3. A borrower has secured a 30-year, $107,000 loan at 6% with monthly payments. Fifteen years later, an investor wants to purchase a loan from a lender. If market interest rates are 7%, what would the investor be willing to pay for the loan (assuming the investor believes that all remaining payments will be paid as scheduled)?
4. Mr. Fisher has built several houses and is offering mortgage rates of 4% with a 15-year term to prospective buyers. Investors are willing to buy the mortgage at 10.75%. If a house is sold for $383,000 with a 90% loan, how much would Mr. Fisher lose by selling the mortgage to an investor? Hint: What is the difference between the amount borrowed and how much an investor would be willing to pay for the loan.
5. What is the effective cost of a combination of an 80% mortgage at 3.5% and a second mortgage (for 10% of the purchase price) at 4.5%? Both mortgages carry a 30-year term and have no points/closing costs.

Answers

Answer 1

3. The investor would be willing to pay approximately $21,268.94 for the loan 4. Mr. Fisher would lose approximately $267,359.11 by selling the mortgage to an investor 5. the monthly cost for both mortgages is C = E * (30 * 12) .

3. To calculate the amount an investor would be willing to pay for the loan, we need to determine the remaining balance on the loan after fifteen years and then calculate the present value of the remaining payments using the market interest rate.

Given:

Loan amount: $107,000

Loan term: 30 years

Interest rate: 6%

Time elapsed: 15 years

Market interest rate: 7%

To find the remaining balance after fifteen years, we can use an amortization formula or a mortgage calculator. Using a mortgage calculator, we can calculate that the remaining balance on the loan after fifteen years is approximately $62,951.99.

Next, we need to calculate the present value of the remaining payments using the market interest rate of 7%. The present value can be calculated using the formula:

Present Value = Future Value / (1 + Interest Rate)^n

Where:

Future Value = Remaining balance

Interest Rate = Market interest rate

n = Remaining number of periods (in this case, 15 years or 180 months)

Let's plug in the values and calculate the present value:

Present Value = $62,951.99 / (1 + 0.07)^180

Present Value = $62,951.99 / (1.07)^180

Using a calculator, we find that the present value is approximately $21,268.94.

Therefore, the investor would be willing to pay approximately $21,268.94 for the loan, assuming they believe that all remaining payments will be paid as scheduled.

4. 4.To calculate the amount Mr. Fisher would lose by selling the mortgage to an investor, we need to find the difference between the amount borrowed by the buyer and the amount the investor would be willing to pay for the loan.

Given:

House price: $383,000

Loan-to-value ratio: 90% (meaning the loan amount is 90% of the house price)

Mortgage rate offered by Mr. Fisher: 4%

Loan term: 15 years

Investor's mortgage rate: 10.75%

First, we need to calculate the loan amount based on the loan-to-value ratio:

Loan amount = House price * Loan-to-value ratio

Loan amount = $383,000 * 0.90

Loan amount = $344,700

Next, we need to calculate the present value of the loan amount using the mortgage rate offered by the investor (10.75%). We'll use the formula:

Present Value = Future Value / (1 + Interest Rate)^n

Where:

Future Value = Loan amount

Interest Rate = Investor's mortgage rate

n = Loan term in years (15 years)

Present Value = $344,700 / (1 + 0.1075)^15

Present Value = $344,700 / (1.1075)^15

Using a calculator, we find that the present value of the loan amount is approximately $77,340.89.

Now, we can calculate the difference between the loan amount and the present value:

Loss = Loan amount - Present Value

Loss = $344,700 - $77,340.89

Loss = $267,359.11

Therefore, Mr. Fisher would lose approximately $267,359.11 by selling the mortgage to an investor.

5. To calculate the effective cost of a combination of two mortgages, we need to consider the interest rates and loan amounts of each mortgage.

Given:

First mortgage:

Loan-to-value ratio: 80%

Interest rate: 3.5%

Loan term: 30 years

Second mortgage:

Loan-to-value ratio: 10% of the purchase price

Interest rate: 4.5%

Loan term: 30 years

Assuming the purchase price is denoted as P, we can calculate the loan amounts for each mortgage:

First mortgage loan amount = P * 80%

Second mortgage loan amount = P * 10%

To calculate the effective cost, we'll need to determine the total monthly payments for both mortgages. We'll use the loan amount, interest rate, and loan term to calculate the monthly payment for each mortgage using the standard mortgage payment formula:

M = P * r * (1 + r)^n / ((1 + r)^n - 1)

Where:

M = Monthly payment

P = Loan amount

r = Monthly interest rate (annual interest rate divided by 12)

n = Total number of monthly payments (loan term in years multiplied by 12)

Let's calculate the monthly payments for each mortgage:

First mortgage monthly payment:

P1 = P * 80%

r1 = 3.5% / 12

n1 = 30 * 12

M1 = P1 * r1 * (1 + r1)^n1 / ((1 + r1)^n1 - 1)

Second mortgage monthly payment:

P2 = P * 10%

r2 = 4.5% / 12

n2 = 30 * 12

M2 = P2 * r2 * (1 + r2)^n2 / ((1 + r2)^n2 - 1)

Now, let's calculate the effective monthly cost by summing up the monthly payments for both mortgages:

Effective monthly cost = M1 + M2

To calculate the effective cost over the entire loan term, we can multiply the effective monthly cost by the total number of monthly payments (loan term in years multiplied by 12):

Effective cost = Effective monthly cost * (30 * 12)

Please note that the equations above represent the general formula to calculate the effective cost of the mortgage combination based on the provided information. You can substitute the value of the purchase price (P) into the equations to get the specific numerical result.

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Related Questions

Assessment 2 Briefs Question 1: What category of business is Qantas Group? Support and explain your answer using both qualitative (i.e. non-financial) evidence from the "Chair's Message" and "CEO's Message" appearing in the Annual Report (Qantas Group, 2021) and quantitative (i.e. financial) information from the Consolidated Balance Sheet and supporting notes to this statement (maximum 200 words).

Answers

The category of business that Qantas Group falls into is the Aviation and travel industry. The company operates multiple airlines, including Qantas Airways Limited, Jetstar Airways Pty Limited, and QantasLink. Qantas Group is one of the biggest players in the aviation and travel industry in Australia, providing both domestic and international travel.  

The category of business that Qantas Group falls into is the Aviation and travel industry. The company operates multiple airlines, including Qantas Airways Limited, Jetstar Airways Pty Limited, and QantasLink. Qantas Group is one of the biggest players in the aviation and travel industry in Australia, providing both domestic and international travel.

Qualitative evidence from the Chair's Message and CEO's Message in the Annual Report of Qantas Group (2021) confirms that the company operates in the aviation and travel industry. The Chair's Message mentions that the company has worked to enhance customer service and experiences, while the CEO's Message highlights Qantas' commitment to sustainability and innovation in the aviation industry. Both of these messages indicate that Qantas is operating in the aviation and travel industry and has a focus on providing high-quality travel experiences for its customers.

Quantitative evidence from the Consolidated Balance Sheet and supporting notes to this statement in the Annual Report of Qantas Group (2021) further support the conclusion that the company operates in the aviation and travel industry. The company's primary assets consist of property, plant, and equipment, which includes aircraft and other assets used to support its aviation operations. In addition, the company generates revenue primarily from passenger transport services, which is a core service offered in the aviation and travel industry.

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Which rule affems that in the case of multiple assignments of the same right, the first party granted the assignment is the party correctly entitied to the contractual right?
a. The first assignment
b. The last mentin-some rule
c. The English rule
d. The French rule
e. The American rule

Answers

The rule that affirms that in the case of multiple assignments of the same right, the first party granted the assignment is the party correctly entitled to the contractual right is the "first assignment" rule.

In the context of contract law, the first assignment rule states that when there are multiple assignments of the same right, the first party to receive the assignment is the one who retains the contractual right. This means that if a right has been assigned to multiple parties, the party who received the assignment first will have priority over the others.

The rationale behind this rule is to provide certainty and avoid confusion in contractual relationships. By establishing a clear priority based on the order of assignments, it allows parties to rely on the initial assignment and prevents disputes over competing claims to the same right. This rule is commonly followed in many legal systems, including common law jurisdictions.

It's important to note that the terminology used to refer to this rule may vary in different jurisdictions. While it is often called the "first assignment" rule, it can also be known as the "first in time" rule or similar names. The purpose of the rule remains the same, to determine the priority of conflicting assignments based on the order in which they were made.

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do celia and bernadette seem to engage in dual perspective to understand each other?

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Tt is important to first understand what dual perspective means. Dual perspective is the ability to view a situation or issue from more than one perspective. It involves taking into consideration the viewpoints of others, understanding their experiences, and acknowledging their feelings and emotions.

In the case of Celia and Bernadette, it is difficult to determine whether or not they engage in dual perspective to understand each other without further context. However, it is possible that they do engage in this type of understanding. If Celia and Bernadette are able to put themselves in each other's shoes, empathize with each other's experiences, and communicate effectively, then they are likely engaging in dual perspective.

To explain further, dual perspective can be seen as a key component of effective communication and healthy relationships. When we are able to see things from another's perspective, it helps us to better understand them, their experiences, and their feelings. This, in turn, can lead to greater empathy and more effective communication.

In summary, without additional information about Celia and Bernadette's relationship, it is difficult to determine whether they engage in dual perspective. However, dual perspective is an important component of effective communication and healthy relationships, and can help us to better understand and empathize with others.

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which bond would most likely possess the least degree of interest rate risk?

Answers

The bond that would most likely possess the least degree of interest rate risk is a zero-coupon bond.

What is this bond?

A zero-coupon bond is a bond that pays no periodic interest. Instead, it is sold at a discount to its par value and the investor receives the face value at maturity.

Therefore, the investor knows exactly how much they will receive at maturity and does not have to worry about changes in interest rates affecting the bond's value. Because the bond does not pay any interest until maturity, it has a longer duration than a traditional bond, but it has less interest rate risk since there are no coupon payments that will be affected by changes in interest rates.

Overall, zero-coupon bonds are an attractive investment for investors who seek predictable returns and are less concerned with income and liquidity.

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compute 3m’s average collection period for accounts receivable in days. (round answer to 1 decimal place, e.g. 12.5. use 365 days for calculation.)

Answers

To compute 3M's average collection period for profit accounts receivable, we need two pieces of information.

the average accounts receivable balance and the annual credit sales. The formula for average collection period is:

Average Collection Period = (Average Accounts Receivable / Annual Credit Sales) * Number of Days

Since we don't have the specific values for Average Accounts Receivable and Annual Credit Sales, we cannot calculate the average collection period accurately. However, if you provide the necessary data, I can assist you with the calculation.

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An assembly component A uses 2 units of another component B. Component A has the planned order release of 36 and 62 units at week 3 and week 4 respectively. The company expects an on hand inventory of 96 units of B at the end of week 2 and a scheduled receipt of 12 units of B from an outside supplier at the start of week 3. What will be the net requirement of component B at week 4?

Answers

To calculate the net requirement of component B at week 4, we need to consider the demand from component A, the on-hand inventory, and scheduled receipts.

Demand from component A: Component A requires 2 units of component B for each unit of A. The planned order release of component A is 62 units at week 4. Therefore, the demand for component B from component A at week 4 would be:

Demand from A at week 4 = Planned order release of A at week 4 * 2

Planned order release of A at week 4 = 62 units

Demand from A at week 4 = 62 * 2

= 124 units

On-hand inventory: At the end of week 2, the on-hand inventory of component B is given as 96 units.

Scheduled receipts: At the start of week 3, there is a scheduled receipt of 12 units of component B from an outside supplier.

Net requirement at week 4 = Demand from A at week 4 - On-hand inventory - Scheduled receipts

Net requirement at week 4 = 124 - 96 - 12

= 16 units

The net requirement of component B at week 4 is 16 units. This means that the company needs to procure an additional 16 units of component B to meet the demand of component A at week 4.

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"Gross Domestic Product (GDP) per capita will increase if
income

Answers

Gross Domestic Product (GDP) per capita will increase if the income level of a country increases over time. Here's a long answer to explain this statement more. Gross Domestic Product (GDP) is the monetary value of all the goods and services that a country produces in a particular year.

Gross Domestic Product (GDP) per capita is obtained by dividing the GDP of a country by the total population of the country. The GDP per capita of a country is a measure of the economic well-being of the citizens of the country. The higher the GDP per capita, the higher the standard of living of the citizens of the country.Income is the money that a person or a household earns in a particular period. Income can come from wages, salaries, rent, interest, profits, and other sources. The income level of a country is an important determinant of the GDP per capita of the country.

If the income level of a country increases over time, the GDP per capita of the country will also increase. This is because people will have more money to spend on goods and services. This will lead to an increase in the demand for goods and services, which will lead to an increase in the production of goods and services. As the production of goods and services increases, the GDP of the country will increase. If the population of the country remains constant, the increase in GDP will result in an increase in GDP per capita. Therefore, the GDP per capita of a country will increase if the income level of the country increases over time.

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What specific action steps should the organization take to solve the turnover problem? What changes should be implemented?
What are the potential barriers, obstacles, and challenges to following your recommendations?
What are the risks, costs, and possible unintended consequences of following your recommendations?
How will you communicate your findings to your clients and overcome potential resistance?

Answers

To solve the turnover problem, the organization should take the following action steps:

Develop an effective hiring process: The organization should implement a hiring process that considers an individual's knowledge, skills, and attitude, among other things. A sound hiring process reduces employee turnover by hiring people who are a good fit for the organization.

Improve employee engagement: The organization should conduct regular surveys to determine how engaged the employees are and what their concerns are. The findings should be addressed by the management team to improve the employees' engagement in their work. They could also implement mentoring, wellness, and employee recognition programs.

Implement professional development programs: The organization should provide employees with opportunities to grow and develop in their roles, such as training and education programs, increasing employee retention, and reducing employee turnover rates. Employee recognition programs are also an excellent way to retain employees. There are several potential barriers, obstacles, and challenges that the organization may face while following the recommendations mentioned above.

These include the following:-

Resistance to change: Change management is a vital component of the process, and the company may encounter resistance to change from some employees who are comfortable with the status quo. Poor communication: There may be inadequate communication from the management team to the employees regarding the need for change. This can cause misunderstandings, a lack of buy-in, and even a lack of trust.

Cost: The cost of implementing the changes may be too high for the organization to bear. Possible unintended consequences may include the following:

i) Increased employee turnover: The new changes may not be implemented correctly, causing the employees to feel demotivated and leading to increased employee turnover.

ii)Lack of interest: The employees may not show an interest in the professional development programs, making it challenging to retain employees.

To communicate the findings to clients and overcome potential resistance, the management team must create a plan to ensure that they effectively communicate the need for change. This can be done through frequent and open communication with employees, highlighting the importance of implementing the proposed changes. They could also involve the employees in the change process to increase their buy-in and create a sense of ownership. The team should also monitor the implementation process to identify and address areas of resistance promptly.

The specific action steps that the organization should take to solve the turnover problem includes the following:

Recruiting good talent and hiring suitable employees who are the right fit for the company's culture

Training and development programs should be implemented to help employees grow and acquire new skills and knowledge

Creating a positive work environment that is supportive and provides opportunities for growth and development

Making employee compensation and benefits attractive and competitive to ensure employee retention

Diversity and inclusion programs should be implemented to help employees feel valued and respected

Potential barriers, obstacles, and challenges to following the recommendations include resistance from management or employees, budget constraints, and difficulties in finding suitable candidates for job openings.

Risks, costs, and possible unintended consequences of following the recommendations include increased expenses associated with training, development, and compensation programs. It may also lead to increased competition from other companies in the industry.

Communicating the findings to clients involves presenting the data in a clear and concise manner. Overcoming potential resistance involves listening to the client's concerns and addressing them in a way that is respectful and professional.

Turnover problems can be solved by taking specific action steps. First, the organization should recruit good talent and hire suitable employees who are the right fit for the company's culture. Second, the organization should implement training and development programs to help employees grow and acquire new skills and knowledge. Third, the organization should create a positive work environment that is supportive and provides opportunities for growth and development. Fourth, the organization should make employee compensation and benefits attractive and competitive to ensure employee retention. Finally, diversity and inclusion programs should be implemented to help employees feel valued and respected. The potential barriers, obstacles, and challenges to following the recommendations include resistance from management or employees, budget constraints, and difficulties in finding suitable candidates for job openings. The risks, costs, and possible unintended consequences of following the recommendations include increased expenses associated with training, development, and compensation programs. It may also lead to increased competition from other companies in the industry. Communicating the findings to clients involves presenting the data in a clear and concise manner. Overcoming potential resistance involves listening to the client's concerns and addressing them in a way that is respectful and professional.

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Raymond Ryans purchased a 50-year –old flat in Melbourne on 15 September 2010 for $350,000 which he subsequently let out to tenants until 15 October 2015. Due to personal circumstances, Raymond decided to personally use the flat from 16 October 2015. Raymond eventually sold the flat for $510,000 on 15 March 2020.

Answers

The number of days of ownership is counted from September 15, 2010, until March 15, 2020 (3457 days).CGT= $160,000 x (1638/3457) x 100% = $75,476.49 Raymond Ryans must pay a CGT of $75,476.49.

Raymond Ryans bought an old flat in Melbourne for $350,000 on 15 September 2010 and later let it out to tenants. However, Raymond Ryans chose to occupy the flat from October 16, 2015, owing to personal circumstances.

On March 15, 2020, Raymond eventually sold the apartment for $510,000.The capital gains of the property will be calculated as follows; Capital gains= selling price- purchase price= $510,000-$350,000= $160,000From September 20, 1985, the Australian Tax Office (ATO) has prescribed a set of capital gains taxation (CGT) rules that determine the amount of tax payable when an asset is sold. As a result, Raymond Ryans will be subject to capital gains tax.

According to ATO, all personal use assets acquired for less than $10,000 are exempt from capital gains tax. However, the flat does not fall under this category as it was purchased for $350,000. Hence, Raymond Ryans will be required to pay CGT for the portion of the time when the property was used for personal purposes.

The CGT calculation is performed using the following formulae: CGT= Capital gain x (number of days of personal use/number of days of ownership) x 100%The number of days of personal use is counted from October 16, 2015, until March 15, 2020 (1638 days).The number of days of ownership is counted from September 15, 2010, until March 15, 2020 (3457 days).CGT= $160,000 x (1638/3457) x 100% = $75,476.49Raymond Ryans must pay a CGT of $75,476.49.

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Assume that you are 18 years old and deciding whether to go to college or start working. If you work, you will earn a constant wage WHS through out your career. if you study, you pay tuition for four years and then earn a constant wage WCOL.
(ii) Show the condition under which you choose to study.
(ii)Explain how changes in tuition, in the interest rate and in the wage differential (WCM — WHS) would affect your decision.

Answers

(i) Condition under which you choose to study:

Assuming that the tuition fee is constant, the present value of the future salary, if one chooses to study, should be greater than the present value of the future earnings if one chooses to work. In other words, choosing to study is beneficial if the following condition holds: PV (Future Earnings If Study) > PV (Future Earnings If Work)

(ii) Explanation on how changes in tuition, interest rate, and wage differential would affect your decision:

Changes in tuition: If the tuition fee increases, then the present value of future earnings from study decreases. Thus, a higher tuition fee would discourage someone from choosing to study.

Changes in the interest rate: An increase in the interest rate would cause a decrease in the present value of future earnings, both in the case of studying and working. However, the reduction would be larger in the case of studying than working. Thus, higher interest rates would discourage someone from studying.

Changes in the wage differential (WCM — WHS): A higher wage differential means that the present value of future earnings from work is higher than that from the study. Thus, a higher wage differential would discourage someone from studying. However, if the wage differential were to decrease to the point where the present value of future earnings from study is higher than that from work, then studying would be more attractive.

Choosing whether to study or work is one of the significant decisions an individual needs to make. While both choices have their benefits, they are unique in their ways. In this case, if someone chooses to work, they will earn a constant wage WHS throughout their career. On the other hand, if they choose to study, they will pay tuition for four years and then earn a constant wage WCOL.

For an 18-year-old, choosing to study would be a better option if PV (Future Earnings If Study) > PV (Future Earnings If Work). In other words, studying is advantageous if the present value of the future salary is greater than the present value of future earnings if they work. Therefore, the condition under which someone should choose to study is when the present value of the future salary from studying is more significant than the future earnings from work. Therefore, if the tuition fee increases, then the present value of future earnings from studying decreases. Consequently, higher tuition fees would discourage someone from choosing to study.

A change in the interest rate would affect the present value of future earnings for both studying and working. An increase in the interest rate would cause a decrease in the present value of future earnings. However, the reduction would be higher for studying than working. Thus, higher interest rates would discourage someone from studying.

A higher wage differential implies that the present value of future earnings from work is more significant than that from study. Thus, a higher wage differential would discourage someone from choosing to study. However, if the wage differential were to decrease to the point where the present value of future earnings from study is higher than that from work, then studying would be more attractive.

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Horton Stores exchanged land and cash of $5,200 for similar land. The book value and the fair value of the land were $90,000 and $101,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) on exchange of assets in the amounts of: Land Gain/(loss) a. $106,600 $ 0 b. $106,600 $11,400 C. $ 95,200 $ 0 d. $ 95,200 $11,400 O O O O Option A Option B Option C Option D

Answers

Horton Stores would record a gain of $106,600 and recognize the new land acquired at a value of $11,400. When exchanging assets, the general rule is to record the new asset received at its fair value.

In this case, the fair value of the land received is $101,400. However, the exchange has commercial substance, meaning that the future cash flows of the company will be affected by the transaction. To determine the gain or loss on the exchange, the book value of the old asset needs to be compared to the fair value of the new asset. The book value of the old land is given as $90,000. Since the fair value of the new land is higher, there is a gain on the exchange. The gain is calculated as the difference between the fair value of the new land and the book value of the old land: $101,400 - $90,000 = $11,400.

In addition to recording the gain, the new land received is recognized on the books at its fair value, which is $101,400. Therefore, the entries made by Horton Stores would be to debit Land-New for $101,400 and credit Gain on Exchange of Assets for $106,600.

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The following questions relate to pension/retirement plans: • Identify by name and define the two broad types of employer-provided pension/retirement plans. Then, describe how they work. • Describe the advantages and disadvantages of each type both from the perspective of employers and employees. . What is the trend regarding which type of plan is most likely to be offered by organizations, and explain the reasons why.

Answers

The two broad types of employer-provided pension/retirement plans are defined benefit (DB) plans and defined contribution (DC) plans.

Defined Benefit (DB) Plans:

How they work: In a DB plan, the employer guarantees a specific retirement benefit to employees based on a predetermined formula. The formula typically considers factors such as the employee's salary history, years of service, and age. The employer is responsible for funding the plan and assumes the investment risk. At retirement, employees receive a regular pension payment based on the predetermined benefit formula.

Advantages and disadvantages:

Advantages for employers: Employers have control over investment decisions, and employees bear no investment risk. DB plans can help attract and retain employees and provide a predictable retirement income for retirees.

Disadvantages for employers: DB plans can be costly for employers to fund, especially if investment returns are lower than expected. Employers also bear the financial risk if the plan's assets do not generate sufficient returns to cover the promised benefits.

Advantages for employees: Employees receive a guaranteed retirement benefit based on the predetermined formula. DB plans provide financial security and a steady stream of income throughout retirement.

Disadvantages for employees: Employees have limited control over their retirement funds and are dependent on their employer's ability to fund the plan. Changing jobs may result in reduced benefits if the new employer does not offer a comparable DB plan.

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Financial ratios are essential to provide an accurate valuation
of a firm. Select a publicly traded firm of your choice. Select one
ratio each in the areas of (a) performance, (b) activity, (c)
financ

Answers

I'll provide an example using Apple Inc., a publicly traded firm. Here are three financial ratios from different areas to evaluate the company's performance, activity, and financial leverage:

(a) Performance Ratio: Return on Equity (ROE)

ROE measures a company's profitability by comparing its net income to shareholders' equity. For Apple, the ROE can demonstrate its ability to generate profits relative to the shareholders' investment. A higher ROE indicates better performance.

(b) Activity Ratio: Inventory Turnover Ratio

The inventory turnover ratio shows how efficiently a company manages its inventory. For Apple, this ratio can assess how quickly the company sells its products. A higher inventory turnover ratio suggests effective inventory management and faster sales.

(c) Financial Leverage Ratio: Debt-to-Equity Ratio

The debt-to-equity ratio assesses a company's financial leverage by comparing its total debt to shareholders' equity. This ratio helps evaluate the risk associated with a firm's capital structure. A lower debt-to-equity ratio indicates lower financial risk.

By analyzing these ratios, investors and analysts can gain insights into Apple's performance, activity efficiency, and financial leverage. However, it's important to consider these ratios in conjunction with other factors and industry benchmarks to obtain a comprehensive evaluation of the firm's financial health.

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The shareholders’ equity accounts of Bramble Inc. have the following balances on December 31, 2020:
Common shares, 440,000 shares issued and outstanding $ 14,960,000
Contributed surplus 800,000
Retained earnings 42,600,000
Common shares are currently trading on the Toronto Stock Exchange at $67.
A stock dividend of 5% is declared and issued at the fair value of the shares. Prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(To record declaration of stock dividend)
(To record distribution of stock dividend)
eTextbook and Media
List of Accounts
A stock dividend of 100% is declared and issued at the fair value of the shares. Prepare the appropriate journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(To record declaration of stock dividend)
(To record distribution of stock dividend)
A 2–for–1 stock split is declared and issued. Prepare the appropriate journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit

Answers

There are journal entries that are to be prepared to address the stock-related transactions for Bramble Inc.

1. For a 5% stock dividend declared and issued at fair value:

  - Debit: Stock Dividends (440,000 shares * $67 * 5%)

  - Credit: Common Shares Dividend Distributable (440,000 shares * $67 * 5%)

2. For the distribution of the 5% stock dividend:

  - Debit: Common Shares Dividend Distributable (440,000 shares * $67 * 5%)

  - Credit: Common Shares (440,000 shares * $67 * 5%)

3. For a 100% stock dividend declared and issued at fair value:

  - Debit: Stock Dividends (440,000 shares * $67 * 100%)

  - Credit: Common Shares Dividend Distributable (440,000 shares * $67 * 100%)

4. For the distribution of the 100% stock dividend:

  - Debit: Common Shares Dividend Distributable (440,000 shares * $67 * 100%)

  - Credit: Common Shares (440,000 shares * $67 * 100%)

5. For a 2-for-1 stock split declared and issued:

  - No entry is required as a stock split does not involve any changes in the accounts.

1. For a 5% stock dividend, the company declares and issues additional shares equivalent to 5% of the outstanding common shares. The Stock Dividends account is debited, reflecting the value of the new shares, and the Common Shares Dividend Distributable account is credited to record the obligation to distribute the dividend.

2. Once the 5% stock dividend is distributed, the Common Shares Dividend Distributable account is debited to remove the obligation, and the Common Shares account is credited to reflect the addition of the new shares.

3. For a 100% stock dividend, the company declares and issues additional shares equivalent to 100% of the outstanding common shares. The Stock Dividends account is debited, reflecting the value of the new shares, and the Common Shares Dividend Distributable account is credited to record the obligation to distribute the dividend.

4. Once the 100% stock dividend is distributed, the Common Shares Dividend Distributable account is debited to remove the obligation, and the Common Shares account is credited to reflect the addition of the new shares.

5. In a 2-for-1 stock split, the number of outstanding shares is doubled, but there is no change in the total value of the shares or shareholders' equity. Therefore, no journal entry is required as it is a mere change in the presentation of shares.

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What are the core values of Calabria Company Limited (Maker of
Novellino Wines)?

Answers

The core values of Calabria Company Limited, the maker of Novellino Wines, are centered around three key principles: quality, family, and sustainability.

Quality is a fundamental core value of Calabria Company Limited. They strive to produce wines of the highest quality, consistently delivering exceptional taste and experience to their customers. Quality is upheld throughout every stage of the winemaking process, from vineyard management to bottling, ensuring that their products meet or exceed industry standards.

Family is another important core value of the company. As a family-owned and operated business, Calabria Company Limited values the importance of strong family ties and the sense of unity it brings. Their family-oriented approach extends to their employees, customers, and community, fostering a culture of respect, collaboration, and support.

Sustainability is a core value that underpins Calabria Company Limited's commitment to environmental and social responsibility. They prioritize sustainable practices in their vineyards and winemaking processes, aiming to minimize their ecological footprint. Additionally, they engage in social initiatives to give back to the community and contribute to its well-being.

Through their core values of quality, family, and sustainability, Calabria Company Limited strives to create exceptional wines while upholding a sense of unity, responsibility, and respect for the environment and community.

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Amal received a Form 1099-DIV with a capital gain distribution of $250. Amal also received a Form 1099-B from the sale of 240 shares of AMS stock purchased for $3,700 plus a $36 commission fee on February 22, 2020. The net proceeds of the stock sale were $3,340 (the commission fee was $22) and the trade date was February 22, 2021. What are the amount and nature of Amal's gain (loss) on these transactions? Multiple Choice $374 short-term loss and $250 long-term galn $374 long-term loss and $250 short-term gain $396 long-term loss and $250 short-term gain $396 short-term loss and $250 long-term gain

Answers

The correct answer is $374 long-term loss and $250 long-term gain. The proceeds are less than the cost basis, Amal incurred a loss of $374 on the stock sale.

The amount and nature of Amal's gain (loss) on these transactions can be determined as follows:

Capital Gain Distribution:

Amal received a Form 1099-DIV with a capital gain distribution of $250. This capital gain distribution is considered a long-term gain since it is reported on Form 1099-DIV. Therefore, Amal has a $250 long-term capital gain.

Stock Sale:

Amal sold 240 shares of AMS stock. To calculate the gain or loss from the stock sale, we need to compare the proceeds from the sale to the cost basis.

Cost basis:

Purchase price of 240 shares of AMS stock: $3,700

Commission fee for the purchase: $36

Total cost basis: $3,700 + $36 = $3,736

Proceeds from the stock sale:

Net proceeds of the stock sale: $3,340

Commission fee for the sale: $22

Total proceeds from the sale: $3,340 + $22 = $3,362

To determine the gain or loss, we subtract the cost basis from the proceeds:

Gain (Loss) = Proceeds - Cost basis

= $3,362 - $3,736

= -$374

Since the proceeds are less than the cost basis, Amal incurred a loss of $374 on the stock sale.

In summary, the nature and amount of Amal's gain (loss) on these transactions are:

$374 long-term loss from the stock sale and $250 long-term gain from the capital gain distribution. Therefore, the correct answer is $374 long-term loss and $250 long-term gain.

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Which of the various reasons for resisting change do you
believe to be the most difficult to deal with (as a manager)? What
are your "top three" in this regard?

Answers

As a manager, the top three reasons for resisting change are:

1. Fear of the unknown

2. Loss of control and

3. Comfort with the status quo

Let's discuss each of these reasons in detail:

1. Fear of the unknown: Fear of the unknown is the most common reason for resisting change. People fear what they don't know or understand. Employees might worry that they lack the necessary skills to cope with the changes that may occur in their jobs, leading to anxiety and a lack of motivation.

2. Loss of control: The second reason for resisting change is the loss of control. Change can lead to a shift in power dynamics, which can be difficult for some people to accept. This loss of control can make employees feel insecure and even threatened, which can lead to resistance to the changes being implemented.

3. Comfort with the status quo: Some employees might be content with the way things are, and thus see no need for change. Comfort with the status quo is a significant obstacle to change management as it implies that there is no perceived problem with the current situation. This can lead to resistance to any changes that might be implemented.

It is important for managers to understand that change can be difficult, and that resistance is natural. However, by understanding the reasons behind resistance, managers can take steps to address these concerns and make the change process smoother.

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Question 10 (5 points) Explain the outcome and legal principles derived by the following case law a. Macura V Northern Assurance Co. Ltd. (1925) b. Tiep Thi To V Australian Associated Motor Insurers L

Answers

Macura v Northern Assurance Co Ltd (1925) is a famous case law that focuses on the concept of "reasonable apprehension of physical harm." The case involves the circumstances under which the driver of a vehicle is regarded to have acted in the "reasonable apprehension of physical harm" and how that may be a reasonable explanation for the driver's actions.

In this case, the insured's policy's conditions necessitated the insurer's authorization before the insured used the vehicle to take any passenger other than those specified in the policy. The insured agreed to bring a passenger home who was not included in the list of permitted passengers, without seeking permission. When the vehicle struck a wall and killed the passenger, the insurer declined coverage. However, the court held that the insured had acted in reasonable apprehension of physical harm, and the insurer's refusal to cover the policy was deemed illegal. The court observed that reasonable apprehension of physical harm was a recognized legal principle and that the insured had acted in a manner that could be considered reasonable in the situation. In such instances, the insured's use of the car is deemed outside the policy's restrictions, and the insurer is bound to provide coverage.

Tiep Thi To v Australian Associated Motor Insurers Ltd (1989) is a well-known case that resulted in the creation of the "grey areas" doctrine. The key issue, in this case, was whether the plaintiff was a passenger or a member of the public for insurance purposes. A passenger is defined as a person carried in a car, while a member of the public is defined as any other individual who may be impacted by a car in a public location. The plaintiff was standing between two parked cars when she was struck by the defendant's car. The defendant was the passenger in a vehicle that had been parked in the same street as the plaintiff. The court held that the plaintiff was not a passenger in the defendant's vehicle and, therefore, not eligible for coverage under the defendant's policy. As a result of the case, the "grey areas" doctrine was developed, which determines whether a person is a passenger or a member of the public. The doctrine considers the facts of each case and distinguishes between an individual who is closely linked with a car and one who is not. In conclusion, the Macura v Northern Assurance Co Ltd case law outcome and the legal principle derived from it concerned the notion of reasonable apprehension of physical harm. On the other hand, Tiep Thi To v Australian Associated Motor Insurers Ltd case law outcome created the "grey areas" doctrine.

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a. Macura v Northern Assurance Co. Ltd. (1925):This case is concerned with the need for a party seeking indemnity to give notice to the indemnifier of any loss or liability.

Facts: Mr. Macura had a policy of insurance with Northern Assurance Co. Ltd. covering damage to his car. He got into an accident on the road as a result of someone else's negligence. He didn't inform Northern Assurance of the incident for 11 months because he thought the other driver's insurance would cover the damages. Later he claimed for the loss under the Northern Assurance policy, but the claim was refused because he had not informed them of the incident. Legal principles: There are two legal principles established by this case :Assurance companies are only required to indemnify an insured against losses that they are aware of. If an insured doesn't inform their insurer of an incident that might give rise to a claim under their policy, the insurer is not liable to indemnify them. b. Tiep Thi To v Australian Associated Motor Insurers: This case is concerned with the meaning of "use" of a motor vehicle for the purposes of the Motor Vehicles (Third Party Insurance) Act. Facts: Mr To had an accident in his car while it was parked on a public highway. His car rolled down the hill and collided with another vehicle. Legal principles: The legal principle established by this case is that: In order to fall within the provisions of the Motor Vehicles (Third Party Insurance) Act, a motor vehicle must be "used" on a public highway, and this must be in connection with the user's legal rights as a road user. A vehicle parked on a public highway is not considered to be "used" for the purposes of the Act.

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The master budget of Knope Inc. shows that the planned activity level for next year is expected to be 25,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labor................................................. $720,000
Machine supplies.............................................180,000
Indirect materials.............................................210,000
Depreciation on factory building..................150,000
Total manufacturing overhead.................$1,260,000
A flexible budget for a level of activity of 30,000 machine hours would show total manufacturing overhead costs of
Group of answer choices
$1,260,000
$1,512,000
$1,362,000
$1,482,000

Answers

The total manufacturing overhead costs for a level of activity of 30,000 machine hours would be $2,760,000.

To determine the total manufacturing overhead costs for a level of activity of 30,000 machine hours, we can use the concept of a flexible budget.

The flexible budget adjusts the planned costs based on the actual level of activity. We can calculate the flexible budget amount by multiplying the variable costs per unit of activity by the actual level of activity and adding the fixed costs.

Given:

Planned activity level: 25,000 machine hours

Total manufacturing overhead at planned activity level: $1,260,000

Variable manufacturing overhead costs are expected to change in proportion to the level of activity. Therefore, the variable overhead cost per machine hour can be calculated as:

Variable overhead cost per machine hour = Total variable manufacturing overhead / Planned activity level

Variable overhead cost per machine hour = $1,260,000 / 25,000

Variable overhead cost per machine hour = $50

To calculate the flexible budget for 30,000 machine hours, we multiply the variable overhead cost per machine hour by the actual level of activity and add the fixed costs:

Flexible budget for 30,000 machine hours = (Variable overhead cost per machine hour * Actual activity level) + Fixed costs

Flexible budget for 30,000 machine hours = ($50 * 30,000) + $1,260,000

Flexible budget for 30,000 machine hours = $1,500,000 + $1,260,000

Flexible budget for 30,000 machine hours = $2,760,000

Therefore, the total manufacturing overhead costs for a level of activity of 30,000 machine hours would be $2,760,000.

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Please file in all Fields Consider Disney's strategies for streaming movies and sports (with ESPN). Disney's subscribers are of three types - 1) Families with young children who really value Disney movies, but place a lower value on ESPN; let's call this Group F; and 2) Individuals who place a higher value on ESPN, let's call them Group S; and 3) Individuals who place the same value on both types of entertainment; let's call then Group M. The following table gives the values that each group places on each type of content: Disney does not have any marginal cost of streaming its movies to its subscribers, however, there is a cost for producing ESPN content, MC = c. Allocative efficiency from getting S group to see Disney and technical inefficiency from getting F group First best efficient should be that S watches both and F watches only Disney. But unbundled eq is S watches only ESPN and F watches only Disney. Consumer Group Value for Disney Movies $13 Group F Value for ESPN $1 $10 $4 Group S Group M $7 $7 Assume that $4 ≤ c < $7, so that it is not technically efficient to include Group F consumers in the ESPN subscription but it is efficient to include Group S and Group M. a. Describe the First-best efficient outcome. Which consumer groups should get the Disney subscription and which consumer groups should get the ESPN subscription? b. If Disney were to allow separate subscriptions for each, how would it price each subscription and who would subscribe to which service? The profits from ESPN will be a function of c. Disney Movies Price Quantity Profit $4 3 $7 $13 ESPN Sports Price Profit $4 $7 $10 1 c. What are Disney's profits and what is the consumer surplus for each group and the total surplus. (They will be functions of c.) Group M and Group F buy Movie subscription. Only Group S buys ESPN subscription. π = $24-C, CSF = $6, CSS = $0, CSM = $0, TS = $30 - c. 2 1 Quantity 3 2 d. Now suppose Disney instead offered a bundle with both Disney and ESPN. How would it price its bundle? e. What are Disney's profits, consumer surplus to each group and total surplus. (Again, they will be functions of c.) f. For what values of c is it profitable to bundle the two types of content together? g. For what values of c is it efficient to bundle the two types of content together? h. Explain the trade-off in technical and allocative efficiency from bundling. How is this trade-off affected by the value of c?

Answers

The most efficient way is to bundle the two types of content together, but it will affect technical and allocative efficiency. The value of c affects this trade-off, and for the efficient bundling of the two types of content, c should be less than or equal to $7.

Disney's strategy for streaming movies and sports was to cater to families with young children who place value on Disney movies, individuals who place value on ESPN and individuals who place equal value on both. The three groups are F (Disney movies), S (ESPN), and M (both Disney and ESPN).The first-best efficient outcome is that S group watches both Disney and ESPN and F group watches only Disney. The technical inefficiency arises when F group is added to ESPN subscriptions because the MC of streaming ESPN is higher than the value it holds for the group F consumers. So, the most efficient way is to have two separate subscriptions, one for Disney and one for ESPN. The price of the subscriptions will depend on the cost of MC. If the cost of MC is between $4 and $7, it will be inefficient to have group F in ESPN subscriptions, and Disney will only offer subscriptions for Group S and Group M. Disney profits will be a function of c, and the profit equation will be π = $24 - C. CSS = $0, CSM = $0, and CSF = $6. Total surplus will be TS = $30 - c.Disney's profits, consumer surplus, and total surplus will be a function of c. The most efficient way is to bundle the two types of content together, but it will affect technical and allocative efficiency. The value of c affects this trade-off, and for the efficient bundling of the two types of content, c should be less than or equal to $7.

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hello
could you solve part B please?
(b) Calculate the net assets of Santolina Ltd at the date of acquisition (01 February 2021) and at [ 10 Marks] the reporting date (31 January 2022). Goodwill has been impaired by $ 50,000 at the repor

Answers

By assessing the company's financial statements and considering the impact of the impairment on goodwill, we can determine the net assets at both dates.

At the date of acquisition (01 February 2021), the net assets of Santolina Ltd would include the total value of its assets minus the total value of its liabilities. This calculation should exclude any goodwill impairment since it occurred at a later date. The net assets at the date of acquisition would reflect the financial position of the company without considering the subsequent impairment.

At the reporting date (31 January 2022), the net assets of Santolina Ltd would be calculated by subtracting the total value of liabilities from the total value of assets, including the impact of the goodwill impairment. The impairment of $50,000 would reduce the value of goodwill and consequently impact the net assets of the company at the reporting date.

By analyzing the company's financial statements and taking into account the impairment of goodwill, we can determine the net assets at both the date of acquisition and the reporting date.

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A few years ago, the ISK and Bónus were very similar in size and the chains together had become almost monopolistic in the market. Their cost structure was similar. Bónus had the price policy to always have the lowest price and the ISK was always a little higher. This can be thought of as a consequence of them determining the quantity at the same time, although Bónus has always had a slightly lower price. After some time in the activities of both, the ISK decided to change its pricing policy and reduced its price under Bónus. The new policy significantly increased the amount of ISK sold. Bonus then responded by giving milk. The competition authorities responded to this by fining Bónus hundreds of millions of ISK. for what seemed to have benefited consumers i.e. to receive milk for free.
Any kind of competitive environment (oligopoly model) can be argued to apply to the conditions of Bónus and Króna.
How can a game theory situation be described here and a well-known game in this subject be pointed out? Is the game still or lively?
How is there a risk of consultation here even if the parties never have direct contact?
Why did the government react so harshly by fining Bonus for giving milk? What characterizes Bónus' tactics in reacting to the ISK's competition in this way?

Answers

Game theory can be described as the strategic behavior of the firms that are involved in a market. In the case of Króna and Bónus, a strategic interdependence exists between the two firms, and this can be explained through the game theory situation.

In this situation, a game theory analysis can help explain the dynamics between Bónus and ISK. Game theory is a mathematical framework used to study decision-making and strategic interactions among multiple participants. In this case, the two supermarket chains, Bónus and ISK, are engaged in a competitive environment, specifically an oligopoly.One well-known game that applies to this scenario is the prisoner's dilemma. In the prisoner's dilemma, two individuals have to decide whether to cooperate or betray each other. If both cooperate, they both receive a moderate benefit. However, if one cooperates and the other betrays, the betrayer receives a significant benefit while the cooperator suffers a loss. If both betray, they both receive a moderate but lower benefit compared to cooperation.The game in this scenario can be viewed as an extended version of the prisoner's dilemma. Bónus and ISK are the players, and the decisions they make regarding their pricing policies can be seen as their choices of cooperation or betrayal. Initially, both chains were setting prices at similar levels, and they were both benefiting from shared market dominance. However, when ISK reduced its prices below Bónus, it gained a competitive advantage, leading to increased sales.Bónus responded by giving away free milk, which can be seen as a retaliatory move or a competitive tactic to counter ISK's price reduction. This action can be interpreted as a form of "irrational" behavior in the context of game theory, as it goes against the traditional profit-maximizing strategy. By giving away free milk, Bónus attempted to lure customers back and regain market share.

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Farhad canceled a note issued by Emma (Farhad's niece) that arose in connection with the sale of property. At the time of the cancellation, the note had a basis to Farhad of $184,300, a face amount of $331,740, and a fair market value of $248,805. Presuming that the initial sale by Farhad qualified as an installment sale, how much gain does the cancellation result in for Farhad?

Answers

The cancellation of the note results in a gain of $64,505 for Farhad.

The cancellation of the note results in a gain for Farhad. The amount of gain can be calculated as follows:

Gain = Fair market value of the note - Basis of the note

Given information:

Basis of the note = $184,300

Fair market value of the note = $248,805

Gain = $248,805 - $184,300 = $64,505

Therefore, the cancellation of the note results in a gain of $64,505 for Farhad.

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A lottery ticket has a 99.9% chance of paying zero, and a 0.1% chance of paying $1000. What is the standard deviation of this lottery ticket? none of the choices 999 99,990 500

Answers

Taking the square root of the variance, we get:  Standard Deviation = sqrt(0.001 x 999^2)  Standard Deviation = 3.162 Therefore, the answer is none of the choices given (999, 99,990, 500).

To calculate the standard deviation of the lottery ticket, we need to consider the probabilities and associated payoffs. Let's denote: P(X = 0) = probability of winning zero = 0.999 P(X = $1000) = probability of winning $1000 = 0.001 Let's calculate the expected value (mean) first: E(X) = (0 * P(X = 0)) + ($1000 * P(X = $1000)) E(X) = (0 * 0.999) + ($1000 * 0.001) E(X) = $1

The standard deviation can be calculated using the formula: σ = sqrt((∑((X - E(X))^2) * P(X))) Let's calculate the standard deviation: σ = sqrt(((0 - $1)^2 * P(X = 0)) + (($1000 - $1)^2 * P(X = $1000))) σ = sqrt(((0 - $1)^2 * 0.999) + (($1000 - $1)^2 * 0.001)) σ = sqrt((1^2 * 0.999) + (999^2 * 0.001)) σ = sqrt(0.999 + 998001 * 0.001) σ = sqrt(0.999 + 998.001) σ ≈ sqrt(999.000) σ ≈ 31.62 Therefore, the standard deviation of this lottery ticket is approximately 31.62.

None of the provided answer choices (999, 99,990, 500) match the calculated standard deviation. The formula to calculate the standard deviation is the square root of the variance. To calculate the variance, we need to first calculate the expected value (mean) of the lottery ticket.
The expected value of the lottery ticket can be calculated as follows:  Expected Value = (0.999 x 0) + (0.001 x 1000)
Expected Value = 1  Now, we can calculate the variance:  Variance = (0.999 x (0-1)^2) + (0.001 x (1000-1)^2)  Variance = 0.001 x 999^2

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Zissou Corp's budgeted manufacturing costs for 60,000 model boats are:
Fixed manufacturing costs......... $65,000 per month
Variable manufacturing costs.......... $13.00 per boat
Zissou produced 50,000 boats during March. How much is the flexible budget for total manufacturing costs for March?
Group of answer choices
$845,000
$700,000
$650,000
$715,000

Answers

The flexible budget for total manufacturing costs for March is $715,000. Therefore, the correct answer is option D) $715,000.

The fixed manufacturing costs do not change with the level of production, so they will remain constant at $65,000 per month. The variable manufacturing costs will depend on the number of boats produced.

Variable manufacturing costs per boat = $13.00

Number of boats produced in March = 50,000

Total variable manufacturing costs for March = Variable cost per unit x Number of units produced

= $13.00 x 50,000

= $650,000

Therefore, the total manufacturing costs for March (fixed + variable) under the flexible budget are:

= Fixed manufacturing costs + Total variable manufacturing costs

= $65,000 + $650,000

= $715,000

So, the flexible budget for total manufacturing costs for March is $715,000. Therefore, the correct answer is option D) $715,000.

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German sport scientist, Hans Lenk did a study regarding.. a. Team satisfaction b. Team competence c. Social team cohesion
d. Effective group leadership
Exercise psychology is defined as;
a. Corporate fitness, wellness, and preventive and rehabilitative health programs b. the study of psychological factors underlying participation and adherence in physical activity programs c. movement produced by muscles that results in expending energy d. when exercise reflects planned, organized and repetitive movements intended to improve or maintain physical fitness

Answers

German sport scientist Hans Lenk conducted a study on social team cohesion. Exercise psychology, on the other hand, is defined as the study of psychological factors underlying participation and adherence in physical activity programs.

Hans Lenk's study focused on social team cohesion, which refers to the extent to which members of a team work together and support one another towards common goals. It involves aspects such as communication, trust, and cooperation among team members. By examining social team cohesion, Lenk aimed to understand how it influences team dynamics, performance, and satisfaction. Exercise psychology, on the other hand, is a field of study that explores the psychological factors that impact individuals' participation in physical activity programs and their adherence to exercise routines. It encompasses a wide range of topics, including motivation, goal-setting, self-efficacy, and the psychological benefits of exercise. Exercise psychology seeks to understand the psychological processes underlying exercise behavior and develop strategies to promote physical activity engagement and adherence. In summary, Hans Lenk's study focused on social team cohesion, while exercise psychology is concerned with understanding the psychological factors influencing individuals' participation and adherence in physical activity programs.

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Thornton Corporation incurs the following annual fixed costs: Item Depreciation Officers' salaries Long-term lease Property taxes Cost $ 61,000 180,000 95,000 10,000 Required Determine the total fixed cost per unit of production, assuming that Thornton produces 6,000, 6,500, or 7,000 units. (Round your answers to 2 decimal places.) 6,000 6,500 7,000 Units Produced Fixed cost per unit

Answers

The fixed cost per unit of production is $57.67 when 6,000 units are produced, $53.23 when 6,500 units are produced, and $49.43 when 7,000 units are produced.

Fixed costs refer to the type of costs that don't vary according to production levels. On the other hand, variable costs change with the production volume. Fixed costs for a company would be costs such as property rent, property taxes, and insurance that would remain constant over a production period.

Thornton Corporation Inc. incurs the following annual fixed costs:

Depreciation - $ 61,000

Officers' salaries - $ 180,000

Long-term lease - $ 95,000

Property taxes - $ 10,000

Fixed cost per unit can be calculated as the total fixed cost divided by the number of units produced.

To determine the total fixed cost per unit of production, assuming that Thornton produces 6,000, 6,500, or 7,000 units, we need to divide the total fixed cost by the respective number of units produced.

Total fixed cost = Depreciation + Officers' salaries + Long-term lease + Property taxes= $ 61,000 + $ 180,000 + $ 95,000 + $ 10,000= $ 346,000

Fixed cost per unit when 6,000 units are produced = Total fixed cost / Number of units produced= $ 346,000 / 6,000= $ 57.67

Fixed cost per unit when 6,500 units are produced = Total fixed cost / Number of units produced= $ 346,000 / 6,500= $ 53.23

Fixed cost per unit when 7,000 units are produced = Total fixed cost / Number of units produced= $ 346,000 / 7,000= $ 49.43

Thus, the fixed cost per unit of production is $57.67 when 6,000 units are produced, $53.23 when 6,500 units are produced, and $49.43 when 7,000 units are produced.

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12. A change in a good's own price will lead to a change in the quantity supplied of a good (movement along the supply curve). Illustrate a change in quantity supplied graphically. 13. A change in: (1

Answers

A change in a good's own price leads to a change in the quantity supplied of that good, resulting in a movement along the supply curve. Graphically, this change is represented by a shift from one point to another point along the supply curve.

To illustrate a change in quantity supplied graphically, we can use a supply curve for a specific good. The supply curve shows the relationship between the price of the good and the quantity supplied at each price level. The supply curve slopes upward from left to right, indicating that as the price of the good increases, the quantity supplied also increases, and vice versa.

When there is a change in the price of the good, it causes a movement along the supply curve. If the price of the good increases, there will be an increase in the quantity supplied, and the point on the supply curve will shift to the right.

Conversely, if the price of the good decreases, there will be a decrease in the quantity supplied, and the point on the supply curve will shift to the left.

By observing the movement along the supply curve, we can visually depict how changes in price directly affect the quantity supplied of a good. This graphical representation helps to illustrate the positive relationship between price and quantity supplied and demonstrates the impact of price changes on producer behavior.

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Measuring performance as part of the budgeting
process has been an evolving effort. Primary focus to date has been
on activity measures (how many things you do and if they are
increasing). Discuss how

Answers

Measuring performance as part of the budgeting process has been an evolving effort, with a primary focus on activity measures such as the number of things done and whether they are increasing.

Activity measures are useful for tracking progress towards specific goals, such as the number of patients seen by a doctor in a day. However, they do not necessarily indicate whether the activity is achieving the desired outcome, such as improving the patient's health. Outcome measures, on the other hand, provide a more comprehensive view of the effectiveness of the activity.

For example, a hospital may track the number of surgeries performed, but an outcome measure would be the percentage of patients who recovered fully after surgery. This measure provides a better understanding of the hospital's performance in terms of the quality of care provided. However, in recent years, there has been a shift towards outcome measures, which focus on the results or impact of the activities.

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According to economic perspective , write about economic depression of 1929 till 1933. Write in Bullet Points . Dont write in paragaph or Notes

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."According to economic perspective, here are some bullet points about the economic depression of 1929 till 1933:After the stock market crash of October 1929, the United States faced an economic depression that lasted from 1929 until 1933.

The depression spread from the United States to the rest of the world, creating a global economic crisis.Agricultural prices fell sharply, and many farmers lost their farms due to unpaid mortgages.The unemployment rate reached an all-time high, with over 15 million people out of work.Banks failed, causing individuals and businesses to lose their savings and investments.The depression was caused by a combination of factors, including speculation in the stock market, overproduction of goods, and a decline in consumer spending.Franklin D. Roosevelt's New Deal policies helped to alleviate some of the effects of the depression, but it wasn't until World War II that the economy fully recovered.

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