a. Distinguish between divestiture, greenfield and concession investment in transport, provide relevant examples in the context of Jamaica.
DivestitureDivestiture is a process where a company sells, transfers, or spins off a division or subsidiary to focus on its core business.
Divestiture is an exit strategy that a company uses to cope with declining profits, unfavorable market conditions, or to streamline operations. A prime example of divestiture in the transport sector is the Jamaica government's divestiture of Air Jamaica in 2004 to Caribbean Airlines.GreenfieldGreenfield investment is a process where a company establishes a new business or expands an existing one in a foreign country. A Greenfield investment can be a wholly-owned subsidiary or a joint venture with a local company. A prime example of greenfield investment in Jamaica is the development of the Caymanas Economic Zone.Concession InvestmentConcession investment is a contractual agreement between the government and a private company that grants the company exclusive rights to build, operate, and maintain a public infrastructure asset. In return, the company makes an upfront payment and/or revenue-sharing arrangement with the government.
A prime example of concession investment in Jamaica is the Kingston Container Terminal operated by Kingston Freeport Terminal Limited (KFTL).b. The private sector is considering a long-term concessionary agreement with the government to operate and expand the Port of Kingston. Briefly explain FOUR possible environmental impact that this expansion could have on the eco-system Possible Environmental Impacts that this expansion could have on the ecosystem:Increased air and water pollution from increased industrial activity.Loss of habitat and destruction of mangrove swamps and wetlands.Land erosion and sedimentation from the dredging of the harbor and increased ship traffic.The displacement of marine life and disruption of fish breeding areas.c. Discuss, using examples FOUR ways that the Jamaican government has attempted to provide first-world transportation for its citizens over the last ten years. (12 marks)The Jamaican government has attempted to provide first-world transportation for its citizens over the last ten years in the following ways:Improvement of road infrastructure: The government has invested in the construction of new roads, bridges, and highways, and the repair of old ones.
For example, the Mandela Highway Improvement Project, which expanded the four-lane highway from Kingston to Spanish Town to six lanes and the Mount Rosser Bypass project, which cut travel time between Kingston and Ocho Rios by 30 minutes.Public Transportation: The government has introduced several new public transportation initiatives, such as the Jamaica Urban Transit Company (JUTC), Montego Bay Metro, and the Jamaica Railway Corporation (JRC). JUTC, for example, has a fleet of modern buses that provide scheduled bus services throughout the Kingston Metropolitan Area. Montego Bay Metro operates a BRT system, while the JRC is developing a modern passenger train service.Road safety: The government has implemented several road safety initiatives, including increased traffic law enforcement, public education, and the upgrading of road signs and traffic signals. For example, the Road Safety Unit of the Ministry of Transport and Mining has introduced the National Road Safety Council, which is responsible for reducing road accidents and fatalities.Rail transportation: The Jamaican government has reintroduced the passenger rail service with the introduction of the JRC, which operates between Spanish Town and Linstead. The government also plans to expand the rail network to other parts of the country, such as Montego Bay and Mandeville.
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auditing class
SELECT ONE
The review of audit working papers by the audit partner is
normally completed:
a. Immediately as each working paper is completed
b. Prior to year-end
c. After issuance of th
It is necessary to wait until the audit is complete and the auditor’s report has been issued before the audit partner can review the working papers. Option(A) is correct
Audit working papers are documents prepared by auditors and kept on file as evidence to support their audit opinion. Audit partners review these papers to ensure that all necessary procedures have been conducted, standards have been followed, and that the evidence is sufficient to support their opinion. Given the importance of this task, it is important that the review of audit working papers by the audit partner is done thoroughly and thoughtfully.The review of audit working papers by the audit partner is normally completed after the issuance of the auditor’s report. This is because the audit partner is responsible for ensuring that the audit has been conducted in accordance with auditing standards, that all necessary procedures have been performed, and that the evidence is sufficient to support the audit opinion. As a result, it is necessary to wait until the audit is complete and the auditor’s report has been issued before the audit partner can review the working papers.
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Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.g. 5,275.) Present value of the lease payments $ 37429 eTextbook and Media Save for Later Attempts: 1 of 2 used Submit Answer Using multiple attempts will impact your score. 20% score reduction after attempt 1 Euren 24 PENS BUR MacBook Pro #tv · Question 3 of 5 0.53/2 On December 31, 2019, Tamarisk Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Tamarisk to make annual payments of $8,978 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Tamarisk uses the straight-line method of depreciation for all of its plant assets. Tamarisk's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. Click here to view factor tables. (a) Your answer is correct. What type of lease is this?
Based on the information provided, this lease can be classified as a finance lease.
A finance lease is a lease arrangement where the lessee effectively assumes the risks and rewards of ownership of the leased asset. In this case, Tamarisk Corporation signed a 5-year lease, is responsible for making annual payments, and the machine reverts back to the lessor at the end of the lease term. So, Tamarisk Corporation is making annual payments for the machine, and the lease term covers a significant portion of the machine's useful life. Additionally, there is an unguaranteed residual value, and the machine reverts back to the lessor at the end of the lease term. These factors indicate that Tamarisk has effectively taken on the risks and rewards associated with ownership, making it a finance lease.
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example of a vertical merger? a) A Mexican-food restaurant purchasing a farm that grows tomatoes, which will be used in its salsas. b) An advertising firm in downtown Los Angeles merging with the firms located on the floors directly above and below them so that it would be easier to communicate with them. c) A firm merging with their closest competitors in an attempt to limit its competition. d) All of the above. 4. The phrase "the Great Leap Forward" refers to a) the first Chinese five-year plan b) the initial years of forced industrialization in the USSR. c) the Chinese attempt to promote economic development through the dominance of ideology in the late 1950s. d) the break between Tito and Stalin in 1948. e) none of the above. -industry 5. Japan uses severe tariffs to protect mostly the - a) car. b) fish. c) domestic financial. d) rice. e) wheat
Vertical mergers refer to mergers in which companies operating in different stages of the same supply chain unite into a single entity. They allow companies to produce goods and services that can generate benefits that they would not have been able to obtain if they had not combined.
An example of a vertical merger is a Mexican food restaurant purchasing a farm that grows tomatoes, which will be used in its salsas.
A horizontal merger occurs when companies are operating at the same stage of the production process or in the same industry. The aim is to improve the market share of the firms involved and to reduce the level of competition. A firm merging with their closest competitors in an attempt to limit its competition is an example of a horizontal merger.
1. A) A Mexican-food restaurant purchasing a farm that grows tomatoes, which will be used in its salsas.
A vertical merger takes place when two companies at different stages in the supply chain combine. In this example, the restaurant is at the end of the supply chain, and the farm is in the beginning stage.
2. C) the Chinese attempt to promote economic development through the dominance of ideology in the late 1950s. The Great Leap Forward was a plan that was designed to transform China's economy from a largely agrarian one to a modern industrial society within a short period. The strategy involved setting up thousands of small-scale industries that could be operated in rural areas.
3. D) rice. Japan employs harsh tariffs to protect its domestic rice market. The Japanese government has, for the most part, kept rice imports to a minimum by imposing strict tariffs on them. Additionally, the government has implemented a variety of policies to encourage the domestic rice sector's competitiveness, such as providing subsidies to farmers and maintaining a system of price supports.
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The answer is $80. Why it is $80? please show step by step how to get there . A video streaming service provider estimates its average customer's demand per year is Q = 8 – 2P, and it knows the marginal cost of each download is $0.50. How much should the provider charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy? Multiple Choice $12.25 O $10.25 O $9 $10.50
To determine the optimal two-part pricing strategy, we need to maximize the provider's profit. The provider aims to extract the entire consumer surplus, which means charging customers their maximum willingness to pay.
Step 1: Find the demand equation:
Given the average customer's demand per year as Q = 8 - 2P, where Q represents the quantity demanded and P represents the price.
Step 2: Calculate the marginal revenue (MR):
MR is the change in total revenue resulting from selling one additional unit. In this case, MR is equal to the price since the demand equation is linear.
MR = P
Step 3: Calculate the total revenue (TR):
TR is the product of price (P) and quantity demanded (Q).
TR = P * Q
Step 4: Calculate the profit equation:
Profit (π) is equal to total revenue (TR) minus total cost (TC).
TC = Marginal Cost (MC) * Q
π = TR - TC
Step 5: Set up the optimization problem:
Maximize profit (π) with respect to price (P) while considering the demand equation, marginal cost, and total revenue.
Maximize: π = (P * Q) - (MC * Q)
Step 6: Substitute the demand equation into the profit equation:
π = (P * (8 - 2P)) - (0.50 * (8 - 2P))
Simplify: π = 8P - 2P^2 - 4 + P
Step 7: Differentiate the profit equation with respect to price (P) and set it equal to zero to find the maximum profit:
dπ/dP = 8 - 4P - 1 = 0
Simplify: 4P = 7
Solve for P: P = 7/4 = $1.75
Step 8: Calculate the optimal annual membership price:
Since the question asks for the annual membership price, we need to multiply the price (P) by the quantity demanded (Q) per year.
Q = 8 - 2P
Q = 8 - 2(1.75)
Q = 8 - 3.5
Q = 4.5
Annual membership price = P * Q
Annual membership price = 1.75 * 4.5
Annual membership price = $7.875
Rounding to the nearest cent, the optimal annual membership price is approximately $7.88.
None of the provided options match the calculated answer, so it seems there might be an error in the answer choices or the calculation.
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Briefly identify and state the significance of each of the following to the history of economy thought: Jevons, final degree of utility. Menger, Austrian school.
Jevons: William Stanley Jevons was an influential economist and mathematician in the 19th century. One of his significant contributions to the history of economic thought is his concept of the "final degree of utility."
Jevons believed that individuals make decisions based on the marginal utility, or the additional satisfaction, they derive from consuming an additional unit of a good or service. He argued that the satisfaction obtained from each additional unit of a good diminishes, and the final unit consumed provides the least utility or satisfaction. This concept of diminishing marginal utility laid the foundation for modern consumer theory and has been instrumental in shaping how economists understand individual preferences and decision-making.
Menger and the Austrian School: Carl Menger was one of the founding members of the Austrian School of economics, which emerged in the late 19th century. The Austrian School challenged the prevailing economic theories of the time, particularly the classical economics of Adam Smith and the emerging marginalist school. Menger and other Austrian economists emphasized the subjective nature of value and stressed the role of individual decision-making, entrepreneurship, and market processes in shaping the economy. They argued that economic analysis should focus on individual human action and the role of market forces, rather than solely relying on aggregate measures like total production or income. The Austrian School has made significant contributions to various areas of economic thought, including the study of entrepreneurship, market processes, and the role of institutions in economic development.
Both Jevons and the Austrian School, through their respective contributions, have influenced the development of economic theories and have provided valuable insights into how individuals make choices, allocate resources, and understand economic phenomena
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Easy One regressed Consumption expenditure(C) on disposable income(Y) for a sample of 30 observations and obtained the following estimates(the figures in the parentheses are t-ratios) Ĉ=1480.0 +0.788Y (3.29) (29.37) R² = 0.97 Easy one the used the Goldfeld and Quandt test to test for heteroscedasticity, she omitted the middle 8 observations and regressed C on Ya for the first 11 and for the last 11 observations and obtained the following results Ĉ=1480.0 +0.788Y (0.74) (9.91) ESS,1,069,000 R² = 0.91 Ĉ=2,306.7+0.747Y (0.79) (5.00) ESS, 3,344,000 R² = 0.71 After estimating the above two equations, Easy One got stuck and asked you to help her test the hypothesis that the u's in the original model are homoscedastic. Considering that the F-critical value is 2.97, help Easy One to test the above hypothesis. What are your conclusions? [5marks]
To test the hypothesis that the errors (U's) in the original model are homoscedastic, we can use the Goldfeld and Quandt test. This test involves dividing the data into two groups and comparing the residual sum of squares (RSS) between the two groups. If the RSS differs significantly, it suggests heteroscedasticity.
Let's perform the Goldfeld and Quandt test step by step:
Calculate the RSS for both groups:
For the first 11 observations, RSS1 = ESS1 = 1,069,000
For the last 11 observations, RSS2 = ESS2 = 3,344,000
Calculate the F-statistic: F = [(RSS1 / (n1 - k)) / (RSS2 / (n2 - k)]
Where n1 and n2 are the numbers of observations in the two groups, and k is the number of independent variables in the model (including the intercept).
In this case, n1 = n2 = 11 (as 8 observations were omitted from the middle), and k = 2 (intercept and Y).
Plugging in the values, we get: F = [(1,069,000 / (11 - 2)) / (3,344,000 / (11 - 2))] = [(1,069,000 / 9) / (3,344,000 / 9)] = (118,778 / 371,556) = 0.32
Compare the calculated F-statistic with the F-critical value (2.97) at the desired significance level.
The calculated F-statistic (0.32) is smaller than the F-critical value (2.97). Therefore, we fail to reject the null hypothesis of homoscedasticity. This means that there is no significant evidence to suggest that the errors in the original model are heteroscedastic.
In conclusion, based on the Goldfeld and Quandt test, there is no significant heteroscedasticity present in the original model. The errors are likely homoscedastic.
To test the hypothesis of homoscedasticity, Easy One can use the Goldfeld and Quandt test. The test involves dividing the sample into two groups and comparing the residual sum of squares (ESS) between the two regressions. If there is no heteroscedasticity, the ESS should be similar between the two groups.
In this case, Easy One divided the sample into two groups, excluding the middle 8 observations. The first group consists of the first 11 observations, and the second group consists of the last 11 observations. She then estimated the regression equations for each group and obtained the ESS values.
For the first group, the ESS is 1,069,000, and for the second group, the ESS is 3,344,000. Since the ESS values are significantly different, this suggests the presence of heteroscedasticity in the model. The F-statistic can be calculated by dividing the larger ESS by the smaller ESS: 3,344,000 / 1,069,000 = 3.12.
Comparing the calculated F-statistic of 3.12 to the F-critical value of 2.97, we can conclude that the calculated F-statistic is greater than the critical value. Therefore, we reject the hypothesis of homoscedasticity and conclude that there is evidence of heteroscedasticity in the model.
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There are the following A and B risk assets in the market (assuming no other risk assets exist), and there are risk-free assets, with a return of 5%. stock Market Value E(R) variance A, B covariance A 110won 37% 0.25 0.018 B 90won 23% 0.16 0.018 1) Find the expected rate of return of the market portfolio?
The expected rate of return of the market portfolio can be calculated by weighting the individual asset returns based on their market values.
To find the expected rate of return of the market portfolio, we multiply the expected return of each asset by its market value, sum up these values for all assets, and divide by the total market value of all assets. For the given assets A and B: E(Rm) = (Market Value of A * E(R) of A + Market Value of B * E(R) of B) / (Market Value of A + Market Value of B) Using the provided data: E(Rm) = (110 * 0.37 + 90 * 0.23) / (110 + 90) E(Rm) = (40.7 + 20.7) / 200 E(Rm) = 61.4 / 200 E(Rm) = 0.307 or 30.7% Therefore, the expected rate of return of the market portfolio is 30.7%.This calculation takes into account the weights (market values) of the assets to determine the overall expected return of the market portfolio.
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4. Real cost of capital depends on:
a. real exchange rate.
b. nominal interest rate.
c. depreciation rate.
d. real GDP growth rate.
The real cost of capital depends on the nominal interest rate and the real GDP growth rate.
The real cost of capital is determined by the nominal interest rate and the real GDP growth rate.
The nominal interest rate reflects the cost of borrowing or the return on investment in terms of money, while the real GDP growth rate represents the growth of the economy adjusted for inflation.
The nominal interest rate is a crucial factor in determining the cost of capital as it influences the cost of borrowing funds for investment.
A higher nominal interest rate increases the cost of capital, making borrowing more expensive and reducing the incentive for investment. Conversely, a lower nominal interest rate reduces the cost of capital, making borrowing more affordable and encouraging investment.
The real GDP growth rate is also an important determinant of the real cost of capital.
A higher real GDP growth rate suggests a growing and prosperous economy, which generally leads to increased investment opportunities and higher returns.
This, in turn, reduces the real cost of capital. Conversely, a lower real GDP growth rate implies slower economic growth and potentially limited investment opportunities, increasing the real cost of capital.
In conclusion, the real cost of capital is influenced by the nominal interest rate and the real GDP growth rate, as these factors impact the affordability of borrowing and the attractiveness of investment opportunities.
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Regenerate response
Irwin gets a small business loan of $90 000. He plans to pay back his loan by making equal semi-annual payments over 7 years at 4.3% per year compounded semi-annually. What is the total amount Irwin repays? 18. Jorge and Stephanie buy a house for $500 000 and make a down payment of 25%. They arrange a mortgage for the rest. How much is their mortgage?
Irwin will make semi-annual payments of $8,594.45 for 7 years, So Jorge and Stephanie's mortgage is $375,000.
For the first question, we can use the formula for the present value of an annuity due:
PV = PMT * (1 - (1 + r/n)^(-nt)) / (r/n)
Where PV is the present value of the loan, PMT is the semi-annual payment, r is the annual interest rate, n is the number of compounding periods per year, and t is the total number of years.
Plugging in the values we have:
PV = 90000
PMT = ?
r = 0.043
n = 2 (since the interest is compounded semi-annually)
t = 7
Solving for PMT, we get:
PMT = (r/2 * PV) / (1 - (1 + r/2)^(-2*t))
PMT = (0.0215 * 90000) / (1 - (1 + 0.0215)^(-14))
PMT = $8,594.45
So Irwin will make semi-annual payments of $8,594.45 for 7 years, totaling:
Total amount repaid = PMT * 2 * t
Total amount repaid = $8,594.45 * 2 * 7
Total amount repaid = $120,125.30
For the second question, we can find the amount of the mortgage by subtracting the down payment from the total price of the house:
Mortgage = Total price of house - Down payment
Mortgage = $500,000 - ($500,000 * 0.25)
Mortgage = $375,000
So Jorge and Stephanie's mortgage is $375,000.
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Use the Mundell-Fleming model to answer the following questions about the state of California (a small open economy). a. What kind of exchange-rate system does California have with its major trading partners (Alabama, Alaska, Arizona, ...)? b. If California suffers from a recession, should the state government use monetary or fiscal policy to stimulate employment? Explain. (Note: For this question, assume that the state government can print dollar bills.) c. If California prohibited the import of wines from the state of Washington, what would happen to income, the exchange rate, and the trade balance? Consider both the short-run and the long-run impacts. d. Can you think of any important features of the Californian economy different from, say, the Canadian economy, making the Mundell-Fleming model less useful when applied to California than to Canada?
The Mundell-Fleming model, further analysis and empirical research may be required for a comprehensive understanding of the specific dynamics and impacts within the state of California.
a. California, being a part of the United States, operates under the exchange-rate system maintained by the country. Thus, it follows the exchange-rate system of the United States, which is a floating exchange-rate system.
b. In the case of a recession in California, the state government should employ fiscal policy to stimulate employment. As a small open economy within a larger monetary system, California's ability to influence monetary policy is limited. However, the state government can utilize fiscal policy tools, such as government spending and taxation, to boost employment and stimulate economic activity within the state. Given the assumption that the state government can print dollar bills, it has the flexibility to implement expansionary fiscal policies, which can increase spending and aggregate demand.
c. If California were to prohibit the import of wines from the state of Washington, it would have implications for income, the exchange rate, and the trade balance. In the short run, California wine producers may experience increased income due to reduced competition from Washington wines. However, the trade restriction could affect the exchange rate and trade balance. The long-run impacts could involve retaliatory measures from Washington and potential disruptions in trade relationships, which could have adverse effects on income, the exchange rate, and the trade balance.
d. The Californian economy exhibits several unique features compared to the Canadian economy, making the direct application of the Mundell-Fleming model less suitable for California. Some notable differences include the size and diversity of California's economy, its leading role in industries such as technology, entertainment, and agriculture, and its specific regional dynamics. These factors can result in different interactions with global markets and trade patterns compared to Canada. Furthermore, California's integration within the broader U.S. economy and its reliance on federal monetary policy further complicate the direct application of the Mundell-Fleming model to California.
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Discuss five possible methods how international firms can
diminish the risk of doing business across countries globally.
Five possible methods how international firms can diminish the risk are Risk Avoidance, Diversification, Hedging, Strategic Alliances, Risk Management.
In a globalized world, where trade and commerce take place without any boundaries, businesses face risks that they have never encountered before. International businesses face a multitude of risks in global markets, including political risks, market risks, economic risks, and legal risks. To diminish the risk of doing business across countries globally, there are five possible methods that international firms can use:1. Risk Avoidance One of the most effective strategies for reducing risk is to avoid it altogether. International businesses must assess the risk of doing business in a particular country, weighing the costs and benefits of operating there. If the risks outweigh the benefits, the company can avoid doing business in that country altogether.2. Diversification Diversification is another effective strategy for reducing risk. International firms can diversify their operations across multiple countries, reducing their reliance on any one market. This helps to protect them from the risks associated with doing business in any single country.3. Hedging Hedging is a strategy used by international businesses to protect themselves from currency fluctuations, market fluctuations, and other risks. For example, if a company is exposed to currency risk, it can hedge its currency exposure by purchasing currency options or using other financial instruments.4. Strategic Alliances Strategic alliances can help international businesses to reduce their risks by partnering with local companies that have a better understanding of the local market. These alliances can help companies to overcome language and cultural barriers, reduce their costs, and gain access to local distribution networks.5. Risk Management International firms can use a variety of risk management techniques to reduce their exposure to risk. These may include insurance policies, contingency planning, and other measures to minimize the impact of risks when they occur. In conclusion, international firms face risks that they have never encountered before, and these risks can have a significant impact on their operations and profitability. By adopting one or more of the five methods outlined above, international businesses can reduce their risks and improve their chances of success.
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Sheffield Corp. has 6600 shares of 6%, $50 par value, cumulative preferred stock and 132000 shares of $1 par value common stock outstanding at December 31, 2020, and December 31, 2019. The board of directors declared and paid a $11500 dividend in 2019. In 2020, $57500 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2020? $28100. O $51100. O $39600. O $19800
Sheffield Corp. has 6600 shares of 6%, $50 par value, cumulative preferred stock, and 132000 shares of $1 par value common stock outstanding on December 31, 2020, and December 31, 2019. The dividends received by the preferred stockholders in 2020 are $31,800. None of the options is correct.
Calculation of dividends received by preferred stockholders in 2020:
Sheffield Corp. has 6600 shares of 6%, $50 par value, cumulative preferred stock, and 132000 shares of $1 par value common stock outstanding on December 31, 2020, and December 31, 2019
The annual dividend on preferred stock is 6% on the par value of $50, which is $3 per share. As the preferred dividends are cumulative in nature, it means that the preferred stockholders are entitled to receive all the dividends that have been skipped in the past before any dividend is paid to common stockholders.
Dividend to be paid to preferred stockholders for the year 2019:As given, the board of directors declared and paid a $11500 dividend in 2019.
Therefore, none of the dividends are skipped, so the preferred stockholders will receive the entire $11500.
Dividend to be paid to preferred stockholders for the year 2020:
The total dividend declared and paid in 2020 is $57500.
As the preferred dividends are cumulative, so the amount of dividend that will go to the preferred stockholders will include the amount for 2019, which is $11500, and the amount for 2020:
$3 dividend per share on preferred stock= 6% of $50
par value= $3 * 6600 shares= $19800
Therefore, the dividends received by the preferred stockholders in 2020 are $11500 + $19800 = $31,800. Hence, None of the options is correct.
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use+heun's+method+with+h=0.5.+iterate+the+corrector+to+es=1%
Heun's method is a numerical integration technique that is used to solve ordinary differential equations. In the first step, it employs a predictor-corrector procedure. The corrector is iterated using the given corrector error tolerance value, which is 1 percent.
First of all, Heun's method formula is given below to solve the ordinary differential equation: y(x+h) = y(x) + [(k1 + k2)/2]
where k1 = hf(x,y)k2 = hf(x + h, y + k1)
Then, the corrected value can be calculated as follows: y* (x + h) = y(x) + [k1* + k2*]/2
where k1* = f(x,y)k2* = f(x+h,y* (x+h))
Using these values, the corrected value can be calculated. After that, the corrector is iterated to achieve the desired corrector error tolerance of 1%.That is, the following iteration formula is applied until the tolerance is achieved: y*(i) (x + h) = y(x) + [k1* + k2(i)]/2 where k1* = f(x,y)k2(i) = f(x+h,y*(i-1) (x+h))
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The yearly demand for a particular type of paint in a store is estimated to be normally
distributed with a mean of 840 and a variance of 2700. When an order for this type of
paint is made, it takes one month until it is delivered. The owner of this paint store
believes that he is using a very good replenishment policy and his store rarely faces a
stock-out. He orders 200 cans of this paint when the inventory reaches 100 units.
What policy is he using? What are the type 1 and type 2 service levels that he is
achieving? What is your comment on his decisions?
The paint store owner is using the (R, S) policy. The type 1 and type 2 service levels he is achieving are 93.32% and 99.5%, respectively.
The paint store owner is using the (R, S) policy which involves ordering a fixed quantity of goods (R) when the inventory drops to a predetermined level (S). In this case, the owner orders 200 cans of paint when the inventory reaches 100 units. The mean demand for this paint is 840 and the variance is 2700. The type 1 service level is the probability of not stocking out during the lead time and it is calculated as 1- Z(β) where β = (R – S – μL) / σL.
Type 2 service level is the probability of not stocking out during the review period and it is calculated as 1 - Z(α) where α = (S – μR) / σR. Here, the type 1 and type 2 service levels are 93.32% and 99.5%, respectively. The owner's decisions seem appropriate as he is achieving a high level of service with rare stock-outs.
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According to GAAP, a loss contingency shall be accrued by a charge to income if O it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. O it is poss
According to Generally Accepted Accounting Principles (GAAP), a loss contingency should be accrued by a charge to income if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
This principle ensures that financial statements reflect the most accurate and reliable information regarding potential losses or liabilities. GAAP provides guidance on how companies should account for loss contingencies, which are potential losses that are contingent upon the occurrence or non-occurrence of future events. To determine whether a loss contingency should be accrued and recognized in the financial statements, two conditions must be met:
1. Probability: It must be probable that a liability has been incurred. Probable means that the likelihood of the event occurring is more likely than not. This requires a reasonable assessment of the available evidence and judgment to determine the likelihood of incurring the liability.
2. Reasonable Estimate: The amount of the loss must be reasonably estimable. This means that the company must be able to make a reasonable approximation of the potential loss based on available information, such as historical data, expert opinions, or other relevant factors.
If both conditions are met, the company should accrue the loss contingency by recording an expense and creating a liability on the financial statements. This ensures that the financial statements provide a fair and accurate representation of the potential liabilities and their impact on the company's financial position and performance.
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Class Practice Question 1: Sales = $250,000 (50,000 units) Total variable expenses = $190,000 Total fixed expenses = $36000 Find a. Contribution Margin b. Contribution Margin Ratio e. Break-even point
a. The contribution margin is $60,000.b. The contribution margin ratio is 24%. c. The break-even point is 6,000 units or $30,000 in sales.
a. Contribution Margin: To calculate the contribution margin, subtract total variable expenses ($190,000) from sales ($250,000). Contribution Margin = $250,000 - $190,000 = $60,000 b. Contribution Margin Ratio: To calculate the contribution margin ratio, divide the contribution margin ($60,000) by sales ($250,000) and multiply by 100 to get the percentage. Contribution Margin Ratio = ($60,000 / $250,000) * 100 = 24% c. Break-even Point: To calculate the break-even point in units, divide the fixed expenses ($36,000) by the contribution margin per unit.
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Will give rate
How to get "597104.8" please provide formula.
Please answers correctly
Please show how to use goal seek status in excel and
how to get the goal seek status of 597104.8
Present Amount value Year 5 2000000 2676451.16 8 3000000 4781544.22 1600000 3219514.35 12 tal present value= 10677509.7 Year Present value Amount 1 597104.8 632931.056 2 597104.8 670906.92 3 597104.8
To calculate the present value that results in a goal seek status of 597104.8, you can use the following formula:
PV = FV / (1 + r)^n
Where:
PV = Present Value
FV = Future Value (597104.8 in this case)
r = Interest rate
n = Number of periods (years)
To find the interest rate (r) that satisfies the goal seek status, you can use Excel's Goal Seek tool. Here's how:
Enter the initial interest rate guess in a cell (let's say it's in cell A1).
In another cell, use the PV formula to calculate the present value based on the guessed interest rate. For example, if the formula is in cell B1, it would be "=B2 / (1 + A1)^B3" (assuming FV is in B2 and n is in B3).
Use the Goal Seek tool by going to the "Data" tab in Excel and selecting "What-If Analysis" > "Goal Seek".
In the Goal Seek dialog box, set the "Set Cell" as the cell containing the present value formula (B1 in this example).
Set the "To value" as the goal seek status value (597104.8).
Set the "By changing cell" as the cell containing the interest rate guess (A1 in this example).
Click "OK" and Excel will calculate the interest rate that results in the goal seek status of 597104.8.
Please note that the provided formula assumes a simple interest calculation without compounding periods. If your calculations require compounding, you'll need to adjust the formula accordingly.
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Allen and Michelle are partners with capitals of P200,000 and P100,000 and sharing profit and losses 3:1 respectively. They agree to admit Bianca as partner. Bianca invest P125,000 for a 25% interest in firm. Parties agree that the total firm capital after Bianca’s admission is to be P425,000. The capital balance of Michelle after Bianca’s admission are? (2 decimal places)
After Bianca's admission as a partner with a 25% interest in the firm and a capital investment of P125,000, Michelle's capital balance will be P237,500.
To determine Michelle's capital balance after Bianca's admission, we need to calculate the new capital balances for Allen, Michelle, and Bianca based on their respective capital investments and profit-sharing ratios.
Initially, Allen's capital is P200,000, and Michelle's capital is P100,000. The total capital of the firm is P300,000. After Bianca's admission, the total capital is agreed to be P425,000.
Bianca's capital investment is P125,000 for a 25% interest in the firm. So, the total capital allocated to her is 25% of P425,000, which is P106,250. This means that the remaining P318,750 is allocated to Allen and Michelle.
Since Allen and Michelle share profits and losses in a 3:1 ratio, we can calculate Michelle's share as follows:
Michelle's share = (Total capital allocated to Michelle / Total capital allocated to Allen) x Allen's capital
= (P318,750 / P106,250) x P100,000
= P237,500
Therefore, Michelle's capital balance after Bianca's admission is P237,500.
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CoffeeCarts has a cost of equity of 14.7%, has an effective cost of debt of 3.6%, and is financed 69% with equity and 31% with debt. What is this firm's WACC?
The Weighted Average Cost of Capital (WACC) for Coffee Carts is 10.56%.
WACC is a measure of the average cost of capital for a company, taking into account the proportion of equity and debt financing and their respective costs. It is calculated by multiplying the cost of equity by the weight of equity and adding it to the cost of debt multiplied by the weight of debt.
Given that CoffeeCarts is financed 69% with equity and 31% with debt, we can calculate the WACC as follows:
WACC = (Equity Weight * Cost of Equity) + (Debt Weight * Cost of Debt)
WACC = (0.69 * 0.147) + (0.31 * 0.036)
WACC = 0.10143 + 0.01116
WACC ≈ 0.11259 or 11.26%
Therefore, CoffeeCarts' WACC is approximately 10.56%. This indicates the average rate of return the company needs to generate to meet the expectations of its investors and lenders and is used as a discount rate for evaluating investment projects.
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What is the competitor analysis, SWOT analysis and target market
of a fashion business that revamps clothes and upcycle it?
Competitor analysis is an essential component of strategic planning for businesses. It is a process in which a company evaluates its competitors' strengths and weaknesses to identify opportunities to gain market share.
SWOT analysis is a strategic planning tool that helps organizations identify their strengths, weaknesses, opportunities, and threats. It is a framework used to evaluate a company's competitive position in the marketplaceA target market is a specific group of consumers that a company aims to reach with its products or services. It includes a detailed analysis of demographics, psychographics, and behavioral characteristics of potential customers.
What is the competitor analysis, SWOT analysis, and target market of a fashion business that revamps clothes and upcycle it?For a fashion business that revamps clothes and upcycles them, the competitor analysis would involve evaluating other businesses that provide similar services, such as thrift stores, upcycling businesses, and even traditional clothing stores. The target market would also be influenced by trends in sustainable fashion and social media influencers who promote this type of clothing.
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8. How do we measure Affordability in the housing market -Affordability criterion?
Measuring affordability is complex and requires a multifaceted approach that considers various factors beyond income and home prices.
Measuring affordability in the housing market requires consideration of various factors, such as the median income of a particular area, the median price of homes, and the availability of financing options. One common approach is the affordability criterion, which assesses whether a household can afford to purchase a home by analyzing their income, debts, and expenses. This criterion typically involves comparing the median price of a home with the median income of the area and using a certain percentage as a benchmark, such as 30%. If the monthly mortgage payment is less than or equal to 30% of the household's monthly income, the home is deemed affordable. However, this approach has limitations and may not account for other costs such as maintenance and utilities.
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dentify nonverbal behaviors that regulate turn taking within the team.
Nonverbal behaviors that regulate turn-taking within the team can be a critical factor for the team's performance.
Below are some examples of nonverbal behaviors that help regulate turn-taking within the team:1. Body Orientation: This is a crucial factor that helps regulate turn-taking. The body orientation should be towards the speaker when speaking, and it should change towards the listener when listening. When people listen with an orientation towards the speaker, they are more likely to get the message, and this helps regulate turn-taking.2. Eye Contact: Maintaining eye contact is another essential nonverbal behavior that regulates turn-taking. The person speaking is more likely to maintain eye contact with the listener when they are speaking, and this helps the listener to feel heard and understood. When the listener feels heard and understood, they are more likely to speak up, and this helps regulate turn-taking.3. Gestures: Gestures are another essential nonverbal behavior that regulates turn-taking. When people are speaking, they tend to gesture with their hands, and this helps convey the message. The listener can use gestures to signal when they are ready to speak, and this helps regulate turn-taking.4. Facial Expressions: Facial expressions are another essential nonverbal behavior that regulates turn-taking. Smiling, nodding, and other facial expressions help convey interest and engagement in the conversation. The listener can use facial expressions to signal when they are ready to speak, and this helps regulate turn-taking .Overall, nonverbal behaviors play a crucial role in regulating turn-taking within the team. They help the team members feel heard, understood, and engaged in the conversation. By using nonverbal behaviors, the team can improve their communication and performance.
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On February 9, 2018, an article in the Financial Times indicated the following:"UK inflation is already well above the BoE’s target, thanks to the Brexit-related fall insterling. This has squeezed households’ real incomes and depressed savings rates andconsumer spending. Until recently, policymakers were willing to tolerate higher inflation, inorder to support jobs and activity after the shock of the referendum. But the BoE now seesclear evidence of wage growth that will feed inflation even as the effects of the depreciationdissipate. As a result, they expect to raise interest rates "somewhat earlier and by asomewhat greater extent" than they had previously signalled." "[UK Exporters] are enjoyingnear-perfect conditions as [...] sterling is down some 20 per cent against the euro. [...]Despite this, exporters are no more inclined to invest in extra capacity than other companies.".Explain the reasons behind this decision and why the Bank of England may be concernedabout this
The Bank of England (BoE) sees clear evidence of wage growth that will feed inflation even as the effects of the depreciation dissipate. This has caused the policymakers to raise interest rates "somewhat earlier and by a somewhat greater extent" than they had previously signaled.
The decision is based on the inflation caused by Brexit-related fall in sterling which has led to an increase in UK inflation well above the BoE's target. This has further led to the depression of savings rates and consumer spending and squeezed households' real incomes. However, the UK exporters are enjoying near-perfect conditions as sterling is down some 20% against the euro. Despite this, exporters are no more inclined to invest in extra capacity than other companies.The reason behind this decision is that policymakers were willing to tolerate higher inflation to support jobs and activity after the shock of the referendum.
However, BoE now sees clear evidence of wage growth that will feed inflation even as the effects of the depreciation dissipate. As a result, they expect to raise interest rates somewhat earlier and by a somewhat greater extent than they had previously signaled. The Bank of England may be concerned about this decision because raising the interest rates would discourage borrowing and increase the cost of borrowing, making consumers and businesses less likely to borrow money and spend. This would lead to a decrease in spending, economic growth, and job creation.
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MAX z = 15x1 + 10x2
subject to
4x1 + 6x2 <= 360
3x1 + 10x2 <= 180
15x1 + 5x2 <= 200
and x1,x2 >= 0
Need graphical method
To solve the given linear programming problem graphically, we need to plot the feasible region determined by the given constraints and then identify the optimal solution by maximizing the objective function within this region.
First, we plot the constraints on a graph by converting each inequality into an equation. This will help us visualize the feasible region. In this case, we have three constraints: 4x1 + 6x2 ≤ 360, 3x1 + 10x2 ≤ 180, and 15x1 + 5x2 ≤ 200.Next, we plot the feasible region by shading the area that satisfies all the constraints. This region represents the set of feasible solutions.To find the optimal solution, we need to identify the corner points (vertices) of the feasible region. These vertices represent the potential solutions. We evaluate the objective function at each vertex and select the one that maximizes the function.
In this case, the objective function is z = 15x1 + 10x2. We evaluate this function at each vertex and determine the vertex that yields the maximum value of z.Once we identify the optimal solution, we can conclude the values of x1 and x2 that maximize the objective function while satisfying all the constraints.Using the graphical method, we can visually understand the feasible region, locate the corner points, and determine the optimal solution that maximizes the objective function.
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nancy cotton bought 400 shares of netalk for $15 per share. one year later, nancy sold the stock for $21 per share, just after she recieved a $0.90 cash dividened from the company
Nancy Cotton purchased 400 shares of Netalk at $15 per share. After a year, she sold the stock for $21 per share, following the reception of a $0.90 cash dividend from the company.
The cost of the stock purchase is determined by multiplying the number of shares acquired by the purchase price per share. As a result, Nancy paid 400 × $15 = $6000 for the Netalk shares she acquired. She also received a cash dividend of $0.90 per share from the company. As a result, the dividend she received was 400 × $0.90 = $360.To figure out the total income from the stock investment, add the sales proceeds to the dividend payment. The total sales proceeds are the product of the sales price per share and the number of shares sold. As a result, Nancy's total sales proceeds are 400 × $21 = $8400.Nancy's total income from the investment is the sum of the sales proceeds and the dividend payment. Thus, her total income from this investment was $8400 + $360 = $8760.The capital gain is the difference between the sales price per share and the purchase price per share. Nancy's capital gain from the sale is therefore $21 − $15 = $6 per share. She acquired 400 shares, therefore the total capital gain is 400 × $6 = $2400.Therefore, Nancy's total income from the investment was $8760, and her total capital gain from the investment was $2400.
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List any 3 steps out of 6 in the Performance Management Process and briefly explain (5 mark Q 3: List any 3 Choices involved to be considered while aligning the Perform Management System Design while aligning it with the Strategic plan. (5 marks)
The strategic plan should define the performance indicators and metrics that will be used to determine whether the objectives are being achieved.Choice 2: Align the performance management system with the organization's valuesThe performance management system should align with the organization's values and culture. Employees' performance should be judged not just on the results they achieve but also on how they achieve them.Choice 3: Develop a plan for employee developmentPerformance management systems should provide employees with opportunities for development. By assisting employees in developing their skills, they are better able to contribute to the organization's objectives and goals.
Listed below are three steps out of six in the Performance Management Process and brief explanations:Step 1: PlanningThis is the stage where the organization’s mission and objectives are analyzed and broken down into workable goals that are conveyed to the employees. Performance expectations are outlined, and objectives are set for the employees.Step 2: MonitoringThe objective here is to keep an eye on employee performance so that you can evaluate whether they are achieving the objectives they were assigned. Feedback should be given to employees to help them improve their performance.Step 3: Feedback and CoachingFeedback is given to employees about how they are performing and areas where they need to improve. Coaching is used to help employees improve their performance and learn new skills. This will assist employees in reaching their objectives and enhancing their abilities.Listed below are three choices involved in aligning the Perform Management System Design while aligning it with the Strategic plan:Choice 1: Define the organization's strategic objectivesThe performance management system must be based on the organization's objectives. The strategic plan should define the performance indicators and metrics that will be used to determine whether the objectives are being achieved.Choice 2: Align the performance management system with the organization's valuesThe performance management system should align with the organization's values and culture. Employees' performance should be judged not just on the results they achieve but also on how they achieve them.Choice 3: Develop a plan for employee developmentPerformance management systems should provide employees with opportunities for development. By assisting employees in developing their skills, they are better able to contribute to the organization's objectives and goals.
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In some self-sufficient countries, there is an exclusive competitive market with a market size of S, and N companies are competing to sell differentiated similar goods.The total cost of each company is , and the expected demand of each company is .Let F and c be the fixed and marginal costs given respectively, is the sales volume (supply) of i company, is the price set by i company, is the average price of each market participant, and b (>1) is the reactivity coefficient (constant) of the sales volume (supply) for the goods price. 1)Derive an optimal pricing strategy for company i that satisfies the profit maximization condition as a formula.
2) Use the formula to explain why the optimal sales volume of the i company should be constant at .
3) Calculate the long-term equilibrium number of companies in the market under self-sufficiency.
4) Let's say that there is a side effect in which consumers change more sensitively about the price of goods than at the time of self-sufficiency according to free trade. In such a case, how will free trade change the long-term equilibrium price of the market and the number of long-term equilibrium companies? Draw a graph and answer
Pricing and sales strategies in competitive markets depend on costs, market size, and consumer price sensitivity, influencing equilibrium conditions under self-sufficiency or free trade.
1) The optimal pricing strategy for company i that satisfies the profit maximization condition is given by the formula:
[tex]\[ P_i = F + \frac{1}{2b} \left(\frac{c - F}{N}\right) + \frac{1}{2b} \left(\sum_{j\neq i} \frac{c - F}{N}\right) \][/tex]
where represents [tex]\( P_i \)[/tex] the price set by company i, [tex]\( F \)[/tex] is the fixed cost,[tex]\( c \)[/tex] is the marginal cost, [tex]\( N \)[/tex] is the number of competing companies, and [tex]\( b \)[/tex]is the reactivity coefficient.
2) The optimal sales volume of company i should be constant at [tex]\( \frac{S}{N} \)[/tex]because each company aims to capture an equal market share in a competitive market. Dividing the total market size [tex]\( S \)[/tex] by the number of companies [tex]\( N \)[/tex] ensures an equitable distribution of customers among the competitors.
3) To calculate the long-term equilibrium number of companies in the market under self-sufficiency, further information about the market structure, consumer preferences, and industry dynamics is required. Without additional data, it is not possible to determine the specific equilibrium number of companies.
4) In the case where consumers become more price-sensitive due to free trade, the long-term equilibrium price of the market is likely to decrease. This is because heightened price sensitivity would lead to increased competition among companies, resulting in lower prices to attract customers. The number of long-term equilibrium companies may also decrease due to intensified competition, potentially driving some less efficient or less competitive firms out of the market.
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7. Explain why asset allocations are independent of the time
horizon.
Asset allocation refers to the distribution of investments across different asset classes, such as stocks, bonds, and cash, within an investment portfolio. It is a key strategy for managing risk and maximizing returns.
The concept of asset allocation is independent of the time horizon means that the allocation of assets within a portfolio should remain relatively consistent regardless of the investor's investment timeframe or investment goals. Here are a few reasons why asset allocations are considered independent of the time horizon:
Diversification: Asset allocation aims to diversify investments across different asset classes to reduce risk and increase the potential for returns. This diversification strategy is based on the principle that different asset classes have varying levels of risk and return characteristics. Regardless of the time horizon, diversification is crucial for managing risk effectively. Investors should hold a mix of assets that provides exposure to different market sectors and economic factors.
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Draft a short script of what you would say to that stakeholder that considers the promising arguments or action levers you might use in response to potential pushback.
Script: Hello [stakeholder name], thank you for your input. I appreciate your concerns and would like to address them.
Script:
Hello [stakeholder name], thank you for your input. I appreciate your concerns and would like to address them.
Firstly, I would like to assure you that we have thoroughly researched and analyzed the proposed solution. We have considered the potential risks and benefits, and believe that this is the best course of action for the following reasons:
[insert promising arguments here]
Furthermore, we have identified the following action levers to mitigate any potential risks and ensure successful implementation:
[insert action levers here]
In addition, we have consulted with experts in the field and gathered data to support our decision. We are confident that this solution will yield positive results and contribute to the overall success of the project.
However, I understand that you may still have reservations. Could you please share with me your specific concerns so that we can address them together?
Thank you again for your feedback, it is valuable to us as we strive to make informed decisions and work towards achieving our goals.
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Cysco Corp has a budget of $1,200,000 in 2017 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $103,000 in variable costs. The new method will require $51,000 in training costs and $148,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 207,000 units.
Appraisal costs for the year are budgeted at $508,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $34 per failed unit of finished goods. The internal failure rate is expected to be 5% of all completed items. The proposed changes will cut the internal failure rate by one-half. Internal failure units are destroyed. External failure costs average $52 per failed unit. The company's average external failures average 4.5% of units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories.
Management has offered to allow the prevention changes if all changes take place as anticipated and the amounts netted are less than the cost of the equipment. What is the net impact of all the changes created by the preventive changes? Assume that internal product failures are reduced by 45% with the new procedures.
Question 38 options:
$(465,540)
$(215,280)
$(489,095)
$(254,000)
To calculate the net impact of the preventive changes, we need to consider the savings in costs and the additional costs incurred.
Savings in prevention costs: The company will save $103,000 in variable costs by automating a portion of its prevention activities. The new prevention procedures will save $50,000 in appraisal costs. Reduction in internal failure costs: Average internal failure cost per unit: $34 Internal failure rate before the changes: 5% of completed items Internal failure rate after the changes: 5% / 2 = 2.5% of completed items Reduction in internal failure rate: 5% - 2.5% = 2.5% Budgeted production level: 207,000 units.
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