Answer:
c. a significant amount of market power
Explanation:
Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.
If the cross price elascitiy is postive, the goods are subsituites.
If the cross price elasticity is negative, the goods are complementary goods.
If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes
If the cross price elasticitiy is high, the market has low market power.
I hope my answer helps you.
When Wilson, a manufacturer of tennis racquets, sent a team of researchers, designers, and tennis pros out to visitwith 40 women tennis players of various abilities in locations from California to Florida to find out what womenplayers want in a racquet, what kind of research were they conducting?
a. Heuristic
b. Primary
c. Cohesive
d. Randome.
e. Secondary
Answer:
Primary research
Explanation:
It is a type of research, that requires acquiring new and original data from primary sources. This is known as Primary Data. As the term ‘primary’ implies it means first and when it is linked with research, it means an in-depth investigation of facts by the researcher himself and they have a one to one communication with the people, who know about the subject.
Answer:
The correct option is B: Primary research.
Explanation:
Primary research involves gathering primary data. Primary data are those information gathered for the first time for the purpose of solving a specific problem. Thus Wison and the researchers are conducting a primary research, since it involved going to get first-hand information from the women players themselves.
The table below shows some hypothetical data on the costs associated with the use of a liter of gasoline in a European country.
1. In Euros, what is the private cost for an individual of a liter of gasoline in Europe?
Cost (Euros)
Cost of imported oil 0.5
Cost of refining oil to gasoline 1
Cost of distributing and selling gasoline 0.75
Government taxes 2.5
Cost of pollution from one liter of gasoline 2
Answer:
The private cost for an individual of a liter of gasoline in Europe is 4.75
Explanation:
Private cost is a supplier's or producer's cost of providing goods and services without any external cost.
Private cost = 0.50 + 1 + 0.75 + 2.50
= 4.75
Therefore, The private cost for an individual of a liter of gasoline in Europe is 4.75
You have a $109 comma 000 portfolio comprising 10 stocks. You trade each stock five times this year and each time you trade, you pay about $30 in commissions and spread. You have no special knowledge, so you earn only the average market return of 11% on your investments. How much lower will your total return be because of your trades?
Answer:
Return will be 1.3 % lower
Explanation:
We have given that you have a $109000 portfolio which contain 10 stocks
So number of stocks = 10
Number of times traded each stock = 5
Commission and spread pay = $30
So total expenditure = number of stocks × number of times × commission and spread per trade = 10×5×30 = $1500
So in percentage [tex]=\frac{1500}{109000}=0.013=1.3[/tex] %
So return will be 1.3 % lower
ABC Manufacturing produces a product that includes four tasks: cutting, drilling, sanding and painting. The production supervisor wants to know the cost of each task for this months production run of 1,000 units. She has identified several costs that must be allocated to these tasks including: $50,000 of depreciation on manufacturing equipment, $40,000 of utilities, $30,000 of rent and $2,000 of supplies. She has chosen to distribute all these costs to the four tasks based on machine hours. Cutting these 1,000 units required 900 hours, drilling them required 300 hours, sanding 800 hours and painting 400 hours. What is the weight of base?
Answer:
2400
Explanation:
Data provided in the question:
Cost allocated to Depreciation on manufacturing equipment = $50,000
Cost allocated to Utilities = $40,000
Cost allocated to Rent = $30,000
Cost allocated to supplies = $2,000
Required machine hours for cutting = 900
Required machine hours for drilling = 300
Required machine hours for sanding = 800
Required machine hours for painting = 400
Now,
Since the distribution is based on the machine hours
Therefore,
Weight of base = Total machine hours required
= 900 + 300 + 800 + 400
= 2400
Gonda, Herron, and Morse is considering possible liquidation because partner Morse is personally insolvent. The partners have the following capital balances: $60,000, $70,000, and $40,000, respectively, and share profits and losses 30%, 45%, and 25%, respectively. The partnership has $200,000 in noncash assets that can be sold for $150,000. The partnership has $10,000 cash on hand, and $40,000 in liabilities. What is the minimum that partner Morse's creditors would receive if they have filed a claim for $50,000? Please show the work.
A. $0.
B. $27,500.
C. $45,000.
D. $47,500.
E. $50,000.
Answer:
B. $27,500.
Explanation:
The computation of the minimum amount Morse receive is shown below:
= Morse capital balance - claim amount filed × his share
= $40,000 - $50,000 × 25%
= $40,000 - $12,500
= $27,500
Simply we deduct his share of claim amount form the liabilities amount so that the correct amount can come
All other information which is given is not relevant. Hence, ignored it
Suppose a firm has an annual budget of $150,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner-manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $320,000 per year. What are the annual accounting costs for the firm described above?
Answer:
The annual explicit costs for the firm is $310,000.
Explanation:
Explicit cost refers to the cost of the resources purchased by firm from outsiders.
Calculate the annual explicit cost -
Annual explicit cost = Wages and salaries + Materials + New equipment + rented property + interest cost on capital
Annual explicit cost = $150,000 + $75,000 + $30,000 + $20,000 + $35,000
Annual explicit cost = $310,000
Thus,
The annual explicit costs for the firm is $310,000.
Sensitivity analysis is conducted by_________________.
A. holding all variables at their base level and changing the required rate of return assigned to a project.
B. changing the value of two variables to determine their interdependency.
C. changing the value of a single variable and computing the resulting change in the current value of a project.
D. assigning either the best or the worst possible value to every variable and comparing the results to those achieved by the base case.
E. managers after a project has been implemented to determine how each variable relates to the level of output realized.
Answer:
The correct answer is letter "C": changing the value of a single variable and computing the resulting change in the current value of a project.
Explanation:
Sensitivity Analysis is used in financial modeling to determine how one variable (the target variable) may be affected by changes in another variable (the input variable). It is used to find out what variables affect a publicly-traded company's stock price. Input variables include the company's earnings, number of shares outstanding, debt to equity ratio, and the number of competitors in the industry.
In a status report, executives want to know not only where we are today, but also where we will end up. Calculating where we will end up financially is not as easy as it sounds. Selecting the wrong formula can leave the executives and customers with a faulty impression. There are several formulas available for the calculation of the estimated cost at completion (EAC). For simplicity, consider the following three formulas:
EAC = (ACWP/BCWP) x (budget at completion)
EAC = ((ACWP/BCWP) x (BCWS for work completed and in progress)) +
(planned or revised planned costs of work packages not yet begun)
EAC = (actual to date) + (all remaining work, including work in progress,
to be completed at the planned or budgeted costs)
a. Using the table below, determine the value of EAC for each of the three formulas. Assume that A, B, and C are the only work packages in the project, and BCWS(Total) is the total value for PV for each work package rather than PV for the reporting period. Use the following formula for calculating EV:
EV = (% Complete) x BCWS(Total)
Activity % Complete BCWS(Total) ACWP
A 100 1000 1100
B 50 1000 800
C 0 1000 0
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
You are a consulting firm intern and your job is to help a client choose investment projects. Your client, RealEstate, is a young and growing commercial and residential real estate firm. After reading through all the related information of those projects, you have compiled the following cash flow projections:
Col1 CF0 CF1 CF2 CF3
Col2 project 1 100 50 50 50
Col3 project 2 -80 40 45 50
Col4 project 3 -70 30 40 50
Col5 project 4 -60 30 40 60
Col6 project 5 -50 25 30 70
CF0 denotes the initial investment. CF1 is the cash flow at the end of the first year. CF2 is the cash flow at the end of the second year, and so on. The units are millions of dollars.
If RealEstate accepts projects with payback periods of 2 years or less, which project should you reject?
(a)Project 1
(b)Project 2
(c)Project 3
(d)Project 4
(e)Project 5
(f)None
Answer:
(f)None
Explanation:
Pay back period is the no of years in which cost of investment is recovered in the form of cash flow.
Project with cash back period of two years is acceptable .
Project 1
initial outlay of fund = 100 million dollar
cash flow in first two years = 50+50 = 100 million dollar
so it is acceptable because it recovers the project cost in first two years .
Project 2
initial outlay of fund = 80 million dollar
cash flow in first two years = 40+45 = 95
so it is acceptable because it recovers the project cost in first two years .
Project 3
initial outlay of fund = 70 million dollar
cash flow in first two years = 30+40 = 70
so it is acceptable because it recovers the project cost in first two years .
Project 4
initial outlay of fund = 60 million dollar
cash flow in first two years = 30+40 = 70
so it is acceptable because it recovers the project cost in first two years .
Project 5
initial outlay of fund = 50 million dollar
cash flow in first two years = 30+25 = 55
so it is acceptable because it recovers the project cost in first two years .
So none will be rejected
Final answer:
Based on the criterion of a two-year payback period, Project 5 should be rejected as it fails to provide a full recovery of the initial investment within this timeframe.
Explanation:
You have asked which investment project RealEstate should reject, if it accepts projects with payback periods of 2 years or less. To evaluate this, we need to calculate the payback period for each project. The payback period is the amount of time it takes for the initial investment to be recovered from the cash flows of the project.
Project 1 has an initial cost of 100 million dollars and provides cash flows of 50 million dollars each year. It takes two years to recover the initial investment, so it meets the criteria.Project 2 starts with a cost of 80 million dollars and generates 40 million dollars in the first year and 45 million dollars in the second year. By the end of the second year, the cumulative cash flow is 85 million dollars, so the initial investment is recovered in less than two years.Project 3 has an upfront cost of 70 million dollars with cash flows of 30 million dollars and 40 million dollars in the first and second years, respectively. The total cash flow after two years is only 70 million dollars, which just breaks even with the initial cost and thus, meets the requirements precisely.Project 4 starts with a cost of 60 million dollars with returns of 30 million dollars in the first year and 40 million dollars in the second. The payback period is less than two years as the cumulative cash flow by the end of the second year is 70 million dollars.Project 5 requires an initial outlay of 50 million dollars and yields 25 million dollars in the first year and 30 million dollars in the second year. With only 55 million dollars of cumulative cash flow after two years, the payback period exceeds two years. Therefore, this project should be rejected.Considering the payback period criterion set by RealEstate, Project 5 should be rejected as it does not provide a full recovery of the initial investment within the two-year period.
Accounts Receivable As of December 31, 2016, Nala Incorporated reported accounts receivable for $275,000 less allowance for doubtful accounts of $27,000 on their balance sheet. During 2017, Nala Incorporated had the following transactions related to their receivables balance: 1. Sales on account $180,000 2. Collections of accounts receivable 125,000 3. Sales returns 20,000 4. Write-offs of accounts receivable deemed uncollectible 35,000 5. Recovery of bad debts previously written off 2,500 a) Prepare the journal entries for each of these five transactions b) Prepare the journal entry to record bad debt expense for 2017, assuming that the aging of accounts receivable indicates that estimated bad debts are 10% of accounts receivable.
Answer:
A.
1. Dr Accounts receivable $180,000
Cr Sales $180,000
2. Dr Cash $125,000
Cr Accounts receivable $125,000
3. Dr Sales returns and allowances $20,000
Cr Accounts receivable $20,000
4. Dr Allowance for doubtful accounts $35,000
Cr Accounts receivable $35,000
5. Dr Accounts receivable $2,500
Cr Allowance for doubtful accounts $2,500
Dr Cash $2,500
Cr Accounts receivable $2,500
B. Dr Bad debt expense $27,500
Cr Allowance for doubtful accounts $27,500
Explanation:
A1. To record the sale on account we will debit accounts receivable as our collectible to customer and credit sales in the amount of $180,000
A2. To record the collection, we will recognize the receipt of cash so we have to debit cash and credit accounts receivable to deduct the collectible balance in the amount of $125,000
A3. When the company receives returns from the customers, it will be charged to sales returns and allowances account so we have to debit it and credit accounts receivables in the amount of $20,000 to deduct collectibles to suppliers. Said, sales returns and allowances account is a contra account of sales. Thus, any amount recorded under it will be charged against (deduction) our sales.
A4. During the write off, we will debit allowance for doubtful accounts and credit accounts receivables to reduce its amount from the worthless receivables that is deemed to be uncollectible.
A5. Collection of previously written off receivables will resort to 2 entries. First, reversal of the original entry we made during the write off. So we debit Accounts receivable and credit allowance for doubtful accounts in the amount of $2,500. Next is to record the cash we received from the customer. So debit cash and credit accounts receivable in the same amount of $2,500.
B. To record the bad debt expense, we need to compute first the ending balance of the accounts receivable.
Beg $275,000 plus sales on account of $180,000 less collection $125,000, sales return of $20,000 and write off $35,000 = $275,000.
Bad debts is 10% of the Accounts receivable, so $275,000 x 10% = $27,500
Entry:
Dr bad debt expense $27,500
Cr allowance for doubtful accounts $27,500
Global Technology’s capital structure is as follows: Debt 35 % Preferred stock 15 Common equity 50 The aftertax cost of debt is 9.00 percent; the cost of preferred stock is 13.00 percent; and the cost of common equity (in the form of retained earnings) is 16.00 percent. Calculate the Global Technology’s weighted cost of each source of capital and the weighted average cost of capital. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
Answer:
weighted average cost of capital = 13.10%
Explanation:
given data
Debt = 35%
Preferred stock = 15
Common equity = 50
cost of debt = 9 percent
cost of preferred stock = 13 percent
cost of common equity = 16 percent
to find out
Weighted Average cost of capital
solution
we get here weighted cost of each source of capital that is
Weighted Cost of Debt = 0.35 * 9% = 3.15 % ....................1
Weighted Cost of Preferred Stock = 0.15 * 13% = 1.95% .........2
Weighted Cost of Common Stock = 0.50 * 16% = 8 % ..............3
so
so weighted average cost of capital will be
weighted average cost of capital = 3.15 % + 1.95% + 8 %
weighted average cost of capital = 13.10%
The stock of Top of the Muffin currently pays a dividend of $2.85. The dividend is expected to grow by 30% per year for the next three years. In year 4 it will increase by $2.40 over the previous year, and after that point it will grow at 2% per year for the foreseeable future. If you require an 10.8% return for investing in this stock, what is a share of the stock worth to you today?
Answer:
Consider the following calculation
Explanation:
Year 1 dividend = 2.85 (1 + 30%) = 3.705
Year 2 dividend = 3.705 (1 + 30%) = 4.8165
Year 3 dividend = 4.8165 (1 + 30%) = 6.26145
Year 4 dividend = 6.26145 + 2.4 = 8.66145
Year 5 dividend = 8.66145 (1 + 2%) = 8.834679
Value at year 4 = D5 / required rate - growth rate
Value at year 4 = 8.834679 / 0.108 - 0.02
Value at year 4 = 8.834679 / 0.088
Value at year 4 = 100.39408
Share price = Present value of cash inflows
Share price = 3.705 / (1 + 0.108)1 + 4.8165 / (1 + 0.108)2 + 6.26145 / (1 + 0.108)3 + 8.66145 / (1 + 0.108)4 + 100.39408 / (1 + 0.108)4
Share price = $84.23
Suppose you recently paid $1000 for a new 30-year bond issued by the telecommunications company, Verizon. The interest ("coupon") rate is 6 percent, and for the sake of simplicity, let’s assume that the $60 is paid once a year at the end of the year. Given the 6 percent interest rate, the present value of the bond's face value of $1000 paid thirty years from now is approximately $175. What is the present value of the stream of thirty, annual $60 payments? You can calculate the answer or use a shortcut.
$1,000
$825
$700
$350
$140
Answer:
$825
Explanation:
The computation of the present value of the stream of thirty is shown below:
= Face value of the bond - Present value of maturity value after 30 years
= $1,000 - $175
= $825
Simply we deduct the present value of maturity value after 30 years from the face value of the bond so that the correct amount can come
All other information which is given is not relevant. Hence, ignored it
Variable Costing Marley Company has the following information for March: Sales $912,000 Variable cost of goods sold 474,000 Fixed manufacturing costs 82,000 Variable selling and administrative expenses 238,100 Fixed selling and administrative expenses 54,700 Determine the following for Marley Company for the month of March: a. Manufacturing margin $ b. Contribution margin $ c. Income from operations $
Answer:
(a) $438,000
(b) $199,900
(c) $63,200
Explanation:
(a) Manufacturing margin:
= Net sales - Variable cost of goods sold
= $912,000 - $474,000
= $438,000
(b) Contribution margin:
= Manufacturing margin - Variable selling and administrative expenses
= $438,000 - $238,100
= $199,900
(c) Income from operations:
= Contribution margin - Fixed selling and administrative expenses - Fixed manufacturing costs
= $199,900 - $54,700 - $82,000
= $63,200
Multiple Choice Question 91 Equipment was purchased for $147000. Freight charges amounted to $4000 and there was a cost of $19000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $34000 salvage value at the end of its 5-year useful life. Depreciation Expense each year using the straight-line method will be ____ .
Answer:
$27,200
Explanation:
Data provided in the question:
Purchasing cost = $147,000
Freight charges = $4,000
Foundation and installation charges = $19,000
Salvage value = $34,000
Useful life = 5 years
Now,
Total cost of the equipment
= Purchasing cost + Freight charges + Foundation and installation charges
= $147,000 + $4,000 + $19,000
= $170,000
using the straight line method of depreciation,
we have
Annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $170,000 - $34,000 ] ÷ 5
= $27,200
Stafford Co. Issued $200,000 face value, 6%, 10-year bonds on January 1, 2017 for $172,740. The market rate of interest was 8%. Interest is payable semi-annually on June 30 and December 31. Staffer uses the effective interest method to amortize bond premium or discount. (a) Determine the amount of interest expense to be recorded with the first cash interest payment. $Answer (b) Determine the carrying value of the bonds on December 31, 2017, after the interest payment has been made. $Answer (c) How much interest expense would be recorded on the 2017 Income Statement? $Answer (d) If the bonds are selling at 103 on December 31, 2018, have market interest rates increased or decreased since the bonds were issued? Answer
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
he Alford Group had 220,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are no potential common shares outstanding. 2018 Feb. 28 Purchased 24,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 96,000 new shares. Dec. 31 Net income for 2018 is $1,590,000. 2019 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2019 is $1,590,000.
Answer:
Consider the following calculation
Explanation:
1. Determine the 2018 EPS.
EPS = Net Income / Weighted Average number of shares
Numerator
Net Income = $15,90
Denominator
Weighted Average number of shares = 2,20 – (24x10/12) + (24x2/12) + (96x1/12)
= 2,52 Shares
EPS 2018 = $15,90 / 2,52 Shares
= $6.31 per share
2. Determine the 2019 EPS.
Numerator
Net Income = $15,90
Denominator
Weighted Average number of shares
=[ 2,20 – 24 + 24 + 96 ] x 2 Stock Split
= 6,32 Shares
EPS 2019 = $15,90 / 6,32 Shares
= $2.52 per share
3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements?
Numerator
Net Income = $15,90
Denominator
Weighted Average number of shares
= 2,520 x 2 Stock split
= 5,04 Shares
EPS = $15,90 / 5,04
= $3.15 per share
A description of the processes you use to ensure that results meet the specified quality standards is a _____.
a. quality standards plan
b. quality control plan
c. quality process plan
d. quality assurance plan
Answer:
d. quality assurance plan
:
Quality assurance plan is meant to ensure that the final products are matching to required quality. There are four basic steps of the quality assurance process: Plan, Do, Check, and Act.
quality assurance plan
Explanation:
Rhonda is single and receives the following income during the year: $30,000 taxable pension, $6,000 in social security payments, and $1,000 of interest on State of Iowa bonds. What is Rhonda's adjusted gross income based on the above information?a. $36,000b. $34,500c. $33,000d. $30,000e. None of the above
Answer:
Rhonda's adjusted gross income = $33,000
so correct option is c. $33,000
Explanation:
given data
taxable pension = $30,000
social security payments = $6,000
interest on State of Iowa bonds = $1,000
to find out
Rhonda's adjusted gross income
solution
we get here Rhonda's adjusted gross income that is express as
adjusted gross income = Taxable pension + Social security ....................1
here we know If income is between $25,000 and $34,000 than there is up to 50 % of your benefits may be subject to tax
so here Social security = 50% × $6,000 = $3000
so total adjusted gross income will be
Rhonda's adjusted gross income = $30,000 + $3,000
Rhonda's adjusted gross income = $33,000
so correct option is c. $33,000
Bello, Inc., has a total debt ratio of .31.
a. What is its debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is its equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The debt-equity ratio and equity multiplier can be calculated using the given debt ratio of Bello, Inc.
Explanation:The debt ratio is a financial ratio that measures the proportion of a company's total assets that are financed by debt. It is calculated by dividing total debt by total assets. In this case, Bello, Inc. has a total debt ratio of 0.31.
To find the debt-equity ratio, we can subtract the debt ratio from 1. The debt-equity ratio is a measure of the proportion of a company's financing that comes from debt compared to equity. Therefore, the debt-equity ratio for Bello, Inc. is 1 - 0.31 = 0.69.
The equity multiplier is another measure of leverage and is calculated by dividing total assets by total equity. To find the equity multiplier for Bello, Inc., we can divide 1 by the debt ratio (1/0.31 = 3.23).
Learn more about debt ratio here:
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Expected sales for next year for the Beresford Company is 150,000 units. Curt Planters, manager of the Beresford Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 150,000 units or 170,000 units. The Beresford Company will have higher net income if Curt Planters decides to produce
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The expected sales for next year for the Beresford Company is 150,000 units. Curt Planters, manager of the Beresford Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 150,000 units or 170,000 units.
In order to improve its performance based on more production, the company must use an absorption cost method. Absorption cost includes the fixed manufacture cost in the unit product cost. Therefore, by producing more units, the fixed costs spread on more units, decreasing the cost of units sold and increasing gross profit. The fixed costs of the period remain on inventory.
He should produce 180,000 units under absorption cost method.
Use the information below to answer question Balance Sheet 2014 2015 2014 2015 Current assets 200 250 Current liabilities 300 250 Net fixed assets 2,775 3,535 Long-term debt 1,250 2,135 2015 Income Statement Sales 5,436 Costs 2,245 Depreciation 448 Interest expense 123 1. What is the operating cash flow (OCF) for 2015? Assume the tax rate is 35 percent. A. 5,436 B. 2,274 C. 3,191 D. 2,743 E. 6,007
Answer:
B. 2,274
Explanation:
The operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - cost of good sold - depreciation expense
= $5,436 - $2,245 - $448
= $2,743
Income tax expense would be
= (Sales - cost of good sold - depreciation expense - interest expense) × tax rate
= ($5,436 - $2,245 - $448 - $123) × 35%
= $917
And all other items would remain same
Now put these values to the above formula
So, the value would equal to
= $2,743 + $448 - $917
= $2,274
Answer:
the correct answer is "b"
Explanation:
Prior to 1914, Argentina experienced around fifty years of economic growth. During that time, Argentina was ruled by a small amount of elite that was invested in agricultural exports. Thus, the economy grew by exporting beef and grain during a worldwide economic boom surrounding these commodities. The broadening of the political landscape following WWI and subsequent repeated military coups changed the leaders, but made the economic landscape increasingly unstable.
This period of growth is a classic example of economic growth under what system?
a. Rule by Law
b. Extractive institutions
c. The vicious circle
d. Inclusive Institutions
Answer: Option (B)
Explanation:
The period of growth exhibited by Argentina is referred to as the classic example of their growth under Extractive institutions. Extractive institutions referred to as the means under which a small organization or group of individuals tend do exploit the population of a nation. Under this case the small group of elites that were ruling Argentina and thus further investing in export of agricultural products,thus effecting Argentina and its population.
The table below shows some hypothetical data on the costs associated with the use of a liter of gasoline in a European country.
Refining, distributing, and selling of gasoline all take place within this European country.
1. In euros, what is the private cost for an individual of a liter of gasoline in Europe (Ex: If your answer is 3.25 Euros then enter 3.25)?
2. What is the social cost, in euros, of a liter of gasoline?
Cost Euros
Cost of imported oil................................................ 0.5
Cost of refining oil to gasoline............................... 1
Cost of distributing and selling gasoline............... 0.75
Government tax....................................................... 2.5
Cost of pollution from one liter of gasoline........... 2
Answer:
1. 4.75
2. 4.25
Explanation:
1. Private cost is a supplier's or producer's cost of providing goods and services without any external cost.
Private cost:
= Cost of imported oil + Cost of refining oil to gasoline + Cost of distributing and selling gasoline + Government tax
= 0.50 + 1 + 0.75 + 2.50
= 4.75
2. Social cost is private cost plus external cost.
Social cost:
= Cost of imported oil + Cost of refining oil to gasoline + Cost of distributing and selling gasoline + Cost of pollution from one liter of gasoline
= 0.5 + 1 + 0.75 + 2
= 4.25
A company produces 1 comma 0001,000 packages of dog treats per month. The sales price is $ 6.00$6.00 per pack. Variable cost is $ 1.50$1.50 per unit, and fixed costs are $ 1 comma 800$1,800 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $ 1.50$1.50 to $ 1.70$1.70 per unit, and fixed costs will increase by 2020%. At what sales price for the new product will the two alternatives (sell as is or process further) produce the same operating income? (Round your answer to the nearest cent.)
Final answer:
The new sales price that will result in the same operating income after increasing the variable and fixed costs is $6.56 per package, rounded to the nearest cent.
Explanation:
To calculate the new sales price that will yield the same operating income after adding a vitamin supplement to dog treats, we need to consider the change in both variable costs and fixed costs. Currently, the operating income is the difference between the total revenue and total costs (which is the sum of variable and fixed costs).
The company sells 1,000 packages at $6.00 each, so the total revenue is $6,000. The variable costs are $1.50 per unit, amounting to $1,500 in total, and fixed costs are $1,800. After the changes, variable costs will rise to $1.70 per unit, totaling $1,700, and fixed costs will increase by 20%, making the new fixed costs $2,160.
For the two alternatives (original and new products with added vitamins) to yield the same operating income, the increase in total costs (due to increased variable and fixed costs) must be matched by an increase in total revenue, which is achieved by adjusting the sales price accordingly. The formula to find the new sales price is:
New sale price = (Total revenue with original costs + Increase in variable costs + Increase in fixed costs) / Number of units
Substituting the numbers in:
New sale price = ($6,000 + $200 + $360) / 1,000
This results in a new sale price of $6.56 per package, rounded to the nearest cent.
During a Sprint, the features are broken down into smaller elements and put on theSprint Backlog. Which one of the following statements best describes these smallerelements?
a. Activities estimated in duration scrum
b. Tasks estimated in hours (effort)
c. Tasks estimated in duration
d. Activities estimated in hours (effort)
Answer:
The correct answer is letter "B": Tasks estimated in hours (effort).
Explanation:
Sprint Planning meeting is the first Scrum event where tasks are planned for the ongoing Sprint. In this Sprint, the Scrum master, product owner, and the development team participate to share ideas. The tasks are broken down into small duties that the development team members can select. Those tasks are estimated in hours, being the total amount of hours the total work.
Final answer:
The smaller elements on the Sprint Backlog during a Sprint in Scrum methodology are tasks estimated in hours (effort), which are essential for realistic sprint planning and effective time management. The correct answer is: b. Tasks estimated in hours (effort).
Explanation:
During a Sprint, the smaller elements that features are broken down into are described as tasks estimated in hours (effort). In the context of Scrum, once functions are selected and refined for a Sprint, they are detailed and explained for implementation. The work time for these tasks is estimated, informing how many functions can be included in the sprint which typically lasts two to four weeks. This estimation process is crucial for successful sprint planning and requires the creation of a sprint log. As part of the sprint planning, the sprint backlog contains all the tasks to be implemented in the next stage, with the necessary technical descriptions to guide developers and team members.
The focus during sprint planning is on breaking down the work into manageable tasks and creating realistic time estimates based on effort in hours. This is essential to accommodate the selected functions within the sprint timeframe. This estimation enables effective time management and ensures that the team remains focused on delivering value while staying within the planned duration of the Sprint.
Tyrone, a project manager at a computer firm, needs to monitor the schedule of a critical project. What should Tyrone do first?
A. Develop a schedule baseline
B. Calculate all schedule variances
C. Identify major scope creep
D. Analyze the completion status of activities
Answer:
The correct answer is letter "C": Identify major scope creep.
Explanation:
Scope creep in project management refers to those uncontrolled changes in the scope of a plan. This can be caused when the scope of the project is not defined or controlled correctly. It may cause schedule variances so it is important to deal with it during the first steps of monitoring a critical project.
Brothers Breads has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 daysa. 31 daysb. 34 daysc. 38 daysd. 42 dayse. 46 days
Answer:
Option (D) is correct.
Explanation:
Given that,
Inventory conversion period = 50 days
Average collection period = 17 days
Payables deferral period = 25 days
Cash Conversion cycle:
= Inventory Conversion Period + Average collection Period - Payables deferral Period
= 50 days + 17 days - 25 days
= 42 days
Therefore, the firm's cash conversion cycle is 42 days.
A way to identify those elements in the product/service chain that uniquely add value is referred to as
A. the resources view.
B. value-chain analysis.
C. the five forces model.
D. supply chain management.
Answer:
B. value-chain analysis.
Explanation:
According to the given situation, the most appropriate option is B. value chain analysis as the value chain analysis represent the activities that adds the value to the business organization. This concept is developed by Michael Porter in his book "Competitive advantage".
The value chain analysis comprises of the two activities
1. Primary activities: It includes activities like - inbound and outbound logistics, marketing sales and services, etc
2. Support activities: It includes those activities which helps in procurement, managing human resource, etc.
The resource view measures the efficiency and effectiveness of the available resources that helps the organization to assess competitive advantage
The five forces model shows the weakness and strengthens of the business organization
And, the supply chain management deals with transforming the raw material into the finished products
Using the following data, Garcon Company Pepper Company Beginning finished goods inventory $ 12,000 $ 16,450 Beginning work in process inventory 14,500 19,950 Beginning raw materials inventory 7,250 9,000 Rental cost on factory equipment 27,000 22,750 Direct labor 19,000 35,000 Ending finished goods inventory 17,650 13,300 Ending work in process inventory 22,000 16,000 Ending raw materials inventory 5,300 7,200 Factory utilities 9,000 12,000 Factory supplies used 8,200 3,200 General and administrative expenses 21,000 43,000 Indirect labor 1,250 7,660 Repairs—Factory equipment 4,780 1,500 Raw materials purchases 33,000 52,000 Selling expenses 50,000 46,000 Sales 195,030 290,010 Cash 20,000 15,700 Factory equipment, net 212,500 115,825 Accounts receivable, net 13,200 19,450 References Section BreakExercise 18-8 Cost of goods manufactured and cost of goods sold computation LO P1, P2 1.value: 1.50 pointsPart 1 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company. HintsReferenceseBook & Resources Hint #1 Check my workPrevious attempt 2.value: 2.00 pointsRequired information You did not receive full credit for this question in a previous attempt Exercise 18-8 Part 2 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company.
Answer:
Garcon company : cost of production $96,680 cost of good sold $91,030 Gross profit $104,000 Net profit $33,000
Pepper company : cost of production $139,860 cost of good sold $143,010 Gross profit $147,000 Net profit $58,000Explanation:
Garcon. Company
T Account Format
Manufacturing, Trading, Profit and Loss Account
Dr. Cr
$ $
Raw materials. Cost of production transferred
Beginning inventory 7,250. to trading account
Add: purchase 33,000. 96,680
----------
Total materials available 40,250
Less:Ending inventory 5,300
----------
Cost of raw materials consumed 34,950
Add: Direct Labour 19,000
-----------
Prime Cost. 53,950
Factory overhead
Rental cost 27,000
Factory utilities 9,000
Factory supplies used 8,200
Indirect labour 1,250
Repair of factory equipment 4,780
-----------
50,230
Add:Beginning WIP. 14,500
----------
64,730
Less: Ending WIP 22,000
---------
42,730
--------------- ------------------------
Cost of production. 96,680. 96,680
----------------- ---------------------------
Finished good
Beginning inventory 12,000. Sales 195,030
Add: Cost of production 96,680
----------
Goods available for sale 108,680
Less: ending finished good inventory 17,650
-----------
Cost of good sold. 91,030
Gross Profit c/d. 104,000
------------- -----------------
195,030. 195,030
------------------ ----------------------
Expenses
General & Administrative expenses 21,000. Gross Profit b/d 104,000
Selling expenses. 50,000
Net profit. 33,000
------------------ ----------------
104,000 104,000
------------------- -----------------
Pepper company
T Account Format
Manufacturing , Trading, Profit and Loss Account
Dr. Cr
$ $
Raw materials. Cost of production
Beginning inventory 9,000. Transferred to trading Account
Add: purchase. 52,000. 139,860
----------
Total materials available. 61,000
Less: Ending inventory. 7,200
-----------
Cost of raw materials consumed 53,800
Add: Direct Labour. 35,000
-----------
Prime Cost. 88,800
Factory overhead
Rental cost 22,750
Factory utilities 12,000
Factory supplied used 3,200
Indirect labour 7,660
Repair of Factory equipment 1,500
-----------
47,110
Add: Beginning WIP. 19,950
-----------
67,060
Less: Ending WIP. 16,000
-----------
51,060
------------- --------------
Cost of production. 139,860. 139,860
-------------- -----------------
Finished good
Beginninginventory 16,450. Sales 290,010
Add: Cost of production 139,860
--------------
Cost of good available for sale 156,310
Less:Ending inventory 13,300
-------------
Cost of good sold. 143,010
Gross Profit c /d. 147,000
------------ ----------------
290,010. 290,010
-------------- ------------------
Expenses
General &Administrative expenses 43,000. Gross Profit b /d 147,000
Add: Selling expenses. 46,000
----------------
89,000
Net profit 58,000
-------------- -----------------
147,000. 147,000
-------------- -------------------