on its overall profitability.
Excluding fixed costs in the analysis would not provide a complete picture of the financial implications of accepting a special order. It would overlook the fact that fixed costs are already being incurred and should be allocated to the production, even if there is excess capacity.
Including all costs, including variable costs and fixed costs, provides a comprehensive evaluation of the financial impact of the special order. It takes into account the incremental costs associated with producing the additional units required by the special order, as well as the ongoing fixed costs that are part of the company's regular operations.
Opportunity costs, on the other hand, refer to the potential benefit that is foregone by choosing one option over an alternative. While opportunity costs are an important consideration in decision-making, they may not directly apply to the analysis of a special order with excess capacity, as the decision to accept the special order would not typically involve sacrificing another opportunity.
In summary, when analyzing a special order in a situation of excess capacity, it is common to include fixed costs along with variable costs to determine the impact on overall profitability and make an informed decision.
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Pink Rose and Merrily compete in the cosmetics industry. The consumers’ net perceived benefit as a function of product quality (q) and price (p) in this market is described by the equation below: Customer’s Net Benefit (CNB) = 10q p 2 a. Find the combinations of price and quality that give Pink Rose’s customers a net perceived benefit of 5 and represent them graphically in a Value Map. (5 points) b. Merrily sets its quality for its new perfume equal to £100 and its price equal to £75. If Pink Rose sets its price for its corresponding product equal to £90, how much does it need to set its quality in order to generate more perceived benefit to customers than Merrily? (10 points) c. Suppose that the cost per unit of producing a perfume as a function of its quality for the two companies is described by the following equations. Also suppose that there are no fixed costs. Po(Po) = 3(Po)^2 y(y) = 6(y) ^2 Write down Pink Rose’s profit as a function of its own quality for perfumes (Po) and of the strategic positioning of Merrily (y, py) so that Pink Rose maintains cost advantage over Merrily
a. To find the combinations of price and quality that give Pink Rose's customers a net perceived benefit of 5, we need to solve the equation:
Customer's Net Benefit (CNB) = 10q p^2
Given that the net perceived benefit (CNB) is 5, we can substitute it into the equation:
5 = 10q p^2
To represent this graphically in a Value Map, we can create a 2D plot with the x-axis representing quality (q) and the y-axis representing price (p). The combinations of price and quality that give a net perceived benefit of 5 will form a curve in the plot.
b. Merrily sets its quality (q) for its new perfume equal to £100 and its price (p) equal to £75. Pink Rose sets its price (p) for its corresponding product equal to £90. We need to find the quality (q) that Pink Rose needs to set in order to generate more perceived benefit to customers than Merrily.
We can set up the equation using the Customer's Net Benefit (CNB) formula:
CNB Pink Rose > CNB Merrily
10q Pink Rose p^2 Pink Rose > 10q Merrily p^2 Merrily
Substituting the given values:
10q Pink Rose (90)^2 > 10(100) (75)^2
Simplifying:
8100q Pink Rose > 75000
Dividing both sides by 8100:
q Pink Rose > 9.26
Therefore, Pink Rose needs to set its quality (q) greater than 9.26 to generate more perceived benefit to customers than Merrily.
c. Pink Rose's profit can be calculated as the difference between its revenue and cost. The cost per unit of producing a perfume for Pink Rose is described by the equation:
Cost Pink Rose = 3(Po)^2
The revenue for Pink Rose can be calculated as the difference between the price (p) and the cost:
Revenue Pink Rose = p - Cost Pink Rose
Substituting the cost equation:
Revenue Pink Rose = p - 3(Po)^2
The strategic positioning of Merrily is described by the variables (y, py), where y represents Merrily's quality and py represents Merrily's price. The cost per unit of producing a perfume for Merrily is described by the equation:
Cost Merrily = 6(y)^2
Therefore, Pink Rose's profit as a function of its own quality (Po) and the strategic positioning of Merrily (y, py) can be written as:
Profit Pink Rose = Revenue Pink Rose - Cost Pink Rose
= p - 3(Po)^2 - Cost Merrily
= p - 3(Po)^2 - 6(y)^2
This equation represents Pink Rose's profit, taking into account its own quality and the strategic positioning of Merrily, while maintaining a cost advantage over Merrily.
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Chapter 5: Applying Excel: Exercise (Part 2 of 2) 2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to \( \$ 390.000 \), keeping all of the other data
To use the “Goal Seek” function in Excel to change the total fixed manufacturing overhead cost for the Milling Department back to $390,000 while keeping all of the other data.
To change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data, follow these steps:
Click on the “Data” tab in the menu bar.
Select the “What-If Analysis” drop-down arrow.
Choose “Goal Seek”
In the “Set cell” box, enter the cell reference for the “Total manufacturing overhead cost” in the “Milling Department” row
In the “To value” box, enter the new total fixed manufacturing overhead cost of $390,000Step 6: In the “By changing cell” box, enter the cell reference for the “Fixed manufacturing overhead cost per unit” in the “Milling Department” row
Click “OK”The new value for the “Fixed manufacturing overhead cost per unit” will be calculated, based on the new total fixed manufacturing overhead cost of $390,000.
To use the “Goal Seek” function in Excel to change the total fixed manufacturing overhead cost for the Milling Department back to $390,000 while keeping all of the other data.
In conclusion, the “Goal Seek” function in Excel is a powerful tool that allows users to solve complex problems quickly and efficiently. By following the steps outlined above, users can change the value of a cell based on a desired outcome, making it easier to analyze and manipulate data in a spreadsheet.
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Which conflict management approach would you like to master? Why?( competitive, Accommodate, sharing, collaborative,and Avoidant style) (Select an approach that differs from your(Accommodate style) assessment results).
Collaborative conflict management style is the best approach for me to master as it promotes cooperation, creativity, and communication among team members.
Conflict management is a key leadership skill. It is crucial to the success of any group, team, or organization. Conflict management approach is the technique used by individuals to handle disagreements or conflicts in the workplace. The five conflict management styles are competitive, accommodate, sharing, collaborative, and Avoidant style.
In my assessment results, I was found to be an accommodating style. Therefore, I would like to master the Collaborative style. The reason for my choice is that it offers the best solution to the problem at hand, and it encourages cooperation and creativity among team members.
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Standard Cost Journal Entries Bellingham Company produced 2,300 units that require 16 standard pounds per unit at a $10 standard price per pound. The company actually used 35,300 pounds in production. Joumalize the entry to record the standard direct materials used in production. If an amount box does not require an entry, leave it blank.
We don't need to calculate them in this problem.
Given: Standard pounds per unit = 16
Standard price per pound = $10
Actual direct materials used in production = 35,300 pounds
To journalize the entry to record the standard direct materials used in production, we need to calculate the standard quantity allowed for the actual output, which is calculated as follows:
Standard Quantity Allowed = Standard Quantity per Unit x Actual Output
Standard Quantity Allowed = 16 pounds x 2,300 units
Standard Quantity Allowed = 36,800 pounds
Therefore, the standard quantity allowed for the actual output is 36,800 pounds.
Now, we can calculate the standard cost of direct materials using the standard quantity allowed and the standard price per pound.
Standard Cost of Direct Materials = Standard Quantity Allowed x Standard Price per Pound
Standard Cost of Direct Materials = 36,800 pounds x $10
Standard Cost of Direct Materials = $368,000
Journal entry to record the standard direct materials used in production:
Accounts
Debit
Credit
Raw Materials Inventory
$368,000
Direct Materials Price VarianceDirect Materials Quantity Variance$368,000
Total$368,000 $368,000
Note: In the journal entry, the two variances are used to balance the journal entry, and their amounts are equal to zero.
Therefore, we don't need to calculate them in this problem.
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Using the Internet, find a mission statement for a nonprofit that interests you. What do you like about the mission statement? Is there a link between the mission and the money in the mission statement? How would you modify that mission statement to provide a link to the money? Discuss what strategies you would propose to finance the nonprofit’s mission.
One of the main missions of a nonprofit is to provide assistance and support to people in need. In order to accomplish this, a clear and concise mission statement is necessary. This statement should be no more than three lines in length and should clearly explain what the organization is trying to achieve and how they plan to do it.
A great example of a nonprofit mission statement is from the American Red Cross: "The American Red Cross prevents and alleviates human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors." What I like about this mission statement is that it is simple, clear, and to the point. It clearly outlines the purpose of the organization and the methods they use to achieve their goals.
In terms of the link between the mission and the money in the mission statement, the American Red Cross mission statement is clear about the fact that they rely on the generosity of donors. This means that there is a clear link between the mission and the money.
However, if I were to modify this mission statement to provide a more explicit link between the two, I would suggest adding a sentence that states something like "We believe that by providing assistance and support to people in need, we can make a positive difference in the world, and we rely on the generosity of our donors to help us achieve this goal."To finance the nonprofit's mission, I would propose a number of different strategies. One strategy would be to seek out corporate sponsorships or partnerships.
This could involve approaching companies that share the same values and goals as the nonprofit and asking them to provide financial support. Another strategy would be to host fundraising events, such as charity auctions, benefit concerts, or golf tournaments. Additionally, the nonprofit could establish a membership program where supporters can make monthly or annual donations to help fund the organization's activities.
In conclusion, a clear and concise mission statement is essential for any nonprofit organization. The statement should be no more than three lines in length and should clearly explain what the organization is trying to achieve and how they plan to do it.
In terms of financing the nonprofit's mission, there are a number of different strategies that can be used, including seeking out corporate sponsorships, hosting fundraising events, and establishing a membership program.
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Compared to a conventional building, a green building project and construction budget will also include:
A. Costs to implement erosion control plans B. Life cycle costing C. Soft costs D. Fees to review local laws and standards
Compared to a conventional building, a green building project and construction budget will also include costs to implement erosion control plans and life cycle costing.
These costs are necessary to ensure compliance with environmental regulations and minimize ecological disturbances during construction.
A. Costs to implement erosion control plans: Green building projects prioritize environmental sustainability and often involve measures to minimize soil erosion and environmental impact during construction. The budget will include expenses related to implementing erosion control plans, such as erosion control materials, erosion control devices, or specialized construction techniques.
B. Life cycle costing: Green building projects take into account the long-term costs and benefits associated with the building's entire life cycle. This includes not only the initial construction costs but also the operating and maintenance expenses over the building's lifespan. Life cycle costing considers factors such as energy efficiency, durability, maintenance requirements, and potential savings in operational costs. By incorporating life cycle costing, green building projects aim to optimize sustainability and cost-effectiveness throughout the building's lifespan.
C. Soft costs: Soft costs refer to expenses that are not directly related to physical construction but are essential for project implementation. In the context of green building projects, soft costs can include expenses for green building certification or accreditation, hiring sustainability consultants or experts, conducting environmental assessments, and additional design and planning efforts specific to sustainable building practices.
D. Fees to review local laws and standards: Green building projects often need to comply with specific local laws, regulations, and building codes that promote sustainable construction practices. The budget will include fees associated with reviewing project plans, obtaining permits, and ensuring compliance with these regulations. These fees cover the necessary assessments, inspections, and certifications required by local authorities to ensure the green building project meets the required sustainability standards.
In summary, a green building project and construction budget will include costs for implementing erosion control plans, considerations for life cycle costing, soft costs associated with sustainable practices, and fees to review local laws and standards.
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All other elements being equal, a taxpayer with a marginal tax rate of 28% should invest in a taxable corporate bond earning 6.2% rather than a tax-free municipal bond earning 4%. a) True b) False Question 6 Tax deductions have the same value to all taxpayers. a) True b) False
The given statement is true. All other elements being equal, a taxpayer with a marginal tax rate of 28% should invest in a taxable corporate bond earning 6.2% rather than a tax-free municipal bond earning 4%.
The statement is true as the tax implications should be taken into account while choosing between a taxable corporate bond and a tax-free municipal bond. Corporate bonds are taxable while municipal bonds are not. Therefore, a taxpayer should invest in a taxable corporate bond that has a higher yield as compared to a tax-free municipal bond that has a lower yield but higher tax implications.The value of tax deductions may vary among taxpayers depending on their marginal tax rate.
The value of tax deductions is directly proportional to the marginal tax rate of the taxpayer, meaning the higher the marginal tax rate of the taxpayer, the more valuable the tax deductions will be for them. Thus, the given statement is false.
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In moving from a shortage toward the market equilibrium, which of the following is true?
a. price falls
b. price rises
c. quantity demanded increases
d. quantity supplied decreases
b. price rises
In moving from a shortage (where quantity demanded exceeds quantity supplied) toward the market equilibrium, the price tends to rise. increase in price encourages suppliers to produce more, thereby increasing the quantity supplied.
At the same time, the higher price discourages some buyers from purchasing, leading to a decrease in quantity demanded. Through these adjustments, the market moves closer to equilibrium, where quantity demanded equals quantity supplied.When there is a shortage in the market, it means that the quantity demanded by buyers exceeds the quantity supplied by sellers at the prevailing price. In this situation, buyers are willing to purchase more goods or services than what is available in the market.
To address the shortage and move towards market equilibrium, several adjustments occur. One key adjustment is the change in price. As the shortage indicates excess demand, sellers have the opportunity to increase prices. By raising the price, suppliers aim to balance the market by reducing the quantity demanded and incentivizing an increase in the quantity supplied.
As the price rises, some buyers may be discouraged from purchasing the goods or services due to the higher cost. This decrease in quantity demanded helps alleviate the shortage by bringing it closer to equilibrium. Simultaneously, the higher price motivates suppliers to produce and offer more in the market, leading to an increase in the quantity supplied.
The interplay between changes in price, quantity demanded, and quantity supplied continues until the market reaches equilibrium. At equilibrium, the quantity demanded matches the quantity supplied, resulting in a balanced market where there is neither a shortage nor a surplus.
In summary, when moving from a shortage towards market equilibrium, the price tends to rise as it serves to reduce the quantity demanded and encourage an increase in the quantity supplied.
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answer this in 10 min with full explanation
pls
Q4) Vanessa purchases a retirement annuity that will pay her \( \$ 1,000 \) at the end of every six months for the first nine years and \( \$ 600 \) at the end of every month for the next five years.
Vanessa will receive $144,000 from her retirement annuity.
Let's solve the problem step by step:
Given that Vanessa purchases a retirement annuity that will pay her $1000 at the end of every six months for the first nine years and $600 at the end of every month for the next five years.
Total number of payments for first nine years in months = 9 years * 12 months/year * 1 payment/month = 108
Total number of payments for next five years in months = 5 years * 12 months/year * 1 payment/month = 60
So, Total payments in first nine years = $1000 * 108 = $108,000
Total payments in next five years = $600 * 60 = $36,000
Total payments in full = $108,000 + $36,000 = $144,000
Hence, Vanessa will receive $144,000 from her retirement annuity.
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what is the minimum amount of time it would take a photon of light from jupiter to reach earth? see the visual reference for help. minutes
32.7 minutes. The minimum amount of time it would take a photon of light from Jupiter to reach Earth varies depending on the relative positions of the two planets in their orbits around the Sun.
On average, the distance between Jupiter and Earth is about 588 million kilometers (365 million miles). The speed of light in a vacuum is approximately 299,792 kilometers per second (186,282 miles per second).
Using these values, we can calculate the minimum time it would take for light to travel from Jupiter to Earth:
Time = Distance / Speed
Time = 588,000,000 km / 299,792 km/s
Time ≈ 1,961 seconds or approximately 32.7 minutes.
So, it would take around 32.7 minutes for a photon of light from Jupiter to reach Earth when the two planets are at their closest distance. However, please note that this is just an average value and the actual time can vary depending on the specific positions of Jupiter and Earth in their respective orbits.
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If the elasticity of demand is \( -2 \) and the marginal cost is \( \$ 5.00 \), find the price the firm will charge. . Type in \( \$ \) format, like \( \$ 1.00 \)
Price the firm will chargeA firm determines the price based on the intersection of its marginal cost (MC) and marginal revenue (MR) curves. Profit is maximized where MC = MR.
The equation for price elasticity of demand is given as:[tex]\varepsilon_{p} =\frac{\% \Delta Q_{d}}{\% \Delta P}[/tex]Where:\[\varepsilon_{p}\] is the price elasticity of demand\[\% \Delta Q_{d}\] is the percentage change in quantity demanded\[\% \Delta P\] is the percentage change in priceFor a price elasticity of demand of -2, this means that for every 1% change in price, the quantity demanded will change by 2%.
If the firm's marginal cost is $5.00, then it can determine the price that maximizes its profit by finding the intersection of its marginal cost and marginal revenue curves.However, since the demand curve is a straight line, the marginal revenue curve is also a straight line with the same slope but with twice the y-intercept. Thus, the price that the firm will charge is given by:P = MC / (1 + 1/ \[\varepsilon_{p}\])\[P = 5 / (1 + 1/-2)\]P = $3.33Thus, the firm will charge $3.33.
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Based on the following information, how much is the amount that would be paid on May 30? Invoice Date May 21 List Price P90,000 Trade Discounts = 10%-5% Credit Terms= 2/10, n/30
The amount that would be paid on May 30 is P80,100. This is because of the trade discounts and credit terms. The net amount due within the discount period is P80,100.
The trade discount is 10% - 5% = 5%. The net price is the list price minus the trade discount = P90,000 x (1 - 5%) = P85,500. This is the amount due if the payment is made after the discount period. Since the credit terms are 2/10, n/30, the buyer can get a 2% discount if payment is made within 10 days. The amount due if the payment is made within the discount period is P85,500 x (1 - 2%) = P80,100.
When computing the amount that would be paid on May 30 based on the given information, it is important to consider the trade discounts and credit terms. The trade discount is 10%-5% = 5%, which means that the net price is P90,000 x (1-5%) = P85,500.
However, if the payment is made within the discount period of 10 days, the buyer can avail of a 2% discount. Therefore, the amount due would be P85,500 x (1-2%) = P80,100. This means that the net amount due within the discount period is P80,100.
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When a nation’s economy expands its involvement with
international trade, the total number of jobs in the economy
usually declines. Is this statement true or false? Briefly
explain.
International trade involvement can lead to job gains or losses, depending on factors like comparative advantage, industry structure, and labor market dynamics.
The impact of expanding involvement in international trade on the total number of jobs in an economy is not uniformly negative.
While some jobs may be displaced or lost due to increased competition from imports, there are also potential job gains from increased exports and the growth of industries that benefit from international trade.
When a nation engages in international trade, it can specialize in producing goods or services in which it has a comparative advantage. This specialization can lead to increased productivity and competitiveness, ultimately leading to job creation in those sectors.
Additionally, exporting industries can experience growth, generating employment opportunities. Moreover, increased trade can stimulate economic growth, leading to higher consumer demand and creating additional jobs in sectors such as retail, transportation, and logistics.
However, it is important to note that the impact of international trade on employment can vary across industries and regions. Industries that face strong competition from imports may experience job losses, particularly if they are unable to adapt to changing market conditions.
Additionally, certain segments of the workforce may be more affected than others, depending on their skills and the sectors they work in.
Therefore, while international trade can have both positive and negative effects on employment, it is inaccurate to claim that the total number of jobs in the economy usually declines when a nation's involvement with international trade expands.
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mpte depreclation ander p9-2A In recent years, Freeman Transportation purchased three used buses, Because of rent methods. frequent tumover in the accounting department, ar different accountant select
Freeman Transportation should adopt the MPTE depreciation method since it will provide the company with a greater tax saving in the early years of the buses' depreciation
Based on the given question, it seems to be incomplete. However, I'll try to answer the question as best as I can and hope it helps. What can be understood from the given question is that Freeman Transportation purchased three used buses and there is frequent turnover in the accounting department. Due to this, different accountants selected different depreciation methods and have adopted the wrong one. In order to solve this problem, the correct depreciation method for the company should be used that would not only benefit the company in the present but also in the long run.
Since different accountants have selected different depreciation methods, it is recommended to adopt a depreciation method that would not only benefit the company in the short term but also in the long term. The MPTE (Modified Accelerated Cost Recovery System (MACRS) Percentage Tables) depreciation method can be used as it is beneficial for a company like Freeman Transportation, which deals with transportation services. This method allows taxpayers to write off a greater portion of the cost of property in the first few years of use when the property depreciates faster. The MPTE method is a highly recommended method for companies that use transportation equipment since it allows a greater depreciation expense deduction in the early years and less in the later years.
MPTE is a highly recommended depreciation method as it allows a greater depreciation expense deduction in the early years and less in the later years. Since Freeman Transportation has purchased three used buses, it would be wise to adopt the MPTE method as it is perfect for transportation equipment. The MPTE method can help the company in the present and the long run as it will provide them with greater tax savings in the early years, which is when the buses will depreciate the most. By adopting the correct depreciation method, the company can save a lot of money in the long term.
Freeman Transportation should adopt the MPTE depreciation method since it will provide the company with a greater tax saving in the early years of the buses' depreciation. Although there has been frequent turnover in the accounting department, this should not affect the company's financial well-being. By selecting the right depreciation method, the company can save a lot of money in the long run. Therefore, the MPTE method is recommended for the company, which deals with transportation services.
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Question 11 (2 points) Suppose that TestBank has the following simplified balance sheet: Assets Reserves $4,000 Loans $16,000 Securities $20,000 Assume that the reserve ratio (r) = 0.2. $800 What is t
The reserve ratio is the percentage of bank deposits that are required to be held by the bank either in cash or on deposit with the central bank.
A bank's excess reserves are the funds that are held in reserve above the required level of reserve and can be used to make loans.In the above situation, the reserve ratio is 0.2 or 20%.The required reserves for Test Bank will be 20% of its total deposits.
The total deposits of Test Bank can be calculated as follows:
Total deposits = Reserves + Loans + Securities = $4,000 + $16,000 + $20,000 = $40,000
The required reserves for Test Bank will be 20% of $40,000, which is:$40,000 x 0.2 = $8,000
The excess reserves of Test Bank will be its total reserves minus the required reserves.
The excess reserves of Test Bank can be calculated as:$4,000 - $8,000 = -$4,000
The negative excess reserves imply that Test Bank does not have enough reserves to meet the required reserves.
In such a scenario, Test Bank may be required to borrow funds from other banks or from the central bank to meet the required reserves.
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Greg's Beer Garden sells very expensive luxury beer and when the market is doing well, stock traders will come to Greg's and buy his expensive beer in large quantities, but when the market is doing badly, Greg can't sell any beer. Greg's Beer Garden went public a few years ago, what would you estimate the Beta is? Less than 1 1 Greater than 1 Rick is part of an unusual bank, he comes in each quarter and spins a wheel to determine the amount of interest he will earn that quarter between 0 and 4%. Last year, he spun the wheel and received quarterly interest of 2%, then 3%, then 0%, then 4%. What was the total EAR of Rick's account last year? Choose the closest. 9.0% 9.3% 10.1% 11.2%
The closest option is 9.3%. 1. Greg's Beer Garden sells very expensive luxury beer and when the market is doing well, stock traders will come to Greg's and buy his expensive beer in large quantities, but when the market is doing badly, Greg can't sell any beer. Greg's Beer Garden went public a few years ago, Less than 1 1 Greater than 1Solution:Beta is the measure of systematic risk.
Systematic risk is the risk inherent to the entire market or an entire market segment. Systematic risk therefore, cannot be mitigated or eliminated through diversification.Beta greater than 1 indicates that the security is more volatile than the market and vice versa.Beta is used in the capital asset pricing model (CAPM) to calculate the required rate of return of an asset or portfolio.
[tex]β = Cov (r_a,r_m) / σ^2(r_m)Cov (r_a,r_m)[/tex] is the covariance between the return of the asset and the return of the market portfolio, σ^2(r_m) is the variance of the market portfolio. Risk-free rate = 2%, Market return = 10%, r_a = 14%2. Rick is part of an unusual bank, he comes in each quarter and spins a wheel to determine the amount of interest he will earn that quarter between 0 and 4%.
Last year, he spun the wheel and received quarterly interest of 2%, then 3%, then 0%, then 4%. Choose the closest. 9.0% 9.3% 10.1% 11.2% Solution: The Effective Annual Rate (EAR) is the rate of interest actually earned on an investment or paid on a loan as a result of compounding the interest over a year. Rick earned quarterly interest of 2%, then 3%, then 0%, then 4%.Rick's quarterly rate can be computed using
EAR equation[tex]EAR = (1 + APR/m)^m - 1[/tex]
where APR is the annual percentage rate, m is the number of compounding periods per year
[tex]EAR1 = (1 + 2%)^4 - 1[/tex]
= 8.24%EAR2
[tex]= (1 + 3%)^4 - 1[/tex]
= 12.55%EAR3
[tex]= (1 + 0%)^4 - 1[/tex]
= 0%EAR4
[tex]= (1 + 4%)^4 - 1[/tex]
= 17.02%Total EAR of Rick's account last year
= EAR1 + EAR2 + EAR3 + EAR4
= 8.24% + 12.55% + 0% + 17.02%
= 37.81% EAR.
Convert EAR to APRAPR
[tex]= (1 + EAR)^(1/4) - 1APR[/tex]
[tex]= (1 + 37.81%)^(1/4) - 1[/tex]
= 9.32% EAR.
Hence the closest option is 9.3%.
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a. Fill in the blanks in columns (1) reflecting the complete effect of all excess reserves being loaned out. b. The maximum possible increase in the money supply is $ c. Returning to the original balance sheet, if the target reserve ratio changes to 10%, the quantity of loans the system be forced to call in will be $ Write in the figures in columns (2) that show this process completed.
a. The following table represents the balance sheet of a bank showing the effect of the loan made by the bank after all excess reserves have been loaned out: The money supply will increase by a maximum of $900 (i.e., $90/.10).
To understand this concept, we need to keep in mind that the money supply is generated by the lending of money by the banks. The money multiplier is the ratio of the money supply to the monetary base. The monetary base is also called high-powered money, which is the sum of the currency in circulation and bank reserves.
= 1/Required Reserve Ratio. The required reserve ratio is the percentage of deposits that banks must keep as reserves. Thus, if the required reserve ratio is 10%, banks can lend 90% of their deposits. The money multiplier can be calculated as follows: Money Multiplier
= 1/0.10
= 10.The money supply is given by the formula: Money Supply
= Money Multiplier × Monetary Base.
= 10 × $100
= $1,000.The maximum possible increase in the money supply, in this case, is equal to the change in the monetary base, which is the loan made by the bank, divided by the reserve requirement. Thus, the maximum possible increase in the money supply is $900.c.
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Match the following elements of internal control: control environment, information and communication, monitoring, risk assesment, or control activites
1. regular assessment of the quality of internal controls
2. management’s overall attitude, awareness and actions
3. identifying areas where losses may occur
4. policies and procedures management puts in place to see that its directives are carried out
5. pertains to the accounting system
Internal Control is the process through which an entity's operations are carried out and is based on 5 interrelated elements namely control environment, information and communication.
Monitoring, risk assessment, and control activities. Match the following elements of internal control: 1. Regular assessment of the quality of internal controls.
2. Management’s overall attitude, awareness, and actions: Control environment Control environment refers to the attitudes, awareness, and actions of management.
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which of the following help measure the quality of a good economic model? multiple select question. how well it reflects reality the level of central bank involvement the level of official government involvement whether it gives us insights that can be used in the real world
The following factors help measure the quality of a good economic model: How well it reflects reality and Whether it gives us insights that can be used in the real world.
Both of these factors contribute to assessing the quality and usefulness of an economic model. On the other hand, the level of central bank involvement and the level of official government involvement are not directly related to measuring the quality of an economic model.
These factors may be relevant in specific contexts, such as analyzing the effects of central bank policies or government interventions, but they do not serve as general indicators of the quality of an economic model.
How well it reflects reality: A good economic model should accurately capture and represent real-world economic phenomena. It should align with empirical evidence and observations, providing a reliable framework for understanding and analyzing economic relationships.Whether it gives us insights that can be used in the real world: A valuable economic model should generate insights and predictions that have practical applications. It should offer useful guidance for policymakers, businesses, and individuals in making informed decisions and understanding the potential consequences of different economic actions.For such more question on economic:
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Read the case thoroughly and answer all the questions
Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint venture, which started operations in Nepal in 1986. Surya Nepal is one of the the largest private sector enterprises in Nepal and a subsidiary of ITC Limited, India, the balance shares are held by 20 Nepalese individual & corporate shareholders and British American Tobacco (Investment) Limited, UK. Surya Nepal’s business includes manufacture and marketing of cigarettes in Nepal as well as exports of ready-made garments with a total turnover of over US $100 million. Surya Nepal’s manufacturing unit of ready-made garments in Nepal was shut down in the last decade, particularly due to the labour unrest problem. Surya Nepal’s commitment to its corporate vision "enduring value for all stakeholders" has been uncompromising through the years and is reflected in every product, process and service provided by the company. The company was awarded with the prestigious FNCCI National Excellence Award during 2007 for being the best-managed corporation in Nepal. The company was also the recipient of various national safety and environmental awards and with the constant focus on systemic work processes, both cigarette and garment factories are ISO- 9001:2000 certified. Surya Nepal is planning to establish a new cigarette plant in Surkhet, in near future, to expand its business. Surya Nepal’s decision to establish the cigarette plant in Surkhet comes with ITC’s plan to expand its international market. The new plant will create an additional employment for about many people. Surya Nepal, one of the the highest taxpayers among Indian joint ventures in Nepal, produces 15 brands of cigarettes and enjoys about 90 percent market share in Nepal.
Questions: a. Why do you think Surya Nepal is focusing on Nepal’s hilly area than in Terai?
Surya Nepal focuses on Nepal's hilly area for tobacco cultivation, favorable climatic conditions, tapping into local market demand, and logistical advantages.
Surya Nepal is focusing on Nepal's hilly area rather than in Terai due to several factors. Firstly, the hilly regions of Nepal provide suitable climatic conditions for tobacco cultivation, which is a crucial raw material for cigarette production.
The altitudes and soil conditions in the hilly areas create an ideal environment for growing high-quality tobacco leaves. By establishing a cigarette plant in Surkhet, Surya Nepal can have easy access to the hilly regions and ensure a steady supply of tobacco.
Secondly, Surya Nepal may be targeting the hilly area to tap into the local market demand. The company already enjoys a significant market share in Nepal, and by setting up a plant in Surkhet, they can cater to the preferences of consumers in the hilly regions more efficiently. This strategic move allows them to strengthen their position in the domestic market and enhance their brand presence.
Furthermore, the decision to focus on the hilly area could be influenced by logistical considerations. Surkhet's location in the hilly region provides proximity to transportation routes, facilitating the distribution of products within Nepal. This proximity can result in cost savings and streamlined operations for Surya Nepal.
In summary, Surya Nepal's focus on Nepal's hilly area is driven by favorable tobacco cultivation conditions, market demand, and logistical advantages. By establishing a cigarette plant in Surkhet, the company can ensure a consistent supply of high-quality tobacco, cater to regional preferences, and optimize distribution channels.
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Burke, Inc., manufactures wooden shelving units. The company expects to produce 600 units in July and 820 units in August. Each unit requires 28 hours of direct labor, and labor wages average $16 per hour. What is Burke's direct labor budget for August?
The direct labor budget for August is $366,560.
In the given problem, the company expects to produce 820 units in August, and each unit requires 28 hours of direct labor.
The average labor wages are $16 per hour. Now, we can calculate the direct labor budget for August as follows:
Direct labor cost per unit = Direct labor hours per unit × Direct labor cost per hour
Direct labor cost per unit = 28 hours × $16 per hour
Direct labor cost per unit = $448 per unit
The total direct labor budget for August can be calculated by multiplying the direct labor cost per unit by the expected units to be produced in August.
Direct labor budget for August = Direct labor cost per unit × Expected units to be produced in AugustDirect labor budget for August
= $448 per unit × 820 units
Direct labor budget for August = $366,560
Therefore, the direct labor budget for August is $366,560.
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ronwood Company manufactures cast-iron barbeque cookware. During
a recent windstorm, it lost some of its cost accounting records.
Ironwood has managed to reconstruct portions of its standard cost
syst
\begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{2}{|c|}{ Direct Materials } & \multicolumn{1}{c|}{ Direct Labor } \\ \hline Standard amount per pan produced & \( 2.5 \) & pound & \( 1.10 \) & hour
Ronwood Company's total standard cost per pan produced is $40.55. Ronwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some of its cost accounting records. Ironwood has managed to reconstruct portions of its standard cost system. It has determined that for every pan produced, the company should require 2.5 pounds of direct materials that cost $0.30 per pound and 1.10 hours of direct labor that cost $12 per hour.
It also incurs manufacturing overhead costs of $16 per direct labor hour and $9.60 in indirect materials and supplies per pan produced.
The total standard cost per pan produced can be calculated as follows:
Direct materials cost per pan = 2.5 pounds × $0.30 per pound = $0.75 per pan
Direct labor cost per pan = 1.10 hours × $12 per hour = $13.20 per pan
Manufacturing overhead cost per pan = 1.10 hours × $16 per hour + $9.60 = $26.60 per pan
Therefore, the total standard cost per pan produced is:
$0.75 (direct materials cost) + $13.20 (direct labor cost) + $26.60 (manufacturing overhead cost) = $40.55 per pan produced.
Therefore, Ronwood Company's total standard cost per pan produced is $40.55.
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Fully amortising loans are less risky to banks than
interest-only loans. Why do you think that is?
Fully amortizing loans are less risky to banks than interest-only loans. This is because fully amortizing loans require borrowers to pay both interest and principal payments, while interest-only loans only require the payment of interest.
Here's why fully amortizing loans are less risky to banks than interest-only loans:
Fully amortizing loans require borrowers to pay interest and principal payments, reducing the loan balance over time. Since the loan balance is decreased over time, the borrower's equity in the property increases, making it less likely that they will default on the loan. This is because borrowers are required to make a higher monthly payment, which can help them to build equity in the property over time.Interest-only loans require borrowers to pay only the interest on the loan. As a result, the loan balance does not decrease over time, and the borrower's equity in the property does not increase. If the borrower cannot afford to make the principal payments in the future, they may be unable to pay off the loan. This makes interest-only loans more risky for banks.
In conclusion, fully amortizing loans are less risky to banks than interest-only loans because they require borrowers to pay both interest and principal payments, reducing the loan balance over time, and increasing the borrower's equity in the property.
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A company purchased \( \$ 400 \) of office supplies on account during May. All the supplies were used in May, and the account was paid during June. What would the impact of these transactions be durin
A company's purchase of $400 of office supplies on account during May would result in an increase in assets (office supplies) and an increase in liabilities (accounts payable) of the company. All of the supplies being used in May would result in a decrease in assets (office supplies) and an increase in expenses (supplies expense).
The payment of the account during June would result in a decrease in liabilities (accounts payable) and a decrease in assets (cash).The initial purchase of $400 of office supplies on account in May will increase the company's assets (office supplies) and liabilities (accounts payable) by an equal amount of $400.
However, it has not yet paid for them and thus, the company owes $400 to its suppliers, increasing its liabilities by the same amount. The payment of the account during June will reduce the company's liabilities (accounts payable) and assets (cash) by $400, with the cash outflow being recorded as a debit to accounts payable and a credit to cash. The entire $400 worth of supplies will have been used up during May. Consequently, the use of supplies would reduce the company's assets (office supplies) by $400 and increase its expenses by the same amount ($400). The entry to record this transaction is a debit to supplies expense and a credit to office supplies.
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There are two types of securities Debt (Trading, AFS, HTM) and Equity (Trading). For each security classification (e.g., Trading, AFS, HTM), if necessary, determine the unrealized gain or loss to be recognized during March 20XX and propose adjusting journal entries. To do so, make sure you take in to account the March beginning balance
in the Fair Value Adjustment (FVA) account (that is the FVA balance at the end of February). For debt securities, we are going to make a simplifying assumption and ignore amortization. Your solution must include the pivot table results used to prepare the entries. Your numbers must be formatted using comma separators and to the nearest cent (2 decimal places).
Your entries must identify the security classification affected by the entry. Your entries must identify the unrealized gain or loss as affecting the net income (NI) or
other comprehensive income (OCI).
2. For each security classification, if necessary, determine the March 31 20XX balance in the adjustment account (Fair Value Adjustment; Allowance). You must identify the dollar value of the balance and the type of balance (debit or credit) for each classification as needed.Your numbers must be formatted comma separators and to the nearest cent (2 decimal
places).
To determine the unrealized gain or loss for each security classification (Trading, AFS, HTM) during March 20XX, we need to consider the March beginning balance in the Fair Value Adjustment (FVA) account.
What are the steps?Let's go step by step to determine the unrealized gain or loss and propose the adjusting journal entries.
1. Debt Securities:
- Trading Debt Securities:
- Determine the change in fair value of the trading debt securities from the beginning of March to the end of March.
- The unrealized gain or loss will be recognized in the Net Income (NI) as it is classified as trading.
- Prepare the adjusting journal entry to recognize the unrealized gain or loss in the Net Income account. The entry should identify the security classification affected.
- Available-for-Sale (AFS) Debt Securities:
- Determine the change in fair value of the AFS debt securities from the beginning of March to the end of March.
- The unrealized gain or loss will be recognized in the Other Comprehensive Income (OCI) as it is classified as AFS.
- Prepare the adjusting journal entry to recognize the unrealized gain or loss in the Other Comprehensive Income account. The entry should identify the security classification affected.
- Held-to-Maturity (HTM) Debt Securities:
- Determine the change in fair value of the HTM debt securities from the beginning of March to the end of March.
- Since we are making a simplifying assumption and ignoring amortization, there will be no unrealized gain or loss to recognize for HTM securities.
2. Equity Securities:
- Trading Equity Securities:
- Determine the change in fair value of the trading equity securities from the beginning of March to the end of March.
- The unrealized gain or loss will be recognized in the Net Income (NI) as it is classified as trading.
- Prepare the adjusting journal entry to recognize the unrealized gain or loss in the Net Income account. The entry should identify the security classification affected.
For each security classification, if necessary, determine the March 31 20XX balance in the adjustment account (Fair Value Adjustment; Allowance).
3. Fair Value Adjustment (FVA) Account Balance:
- Determine the March 31, 20XX, balance in the FVA account for each security classification (Trading, AFS, HTM).
- Identify the dollar value of the balance and the type of balance (debit or credit) for each classification.
Remember to format your numbers using comma separators and to the nearest cent (2 decimal places).
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Please read the case "Difficulties Attracting and Retaining Human Capital in the Nursing Profession" given on Page number 413, Chapter 9 – "Human Resource Management" available in your textbook/e-textbook "Management: A Practical Introduction" 10th edition by Angelo Kinicki, & Denise B. Soignet and answer the following questions (Each of your answer should be 100-150 words):
QUESTIONS
Q1. What role do you believe hospital administrators have played in contributing to nursing shortages and high nurse turnover? (2. 5Marks)
Q2. What could hospitals do during recruitment and selection to help nurse retention? (2. 5 Marks)
Q3. What steps could hospitals take to ensure male and female nurses are given equal opportunities in compensation and promotion decisions? (2. 5 Marks)
Q4. Why do you think so many nurses continue to work, despite the many challenges they face and the lack of safety on the job? Explain your points. (2. 5 Marks)
I can't provide a detailed analysis of the case "Difficulties Attracting and Retaining Human Capital in the Nursing Profession" or answer the specific questions related to it.
However, I can offer some general insights based on common challenges faced in the nursing profession:
Q1. Hospital administrators may contribute to nursing shortages and high nurse turnover through factors such as inadequate staffing levels, insufficient resources, limited career development opportunities, and a lack of supportive work environments. Administrators who prioritize financial considerations over addressing the needs of nursing staff can lead to increased burnout, job dissatisfaction, and ultimately, higher turnover rates.
Q2. To enhance nurse retention, hospitals can implement several strategies during recruitment and selection processes. This includes emphasizing the organization's commitment to employee well-being, providing competitive compensation packages, offering flexible work schedules, ensuring a positive work environment, fostering a culture of professional growth and development, and establishing effective communication channels to address concerns and feedback from nurses.
Q3. Hospitals can ensure equal opportunities for male and female nurses by implementing transparent and unbiased compensation and promotion policies. This involves conducting regular pay equity analyses to identify and address any gender-based disparities, promoting diversity and inclusion initiatives, establishing mentorship programs to support career advancement for both genders, and providing training on unconscious bias and fair evaluation practices to decision-makers involved in compensation and promotion decisions.
Q4. Despite the challenges and safety concerns in the nursing profession, many nurses continue to work due to their passion for patient care, a sense of purpose, and the fulfillment derived from making a positive impact on people's lives. Additionally, nurses may have limited job alternatives or financial constraints that prevent them from leaving their current positions. The strong bonds formed with colleagues and the satisfaction derived from helping others often outweigh the difficulties, leading nurses to persevere in their roles.
It's important to note that these answers are based on general knowledge and understanding of the nursing profession, and may not directly reflect the specific details of the case mentioned in the textbook.
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Using the discussion area, provide your input to this discussion thread: The practice of hedging or use of a hedge locks the hedger into a known gain or loss and thus insulates the transaction from future changes in the exchange rate. Under what situation would a company use hedge accounting? Use the discussion forum called: Unit 07 Topic 7.6 Discussion Discussion topic Unit 7
Hedge accounting is a process that reduces the income statement volatility of a company by acknowledging gains and losses of a hedging instrument separately from the gains and losses of the hedged item (in this instance, a trade), which are attributed to the same hedging risk. In comparison to marking the hedge item and hedging instruments to market, the hedge accounting methodology is structured.
Hedge accounting allows a company to lock in gains or losses, but under what circumstances would a company employ this accounting approach? Companies can use hedge accounting under the following circumstances: if they expect a substantial amount of foreign currency transactions to be incurred over time, the effects of currency fluctuations are predicted to be significant, if they anticipate cash flows from the expected transactions, or if they require certainty or visibility of their financial records to reduce the risk of fluctuations in market value.
Hedging can be used to shield businesses against economic risk in situations such as these, which can result in an unpredictable and negative financial impact.
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A stock index is a. a report in a newspaper or other media outlet on the price of the stock and earnings of the corporation that issued the stock b. an average of a group of stock yields c. an average of a group of stock prices. d. a measure of the risk relative to the profitability of corporations
A stock index is The correct answer is c. an average of a group of stock prices.
A stock index is a statistical measure that represents the performance of a specific group of stocks. It is typically calculated as the weighted average of the prices of a selected number of stocks within the index. The purpose of a stock index is to provide investors with a benchmark or indicator of how the overall market or a specific sector of the market is performing.
Option a, a report on the price of the stock and earnings of the corporation that issued the stock, refers more to a stock quote or financial report rather than a stock index.
Option b, an average of a group of stock yields, is not accurate as a stock index is based on stock prices rather than yields.
Option d, a measure of the risk relative to the profitability of corporations, refers more to financial ratios or metrics used to assess the risk and profitability of individual corporations, rather than a stock index.
Therefore, option c, an average of a group of stock prices, best describes what a stock index represent.
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The president of a growing engineering firm wishes to give each of 50 employees holiday bonus. How much is needed to invest monthly for a year at 10% nominal interest rate compounded monthly so that each employees will received P1,500 bonus?
The president of the engineering firm would need to invest approximately P5,961.54 per month for a year at a 10% nominal interest rate compounded monthly to provide each of the 50 employees with a P1,500 bonus.
To calculate the amount needed to invest monthly for a year at a 10% nominal interest rate compounded monthly, we can use the future value of an annuity formula.
The future value of an annuity formula is given by:
FV = P * [(1 + r)^n - 1] / r
Where:
FV = Future value of the annuity
P = Monthly investment amount
r = Monthly interest rate
n = Number of compounding periods (in this case, 12 months)
In this scenario, the future value of the annuity should be equal to the total bonus amount for all employees. Let's calculate the monthly investment amount (P) using the provided information:
Total bonus amount for all employees = 50 employees * P1,500 per employee = P75,000
Using the formula, we can solve for P:
75,000 = P * [(1 + 0.10/12)^12 - 1] / (0.10/12)
Simplifying the equation:
75,000 = P * [(1.0083333)^12 - 1] / 0.0083333
75,000 = P * [1.104713 - 1] / 0.0083333
75,000 = P * 0.104713 / 0.0083333
P * 0.104713 = 75,000 * 0.0083333
P = (75,000 * 0.0083333) / 0.104713
P ≈ 5,961.54
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the amount that needs to be invested monthly for a year at 10% nominal interest rate compounded monthly is P1,131.27 (rounded to two decimal places).
Given data: The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. The amount of bonus for each employee is P1,500. The interest rate is 10% nominal interest rate compounded monthly. We need to calculate how much is needed to invest monthly for a year.
So, the first step to solving this problem is to calculate the future value of one bonus after one year, including interest. The formula to calculate the future value is:
FV = PV × [(1 + i)n - 1]/i
Where, FV = future value,
PV = present value,
i = interest rate per period, and
n = number of periods.
Using the given values in the formula: PV = 1500i = 10%/12 months = 0.00833n = 12 months
FV = 1500 × [(1 + 0.00833)^12 - 1]/0.00833
= P16,165.97
So, the future value of one bonus after one year is P16,165.97. To find out how much is needed to invest monthly for a year, we need to calculate the present value of P16,165.97. The formula to calculate the present value is:
PV = FV/[ (1 + i)n]
Using the given values in the formula: FV = P16,165.97i = 10%/12 months = 0.00833n = 12 months
PV = 16,165.97/[(1 + 0.00833)^12] = P13,575.28 (rounded to two decimal places)
Therefore, the amount that needs to be invested monthly for a year at 10% nominal interest rate compounded monthly is P1,131.27 (rounded to two decimal places).
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Suppose your firm owns the patent for the production and distribution a new hand-held inventory control device used by heavy equipment rental firms. Researchers at your firm have estimated that the daily demand for your product is given by: Q=24−P Engineers at your firm have specified the following simple variable cost function for producing the devices: VC(Q)=Q2 The accounting department at your firm estimates that the daily fixed overhead of your operations is $12. a. Find the total cost function for your firm. b. Find the average cost, average variable cost, and marginal cost functions for your firm. c. What is the total revenue function (as a function of quantity) for your firm? d. How much will you choose to produce on a daily basis?| e. What profit do you anticipate earning on a daily basis?
Profit = TR - TC
Profit = [tex]6P - (12 + P²)[/tex]
Profit =[tex]6(6) - (12 + 6[/tex]²)
Profit = [tex]36 - 48[/tex]
Profit = -12
Therefore, the firm anticipates a loss of $12 daily.
a. The total cost (TC) function can be obtained by adding total variable cost (TVC) to the total fixed cost (TFC).
The formula is given below; TC= TFC+TVC
Where, TFC = $12
TV = V[tex]C(Q) = Q[/tex]²
Putting the value of TVC, we get; TC = [tex]$12 + Q²b.[/tex]
Average Cost Function Average cost (AC) can be determined by dividing the total cost (TC) by the number of units produced (Q). The formula is given below; AC = TC/Q
The Total variable cost (TVC) can be determined by multiplying the variable cost (VC) with the number of units produced (Q). The formula is given below; TVC = VC(Q) = Q²
The average variable cost (AVC) can be obtained by dividing the total variable cost (TVC) by the number of units produced (Q). The formula is given below; AVC = TVC/Q
The Marginal cost function (MC) can be obtained by differentiating the total cost (TC) with respect to the number of units produced (Q).
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