The given statement is False. Marginal propensity to consume is not the ratio of aggregate consumption expenditure to aggregate income. Instead, it is defined as the proportion of a change in income that is spent on consumption.
Marginal propensity to consume (MPC) is the slope of the consumption function and it measures the change in consumer spending resulting from a change in disposable income. A higher MPC indicates a greater likelihood of consumers to spend an increase in their income on goods and services, whereas a lower MPC suggests that consumers are more inclined to save the extra income.
The formula for calculating MPC is as follows:MPC = change in consumption / change in incomeAggregate consumption expenditure (C) is the total amount spent on consumption goods and services by individuals and the government in an economy, while aggregate income (Y) is the total income earned by households, businesses, and the government in an economy.
The ratio of aggregate consumption expenditure to aggregate income is known as the average propensity to consume (APC), which is a different concept from MPC. AP is the proportion of total income that is spent on consumption, while MPC is the proportion of a change in income that is spent on consumption.
The formula for calculating APC is:APC = consumption / incomeTherefore, the given statement is False as MPC is not the ratio of aggregate consumption expenditure to aggregate income.
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Plant assets are used in business and have useful lives that extend over more than one accounting period. a. True b. False
a. True. Plant assets, also known as fixed assets or property, plant, and equipment (PPE), are tangible assets used in a business's operations to generate revenue.
a. True. Plant assets, also known as fixed assets or property, plant, and equipment (PPE), are tangible assets used in a business's operations to generate revenue. These assets are typically long-term in nature and have useful lives that extend over more than one accounting period. The term "useful life" refers to the period during which the asset is expected to provide economic benefits to the business. Plant assets, such as buildings, machinery, vehicles, and equipment, are acquired with the intention of using them in the business for an extended period. Accounting principles dictate that the cost of plant assets should be allocated over their useful lives through depreciation. Depreciation is the systematic allocation of the asset's cost as an expense over time, reflecting the asset's gradual wear and tear, obsolescence, or loss of value. Therefore, it is true that plant assets are used in business and have useful lives that extend over more than one accounting period.
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Explain how Total Quality Management (TQM) can benefits
organization. Provide example.
Total Quality Management (TQM) benefits organizations by focusing on continuous improvement, customer satisfaction, and employee involvement. TQM emphasizes the importance of quality in all aspects of the organization's operations, leading to improved efficiency, productivity, and customer loyalty.
For example, a manufacturing company implementing TQM may see reduced defects in their products, leading to higher customer satisfaction and increased sales. By involving employees at all levels, TQM fosters a culture of collaboration, empowerment, and accountability, which can result in better teamwork, innovation, and problem-solving.
TQM promotes a systematic approach to quality management, with the aim of meeting or exceeding customer expectations. Through methods like quality control, quality assurance, and continuous improvement, organizations can identify and address issues proactively, preventing errors and waste. This not only improves the quality of products or services but also reduces costs and increases efficiency.
For instance, a service-oriented organization implementing TQM may develop customer feedback mechanisms and regularly analyze the data to identify areas for improvement. By addressing customer concerns and making necessary adjustments, the organization can enhance customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth.
In summary, Total Quality Management brings numerous benefits to organizations, including improved product quality, customer satisfaction, employee engagement, and overall organizational performance. It provides a framework for continuous improvement, ensuring that the organization remains responsive to customer needs and competitive in the market.
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Find the difference in profit between these two products (in dollars). Product 1 Product 2 Selling Price $65 $115 Fixed Costs $750,000 $1,650,000 Variable Cost/unit $26 $69 Units Sold 25,000 45,000 $195,000 $1,000,000 $225,000 $420,000
The value of the difference in profit between the two products is $195,000
Profit is defined as the amount of money remaining after all expenses have been paid. The formula for finding the profit is:
Profit = Revenue – Total Costs.
Now, let's find the revenue of each product:
Product 1 revenue = Selling price × Units sold= $65 × 25,000= $1,625,000
Product 2 revenue = Selling price × Units sold= $115 × 45,000= $5,175,000
Now let's find the total cost of each product:
Product 1 total cost = Fixed costs + Variable costs= $750,000 + ($26 × 25,000)= $750,000 + $650,000= $1,400,000
Product 2 total cost = Fixed costs + Variable costs= $1,650,000 + ($69 × 45,000)= $1,650,000 + $3,105,000= $4,755,000
Now, we can find the profit for each product:
Product 1 profit = Revenue – Total costs= $1,625,000 – $1,400,000= $225,000
Product 2 profit = Revenue – Total costs= $5,175,000 – $4,755,000= $420,000
Finally, let's find the difference in profit between the two products:
Difference in profit = Product 2 profit – Product 1 profit= $420,000 – $225,000= $195,000
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The following information relates to Check Ltd and Fourty40 Ltd as at 30 June 2021:
1. Check Ltd is a grocery food chain, operating stores across South Africa. Fourty40 Ltd developed an application to allow for online grocery purchases and a same day delivery service. At the start of lockdown, Check Ltd acquired a 70% interest in the ordinary shares and a 40% interest in the 9% cumulative preference shares of Fourty40 Ltd on 1 April 2019. Preference shares are classified as equity.
At acquisition date, Fourty40 Ltd had been in operation for only a few months. Fourty40 Ltd’s retained earnings amounted to R430 000, revaluation surplus was R45 000, ordinary share capital amounted to R550 000, and preference share capital to R240 000 on that date.
The carrying amounts of the assets and liabilities of Fourty40 Ltd were deemed equal to the fair values thereof at acquisition, except for land. Land was valued from R1 100 000 to R1 750 000. Due to all the administrative work surrounding the acquisition, Fourty40 Ltd omitted to adjust their financial records.
During June 2021, Fourty40 Ltd revalued its land again and its total revaluation surplus amounted to R750 000 after this was recorded.
The issued share capital of both companies remained unchanged since acquisition. Assume each ordinary share carries one vote and that voting rights alone determine control.
Furthermore, it is also group policy to disclose goodwill at cost less impairment in the consolidated financial statements. Goodwill was not impaired in the current year.
Check Ltd and Fourty40 Ltd information as at 30 June 2021 is as follows: Check Ltd is a grocery food chain having stores across South Africa.
Fourty40 Ltd developed an application that enables customers to purchase groceries online, and a same-day delivery service. At the beginning of lockdown, Check Ltd acquired 70% interest in the ordinary shares and 40% interest in the 9% cumulative preference shares of Fourty40 Ltd on 1 April 2019.
Preference shares are categorized as equity.On the acquisition date, Fourty40 Ltd had been in operation for a few months. At that time, Fourty40 Ltd's retained earnings were R430,000, revaluation surplus was R45,000, ordinary share capital was R550,000, and preference share capital was R240,000.
Except for land, the carrying values of Fourty40 Ltd's assets and liabilities were considered to be equal to their fair values at acquisition. The value of the land was estimated to be between R1,100,000 and R1,750,000.
Due to the complexity surrounding the acquisition, Fourty40 Ltd neglected to modify their financial records. After being registered, Fourty40 Ltd revalued its land once more in June 2021, and the total revaluation surplus amounted to R750,000 following its recording.
The issued share capital of both companies remained the same as at acquisition. Goodwill was disclosed at cost less impairment in the consolidated financial statements because it was the group's policy. There were no goodwill impairments in the current year.
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A discriminatory price is passed along from a secondary-line buyer to a retailer in A. primary-line injury. B. tertiary-line injury. C. predatory pricing.
D. variable pricing.
A discriminatory price is passed along from a secondary-line buyer to a retailer in B. tertiary-line injury.
Price Demarcation is a deals strategy in which the dealer charges different prices for the same product or service depending on what the seller believes the buyer will accept. In pure price demarcation, the supplier charges the topmost possible price to each consumer.
In more typical kinds of price discrimination, the seller divides clients into groups based on particular characteristics and charges a different price to each group.
When one manufacturer lowers their pricing in a given geographic region, it causes injury to its competitors in the same market. Price discrimination is classified into three types: first-degree or perfect price discrimination, second-degree, and third-degree.
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The table below provides the information on the monthly USD/EUR exchange rate:
January 2021
1.22 USD/1EUR
July 2021
1.18 USD/1EUR
Assume that consumer basket cost about 95 EUR in Europe and 100 USD in U.S. and price does not change during the period. Calculate the real exchange rate. Determine how the real exchange rate changed. Interpret the results.
Real exchange rate: The real exchange rate refers to the ratio of prices of a basket of goods and services between two countries. The real exchange rate provides the value of a currency in terms of the amount of goods and services it can buy.
It is also called the purchasing power exchange rate. In order to calculate the real exchange rate, we need to convert both prices to a common currency. Here, we will use the USD as the common currency. Real exchange rate for January 2021: Real exchange rate = (USD price / EUR price) x (EUR/USD exchange rate)= (95 / 1) x (1.22/1)= 115.9Real exchange rate for July 2021:
Real exchange rate = (USD price / EUR price) x (EUR/USD exchange rate)= (100 / 1) x (1.18/1)= 118.0Real exchange rate has increased from 115.9 in January 2021 to 118.0 in July 2021. This means that the purchasing power of the USD has increased relative to the EUR over this period. In other words, the same basket of goods and services costs less in USD terms in July 2021 compared to January 2021. This could be due to a stronger USD or weaker EUR or both.
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4-1. You want to take out a mortgage on a house worth $50,000, and pay it back in 10 years. Since your credit rating is very poor, the bank charges you simple interest at the rate of 2% per month. How much will you owe after 1 year? How much is the interest? (4.2)
To take out a mortgage on a house worth $50,000, and pay it back in 10 years. The bank charges simple interest at the rate of 2% per month. Thus, the amount owned after 1 year is $62,000 and the interest charged is $12,000.
Given data : House worth= $50,000 Time period= 10 years Rate of interest= 2% per month.
Simple interest formula is given as : Simple interest= (P × R × T) / 100
Where,
P = Principle R = Rate of interest T = Time period
Let's calculate simple interest for the first year
Simple interest= (P × R × T) / 100
Simple interest for the first year= ($50,000 × 2 × 12) / 100= $12,000
This is the amount of interest paid after one year.
We can also calculate the amount owned after 1 year using the simple interest formula.
Amount owned after 1 year= Principle + Simple interest
Amount owned after 1 year= $50,000 + $12,000= $62,000
Thus, the amount owned after 1 year is $62,000 and the interest charged is $12,000.
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Which of the following is the best example of a search good?
A) A haircut
B) A meal at a restaurant
C) A softball
D) Psychotherapy
C) A softball. A search good is a product or service that can be evaluated and experienced before purchase. The correct option is c.
It refers to goods or services where the quality and attributes can be easily assessed by consumers through search and comparison.
Among the options provided, a softball best exemplifies a search good. When considering purchasing a softball, consumers can examine its size, weight, material, and other physical characteristics.
They can touch, hold, and inspect the softball to determine if it meets their requirements and preferences. The quality and attributes of a softball can be easily observed and assessed before making a purchase decision.
In contrast, options A, B, and D represent experience goods or credence goods rather than search goods.
For example, a haircut, a meal at a restaurant, and psychotherapy involve subjective experiences and outcomes that are not fully known or easily evaluated. The correct option is c.
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Patricia is able to secure health insurance because her employer has a contract with Blue Cross/Blue Shield. This is an example of ___________ insurance plan.
Patricia is able to secure health insurance because her employer has a contract with Blue Cross/Blue Shield. This is an example of Group insurance plan.
Group insurance is an insurance plan that covers a group of people who are associated together, such as the workers of an organization or the members of an association or club.
Health insurance plans of a group are offered by employers to their employees; it is employer-based coverage. Patricia is able to secure health insurance because her employer has a contract with Blue Cross/Blue Shield, which is why this is an example of group insurance plan.
The employers are responsible for paying a portion of the premiums for this coverage, and the employees are responsible for the rest. Because of the group's size, the insurer is willing to give them a lower premium rate than they would charge for individual policies of a group.
That is why this coverage is often less expensive than buying coverage individually.Patricia's group insurance plan is a popular choice because it provides several benefits, including:Lower premium cost
Employers usually contribute a portion of the premium amount to keep it low.Pre-existing conditions coverage
Underwriting is typically waived or more lenient with group policies. Therefore, people with pre-existing medical conditions may obtain insurance through their employer when they may not be eligible for individual coverage.
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Fiery Bhd has determined that its China division is a cash generating unit (CGU). The carrying amounts of the assets at 31 December 2019 are as follows: i. ii. iii. Land Plant Additional information:
The impairment loss and reversal of impairment loss on the following dates: i. 31 December 2019 ii. 31 December 2020 on December 31, 2019, is RM24,000.
How to solve for the valuesCalculation:
Carrying quantity of CGU at December 31, 2019 = RM150,000 + RM750,000 - RM150,000 + RM24,000 = RM874,000
Recoverable quantity of CGU at December 31, 2019 = RM816,000
Impairment loss = RM874,000 - RM816,000 = RM58,000
Distribution of impairment loss:
Land: RM0
Plant: RM58,000
Goodwill: RM24,000
Inventory: RM120,000
Cash: RM6,000
Total: RM208,000
The impairment loss on December 31, 2019, is RM24,000.
For December 31, 2020:
The impairment loss is nil.
The recoverable quantity of the China department is RM854,000.
The carrying quantity of the China department's property is RM885,000.
The impairment loss is RM31,000.
b. Journal entries on December 31, 2019:
Debit:
Impairment loss on plant: RM58,000
Accumulated depreciation on plant: RM58,000
Goodwill: RM24,000
Inventory: RM120,000
Cash: RM6,000
Total Debit: RM208,000
Credit: None
Explanation:
The amount of loss due to impairment on December 31, 2019, is RM24,000. The impairment loss is allocated to various assets such as plant, goodwill, inventory, and cash. On December 31, 2020, there is no impairment loss.
The recoverable quantity and carrying quantity of the China department are given. The journal entries for December 31, 2019, include the impairment loss on plant, accumulated depreciation on plant, goodwill, inventory, and cash.
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Fiery Bhd has determined that its China division is a cash generating unit (CGU). The carrying amounts of the assets at 31 December 2019 are as follows: i. ii. iii. Land Plant Additional information: Accumulated depreciation Goodwill Inventory Cash b) RM 150,000 750,000 (150,000) 24,000 120,000 6,000 The cost model were used to measure all assets. The recoverable amount of the CGU at 31 December 2019 was RM816,000. At 31 December 2020, the depreciation charge on plant was RM69,000 (RM75,000 would have been charged for the depreciation if the plant had not been impaired). iv. At 31 December 2020, the recoverable amount of the entity was calculated to be RM39,000 greater than the carrying amount of the assets of the entity. Required: a) Calculate the impairment loss and reversal of impairment loss on the following dates: i. 31 December 2019 ii. 31 December 2020 Show all workings. Prepare the journal entries relating to (a) above. (11 marks) (4 marks)
Do PESTLE analysis of Ecommerce industry in Bangladesh. (In 500/600 words)
The PESTLE analysis of the Ecommerce industry in Bangladesh reveals significant opportunities and challenges for growth in the sector.
The PESTLE analysis is a strategic tool used to assess the external factors that can impact an industry or organization. It examines the Political, Economic, Sociocultural, Technological, Legal, and Environmental factors that shape the industry's operating environment. Here is an analysis of the Ecommerce industry in Bangladesh using the PESTLE framework.
Political Factors:The government of Bangladesh has recognized the potential of the Ecommerce industry and has taken initiatives to promote its growth. It has implemented policies to encourage digital transactions and ease regulatory processes for online businesses. However, there are still challenges related to taxation, intellectual property rights, and consumer protection laws that need to be addressed to create a favorable political environment for the Ecommerce industry.
Economic Factors:Bangladesh has experienced significant economic growth in recent years, with a growing middle class and increasing internet penetration. This has resulted in a rise in consumer spending and a shift towards online shopping. The Ecommerce industry has the potential to contribute to job creation and economic development in the country. However, challenges such as logistics infrastructure, payment gateways, and financial inclusion need to be addressed to fully leverage the economic opportunities presented by Ecommerce.
Sociocultural Factors:The cultural shift towards online shopping is gradually taking place in Bangladesh. Consumers are becoming more comfortable with making online transactions and trusting Ecommerce platforms. This shift is driven by factors such as convenience, variety of products, and competitive pricing. However, there are still segments of the population that are hesitant to adopt Ecommerce due to factors like limited internet access, lack of awareness, and preference for traditional shopping methods.
Technological Factors:Technological advancements have played a crucial role in the growth of the Ecommerce industry in Bangladesh. Increasing smartphone penetration and access to affordable internet services have expanded the customer base for online retailers. Moreover, advancements in logistics and supply chain management technologies have improved order fulfillment and delivery processes. However, ensuring cybersecurity, addressing digital divide issues, and investing in robust IT infrastructure are essential to sustain and further accelerate the growth of the Ecommerce sector.
Legal Factors:The legal framework governing the Ecommerce industry in Bangladesh is still evolving. While the government has taken steps to regulate the sector, there is a need for clear and comprehensive laws that address issues such as consumer protection, data privacy, and intellectual property rights. Creating a supportive legal environment will foster trust among consumers and businesses, enabling the industry to thrive.
Environmental Factors:The environmental impact of the Ecommerce industry in Bangladesh is a growing concern. The increase in online shopping has led to higher packaging waste and carbon emissions from transportation. Addressing these environmental challenges requires the adoption of sustainable practices, such as eco-friendly packaging and efficient last-mile delivery solutions. Integrating environmental considerations into the business models of Ecommerce companies will contribute to a more sustainable and responsible industry.
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7. Last year a company had stockholder's equity of $160,000, net operating income of $16,000 and sales of $100,000. The turnover was 0.5. The return on investment (ROI) was: a. 10% b. 9% d. 7% c. 8%
Turnover, also known as asset turnover, indicates how efficiently a company is utilizing its assets to generate sales. It calculates the amount of revenue earned for every dollar invested in assets. Therefore, the correct option is (c) 8%.
The formula for turnover is as follows: Turnover = Sales / Average Total Assets. Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2.
Here, the asset turnover is given to be 0.5, and sales are given to be $100,000. Average Total Assets = Sales / Turnover= 100,000 / 0.5= $200,000.
Now, Return on Investment (ROI) is calculated using the following formula: ROI = Net Operating Income / Average Total Assets. ROI = $16,000 / $200,000 ROI = 0.08 or 8%.
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which product is most likely to be characterized by pure competition in the united states?
In the United States, agricultural products such as wheat, corn, soybeans, or other commodities are most likely to be characterized by pure competition.
Pure competition refers to a market structure where there are numerous buyers and sellers, homogeneous products, and easy entry and exit into the market.
In the agricultural sector, there are typically a large number of farmers producing similar crops, and buyers, such as food processors or exporters, have many options to choose from. Prices are determined by market forces of supply and demand, without any individual producer having significant control over the market.
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Source documents are useful when applying the cost principle. True False
The given statement "Source documents are useful when applying the cost principle." is true because the cost principle is an accounting principle that requires companies to record assets at their original cost of purchase or production and avoid adjusting the value based on inflation or market fluctuations.
In other words, the cost principle prohibits companies from increasing the value of assets beyond the amount they paid to acquire them.Source documents are crucial when applying the cost principle because they provide evidence of the amount paid to acquire the assets. Source documents are original records that show the details of a transaction. Examples of source documents include purchase orders, invoices, receipts, and canceled checks.
These documents provide the necessary information to record transactions accurately, which is essential when applying the cost principle. By using source documents, companies can ensure that their accounting records reflect the actual cost of assets and avoid overvaluing them. Therefore, source documents play a critical role in supporting the application of the cost principle.
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Consider the deadweight loss generated in each of the following cases: no tax, a tax of $8 per pack, and a tax of $16 per pack. On the following graph, use the black curve (plus symbols) to illustrate
As the tax per pack increases, the deadweight loss triangle on the graph also increases, indicating greater inefficiency and welfare loss.
Extra weight misfortune is ordinarily addressed by a three-sided region on a diagram. The foundation of the triangle addresses how much assessment forced, and the level addresses the decrease in amount brought about by the expense.
For this situation, you would have three situations: no expense, a duty of $8 per pack, and a duty of $16 per pack. As the duty per pack builds, the extra weight misfortune triangle on the chart would likewise increment.
This is on the grounds that a higher expense prompts a more prominent decrease in amount, which brings about a bigger hole between the effective harmony amount and the genuine amount executed on the lookout.
The extra weight misfortune triangle fills in size as the taxation rate becomes heavier, showing a bigger loss of monetary government assistance because of the twisting brought about by the expense.
By looking at the extents of the extra weight misfortune triangles under various duty situations, you can notice the rising failure and government assistance misfortune as the expense per pack increments.
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The complete question is:
Consider the deadweight loss generated in each of the following cases: no tax, a tax of $8 per pack, and a tax of $16 per pack. On the following graph, use the black curve (plus symbols) to illustrate the deadweight loss in these cases. (Hint: Remember that the area of a triangle is equal to 1/2 x Base x Height. In the case of a deadweight loss triangle found on the graph input tool, the base is the amount of the tax and the height is the reduction in quantity caused by the tax.) As the tax per pack increases, deadweight loss.
e Based on consumer time spent using the media, in which area are US advertisers grossly underspending on advertising? Print Radio Television The Internet Mobile media
Mobile advertising has the potential to become one of the most effective ways to reach a target audience.
Based on consumer time spent using the media, the area in which US advertisers are grossly underspending on advertising is the mobile media. This is because people spend an increasing amount of time on their mobile phones, which is considered one of the most effective ways to reach potential consumers in a targeted and personal way. As a result, advertisers are looking to expand their mobile advertising budgets in order to reach consumers where they are spending most of their time, and to do so with targeted and personalized content. This means that mobile advertising has the potential to become one of the most effective ways to reach a target audience.
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Consider a three-commodity market model given by the following:
Market 1 P₁ = 4 D₁ = 29-P₁ + P₂ + P₂ S₁ = -2 + 10P₁
Market 2 P₂ = 2 2P₂ = Seth. -13 D₂ = 25+ P₁-P₂ + 2P3 S₂ = -1 + 5P₂ Русь
Market 3 D₂ = 21+P₁ +2P₂ - P3 S₁=+3+6P₂
Find the equilibrium expressions for each of the three markets.
Equilibrium is a state of balance that occurs when the supply and demand for a commodity, good, or service are equal. In economics, this refers to a situation where the quantity of a commodity supplied by producers equals the quantity demanded by consumers.What is the Equilibrium in the Three Commodity Markets Model Equilibrium is a state of balance that occurs when the supply and demand for a commodity, good, or service are equal. In economics, this refers to a situation where the quantity of a commodity supplied by producers equals the quantity demanded by consumers.
Market 1P₁ = 4D₁ = 29-P₁ + P₂ + P₂S₁ = -2 + 10P₁The equilibrium of market 1 can be obtained by solving the system of equations. So, we get:P₁ = 4D₁ = 29- P₁ + P₂ + P₂S₁ = -2 + 10P₁Substituting P₁ in D₁ and S₁, we get:D₁ = 25+P₂-3P₃S₁=+3+6P₂Market 2P₂ = 2D₂ = 25+ P₁-P₂ + 2P3S₂ = -1 + 5P₂Substituting P₂ in D₂ and S₂, we get:D₂ = 21+P₁ +2P₂ - P₃S₁=+3+6P₂Market 3D₂ = 21+P₁ +2P₂ - P₃S₁=+3+6P₂Therefore, we can get the equilibrium expressions for each of the three markets as:P₁ = 4, P₂ = 2, andP₃ = 7.5.
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Suppose that initially, the policy rate is 2% and the risk premium is 1%. If the risk premium increases to 5%, what policy rate will ensure that the the borrowing rate remains unchanged?
The borrowing rate is given as the sum of the policy rate and the risk premium. Therefore, if the risk premium increases from 1% to 5%, the borrowing rate increases from 2% + 1% = 3% to 2% + 5% = 7%. This implies that the policy rate needs to be adjusted to ensure that the borrowing rate remains unchanged.Let p be the new policy rate that ensures that the borrowing rate remains unchanged.
Then:p + 5% = 3% + 2% => p = 3% - 5% => p = -2%.This result implies that the policy rate must be set at -2% to ensure that the borrowing rate remains unchanged when the risk premium increases from 1% to 5%. Note: Negative policy rates are rarely used in practice as they imply that the central bank is paying interest to banks rather than receiving interest on their deposits. This is because negative policy rates encourage banks to lend out their reserves and invest in higher-yielding assets, which stimulate economic growth.
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why was the south at the center of american commerce and diplomacy?
The South was at the center of American commerce and diplomacy due to its strategic geographical location, agricultural wealth, and control over key natural resources such as cotton, tobacco, and rice.
The South's prime location along the Atlantic coastline provided easy access to both domestic and international trade routes. Its warm climate and fertile land made it ideal for cultivating cash crops like cotton, tobacco, and rice, which were in high demand and generated significant wealth. The South's agrarian economy fueled the growth of industries such as shipping, manufacturing, and finance, attracting commerce and investment. Additionally, the South's influential political figures, known as the "Southern aristocracy," held prominent positions in the federal government, enabling them to shape American diplomacy and advance their region's interests. These factors combined to make the South a hub of commerce and a powerful player in American diplomacy.
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vasily is a manager at a large snack foods company. vasily believes his company would benefit from being larger and thinks the shareholders would support such growth. the company is doing relatively well but needs to focus on stabilizing profits and expenditures. vasily pushes for an acquisition anyway. the reason for this acquisition is blank . multiple choice question. superior integration capability a principal-agent problem the desire to overcome competitive disadvantage a guarantee of creating shareholder value
Vasily pushes for an acquisition anyway. The reason for this acquisition is a principal-agent problem
Vasily, a manager of a company producing snack items, thinks that the company would gain from expanding, and he assumes that the shareholders would agree. The corporation must now concentrate on stabilising profits and expenses. Vasily is pushing for an acquisition despite this. This acquisition's motivation can be traced to a principal-agent problem.
An example, where the interests of the principal and the agent, in this case Vasily, are not entirely congruent is referred to as a principal-agent issue. Different objectives, risk preferences, or information asymmetries can all contribute to this misalignment. Vasily's ambition to seek an acquisition to expand the business may not be in line with the immediate interests of the shareholders in this situation, who place a higher priority on stabilising profits and expenses.
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Complete Question:
Vasily is a manager at a large snack foods company. Vasily believes his company would benefit from being larger and thinks the shareholders would support such growth. The company is doing relatively well but needs to focus on stabilizing profits and expenditures. Vasily pushes for an acquisition anyway. The reason for this acquisition is ______.
Below are the information of Ameena Enterprise. Ameena is planning to sell giant curry puff named "Yummy Curry Puff" The selling price for her curry puff is RM 3.00. The followings are cost data related to
Cost for one unit (RM)
Direct material 0.90 Direct labor 0.30 Factory overhead: variable 0.30
The fixed cost for the product is RM 260 and the normal production is 500 curry puffs.
Required:
A. Calculate the break-even point (in units and in value).
B. Determine the margin of safety (in percentage).
C. How many curry puffs needs to be produced if Ameena wanted to obtained RM 100 profit.
D. Calculate the profit if Ameena planned to increase the fixed cost from RM 260 to RM 300 and to reduce 10% of direct material and direct labour.
E. Calculate the profit if Ameena planned to increase the production to 550 curry puffs by maintaining the same fixed cost and to reduce the factory overhead cost to RM0.25 cents
A. Break-even point: To calculate the break-even point in units, we can use the formula: Break-even point (in units) = Fixed cost / Contribution margin per unit
The contribution margin per unit is calculated as follows:
Contribution margin per unit = Selling price per unit - Variable cost per unit
Given the information:
Fixed cost = RM 260
Selling price per unit = RM 3.00
Variable cost per unit = Direct material + Direct labor + Factory overhead (variable)
Variable cost per unit = 0.90 + 0.30 + 0.30 = RM 1.50
Contribution margin per unit = RM 3.00 - RM 1.50 = RM 1.50
Break-even point (in units) = RM 260 / RM 1.50 = 173.33 units
To calculate the break-even point in value, we can multiply the break-even point in units by the selling price per unit:
Break-even point (in value) = Break-even point (in units) * Selling price per unit
Break-even point (in value) = 173.33 * RM 3.00 = RM 520
Therefore, the break-even point is 173.33 units (rounded up to 174 units) and RM 520 in value.
B. Margin of safety: To calculate the margin of safety percentage, we can use the formula:
Margin of safety percentage = (Actual sales - Break-even sales) / Actual sales * 100
Given the information:
Actual sales = Normal production = 500 units
Break-even sales = Break-even point (in units) = 174 units
Margin of safety percentage = (500 - 174) / 500 * 100 = 65.20%
C. Number of curry puffs to obtain RM 100 profit: To calculate the number of curry puffs needed to obtain RM 100 profit, we need to consider the contribution margin per unit:
Profit = Number of units * Contribution margin per unit
Given the information:
Profit = RM 100
Contribution margin per unit = RM 1.50
Number of curry puffs = RM 100 / RM 1.50 = 66.67 units (rounded up to 67 units)
D. Profit with increased fixed cost and reduced direct material and direct labor:
To calculate the profit with the changed parameters, we need to adjust the fixed cost and variable cost per unit:
Adjusted fixed cost = RM 300
Adjusted variable cost per unit = Reduced direct material + Reduced direct labor + Factory overhead (variable)
Reduced direct material = 0.90 - (0.90 * 10%) = 0.81
Reduced direct labor = 0.30 - (0.30 * 10%) = 0.27
Adjusted variable cost per unit = 0.81 + 0.27 + 0.30 = RM 1.38
Profit = Number of units * (Selling price per unit - Adjusted variable cost per unit) - Adjusted fixed cost
Using the previous calculated number of curry puffs (500 units), we can substitute the values into the equation to find the profit.
Profit = 500 * (3.00 - 1.38) - 300 = RM 810
E. Profit with increased production and reduced factory overhead cost:
To calculate the profit with the changed parameters, we need to adjust the production and factory overhead cost:
Increased production = 550 curry puffs
Reduced factory overhead cost per unit = RM 0.25
Profit = Number of units * (Selling price per unit -
Variable cost per unit) - Fixed cost
Variable cost per unit = Direct material + Direct labor + Reduced factory overhead cost per unit
Variable cost per unit = 0.90 + 0.30 + 0.25 = RM 1.45
Profit = 550 * (3.00 - 1.45) - 260 = RM 940
Therefore, the profit in scenario E would be RM 940.
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If demand increases in a perfectly competitive market, which of the following will likely occur? Multiple Choice Firms will temporarily make a profit due to a higher price. Firms will enter the market in hopes of capturing some profits All of these are correct. The short run supply curve will shift to the right, eventually causing price to fall.
If demand increases in a perfectly competitive market, then all of the following options will be correct. So the correct option among the given options is option C - All of these are correct. Here is a 150 word explanation of why all of these options are correct in a perfectly competitive market.When demand increases in a perfectly competitive market, the following effects take place: firms are required to increase their production to meet the rising demand, and as a result, the short-run supply curve shifts to the right. At the same time, the price in the market will be higher due to the increased demand. However, this is not sustainable as in the long run, new firms will enter the market to capture some of the profits. These new firms will cause the supply curve to shift further rightward. As a result, the price in the market will fall until it reaches the equilibrium price. Therefore, all of the given options are correct when the demand increases in a perfectly competitive market.
Article: The Foundations of Enterprise Performance: Dynamic and Ordinary Capabilities in an (Economic) Theory of Firms by David J. Teece.
1. What are the article's implications for managers?
2. What do you think about the article? What do you agree/disagree?
Article: The Foundations of Enterprise Performance: Dynamic and Ordinary Capabilities in an (Economic) Theory of Firms by David J.
What are the article's implications for managers?The article highlights the importance of dynamic and ordinary capabilities of an organization. Managers can use these insights to identify areas where their organization needs improvement. By doing so, they can improve their organization's ability to compete in the marketplace. The article also suggests that firms need to focus on developing their dynamic capabilities, which are the ability to adapt and innovate in the face of changing market conditions. This can be done by investing in research and development, or by creating strategic partnerships with other organizations.Overall, I agree with the article. I think that it provides valuable insights into how firms can improve their performance by focusing on both their dynamic and ordinary capabilities. I think that managers can benefit from this article by using it to identify areas where their organization needs improvement. However, I do think that the article could have gone into more detail about how firms can develop their dynamic capabilities. I would have liked to see more concrete examples of how this can be done. Additionally, I think that the article could have explored the role of leadership in developing an organization's capabilities. Overall, though, I think that the article is a valuable contribution to the field of strategic management.Learn more about Enterprise Performance
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Can
someone explain to me what are the advantages of short term
scheduling? Thanks in advance!
The advantages of short-term scheduling include increased flexibility, efficient resource utilization, and improved responsiveness to changing conditions.
The advantages of short-term scheduling include increased flexibility, efficient resource utilization, and improved response to changing conditions. Short-term scheduling allows for the optimization of resources and work assignments on a daily or weekly basis, enabling organizations to adapt quickly to unexpected events or variations in demand. By closely monitoring and adjusting schedules in the short term, companies can ensure that resources, such as employees and equipment, are utilized efficiently, reducing idle time and maximizing productivity. Additionally, short-term scheduling enables organizations to respond promptly to changing customer demands, prioritize urgent tasks, and address any operational bottlenecks.In conclusion, short-term scheduling provides several benefits that contribute to operational efficiency and responsiveness. It allows for flexibility in resource allocation, ensures optimal resource utilization, and enables quick adaptation to changing conditions.
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Below is the information about company's selling price, fixed cost and variable
variable cost per unit= 55$
fixed cost=10000
sales price= 100$
a) Find BEP of the company in terms of units sold and dollars sold?
b) How do you interpret BEPs?
c) what are your suggestions to lower BEP?
a) To calculate the break-even point (BEP) in terms of units sold, we divide the fixed cost by the contribution margin per unit. The contribution margin is the sales price per unit minus the variable cost per unit.
Variable cost per unit = $55
Fixed cost = $10,000
Sales price per unit = $100
Contribution margin per unit = Sales price per unit - Variable cost per unit
Contribution margin per unit = $100 - $55 = $45
BEP in terms of units sold = Fixed cost / Contribution margin per unit
BEP in terms of units sold = $10,000 / $45 ≈ 222.22 units
To calculate the BEP in terms of dollars sold, we multiply the BEP in units by the sales price per unit.
BEP in terms of dollars sold = BEP in units sold * Sales price per unit
BEP in terms of dollars sold = 222.22 units * $100 = $22,222.22
b) The break-even point (BEP) represents the level of sales or units sold at which a company neither incurs a profit nor a loss. It is the point at which total revenue equals total costs. At the BEP, the company covers all its fixed costs, and any sales beyond the BEP contribute to generating a profit. BEP is an important metric for assessing the financial viability and risk of a business.
c) To lower the break-even point (BEP), the company can consider implementing various strategies:
1. Reduce variable costs: Finding ways to decrease the variable cost per unit, such as negotiating better prices with suppliers or optimizing production processes, can lower the BEP.
2. Increase selling price: If feasible, the company can raise the selling price per unit, which would increase the contribution margin and reduce the number of units required to break even.
3. Reduce fixed costs: Identifying opportunities to reduce fixed costs, such as streamlining operations, renegotiating leases or contracts, or exploring cost-sharing arrangements, can help lower the BEP.
4. Improve efficiency: Enhancing productivity and efficiency in all aspects of the business, including production, marketing, and administration, can lead to cost savings and contribute to a lower BEP.
5. Expand market reach: Increasing sales volume by entering new markets, expanding distribution channels, or targeting new customer segments can help achieve higher revenue and reduce the BEP.
It's important to carefully evaluate the potential impact and feasibility of these suggestions in the specific context of the company's operations and market conditions.
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Instructions Jan 19 Sold merchandise on account to Dr. Sinclair Welby, $15,800. The cost of the merchandise sold was $9,890. July 7. Received $4,800 from Dr. Sinclair Welby and wrote of the remainder owed on the sale of January 19 as uncollectible. Nov. 2. Reinstated the account of Dr. Sinclair Welby that had been written off on July 7 and received $11,000 cash in full payment Required: Journalize the above transactions in the accounts of Arrow Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables. Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries CNOW Journals will automatically indent a credit entry when a credit amount is entered
To journalize the above transactions for Arrow Medical Co., using the direct write-off method for uncollectible receivables, the following entries would be made:
January 19:
Accounts Receivable - Dr. Sinclair Welby..........$15,800
Sales Revenue...............................................................$15,800
(To record the sale of merchandise on account to Dr. Sinclair Welby)
July 7:
Cash..............................................................................$4,800
Allowance for Doubtful Accounts.......................$11,000
Accounts Receivable - Dr. Sinclair Welby..............$15,800
(To record the partial collection and write-off of the remainder owed by Dr. Sinclair Welby as uncollectible)
November 2:
Accounts Receivable - Dr. Sinclair Welby..........$15,800
Allowance for Doubtful Accounts.......................$11,000
Cash...........................................................................$11,000
(To reinstate the account of Dr. Sinclair Welby and record the full payment received)
Note: The Allowance for Doubtful Accounts is used to record the estimated uncollectible amounts. The direct write-off method does not use an allowance account, but for the purpose of this exercise, it is included to show the write-off and reinstatement of the account.
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5. Distinguish the bilateral promise against unilateral promise. Provide an example.
The primary difference between the two is that bilateral promises require mutual consideration and obligation from both parties, whereas unilateral promises only require one party's obligation.
A promise is a legal contract that must meet the standards of a valid contract to be enforced by law. Both parties should agree to the terms of the agreement for it to be considered a legally binding contract. There are two types of promises in contracts, bilateral promises, and unilateral promises. Bilateral promise vs unilateral promise: In bilateral promises, two parties are involved, and each has an obligation to meet. In unilateral promises, one party has an obligation to meet, and there is no obligation on the other party.
Unilateral promises are usually created to incentivize or encourage an act or performance. They are one-sided and rely on the goodwill of the promisee to perform. Example of a bilateral promise: If someone promises to paint someone else's house, and in return, the other party promises to pay them for the work performed, this is an example of a bilateral promise. Both parties have obligations to fulfill, and the agreement is mutual. Example of a unilateral promise: If someone promises to pay someone else $100 if they run a marathon, this is an example of a unilateral promise. There is no obligation on the person making the promise to fulfill their end of the bargain unless the promisee completes the action. Therefore, the obligation is only on one side.
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According to Howard Gardner, gardeners and farmers are (people smart, picture smart, body smart, nature smart?) , and they need (naturalist, interpersonal, musical, linguistic?) intelligence to do their jobs well.
According to Howard Gardner, gardeners and farmers are nature smart, and they need naturalist intelligence to do their jobs well.
Gardner defined naturalistic intelligence as the capacity to recognize, categorize, and manipulate components of the physical world, including objects, living things, and plants and animals. This kind of intelligence enables us to distinguish between various animals, social groupings, and things, as well as to comprehend how they connect to one another.
Naturalistic intelligence is said to have evolved during the era of the first humans, when recognizing helpful and hazardous animals, watching the climate, reading the land, and extending the range of food resources were all necessary for survival. People with high naturalistic intelligence typically exhibit the following traits i.e., they value the environment and like connecting with nature and they are adept at classifying both plants and animals.
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The following quotes are obtained from two banks:
Bank A Bank B
USD/SEK Spot 10.9570/80 10.9570/80
(a) Is there an arbitrage opportunity? (b) What kind of a market will result? (c) What might be the reasons for this?
There is no arbitrage opportunity in this situation, because both banks are quoting the same bid and ask prices for the USD/SEK currency pair. This means that there is no profit to be made by buying from one bank and selling to another.
This is an example of a perfectly competitive market, where there are many buyers and sellers, and the price is determined by the forces of supply and demand. In such a market, there is no excess profit or loss for any participant.
One possible reason for this situation is that both banks have access to the same information and technology, and they are able to adjust their prices quickly and efficiently to reflect the market conditions. Another possible reason is that there is a high degree of liquidity and transparency in the USD/SEK market, which reduces the transaction costs and risks for both banks and their customers.
About BanksBank is an intermediary financial institution that is generally established with the authority to accept deposits, lend money, and issue promissory notes. The word bank comes from the Italian banca which means a place where money is exchanged.
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What does a plaintiff have to show to state a 12(a)(1) cause of
action? Does plaintiff have to show reliance or causation under
12(a)(1)?
Under Section 12(a)(1) of the Securities Act of 1933, the plaintiff has to show that the securities were sold or offered for sale in interstate commerce and that the seller or offeror had no registration statement in effect at that time. Furthermore, a plaintiff does not have to show causation or reliance to establish a Section 12(a)(1) cause of action.
Section 12(a)(1) of the Securities Act of 1933, which is a part of the United States securities law, provides the foundation for liability claims by purchasers of securities who can establish that the seller or offeror of a security sold or offered for sale a security without an effective registration statement at the time of sale or offer.A plaintiff, under Section 12(a)(1), is not required to establish causation or reliance. The statute does not explicitly state that the plaintiff is required to establish causation or reliance.
However, plaintiffs who claim that they were misled by a seller's misstatements or omissions may want to bring claims under other federal securities law provisions that do require these componentsSection 12(a)(1) of the Securities Act of 1933 prohibits the sale of unregistered securities in interstate commerce. A seller is expected to file a registration statement with the Securities and Exchange Commission (SEC) before offering or selling securities in interstate commerce.
This is because the registration statement serves as a prospectus, which contains material information about the securities being sold, the issuer, and other relevant information that a purchaser can use to make an informed investment decision.The seller can be held liable if a purchaser of the security did not receive an effective registration statement before purchasing the security, and the seller or issuer can be held liable for damages under Section 12(a)(1).
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