Answer:
$300,000
Explanation:
Austere Corporation
Austere Corporation issued $300,000÷ $1,000 bond = $300
$300 x 25 detachable stock warrants = $7,500
7,500 x market value of each warrant was $2= $15,000
$300,000 x bond of 1.05 = $315,000
Hence;
$315,000 – $15,000
= $300,000
Therefore Austere should record $300,000 of the proceeds from the bond issue as an increase in liabilities
Peng Company is considering an investment expected to generate an average net income after taxes of $1,950 for three years. The investment costs $45,000 and has an estimated $6,000 salvage value. Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA
Answer:
NPV =$(36,602.61)
Explanation:
The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite.
NPV = PV of cash inflows - PV of cash outflows
PV of cash inflow= A × (1- (1+r)^(-n)/r
A- net cash inflow 1,950, r- discount rate- 15%, n- number of years- 3
PV of cash inflows = 1,950 × ((1- (1.15)^(-3))/0.15
= 4,452.28
PV of scrap value = F ×(1+r)^(-n)
F- Scrap value - 6000, r- discount rate = 15% n- number of years- 3
PV of scrap value = 6,000 ×(1.15)^(-3)=3,945.09
NPV = 4,452.28 + 3,945.097 - 45,000
= (36,602.61)
NPV =$(36,602.61)
A city government reported a $9,000 increase in net position in the motor pool internal service fund, a $12,000 increase in net position in the water enterprise fund, and a $7,000 increase in the employee pension fund. The motor pool internal service fund provides service primarily to the police department.
What amount should the city report as the change in net position for business-type activities in its statement of activities?
A. $ 9,000
B. $12,000
C. $21,000
D. $28,000
Zitrik Corporation manufactured 130,000 buckets during February. The variable overhead cost-allocation base is $5.30 per machine-hour. The following variable overhead data pertain to February: Actual Budgeted Production 130,000 units 130,000 units Machine-hours 9,500 hours 9,000 hours Variable overhead cost per machine-hour $5.35 $5.30 What is the variable overhead efficiency variance?
Answer:
Efficiency variance $2,650 unfavorable
Explanation:
Variable overhead efficiency variance: A variance is the difference between a standard cost and the actual cost. Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.
Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance
Hours
130,000 units should have taken 9,000
but did take (actual hours) 9,500
Efficiency variance 500 unfavorable
Standard variable overhead rate $5.30
Efficiency variance $2,650 unfavorable
Concord Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition, Concord does not believe that it can charge more than $100 for LittleLaser. At this price, Concord believes it can sell 106,000 of these laser guns. Concord will require an investment of $8,056,000 to manufacture, and the company wants an ROI of 25%. Determine the target cost for one LittleLaser. Target cost $
Answer:
$8,586,000
Explanation:
market price for Littlelaser $100 per unit
units sold 106,000
total revenue generated by Littlelaser = $100 x 106,000 = $10,600,000
required investment = $8,056,000
since the investors require a return on investment of 25%, then the profits generated by Littlelaser should be:
ROI = net income / total investment
25% x $8,056,00 = net income
net income = $2,014,000
target cost = total revenue - net income = $10,600,000 - $2,014,000 = $8,586,000
total revenue $10,600,000
- total cost $8,596,000
net income $2,014,000
Which of the following is true concerning employer funding of nonqualified deferred compensation plans? Multiple Choice Employers are required to invest salary deferred by employees in investments specified by the employees. Employers are required to annually fund their deferred compensation obligations to employees. Employers annually deduct the amount earned by employees under the plan. Employers may discriminate in terms of who they allow to participate in the plan.
Answer:
Employers may discriminate in terms of who they allow to participate in the plan.
Explanation:
A deferred unqualified payment agreement is a contractual arrangement between a very employer as well as a worker in which the employer intends to compensate the worker at a future date.
The provider expressly gives an unprotected commitment to provide future compensation to a worker, according to the clear conditions of the agreement.
However, such funding is not mandatory by the government and also their is a high direction for the employer in choosing the conditions, thus, their is high Chance of discrimination by employer also.
Likert company manufactures extremely accurate scales. They use a standard costing system. Last year the company projected that 296,000 scales would be produced. When Likert company closed out manufacturing overhead, they recorded a $129,000 debit to the FOH Budget Variance and a $150,000 credit to the FOH Volume Variance. Likert company budgeted $2,375,000 of fixed overhead. What was the actual amount of fixed overhead
Answer:
$ 2,504,000
Explanation:
Budgeted overhead= $2,375,000
FOH budget variance= $129,000
Actual amount of fixed overhead= $2,375,000+$129,000
=$ 2,504,000
Therefore the actual amount of fixed overhead will be $ 2,504,000
Unlimited Airlines jet costs $ 40 comma 000 comma 000 and is expected to fly 400 comma 000 comma 000 miles during its 10-year life. Residual value is expected to be zero because the plane was used when acquired. If the plane travels 25 comma 000 comma 000 miles the first year, how much depreciation should Unlimited Airlines record under the units-of-production method?
Answer:
$2,500,000
Explanation:
Depreciation is the charge of capital expense to the P&L due to the annual wear and tear of the asset.
Units of production method depreciate an expense on the basis of the production made within a period as a percentage of total capacity of the asset.
In this flying miles are considered to the the basis for the depreciation.
As per given data
Value of Jet = $40,000,000
Total Capacity = 400,000,000 miles
Depreciable value = Cost of the Jet - Residual Value = $40,000,000 - $0 = $40,000,000
Depreciation per mile = $40,000,000 / 400,000,000 = $0.1 per mile
Flying in the year = 25,000,000 miles
Depreciation for the year = 25,000,000 x $0.1 = $2,500,000
A team of builders has surveyed buyers of their new homes for years. Consistently, only 48% of the buyers have indicated they were "quite satisfied" or "very satisfied" with the construction quality of their homes. The builders have adopted a revised quality inspection system to try to improve customer satisfaction. They have surveyed 400 buyers since then; these buyers seem representative, with no systematic changes from past purchasers. Of the 400 buyers, 210 indicated they were quite or very satisfied. Did they reach their goal? What is the appropriate test to perform?
Answer:
Explanation:
So, the hypothesis is:
H0 : p = .48 versus Ha : p≠ .48
check the picture attached for more explanation
The builders have succeeded in increasing customer satisfaction from 48% to 52.5%, according to survey results. To determine whether this change is statistically significant, the appropriate test to perform is the Proportion Z-Test.
Explanation:
This question pertains to statistics, a branch of mathematics. The builders' goal was to increase the percentage of buyers who were either 'quite satisfied' or 'very satisfied' with the construction quality of their homes from 48%. After implementing a revised quality inspection system, they surveyed 400 buyers and found that 210 were satisfied, which equates to 210/400 = 0.525 or 52.5%. Thus, they did reach their target of being above 48%. However, we still need to statistically verify the improvement.
The appropriate statistical test here is a Proportion Z-Test. The Proportion Z-Test is a tool used to compare the observed proportion of a sample to a theoretical one. It can help us decide whether the change in customer satisfaction is statistically significant, and not just a result of random sampling variability.
To carry out the Proportion Z-Test, one would need the pre-implementation proportion (48% in this case), the post-implementation observed proportion (52.5%), the sample size (400), and any significance level decided upon. These values will be used in a formula to calculate a Z-score, which will show if the change is significant.
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Dicks Sporting Goods included the following information in its year-end 2015 10-K Sales $7,270,965 PPE, gross 2,665,314 Land Construction in progress 124,400 Accumulated depreciation 1,317,429 PPE, net, at year-end 2014 1,203,382 Depreciation expense 193,594 a. Compute PPE turnover. Round answer to one decimal place. Answer 0 b. Compute the average useful life. Round answer to one decimal place. Answer 0 years c. Compute the percentage used up of the PPE. Round answer to one decimal place (ex: 0.2345
Final answer:
To calculate PPE turnover, the average useful life, and the percentage used up of PPE for Sporting Goods, you need to utilize the provided financial data from the company's 10-K. This calculation can be used to assess the efficiency and usage of the company's PPE assets.
Explanation:
Property, Plant and Equipment (PPE) Turnover, Useful Life, and Percentage Used Up Calculation
The calculation of PPE turnover, average useful life, and percentage used up of PPE involves using data from a company's financial statements. For the PPE turnover, you divide the sales by the average PPE. The average useful life can be estimated by dividing the gross PPE by the yearly depreciation expense. The percentage used up of PPE is calculated by dividing the accumulated depreciation by the gross PPE.
To compute these for Sporting Goods, using the 10-K for 2015:
a. PPE turnover: 7,270,965 / ((2,665,314 + 1,203,382) / 2) gives a PPE turnover ratio.
b. Average useful life: 2,665,314 / 193,594 gives the average number of years.
c. Percentage used up of PPE: 1,317,429 / 2,665,314 gives a percentage.
Where:
Sales: $7,270,965
Gross PPE: $2,665,314
Accumulated depreciation: $1,317,429
PPE, net at year-end 2014: $1,203,382
Depreciation expense: $193,594
Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a high speed modem priced at $370 per unit, the average weekly demand at each distribution center is 75 units. Average shipment size to each distribution center is 350 units, and the average lead time for delivery is 2 weeks. Each distribution center carries 2 weeks' supply as safety stock but holds no anticipation inventory.(a) On average, how many dollars of pipeline inventory will be in transit to each distribution center?(b) How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers?
Answer:
(a) $55,500
(b) 2,375
Explanation:
As per the data given in the question,
a)
Cycle inventory = Average demand × lead time
= 75 × 2
= 150 units
Value of cycle inventory = 150 units × price
= 150 × $370
= $55,500
b)
Cycle inventory to each distribution center = 350 ÷ 2
= 175
Safety stock for each distribution center = Avg weekly demand × 2 weeks
= 75×2
= 150 units
Total inventory = Cycle inventory + pipeline inventory + safety stock
= 175+150+150
= 475 units
Total inventory for all 5 distribution center = 475×5
= 2,375
Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for $178,000, Colton bought a $160,000 homeowner's insurance policy. He still owns that policy, even though the replacement cost of the home is now $300,000.
A) If Colton suffered a $23,000 fire loss to the home, what percentage of the loss would be covered by his policy? Round your answer to one decimal place.%
B) What dollar amount of the loss would be covered by his policy? Enter the amount of the loss as a positive number. Round your answer to the nearest dollar.$
C) How much insurance on the home should Colton carry now to be fully reimbursed for a fire loss? Round your answer to the nearest dollar. $
The answers explain how to calculate the percentage of loss covered by the insurance policy, the dollar amount of the loss covered, and the insurance amount needed for full reimbursement.
Explanation:A) To calculate the percentage of the loss covered by Colton's policy:
Subtract the policy value from the loss: $23,000 - $160,000 = $-137,000Since the policy covers the dwelling's current value, the coverage is limited to $160,000The percentage of the loss covered by the policy is: ($160,000 / $23,000) x 100 = 695.7% = 695.7%
B) The dollar amount of the loss covered by the policy is $160,000 as that is the policy value.
C) For full reimbursement for a fire loss, Colton should carry insurance equal to the replacement cost of the home, which is $300,000.
The master budget is a.typically for a 1-year period corresponding to the fiscal year of the company. b.the selective financial plan for the organization as a whole. c.used for misinformation and coordination. d.broken down into daily and weekly budgets. e.All of these choices are correct.
Answer:
a) 1-year period corresponding to the fiscal year of the company.
Explanation:
The master budget is perhaps the most important planning tool that top management has at its disposal when deciding the actions of the organization.
The master budget consists of the sum of all the budgets from the different functional areas of the company (for example, the budget of the production department, plus the budget of the finance department, and so on), and also includes financial statements, and a statement of expected cash flows into the company.
A master budget is a comprehensive financial plan used by an organization typically for a period of one fiscal year, which is subsequently broken down into smaller time frames. It aids in the coordination of all financial aspects of the organization.
Explanation:A master budget refers to a comprehensive projection of how management expects to conduct all aspects of business over a given period, typically one fiscal year. It is indeed the selective financial plan for the organization as a whole. The master budget is not used for misinformation but for coordination of all the financial aspects of the organization. While the master budget covers an entire fiscal year, this period will be further broken down into quarterly, monthly, or even daily and weekly budgets to ensure operational efficiency.
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Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of machining, $3600000; and assembling $1500000. Information on the two products is: Regular Supreme Direct labor hours 10000 15000 Machine hours 10000 30000 Number of parts 90000 160000
Overhead applied to Regular using activity-based costing is
a. $3060000.
b. $3660000.
c. $1440000.
d. $2040000.
The overhead applied to the Regular product using activity-based costing is $1,440,000, calculated by distributing machining and assembling overheads based on machine hours and the number of parts respectively.
To calculate the overhead applied to the Regular product using activity-based costing (ABC), we need to allocate the total overhead costs based on the activity drivers for both machining and assembling activities.
First, let's distribute the machining overhead based on machine hours. The total machine hours are:
Regular: 10,000 hours
Supreme: 30,000 hours
Total: 40,000 hours
Machining overhead cost per machine hour:
$ [tex]\frac{3,600,000}{40,000}[/tex] hours = $90 per machine hour
Overhead for Regular from machining:
10,000 hours * $90 = $900,000
Next, let's distribute the assembling overhead based on the number of parts. The total number of parts is:
Regular: 90,000 parts
Supreme: 160,000 parts
Total: 250,000 parts
Assembling overhead cost per part:
$ [tex]\frac{1,500,000}{250,000}[/tex] parts = $6 per part
Overhead for Regular from assembling:
90,000 parts * $6 = $540,000
Total overhead applied to Regular:
$900,000 (machining) + $540,000 (assembling) = $1,440,000
On May 7, Carpet Barn Company offered to pay $75,190 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $85,970. On June 5, the land was assessed at a value of $100,000 for property tax purposes. On December 10, Carpet Barn Company was offered $127,000 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records
Answer:
$85,970
Explanation:
The cost of a fixed asset includes all cost incurred in making the asset available for use. These includes the cost of the item net all discounts, sales tax, freight cost etc. Fixed assets are carried at their historical cost.
Hence for Carpet Barn Company's records, the cost of the land will be at historical cost of $85,970.
The key consideration is that the asset is not carried at an amount higher than it's recoverable value.
Marin's Cleaning Supplies Company has an idea for a cleaner that is universal and can clean any surface type. This could simplify the cleaning process for homeowners, as well as janitors and other professional cleaners. When doing business analysis, the most important question this company should consider when deciding whether to develop this product is:
Answer:
Test marketing.
Explanation:
Test marketing is an experimental tool used by manufacturers to test the viability of their products under typical market conditions, comprised of stores and real life buying situations, in order to determine its sales performance and ascertain its acceptability by consumers.
Hence, Marin's Cleaning Supplies Company when doing business analysis should consider test marketing strategy when deciding whether to develop the cleaner.
The Cook County Authority is considering the purchase of a small plane to transport government officials. It is hoped that the plane will save money on travel costs for government employees. Assume the county requires a 8 percent rate of return. Using the present value tables in Exhibits 26-3 and 26-4, If the plane’s cost is $306,840 and it can likely be sold in six years for $100,000, what minimum annual savings in transportation costs is needed in order to make the plane a good investment? (Round Present value factor to 3 decimal places and your final answer to nearest whole dollar)
Answer:
$52,745
Explanation:
The computation of annual saving in transportation cost is shown below:-
Cost of plane = Annual saving in transportation cost x PVAF (i%, n) + Residual value × PVF (i%, n)
306,840 = Annual saving in transportation cost × PVAF (8%, 6) + 100,000 (8%,6)
306,840 = Annual saving in transportation cost × 4.623 + 100,000 × 0.630
306,840 = Annual saving in transportation cost × 4.623 + 63,000
Annual saving in transportation cost = $306,840 - $63,000
= 243,840 ÷ 4.623
= $52,745
Therefore for computing the annual saving in transportation cost we simply applied the above formula.
. Unique Games, a not-for-profit entity organized to provide athletic competition opportunities for high school students, utilizes a number of volunteers in carrying out its mission. At the 2018 Games 50 volunteers provided a total of 1000 hours of service performing tasks such as picking up litter and delivering water to the athletes. A local CPA firm donates its services to prepare the annual tax return and other federal and state required paperwork which must be filed to maintain its status as a tax-exempt organization. During 2018 the CPA firm provided 60 hours of service. If purchased, the CPA services would have cost $60 per hour and the game workers would have cost $6 per hour. How much contributed service revenue should Simplex Games recognize in 2018? A. $6,000. B. $3,600. C. $3,000. D. $0
Answer:
The answer is $0.
Explanation:
Contributed service revenue or contributed revenue can be defined as the service or goods received with no payment or any other kind of exchange.
So in this question, the work from the volunteers and the film from CPA can be all accounted for contributed service revenue.
If we calculate them;
The movie costs $60 per hour so at 60 hours, it would cost $3600.The 50 volunteers worked a total of 1000 hours, at $6 per hour, the total cost is $6000.But since Unique Games are a non-profit entity, the amount they should recognize as contributed service revenue is $0.
I hope this answer helps.
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 44 Selling and administrative $ 16 Fixed costs per year: Production $ 129,010 Selling and administrative $ 109,660 Last year, 6,790 units were produced and 6,690 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
Answer: $1,900 less than under absorption costing.
Explanation:
The ending inventory of finished goods under variable costing is the difference in carrying value of ending finished goods inventory.
That is calculated as,
Difference in Carrying Value of Ending Finished Goods Inventory = Unit fixed Manufacturing Overhead * Change in Inventory in Units
The Unit Fixed Manufacturing Overhead as implied is the fixed Manufacturing Overhead per unit
Calculated therefore as,
Unit fixed manufacturing overhead = 129,010 / 6,790
= $19
Now that we have that, we can refer back to thw first formula,
Difference in carrying value of ending finished goods inventory = Unit fixed manufacturing overhead * Change in inventory in units
= 19 × (6,790 - 6,690)
= $1,900
The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be $1,900 less than under absorption costing.
A property could be sold today for $2 million. It has a loan balance of $1 million and, if sold, the investor would incur a capital gains tax of $250,000.The investor has determined that if it were sold today, she would earn an IRR of 15% on equity for the past 5 years.If not sold, the property is expected to produce an after-tax cash flow of $50,000 over the next year.At the end of the year, the property value is expected to increase to $2.1 million, the loan balance will decrease to $900,000, and the amount of capital gains tax due is expected to increase to $255,000.a. What is the marginal rate of return for keeping the property one additional year?b. What is the decision to make by the investor?
Final answer:
The marginal rate of return is calculated by considering the net difference in proceeds from selling the property today versus after one year, including the net cash flow from holding on to it. The decision whether to sell or keep the property would depend on how the marginal rate of return compares to the investor's required return.
Explanation:
To calculate the marginal rate of return for keeping the property an additional year, you need to compare the net proceeds from selling today to what the investor would receive in total if the property is sold after one year, including the additional net cash flow from retaining it. The net proceeds from selling today are $2 million (sale price) - $1 million (loan balance) - $250,000 (capital gains tax) = $750,000. If the property is sold after one more year, the proceeds would be $2.1 million (expected future sale price) - $900,000 (expected future loan balance) - $255,000 (expected future capital gains tax) + $50,000 (net cash flow from holding the property for the year) = $995,000. The marginal rate of return is then calculated on the equity difference, which is $995,000 in one year versus $750,000 today.
As for the decision the investor should make, it would depend on comparing this marginal rate of return to the investor's required return or opportunity cost of capital. If the marginal rate exceeds the investor's threshold, she should keep the property; otherwise, she should sell it.
An author just signed a lucrative contract with a publisher that offers to pay her the amount of $600 at the end of year 9 when the book is scheduled to be released. The author, being profligate, desires to receive a different package: an immediate payment of $100 that is followed by an annuity (an equal amount) to be paid at the end of each year for 9 consecutive years. What annuity will make his package equivalent to the publisher's advance. Use an interest rate is 6%.
Answer:
annuity = $37.51
Explanation:
future value of the annuity = $600 - future value of the initial $100 paid
$100 x 1.06⁹ = $168.95
future value of the annuity = $600 - $168.95 = $431.05
FV of an annuity = payment x {[(1 + r)ⁿ - 1] / r}
payment = FV / {[(1 + r)ⁿ - 1] / r}
FV = $431.05r = 6%n = 9payment = $431.05 / {[1.06⁹ - 1] / 0.06} = $431.05 / {0.68948 / 0.06} = $431.05 / 11.4913 = $37.51
The annuity that will make the author's package equivalent to the publisher's advance is approximately $37.52 per year for 9 years.
To determine the annuity that will make the author's package equivalent to the publisher's advance, we need to calculate the present value (PV) of both packages and ensure they are equal.
1. Calculate the present value of the publisher's advance:
The publisher offers $600 at the end of year 9. To find the present value of this amount, we use the formula:
[tex]\[ PV = \frac{FV}{(1 + r)^n} \][/tex]
where:
- FV = future value ($600)
- r= interest rate (6% or 0.06)
- n = number of years (9)
[tex]\[ PV = \frac{600}{(1 + 0.06)^9} \][/tex]
Let's calculate this step-by-step:
[tex]\[ PV = \frac{600}{(1.06)^9} \][/tex]
Using a calculator or a power function:
[tex]\[ (1.06)^9 \approx 1.689478 \][/tex]
[tex]\[ PV = \frac{600}{1.689478} \approx 355.20 \][/tex]
2. Calculate the present value of the desired package:
The author's desired package consists of:
- An immediate payment of $100.
- An annuity paid at the end of each year for 9 consecutive years.
Let the annuity payment be A.
The present value of the immediate payment is simply $100.
The present value of the annuity can be calculated using the present value of an ordinary annuity formula:
[tex]\[ PV_{\text{annuity}} = A \times \left( \frac{1 - (1 + r)^{-n}}{r} \right) \][/tex]
where:
- A = annuity payment
- r = interest rate (6% or 0.06)
- n = number of years (9)
The total present value of the desired package is the sum of the immediate payment and the present value of the annuity:
[tex]\[ PV_{\text{total}} = 100 + A \times \left( \frac{1 - (1 + 0.06)^{-9}}{0.06} \right) \][/tex]
3. Set the present values equal to each other:
[tex]\[ 355.20 = 100 + A \times \left( \frac{1 - (1.06)^{-9}}{0.06} \right) \][/tex]
4. Solve for A:
First, calculate the annuity factor:
[tex]\[ \left( \frac{1 - (1.06)^{-9}}{0.06} \right) \][/tex]
Calculate [tex]\((1.06)^{-9}\)[/tex]:
[tex]\[ (1.06)^{-9} \approx 0.591898 \][/tex]
Now:
[tex]\[ \left( \frac{1 - 0.591898}{0.06} \right) = \left( \frac{0.408102}{0.06} \right) \approx 6.8017 \][/tex]
Substitute back into the equation:
[tex]\[ 355.20 = 100 + A \times 6.8017 \][/tex]
[tex]\[ 255.20 = A \times 6.8017 \][/tex]
[tex]\[ A = \frac{255.20}{6.8017} \approx 37.52 \][/tex]
In a classic prisoners' dilemma example, Larry and Duncan, possible criminals, will get one year in prison if neither talks, two years in jail if both talk, and if one talks, that one goes free while the other gets five years. (Note: The payoffs are negative because they represent years in jail, which is a negative payoff.) The payoff matrix for Larry and David is illustrated to the right. Given this payoff matrix and the payoffs, each criminal A. will only confess if the other does. B. has an incentive to confess. C. can not determine their best response. D. does not know the payoffs. E. seeks to maximize joint payoffs.
Answer:
The correct answer is option B - Given this payoff matrix and the payoffs, each criminal has an incentive to confess.
Explanation:
The prisoner's dilemma demonstrates the tradeoffs between cooperative and non-cooperative behavior.
The two individuals are being held prisoner for the same crime. However, they are in separate cells with no possibilities of communication.
With the payoff's given in the table, the best response of player 1 is to confess whether or not player 2 chooses to cooperate. Confess is also a dominant strategy for player 2 whether or not player 1 chooses to cooperate.
Therefore, the correct answer is option B - Given this payoff matrix and the payoffs, each criminal has an incentive to confess.
Sunland Company produces flash drives for computers, which it sells for $26 each. The variable cost to make each flash drive is $13. During April, 300 drives were sold. Fixed costs were $1400 for the month. How much is the monthly break-even level of sales in dollars for Sunland
Answer:
Break-even point (dollars)= $2,800
Explanation:
Giving the following information:
Selling price= $26 each
Unitary variable cost= $13
The fixed costs were $1400 for the month.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 1,400/ [(26 - 13)/26]
Break-even point (dollars)= $2,800
Assume that you are a human resource manager of a 5-star international resort chain operating in a South Pacific country. Your resort CEO recently assigns you to hire one hundred housekeepers and waiters for your chain of hotels. Besides personality tests, discuss three other selection measures you could use to select your targeted employees. Justify your choices with relevant examples.
Answer:
Three other selection measures to be used to select my targeted employees are:
1. Customer relationship skills: This is the most important of all the selection criteria. As an employee in a hospitality and tourism sector such as a resort center, having good customer service skill is very important because, customer service is basically what is marketed in this sector. Customers pay a lot of money for these services in international hotels and if they are not treated to their satisfaction, could easily be frustrated, and that can lead to a reduction in the hotel's rating. An example is in the case of a newly arriving customer from another country, this person is probably stressed and jet lagged and needs to get some rest as soon as possible. In this case, the receptionist is supposed to attend to the customer very fast and should understand that the customer might get angry or easily irritated. No matter what, the receptionist is to be as calm and polite as possible, and should be empathetic with the customer.
2. Multi lingual abilities: In an international resort, the ability to communicate with customers is the soul of the business. Customers in this line of business are usually from diverse cultures and languages, which should never be a barrier. Employing employees skilled in some major languages will be very useful as they can help bridge the communication gap between the resort and the customers. An employee skilled in dutch can easily cater to European customers from Germany, the Netherlands and even Austria.
3. A good knowledge of the region: Employees with a very sound knowledge of the resort region will be more effective in rendering better service to the customers. As a resort center, most customers are here for holidays, vacations, honeymoons, etc. These customers ask a lot of questions, especially about the region, and they expect any employee around them to give them a very good and factual answers to their questions. It wont be appealing to the customers if an employee does not know much about the region and cant attend to their questions.
The desired profit margin is $25 per labor hour. The material loading charge is 25% of invoice cost. It is estimated that 5000 labor hours will be worked in 2019. In January 2019, Mike repairs a cellphone that uses parts of $200. Its material loading charge on this repair would be Select one: a. $20 b. $72 c. $50 d. $200
Answer:
c. $50
Explanation:
The computation of the material loading charge is shown below:
= Repair cost of a cellphone parts × material loading charge percentage
= $200 × 25%
= $50
By multiplying the repair cost of a cellphone parts with the material loading charge percentage so that the material loading charge on this repair could come
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials $ 14.60 $ 10.50 $ 11.30 $ 10.90 Direct labor 19.70 27.70 33.90 40.70 Variable manufacturing overhead 4.60 3.00 2.90 3.50 Fixed manufacturing overhead 26.80 35.10 26.90 37.50 Unit product cost $ 65.70 $ 76.30 $ 75.00 $ 92.60 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 4.10 5.60 4.60 3.70 Selling price per unit $ 76.40 $ 93.80 $ 87.70 $ 104.50 Variable selling cost per unit $ 2.50 $ 1.50 $ 3.60 $ 1.90 Monthly demand in units 4,300 4,300 3,300 2,300 The grinding machines are potentially the constraint in the production facility. A total of 53,900 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products
Answer:
Bruce Corporation
Minutes of Grinding Machine Time required to satisfy demand for all four products:
Total Grinding Machine Time
Product A = 4.10 minutes * 4,300 demand units = 17,630 minutes
Product B = 5.60 minutes * 4,300 demand units = 24,080 minutes
Product C = 4.60 minutes * 3,300 demand units = 15,180 minutes
Product D = 3.70 minutes * 2,300 demand units = 8,500 minutes
Total = 65,400 minutes
Explanation:
The total minutes of Grinding Machine Time required to satisfy monthly demand for each product is calculated by multiplying the units demanded by the grinding minutes per unit.
This gives total minutes required for each product. Then, when they are summed, the total Grinding Machine Time is obtained.
This total can be compared to the total available minutes per month of 53,900 to obtain the additional minutes required above the minutes available in order to satisfy the products' demands.
The total grinding machine time required to satisfy demand for all four products is 65,500 minutes.
Explanation:The grinding machines are potentially the constraint in the production facility. To calculate the total grinding machine time required to satisfy demand for all four products, we need to find the grinding minutes per unit for each product and multiply it by the monthly demand in units for that product. Finally, we sum up the total grinding machine time for all four products.
Product A: 4.10 min/unit x 4,300 units = 17,730 minutes
Product B: 5.60 min/unit x 4,300 units = 24,080 minutes
Product C: 4.60 min/unit x 3,300 units = 15,180 minutes
Product D: 3.70 min/unit x 2,300 units = 8,510 minutes
Total grinding machine time required to satisfy demand for all four products: 17,730 minutes + 24,080 minutes + 15,180 minutes + 8,510 minutes = 65,500 minutes
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Bloom Corporation issued 60,000 shares of common stock. Bloom purchased 9,000 shares and later reissued 900 shares. How many shares are issued and outstanding? A. 60,000 issued and 51,900 outstanding B. 51,900 issued and 51,900 outstanding C. 60,000 issued and 51,000 outstanding D. 51,000 issued and 51,000 outstanding
Answer:
A. 60,000 issued and 51,900 outstanding
Explanation:
Bloom Corporation
Issued 60,000 shares of common stock -purchased 9,000 shares
=51,000 shares
Hence:
51,000 shares + Reissued 900 shares
=51,900 Outstanding
Therefore Bloom Corporation will issued
60,000 issued and 51,900 outstanding
Final answer:
The total number of shares issued by Bloom Corporation remains at 60,000. After purchasing 9,000 shares and reissuing 900, the total number of outstanding shares is 51,900. The correct answer is option A: 60,000 issued and 51,900 outstanding.
Explanation:
Bloom Corporation initially issued 60,000 shares of common stock. When a company buys back its own shares, these shares are referred to as treasury stock and are not considered outstanding, but they are still considered issued. Bloom Corporation then purchased 9,000 shares, reducing the number of outstanding shares. However, later it reissued 900 of these shares. To calculate the current outstanding shares, you subtract the treasury stock from the initially issued shares and then add back any reissued shares.
Therefore, the calculation is as follows: 60,000 initially issued - 9,000 treasury shares + 900 reissued shares, resulting in 51,900 shares outstanding. The answer that correctly states the number of issued and outstanding shares for Bloom Corporation is A. 60,000 issued and 51,900 outstanding.
Let us assume that ZEN PATH chose to offer meditation seminars as the main source of additional income. They will still try to get sponsors, but the seminars will be the main source of new funds. What is the image that the monastery should project to the diverse stakeholders given the new changes? Describe it in a short statement (20-word limit).
Answer:
Explanation:
Base on the scenario been described in the question
At ZEN PATH we are dedicated to preserving and educating about the ideals of Buddhism. Doors are open to all!
What does it mean for an item to be sterile?
To scrape the crust off
To wipe down with a rag
To be free from any harmful organisms
To polish to a sparkling shine
Answer:
wipe me down
Explanation:
Note that the CPI-based rate of inflation between 2015 and 2016 in the baseline scenario provided is 9.6%. Suppose, instead of rising from $2 to $2.50 between 2015 and 2016, the price of hamburgers rose to $3.50. What would be the rate of inflation? Instructions: Round your answer to one decimal place.
Answer:
Inflation rate = 75%
Explanation:
Inflation is the increase in the general price level. Inflation erodes the purchasing power of money. Inflation is measured by the changes in the consumer price index.
Here, we can compute the rate of inflation as the rate of change in the prices of the same item over the course of a period.
Inflation rate= (current price - initial price)/initial price × 100
= ( 3.50-2.00)/2 × 100
= 75%
Inflation rate= 75%
Wheeling Inc. uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals $6,900. At the end of the year, the balance of Accounts Receivable is $119,000 and the unadjusted debit balance of the Allowance for Doubtful Accounts is $880. Credit sales during the year totaled $188,000. What is the estimated Bad Debt Expense for the current year?
Final answer:
The estimated bad debt expense for Wheeling Inc. is calculated by adjusting the current Allowance for Doubtful Accounts balance to the estimated uncollectible receivables amount from the aging analysis, resulting in a bad debt expense of $6,020 for the year.
Explanation:
The student has presented a question involving the calculation of bad debt expense using the aging of accounts receivable method. To calculate the estimated bad debt expense for the current year, we consider the following:
The estimate of uncollectible receivables from the aging analysis is $6,900.The current unadjusted debit balance of the Allowance for Doubtful Accounts is $880.The ending balance of Accounts Receivable is $119,000.The calculation proceeds as follows:
First, determine the desired ending balance for the Allowance for Doubtful Accounts, which is the estimate from the aging analysis: $6,900.Second, adjust the current unadjusted balance of Allowance for Doubtful Accounts to the desired balance by recognizing bad debt expense. Bad debt expense = Desired balance - Current unadjusted balance = $6,900 - $880 = $6,020.Therefore, the estimated bad debt expense for the current year is $6,020.