Answer:
D) Answer
Explanation:
Answer can be filed by the defendant of a lawsuit. This is basically a pleading or response that is filed by the defendant in order to respond to a complaint made by a plaintiff. So when a defendant files an answer, he pleads and presents the defenses or counter arguments by addressing the allegations or claims made by the plaintiff in the complaint. So this way the defendant defends himself/herself against the accusations that are made against the defendant.
Injunction is not valid here because it is a court order which requires an individual to take a particular action or stop doing a particular action.
Reply is also not a valid option because it is a pleading or response of a plaintiff to the defendant's demand for relief which the defendant appeals through the filed answer.
Complaint is also not a valid option because it is a pleading which is filed by the plaintiff. This pleading is filed in order to start a case or a civil action and this is presented in a form of a document.
Item 4Item 4 You’ve collected the following information from your favorite financial website. 52-Week Price Stock (Div) Div Yld % PE Ratio Close Price Net Chg Hi Lo 64.60 47.80 Abbott 1.12 1.9 235.6 62.91 −.05 145.94 70.28 Ralph Lauren 2.50 1.8 70.9 139.71 .62 171.13 139.13 IBM 6.30 4.3 23.8 145.39 .19 91.80 71.96 Duke Energy 3.56 4.9 17.6 74.30 .84 113.19 96.20 Disney 1.68 1.7 15.5 ?.10 According to your research, the growth rate in dividends for IBM for the next 5 years is expected to be 5 percent. Suppose IBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 3.5 percent indefinitely. Assume investors require a return of 10 percent on IBM stock.
Answer:
P₀ = $106.96
Explanation:
the current dividend paid by IBM was $6.30 per stock
Div₀ = $6.30
Div₁ = $6.615
Div₂ = $6.94575
Div₃ = $7.2930375
Div₄ = $7.657689375
Div₅ = $8.040573844
Div₆ = $8.321993928
we must first determine the terminal value at year 5 = Div₆ / (rrr - g) = $8.321993928 / (10% - 3.5%) = $128.0306758
now we must discount the future values using the 10% discount rate:
P₀ = $6.615/1.1 + $6.94575/1.1² + $7.2930375/1.1³ + $7.657689375/1.1⁴ + $8.040573844/1.1⁵ + $128.0306758/1.1⁵ = $6.013 + $5.740 + $5.479 + $5.230 + $4.993 + $79.50 = $106.96
Item 12Item 12 During October, a firm had the following transactions involving revenue and expenses. Paid $1,275 for rent for October Provided services for $2,900 in cash Paid $280 for the October telephone service Provided services for $2,050 on credit Paid salaries of $1,750 to employees Paid $380 for the monthly office cleaning service Calculate the net income or net loss for the period?
Answer:
$1,265
Explanation:
Net income is the excess of revenue over expenses while Net loss is the excess of expenses over revenue.
We can calculate the net income/net loss for the firm as seen below.
Revenue $
Service. 2,900
Service 2,050
Less : Expenses
Rent $1,275
Telephone $280
Salaries. $1,750
Cleaning $380. (3,685)
Net income. 1,265
Give one advantage and one disadvantage for a Market Economy.
Answer:
Advantage: Variety
Disadvantage: Poor work conditions
Explanation:
A stock that sold for $ per share at the beginning of the year was selling for $ at the end of the year. If the stock paid a dividend of $ per share, what is the simple interest rate on the investment in this stock? Consider the interest to be the increase in value plus the dividend.
Answer:
137.77%
Explanation:
obviously the numbers are missing, so I looked for a similar question:
"A stock that sold for $26 per share at the beginning of the year was selling for $52 at the end of the year. If the stock paid a dividend of $9.82 per share, what is the simple interest rate on the investment in this stock? Consider the interest to be the increase in value plus the dividend."
total interest received (your gain) = (year end market value - purchase price) + dividends received = ($52 - $26) + $9.82 = $35.82initial investment (purchase price) = $26simple interest rate of return on investment = total interest received / initial investment = $35.82 / $26 = 1.3777 or 137.77%
What is the term for the illegal practice of using special
knowledge about a firm for profit or gain?
Answer:
Insider trading.Explanation:
Illegal practice of using special knowledge about a firm for profit or gain is called insider trading
Zipcar: Creating Value in the Marketplace Zipcar: Creating Value in the Marketplace Nearly a decade ago, the founders of Zipcar decided to bring the car-sharing experience to the United States. Since then, Zipcar has developed the gold standard by offering its members 24/7 access to thousands of cars around the world and creating a revolution in the way many think about alternate transportation. This activity is important because understanding the marketplace, especially consumers' needs and wants, is fundamental to marketing success. The goal of this exercise is to demonstrate how marketing focuses on creating value for customers, clients, partners, and society at large. Read the case of about how Zipcar creates value in the car-sharing services market and answer the questions that follow. Zipcar is a membership-based car sharing service offering automobile rental to its members in hour or day increments. Zipcar was founded in 2000 by Robin Chase and Antje Danielson, who were inspired by the success of car sharing in Europe; Avis Budget Group acquired the company in 2013. Zipcar has become the world's largest car-sharing service in over 50 North American cities, 20+ European cities, and over 100 college campuses in North America. Zipcar offers different types of membership, with plans aimed at both occasional and frequent drivers. In addition, special plans for corporations and universities are offered. In addition to monthly or annual membership fees, customers pay rental charges to use a Zipcar. Members can view vehicle accessibility and reserve a vehicle on Zipcar's website, using its mobile app, or on the telephone. "Zipsters" (as Zipcar members are called) are given a "Zipcard" that contains a wireless chip that opens their reserved vehicle; keys are stored inside the vehicle, along with a gas card members can use to fill the tank. When the Zipster is done with the car, s/he returns it to the car's home location (a reserved spot for the automobile in the member's area). Zipcar's fleet consists of automobiles from Audi, BMW, Ford, Honda, Nissan, and Toyota Ford and Toyota have partnered with Zipcar to test their new electric and hybrid options with Zipcar members. Zipcar focuses not only on creating a convenient experience for its members, but also on developing awareness about alternative transportation options. One of Zipcar's core missions is to "change the world through urban and environmental transformation." 1a. Zipcar is an example of what type of market... Zipcar is an example of what type of market orientation? Multiple Choice Ο exchange marketing Ο sales marketing Ο value-based marketing Ο production marketing Ο providence marketing
Complete Question
The complete question is shown on the first , second, third, fourth and fifth uploaded image
Answer:
1a
The correct option is C
1b
The correct option is D
1c
The correct option is C
1d
The correct option is C
Explanation:
1a. Zipcar is an example of what type of market...
Answer: value-based marketing
1b. Zipcar's goal is to have an available... Zipcar's goal is to have an available zipcar located within 10-15 minutes of its members. This is an example of what component of the marketing mix?
Answer:Place
1c Zipcar traditionally focused on marketing t... Zipcar traditionally focused on marketing toward individuals without cars as a convenient form of alternative transportation. Zipcar has now begun to also focus its marketing toward businesses and organizations to use Zipcar for their employees. This is an example of
Answer: B2B marketing
1d
1d. Which of the following statements about Zipcar illust... Which of the following statements about Zipcar illustrates how marketing can help to enrich society
Answer: One of Zipcar's core mission is to "change the world through urban and environmental transformation"
The Balance Sheets at the end of each of the first two years of operations indicate the following: 2006 2005 Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities 150,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in-Capital in excess of par-common stock 60,000 60,000 Retained earnings 325,000 210,000 If Net Income is $115,000 and interest expense is $30,000 for 2006, what is the return on total assets for 2006 (round percent to one decimal place)
Answer:
Return on Assets (2006) = 7.60 %
Explanation:
Return on Assets = Earnings Before Interest and Tax ÷ Total Assets
Therefore,
Return on Assets (2006) = ($115,000 + $30,000) / ( $600,000 + $60,000 + $900,000) × 100
= $118,000 / $1,560,000 × 100
= 7.60 % (one decimal place)
Equivalent Units of Conversion Costs The Rolling Department of Oak Ridge Steel Company had 10,712 tons in beginning work in process inventory (70% complete) on July 1. During July, 82,400 tons were completed. The ending work in process inventory on July 31 was 7,416 tons (60% complete). What are the total equivalent units for conversion costs? Round to the nearest whole unit. 83,636 units
Answer:
Total equivalent unit 86,688
Explanation:
We will use the weighted average method of valuation.
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Item Tons Working Equivalent units
Completed unit 82,400 82,400× 100% 82,400
Closing inventory 7,416 7,416 × 60% 7,416
Total equivalent unit 86,687.6
On December 31, 2019, The Bates Company's revenue is $340,000 and expenses total $220,000 before consideration of the following: Accrued wages total $16,000; Accrued revenues total $46,000; Depreciation expense is $22,000; Rental revenue of $8,000 was earned; the rent from a tenant was initially recorded by Bates as unearned rent revenue; The income tax rate is 30% of income before income taxes. What is Bates' net income after consideration of the above information
Answer: $95,200
Explanation:
Net Income before tax = Revenue - Expenses
Revenue = Revenue + Accrued revenues + Rental revenue
= 340,000 + 46,000 + 8,000
= $394,000
Expenses = Expenses + Accrued wages + Depreciation expenses
= 220,000 + 16,000 + 22,000
= $258,000
Net Income before taxes = 394,000 - 258,000
= $136,000
Net Income after tax = 136,000 ( 1 - Tax rate)
= 136,000 ( 1 - 0.3)
= $95,200
If the inflation rate was 2.40% and the nominal interest rate was 7.20% over the last year, what was the real rate of interest over the last year? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average. Round intermediate calculations to four decimal places.
Answer:
the real rate of interest is 4.80%
Explanation:
The computation of the real rate of interest is shown below:
Real rate of interest is
= Nominal rate of interest - inflation rate
= 7.20% - 2.40%
= 4.80%
It is the difference between the nominal rate of interest and the inflation rate and the same is to be considered
hence, the real rate of interest is 4.80%
In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.15. The dividends are expected to grow at 10 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 19. The required return is 11 percent. a. What is the target stock price in five years? b. What is the stock price today?
Answer and Explanation:
The computation is shown below:
a. The Target stock price in five years is
As we know that
Target stock price in five years = Earnings per share in Year 5 × Benchmark P/E Ratio
where,
Earnings per share in Year 5 is
= D5 ÷ Pay-out Ratio
Now
D0 = $1.15 per share
D1 = $1.15 × 1.10 = $1.265per share
D2 = $1.265 × 1.10 = $ 1.3915
D3 = $1.3915 × 1.10 = $1.53065
D4 = $1.53065 × 1.10 = $1.683715
D5 = $1.683715 x 1.10 = $1.85209
Now
Earnings per share in Year 5 is
= D5 ÷ Pay-out Ratio
= $1.85209 ÷ 0.40
= $4.630225
Now
The Target stock price in five years is
= Earnings per share in Year 5 × Benchmark P/E Ratio
= $4.630225 × 19 Times
= $87.97;
b. Now the stock price today is to be shown in the spreadsheet below
What costs does Shun Electronics consider to be direct costs?
Answer:
Shun Electronics direct costs - their set up establishment cost, associated technicians cost - are direct costs.
Explanation:
Direct Costs are the costs associated with production/manufacturing, not selling & distribution.
Generally, factory costs - factory power, factory wages etc are considered to be direct costs.
In case of Shun Electronics, their set up establishment cost, associated technicians cost - are direct costs.
Which of the following are microeconomic problems? (You may select more than one answer.)(a) Work/leisure choice.(b) Marketing strategy.(c) Recession.(d) Inflation.(e) Federal budget deficit.
Answer:
(a) Work/leisure choice
(b) Marketing strategy
Explanation:
Microeconomic issues relate to those that are within the scope and power of individuals, households and firms which means that problems here will relate to decisions that these participants make in relation to resource allocation.
Choices relating to leisure or work have to do with the individual and the resources they would need or derive from either work or leisure and so are a microeconomic problem.
The marketing strategy that a firm should pursue is related to an individual firm and so is a microeconomic problem as well.
Antonio owns a small computer repair firm. Suppose the economy has been in a recession for the past five months. When preparing the company's quarterly earnings report, Antonio realizes profits are down by over 50 percent compared to last quarter. As a result, he is forced to downsize his labor force. This is an example of a(n) _____ change.
Answer:
labor force
Explanation:
Remember, the labor force refers to a ratio of the number of employed and unemployed persons in a given economy or organization. In Antonio's case, his small computer firm had been affected by the economic recession; causing a decline in his labor force.
What are the three components of the BI Ecosystem?
A. Data
B. Intelligence creation
C. Information Management
D. Innovation
The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,049. A total of 35 direct labor-hours and 195 machine-hours were worked on the job. The direct labor wage rate is $21 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $24 per machine-hour. The total cost for the job on its job cost sheet would be:
Answer:
Total cost= $7,464
Explanation:
Giving the following information:
Job 450:
Direct materials= $2,049
35 direct labor-hours
195 machine-hours
The direct labor wage rate is $21 per labor-hour.
The predetermined overhead rate is $24 per machine-hour.
The total cost is calculated using the following formula:
Total cost= direct material + direct labor + allocated overhead
Total cost= 2,049 + 35*21 + 195*24
Total cost= 2,049 + 735 + 4,680
Total cost= $7,464
What is the amount of the non-cash Items for 2015?
a. $481 million
b. $227 million
c. $311 mllon
d. $473 million?
Answer: c. $311 mllon
Explanation:
Non-cash items are those items that go into the income statement and can either increase or decrease profits but do not have an actual cash value. In other words, they may affect the calculation of profit but they do not impact the company's cash flow.
Examples include; Depreciation and Amortization
, deferred income taxes and loss on disposal of property and equipment.
From the statements of Woodlands Inc., there seems to be only one non-cash item which is Depreciation at a value of $311 million.
What are the determinants of supply? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Income unanswered Prices of other goods unanswered Technology unanswered Tastes and preferences unanswered Resource prices unanswered Number of producers
Answer:
Number of producers
Prices of other goods
Technology
Resource prices
Explanation:
Supply is the total amount of goods and services available to consumers in a market
The higher the number of producers, the higher the number of goods produced and the higher the supply all things being equal. The reverse would be the case if the number of producers fall.
If the price of other good increases, it would be more profitable to produce the other goods. As a result, the number of producers available to good would reduce.
Technological progress that reduces cost of production and makes production more efficient, would lead to an increase in supply.
If the price of inputs increases, it becomes more expensive to produce the good and as a result, supply would fall.
Marwick's Pianos Inc. purchases pianos from a large manufacturer and sells them at the retail level.The pianos cost, on average, $1,488 each from the manufacturer.Marwick's Pianos Inc. sells the pianos to its customers at an average price of $2,900 each.The selling and administrative costs that the company incurs in a typical month are presented below:Costs Cost FormulaSelling:Advertising $942 per monthSales salaries and commissions $4,799 per month, plus 3% of salesDelivery of pianos to customers $60 per piano soldUtilities $650 per monthDepreciation of sales facilities $4,945 per monthAdministrative:Executive salaries $13,566 per monthInsurance $685 per monthClerical $2,480 per month, plus $36 per piano soldDepreciation of office equipment $900 per monthDuring August, Marwick's Pianos Inc. sold and delivered 63 pianos.Required:1. Prepare an income statement for Marwick's Pianos Inc. for August. Use the traditional format, with costs organized by function.2. Prepare an income statement for Marwick's Pianos Inc. for August, this time using the contribution format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin.
Answer:
1) Marwick's Pianos Inc.
Income Statement
For the month ended August 202x
Total sales revenue $182,700
Cost of goods sold ($93,744)
Gross profit $88,956
Administrative expenses:Executive salaries ($13,566)Clerical salaries ($4,748)Depreciation office equipment ($900)Utilities ($650) ($19,864)Sales expenses:
Sales salaries and commissions ($10,280)Delivery expense ($3,780)Advertising ($942)Depreciation of sales facilities ($4,945) ($19,947)Operating income $49,145
2) Marwick's Pianos Inc.
Income Statement
For the month ended August 202x
Total sales revenue $182,700
Variable costs:
Pianos ($93,744)Sales commissions ($5,481)Clerical commissions ($2,268)Delivery expense ($3,780) ($105,273)Contribution margin $77,427
Period costs:
Executive salaries ($13,566)Clerical salaries ($2,480) Sales and commissions ($4,799)Advertising ($942)Depreciation expense ($5,845)Utilities expense ($650) ($28,282)Operating income $49,145
Explanation:
cost of a piano = $1,488
selling price per piano = $2,900
advertising $942 per month
sales and commissions $4,799 + 3% commissions on sales
delivery of pianos = $60 per piano
utilities expense = $650
depreciation expense = $4,945
executive salaries = $13,566
clerical salaries = $2,480 + $36 per piano
depreciation = $900
63 pianos sold during August
cost of goods sold = $1,488 x 63 = $93,744
total sales revenue = $2,900 x 63 = $182,700
sales commissions = $5,481
clerical commissions = $2,268
or 2018, Gourmet Kitchen Products reported $22 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 9% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2018
Answer:
Economic value added = $1,250,000
Explanation:
Economic value added (EVA) = Net operating profit after taxes - Invested capital * cost of capital
Economic value added= [($22,000,000 - $18,000,000) * (1 - 0.35)] - [$15,000,000 * 9%]
Economic value added = ($4,000,000 * 0.65) - $1,350,000
Economic value added = $2,600,000 - $1,350,000
Economic value added = $1,250,000
Lauren Clark works for a pottery shop. She works 40-hour weeks (5 days) and gets paid $25 per hour. If she exceeds her normal 40 hours, she gets paid time and a half. On the first week of the year, she worked a total of 38 hours but got paid 46 hours because the 1st day of the year the pottery shop was closed but she still got paid for the day. The following 4 days, she had 1.5 hours of overtime per day. How much of her pay would be considered direct labor
Answer:
D. $950; 425
Explanation:
Remember, direct labor refers to the actual time spent on working such as using machinery, performing tasks that leads to the production of products or services. Indirect labor involves time activites that do not involve any production of products or services.
First, direct pay:
38 hours of work x $25 = $950$950
Indirect pay;
8 hours from the 46 hours she was paid (8 x $25) = $200For 4 days she had 1.5 hours of overtime per day (4 x 1.5 x 37.5) = $225.Total = $425
Note: by saying if she exceeds her normal 40 hours, she gets paid time and a half implies 1.5 * $25 ($37.5)
What was your profit or loss over the day (in $)?
Answer:
profit or loss over the day (in $) is the subtraction of sell price(in $) from the purchase price(in $) at the end of the day.
Explanation:
To find the percentage of profit or loss we first find the profit or loss by the subtraction of sell price from the purchase price and than divide the result by the purchase price and multiply with 100.
Formoula for finding the percentage profit or loss= (sell price- purchase price)*100/(purchase price)
Homeowners insurance gives you both property and liability protection.
Answer:
True
Explanation:
If you have drunk friends you want this insurance.
True. Homeowners insurance provides both property and liability protection.
What is property protection?The property protection aspect of homeowners insurance covers the physical structure of the home, as well as personal belongings within the home, against perils such as fire, theft, and vandalism.
It may also provide coverage for additional structures on the property, such as garages or sheds. Liability protection, on the other hand, safeguards homeowners from legal and financial responsibility if someone is injured on their property or if they accidentally cause damage to someone else's property.
This coverage typically includes legal expenses and medical payments to the injured party.
The answer is true.
Read more about liability protection here:
https://brainly.com/question/3136955
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Purple Dog Pet Supply Inc. (PDPS) released its annual results and financial statements. Eleanor is reading the summary in the business pages of today’s paper. In its annual report this year PDPS reported a net income of $180,000. Last year, the company reported a retained earnings balance of $510,000, whereas this year it increased to $600,000. How much was paid out in dividends this year?
Answer:
$90,000
Explanation:
Purple dog pet supply released its annual results and financial statement
It reported a net income of $180,000 this year
Last year the company reported a retained earnings of $510,000
This year it increased to $600,000
Therefore the amount that was paid out in dividend this year can be calculated as follows
= $180,000 + $510,000-($600,000)
= $690,000-$600,000
= $90,000
Hence the amount that was paid out in dividend this year is $90,000
Vulnerability assessment is a curvey of a system to identify:_____.
Answer:
Threats and the risks they pose.
Explanation:
Vulnerability assessment is the identification, evaluation, classification, quantification and also the prioritization of the risks or vulnerabilities in a system. One main importance of carrying out this assessment is to find out the potential risks in a system before attackers find them. Through this assessment future risks can also be averted.
Answer:
Specific risks
Explanation:
Vulnerability assessment is defined as a process used to identifying, quantifying, and ranking vulnerabilities or weaknesses in a given system.
It has been applied in various fields like engineering, psychology, and economics.
There are different variables that gives rise to system vulnerability, and vulnerability asses helps identify specific risks.
The formula for Vulnerability is
Vulnerability = Risk + Response
Vulnerability assessment helps reduce effects of risks and also to avoid future risks
Green Corporation reported pretax book income of $1,012,000. During the current year, the net reserve for warranties increased by $50,600. In addition, tax depreciation exceeded book depreciation by $103,000. Finally, Green subtracted a dividends received deduction of $25,300 in computing its current year taxable income. Green's cash tax rate is:
Answer:
19.38%
Explanation:
Green corporation reported pretax book income as $1,012,000
The net reserve warranties increased by $50,600
Tax depreciation exceeded book depreciation by $103,000
The dividend received a deduction of $25,300
Cash tax rate= taxes payable/pre tax book income
The first step is to calculate the taxes payable
= $1,012,000 + $50,600 - $103,000 - $25,300 × 21%
= $934,300× 0.21
= $196,203
Therefore the cash tax rate can be calculated as follows
Cash tax rate= $196,203/$1,012,000
= 0.1938
= 19.38%
Hence Green's cash tax rate is 19.38%
Pigot Corporation uses job costing and has two production departments, M and A. Budgeted manufacturing costs for the year are as follows: Dept. MDept. A Direct materials$718,000 $118,000 Direct labor 218,000 836,000 Factory overhead 654,000 418,000 The actual direct materials and direct labor costs charged to Job. No. 432 during the year were as follows: Direct materials $58,000 Direct labor: Department M$26,000 Department A 30,000 56,000 Pigot applies manufacturing overhead to production orders on the basis of direct labor cost using departmental rates predetermined at the beginning of the year based on the annual budget. The total cost associated with Job. No. 432 for the year should be:
Answer:
Total cost= $207,000
Explanation:
Giving the following information:
Budgeted manufacturing costs Dept. M Dept. A:
Direct labor 218,000 836,000
Factory overhead 654,000 418,000
Job. No. 432:
Direct materials $58,000
Direct labor: Department M$26,000 Department A 30,000
First, we need to determine the predetermined overhead rate for each department:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Departement M= 654,000/218,000= $3 per direct labor dollar
Department A= 418,000/836,000= $0.5 per direct labor dollar
Now, we can calculate the total cost:
Total cost= direct material + direct labor + allocated overhead:
Total cost= 58,000 + 56,000 + (3*26,000 + 0.5*30,000)
Total cost= $207,000
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following resultsDEPENDENT VARIABLE: AVC R-SQUARE F-RATIO P-VALUE ON FOBSERVATIONS: 35 0.8713 108.3 0.0001VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 43.40 13.80 3.14 0.0036Q -2.80 0.90 -3.11 0.0039Q2 0.20 0.05 4.00 0.0004What is the estimated equation for average variable cost (AVC)?What is the estimated equation for short-run marginal cost (SMC)?What is the estimated equation for total variable cost (TVC)?At what level of output is AVC at its minimum point for Straker Industries?If Straker Industries produces 20 units of output, what is its estimated TVC, AVC and SMC?
Answer:
Note: The organized table is attached as picture below
i. What is the estimated equation for average variable cost (AVC)?
Intercept value = 43.40, Parameter estimates of Q and Q2 = -2.80 & 0.20 respectively.
Hence, the estimated equation for AVC is:
AVC = 43.40 - 2.80Q + 0.20Q2
ii. What is the estimated equation for total variable cost (TVC)?
Similarly, the estimated equation for TVC is
= AVC * Q
= 43.40Q - 2.80Q2 + 0.20Q3
iii. At what level of output is AVC at its minimum point for Straker Industries?
AVC will attain its minimum value when its derivative is set = 0. This occurs when:
-2.80 = -0.40Q
Q = 7.
iv. What is the estimated equation for short-run marginal cost (SMC)?
SMC is the derivative of TVC, its estimated equation is given by:
= 43.40 - 5.60Q + 0.60Q2
iv. If Straker Industries produces 20 units of output, what is its estimated TVC, AVC and SMC?
TVC = 43.40Q - 2.80Q^2 + 0.20Q^3
TVC = 43.40(20) - 2.80(20)^2 + 0.20(20)^3
TVC = 868 - 1120 + 1600
TVC = 1348
At 20 unit of output, its estimated TVC is 1348
AVC = 43.40 - 2.80Q + 0.20Q^2
AVC = 43.40 - 2.80(20) + 0.20(20)^2
AVC = 43.40 - 56 + 80
AVC = 67.4
At 20 unit of output, its estimated AVC is 67.4
SMC = 43.40 - 5.60Q + 0.60Q^2
SMC = 43.40 - 5.60(20) + 0.60(20)^2
SMC = 43.40 - 112 + 240
SMC = 171.4
At 20 unit of output, its estimated SMC is 171.4.
5. The demand for good X is estimated to be QXd = 10,000 - 4PX + 5PY + 2M + AX where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Determine 1. a. Own price elasticity of demand b. Cross price elasticity of demand c. Income elasticity of demand d. Is good y a complement or a substitute e. Is good is normal or inferior
Answer:
We need to calculate quantity demanded of good X
Qxd = 10,000 − 4PX + 5PY + 2M + AX
Qxd = 10,000 − 4(50) + 5(100) + 2(25000) + 1000
Qxd = 10,000 - 200 + 500 + 50000 + 1000
Qxd = 61,300
a. E(P) = ∆Qx/∆Px * (Px / Qx)
E(P) = - 4 * (50 / 61,300)
{where, ∆Qx/∆Px is the price coefficient = -4}
E(P) = = - 0.003 (The absolute value is 0.003)
Demand is inelastic, because price elasticity is less than 1.
b. CPED = ∆Qx/∆Py * (Py / Qx)
CPED = 5 * (100 / 61,300)
[where, ∆Qx/∆Py is the price coefficient of good Y = 5]
CPED = 0.008
c. IED = ∆Qx/∆M * (M / Qx)
= 2 * (25,000 / 61,300)
[where, ∆Qx/∆M is the income coefficient = 2]
= 0.816
d. Good Y and X is subtitles because CPED is positive.
e. Good X is a normal good because income elasticity is positive.
Simon Company had the following summarized operations for the month of May: cash sales, $32,000; sales on account, $18,000; expenses paid in cash, $5,000; expenses incurred on credit, $10,000. In addition, the company purchased equipment for $8,000 on account and supplies for $5,000 cash. The net income for the month of May is
Answer:
$35,000
Explanation:
The computation of net income for the month of may is given below:-
Net income for the month of may = Revenues - Expenses
= ($32,000 + $18,000) - ($5,000 + $10,000)
= $50,000 - $15,000
= $35,000
Therefore for computing the net income for the month of may we simply applied the above formula.
Hence, the net income is $35,000