Complete Question:
Use the following scenario to answer the following questions:
In 2011, three firms were selling cellular phone service for a price of $40 per month in Pittsburgh, Pennsylvania. Each firm serviced 100 cell phone customers; thus, all firms together serviced a total of 300 customers. In 2012, five firms were selling cellular phone service for a price of $30 per month. Each firm serviced 70 cell phone customers; thus, all firms together serviced a total of 350 customers. Assume marginal cost is $0 (zero) for all firms and thus total revenue is equal to total profit.
Due to the entrance of two firms in 2012, total monthly profits for all firms in the market decreased by $3,000 due to the ________ effect and increased by $1,500 due to the ________ effect.
Answer:
Due to the entrance of two firms in 2012, total monthly profits for all firms in the market decreased by $3,000 due to the Price effect and increased by $1,500 due to the Output effect.
Explanation:
The effect of a transition in the value of a products or else in service on consumer spending on the economy. The price effect could also relate to the price impact of an occurrence. The price effect is the impact of replacement and revenue.
The condition where a price hike in one commodity raises the cost of output and decreases the production level of the company thus lowering prices for additional inputs; alternatively, a reduction in the cost of supply
The result is that the price exceeds marginal costs and improve production increases profit. Prices are affected by the price reduction and profit reduction of the increased production.
If the bank you own has no excess reserves and a sound customer comes in asking for a loan, should you automatically turn the customer down, explaining that you don't have any excess reservesLOADING... to lend out? Why or why not? What options are available for you to provide the funds your customer needs?
Answer:
No.
Explanation:
Based on the information provided within the question it can be said that in this scenario you should Not turn down the customer. Mainly because the funds/reserves needed can be acquired in a variety of ways. Such options include borrowing at the discount window, borrowing at the federal funds market, or even issuing negotiable CD's. Therefore since there are options for providing the funds the customer needs, then the customer should not be rejected.
Brown Co. pays weekly salaries of $10,500 on Friday for a five-day work week ending on that day. Assuming the end of the accounting period ends on Wednesday, the adjusting journal entry will include a:_______.
Answer:
Explanation:
The adjusting entry is shown below:
Wages Expense A/c Dr $6,300
To Wages payable A/c $6,300
(Being the wages are adjusted)
The computation is shown below:
= Five days salaries ÷ number of days in a week × given days
= $10,500 ÷ 5 days × 3 days
= $6,300
So, the wages expense is debited for $6,300 and wages payable is credited for $6,300
To create an adjusting journal entry for salaries in an incomplete work week, we calculate the daily salary rate and multiply it by the number of days in the accounting period. For Brown Co., this results in a debit to the Salaries Expense account and a credit to the Salaries Payable account for $6,300, which reflects the salary expense for three days ending on Wednesday.
Explanation:The student has asked a business-related accounting question about creating an adjusting journal entry for salaries in an incomplete work week. Brown Co. pays weekly salaries of $10,500 on Friday, which corresponds to a five-day work week that ends on that same day. However, if the accounting period ends on Wednesday, we need to adjust for the three days of salary that are attributable to this accounting period.
To calculate the salary that needs to be accounted for in this period, we divide the total weekly salary by the number of workdays in the week. This gives us the daily salary rate: $10,500 / 5 days = $2,100 per day. Since the accounting period ends on Wednesday, we have worked three days of the week: Monday, Tuesday, and Wednesday. Therefore, the salary expense that pertains to this accounting period is 3 days x $2,100/day = $6,300.
The adjusting journal entry would then include a debit to the Salaries Expense account for $6,300, and a credit to the Salaries Payable account for the same amount. This entry recognizes the expense incurred during the current accounting period and creates a liability for the amount due to the employees at the end of the period.
Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by globalizing their markets. This involves ____.
A. reguling markets
B. Privatizing state-owned enterprise
C. decreasing competition
D. reducing foreign investment
Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by globalizing their markets. This involves reducing foreign investment. Hence, option D is correct.
What is foreign investment?Investments made by foreigners in the domestic companies and assets of other countries are referred to as "foreign investments." Large multinational corporations will expand their operations and invest more money in other countries as they look for new opportunities for economic development.
A large Australian mining conglomerate purchases a smaller Angolan business in an effort to diversify. These are all examples of foreign direct investment, in which a foreign investor chooses to buy stock or other ownership stakes in a company.
By expanding our export possibilities and bringing in new businesses with connections to other markets, it improves our overall export performance.
Thus, option D is correct.
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Which of the following demonstrates the going concern concept?a) AQG Industries sold $20,000 of product on credit to SSA Manufacturing. SSA did not pay on time. AQG decides that it is fruitless to pursue collection so they write off the receivable from SSA.b) Gail's Garments has been in business for 20 years and during that period the company has gained a good reputation. Gail would like the Controller to acknowledge the value of that reputation by including it as an asset worth $100,000 but the controller says she cannot do it.c) AQG Industries purchases $20,000 of product on credit from RSI Manufacturing. AQG records the purchase as an increase in inventory and an increase in accounts payable. AQG feels that they will be able to realize the value from the inventory and settle the obligation to RSI in the weeks to come.
Answer:
b) Gail's Garments has been in business for 20 years and during that period the company has gained a good reputation. Gail would like the Controller to acknowledge the value of that reputation by including it as an asset worth $100,000 but the controller says she cannot do it.
Explanation:
Going concern is a concept in accounting which holds that a company is a going concern when it has the resources to continue in operation indefinitely and that it will not go bankrupt.
Applying the above meaning of 'going concern' to the given scenario, it can be seen that Gail's Garment has been in business for 20 years and has a good reputation to the point that it wants to reflect some value for 'goodwill' in its balance sheet.
Having operated successfully for 20 years, then the company has been a going concern. Generally, going concern issues are those that pertain to more than a period of 12 months.
_____ management stresses continuous improvement, employee involvement, learning from customers and employees, and accurate standards for identifying and eliminating problems.
Answer: Total quality management.
Explanation:
Total quality management is a management style in which, there is a continuous effort to increase effectiveness of product/services delivered by a company, this is achieved by constantly training workers to effectively carry out their duties and constant communication with consumers of products to know areas that needs improvement in product/service delivery.
What type of cost is incurred when a project must be conducted faster than normal, and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary?
Answer:
Expedited costs
Explanation:
Expedited costs is the cost or an expense which is defined as the extra cost or an additional cost like higher early prices, overtime and express freight. This cost is incurred in order to fast the tracking replacement or repairs of the damaged assets or lost assets. These kinds of the expenses are not covered under the normal fire insurance policy until specifically included.
Therefore, the expedited cost is incurred when the project need to be performed faster than usual and the overtime for the workers as well as the additional charges are paid for fast delivery from suppliers.
An oligopoly is a market in which a the actions of one seller in the market have no impact on the other sellers' profits. b firms are price takers. c there are many price-taking firms, each offering a product similar or identical to the products offered by other firms in the market. d there are only a few sellers, each offering a product similar or identical to the products offered by other firms in the market.
Answer:
The correct answer is option d.
Explanation:
An oligopoly is a market structure where there are a few producers producing homogeneous products or similar products which are close substitutes. Because of a few firms, there is a high degree of competition in the market.
The market decisions of a firm affect its rivals, so all the firms are interdependent on each other.
The firms are price makers. There is high restrictions on entry of firms in the market.
Which of the following options has drastically reduced the costs of operating and transacting on a global scale?
A. Internet
B. Social network
C. Intranet
D. Extranet
E. Value network
Answer: Internet.
Explanation:
The internet is an interconnecting platform, where computer users from different locations around the world can easily share information and communicate among themselves. The internet has reduced the cost of doing business, because a person does not need to be physically present to transact business, as most transactions can now be completed over the internet.
In an attempt to re-establish a prominent market dominance, Merith Vern, a goods transportation company, performed a study of its current and potential environment in which its service would be marketed. In this scenario, Merith Vern has most likely used _____ in an attempt to re-establish the prominence of its service in the market.
Answer:
B. SWOT Analysis
Explanation:
First, the multiple choices
a) Ansoff's strategic opportunity matrix
b) a SWOT analysis
c) the General Electric Model
d) a mission statement
A SWOT analysis also referred to as a SWOT matrix represents a strategic plan an individual or organisation can employ to access the various strengths, weaknesses, opportunities and threats that are related to its environment. This analysis is useful for planning purposes both in current and future events.
Merith Vern is therefore undertaking a SWOT analysis in order to effectively plan for how to re-establish prominent market dominance. This will mostly be done by maximising its strengths and opportunities (especially above its competitors) and reducing its weaknesses and threats.
Specifically, if the analysisi is based on current or potential environmental factors, then it is SWOT analysis.
A large corporation that runs nursing homes estimates that changes to Medicare will result in lower payments by Medicare to nursing homes for short-term stays by patients that require therapy or care upon leaving hospitals. Assume the corporation is considering expanding the number of "Beds" it offers at its nursing homes.Given the changes to Medicare, if the marginal benefit of offering an additional bed is $5,000 and the marginal cost is $6,000 per bed, then the corporation __________ (should / should not) offer additional beds.
Answer:
Should not
Explanation:
From the question, marginal cost exceeds the marginal benefit to be derived from the addition of beds.
Thus MC > MB
This means that it will cost the Corporation more to expand the number of beds than the benefits that they will derive from adding this feature. This shows that they are better off avoiding the addition of beds as this would make them to run at a loss. Hence, they should not offer additional beds.
As the strategic manager of CutRite Scissors, you are tasked with producing a strategy forintroducing a new line of premium scissors. Your competitor produces a line of similar scissors at acost of $1 and sells them for $12. Because your company has inferior production capabilities, yourscissors will cost $3 each to produce. However, your handle is proven to be more comfortable thanyour competitors'. Assuming you are guaranteed to sell the same number of units as yourcompetitor, which of the following strategies is most likely to achieve a competitive advantage?
a. Reduce the quality of materials used in CutRite scissors to bring unit costs down to $1, thensell the scissors for $12.
b. Continue to produce CutRite scissors for $3 but set the price at $10.
c. Offer a buy-one-get-one-free sale on CutRite scissors.
d. Market CutRite scissors as a higher-quality alternative and sell them for $15.
Answer:
d. Market CutRite scissors as a higher-quality alternative and sell them for $15.
Explanation:
Remember, competitive advantage means been in a favorable or superior position as a company.
Note that, from the question irrespective of the price, CutRite Scissors will sell the same number of units as their competitor.
Therefore, marketing CutRite scissors as a higher-quality alternative and sell them for $15.
The Whole Community concept means that residents, emergency management practitioners, organization and community leaders, and government officialsA. True.B. False.
Answer:
A: True
Explanation:
The whole Community concept is a practice by which residents, emergency management practitioners, organizational and government officials conclude the best techniques to build and increase their capacities, assets, and interests by collecting the information of requirements of their respective communities. By performing this, a better dynamic way of societal protection and flexibility is built. We can say that the Whole Community is a philosophical way to think about management regarding emergency supervision.
Regardless of the outcome in the long run, ______________________ always has the effect of stimulating the economy in the short run.
Answer:
D. Expansionary Monetary Policy
Explanation:
First, the Options
a. tight monetary policy
b. contractionary monetary policy
c. reverse quantitative easing policy
d. expansionary monetary policy
The Expansionary monetary policy represents a policy of the Central Bank or the federal reserve used as a tool to boost or stimulate the economy. Some of the expansionary monetary policy actions of the Central Bank include: increases the supply of money into the economy and the lowering of interest rates which results in increased aggregate demand and subsequently a boost in the growth of the gross domestic product.
A good example of ths monetary policy is when the U.S. Federal Reserve uses the open market operations tool which involves it buying its member banks treasury notes thereby increasing the amount of money in circulation.
Eleanor has money to invest and is considering buying a company. When comparing her alternatives, her ________ on any investment is the rate of return that she could earn on a similar investment.
Answer:
OPPORTUNITY COST
Explanation:
Eleanor has money to invest and is considering buying a company. When comparing her alternatives, her opportunity cost on any investment is the rate of return that she could earn on a similar investment.
Investors are generally presented with options about what to invest their money in, in order to receive not just the highest but also the safest return. However if the investor chooses an alternative, the return he would have earned from the other investment becomes the opportunity cost of the foregone alternative.
will mark BRILLIANT !!! Over the past few decades, what has been shown about school readiness programs? A . They are too challenging and should be redesigned.
B. They have a positive impact on the pre-kindergarten child.
C. They promote anxiety because children are too young to be away from home.
D. They teach children more about functioning in a social institution than elementary school.
They have a positive impact on the pre-kindergarten child.
Explanation:
During 1999 Florida interacted more closely with the readiness of students when implementing the School Readiness Act.
Childcare Center Director , in charge of a public or private school, an after-school, school readiness, pre-K, neighborhood center or other early childhood programs
The objective of the redevelopment of early childhood education through the School Readiness Act was to make young children better students.
The school readiness program assists pre-school children in their social and behavioral preparation to enter school.
For the past ten years, Bill and Margaret have saved money to go to the Super Bowl should their team, the Chicago Bears, reach the finals of the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. Since all packages are pretty much the same, they have chosen one that fits their budget. Bill and Margaret are most likely exhibiting ________.
a) complex buying behavior.
b) dissonance-reducing buying behavior.
c) habitual buying behavior.
d) consumer capitalism.
e) consumer ethnocentrism.
Answer: (B) Dissonance-reducing buying behavior
Explanation:
The dissonance reducing buying is refers to the customer behavior that occur due to the high price and high involvement in the various types of products.
In this type of buying method we sees less difference between the different types of brands. The buyer purchasing the products and the services that are easily available in the market and we the buyer believes that all the brands are almost similar.
According to the given question, the bill and the Margaret exhibiting the dissonance-reducing buying behavior. Therefore, The option (B) is correct answer.
Bill and Margaret's decision to choose a Super Bowl package that fits their budget, when all offers are similar, illustrates dissonance-reducing buying behavior. They are seeking to minimize any post-purchase doubt or discomfort by opting for a solution that is most justifiable on monetary grounds.
Explanation:In this scenario, Bill and Margaret are most likely exhibiting dissonance-reducing buying behavior. This type of buying behavior is observed when consumers are facing a difficult decision between highly similar products or services. In such cases, they often choose the option that is most easily justified, for instance, the one that fits within their budget. Here, since all the tour package offers to the Super Bowl are almost identical, Bill and Margaret selected the one that was within their budget. The decision-making process in this case revolves around reducing after-purchase dissonance or doubt about the choice they made.
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Katie is looking over some of the product histories for the company. She has noticed that many more products have been rendered obsolete when compared to products 10 years ago. What impact does this have on companies?
Correct/Complete Question:
Katie is looking over some of the product histories for the company. She has noticed that many more products have been rendered obsolete when compared to products 10 years ago. What impact does this have on companies?
A. It makes it easier for the company to define the appropriate time period.
B. It makes it easier to track the liabilities for the company.
C. It makes it more difficult for the company to define an appropriate time period.
D. It makes it easier to determine the net income for the company.
Answer:
C, it makes it more difficult for the company to define an appropriate time period.
Explanation:
It is difficult to fro the company to define an appropriate time period because products get obsolete very quickly and as such the company is at loss as for what products had longevity or influence in market.
I hope this helps.
Increased product obsolescence indicates a faster product life cycle likely due to innovation or market changes. It could mean higher investments in R&D, retooling, and marketing but also potential opportunities for engagement with new products. This can have implications for the company's financials as well as customer relationships.
Explanation:When a product becomes obsolete, it means that it's no longer in use or has been replaced by newer technology or alternatives. This increased obsolescence in Katie's company can have several effects.
It suggests a faster-paced product life cycle, which could indicate that the company is innovating rapidly, or that products are becoming outdated more quickly due to rapid changes in the market or technology.This could have financial implications for the company. Frequent shifts in the product portfolio could mean more investments in R&D (Research and Development), retooling, and marketing. At the same time, it might also shorten the recovery period for these investments.Obsolescence also affects customer relationships. Constant changes could be disruptive for customers, especially if they have to bear the cost or inconvenience of transition. However, it can also be an opportunity to maintain customer interest and engagement with new and improved offerings.Learn more about Product Obsolescence here:https://brainly.com/question/32481063
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When applying for jobs, job seekers often focus on a desired salary while ignoring other aspects of the job offer such as benefits, fit with the job, and working environment. In many cases, the salary may be good, but there are other, negative features of the job not being considered. This is an example of
A. anchoring bias
B. representative bias
C. framing bias
D. overconfidence bias
E. hindsight bias
Job seekers focusing solely on salary and ignoring other job offer aspects exemplifies an anchoring bias. This cognitive tendency to fixate on a single piece of information can lead to an incomplete assessment of the job's value, as it disregards other vital components such as benefits and the working environment.
Explanation:Focusing on a desired salary while ignoring other aspects of the job offer such as benefits, the job fit, and working environment, and thereby overlooking negative features of the job, is an example of an anchoring bias. Anchoring bias occurs when individuals fixate on a single piece of information—such as the initial salary figure—when making a decision. This can lead to a skewed decision-making process where other important aspects of a job offer are undervalued or ignored entirely.
Anchoring bias can impact various scenarios beyond salary discussions, including real estate choices, where a realtor may influence potential renters with initial price anchors. Similarly, in a statistical reasoning context, anchoring bias can lead individuals to rely heavily on an initially presented number, as demonstrated by Tversky and Kahneman's experiments with the number of African nations in the United Nations. To make the most informed decisions, job seekers should be aware of this bias and strive to consider all available information, not just the initial figures presented to them.
Focusing on a desired salary while ignoring other important aspects of a job, such as benefits, fit with the job, and working environment, is an example of anchoring bias. Hence option A is correct.
Anchoring bias refers to the tendency for individuals to rely too heavily on a single piece of information— in this case, the salary— while disregarding other significant details. This bias can lead to poor decision-making, similar to how in other situations, initial values or features anchor one's perceptions and affect subsequent judgments.
This situation exemplifies anchoring bias, where the job seeker focuses solely on the salary, neglecting other critical factors such as benefits and work environment. Anchoring bias can lead to poor decisions by relying too heavily on one piece of information.
Competition between manufacturer brands and private distributor brands is becoming more intense in several major categories. True or False?
Answer:
TRUE
Explanation:
Competition between the brands of production and private distributors in several important categories becomes more and more acute.
A private label is a commodity that is created specifically for a store. The supplier will commercialize the brand under its own brand name. product rates are usually set at a lower cost than conflicting brand names. Consumers frequently believe that private brands are of lower quality, but that perception changes.Pear Tree Electronics is a large conglomerate that operates in 17 different countries. The corporate executives at the headquarters have decided that the company's objective for the next two years will be to increase its customer equity, or the value of potential future revenues generated by all its customers in a lifetime. Based on this guideline received from the top management team, the product leader of the home audio division has decided to adopt a cost-leadership strategy in all his 17 units. Thus, the decision made by the product leader best illustrates a _______ strategy.
Answer: Business strategy
Explanation:
The business strategy is one of the type of systematic process for analyzing the main goals of an organization by making a summarized report based on the actual expectations of the consumers.
The importance of the business strategy is that it helps in achieving the main goals of the company and also sustain the various types of competitive benefits in the market.
According to the given question, the given product leader given situation best illustrate the business strategy in order to achieving the various types of goals and the superior performance in an organization.
Therefore, Business strategy is the correct answer.
The product leader's decision to adopt a cost-leadership strategy across multiple international units represents a global standardization strategy, focusing on economies of scale and competitive pricing to increase customer equity. This decision aligns with Michael Porter's cost leadership strategy, which aims to compete by keeping costs below those of competitors while operating in a broad market.
Based on the guideline from top management to increase customer equity and the product leader's decision to adopt a cost-leadership strategy in all 17 units of the home audio division, the decision made by the product leader best illustrates a global standardization strategy. This type of strategic approach implies that the product leader is aiming to exploit the economies of scale and produce a standardized product that delivers value to the customer primarily through its competitive pricing across different markets. The global standardization strategy is generally contrasted with strategies that focus more on adaptation to local markets or that balance cost efficiencies with product differentiation.
Michael Porter's concepts differentiate between a cost leadership strategy, which focuses on minimizing costs and price to compete in the market, and a product differentiation strategy, which focuses on creating unique products that can command a premium price. The product leader's choice of a cost-leadership approach aligns with Porter's recommendations for pursuing aggressive programs to manage costs for competitive advantage while operating in a broad market as opposed to a niche segment, known as a focus strategy.
Moreover, firms practicing a cost leadership strategy like Pear Tree Electronics must be vigilant in maintaining low costs while offering products that meet minimum market standards. This strategy aligns well with the desire to expand customer equity, as it aims to attract price-sensitive customers and secure a large market share through competitive pricing.
When the government imposes a corrective tax, the market produces a socially optimal quantity, but there is a welfare loss becauseI. there is a decrease in consumer surplusII. there is a decrease in producer surplusIII. the tax decreases employees' incentives to work
Answer:TRUE
Explanation:Corrective taxes are taxes imposed on the certain goods and services rendered within an Economy such the production of some harmful substances and foods. This tax will Decrease the surplus of producers to produce more making it more expensive to produce such goods.
It will also Decrease consumer surplus as the increased taxes will make the producers to increase the price of the product.
Workers Incentive will be reduced as a result of an increase in the cost of production.
Short-term tactical plans are defined by:_______.
A. Defined by Customer
B. Set before objectives can be determined
C. Supportive of strategic objectives
D. Normally opposite of long range objectives.
Answer: Supportive of strategic objectives.
Explanation:
Short term plans are plans an organization makes that they use to achieve an objective within a short period. Short term plans are usually steps geared towards an organization achieving it's overall long term goals(strategic objectives). Short term plans makes it possible for an organization to achieve it's overall goals.
As a graduating senior, Chun Kumora of Manhattan, Kansas, is eager to enter the job market at an anticipated annual salary of $54,000. Assuming an average inflation rate of 3 percent and an equal cost-of-living raise, what will his salary possibly become in ten years? In 20 years? (Hint: Use Appendix A.1.) To make real economic progress, how much of a raise (in dollars) does Chun need to receive next year and the year after?
Answer:
a. Chun Kumora's salary in ten years=$72,571.48
b. Chun Kumora's salary in twenty years=$97,530.01
c. Amount of raise Chun needs to receive next year=$1,620
d. Amount of raise Chun needs to receive the year after=$3,288.60
Explanation:
When choosing a career, there are various factors that need to be considered. One such factor is the salary. The expected salary should match with the salary average salary in the market. In our case, the annual salary is expected to be $54,000, but in order to estimate future salary requirements, the inflation rate has to be considered since the value of money reduces with time. Lets solve Chun Kumora's case as follows;
a. Salary in ten Years
The future value of the $54,000 salary in ten years while accounting for inflation can be expressed as;
F.V=P.V(1+r)^n
where;
F.V=future value
P.V=present value
r=inflation rate
n=number of years
In our case;
F.V=unknown, yet to be determined
P.V=$54,000
r=3%=3/100=0.03
n=10 years
replacing;
F.V=54,000(1+0.03)^10
F.V=54,000(1.03)^10
F.V=$72,571.48
Chun Kumora's salary in ten years=$72,571.48
b. Salary in twenty Years
The future value of the $54,000 salary in twenty years while accounting for inflation can be expressed as;
F.V=P.V(1+r)^n
where;
F.V=future value
P.V=present value
r=inflation rate
n=number of years
In our case;
F.V=unknown, yet to be determined
P.V=$54,000
r=3%=3/100=0.03
n=20 years
replacing;
F.V=54,000(1+0.03)^20
F.V=54,000(1.03)^20
F.V=$97,530.01
Chun Kumora's salary in twenty years=$97,530.01
c.
Amount of raise Chun needs to receive next year;
In our case;
F.V=unknown, yet to be determined
P.V=$54,000
r=3%=3/100=0.03
n=1 year
replacing;
F.V=54,000(1+0.03)^1
F.V=54,000(1.03)^1
F.V=$55,620
Raise=Amount next year-current amount
where;
Amount next year=$55,620
current amount=$54,000
replacing;
Raise=56,620-54,000=$1,620
d.
Amount of raise Chun needs to receive the year after;
In our case;
F.V=unknown, yet to be determined
P.V=$54,000
r=3%=3/100=0.03
n=2 year
replacing;
F.V=54,000(1+0.03)^2
F.V=54,000(1.03)^2
F.V=$57,288.60
Raise=Amount next year-current amount
where;
Amount next year=$57,288.60
current amount=$54,000
replacing;
Raise=$57,288.60-54,000=$3,288.60
Chun's salary in 10 years could potentially become $72,597, Chun's salary in 20 years could potentially become $97,715 and To maintain his purchasing power, Chun needs to receive a raise of $1,620 next year and $1,620 the year after, to keep pace with the 3% inflation rate.
The formula for future value with inflation:
[tex]\[ \text{Future Value} = \text{Present Value} \times (1 + \text{Inflation Rate})^{\text{Number of Years}} \][/tex]
alary in 10 years:
[tex]\[ \text{Future Salary in 10 years} = 54,000 \times (1 + 0.03)^{10} \][/tex]
[tex]\[ \text{Future Salary in 10 years} = 54,000 \times (1.03)^{10} \][/tex]
[tex]\[ \text{Future Salary in 10 years} \approx 54,000 \times 1.3439 \][/tex]
[tex]\[ \text{Future Salary in 10 years} \approx \$72,597 \][/tex]
Salary in 20 years:
[tex]\[ \text{Future Salary in 20 years} = 54,000 \times (1 + 0.03)^{20} \][/tex]
[tex]\[ \text{Future Salary in 20 years} = 54,000 \times (1.03)^{20} \][/tex]
[tex]\[ \text{Future Salary in 20 years} \approx 54,000 \times 1.8061 \][/tex]
[tex]\[ \text{Future Salary in 20 years} \approx \$97,715 \][/tex]
Required Cost-of-Living Raise:
To maintain Chun's purchasing power (in real terms, adjusting for inflation), he needs to receive a raise that matches or exceeds the inflation rate each year.
Next Year's Raise:
The raise Chun needs next year to keep up with inflation can be calculated as:
[tex]\[ \text{Raise Next Year} = 54,000 \times 0.03 \][/tex]
[tex]\[ \text{Raise Next Year} = \$1,620 \][/tex]
Following Year's Raise:
Similarly, the raise Chun needs the year after would also be:
[tex]\[ \text{Raise Following Year} = 54,000 \times 0.03 \][/tex]
[tex]\[ \text{Raise Following Year} = \$1,620 \][/tex]
Envoy Co. manufactures and sells household products. Envoy experienced losses associated with its small appliance group. The small appliance group represents a major line of Envoy’s business. Envoy plans to sell the small appliance group with its operations. What is the earliest point at which Envoy should report the small appliance group as a discontinued operation?
Answer:
Since it is case in Envoy that the small alliance group is a distinguishable separate business, the reporting as discontinued operation can be done in the current year
Explanation:
The small appliance group represents a major line of Envoy’s that is planned for sale with its operations, the earliest point at which Envoy should report the small appliance group as a discontinued operation is the same year it was decided that the operations of the small appliance group will be discontinued.
The conditions stated under the International Financial Reporting Standard is that ''First, the asset or business component must be disposed of or reported as being held for sale. Second, the component must be distinguishable as a separate business that is being removed from operation intentionally''
Since it is case in Envoy that the small alliance group is a distinguishable separate business, the reporting as discontinued operation can be done in the current year
Top managers are responsible for the ultimate responsibilities within an organization,which include which of the following? (Choose all that apply.)
1.How departments should interact
2.Cross-departmental responsibility
3.Middle managers and their employees
4.Establishment of organizational goals?
Answer:
The answer is establishment of organisational goals
Explanation:
The top managers set long-term goals and define strategies to achieve them. they make the decisions that affect the whole company such as financial investments, mergers and acquisitions, partnerships and strategic alliances, and changes to the brand or product line of the organization.
Boretti has $400,000 in a stock fund. The fund pays a 10% return, compounded annually. If he does not make another deposit into the account, how long will it take for the account to increase to $2 million?
Answer:
it will take 16.89 years for the account to increase to $2 million.
Explanation:
PV = $400,000
FV = $2,000,000
I/Y = 10%
Solving for N in:
FV = PV * (1 + I/Y)N
$2,000,000 = $400,000 * (1.10)N
5 = (1.10)N
N = 16.89 years
Therefore, it will take 16.89 years for the account to increase to $2 million.
The cash coverage ratio adds ______ to operating earnings (EBIT) for a better measure of how much cash is available to meet interest obligations.
Answer:
Depreciation
Explanation:
Various liquidity ratio methods are used by banks, firms and organisations to measure the cash available to pay the liabilities. The quick ratio, current ratio and cash coverage ratio are some of the most used methods. Cash coverage ratio uses depreciation to measure the cash available to meet interest obligation. The formula to measure the cash coverage ratio is
CR= EBIT + Depreciation +Amortization
When Larry purchased a Jet Ski personal watercraft for $4,999, he was also given free financing and three hours of free lessons on how to safely enjoy jet skis. Neither the financing nor the lessons were included in the price of the Jet Ski; both are examples of:
Answer:
Value added
Explanation:
Value-added - it is the total difference that comes out between the product value in the market and the cost of producing that product. cost of a product is based on the survey which gives the idea that how much cost may be assigned to the product.
The value of this difference help to determine the profit on products.
Higher the value of add, higher will be the charges of product and higher will be the revenue collected.
Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of________________.
a. customer relationship management. Correctb. a transactional marketing orientation.c. C2C marketing.d. supply chain management.e. typical production-oriented era marketing practices.
Answer:
A. Customer Relationship Management
Explanation:
Customer Relationship Management represents an organisation's way of managing its interaction with customers both potential and current consumers of their products.
Specifically, CRM makes use of information obtained from the dealings of customers' with the business such as products purchased as well as quantity of purchase among others to determine how to improve the communication and relationship with them.
The catalog is part of the CRM measures. The catalog's customization is therefore based on the perceived habit or needs of the customer based on the history of the customer's purchases in the past.
Most individuals and businesses are likely to find their judicial interactions in _____. A. the U.S. Supreme Court B. federal circuit courts C. state courts D. federal district courts E. international courts
Answer:
Option C is correct
Explanation:
The state court is a common law court that apply respective state laws and precedence to decide cases. State courts usually handle majority of crimes and civil case which include individual cases and small business issues.
Answer: State courts
Explanation: The state courts is established by the constitution and laws of each state. State courts are regarded as the final arbiters of laws and constitutions of a state.
However, the court deals with criminal cases (robbery, cyber crime, etc.), probate (involving wills and estates), tort cases (involving personal injuries), contract cases, family cases (involving marriages, adoptions, and divorce), among others.