Price-based revenue management is a process that helps businesses to maximize revenue by adjusting the prices of products in response to market conditions.
The following are the correct steps in the price-based revenue management:Choose a range of prices at which the product can be priced Conduct a survey to collect data about how many people are willing to buy the product at each of the chosen prices Calculate the probability that customers are willing to purchase the product at a certain price
Calculate the demand at each chosen price Calculate the revenue at each chosen price and choose the price that maximizes the revenue Revenue management is typically employed when capacity is fixed or non-perishable or when there are different customer segments.
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Post the following transactions. Determine the ending balance as of May 31 th . Use the checkbook register template May 1 Received $30,000 cash from owner Alex Kerr. May 1 The rent for the office was paid in the amount of $1200.00 May 2 Keith Monteith made a payment of $100 for forms filled out by the doctor. He paid by check. May 2 Tom Cruz had skin tag removal done in the office. He was charged $30.50. He paid cash. May 7 Jennifer Paris comes in to get her TB test read. . She had to pay $45.00 for the immunization and the forms. She pays cash May 8 Roy Bois paid $100.00 cash for forms done by the doctor. May 10 A check was written to Carl's Window Cleaning Service for $134.56 May 10 Frank Connors needs a Driver's Physical. He works for a trucking company and it is mandatory. The doctor charges $85.00. Frank pays by check. May 12 Lana Smith comes in to have a wart removed. The doctor removed the wart using a chemical substance. The cos of the chemical therapy is $20.00 May 15 There was a deposit of $1450.99, for 1 day training seminar the doctor did at the hospital. The following payroll was paid: May 26 Paid Bergos Medical Supply Company $899.00 for medical supplies Payroll expenses May 30 May 30 May 30 May 31
Henrietta Hoopla $856.96
Carrie-Ann Smith $978.89
Paulette Tuston $1234.56
Deposit from MOH of $25,000.00
Beginning balance needed to determine ending balance. Total deposits minus total payments and expenses from starting balance gives ending balance.
May 1: Owner Alex Kerr gave me $30,000 in cash.
- A total of $1,200.00 in rent was paid for the office.
Keith Monteith paid $100 on May 2 to cover the cost of the doctor's forms. He made his payment with a cheque.
Tom Cruz underwent skin tag removal in the workplace. $30.50 was billed to him. He paid in cash.
Jennifer Paris arrives on May 7 to have her TB test results read. Her cost for the immunization and paperwork was $45.00. Cash is exchanged.
Roy Bois paid the doctor $100 in cash on May 8 for the paperwork.
May 10: A cheque for $134.56 was issued to Carl's Window Cleaning Service.
A driver's physical is required for Frank Connors. The doctor's visit costs $85.00. Frank uses a cheque to pay.
May 12:- Lana Smith arrives for a wart removal. The wart was removed by the doctor using a chemical. The chemical therapy is priced at $20.
May 15: A $1,450.99 down payment was made for a one-day training seminar the doctor conducted at the hospital.
On May 26, $899.00 in medical goods were paid to Bergos Medical Supply Company.
April 30: Payroll costs:
- $856.96 was given to Henrietta Hoopla.
978.89 dollars were given to Carrie-Ann Smith.
Paulette Tuston was compensated with $1,234.56.
- The MOH made a deposit of $25,000.00.
You would need the beginning amount, or the balance before these transactions, to calculate the final balance as of May 31. You can sum up all the contributions and deduct all the payments and costs from the starting balance if one is given.
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A front office manager has reviewed the daily report, which reveals that 240 rooms were sold last night. The hotel has 300 rooms and a rack rate of $98. Using the following breakdown of room sales, determine the yield percentage for the last night: 85 rooms at $98, 65 rooms at $90, and 90 rooms at $75. Show all calculations and round the result to hundredth of decimal
Given that the number of rooms sold was 240, the rack rate was $98, the total number of rooms was 300, and the breakdown of room sales was as follows:85 rooms at $98, 65 rooms at $90, and 90 rooms at $75. To find the yield percentage, follow these steps:
Step 1: Find the total revenue earned by the hotel Revenue earned from 85 rooms at $98 per room = 85 × 98 = $8330 Revenue earned from 65 rooms at $90 per room = 65 × 90 = $5850 Revenue earned from 90 rooms at $75 per room = 90 × 75 = $6750
Therefore, the total revenue earned by the hotel = $8330 + $5850 + $6750 = $20,930
Step 2: Find the average rate per room sold Average rate per room sold = Total revenue earned/Number of rooms sold= $20,930/240 = $87.2083 (rounded to hundredth of decimal)
Step 3: Find the yield percentage Yield percentage = Average rate per room sold/Rack rate× 100= ($87.2083/$98) × 100 = 88.95% (rounded to hundredth of decimal).
Therefore, the yield percentage for the last night is 88.95%.
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Maryam bought a house for $1 million in 2021. This house is valued at $1.5 million in 2022.
Q. Explain in detail the effect on Maryam’s consumption decisions in 2021 and in 2022? (5 marks)
Maryam bought a house worth [tex]$1[/tex] million in 2021. This year, she consumed less than she would have if she had not purchased the house, and her savings increased.
She can spend the extra amount on other things, such as vacations, hobbies, or luxury goods, or she can save it for her retirement or a rainy day.
Because her expenses were reduced due to her decision to purchase a house, her standard of living improved without her needing to raise her income.
In 2022, the value of Maryam's house increased to[tex]$1.5 million[/tex]. Maryam's net worth increased as a result of this change.
She has two options now: She can sell the house for a [tex]$500,000[/tex] profit or hold on to it and continue living in it.
If she decides to sell, she will have an additional[tex]$500,000[/tex] to spend or invest.
If she decides to keep the house, her equity in the house has increased by [tex]$500,000[/tex], which means that she will have a larger net worth.
In conclusion, Maryam's decision to purchase a house in 2021 resulted in decreased consumption for that year and increased savings.
In 2022, the value of her house increased, which resulted in an increase in her net worth and greater financial flexibility.
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All _____ are open-end investment funds that invest only in short-term securities such as T-bills and commercial paper.
A. money market mutual funds
B. bond funds
C. hybrid funds
D. stock funds
E. exchange traded funds
option (a), All money market mutual funds are open-end investment funds that invest only in short-term securities such as T-bills and commercial paper.
What are money market mutual funds?A money market mutual fund is an open-ended mutual fund that invests in short-term debt securities, including US Treasury bills and commercial paper. MMFs are a kind of mutual fund, but they are distinctive in that they invest in short-term, low-risk, high-liquidity securities instead of long-term investments that may provide greater returns but also greater risk and volatility.
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For the most recent year, a company's total market value was $5.22 million and its market value of equity was $2.70 million. The company's statutory tax rate was 22.00%, its average pretax borrowing rate was 4.70%, and its estimated beta was 1.25. Assume a risk-free rate of 2.50% and market risk premium of 4.40%. Use this information to answer the following questions. Estimate the cost of debt capital. Estimate the cost of equity capital. Estimate the weighted average cost of capital.
The formula for calculating the cost of debt is; Cost of Debt = Risk-Free Rate + Credit Spread Since we know the risk-free rate and the average borrowing rate, we can determine the credit spread for the company.
The calculation of the cost of debt is given below; Cost of Debt = 2.5% + 4.7% = 7.2%The formula for the cost of equity is as follows; Cost of Equity = Risk-Free Rate + Beta × Market Risk Premium. The market risk premium is the difference between the expected return on the market and the risk-free rate.
The formula for calculating the cost of equity is given below; Cost of Equity = 2.5% + (1.25 × 4.4%) = 8.9%The weighted average cost of capital (WACC) is the sum of the cost of equity and the cost of debt, weighted by the proportion of debt and equity in the company’s capital structure.
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the acquisition cycle is linked to the revenue cycle through the
The acquisition cycle is linked to the revenue cycle through the recognition of expenses incurred during the acquisition process, which ultimately affects the calculation of revenue and profit.
In more detail, the acquisition cycle involves activities such as purchasing goods or services, receiving and verifying them, and recording the related expenses. These expenses are recognized as part of the acquisition cycle and impact the overall cost of goods sold (COGS) for the company. The revenue cycle, on the other hand, involves activities related to generating revenue, such as selling goods or services to customers. The revenue generated is calculated by deducting the COGS from the total sales revenue. Therefore, the expenses incurred during the acquisition cycle directly influence the COGS, which in turn affects the calculation of revenue and profit in the revenue cycle.
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Aneko Company reports the following: net sales of $19,500 for Year 2 and $18,525 for Year 1 , end-of-year total assets of $18,800 for Year 2 and $17,700 for Year 1 1. Compute its total asset tumover for Year 2. 2. Aneko's competitor has a turnover of 20 . Is Aneko performing better or worse than its competitor based on total asset turnover? Complete this question by entering your answere in the tabs below. Compute its total asset turnover for Year 2. Aneko Company reports the following: net sales of $19,500 for Year 2 and $18,525 for Year 1 ; end-of-year total assets of $18.300 for Year 2 and $17,700 for Year 1 1. Compute its total asset tumover for Year 2 . 2. Aneko's competitor has a tumover of 20 . is Aneko performing better or worse than its compettor based on total asset furnover? Complete this question by entering your answers in the tabs below. Aneko's competitor has a tumover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover? Is Aneko performing better or worse than its competitor based on total asset turnoves?
1. Computation of Aneko Company's Total Asset Turnover for Year 2:Total Asset Turnover = Net Sales / Average Total Assets Average Total Assets = (Ending Total Assets + Beginning Total Assets) / 2
Ending Total Assets for Year 2 = $18,800Beginning Total Assets for Year 2 = Ending Total Assets for Year 1 = $17,700Therefore, Average Total Assets = ($18,800 + $17,700) / 2 = $18,250Total Asset Turnover = Net Sales / Average Total Assets = $19,500 / $18,250 = 1.07
Therefore, Aneko Company's total asset turnover for Year 2 is 1.07.2. Comparison of Aneko Company's and its Competitor's Total Asset Turnover: Total Asset Turnover is a measure of a company's efficiency in utilizing its assets to generate sales.
Higher Total Asset Turnover indicates better efficiency and is preferred in comparison to a lower turnover. In this case, Aneko's competitor has a Total Asset Turnover of 2.0. Whereas, Aneko's Total Asset Turnover is 1.07. T
hus, Aneko Company is performing worse than its competitor based on Total Asset Turnover.
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Find the equilibrium price and quantity for the following supply/demand equations:
p=x^2 −8x+20
p=x+30
Extra Credit: What is the slope of the line that is parallel to the line passing through (2,0), and (-4,8)?
The equilibrium price is $18 and the equilibrium quantity is 12 units.To find the equilibrium price and quantity.
We need to set the supply equation equal to the demand equation and solve for the price (p) and quantity (x). Setting the two equations equal to each other: x^2 - 8x + 20 = x + 30 Rearranging the equation: x^2 - 9x + 10 = 0 Factoring the quadratic equation: (x - 5)(x - 2) = 0 Setting each factor equal to zero: x - 5 = 0 or x - 2 = 0 Solving for x: x = 5 or x = 2 Since price (p) is represented by x in the given equations, we have two potential equilibrium points: (p, x) = (5, 5) and (p, x) = (2, 2). However, we need to substitute these values into the original equations to determine which one satisfies both the supply and demand equations. For (p, x) = (5, 5): 5^2 - 8(5) + 20 = 5 + 30 25 - 40 + 20 = 35 For (p, x) = (2, 2): 2^2 - 8(2) + 20 = 2 + 30 4 - 16 + 20 = 32 Since (p, x) = (2, 2) satisfies both equations, the equilibrium price is $2 and the equilibrium quantity is 2 units.
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Nuts-and-Bolts, Inc. wishes to find the best location for a
plant that will satisfy customer demand in the following five
areas.
Table A
Location
x coordinate
y coordinate
Volume
A
3
Nuts-and-Bolts, Inc. seeks the optimal plant location to meet customer demand in five areas, considering transportation, distance, and logistics.
Nuts-and-Bolts, Inc. is looking for the best spot to build a new plant that can efficiently meet customer demand in five distinct areas. To effectively serve these locations, the intended plant location must be properly positioned. Numerous criteria, including transportation costs, distance to target consumers, and logistical issues, must be taken into account in order to choose the optimum location.
The x and y coordinates of the first area—let's call it Area A—define it. These coordinates show where Area A is located on a map, which aids in determining how customers' demands are distributed spatially. The amount of demand in Area A is another important aspect that must be taken into account. This volume demonstrates the scope of the client's expectations in terms of of the number of products or services needed.
Considering these factors, Nuts-and-Bolts, Inc. aims to identify a location that optimally balances the needs of all five areas. By analyzing the distribution of customer demand, evaluating transportation costs, and considering other relevant factors, the company can determine the best location for its plant. This strategic decision will ensure efficient operations, minimize costs, and ultimately satisfy customer demand effectively.
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phil invests in new businesses in exchange for partial ownership in those businesses. phil is a(n)
Phil is a venture capitalist. A venture capitalist is an individual or firm that invests in early-stage or high-growth potential businesses in exchange for equity or ownership stakes in those businesses. Venture capitalists provide capital, expertise, and support to help these businesses grow and succeed.
Venture capitalists typically invest in startups and emerging companies that have innovative ideas, high growth potential, and the potential for significant returns on investment. They take on the risk associated with investing in early-stage ventures in exchange for the potential for substantial profits if the businesses are successful
In addition to providing financial capital, venture capitalists often offer mentorship, industry connections, and strategic guidance to the companies they invest in. They play an active role in helping the businesses they invest in by providing expertise, network access, and guidance on business strategy.
Overall, venture capitalists like Phil play a crucial role in fostering innovation and supporting the growth of promising businesses by providing the necessary funding and resources to help them succeed.
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The nominal yield on 6-month T-bills is 8%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 6%. In the spot exchange market, 1 yen equals $0.011. If interest rate parity holds, what is the 6-month forward exchange rate? Do not round intermediate calculations. Round your answer to five decimal places.
The 6-month forward exchange rate is 0.01130.
First, we need to calculate the forward exchange rate using the interest rate parity theory. The theory states that the forward exchange rate should be such that both investments are worth the same in dollars.
Forward exchange rate = Spot exchange rate × [(1 + domestic interest rate) ÷ (1 + foreign interest rate)]
Given that,
The nominal yield on 6-month T-bills is 8%,
The default-free Japanese bonds that mature in 6 months have a nominal rate of 6%.
In the spot exchange market, 1 yen equals $0.011.
Therefore, the forward exchange rate will be:
Forward exchange rate = $0.011 × [(1 + 0.08) ÷ (1 + 0.06)]
Forward exchange rate = $0.0113 or 0.01130 (rounded to five decimal places).
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Walmart Inc. employs three-hundred seasonal and permanent skilled and unskilled laborers across four states. According to federal immigration law, Walmart can hire illegal immigrants
a. if either the employer or the immigrants file special forms.
b. under no circumstances.
c. only if the employer files a special form.
d. only if the immigrants file special forms.
The correct option is A. The correct option for Walmart Inc. that employs three-hundred seasonal and permanent skilled and unskilled laborers across four states according to federal immigration law is that Walmart can hire illegal immigrants if either the employer or the immigrants file special forms.
Walmart Inc. can hire illegal immigrants if either the employer or the immigrants file special forms.
What is an illegal immigrant?
An illegal immigrant is an individual who enters a country without meeting the government's legal immigration requirements. They enter the country through illegal means, such as crossing the border between two nations. Furthermore, an illegal immigrant is someone who overstays their visa expiration date in a foreign country.
What is the Federal Immigration Law?
The federal immigration law establishes immigration regulations for all citizens of the United States of America. These rules protect the citizens' interests and guarantee that legal immigrants adhere to certain principles while entering or residing in the United States of America. These laws also include several provisions for employers to hire skilled and unskilled laborers. In summary, Walmart Inc. can hire illegal immigrants if either the employer or the immigrants file special forms. The correct option is A.
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the stage in a product's life cycle when it may become too similar to existing products, and marketers need to communicate what makes it different from others products is called the stage.
The stage in a product's life cycle when it may become too similar to existing products, and marketers need to communicate what makes it different from other products is called the maturity stage.
During the maturity stage of a product's life cycle, the market becomes saturated with similar offerings, and competition intensifies. Products in the market may start to reach a point where they are perceived as highly similar or interchangeable by consumers. This similarity can make it challenging for marketers to differentiate their product and stand out from the competition.
To address this challenge, marketers employ various strategies to communicate and emphasize the unique features, benefits, or value proposition of their product. This differentiation can be achieved through effective branding, targeted marketing messages, highlighting unique product features or technology, superior customer service, competitive pricing, or innovative marketing campaigns.
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True or false: As a share of total economic activity in the local
economyuniversityan average university's athletic department
exceeds that of the 5 professional sports franchises in Chicago
True Fals
The statement "As a share of total economic activity in the local economy, an average university's athletic department exceeds that of the 5 professional sports franchises in Chicago" is False
Economic activity is the sum of all monetary transactions that are conducted in an economy, from making investments to purchasing goods and services. What is an athletic department An athletic department is a university's division that is responsible for managing athletic programs and sporting activities on its campus.
What is a professional sports franchise A professional sports franchise refers to a sports team that is owned by an individual or group of individuals and that competes in professional leagues for money. Professional sports franchises include teams in the National Basketball Association, Major League Baseball, National Football League, and National Hockey League.
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) According to the Fishers, transaction approach demand for money depends on three factors. Discuss the demand for money theory according to Fishers and explain how the three factors are related. [5 Marks] b) Differentiate between fiscal policy and monetary policy. [4 Marks] c) Discuss any two macroeconomic phenomena that have happened in Kenya over the last five years and explain how monetary policy tools were used to give remedy. [6 Marks]
According to the Fishers, transaction approach demand for money depends on three factors. Discuss the demand for money theory according to Fishers and explain how the three factors are related.
The Fisher hypothesis is a theory that indicates that the nominal interest rate is equivalent to the real interest rate and the inflation rate. This theory explains how the rate of inflation interacts with the nominal and real interest rates to impact the economy's equilibrium level of real interest rates.
The demand for money theory according to Fisher's is based on the Transaction Approach, which assumes that people hold money for transactions and the frequency of transactions and the average size of transactions determine the demand for money.
Fiscal policy is employed to stabilize the economy during recessions by cutting taxes and increasing government spending. Monetary policy is used to stabilize the economy during inflationary periods by reducing the money supply and raising interest rates.c) Discuss any two macroeconomic phenomena that have happened in Kenya over the last five years and explain how monetary policy tools were used to give remedy.
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Segmented Net Income, ROI, and RI. Custom Auto Company has two divisions—East and West. The following segmented financial information is for the most recent fiscal year:
East Division West Division
Sales $2,000,000 $4,000,000
Cost of goods sold 800,000 2,040,000
Allocated overhead 600,000 1,200,000
Selling and administrative expenses 360,000 380,000
The East division had average operating assets totaling $1,800,000 for the year, and the West division had average operating assets of $2,600,000. Assume the cost of capital rate is 8 percent, and the company’s tax rate is 30 percent. Division managers are responsible for sales, costs, and investments in assets.
Required:
What type of responsibility center is each division at Custom Auto Company? Explain.
Prepare a segmented income statement. Include the profit margin ratio for each division at the bottom of the segmented income statement.
Calculate ROI for each division.
Calculate RI for each division.
Summarize the answers to parts a, b, and c. What does this information tell us about each division?
The operating income for the West Division is $380,000 - (Cost of capital rate * Average operating assets) = $380,000 - ($0.08 * $2,600,000) = $124,800.
At Custom Auto Company, both the East and West divisions are profitable. In order to achieve profitability, managers are responsible for producing income, reducing costs, and managing assets in a profit centre.
Income Statement by Segment:
Divided into: East, West, and East
---------------------------------------------
Sales | $2,000,000 | $4,000,000
Selling and administrative costs: 360,000 | 380,000 Cost of goods sold: 800,000 | 2,040,000 Allocated overhead: 600,000 | 1,200,000
---------------------------------------------
Operating earnings: $240,000; $380,000
Profit Rate of Margin:
$240,000 / $2,000,000 equals 12% for the East Division.
West Division: 3.80% of $4 million is 9.5%.
Operating income divided by average operating assets for the East Division equals $240,000 divided by $1,800,000, or 13.33%.
Operating income/average operating assets in the West Division equals $380,000/$2,600,000, or 14.62%.
Calculating RI
Operating income in the East Division is $240,000 - (Cost of capital rate * Average Operating Assets) - ($0.80 * $1,800,000) = $96,000.
Operating income - (Cost of capital rate) for the West Division
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COURSEWORK 2 QUESTION Student is requiring selecting ONE (1)company as stated below and conducting a business portfolioanalysis of the chosen company:title:nestle1.Discuss TWO (2)success or failure strategies have been implemented by yourchosen company against its competitors. Support your answer with relevantjustification and examples.i want 400 wordss n references too...
Two success strategies implemented by the company against its competitors are;
Focus on innovationGlobal reachHow do these strategies work ?Nestle has a long history of innovation, and this has helped the company to stay ahead of its competitors. For example, Nestle was the first company to introduce instant coffee, and this product has been a huge success. Nestle has also been a leader in the development of new nutritional products, such as infant formula and cereal bars.
Nestle has a global reach, and this gives the company a significant advantage over its competitors. Nestle operates in over 180 countries, and this allows the company to tap into a large and growing market.
Nestle's focus on innovation has helped the company to stay ahead of its competitors in a number of ways. For example, the company's development of instant coffee allowed it to tap into a new market of consumers who did not have time to brew coffee from beans. Nestle's development of new nutritional products has also helped the company to meet the needs of a growing number of consumers who are concerned about their health.
Nestle's global reach has given the company a number of advantages over its competitors. For example, the company's ability to operate in over 180 countries has allowed it to tap into a large and growing market. Nestle's global reach has also allowed the company to benefit from economies of scale.
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Raw materials purchased on account, $210,000 Raw matenals used In production, $190.000 ($178.000 direct materials and $12.000 indirect matertais). Accrued olrect labor cost of $90,000 and indirect labor cost of $110,000 Deprectation recorded on factory equipment, $40,000. Other manufacturing overhead costs accrued during October, $70,000. f. The company apples manutacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of. 30.000 machine-nours were used in October. 9. Jobs costing $520,000 according to thelr job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These lobs were sold on account at 25% above cost. Requlred: 1. Prepare journal entries to record the transactions given above 2 Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $42,000. Complete this question by entering your answers in the tabs below. Propare journal entries to record the transactions given above. (If no entry is required for a transactionveveot, select " No journal entry required in the first account field.) Journal entry worksheet The following cost data relate to the manufacturing activities of Chang Company during the just completed year: The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to Jobs. A total of 19.400 hours were used during the year: Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year. Complete this question by entering your answers in the tabs below. Compute the amount of underapplied or overapplled overherad cost for the year.
The amount of underapplied overhead cost for the year is $175,000 and the cost of goods manufactured for the year is $2,047,000.
Journal entries to record the transactions given above:DateParticularsDebitCredit
Raw Materials A/cDr$210,000
Accounts Payable$210,000(To record raw materials purchased on account)
Work in Progress A/cDr$190,000
Direct Materials$178,000
Indirect Materials$12,000(To record raw materials used in production)
Work in Progress A/cDr$90,000
Accrued Wages Payable$90,000(To record accrued direct labor cost)
Manufacturing Overhead A/cDr$110,000
Accrued Expenses Payable$110,000(To record indirect labor cost)
Manufacturing Overhead A/cDr$70,000
Accrued Expenses Payable$70,000(To record other manufacturing overhead costs accrued)
Manufacturing Overhead A/cDr$240,000
Accounts Payable$240,000(To record application of overhead costs to production)
Work in Progress A/cDr$520,000
Cost of Goods Manufactured$520,000(To record the completion of jobs according to their job cost sheets)
Finished Goods A/cDr$650,000
Work in Progress$650,000(To record the transfer of jobs to finished goods)
Accounts Receivable A/cDr$600,000
Sales Revenue$600,000(To record sales on account)
Cost of Goods Sold A/cDr$480,000
Finished Goods$480,000(To record the shipping of completed jobs to customers)
Finished Goods A/cDr$120,000
Cost of Goods Sold$120,000(To record the cost of goods sold)
T-accounts for Manufacturing Overhead and Work in Progress:
Ending balance in Work in Progress = $240,000 (i.e. beginning balance of $42,000 + total debits of $1,180,000 - total credits of $982,000)
Ending balance in Manufacturing Overhead = $10,000 debit (i.e. total debits of $310,000 - total credits of $300,000)
Computing the amount of underapplied or overapplied overhead cost for the year:
Actual overhead cost incurred = $310,000
Predetermined overhead rate = $25 per machine-hour
Machine hours used during the year = 19,400
Applied overhead cost = 19,400 machine-hours × $25 per machine-hour
= $485,000
Underapplied overhead cost = Actual overhead cost incurred – Applied overhead cost
= $310,000 – $485,000
= $175,000 (overapplied overhead cost if positive)
Preparing a schedule of cost of goods manufactured for the year:
Direct materials$1,025,000
Direct labor$735,000
Manufacturing overhead applied$485,000
Total manufacturing costs$2,245,000
Add: Beginning work in progress$42,000
Less: Ending work in progress($240,000)
Cost of goods manufactured$2,047,000
Therefore, The cost of manufactured items for the year is $2,047,000, and unapplied overhead costs are $175,000 for the year.
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the use of customer names by an investment adviser to promote the sale of the firm's advisory services is:
The use of customer names by an investment adviser to promote the sale of the firm's advisory services is unethical, inappropriate, and a violation of the Investment Advisers Act of 1940.
The Investment Advisers Act of 1940 governs the practices of registered investment advisers, requiring them to act in the best interests of their clients. Investment advisers are prohibited from using customer names to advertise their services. Investment advisers are also prohibited from disclosing any information about their clients without their express permission.
It is necessary to maintain client privacy and confidentiality in the investment advisory industry. Advisers are prohibited from using client testimonials to advertise their services as well. Client testimonials and the use of client names can be misleading and may not accurately represent the investment adviser's performance. The client testimonials may be biased, highlighting only the successful investments, and not the failures.
Hence, the use of customer names by an investment adviser to promote the sale of the firm's advisory services is unethical, inappropriate, and a violation of the Investment Advisers Act of 1940.
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g calculation of value-added and non-value-added costs, activity volume and unused capacity variances rico company produces custom-made machine parts. rico recently has implemented an activity-based management (abm) system with the objective of reducing costs. rico has begun analyzing each activity to determine ways to increase its efficiency. setting up equipment was among the first group of activities to be carefully studied. the study revealed that setup hours was a good driver for the activity. during the last year, the company incurred fixed setup costs of $399,600 (salaries of 12 employees). the fixed costs provide a capacity of 26,640 hours (2,220 per employee at practical capacity). the setup activity was viewed as necessary, and the value-added standard was set at 2,220 hours. actual setup hours used in the most recent period were 24,590.
Based on the information, the value-added costs will be $368,850
How to calculate the valueValue-added costs are the costs incurred to perform activities that directly contribute to the production or delivery of a product or service.
Fixed setup costs: $399,600
Practical capacity: 26,640 setup hours (2,220 hours per employee)
Value-added standard: 2,220 hours
Actual setup hours: 24,590 hours
Value-added costs = Actual setup hours * Fixed setup cost per hour
Fixed setup cost per hour = Fixed setup costs / Practical capacity
Fixed setup cost per hour = $399,600 / 26,640 hours = $15 per hour
Value-added costs = 24,590 hours * $15 per hour
= $368,850
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An investor makes deposits of 250 each every 2 months from March 1, 2007 to January 1, 2018, inclusive. (a) Find the value of this series of payments on March 1, 2007 if it is assumed that a nominal annual interest rate of 2.4% compounded six times per year until the sixth payment and a nominal annual discount rate of 3% com- pounded quarterly starting just after the sixth payment.
Therefore, the value of the series of payments on March 1, 2007, is $7,931.45.Given that an investor makes deposits of 250 each every 2 months from March 1, 2007, to January 1, 2018, inclusive.
We have to find the value of this series of payments on March 1, 2007, if it is assumed that a nominal annual interest rate of 2.4% compounded six times per year until the sixth payment and a nominal annual discount rate of 3% compounded quarterly starting just after the sixth payment.
And every two months, he makes a deposit of 250. Hence the common difference (d) is 250 and the first term (a) is also 250.Using the formula
;n = (tn - a)/d + 1n
= (2500 - 250)/250 + 1n
= 10.
Therefore, there are 10 terms in the series. The term to which interest is compounded is the sixth term since interest is compounded six times a year. Let’s calculate the value of the series of payment on March 1, 2007, using the present value of an annuity formula.The formula for the present value of an annuity is;
P = R[(1 - (1 + i)^-n) / i]Where
P = present value,
R = periodic payment,
i = interest rate per period, and
n = number of periodsLet’s use the present value of an annuity formula to find the present value of the first five payments, and the value of the sixth payment at the time of payment is known.Present value of first 5 payments;
R = $250,
i = 2.4% / 6
= 0.4% per month, n
= 5(6)
= 30 months
Therefore;P1 = 250[(1 - (1 + 0.4%)^-30) / 0.4%]
P1 = 7,443.17The present value of the sixth payment is calculated as follows;
R = 250,
i = 3% / 4
= 0.75% per quarter,
n = 1(2)
= 2 quartersTherefore;
P6 = 250[(1 - (1 + 0.75%)^-2) / 0.75%]
P6 = 488.28The total value of the series of payment on March 1, 2007, is calculated as follows;Total value = P1 + P6Total value = 7,443.17 + 488.28
Total value = 7,931.45.
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a convenience user doesn't really care what the apy is on their credit cards. question 3 options: true false
A convenience user doesn't really care what the apy is on their credit cards.This statement is false.
A convenience user is a credit card user who primarily uses their credit card for convenience and does not carry a balance or accrue interest charges. While a convenience user may not be concerned about the annual percentage yield (APY) specifically, it does not imply that they don't care about the terms and features of their credit cards.
Credit card terms, including interest rates, fees, rewards, and other benefits, can still be relevant to convenience users. Even if they pay off their balances in full each month and do not accrue interest charges, they may still consider factors such as annual fees, cash back rewards, travel perks, or customer service quality when selecting and using a credit card.
Therefore, it would be incorrect to say that a convenience user doesn't care about the APY or other credit card terms. They may not prioritize it as much as users who carry a balance and incur interest charges, but they still consider other features and benefits that are important to their credit card usage.
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The bullwhip effect leads to declining inventory costs across the entire supply chain. True False
The statement "The bullwhip effect leads to declining inventory costs across the entire supply chain" is false.
The bullwhip effect refers to the phenomenon where small fluctuations in demand at the retail level result in amplified fluctuations in demand upstream in the supply chain.
In other words, the bullwhip effect causes demand to be exaggerated as it moves up the supply chain. This leads to increased inventory costs and decreased efficiency as each stage of the supply chain overreacts to changes in demand.
While it is possible for supply chain management strategies to mitigate and reduce the impact of the bullwhip effect, the inherent nature of the effect itself results in higher inventory costs, not declining costs. The bullwhip effect introduces inefficiencies and challenges in inventory management, making it difficult to achieve cost reductions across the entire supply chain.
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an avocado orchard employs five full-time workers. currently, the average product of labor is 120 pounds of avocados per day. the orchard hires a 6th full-time worker and his marginal product is 150 pounds of avocados. the average product of the six workers will now be a. more than 120 pounds. b. less than 120 pounds. c. equal to 120 pounds. d. greater than the marginal product of labor.
The correct answer is a more than 120 pounds.
The average product of labor is a measure of the output produced per worker in a given time period. In this case, the average product of labor is initially 120 pounds of avocados per day for five workers.
When the orchard hires a sixth full-time worker, his marginal product of labor is 150 pounds of avocados. The marginal product of labor refers to the additional output produced by adding one more unit of labor.
To determine the new average product of the six workers, we can calculate the total output produced by the six workers and divide it by the number of workers.
Let's assume that the total output produced by the six workers is X pounds of avocados per day.
For the five workers, the total output is 120 pounds of avocados per day * 5 workers = 600 pounds of avocados per day.
Since the marginal product of the sixth worker is 150 pounds of avocados per day, the total output for the six workers would be 600 pounds + 150 pounds = 750 pounds of avocados per day.
Now, we can calculate the new average product of the six workers by dividing the total output (750 pounds) by the number of workers (6 workers):
New average product of labor = 750 pounds / 6 workers = 125 pounds of avocados per day.
Therefore, the average product of the six workers will now be more than 120 pounds.
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Quiz Instructions This homework has 20 questions (5 pts each) and can be taken at most 3 times. Only your highest score will be considered. Question 3 5 pts A localized industrial cluster improves efficiency because it creates more hostility among firms in the same industry, it limits the market size by only attracting local firms and local suppliers. it can bring together many firms that collectively provide a large enough market to support a wide range of specialized suppliers. it may lower the number of small start-ups to join the cluster.
An industrial cluster can be defined as a geographical concentration of related companies, organizations, and institutions within a particular industry.
It often brings together firms that collectively provide a large enough market to support a wide range of specialized suppliers, improving efficiency, and promoting innovation. A localized industrial cluster is more effective because it allows for specialization and sharing of expertise among different firms in the same industry.
Specialization and sharing of expertise among different firms result in cost savings, as firms can share resources, infrastructure, and services. A localized industrial cluster can create a large enough market to support a wide range of specialized suppliers. It provides opportunities for collaboration, including research and development, training, and marketing.
In conclusion, a localized industrial cluster improves efficiency by creating a large enough market to support a wide range of specialized suppliers, enhancing competition among firms, and promoting innovation.
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Identify what are your five elements of (components of) "systems
thinking"? Explain why each is relevant for systems thinking
The five elements of systems thinking are emergence, interdependence, feedback loops, systems mapping, and mental models. Systems thinking is a framework that is used to solve complex problems. By understanding the interactions between different elements of a system, we can better understand how to solve problems.
1. Emergence
Emergence is the idea that the whole is greater than the sum of its parts. When we think about systems, we need to think about how the different parts of the system work together to create something new. This means that we need to focus on the relationships between the different parts of the system rather than just the parts themselves.
2. Interdependence
Interdependence is the idea that everything is connected. In a system, everything is connected to everything else in some way. This means that we need to think about how changes in one part of the system will affect other parts of the system.
3. Feedback loops
Feedback loops are the idea that the output of a system is fed back into the system as input. There are two types of feedback loops: positive and negative. Positive feedback loops amplify the output of a system, while negative feedback loops dampen the output of a system. Understanding feedback loops is important because it helps us to understand how changes in one part of a system will affect other parts of the system.
4. Systems mapping
Systems mapping is a tool that is used to visualize the relationships between different parts of a system. This helps us to understand how the different parts of a system are connected and how they interact with each other. Systems mapping is important because it helps us to identify the root causes of problems and to develop strategies for solving them.
5. Mental models
Mental models are the assumptions and beliefs that we hold about how the world works. Our mental models can limit our ability to think creatively and to solve problems. Systems thinking requires us to challenge our mental models and to consider alternative perspectives. By doing this, we can develop a more comprehensive understanding of complex problems.
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A seller sells a good to a prospective buyer. The buyer values the good at θq, where θ is his (privately known) marginal utility of quality and q is the good's quality. It is common knowledge that θ is high (θ=2) with probability 41 and θ is low (θ=1) with probability 43. The monopolist incurs a cost based on quality c(q)=2q2, so that his profit is p−2q2. The buyer can reject an offer (not buy anything) and get a payoff of 0 , or he can buy a good and get a payoff of [θq−p. The seller offers a menu consisting of {p1,q1,p2,q2}, where the subscript means the price and quality is meant for the seller of that type (θ), and the buyer picks which good she wants. a. Suppose, for part (a) only, the seller observes θ directly and can offer a single type of good based on the buyer's type {pi,qi},i∈{1,2}. Construct the optimal price/quality combination when θ=1 and when θ=2. b. Suppose the seller asks the buyer what his type is, assumes he answers honestly, and offers a contract like in part (a). Who will lie, and why? c. Construct the optimal contract where everyone buys their appropriate good. d. Whose good has an inefficient level of quality? Is it too high or low? Why does the seller do this?
When θ=1, the marginal utility is low.
The seller can choose to offer quality q1 with price p1 or quality q2 with price p2.
If the seller offers quality q1, the buyer will get a payoff of 1.q1−p1.
The seller's profit will be p1−2q12. If the seller offers quality q2, the buyer will get a payoff of 1.q2−p2.
. This happens when p2=8/3 and q2=2/3.
The seller's profit will be p2−2q22=8/3−2(4/9)=2/9.When θ=2, the marginal utility is high.
The seller can choose to offer quality q1 with price p1 or quality q2 with price p2. If the seller offers quality q1, the buyer will get a payoff of 2.q1−p1.
The seller's profit will be p1−2q12. If the seller offers quality q2, the buyer will get a payoff of 2.q2−p2. The seller's profit will be p2−2q22.
The seller's profit will be maximum when he offers quality q2 with price p2 and the buyer chooses it. This happens when p2=8/3 and q2=2/3. The seller's profit will be p2−2q22=8/3−2(4/9)=2/9.
b) The buyer will lie because he has an incentive to declare himself a high type. If the buyer lies and declares himself to be a high type, he can get a better contract.
The seller will also lie to offer him a contract.
c) If the seller offers {p1,q2}, then the buyer who gets it will be indifferent between the two types of goods.
The expected payoff for both the types will be (41×2+43×1)×2/3−p.
The expected profit for the seller will be (41×2+43×1)×p−2(4/9).
The seller will maximize his profit by setting the price at 32/9 and quality at 2/3.
The seller will offer {32/9,2/3} and the buyer will pick this.
The buyer's expected payoff is (41×2+43×1)×2/3−32/9=4/9.
d) The quality of the seller with a low type is inefficient.
The quality is too high because the marginal cost is higher than the marginal benefit. The seller is doing this to signal that he has a high type.
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Describe the signage and graphics for Walmart. What are the advantages and disadvantages of their choices?
Walmart, the largest retailer in the world, is known for its distinctive branding and logo. The store uses signage and graphics to promote its brand and products. The store's logo, a bright yellow sunburst, can be seen from miles away. Walmart uses this branding strategy to set itself apart from other retailers and create a memorable experience for its customers.
Advantages:
Walmart's signage and graphics are also eye-catching. The store uses bright colors and bold fonts to draw attention to its products and promotions. This makes it easier for customers to find what they are looking for and encourages them to make purchases.
Disadvantages:
One of the disadvantages of Walmart's signage and graphics is that they can be overwhelming. The store uses a lot of bright colors and bold fonts, which can be visually distracting. This can make it harder for customers to focus on specific products or promotions.
Another disadvantage of Walmart's signage and graphics is that they can be confusing. The store uses a lot of different signs and graphics to promote its products and services. This can make it difficult for customers to understand what is being promoted and what the prices are.
Overall, Walmart's signage and graphics are effective in promoting its brand and products. While there are some disadvantages to using such a bold and bright branding strategy, Walmart's approach has clearly worked well for the company over the years.
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Betty’s Bakery has the following standard cost sheet for one unit of its most popular cake: SQ SP Direct materials 1.2 pounds $ 1.50 per pound Direct labor 0.8 hours $ 12.00 per hour During the month of May, the company made 820 cakes and incurred the following actual costs: Direct materials purchased and used (1,180 pounds), $1,534 Direct labor (880 hours), $10,120 Required: Calculate the direct materials price variance. Calculate the direct materials quantity variance. Calculate the direct materials spending variance. Calculate the direct labor rate variance. Calculate the direct labor efficiency variance. Calculate the direct labor spending variance. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to two decimal places.
Betty’s Bakery has a standard cost sheet for one unit of its most popular cake.
The following data is provided:
SQSP
Direct Materials1.2 pounds$1.50 per pound
Direct labor0.8 hours$12.00 per hour
During May, the company made 820 cakes and incurred the following actual costs:
Direct materials purchased and used (1,180 pounds)
$1,534 Direct labor (880 hours)
$10,120
A standard cost sheet is a statement of expected costs for a unit of a product under expected operating conditions.
The actual costs incurred during the period are then compared to the expected costs specified in the standard cost sheet to determine variances between actual and expected costs.
Betty’s Bakery will use the variances to determine how much it deviated from its plan and use this information to adjust its processes.
Variance analysis provides a useful basis for determining performance.
Direct Material Variances Direct Material Price Variance = Actual Quantity of Material Purchased x (Actual Price – Standard Price)
AQ (AP – SP) =1,180 x ($1.30 - $1.50)
AQ (AP – SP) =1,180 x -$0.20
AQ (AP – SP) =-$236
Direct Material Quantity Variance = Standard Quantity x (Actual Price – Standard Price)SQ (AP – SP) = 1.2 pounds x ($1.30 - $1.50)
SQ (AP – SP) = 1.2 x -$0.20
SQ (AP – SP) = -$0.24
Direct Material Spending Variance = Actual Quantity of Material Purchased x (Actual Price – Standard Price)
AQ (AP – SP) =1,180 x ($1.30 - $1.50)
AQ (AP – SP) =1,180 x -$0.20
AQ (AP – SP) =-$236 Direct Labor Variances
Direct Labor Rate Variance = Actual Hours Worked x (Actual Rate – Standard Rate)
AH (AR – SR) =880 x ($12.50 - $12.00)
AH (AR – SR) =880 x $0.50
AH (AR – SR) =$440
Direct Labor Efficiency Variance = Standard Hours Allowed x (Actual Rate – Standard Rate)SH (AR – SR) =820 x (0.8 – 0.9)SH (AR – SR) =820 x -$0.10SH (AR – SR) =-$82
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Managers at the Bank of Quebec are afraid that the bank will not have enough reserves at the end of the business day to meet withdrawals tomorrow. It currently has two options to borrow money overnight. First, it could borrow money from the Bank of Canada (BOC) at a rate of 0.95%. Second, it could borrow money from other banks at a rate of 0.25%. Using this information, answer the questions, 1. What is the overnight rate? overnight rate: 2. What is the bank rate? 9 bank rate: 3. What would happen to other short-term interest rates if the Bank of Canada increases its overnight rate targer? They would become irrelevant. They would decrease. They should remain unchanged. They would also increase.
Banks lend money to one another overnight at an interest rate known as the overnight rate. The bank rate is the percentage of loans and advances that the central bank charges private banks. Other short-term interest rates across the economy would probably rise as well if the Bank of Canada increased its overnight rate target. The correct option is D.
1. Banks lend money to one another overnight at an interest rate known as the overnight rate. It is normally determined by the central bank and is employed to control the money supply as well as the general level of interest rates in the economy.
2. The bank rate is the percentage of loans and advances that the central bank charges private banks. Serving as a standard for other interest rates in the economy, it is typically higher than the overnight rate.
3. Other short-term interest rates across the economy would probably rise as well if the Bank of Canada increased its overnight rate target. This is so because other borrowing expenses are measured against the overnight rate. The cost for banks to borrow money from the central bank increases when the central bank raises the overnight rate, which in turn affects the cost of borrowing for other financial institutions.
Thus, the ideal selection for 3 is D.
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