Suppose that a consumer has an initial endowment of 48.00 eggs. He is able to sell these eggs freely on the market for $1.00 per egg, but has no other income. However, he still demands some eggs himself. His demand is given by the following equation:
x1 = 16.00+ m/4p1
The price for eggs increases to $2.00 per egg. Calculate this consumer's endowment income effect.

Answers

Answer 1

Answer and Explanation:

The computation of the consumer's endowment income effect is as follows:

But before that following calculations must be done

Beginning value of the endowment,

m = 48 × 1

= 48

Now New value of endowment,

m' = 48 × new price

= 48 × 2

= 96

so,

Consumer's endowment income effect is

= x1(p1', m') - x1(p1', m)

= 28 - 22

= 6 eggs.

Working notes:

(x1(p1', m') is

= 16 + (96 ÷ 4 × 2)

= 16 + (96 ÷ 8)

= 16 + 12

= 28

And, x1(p1', m) is

= 16 + (48 ÷ 4 × 2)

= 16 + (48 ÷ 8)

= 16 + 6

= 22


Related Questions

Communication begins with the self

Answers

Answer:

In psychology, this refers to your sense of self-knowing your perspective, thoughts, values, feelings, and desires. It also means articulating your thoughts and emotional needs in a way that is congruent, exposing who you truly are.

Explanation:

For journal entries 1 through 12, select the letter of the explanation that most closely describes it in the space beside each entry. You can use letters more than once. To record receipt of unearned revenue. To record this period's earning of prior unearned revenue. To record payment of an accrued expense. To record receipt of an accrued revenue. To record an accrued expense. To record an accrued revenue. To record this period's use of a prepaid expense. To record payment of a prepaid expense. To record this period's depreciation expense.

Answers

Question Completion:

For each of the following entries, select the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)

A. To record receipt of unearned revenue

B. To record this period's earning of prior unearned revenue

C. To record payment of an accrued expense

D. To record receipt of an accrued revenue

E. To record an accrued expense

F. To record an accrued revenue

G. To record this period's use of a prepaid expense

H. To record payment of a prepaid expense

I To record this period's depreciation expense

Journal Entries

Insurance Expense 1,900

Prepaid Insurance 1,900

Salaries Payable 3,900

Cash 3,900

Prepaid Rent 3,200

Cash 3,200

Salaries Expense 4,900

Salaries Payable 4,900

Interest Receivable 1,900

Interest Revenue 1,900

Cash 3,900

Accounts Receivable (from consulting) 3,900

Cash 5,900

Unearned Professional Fees 5,900

Cash 4,300

Interest Receivable 4,300

Rent Expense 8,000

Prepaid Rent 8,000

Interest Expense 6,300

Interest Payable 6,300

Depreciation Expense 1,300

Accumulated Depreciation 1,300

Unearned Professional Fees 1,900

Professional Fees Earned 1,900

Answer:

Journal Entries with appropriate descriptions:

Insurance Expense 1,900

Prepaid Insurance 1,900

G. To record this period's use of a prepaid expense

Salaries Payable 3,900

Cash 3,900

C. To record payment of an accrued expense

Prepaid Rent 3,200

Cash 3,200

H. To record payment of a prepaid expense

Salaries Expense 4,900

Salaries Payable 4,900

E. To record an accrued expense

Interest Receivable 1,900

Interest Revenue 1,900

F. To record an accrued revenue

Cash 3,900

Accounts Receivable (from consulting) 3,900

D. To record receipt of an accrued revenue

Cash 5,900

Unearned Professional Fees 5,900

A. To record receipt of unearned revenue

Cash 4,300

Interest Receivable 4,300

D. To record receipt of an accrued revenue

Rent Expense 8,000

Prepaid Rent 8,000

G. To record this period's use of a prepaid expense

Interest Expense 6,300

Interest Payable 6,300

E. To record an accrued expense

Depreciation Expense 1,300

Accumulated Depreciation 1,300

I To record this period's depreciation expense

Unearned Professional Fees 1,900

Professional Fees Earned 1,900

B. To record this period's earning of prior unearned revenue

Explanation:

Journal entries are usually recorded to adjust revenue and expenses to the accrual basis of accounting and to match expenses to the period's revenue and vice versa.  Short narrations are provided after recording each transaction.  The purpose is to provide some descriptions of the transaction so that it can be understood by another person reviewing the records.

Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $130,000 each and the military arms unit signs a contract to purchase 3,500 of them now and another 6,500 one year from now, what is the equivalent annual cost of the contract over a 5-year period at 10% per year interest

Answers

Answer:

$258,434,439.9

Explanation:

Calculation for what is the equivalent annual cost of the contract

Equivalent annual cost = [3,500 x $130,000 x A/P(10%, 5) ]+ [6,500 x $130,000 x P/F(10%, 5) x A/P(10%, 5)]

Equivalent annual cost = [$455,000,000 x 0.2638] + [$845,000,000 x 0.6209 x 0.2638]

Equivalent annual cost =$120,029,000+$138,405,439.9

Equivalent annual cost =$258,434,439.9

Therefore the equivalent cost of the contract is determined to be $258,434,439.9

*80 points* Introduce a blog owner (a company, organization, or school). Analyze a professional blog owned by a company or by a not-for-profit organization. Professional blogs are different from personal blogs in many ways. You'll compare these two types of blogs.

Compare and contrast the professional blog that you have chosen with the personal blog on the following dimensions:

Topic: What is the topic of the professional blog? How is it different from the topic of the personal blog?
Design: How do the designs of the two blogs (layout, font, color theme, images, styles, and so on) vary?
Structure and Content: Explain how the structure and the presentation of data and content in the two blogs vary?
Audience: (followers/subscribers) Who is the target audience for each blog? What is the targeted demographics for each blog? What kind of audience does each blog attract? Is the audience different from the intended audience? How is the audience for your personal blog different from the audience for the professional blog?
Other Social Media Links: Which other types of social media are linked to each blog? How do they help drive more traffic to the blog? How are the social media links in the nonpersonal blog different from the links in your personal blog?
Evaluation: Summarize how the blogs are different.

Answers

Answer: A blog (a truncation of "weblog") is a discussion or informational website published on the ... However, blog owners or authors often moderate and filter online comments to remove hate speech or other offensive content. ... by inventing new ways to navigate through huge amounts of information present in the blogosphere

Explanation: i hope that helps you!

Bridges and Lloyd, an accounting firm, provides consulting and tax planning services. For many years, the firm's total administrative cost (currently $250,000) has been allocated to services on the basis of billable hours to clients. A recent analysis found that 65% of the firm's billable hours to clients resulted from tax planning services, while 35% resulted from consulting services. The firm, contemplating a change to activity-based costing, has identified three components of administrative cost, as follows: Staff Support $ 180,000 In-house computing charges 50,000 Miscellaneous office costs 20,000 Total $ 250,000 A recent analysis of staff support found a strong correlation between the number of staff personnel and the number of clients served (consulting, 20; tax planning, 60). In contrast, in-house computing and miscellaneous office cost varied directly with the number of computer hours logged and number of client transactions, respectively. Consulting consumed 30% of the firm's computer hours and had 20% of the total client transactions. If Bridges and Lloyd switched from its current accounting method to an activity-based costing system, the amount of administrative cost chargeable to consulting services would:

Answers

Answer: Decrease by $23,500

Explanation:

The Consulting cost under their current accounting system is:

= 250,000 * 35%

= $87,500

Under Activity based:

Staff support for Consulting:

20 goes to Consulting, 60 to tax planning.

Total = 20 + 60 = 80

Consulting is 20/80 of Staff support amount

= 20/80 * 180,000

= $45,000

In house computing charges for Consulting

Consulting consumed 30% of the firm's computer hours.

= 30% * 50,000

= $15,000

Miscellaneous office costs

Consulting consumed 20% of total client transactions

= 20% * 20,000

= $4,000

Total cost for Consulting under Activity based = 45,000 + 15,000 + 4,000

= $64,000

Difference = 87,500 - 64,000

= $23,500

How you see your self can make a great different
in how
you Communicate

Answers

Answer: It is not what you say but how you say it.

Explanation: I have always been a person who communicates well but with my flaws. Sometimes the tone of voice can be betrayed, so it is important to use the right one so that people can feel the warmth of the words. The way things are said is more than what is said. It is not a matter of lying but of saying things in a way that is real but at the same time within a framework of respect.

When sales increase by 3%, which of the following should also increase by 3% in a merchandising company?
A. Variable cost.
B. Fixed cost.
C. Gross margin.
D. Contribution margin.
E. Net operating income.
When sales increase by 13%, which of the following should increase by more than 13% in a merchandizing company?
A. Variable cost.
B. Fixed cost.
C. Gross margin.
D. Contribution margin.
E. Net operating income.

Answers

Answer:

Part 1

C. Gross margin

E. Net operating income

Part 2

C. Gross margin

E. Net operating income

Explanation:

A merchandizing company bought goods for resale rather than manufacturing and selling as seen with manufacturing companies.

The items which vary with sales in a merchandizing company are Gross Margin and Net Operating income. Such are the items that will increase with an increase in Sales.

A $600,000 state lottery prize is spread evenly over twelve years ($50,000 a year) (Alternative 1), or you may take a lump distribution of $452,000 (Alternative 2). If you can earn 8 percent, calculate the present values of both alternatives. Use Appendix D to answer the question. Round your answers to the nearest dollar.

Answers

Answer and Explanation:

The computation of the present values of both alternatives is shown below:

For alternative one, the lump sum amount is

= Yearly payment × PVIFA factor at 8% for 12 years

= $50,000 × 7.5361

= $376,805

And, in the alternative 2, the lumpsum amount i.e. present value is $452,000

So as we can see that the alternative 2 is better as the lumspsum amount is high as compared with the alternative 1

Assume that price level in the ABC Islands, a U.S. trading partner, increases signaling inflation in the ABC Island economy.

Using aggregate demand aggregate supply analysis, explain the impact of the increased price level on the United States economy. If the Federal Reserve wants to repair the effects on the U.S. economy noted above, identify a policy action it might undertake.Explain the impact of the Fed action on each of the following:

a. Output
b. Price level
c. The international value of the U.S. dollar

Answers

Answer is given below :

Explanation:

Inflation on ABC Island makes goods produced by ABC Island more expensive and makes goods made in the US cheaper. Thus the demand for goods made in the US will increase, the US export demand will increase, thereby the US net exports will increase and the US total demand will increase. The AD curve increases the real, shift price level and real GDP in the US economy. The unemployment rate will fall and demand for the US dollar will rise, causing the dollar to appreciate.In the following graph, the initial equilibrium is at point A, where AD0 (total demand) and SRAS0 (low-run total supply) intersection curves, equilibrium price levels P0 and true GDP Y0. As total demand increases, AD0 shifts to the right of AD1, blocking SRAS0 at point B with high P1 and high true GDP Y1. high total demand leads to inflation, the Fed wants to reduce inflation by reducing total demand. This can be done by using a contract monetary policy, by raising the required monetary ratio, by raising the discount rate, or by selling federal securities on the open market. Any of these tools will reduce the money supply, thereby increasing interest rates, reducing investment and reducing total demand. As a result,Output will decrease.Price will decrease.Low production reduces US import demand, thereby reducing foreign exchange demand. Foreign currency depreciation and the US dollar are appreciated.

Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold its two-year-old ovens at a discount for $700,000. Great Harvest incurred and paid freight costs of $35,000, and its employees ran special electrical connections to the ovens at a cost of $5,000. Labor costs were $37,800. Unfortunately, one of the ovens was damaged during installation, and repairs cost $5,000. Great Harvest then consumed $900 of bread dough in testing the ovens. It installed safety guards on the ovens at a cost of $1,500 and placed the machines in operation.
Prepare a schedule showing the amount at which the ovens should be recorded in Great Harvest's Equipment account.

Answers

Answer:

Particulars                                  Amount

Purchase price                         $700,000

Add: Freight cost                     $35,000

Add: Electrical connections    $5,000

Add: Labor costs                      $37,800

Add: Bred dough used            $900

Add: Safety guards                  $1,500

Total cost of Equipment         $780,200

Note: Repairs cost of $5,000 will not be included

Arthur Industries entered into the following transactions during the month of June. Purchased supplies for $5,300 cash. Paid $4,480 for salaries and wages for the month of June. Paid $560 in advance for July rent. Provided $13,400 in services on account. Paid $800 on accounts payable. Received $310 from customers as deposits for future services. Received a bill for $410 from the plumber who repaired a broken pipe in the restrooms, but will not pay the bill until July. Purchased equipment for cash of $740.

Answers

Answer:

S/N   Account Titles and Explanation      Debit     Credit

A       Supplies                                             $5,300

              Cash                                                             $5,300

          (To record the purchase of supplies for cash)

B       Salaries and wages expense            $ 4,480

              Cash                                                             $4,480

         (To record the payment of wages and salaries)

C        Prepaid rent                                       $ 560

               Cash                                                             $560

          (To record the payment of prepaid rent for July)

D        Accounts receivable                           $13,400

                Service revenue                                         $13,400

         (To record the services provided on account)

E         Accounts payable                               $800

                   Cash                                                          $800

           (To record the payment made on Accounts payable)

F          Cash                                                     $310

                    Unearned revenue/Deferred revenue    $310

           (To record the unearned services revenue)

G          Repairs and maintenance expense  $410

                     Accounts payable                                     $410

             (To record the accounts payable for repairs expenses incurred)

H           Equipment                                          $740

                      Cash                                                           $740

             (To record the purchase of equipment for cash)

Tax rate 21% Estimated tax payment 21,000 Investment cost and ending fair values for 20X1 and 20X2: 20X1 20X2 Cost 100,000 100,000 Fair value 110,000 134,000 Total gain 10,000 34,000 20X1 income statement information: Sales 1,670,200 Expenses 1,536,600 Assuming the investement is long-term, what is the accumulated other comprehensive income on the 20X2 balance sheet?

Answers

Answer:

34,000

Explanation:

The computation of the accumulated other comprehensive income on the 20X2 balance sheet is shown below:

In the given situation , since the investment is a long term and it would also be classified as an available for securities So if there is any unrealized gain or loss so the same would be reported

As we can see there is a gain of 34,000 in 20X2 so the same is to be shown in the accumulated other comprehensive income

Principles are a. the obligations businesses have to maximize their positive impact and minimize their negative impact. b. mores, values, and customs that guide behavior in general. c. laws and regulations that guide behavior in the world of business. d. specific and pervasive boundaries for behavior that are universal and absolute. e. the mores, values, and customs that parents teach their children.

Answers

Answer:

b. mores, values, and customs that guide behavior in general.

Explanation:

It is correct to say that principles are the customs and values that guide behavior in general. It is through the principles of society that are acquired through cultural, political and social interactions, that the bases that will form the laws and legal norms of a society are formed.

It is also correct to affirm that each location has its own set of principles, so that they are not universal customs and values, nor encompassing only in the business world, but encompassing in all areas of human life.

A design consultant says your dining area is too crowded and redesigns your space with three fewer tables to resolve the problem. Each table yields an average of $150 / day. You are closed Mondays. About how much money will you lose in a year by removing three tables?

Answers

Answer:

$140,400

Explanation:

Items from the 2015 income statement, statement of retained earnings, and balance sheet of Activision Blizzard, Inc., are listed below in alphabetical order. Solve for the missing amounts. (Loss amounts should be indicated with a minus sign.)

Activation Blizzard, Inc
Common Stock $3180
Dividends 130
Net Income (Loss)
Retained Earnings, Beginning of Year 3614
Retained Earnings, End of Year 5047
Total Assets 15,584
Total Expenses
Total Liabilities 7,357
Total Revenues 4,567

Answers

Answer and Explanation:

The computation of the missing amounts are shown below:

Common Stock $3,180  

Dividends $130  

Net income (loss) $1,563 (($5,047 - $3,614) + $130)  

Retained earnings, beginning of year $3,614  

Retained earnings, end of year $5,047  

Total assets $15,584  

Total expenses $3,004  ($4,567 - $1,563)  

Total liabilities $7,357  

Total revenues $4,567

The calcuation of the missing amounts are as follows:

Common Stock $3,180  

Dividends $130  

Net income (loss) $1,563 (($5,047 - $3,614) + $130)  

Retained earnings, beginning of year $3,614  

Retained earnings, end of year $5,047  

Total assets $15,584    

Total expenses $3,004  ($4,567 - $1,563)  

Total liabilities $7,357  

Total revenues $4,567

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The purpose of a SWOT analysis is to ___.
a. evaluate the marketing strategy that a company has been using.
b. determine the best strategy for the company.
c. compare the company's advantages with that of its competitors.
d. identify important company and environmental factors.
e. formulate goals and objectives for a company.

Answers

Answer: e. formulate goals and objectives for a company.

Explanation:

The SWOT analysis helps in decisions making in businesses. It helps in changing the needs of the organization. It helps the organization to build a plan so as to meet goals and improve the performances, and it also helps in keeping the relevancy in businesses in terms of decisions. It helps in analyzing the deep strengths, threats and weaknesses of the organization. It helps in promoting the overall growth, production, and services. It targets the market competition to develop necessary strategy.

Suppose a city block was going to be used for a parking lot in both New York City and a small town. The opportunity cost would be multiple choice 2 lower in New York City because the alternative uses of the city block are more varied. lower in a small city because the alternative uses of the city block are more varied. greater in New York City because the alternative uses of the city block are more valuable. greater in a small city because the alternative uses of the city block are more valuable.

Answers

Answer:

c. The opportunity cost would be greater in New York City because the alternative uses of the block are more valuable.

Explanation:

Value of piece of land would be much higher in New York City in comparison to a small town.

This means that if a piece of land is used for parking lot in the New York City then the alternative use of such land would be more valuable in comparison to the utilization of similar piece of land in a small town.

Higher the value of alternative uses, higher would be the opportunity cost. So, the opportunity cost would be greater in New York City because the alternative uses of the block are more valuable.

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.

 Basic       Deluxe
Sales (units) 8,000 2,000
Sales price per unit $8,000 $12,000
Variable costs per unit $6,400 $9,000

Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.

Required:
a. What is the sales activity variance for the basic model?
b. Is the sales activity variance for the basic model favorable or unfavorable? What is the sales activity variance for the deluxe model?
c. What is the sales mix variance for the basic model?
d. What is the sales quantity variance for the basic model?
e. What is the sales mix variance for the deluxe model based?
f. What is the sales quantity variance for the deluxe model?

Answers

Answer:

A. $1,600,000

B. Unfavorable

$2,400,000

C. $1,344,000

D. $256,000

E. $2,520,000

F. $120,000

Explanation:

a. Calculation for What is the sales activity variance for the basic model

Sales activity variance=(7,000 - 8,000) *($8,000 - $6,400)

Sales activity variance=$1,000*$600

Sales activity variance= $1,600,000

Therefore Sales activity variance for the basic model will be $1,600,000

b. The sales activity variance for the basic model is UNFAVORABLE reason been that the sales amount is lesser than the budgeted amount

Calculation for What is the sales activity variance for the deluxe model

Sales activity variance=(2,800 - 2,000) *($12,000 - $9,000)

Sales activity variance=800*3,000

Sales activity variance= $2,400,000

Therefore the sales activity variance for the deluxe model will be $2,400,000

c. Calculation for What is the sales mix variance for the basic model

Sales mix variance=[7,000 - 8,000/10,000 *(7,000 + 2,800)] *($8,000 - $6,400)

Sales mix variance=[7,000 - 80% *(7,000 + 2,800)] *($8,000 - $6,400)

Sales mix variance=[7,000 - 80% *(9,800)] *($1,600)

Sales mix variance=[7,000 -7,840 ] *($1,600)

Sales mix variance=840*$1,600

Sales mix variance= $1,344,000

Therefore the sales mix variance for the basic model will be $1,344,000

d. Calculation for What is the sales quantity variance for the basic model

Sales quantity variance=(9,800 - 10,000) x (8,000/10,000) x ($8,000 - $6,400)

Sales quantity variance= $256,000

Therefore the sales quantity variance for the basic model will be $256,000

e. Calculation for What is the sales mix variance for the deluxe model based

Sales mix variance=[2,800 - 2,000/10,000 *(7,000 + 2,800)] *($12,000 - $9,000)

Sales mix variance=[2,800 - 20% *(7,000 + 2,800)] *($12,000 - $9,000)

Sales mix variance=[2,800 - 20% *(9,800)] *($3,000)

Sales mix variance=[2,800 -1,960 ] *($3,000)

Sales mix variance=840*$3,000

Sales mix variance= $2,520,000

Therefore the sales mix variance for the deluxe model based will be $2,520,000

f. Calculation for What is the sales quantity variance for the deluxe model

Sales quantity variance=(9,800 - 10,000) x (2,000/10,000) x ($12,000 - $9,000)

Sales quantity variance= $120,000

Therefore the sales quantity variance for the deluxe model will be $120,000

The question is about variances of a machine distributor.

A Sales Activity Variance Basic

8000 - 7000 = 1000 * $8000

= $8,000,000

B. Unfavorable

Sales Activity Variance Deluxe

2000 - 2800 = 800 * $12000

=9,600,000

Favorable  

Sales Mix Variance Basic

$8000 - $6400 = $1600

1000 * $1600 = $1,600,000

Sales Mix Variance Deluxe

$12000 - $9000 = $3000

800 * $3000 = $2,400,000

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Assume Intel Corporation (INTC) and Texas Instruments (TXN) report the following information. Intel Corp Texas Instruments ($ millions) Sales PPE, net Sales PPE, net 2015 $34,209 $15,768 $12,580 $3,918 2016 38,826 17,111 13,392 3,899 Compute the 2016 PPE turnover for both companies. a. INTC: 2.27 TXN: 3.44 b. INTC: 2.17 TXN: 3.21 c. INTC: 2.50 TXN: 3.50 d. INTC: 2.36 TXN: 3.43

Answers

Answer:

d. INTC: 2.36 TXN: 3.43

Explanation:

The property , plant equipment turnover is the ratio of sales divided by the amount of PPE as shown below:

PPE turnover=sales/(beginning PPE+ending PPE)/2

Intel Corporation (INTC):

PPE turnover=$38,826/($15,768+$17,111)/2

PPE turnover=$38,826/$16,439.50  

PPE turnover=2.36 times

Texas Instruments (TXN):

PPE turnover=$13,392/( $3,918+$3,899)/2

PPE turnover=$13,392/$3,908.50

PPE turnover=3.43 times

The correct option is D

During its first five years of operations, a company reports net income and pays dividends as follows. Required: Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1.

Answers

Answers:

Years:

$700$1,900$3,000$5,200$8,600

Explanation:

Retained earnings for the year is:

= Beginning retained earnings + Net income - Dividends

Year 1

= 0 + 1,200 - 500

= $700

Year 2

= 700 + 1,700 - 500

= $1,900

Year 3

= 1,900 + 2,100 - 1,000

= $3,000

Year 4

= 3,000 + 3,200 - 1,000

= $5,200

Year 5

= 5,200 + 4,400 - 1,000

= $8,600

On February 12, Goal Publishing, Inc., purchased the copyright to a book for $15,000 and agreed to pay royalties equal to 10% of book sales, with a guaranteed minimum royalty of $60,000. Goal had book sales of $750,000 during the year. In its income statement, what amount should Goal report as royalty expense for the year

Answers

Answer:

$75,000

Explanation:

The computation of the amount reported as a royalty expense is given below:

There is a guaranteed minimum royalty of $60,000

And the 10% of book sales is $75,000

So the amount that should be reported as a royalty expense would be higher of the two amount i.e. $75,000

Therefore the same is relevant

Suppose that a developer is choosing tenants for a shopping center. There are four possible tenants: a DEPARTMENT STORE, a TOY STORE, a SHOE STORE, and a HARDWARE STORE. If each store were to be located in isolation outside a shopping center it would earn a certain level of gross profit per period (this is the level of profit before subtracting out space rent). In addition, each store requires a certain number of square feet of floor space, which is the same regardless of whether or not it locates in a shopping center. The relevant values for each store type are as follows:
Store Type: Gross Profit in Isolation Required Square Footage
Department $100,000 9,000
Toy $11,200 1,000
Shoe $7,800 800
Hardware $7,000 1,100
When the stores are located together, each store earns a greater gross profit from the extra customer traffic generated by the nearby locations of other stores. The increase in gross profit for each store resulting from the presence of other store types is as follows
Affected Store Type:
Department Toy Shoe Hardware
Department -- $6000 $8000 $1000
Toy $2000 -- $600 $300
Shoe $2000 $500 -- $200
Hardware $1000 $400 $200 --
Suppose that the shopping center developer charges a rent equal to each store’s gross profit, leaving the store with a net profit of exactly zero. Total rent from the shopping center is then equal to the total gross profit of all its stores. The developer’s profit is thus equal to total gross profit of all stores in the center minus the cost of providing space to the stores (that is, total rent minus the cost of providing space). Finally, suppose that due to high-quality construction and the need to provide common space around the stores, the construction cost for shopping center space is high. In particular, suppose that the cost per period per square foot of store floor space is $10.
A) Give an intuitive explanation for the pattern of incremental profits from the presence of other stores in the second table above
B) Suppose the developer were to construct a single-store shopping center (a contradiction in terms, perhaps). There are four types of such centers (a Department Store alone, a Toy Store alone, etc.). Using the information above, compute the developer’s profit from each of these four types of centers
C) Next compute the developer’s profit from the various types of two-store shopping centers (i.e., Department Store plus Shoe Store, Department Store plus Toy Store, etc.; how many possibilities are there?)
D) Finally, compute profits from the various types of three-store centers and from the single type of four-store center
E) Comparing your answers from (b), (c), and (d), identify the optimal shopping center (the one yielding the highest profit to the developer). Explain intuitively why this particular collection of stores is optimal.

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

a) Explanation:

Closeness of different shops at one place would result in the increased Profit because of the following reasons:

1. People usually wish to save extra bucks whenever possible, so in this case, they will be saving their travel cost because, they don't need to go somewhere else for other products. As they will be getting every product they need in a single complex.  

2. Secondly, because of the greater visibility of different products people would buy things they don't even need for the time being,  resulting in the increase in profits.

b) Single Store Shopping Centre:

For Department:

Rent of the store = $ 100,000

Cost ($ 10 per sq. foot) = 9000 x 10 = $ 90,000

Profit = $ 100,000 - $ 90,000  = $ 10,000

For Toy Store:

Rent of the store = $ 11,200

Cost ($ 10 per sq. foot) = 1,000 x 10 = $ 10,000

Profit = $ 11,200  - $ 10,000 = $1,200

For Shoe Store:

Rent of the store = $ 7,800

Cost ($ 10 per sq. foot) =  800 x 10 = $8000

Profit = $ 7,800 - $8000 = -$200

For Hardware Store:

Rent of the store = $7,000

Cost ($ 10 per sq. foot) = 1,100 x 10 = $11,000

Profit =  $7,000 - $11,000 =  -$4000

c) Two-Store Shopping centers:

Department + Toy :

Toy affected Score = $6000

So,

Profit of Affected Department = $10000 + $6000 = $16000

Profit of Affected Toy Store = $2000 + $1200 = $3200

Total Profit = Profit of Affected Toy Store + Profit of Affected Department

Total Profit =  $16000 + $3200 = $19200

Similarly,

For Department + Shoes:

Shoes Affected Score = $8000

So,

Profit of Affected Department = $10000 + $8000 = $18000

Profit of Affected Shoe Store =  -$200 + $2000 = $1800

Total Profit  =  $18000 + $1800 = $19800

Similarly,

For Department + Hardware:

Hardware affected Score =  $1000

So,

Profit of Affected Department = $10000 + $1000 = $11000

Profit of Affected Hardware Store =   -$4000 + $1000 = -$3000

Total Profit  = $11000 -$3000 = $8000

Similarly,

For Toy + Shoes:

Shoes affected Score =  $600

Profit of Affected Toy  = $1,200 + $600 = $1800

Profit of Affected Shoe Store =  -$200 + $500 = $300

Total Profit  = $1800 + $300 = $2100

Similarly,

For Toy + Hardware:

Hardware affected Score =  $300

So,

Profit of Affected Toy  = $1,200 + $300 = $1500

Profit of Affected Hardware Store = -4,000 + 400 = -3600

Total Profit  =  $1500 -3600 = -2,100

Similarly,

Shoes + Hardware:

Hardware affected Score = $200

Profit of Affected Shoes  = -200 + 200 = 0

Profit of Affected Hardware Store = -4,000 + 200 = -3800

Total Profit  = 0 - 3800 = -3800

Similarly,

d) Three-store Shopping centers:

For Department + Toy + Shoes:

Department Profit = 10,000 + 6,000 + 8,000 = $24000

Toy Profit  = 1,200 + 2,000 + 600 = $3800

Shoes Profit = -200 + 2,000 + 500 = $2300

Total Profit = $24000 + $3800 + $2300 = 30,100

For Department + Toy + Hardware:

Department Profit = 10,000 + 6,000 + 1,000 = $17000

Toy Profit = 1,200 + 2,000 + 300 = $3500

Hardware Profit = -4,000 + 1,000 + 400 = -$2600

Total Profit = $17000 +  $3500 - $2600  = 17,900

Department + Shoes + Hardware:

Department Profit =  10,000 + 8,000 + 1,000

Shoes Profit = -200 + 2,000 + 200

Hardware Profit = -4,000 + 1,000 + 200

Total Profit = 18,200

Toy + Shoes + Hardware:

Toy Profit = 1,200 + 600 + 300

Shoes Profit =  -200 + 500 + 200

Hardware Profit = -4,000 + 400 + 200

Total Profit = -800

Four store Shopping Centre:

Department + Toy + Shoes + Hardware:

Department Profit =  10,000 + 6,000 + 8,000 + 1,000

Toy Profit = 1,200 + 2,000 + 600 + 300

Shoes Profit = -200 + 2,000 + 500 + 200

Hardware Profit = -4,000 + 1,000 + 400 + 200

Total Profit = 29,200

E)

Now, if you see and compare between the profits of above calculated different category stores, then maximum profit is gained by 3 store shopping center. So, the optimal store is 3 store shopping center.

     

2.A company began 2019 with retained earnings of $23.45 million. During the year, it paid four quarterly dividends of 0.25 per share to common stockholders holding 1 million shares. Preferred stockholders, holding 0.5 million shares, were paid four quarterly dividends of 0.50 per share. The firm had a net profit after taxes of 2.18 million. What is the value of the retained earnings balance at the end of the year

Answers

Answer: $23.63 million

Explanation:

First and foremost, we can calculate the quarterly common stockholder dividend which will be:

= $0.25 × 1 Million

= $0.25 million

Then, the annual dividend to the common stockholders will be:

= $0.25 million × 4

= $1 million

The quarterly preferred stockholder dividend will be calculated as:

= $0.50 × 0.50 Million

= $0.25 million

We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:

= $0.25 million × 4

= $1 Million

Total Dividend would then be:

= Annual dividend to common stockholders + Annual dividend to preferred stockholder

= $1 Million + $1 Million

= $2 Million

The value of the retained earnings balance at the end of the year will then be:

= Retained Earnings at the beginning of the year + Net Income – Dividend

= $23.45 + $2.18 - $2.00

= $23.63 million

Why is it important for business professionals to take an active role in developing and managing information systems? A. They know how to create a database and configure computers. B. They are the people who know how to build networks. C. They know whether a system meets their needs and requirements. D. They are the lone users of information systems.

Answers

Answer:

C. They know whether a system meets their needs and requirements.

Explanation:

An information system can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products.

Generally, it is an integral part of human life because individuals, organizations, and institutions rely on information systems in order to perform their duties, functions or tasks and to manage their operations effectively. For example, all organizations make use of information systems for supply chain management, process financial accounts, manage their workforce, and as a marketing channels to reach their customers or potential customers.

Additionally, an information system comprises of five (5) main components;

1. Hardware.

2. Software.

3. Database.

4. Human resources.

5. Telecommunications.

Hence, it is important for business professionals to take an active role in developing and managing information systems because it helps them to know whether a system meets their needs and requirements.

At the beginning of Year 2, Better Corp.'s accounting records had the following general ledger accounts and balances. BETTER CORP. Accounting Equation Accounting Titles for Retained Earnings Event Liabilities + Notes Payable Common Stock Assets Stockholders' Equit Cash 20,000 Land 30,000 Retained Earnings 29,000 Balance 01/01/Year 2 13,000 8,000 Better Corp. completed the following transactions during Year 2:_____.
1. Purchased land for $10,000 cash.
2. Acquired $35,000 cash from the issue of common stock.
3. Received $74,000 cash for providing services to customers.
4. Paid cash operating expenses of $41,000.
5. Borrowed $20,000 cash from the bank.
6. Paid a $10,000 cash dividend to the stockholders.
7. Determined that the market value of the land purchased in event 1 is $45,000.
Required:
a. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table
b. As of December 31, Year 2, determine the total amount of assets, liabilities, and stockholders' equity and present this information in the form of an accounting equation.
c. What is the amount of total assets, liabilities, and stockholders' equity as of January 1, Year 3?
Complete this question by entering your answers in the tabs below

Answers

Answer:

BETTER CORP.

Event        Assets   =    Liabilities    +   Stockholders’ Equity   Accounting Titles

                                                                                               for Retained

                                                                                                 Earnings

                  Cash   +   Land   =   Notes    +  Common   + Retained

                                              Payable      Stock          Earnings

Balance

1/1/Yr 1      20,000     30,000     13,000       8,000      29,000

1.              (10,000)    10,000

2.             35,000                                   35,000

3.             74,000                                                      74,000 Service Revenue

4.            (41,000)                                                     (41,000) Operating exp.

5.            20,000                    20,000

6.            (10,000)                                                     (10,000)

7.                             N/A                                              N/A       N/A

b. Balance 31/12

 Yr 2     88,000 +  40,000 = 33,000  + 43,000 +  52,000

c. The amount of total assets as of January 1, Year 3 = $128,000; liabilities = $33,000; and stockholders' equity = $95,000.

Explanation:

The accounting equation states that total assets are equal to total liabilities and stockholders' equity.  This equation gives accounting two sides to every transaction.  This is known as the double-entry system of accounting.  And the two sides are always in agreement before and after each transaction.  The equation also implies that an entity's assets are funded by the creditors and the owners (stockholders).

                                         BETTER CORP.

   A: The transactions in the appropriate general ledger accounts:

Formula:

Event        Assets   =    Liabilities    +   Stockholders’ Equity   Accounting Title                                                                                             for Retained

                                                                                                       Earnings

                 Cash   +   Land   =   Notes    +  Common   + Retained

                                                  Payable      Stock          Earnings

                 20,000     30,000     13,000       8,000      29,000

1.              (10,000)    10,000

2.             35,000                                   35,000

3.             74,000                                                      74,000 Service Revenue

4.            (41,000)                                                     (41,000) Operating exp.

5.            20,000                    20,000

6.            (10,000)                                                     (10,000)

7.                             N/A                                              N/A       N/A

B. The total amount of assets, liabilities, and stockholders' equity and present this information in the form of an accounting equation is:

Year 2:  88,000 +  40,000 = 33,000  + 43,000 +  52,000

C .The amount of total assets as of :

      January 1,

Year 3 = $128,000 liabilities = $33,000stockholders' equity = $95,000.

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postretirement health care benefit plan. On January 1 of the current calendar year, the following plan-related data were available. Net loss-postretirement benefit plan $ 222,000 Accumulated postretirement benefit obligation $ 2,100,000 Fair value of plan assets $ 440,000 Average remaining service period to retirement 12 years Average remaining service period to full eligibility 10 years The rate of return on plan assets during the year was 12%. The expected return was 10%. The actuary revised assumptions regarding the APBO at the end of the year, resulting in a $32,000 increase in the estimate of the obligation. Required: 1. Calculate any amortization of net loss that should be included as a component of postretirement benefit expense for the current year. 2. Determine the net loss or gain as of December 31 of the current year.

Answers

Answer:

1. Amortization of net loss = $1000

2. Ending Net Loss:  $244,200

Explanation:

Data Given:

Net Loss Post Retirement Benefit Plan = $222,000

Accumulated Port Retirement Benefit Obligation = $2,100,000

Fair value of Plan Assets = $440,000

Average Remaining Service period to Retirement = 12 years

Average Remaining Service period to full eligibility = 10 years

Rate of Return on Plan Assets during the year = 12%

Expected Return = 10%

Estimate in the obligation = $32,000

Required:

1. Amortization of net loss

Solution:

For Amortization of net loss, we need to have the value of excess at the beginning of the year and average remaining service years.

So,

Net loss = $222,000

And

Accumulated Port Retirement Benefit Obligation = $2,100,000

Expected Return = 10%

So,

Find 10% of the Accumulated Port Retirement Benefit Obligation  

$2,100,000 x 10%  = $210,000

Now, for excess at the beginning of the year:

$222,000 - $210,000

excess at the beginning of the year = $12,000

And we know that,

Average Remaining Service period to Retirement = 12 years

Amortization of net loss =  $12,000/12 years

Amortization of net loss = $1000

2. Net loss or gain at the end of the year.

Solution:

We know the beginning net loss = $222,000

Estimate in the obligation = $32,000

Now, we need to find the excess actual return over expected return:

Amortization of net loss = $1000

Fair value of Plan Assets = $440,000

Rate of Return on Plan Assets during the year = 12%

Expected Return = 10%

excess actual return over expected return: $440,000 x (12%  - 10%)

excess actual return over expected return: $440,000 x (2%)

excess actual return over expected return: $8,800

Now,

For the Ending Net Loss:

(beginning net loss + Estimate in the obligation - excess actual return over expected return - Amortization of net loss)

$222,000 + $32,000 -$8,800 - $1000 = $244,200

Ending Net Loss:  $244,200

The large percentage of population involved in agriculture in China indicates that most people consume an inadequate number of calories. most people must produce food for their own survival factory production cannot expand. the country imports most of its food. few people are unemployed

Answers

Answer:

The answer is "most people must produce food for their own survival".

Explanation:

Its large percentage of Chinese people involved in agriculture indicates that the majority of people have had to make food to sustain themselves. The processing of dairy products, wool, fruits, veggies, meat, livestock, eggs, and farmed fish is among the first nations in the world. Only with importance attached to opening farming with the outside world, China is becoming more and more closely connected with the other countries.

During February, $80,110 was paid to creditors on account, and purchases on account were $102,540. Assuming that the February 28 balance of Accounts Payable was $34,450, determine the account balance on February 1. $fill in the blank 1 b. On October 1, the accounts receivable account balance was $30,300. During October, $263,600 was collected from customers on account. Assuming that the October 31 balance was $34,800, determine the fees billed to customers on account during October. $fill in the blank 2 c. On April 1, the cash account balance was $13,620. During April, cash receipts totaled $207,020 and the April 30 balance was $9,810. Determine the cash payments made during April. $fill in the blank 3

Answers

Answer:

a. Accounts Payable on February 1 = $12,020

b. The fees billed to customers on account during October = $268,000

c. The cash payments made during April = $210,810

Explanation:

a) Data and Calculations:

1. Accounts payable:

February 1 = $12,020

Purchases     102,540

Payment          (80,110)

February 28 $34,450

2. Accounts Receivable:

October 1 balance    $30,300

Fees                          268,000

Collections               263,600

October 31 balance $34,800

3. Cash:

April 1 balance        $13,600

Receipts                 207,020

Payments                210,810

April 30 balance      $9,810

When you are able to feel and touch product, it is called

Answers

Answer:

In a Proctor & Gamble study published in 2009, spanning 21 years total, found that customers who were able to feel merchandise were willing to pay more than those who hadn't. This phenomenon is called “The Endowment Effect." Basically, we make an emotional connection with what we touch.

Explanation:

Hope this helps

From,

1kvibing

The feel and touch of the products are called the endowment effect.

What is an endowment effect?

An endowment effect is an effect that is associated with behavioral economics and the effect is that people find more likely to retain an object they own rather than acquire the object that they don't own.

The company named P and G published that clients were able to feel merchandised were willing to pay more than those who had not.

Find out more information about the product.

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According to the video, what challenges do Clergy face? Check all that apply.
angry congregations
stubborn advisors
difficult paperwork
demands on time and energy
long hours

Answers

Answer:

4,5

Explanation:

Answer:

D: Demands on time and energy

E: Long hours

Explanation:

I got it right on my assignment for the Career Explorations.

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