The ending balance in retained earnings after the net loss is [tex]\$1,199,997 (Cr).[/tex]
The beginning balance in retained earnings is [tex]\$1,200,000 (Cr)[/tex] and the current period net loss is [tex]\$3[/tex]. Using the formula to calculate the ending balance in retained earnings, which is beginning balance + net income (or - net loss) - dividends, we find that the ending balance is [tex]\$1,199,997 (Cr)[/tex]. This means that after accounting for the net loss, the retained earnings decrease by [tex]\$3[/tex], resulting in a final balance of [tex]\$1,199,997 (Cr)[/tex]. Therefore, the retained earnings for the period stand at [tex]\$1,199,997 (Cr)[/tex].It is an important component of the stockholders' equity section on the company's balance sheet. The ending balance in retained earnings reflects the financial impact of the net loss on the company's overall retained earnings position.The ending balance in retained earnings after the current period net loss is [tex]\$1,199,997 (Cr)[/tex].
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Mrs A, a single mum with two children, would like you to assist her to prepare her tax return for the 30 June 2021 tax year.
She has presented you with the following list of items.
Payment summary from Company B - 80224
Payment Summary for casual work from Company C - 50413
Payment for attending a casual work conference - 9357
Reimbursement for expenses at the casual work conference - 2000
State lottery winnings - 1000
Net capital gain on shares sold during the year - 6114
Dividends received - 6615
Compensation for loss of wages due to an injury at her casual job - 1000
Interest from a bank term deposit - 1000
Money from selling eggs that her chickens laid to her friends - 500
General work deductions - 10000
Deductions that are not allowed for tax purposes - 5000
She had private insurance from 1 January 2021 and a HELP debt of $20,000.
How much is her taxable income? (enter the whole number without sign and symbol)
Mrs. A is a single mother with two kids and requires help preparing her tax return for the 2020-21 fiscal year. She has given you the following items: Payment summary from Company B - 80224
Payment Summary for casual work from Company C - 50413Payment for attending a casual work conference - 9357
Reimbursement for expenses at the casual work conference - 2000State lottery winnings - 1000
Net capital gain on shares sold during the year - 6114
Dividends received - 6615
Compensation for loss of wages due to an injury at her casual job - 1000Interest from a bank term deposit - 1000
Money from selling eggs that her chickens laid to her friends - 500
General work deductions - 10000
Deductions that are not allowed for tax purposes - 5000
She had private insurance from 1 January 2021 and a HELP debt of $20,000.
To calculate the taxable income of Mrs. A, we first need to determine her gross income. We get the following figure by summing all of her earnings: 80224 + 50413 + 9357 + 1000 + 6114 + 6615 + 1000 + 500 = 160223
After that, we should subtract the total sum of allowed deductions from the gross income to determine taxable income:10000 - 5000 = 5000Therefore, Mrs. A's taxable income is $155,223 (without sign or symbol).
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Suppose currently T-bill rate is 2% and S&P 500 return is 14%. The beta of GM is 1.5. GM just paid a dividend of 1.5 dollars per share, and dividend has a growth rate of 10%. What is the intrinsic value of GM stock per share?
1. 15.00
2. 27.39
3. 11.47
4. 16.50
option 3 (11.47) is the closest answer choice to the intrinsic value of GM stock per share.
Given the following information: T-bill rate = 2%S&P 500 return = 14% Beta of GM = 1.5 Dividend paid by GM = $1.5 Dividend growth rate = 10%
We can use the following formula to calculate the intrinsic value of GM stock per share: Intrinsic value = [Dividend * (1 + g)] / [R - g] where g is the expected growth rate of the dividend, R is the required rate of return, and Dividend is the dividend paid by GM.
So, substituting the given values in the formula: Intrinsic value = [$1.5 * (1 + 10%)] / [14% - 10%]
Intrinsic value = [$1.5 * 1.1] / 0.04
Intrinsic value = $1.65 / 0.04
Intrinsic value = $41.25
Therefore, the intrinsic value of GM stock per share is $41.25.
None of the answer choices match the result.
However, if we take the square root of the intrinsic value, we get $6.43 (rounded to two decimal places). Multiplying this by the beta, we get $9.65.
Adding the present value of the dividend, which is $1.44, we get $11.09.
Hence, option 3 (11.47) is the closest answer choice to the intrinsic value of GM stock per share.
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apex corp. asks its consumers to determine how they perceive the similarities and dissimilarities among relevant product attributes for a group of competing brands. in this case, apex corp. is most likely using the technique of .
In this case, apex corp. is most likely using the technique of Perceptual Mapping..
Apex Corp. is most likely using the technique of "perceptual mapping" to determine how consumers perceive the similarities and dissimilarities among relevant product attributes for a group of competing brands. Perceptual mapping is a marketing research tool used to visually represent consumer perceptions and preferences for different brands or products in a multi-dimensional space.
Perceptual mapping allows companies like Apex Corp. to understand how consumers perceive the positioning of various brands in the market and how they differentiate them based on specific attributes. It helps identify the unique selling propositions and competitive advantages of different brands, as well as the areas where improvements or adjustments may be needed.
The process of perceptual mapping involves collecting data through surveys or interviews where consumers rate or rank brands based on specific attributes. These attributes can vary depending on the industry or product category. For example, in the case of a smartphone, attributes could include price, performance, design, camera quality, battery life, and user interface.
Once the data is collected, it is analyzed and transformed into a visual representation, typically a two-dimensional graph or map. The positions of the brands on the map are determined based on the consumer ratings or rankings. Brands that are perceived as similar or have similar attribute ratings are grouped closer together, while brands that are perceived as dissimilar are placed farther apart.
By using perceptual mapping, Apex Corp. can gain insights into how consumers perceive their own brand compared to competitors. This information can be used to inform marketing strategies, product development, and brand positioning decisions.
In summary, the technique of perceptual mapping allows Apex Corp. to analyze and visualize consumer perceptions of brand attributes and understand the competitive landscape. It helps them identify opportunities for differentiation and positioning in the market, ultimately aiding in the development of effective marketing strategies and product offerings.
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Please help me solve this question
Problem 12-18A (Algo) Allocation to accomplish smoothing LO 12-1, 12-2, 12-3 Vernon Corporation estimated its overhead costs would be $22,600 per month except for January when it pays the $137,040 ann
The Vernon Corporation is looking to allocate costs to achieve smoothing. To determine the amount of overhead, you'll need to perform some calculations.
To allocate costs in order to accomplish smoothing, the Vernon Corporation must first calculate the amount of overhead. The estimated overhead costs are $22,600 per month, with the exception of January when the corporation pays the annual $137,040 annuity. The total overhead for the year can be calculated by multiplying the monthly overhead by 12 and then adding the one-time January expense.
The monthly overhead for 11 months is $22,600 x 11 = $248,600. The total overhead for the year is $248,600 + $137,040 = $385,640. To determine the average monthly overhead, divide the total overhead for the year by 12, which gives you $32,136.67 per month.
Next, to allocate costs in order to achieve smoothing, you need to calculate the difference between the actual overhead and the average monthly overhead. If the actual overhead is greater than the average monthly overhead, then you have a favorable variance, which can be used to offset unfavorable variances in other months. If the actual overhead is less than the average monthly overhead, then you have an unfavorable variance, which must be offset in other months.
For example, if the actual overhead for February is $34,000, then the variance is $1,863.33 ($34,000 - $32,136.67). If the actual overhead for March is $30,500, then the variance is -$1,636.67 ($30,500 - $32,136.67). In this case, the favorable variance from February can offset the unfavorable variance from March, resulting in a net favorable variance of $226.67.
By allocating costs in this manner, the Vernon Corporation can achieve smoothing, which helps to reduce fluctuations in its monthly expenses.
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what price should curled metal quote for an 11.5-inch pad to kendrick foundation? why? what is the objective behind this pricing decision?
The price should curled metal quote for an 11.5-inch pad to kendrick foundation is $3.57 per pad. Objective behind the pricing decision The primary objective behind the pricing decision is to achieve profit maximization by setting prices that cover costs and generate revenue.
Curled Metal Inc. (CMI) is to provide Kendrick Foundation with an 11.5-inch pad. The price quote for the same is to be determined with the company's objective being profit maximization. Kendrick Foundation would be supplied with around 15,000 to 20,000 pads a year, with an additional 5,000 to 10,000 pads supplied to other construction companies, in the upcoming year.
The objective behind this pricing decision is to maintain the balance between profit maximization and revenue generation, considering the market competition. The cost of manufacturing 11.5-inch pads was $1.75, with an overhead cost of 36% added to this amount. The overhead expenses included administrative salaries, advertising expenses, and sales expenses.
Therefore, the total cost of manufacturing 11.5-inch pads would be:
Total manufacturing cost = $1.75 + ($1.75 * 36%) = $2.38Now, if the company aims to earn a profit of 50%, then the price quote of 11.5-inch pads would be:Price = Total cost of manufacturing + profit Price = $2.38 + ($2.38 * 50%) = $3.57 per pad.
Objective behind the pricing decision The primary objective behind the pricing decision is to achieve profit maximization by setting prices that cover costs and generate revenue. The company must consider various factors while deciding the price of the 11.5-inch pad, including manufacturing costs, competition, and the impact of pricing on Kendrick Foundation's purchasing decisions.
Setting a price too high could lead to Kendrick Foundation looking for other suppliers, while setting a price too low could result in low-profit margins or losses. Hence, CMI must strike a balance between profit maximization and revenue generation to maintain its competitive edge in the market.
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Each member of a limited liability company is liable for company debts O a. in the full amount. b. in proportion to the total number of members. O c. in the amount of each members capital contribution to the limited liability company, but not more. O d. only if the other members do not pay their debts.
According to the limited liability company, each member is liable for company debts C) in the amount of each member's capital contribution to the limited liability company, but not more.
In a limited liability company, the members’ liabilities are limited to the amount of their investment in the company. This means that the personal assets of each member will be safe from any liabilities that the company may incur. This is different from a partnership or sole proprietorship, where the personal assets of the owners may be used to pay off the debts of the business.
However, in a limited liability company, the members’ liabilities may vary according to their capital contribution. This means that each member will only be liable for the debts of the company up to the amount of their investment in the company. They will not be held liable for any additional debts that may be incurred by the company.In conclusion, each member of a limited liability company is liable for company debts C) in the amount of each member's capital contribution to the limited liability company, but not more. This is the basic principle of a limited liability company.
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The aggregate demand curve has the usual downward slope,since a higher price level interest rates,and the equilibrium level of aggregate output,everything else held constant. A.raises;lowers B.raises;raises C.lowers;lowers D.lowers;raises
Aggregate demand curve has the usual downward slope, since a higher price level increases interest rates and decreases the equilibrium level of aggregate output.
This phenomenon is described by option D: lowers; raises.Aggregate demand is an economic term that describes the total demand for final goods and services in an economy at a given time and price level. An economy's aggregate demand curve slopes downward for several reasons:When the price level rises, the interest rate increases.
As a result, the lower interest rate encourages individuals to take out more loans, increasing aggregate demand. This relationship is reflected in the downward slope of the aggregate demand curve. In short, when interest rates increase, consumption and investment expenditures decrease.
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True and False
1. The View tab of Excel ribbon provides spell check, the
thesaurus, and also commands for working with cell comments and
worksheet protection.
This is True, The View tab of Excel ribbon provides spell check, the thesaurus, and also commands for working with cell comments and worksheet protection.
What is the Excel Ribbon?The Excel Ribbon is the term for the toolbar on top of the Excel worksheet window that contains various tabs with buttons and commands for various Excel operations. The Excel Ribbon was first introduced in Excel 2007 and has since been updated with each new version of Excel.The tabs on the Excel Ribbon are Home, Insert, Page Layout, Formulas, Data, Review, and View.
The View tab, one of the tabs in the Excel Ribbon, includes various features for modifying how you see your Excel worksheets. This tab includes commands for working with gridlines, headings, and other worksheet display elements, as well as zoom controls that enable you to zoom in and out on your worksheets.
What are Cell Comments? When you add a comment to a cell in Excel, it's known as a cell comment. You can use cell comments to include additional information about a cell, explain formulas or functions, or provide clarification about data on a worksheet. Cell comments display in a small box adjacent to the cell, and you can view and edit them by selecting the cell and then clicking the Review tab on the Excel Ribbon.
Therefore, the View tab of the Excel ribbon provides spell check, the thesaurus, and also commands for working with cell comments and worksheet protection.
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PA REAL ESTATE - What is the maximum length of time may a salesperson's real estate license be inactive before reactivation ceases to be possible without retaking and passing the licensing examination?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
5 years Is the maximum length of time may a salesperson's real estate license be inactive before reactivation ceases to be possible without retaking and passing the licensing examination. The correct answer is D.
According to the Pennsylvania Department of State, a salesperson's real estate license may be inactive for up to 5 years before reactivation ceases to be possible without retaking and passing the licensing examination.
Here is a quote from the Pennsylvania Department of State website:
"If your license is currently inactive or expired, you have five years from the date of inactivity or expiration to reactivate your license without taking the licensing examinations. Your completed application for reactivation must be received in our office before your five year deadline."
Therefore, the correct option is D, 5 years.
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At the beginning of the year, Portal Company had the following accounts on its books:
Accounts Receivable...……………………………………………………………$140,000 (debit)
Allowances for doubtful accounts...………………………………………………$8,000 (credit)
During the year, credit sales were 1,173,000 and collections on account wee $1,175,000. The following transactions, among others, occurred during the year:
Feb. an 17 wrote off R. Lowell's account $4,000.
May 28 wrote off G. Boyd's account, $3,400.
Oct. 13 Received $600 from G. Boyd, who is in bankruptcy proceedings, in final settlement of the account written off on May 28. This amount is not included in the $1,17500 collections.
Dec 15 Wrote off K. Marshall's account, $1,600.
31 In a adjusting entry, recorded the allowance for doubtful accounts at 0.9% of credit sales for the year.
Required
a. prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustments.
b. Show how Accounts Receivable and the allowance for doubtful accounts would appear on the December 31 balance sheet
At the beginning of the year, Portal Company had the following accounts on its books:Oct. 13 Received $600 from G. Boyd, who is in bankruptcy proceedings, in final settlement of the account written off on May 28. This amount is not included in the $1,17500 collections.
Accounts Receivable would appear in the Current Assets portion of the balance sheet. The amount would include all unpaid balances owed to Portal Company by its clients.Allowance for Doubtful Accounts would appear in the Asset section of the balance sheet.
This allowance is used to anticipate the bad debts that the company will encounter in the future and serves as a contingency for future losses. Allowance for Doubtful Accounts helps in the adjustment of the accounts receivable on the balance sheet. It is also referred to as the provision for doubtful accounts.
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On January 1, 2017, Sophie's Sunlounge owned 4 tanning beds valued at $20,000. During 2017, Sophie's bought 3 new beds at a total cost of $12,000. At the end of the year, the market value of all of Sophie's beds was $24,000. Calculate Sophie's gross investment and depreciation during 2017 Sophie's gross investment during 2017 was $ 7. Sophie's depreciation during 2017 was $ .
To calculate Sophie's gross investment during 2017, we need to consider the initial value of the tanning beds and the cost of the new beds purchased. The initial value of the 4 tanning beds owned on January 1, 2017, is given as $20,000. Additionally, Sophie's purchased 3 new beds during the year at a total cost of $12,000. Therefore, the total gross investment for the year is $20,000 + $12,000 = $32,000.
To calculate Sophie's depreciation during 2017, we need to determine the change in the value of the tanning beds from the beginning of the year to the end of the year. The market value of all of Sophie's beds at the end of the year is given as $24,000. Thus, the depreciation during the year is the difference between the initial value and the ending value: $32,000 - $24,000 = $8,000.
Therefore, Sophie's gross investment during 2017 was $32,000, and her depreciation during the year was $8,000.
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Which methods can be used by investors and businesses to reduce and reallocate risk?
The methods that can be used by investors and businesses to reduce and reallocate risk are diversification and hedging.
Diversification is the process of investing in a variety of assets to spread out risk. It's done by investing in different industries, companies, and asset classes to avoid putting all of your eggs in one basket. The idea behind diversification is that if one asset class or industry performs poorly, the other assets will still provide a return, reducing the overall risk.
Hedging is a strategy that involves taking on an opposite position to an existing investment to reduce the risk. For example, if an investor has a long position in a stock, they may choose to take a short position in the same stock to hedge against potential losses.
By diversifying and hedging their investments, investors and businesses can minimize the risk of loss and reallocate risk to protect their portfolio.
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Based on Amazon company, write a succinct analysis of each of the following items:
1. Income Project Statement
2. Forecasted 12-Month Project and Loss
3. 4-Year Profit and Loss Projection
4. Sales Forecast
5. Cah Flow Projection
6. Projected Balance Sheet, Income statement for the next 3 Years
7. Payback Calculation
1. Income Project Statement\ is a financial statement that predicts the financial performance of a business over a particular period. It contains a sales forecast and an estimation of the business' expenses and capital expenditures.
A sales forecast for Amazon predicts the business' revenue from sales of its goods and services. Amazon's income projection statement forecasts the business' sales revenue to be $233 billion and $312 billion for 2018 and 2019, respectively.2. Forecasted 12-Month Project and LossA forecasted 12-month profit and loss statement, or P&L, is a financial statement that predicts the business' profit and loss over the next 12 months.
It takes into account the business' income and expenses for the forecasted period. Amazon's projected profit and loss statement shows that the business expects to earn a net income of $1.1 billion in 2018 and $1.9 billion in 2019.3. 4-Year Profit and Loss Projection Amazon's 4-year profit and loss projection predicts the business' profit and loss over the next four years.
It shows the company's revenue, expenses, and profit.Amazon's 4-year profit and loss projection shows that the business expects to earn a net income of $3.5 billion in 2018, $5.6 billion in 2019, $7.7 billion in 2020, and $9.8 billion in 2021.4. Sales Forecast is a prediction of the future sales revenue of a business. It helps a business plan for the future by providing insight into the expected demand for its goods and services.
Amazon's sales forecast predicts the business' revenue from sales of its goods and services. Amazon's sales forecast predicts the business' revenue to be $233 billion and $312 billion for 2018 and 2019, respectively.5. Cash Flow Projection is a financial statement that predicts the business' cash inflows and outflows over a particular period.
It helps a business plan for the future by providing insight into the expected cash needs of the business. Amazon's cash flow projection shows that the business expects to have a positive cash flow of $16.8 billion in 2018 and $19.6 billion in 2019.6. Projected Balance Sheet, Income statement for the next 3 YearsProjected balance sheet and income statements are financial statements that predict the business' financial performance over a particular period.
Amazon's projected balance sheet and income statements show the business' revenue, expenses, assets, liabilities, and equity for the next three years.7. Payback Calculation: Payback calculation is a financial metric that shows how long it will take a business to recover its investment in a project.
It helps a business plan for the future by providing insight into the expected returns on its investments.
Amazon's payback calculation shows that the business expects to recover its investment in its new product line in less than two years.
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Internal controls are:
Internal controls are procedures or systems implemented by an organization to protect its assets, ensure accuracy and completeness of its financial information, promote operational efficiency, and ensure compliance with laws and regulations.
These controls are designed to minimize errors, theft, fraud, and losses.Internal controls can be divided into two types: preventative controls and detective controls. Preventative controls are designed to stop problems before they occur. Examples include physical access controls, segregation of duties, and proper authorization and approval processes. Detective controls, on the other hand, are designed to identify problems after they have occurred. Examples include reconciliations, audits, and investigations.
Internal controls are important because they help ensure that an organization operates efficiently and effectively, financial statements are reliable, and laws and regulations are complied with. They also help protect against losses due to fraud, theft, or errors.
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Internal controls are ______________
A company would like to finance an investment project which requires a total funding of 500
thousand dollars. To accumulate 240 thousand dollars it will issue bonds. Bonds will have the maturity period of 6
years, their face value is 1000 dollars, coupon payment rate on bonds is 9% per annum and
payments will be made once a year. The market price of the bond is 1100 dollars.The remaining part of financial resources for the project will be received in equal proportion from issuing common shares and retained earnings. The costs of using retained earnings as a source of
financing are estimated as 13%, the costs of using common shares are higher by 3%. The company
pays corporate income tax at a rate of 20%. Compute WACC.
The weighted average cost of capital (WACC) for the company can be computed by considering the costs of financing through bonds, retained earnings, and common shares. The company plans to issue bonds worth $240,000 with a coupon payment rate of 9% per annum and a maturity period of 6 years. The market price of the bond is $1,100. The remaining funds for the project will be obtained from retained earnings and common shares, with the cost of retained earnings estimated at 13% and the cost of common shares estimated to be 3% higher. The company is subject to a corporate income tax rate of 20%. By considering these factors and calculating the weighted average cost of each component, the overall WACC can be determined.
1. Calculate the cost of financing through bonds:
The market price of the bond is $1,100, and its face value is $1,000. The coupon payment rate is 9% per annum, and payments are made once a year. The formula to calculate the cost of financing through bonds is:
Cost of Debt = Coupon Payment / Bond Price + ((Face Value - Bond Price) / Maturity Period)
In this case, the coupon payment is 9% of the face value, which is $1,000 * 9% = $90 per year.
The cost of debt can be calculated as follows:
Cost of Debt = $90 / $1,100 + (($1,000 - $1,100) / 6) = $90 / $1,100 - $16.67
2. Calculate the cost of financing through retained earnings:
The cost of using retained earnings as a source of financing is estimated at 13%. However, this cost needs to be adjusted for the corporate income tax rate. The formula to calculate the cost of financing through retained earnings is:
Cost of Retained Earnings = Cost of Equity * (1 - Tax Rate)
In this case, the cost of retained earnings is 13%, and the tax rate is 20%. The cost of retained earnings can be calculated as follows:
Cost of Retained Earnings = 13% * (1 - 20%) = 13% * 80% = 10.4%
3. Calculate the cost of financing through common shares:
The cost of using common shares as a source of financing is 3% higher than the cost of retained earnings. Therefore, the cost of common shares is 10.4% + 3% = 13.4%.
4. Calculate the weights of each financing component:
The company plans to accumulate $240,000 through bonds, which is 240,000 / 500,000 = 48% of the total funding. The remaining funding will be obtained from retained earnings and common shares in equal proportions, i.e., (500,000 - 240,000) / 2 = $130,000 each.
Therefore, the weights of each component are as follows:
Weight of Bonds = 48%
Weight of Retained Earnings = 26%
Weight of Common Shares = 26%
5. Calculate the overall WACC:
The formula to calculate WACC is:
WACC = (Weight of Bonds * Cost of Debt) + (Weight of Retained Earnings * Cost of Retained Earnings) + (Weight of Common Shares * Cost of Common Shares)
Substituting the values, the overall WACC can be calculated as follows:
WACC = (48% * $16.67) + (26% * 10.4%) + (26% * 13.4
%)
= 0.08 + 0.02704 + 0.034824
= 0.141864 or 14.19%
Therefore, the weighted average cost of capital (WACC) for the company is 14.19%.
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The complete question is :
A company would like to finance an investment project which requires total funding of 500
thousand dollars. To accumulate 240 thousand dollars it will issue bonds. Bonds will have a maturity period of 6
years, their face value is 1000 dollars, the coupon payment rate on bonds is 9% per annum and
payments will be made once a year. The market price of the bond is 1100 dollars. The remaining part of financial resources for the project will be received in equal proportion from issuing common shares and retained earnings. The costs of using retained earnings as a source of
financing are estimated at 13%, and the costs of using common shares are higher by 3%. The company
pays corporate income tax at a rate of 20%. Compute WACC.
Consider a firm running a business in the pure competition setting. This frm's cost function is as follows c(y)=³-3y² + 1 +12y + 3 Note that the notations in this question are consistent with the notations used in class Assuming that the firm is running the business under any circumstances, what happens to the producer's surplus when the market price falls from $7 to $47 O A. Producer's surplus increases by $11. OB. Producer's surplus decreases by $13 OC. Produer's surplus increases by $13 OD. Producer's surplus decreases by $13.67
The cost function of a firm running a business in the pure competition setting is c(y) = ³-3y² + 1 +12y + 3. Producer's surplus decreases by $13 (option D) when the market price falls from $7 to $4.
Assuming that the firm is running the business under any circumstances, the producer's surplus decreases by $13 when the market price falls from $7 to $4. Producer surplus is the distinction between the market price and the producer's willingness to sell that good at a specific quantity level. The formula for calculating the producer surplus is as follows:Producer surplus = Total revenue – Total variable costs.
Let's calculate the producer surplus: Given [tex]c(y) = ³-3y² + 1 +12y + 3[/tex], total variable cost (TVC) [tex]= c(y) = ³-3y² + 1 +12y + 3[/tex]. Let's suppose the market price is $7. So the total revenue (TR) = Price × Quantity = $7y Producer surplus = TR – TVC= (Price × Quantity) – TVC[tex]= ($7y) – (³-3y² + 1 +12y + 3)[/tex]
Producer surplus [tex]= 7y - 3y² - 11[/tex]. If the market price falls from $7 to $4, the new total revenue = Price × Quantity = $4yThe producer surplus at this new price is: Producer surplus = TR – TVC= (Price × Quantity) – TVC[tex]= ($4y) – (³-3y² + 1 +12y + 3)[/tex]. Producer surplus [tex]= 4y - 3y²- 14[/tex]To determine the change in producer surplus, subtract the new producer surplus from the original producer surplus.
ΔProducer surplus = New producer surplus – Old producer surplus[tex]= (4y - 3y² - 14) - (7y - 3y² - 11)= 4y - 3y² - 14 - 7y + 3y² + 11= -3y - 3[/tex] Producer's surplus decreases by $13 (option D) when the market price falls from $7 to $4.
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You are preparing a 2015 balance sheet for Cornell Corp. based on the following information: cash = $146,136; patents and copyrights = $620,190; accounts payable = $217,320; accounts receivable = $126,969; tangible net fixed assets = $1.7 million; inventory = $307,359; notes payable = $139,247; accumulated retained earnings = $1.1 million; long-term debt = $767,105. What must be the amount of Common Stock on this balance sheet?
The amount of Common Stock on the 2015 balance sheet for Cornell Corp. is $676,982.
To determine the amount of Common Stock on the balance sheet, we need to subtract the liabilities and equity from the assets. The Common Stock is part of the equity section of the balance sheet.
Assets:
Cash = $146,136
Patents and copyrights = $620,190
Accounts receivable = $126,969
Tangible net fixed assets = $1,700,000
Inventory = $307,359
Total Assets = $146,136 + $620,190 + $126,969 + $1,700,000 + $307,359 = $2,900,654
Liabilities and Equity:
Accounts payable = $217,320
Notes payable = $139,247
Accumulated retained earnings = $1,100,000
Long-term debt = $767,105
Total Liabilities and Equity = $217,320 + $139,247 + $1,100,000 + $767,105 = $2,223,672
Now, to find the Common Stock, we subtract the Liabilities and Equity from the Total Assets:
Common Stock = Total Assets - Total Liabilities and Equity
Common Stock = $2,900,654 - $2,223,672
Common Stock = $676,982
Therefore, the amount of Common Stock on the 2015 balance sheet for Cornell Corp. is $676,982.
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Han Products manufactures 57,500 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows:
Direct materials $ 6.25
Direct labour 12.25
Variable overhead 5.25
Fixed overhead 10.65
Total cost per part $ 34.40
An outside supplier has offered to sell 50,500 units of part S-6 each year to Han Products for $30.25 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $106,000. However, Han Products has determined that one-third(1/3) of the fixed overhead being applied to part S-6 will be avoided if part S-6 is purchased from the outside supplier.
To determine whether Han Products should make or buy part S-6, we need to compare the costs of manufacturing it in-house versus buying it from the outside supplier. Here's how we can calculate the costs for each option:
Make Option:
Direct materials cost per unit: $6.25
Direct labor cost per unit: $12.25
Variable overhead cost per unit: $5.25
Fixed overhead cost per unit: $10.65 (applied to all 57,500 units)
Total cost per unit: $34.40
Total fixed overhead cost applied to part S-6: $10.65 * 57,500 units = $612,375
Total cost of manufacturing part S-6 in-house:
Total cost per unit * Number of units = $34.40 * 57,500 = $1,978,000
Additional fixed overhead cost if part S-6 is manufactured in-house: $612,375
Total cost of manufacturing part S-6 in-house, including additional fixed overhead cost:
$1,978,000 + $612,375 = $2,590,375
Buy Option:
Purchase cost per unit from the outside supplier: $30.25
Number of units purchased: 50,500
Total cost of purchasing part S-6 from the outside supplier:
Purchase cost per unit * Number of units = $30.25 * 50,500 = $1,525,125
Additional rental cost if facilities are rented to another company: $106,000
Total cost of buying part S-6 and renting facilities to another company:
$1,525,125 + $106,000 = $1,631,125
Avoided fixed overhead cost if part S-6 is purchased: One-third (1/3) of $612,375 = $204,125
Total cost of buying part S-6, considering avoided fixed overhead cost:
$1,631,125 - $204,125 = $1,427,000
Based on the analysis, here are the cost comparisons:
Make Option:
Total cost of manufacturing part S-6 in-house: $2,590,375
Buy Option:
Total cost of buying part S-6, considering avoided fixed overhead cost: $1,427,000
Comparing the two options, it is more cost-effective for Han Products to buy part S-6 from the outside supplier, as it results in a lower total cost of $1,427,000 compared to the total cost of $2,590,375 for manufacturing it in-house.
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Extreme liberalism would invite totalitarianism. do you agree or
disagree? Explain your answer
Extreme liberalism would invite totalitarianism. It can be both agreed and disagreed upon, depending on one's perspective.
Liberalism is a political and social ideology that emphasizes individual rights, equality, and liberty. Extreme liberalism can refer to a political ideology that is excessively focused on individual rights and freedoms, even if it goes against the common good, societal norms, or regulations.Extreme liberalism often opposes the government's regulation, public institutions, and societal customs. This stance may seem like it would be unlikely to lead to totalitarianism. However, if taken too far, extreme liberalism can lead to societal disintegration and instability. In such a society, any group can become the victim of abuse from other groups that are more powerful. Totalitarianism is a form of government that controls all aspects of society. It is characterized by a single-party dictatorship that suppresses all opposition and dissent. This kind of system often arises when there is societal unrest and instability. Totalitarianism is built on the premise that society's problems can be solved by taking complete control of the population. In extreme liberalism, too much freedom and liberty can lead to chaos and anarchy. At such a point, a totalitarian government can be seen as the only way to bring order to society.Therefore, to a large extent, it can be agreed that extreme liberalism could invite totalitarianism if unchecked. However, it's important to note that this is not a universally accepted position. Some may argue that totalitarianism can arise from many other factors and that extreme liberalism is not always a precursor to this kind of government.
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Sheila has a plan to save $45 a month for 18 months so that she has $810 to remodel her bathroom. After 13 months Sheila has saved $510. If the most Sheila can possibly save is $70 per month, which of the following statements is true? a. Sheila will meet her goal and does not need to adjust her plan. b. Sheila must save $50 per month to achieve her goal. c. Sheila must save $60 per month to achieve her goal. d. Sheila will not be able to achieve her go
Answer:
Sheila has a plan to save $45 a month for 18 months so that she has $810 to remodel her bathroom. After 13 months Sheila has saved $510. If the most Sheila can possibly save is $70 per month, which of the following statements is true?
a.} Sheila will meet her goal and does not need to adjust her plan.
b} Sheila must save $50 per month to achieve her goal.
c} Sheila must save $60 per month to achieve her goal. <<CORRECT
d} Sheila will not be able to achieve her goal.
Explanation:
Edge 2021
Sheila will meet her goal and does not need to adjust her plan. The correct option is a.
What is the introduction of savings?Savings is the amount left over after an individual's consumption demands have been satisfied. Individuals who make purchases using credit and are subject to increasing EMI obligations would have little to no monthly savings. Savings aid in accumulating money for the future.
To find out if Sheila will be able to achieve her goal, we need to determine how much more she needs to save in the remaining 5 months.
Sheila's goal is to save $810, and after 13 months, she has saved $510. Therefore, she needs to save an additional:
$810 - $510 = $300
in the remaining 5 months.
If the most Sheila can save is $70 per month, then the maximum amount she can save in the remaining 5 months is:
$70 x 5 = $350
Since $350 is more than the $300 she needs to save, Sheila will be able to achieve her goal and does not need to adjust her plan.
Thus, the ideal selection is option a.
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According to the Pauli Exclusion Principle for n = 4, the occupation limit of electrons is:
According to the Pauli Exclusion Principle for n = 4, the occupation limit of electrons is 32.
The Pauli Exclusion Principle is a fundamental principle in quantum mechanics that states that no two electrons in an atom can have the same set of quantum numbers. The quantum number "n" represents the principal quantum number, which indicates the energy level or shell of an electron. In this case, n = 4 refers to the fourth energy level or the fourth shell.
Each energy level or shell can hold a maximum number of electrons based on the formula 2n², where n is the principal quantum number. Therefore, for n = 4, the occupation limit can be calculated as 2 × 4² = 2 × 16 = 32. This means that the fourth energy level can accommodate a maximum of 32 electrons according to the Pauli Exclusion Principle.
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A turnaround strategy involves reversing performance decline and reinvigorating growth toward profitability. The firm should analyze the external and internal environments carefully. What will the internal analysis reveal?
Multiple Choice
customer groups that find the product attractive
market segments that are likely to be interested in the product
potential actions for reducing costs
locations that would improve traffic
A turnaround strategy involves reversing performance decline and reinvigorating growth toward profitability. The firm should analyze the external and internal environments carefully.The internal analysis in a turnaround strategy will reveal potential actions for reducing costs.
In a turnaround strategy, the firm aims to reverse its performance decline and achieve profitability. To accomplish this, it is crucial to analyze both the external and internal environments of the company.
The external analysis involves examining factors such as market conditions, customer preferences, and competitive landscape. This analysis helps identify market segments that are likely to be interested in the product and customer groups that find the product attractive.
However, the internal analysis focuses on evaluating the company's internal resources, capabilities, and operations. It involves assessing the firm's strengths, weaknesses, and areas of improvement. One critical aspect of the internal analysis in a turnaround strategy is identifying potential actions for reducing costs.
By analyzing the internal environment, the firm can identify inefficiencies, cost drivers, and areas where cost reduction measures can be implemented. This may include streamlining operations, improving production processes, reducing overhead expenses, renegotiating contracts, or optimizing the supply chain. The goal is to identify opportunities for cost savings and operational efficiency that can contribute to turning around the company's performance.
The internal analysis in a turnaround strategy focuses on identifying potential actions for reducing costs within the company. This analysis helps the firm identify areas of improvement and implement measures to enhance operational efficiency and profitability.
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A 20 year maturity bond with par value $1000 makes semiannual coupon payments of a coupon rate of 6% Required: Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $960. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.) Check my won onded to buy b. Find the bond equivalent and effective annual yield to maturity of the bond the bond price $1.000 (Do not round intermediate calculations. Round your answers to 2 decimal places Banned to my Edward e. Find the bond equivalent and effective annut yield to maturity of the bond if the bond prices $1040 Round your intermediate calculations to 4 decimal places.
The required bond equivalent and effective annual yield to maturity of the bond when the bond price is $960 are 6.33% and 6.52%, respectively.
Given data:
Maturity period (N) = 20 years;
Coupon rate (C) = 6%;
Par value (FV) = $1000;
Bond price (PV) = $960
The semi-annual coupon rate (r) can be calculated using the formula:
r = C / (2 * FV)
Putting the given values in the above formula, we get:
r = 6% / (2 * $1000)
= 0.03
The semi-annual coupon payment (Cn) can be calculated using the formula:
Cn = r * FV
= 0.03 * $1000
= $30
Now, the yield to maturity (YTM) of the bond can be calculated using the formula:
Pv = Cn / (1 + YTM/2)^2 + Cn / (1 + YTM/2)^3 + ... + Cn / (1 + YTM/2)^N*2 + FV / (1 + YTM/2)^N*2
Putting the given values in the above formula, we get:
$960 = $30 / (1 + YTM/2)^1 + $30 / (1 + YTM/2)^2 + ... + $30 / (1 + YTM/2)^40 + $1000 / (1 + YTM/2)^40
By trial and error method, we can find out that the
bond equivalent yield (BEY) to maturity of the bond when the bond price is $960 is approximately 6.33% and
the effective annual yield (EAY) to maturity of the bond is approximately 6.52%.
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Dividend payment Personal Finance Problem Kathy Snow wishes to purchase shares of Countdown Computing, Inc. The company's board of directors has declared a cash dividend of $0.65 to be paid to holders of record on Wednesday, Sep. 21. a. What is the last day that Kathy can purchase the stock and still receive the dividend? b. What day does this stock begin trading ex dividend? c. What change, if any, would you expect in the price per share when the stock begins trading on the ex-dividend day? d. Kathy believes that she will be able to sell the stock for $49.86 in a few months. Tomorrow is the ex-dividend date, and the stock price now is $45.86. Is she better off buying the stock now so she can capture the dividend, or should she wait until tomorrow, miss the dividend, and buy the stock at a slightly lower price? a. What is the last day that Kathy can purchase the stock (trade date) and still receive the dividend? (Select the best answer below.) A. Monday, Sep. 19 B. Sunday, Sep. 18 C. Wednesday, Sep. 21 OD. Friday, Sep. 16
The last day that Kathy can purchase the stock and still receive the dividend is Friday, Sep 16. The stock begins trading ex-dividend on Monday, Sep 19. The change you expect in the price per share when the stock begins trading on the ex-dividend day is drop of $0.65.
A. To be a holder of record on Wednesday, Sep. 21, Kathy must purchase the stock at least three business days prior to Sep. 21 (which is how long it takes for the trade to settle). If the dividend is paid on Wednesday, Sep. 21, Kathy must buy the stock no later than the prior Friday, Sep. 16.
B. The ex-dividend date is the first day on which a stock trades without the dividend. Since it takes three business days to settle a trade, the ex-dividend date must be two business days prior to the holder of record date. Therefore, the stock begins trading ex-dividend on Monday, Sep. 19.
c. The price per share usually drops by the amount of the dividend on the ex-dividend date. On the ex-dividend date, the stock price usually drops by the amount of the dividend. This is because the dividend is no longer part of the stock's value, so investors are willing to pay less for the stock. In this case, the dividend is $0.65, so the price per share would be expected to drop by $0.65 on the ex-dividend date.
d. Kathy is better off buying the stock now so she can capture the dividend. If Kathy buys the stock now, she will receive the dividend. If she waits until tomorrow to buy the stock at a lower price, she will not receive the dividend. Therefore, it is better for her to buy the stock now so she can capture the dividend and sell the stock for $49.86 in a few months on Friday, Sep. 16
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Engineering Economy - Summer 2022 Mohammad Alajmi Homework: HW 4 Question 3, Problem 4-7 (algorithmic) HW Score: 75%, 3 of 4 points O Points: 0 of 1 Save A company is considering buying a CNC machine. In today's dollars, it is estimated that the maintenance costs for the machine (paid at the end of each year) will be $29,000, $31,000, $34,000, $37,000, and $39,000 for years 1 to 5, respectively. The general inflation rate (7) is estimated to be 4% per year, and the company will receive 13% return (interest) per year on its invested funds during the inflationary period. The company wants to pay for maintenance expenses in equivalent equal payments (in actual dollars) at the end of each of the five years. Find the amount of the company's payments. The amount of the company's payments is $ thousand. (Round to the nearest thousand.) 06/17/22 1:14 AM
The company's payments for the CNC machine maintenance costs amount to approximately $1.22 million, rounded to the nearest thousand dollars.
To find the amount of the company's payments for the CNC machine maintenance costs, we need to account for inflation and calculate the equivalent equal payments in actual dollars.
Given:
Maintenance costs for years 1 to 5: $29,000, $31,000, $34,000, $37,000, $39,000
Inflation rate: 4% per year
Return (interest) rate: 13% per year
To calculate the equivalent equal payments, we will use the concept of present worth. The present worth is the current value of future cash flows.
Step 1: Adjust the maintenance costs for inflation to bring them to today's dollars.
The adjusted maintenance costs are calculated by dividing each year's maintenance cost by the cumulative inflation factor.
Cumulative inflation factor = (1 + inflation rate)^number of years
In this case, the cumulative inflation factor = (1 + 0.04)^5 = 1.2167.
Adjusted maintenance costs:
Year 1: $29,000 / 1.2167 = $23,810
Year 2: $31,000 / 1.2167 = $25,448
Year 3: $34,000 / 1.2167 = $27,935
Year 4: $37,000 / 1.2167 = $30,402
Year 5: $39,000 / 1.2167 = $32,087
Step 2: Calculate the equivalent equal payments using the present worth formula.
Present worth = (annual payment) * (1 - (1 + interest rate)^(-number of years)) / interest rate
Substituting the values:
$23,810 + $25,448 + $27,935 + $30,402 + $32,087 = (annual payment) * (1 - (1 + 0.13)^(-5)) / 0.13
Simplifying the equation, we can solve for the annual payment:
Annual payment = $139,682.63 / (1 - 0.8857)
Annual payment = $139,682.63 / 0.1143
Annual payment = $1,220,161.29
Therefore, the amount of the company's payments for the CNC machine maintenance costs is $1.22 million (rounded to the nearest thousand).
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2. Limitations of Electronic Business can be categorised as technical and non-technical.Using an organisation of your choice,identify and explain three (3 technical and non-technical challenges each associated with doing business online.
Limitations of Electronic Business can be categorized as technical and non-technical.
Using an organization of your choice, identify and explain three (3 technical and non-technical challenges each associated with doing business online.
1. Technical challenges associated with electronic business include technical challenges such as Data security issues: One of the main technical challenges of electronic business is the security of the customer's data. Organizations must be able to protect their customer's sensitive data such as credit card numbers, addresses, and other personal information that can be used to steal their identity. These data breaches can affect the reputation of the organization, which could lead to a loss of customers.
Dependence on Technology: Online business requires constant reliance on technology. This means that businesses can be vulnerable to technical issues such as server failures, power outages, and other network problems that may affect their services. As a result, this can result in customer dissatisfaction and may result in a loss of revenue. Complexity: Another technical challenge of electronic business is complexity.
Running a successful online business requires a thorough understanding of complex software systems, programming languages, and other technical knowledge. For organizations that do not have in-house IT expertise, this could lead to significant issues and maybe a considerable barrier to entry.
2. Non-Technical ChallengesNon-technical challenges include Trust: Customers must have trust in the online business they are dealing with. This means that online businesses must ensure that they follow ethical and transparent business practices to build trust with their customers. Customers must be confident that their transactions are safe and secure before they can engage in any online business.
Regulations: Online businesses must adhere to strict regulations that govern the use of personal data. Therefore, businesses must be able to comply with legal requirements to avoid legal liabilities and fines. These regulations could include GDPR, COPPA, and other data protection laws that must be adhered to. If businesses fail to comply with these regulations, they could be fined or even shut down.
International Business: Conducting business in different countries poses unique challenges to online businesses. Businesses must be able to cater to the language and cultural requirements of their customers, which may require hiring people who understand the language and culture of their target market. This could increase the cost of doing business for online businesses.
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one of the main critiques of the learning organization litreature is that management are typically unlikely to 'give up' and share power in the way necessary to facilitate proper learning and self reflection. Do you agree with this? If so what, if anything can sharing power with workers has potential advantages for all
Yes, I agree with the statement that one of the main critiques of the learning organization literature is that management is typically unlikely to 'give up' and share power in the way necessary to facilitate proper learning and self-reflection.
What sharing power with workers can do to achieve potential advantages for all are given below:
Shared power with workers can potentially enable to attain the following benefits: Improved innovation and creativity: When power is shared among all employees, it provides an opportunity to share their ideas, insights, and experiences freely. It enables to work collaboratively and thus, generates more creative and innovative ideas that help to achieve success in the organization.
Employees feel valued: When power is shared with workers, it shows that the management values the input and ideas of all employees. It makes employees feel more motivated and engaged in their work, and they become more committed to achieving organizational goals.
Increased job satisfaction and retention: Sharing power with workers provides them autonomy and a sense of control in the decision-making process. It makes employees feel satisfied and appreciated, and hence, it motivates them to stay with the organization for a longer time.
Better problem-solving: When power is shared with workers, it helps to involve everyone in the decision-making process, and thus, enables to solve problems and make decisions more efficiently and effectively.
Increased performance: Shared power promotes a positive work environment, and employees feel valued, motivated, and engaged in their work. Hence, it results in increased performance and productivity in the organization.
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10 points Save A QUESTIONS Payton Bags (PB) is a designer of high-quality backpacks. Each design is made in small batches. Each spring, PB comes out with new designs for the for the backpack. The comp
Cost drivers are various factors that influence the cost of a commodity or a service and cost pools are the groups of costs that are associated with a specific activity.
Cost hierarchy is method of categorizing costs based on their relationship to the production process. Hierarchy for the following data is as follows-
1. Cost hierarchy level for each cost category:
Direct materials-backpacks and purses: Unit-level cost
Direct manufacturing labor-backpacks and purses: Unit-level cost
Setup: Batch-level cost
Shipping: Batch-level cost
Design: Product-level cost
Plant utilities and administration: Facility-level cost
2. Cost driver for each cost category:
Direct materials & labor -backpacks and purses: No. of backpacks and purses. (It is easily traceable with respect to no. of output produced)
Set up & Shipping: No. of Batches (as the costs incurred for each batch changeover and related)
Design cost: No. of design or design hour (It is attributed to design per product)
Plant utilities and administration: Total production hour (It is related to overall operation and maintenance of the facility)
3. To calculate the budgeted cost per unit of cost driver for each cost category:
Direct materials—purses:
Cost per unit of cost driver: $342,200 / 2,900 = $118 per purse
Direct materials—backpacks:
Cost per unit of cost driver: $470,850 / 6,450 = $73 per backpack
Direct manufacturing labor—purses:
Cost per unit of cost driver: $87,000 / 2,900 = $30 per hour of production for purses
Direct manufacturing labor—backpacks:
Cost per unit of cost driver: $116,100 / 6450 = $18 per hour of production for backpacks
Setup:
Cost per unit of cost driver: $90,675 / 195 = $465 per batch
Shipping:
Cost per unit of cost driver: $71,370/ 195 = $366 per batch
Design:
Cost per unit of cost driver: $165,000 / 6 = $27,500 per design
Plant utilities and administration:
Cost per unit of cost driver: $221,000 / 4,250 = $52 per hour of production
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The complete question is:
Payton Bags (PB) is a designer of high-quality backpacks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and for the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows:
Payton Bags
Budget for Costs and Activities
For the Year Ended February 28, 2014
Direct materials—purses = $342,200
Direct materials—backpacks = 470,850
Direct manufacturing labor—purses = 87,000
Direct manufacturing labor—backpacks = 116,100
Setup = 90,675
Shipping = 71,370
Design = 165,000
Plant utilities and administration = 221,000
Total = $1,564,195
Other budget information follows:
Backpacks, Purses, Total
Number of bags = 6,450, 2,900, 9,350
Hours of production= 1,665, 2,585, 4,250
Number of batches = 115, 80, 195
Number of designs = 4, 2, 6
1. Identify the cost hierarchy level for each cost category.
2.Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver.
3. Calculate the budgeted cost per unit of cost driver for each cost category.
a specification that specifies the function performance and interfaces associated with a product
The specification you are referring to is known as a "functional specification." A functional specification outlines the specific functions and performance requirements that a product or system should exhibit, as well as the interfaces it should have. It provides a detailed description of the desired functionality, including inputs, outputs, processing logic, and any constraints or limitations.
A functional specification typically includes information such as:
1. Functional requirements: This defines the specific functions or operations the product should perform and the desired performance criteria or benchmarks.
2. Performance requirements: This specifies the expected performance levels, such as speed, accuracy, capacity, and response times.
3. Interface requirements: This outlines the interfaces or connections the product should have with other systems, devices, or users, including data formats, protocols, and communication channels.
4. Constraints and limitations: This includes any constraints or limitations on the product, such as regulatory requirements, compatibility with existing systems, or operational restrictions.
By providing a clear and detailed description of the desired function, performance, and interfaces, a functional specification serves as a guide for product development, ensuring that the final product meets the specified requirements and aligns with the intended purpose.
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Whether or not firms can pass higher costs that they incur on to consumers depends on _________.
Select the correct answer below:
a)elasticity
b)quantity demanded
c)price
d)quantity supplied
Whether or not firms can pass higher costs that they incur on to consumers depends on Elasticity. Option A is correct.
Elasticity happens when request answers changes in cost or different variables. Demand that is inelastic means that it doesn't change when economic factors change.
The relative price responsiveness of a supply or demand curve is referred to as its elasticity: A curve's elasticity determines how much quantity will fluctuate with price changes. On the other hand, even with significant price shifts, it will be more challenging to adjust consumption quantities for curves that are more inelastic.
The levels of a product's price, the kind of product or service it is, income levels, and the availability of any potential substitutes are just a few of the many factors that influence a product's demand elasticity. Products with high prices typically have a high degree of elasticity because consumers are more likely to purchase them at a lower price if prices fall.
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