Explanation:
Yes, it is necessary to have a written code of conduct so that employees have an instrument that regulates and regularizes fraud situations in the company. The code of conduct is a necessary document so that employees can guide the ideal ethical behavior for a professional, as well as serving as a protection document for those who suffer an unethical act by third parties.
It is necessary, in addition to the written code of conduct, that behaviors be guided and valued when positive, starting with leaders, who must behave based on ethics and respect for employees. Through shared ethics, an organizational culture favorable to the development and motivation of employees is created.
The table below shows the marginal utilities in utils that Sarah derives from consuming two goods, snacks, and movies.
Quantity of Snacks Marginal Utility of Snacks Quantity of Movies Marginal Utility of Movies
0 - 0 -
1 20 1 50
2 18 2 35
3 15 3 24
4 12 4 20
5 10 5 15
6 8 6 10
Sarah has a limited weekly income of $50, and she spends it all on snacks and movies. Assume the price of snacks is $5 per unit, the price of a movie ticket is $10, and Sarah is a utility-maximizing consumer.
(a) Would Sarah be able to consume 3 snacks and 5 movies? Explain.
(b) How many snacks and movies will Sarah consume to maximize her utility? Explain.
(c) Calculate the total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies indicated in your answer in part (a). Show your work.
(d) Suppose Sarah's income increases to $60.
(i) What will happen to the marginal utility per dollar spent on movies?
(ii) Will Sarah be better off buying two more snacks or one more movie ticket? Explain.
Answer:
(a) No, Sarah would not be able to consume 3 snacks and 5 movies.
(b) Sarah will maximize her utility.
(c) The total utility Sarah will receive is 174 utils.
(d(i)) The marginal utility per dollar spent on movies will fall from 1.50 utils to 1.00 utils.
(d(ii)) Sarah will not be better off if she buys two more snacks or one more movie ticket.
Explanation:
Note: See the attached excel file for the calculation of marginal utility per dollar of Snacks and Movies.
(a) Would Sarah be able to consume 3 snacks and 5 movies? Explain.
No, because the total expenses would $65 would be greater than her weekly income of $50.
That is, if Sarah consumes 3 snacks and 5 movies, her total expenses would be:
Total expenses = (Units of snacks * Price of snacks) + (Units of movies * Price of movies) = (3 * $5) + (5 * $10) = $65.
Since the total expenses would $65 would be greater than her weekly income of $50, Sarah would not be able to consume 3 snacks and 5 movies.
(b) How many snacks and movies will Sarah consume to maximize her utility? Explain.
Sarah will maximize her utility at the point where marginal utility per dollar of Snacks is equal to the marginal utility per dollar of Movies. That is, where the following condition holds:
Marginal Utility of Snacks / Price of Snacks = Marginal Utility of Movies / Price of Movies
In the attached excel file, the above condition holds where Sarah consumes 4 snacks and 3 movies. At this point (see the red color in the attached excel file), we have:
Marginal Utility of Snacks / Price of Snacks = Marginal Utility of Movies / Price of Movies = 2.40
Therefore, Sarah will maximize her utility when she consumes 4 snacks and 3 movies. Because at this point, marginal utility per dollar of Snacks is equal to the marginal utility per dollar of Movies which is equal to 2.40.
(c) Calculate the total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies indicated in your answer in part (a). Show your work.
Total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies is the addition of the total utility from consuming utility maximizing quantities of the two goods.
The total utility from consuming a utility maximizing quantity of one good is the addition of the marginal utility from the first unit up to the utility maximizing units. From the attached excel file, we have:
Total utility from consuming utility maximizing quantity of Snacks = 20 + 18 + 15 + 12 = 65 utils
Total utility from consuming utility maximizing quantity of Movies = 50 + 35 + 24 = 109 utils
Therefore, we have:
Total utility from consuming the utility-maximizing combination of snacks and movies = 65 + 109 = 174 utils
(d(i)) Suppose Sarah's income increases to $60. What will happen to the marginal utility per dollar spent on movies?
To determine this, we assume that Sarah spends all her weekly income on movies alone. Therefore, we have:
Number of movies tickets when weekly income is $50 = $50 / Price of movie ticket = $50 / 10 = 5
Number of movies tickets when weekly income is $60 = $60 / Price of movie ticket = $60 / 10 = 6
Marginal utility per dollar spent on movies when weekly income is $50 = Marginal utility when 5 tickets is bought / Price of movie ticket = 15 / 10 = 1.50 utils
Marginal utility per dollar spent on movies when weekly income is $60 = Marginal utility when 6 tickets is bought / Price of movie ticket = 10 / 10 = 1.00 utils
Therefore, the marginal utility per dollar spent on movies will fall from 1.50 utils to 1.00 utils.
(d(ii)) Suppose Sarah's income increases to $60. Will Sarah be better off buying two more snacks or one more movie ticket? Explain.
If Sarah buys two snacks
From the attached excel file, this makes the total unit of snacks to increase from 4 to 6. This makes the marginal utility per dollar spent on snacks to fall from 2.40 to 1.60 while the marginal utility per dollar spent on movies still remains at 2.40.
This implies that Sarah will not be better off if she buys two more snacks because she is not maximizing her utility as the marginal utility per dollar spent on snacks of 1.60 is not equal to the marginal utility per dollar spent on movies of 2.40.
If Sarah buys one more movie ticket
From the attached excel file, this makes the total unit of movie ticket to increase from 3 to 4. This makes the marginal utility per dollar spent on movies to fall from 2.40 to 2.00 while the marginal utility per dollar spent on movies still remains at 2.40.
This implies that Sarah will not be better off if she buys one more movie ticket because she is not maximizing her utility as the marginal utility per dollar spent on snacks of 2.40 is not equal to the marginal utility per dollar spent on movies of 2.00.
A work schedule lists all of the tasks that must be done to complete a recipe, and when they are to be done. true/false
Answer:
True
Explanation:
A work schedule lists all of the tasks that must be done to complete a recipe, and the time that each and everyone of them are meant to be done.
Work schedule helps individuals keep track of pending activities as it’s common knowledge for individuals to forget about some things and this also helps to promote and ensure accountability and hard work.
Firms that were successful in the past can fail today because A) they keep pace with changes in the nature of competition. B) the company strategy is outdated. C) their financial situation is resilient. D) management monitors the relevant environmental factors regularly.
Answer:
b
Explanation:
If a company's strategy is outdated, the company might fail today.
For example, let us assume that all companies in an industry advertise on social media and tailor their products to the teenagers. But a company continues to advertise only on radio and newspaper. Very soon the company will fail.
Or if a media company doesn't incorporate social media to reach customers. With less people reading newspaper, if the company sticks only to newspapers, soon it would fail
other options contribute to success of a firm
Jiminez, Inc., had the following transactions during the month of March, current year. Prepare an income statement based on this information, being careful to include only those items that should appear in that financial statement.
Question Completion:
Cash received from bank loans was $10,000.
Revenues earned and received in cash were $9,000.
Dividends of $4,000 were paid to stockholders.
Expenses incurred and paid were $5,600.
Answer:
Jiminez, Inc.
Income Statement for the month ended March 31:
Revenue $9,000
Expenses 5,600
Net income $3,400
Dividends 4,000
Retained earnings during the year ($600)
Explanation:
Jiminez, Inc. paid more dividends to stockholders this month than it actually generated in net income. The excess amount of dividends must be from retained earnings carried forward from the previous month. In preparing the income statement for the month of March, Jiminez, Inc. must deduct all the expenses from its revenue to obtain the net income before tax. The bank loan does not form part of the items for the preparation of the income statement, as only temporary accounts are considered.
Currently, a company produces parts per day to meet demand. A standard container of the parts under consideration holds items. It takes days to receive the parts once a card is released. If the company wants a safety stock of of these parts, how many kanban cards are needed?
Answer:
6 kanban cards
Explanation:
Note: The full question is attached as picture below
D = 1800 parts/day
C = 175 items
LT = 0.25 days
SS = 650 Parts
N = {D*LT + SS]/C
N = [(1,800*0.25) + 650] / 175
N = (450 + 650) / 175
N = 1100 / 175
N = 6.29
N ≅ 6
So, if the company wants a safety stock of 650 of these parts, approximately, 6 kanban cards are needed.
E4-3 Recording Initial Transactions and Subsequent Adjustments [LO 4-1, LO 4-2] During the month of September, the Texas Go-Kart Company had the following business activities: On September 1, paid rent on the track facility for six months at a total cost of $7,800. On September 1, received $46,800 for season tickets for 12-month admission to the race track. On September 1, booked the race track for a private organization that will use the track one day per month for $1,900 each time, to be paid in the following month. The organization uses the track on September 30. On September 1, hired a new manager at a monthly salary of $2,400, to be paid the first Monday following the end of the month. Required: Prepare the journal entry, if any, required to record each of the initial business activities on September 1. Prepare the adjusting journal entries, if any, required on September 30.
Answer:
Texas Go-Kart Company
1. Journal Entry on September 1:
Debit Prepaid Rent $7,800
Credit Cash Account $7,800
To record the prepayment of rent expenses for six months.
Debit Cash $46,800
Credit Deferred Service Revenue from Tickets $46,800
To record the receipt of cash for season tickets for 12 months.
September 30:
Debit Accounts Receivable $1,900
Credit Service Revenue $1,900
To record the provision of track services.
September 30:
Debit Salaries Expense $2,400
Credit Salaries Payable $2,400
To record the expense for the month.
Debit Rent Expense $5,200
Credit Prepaid Rent $5,200
To record the rent expense for 4 months.
Debit Deferred Service Revenue from Tickets $15,600
Credit Service Revenue from Tickets $15,600
To record the earned revenue from tickets for 4 months.
Explanation:
Journal entries have proved to be useful in record business transactions as they occur on a daily basis. They show the accounts involved in each transaction and the ones to be debited and credited as the case may be. Journal entries are also used to adjust entries at the end of the period. These adjustments help to bring the accounting records to align with the accrual basis of accounting, ensuring that the matching principle is observed.
Frisco Company's Merchandise Inventory account at year-end has a balance of $62,115, but a physical count reveals that only $61,900 of inventory exists. The adjusting entry to record this $215 of inventory shrinkage is: Multiple Choice'
Answer:
Increase on cost of goods sold by $215, decrease in merchandize by $215.
Explanation:
With regards to the above information, the cost of goods sold will increase by $215, while the merchandize value would also decrease by $215.
Here, the books will be even out so that it would show there was a shrinkage at year end and beyond that which was purchased to have taken place.
Using time and materials pricing, what is the total price for a job requiring 2 direct labor hours and $59 of materials
Answer:
b. $221.5
Explanation:
Note: The similar question is attached as picture below
Particulars Amount
Materials $62
Materials markup (25% of $62) $15.5
Direct Labor (2 Hours at $72 per hour) $144
Total price for Job $221.5
Maurice is buying a property from Robert. At the initial property viewing, Robert tells Maurice that the property is 4.1 acres. They agree to a price, and enter into a purchase and sale agreement. Prior to closing, Maurice orders a survey. The surveyor discovers that the property is only 3.92 acres in size. Maurice and Robert's purchase and sale agreement is most likely:
Answer:
The contract is voidable.
Explanation:
The survey discovered a misrepresentation in the consideration (the size of the land), so that means that Maurice can choose to void it or not. A voidable contract is a contract that can be voided. In this case, the injured party is only Maurice, so only he can void it, or choose not to. They might negotiate a discount or something, it is up to him.
Everdeen Inc. has a 90-day operating cycle. If its average age of inventory is 35 days, how long is its average collection period
Answer:
8.6 days
Explanation:
The formula for average collection period
= Average received turnover ratio / 365 daya
= 90 × 35 / 365
= 8.6 days
Vinny is unmarried and provides more than half the support for his cousin Gambini, who lives in Vinny's home for the entire year. Gambini has a part-time pizza delivery job and made three thousand dollars during the year. Vinny will qualify for head of household filing status.
a. True
b. False
Answer:
a. True
Explanation:
Since Vinny is unmarried also it provides more than the half of the support for his cousin whose name is Gambini and she is doing part time job and made three thousand dollars in a year
So vinny would qualify the household head for flining the status
Therefore the given statement is true
hence, it is not false
Restricted stock is Multiple Choice a special type of stock that is not transferable from the current holder to others until specific conditions are satisfied. a special type of stock that can be converted into corporate bonds after a specific amount of time has elapsed. a special type of stock that is a result of offering an employee stock ownership plan.
Answer:
a special type of stock that is not transferable from the current holder to others until specific conditions are satisfied
Explanation:
The restricted stock is the stock or the securities that are restricted means that they are not fully transferable when the specific conditions is not fulfilled. When these conditions would be fulfilled so these stock would not be considered as a restricted and they are freely transferable
Therefore the first option is correct
True or False: In a competitive labor market, increasing the minimum wage always raises the number of employed workers.
It is FALSE that in a competitive labor market, increasing the minimum wage always raises the number of employed workers.
This is because when the minimum wage increases, the cost of employing and maintaining employees will increase.This situation would, however, reduce the capacity at which firms or companies can employ more staff.Thus, the unemployment rate would increase, as there will be less financial means to employ additional workers.Hence, in this case, it is concluded that in a competitive labor market, increasing the minimum wage always lowers the number of employed workers.
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You and a friend have developed a weight loss supplement that speeds weight loss by 20%. You plan to form a business to manufacture and market the supplement. You want to minimize taxes but your prime concern is potential lawsuits from individuals who might get sick from taking the supplement.
1. What form of organization (partnership, LLC, corporation, etc.) will you choose?
2. What are the advantages and disadvantages of your choice?
Answer:
1. I would choose a limited liability company (LLC).
2. A LLC is a hybrid between a partnership and a corporation. The firm is a pass through entity, meaning that the owners are taxed directly (no corporate tax). But it also provides limited liability, so the owners are not personally liable for the firm's obligations.
Explanation:
Potter Corporation produces one product. The following per unit cost information is available:
Direct materials 7.00$
Direct labor 15.00
Variable overhead 8.00
Variable Selling and Admin 2.00
Fixed overhead costs are $100,000 per peiod and fixed selling and administrative costs are$70,000 per period.The selling price is $70 per unit.
Required:
Prepare an absorption costing (traditional) income statement assuming:
a. Production is 8,000 units and sales are 8,000 units.
b. Production is 8,000 units and sales are 9,000 units.
c. Production is 8,000 units and sales are 6,000 units.
Answer:
(a) Profit = $134,000
(b) Profit = $159,500
(c) Profit = $83,000
Explanation:
According to the scenario, calculation are as follows:
Variable cost of goods sold = Total variable production cost + fixed OH per unit
= ( $7 + $15 + $8) + ( $100,000 ÷ 8,000)
= $30 + $12.5
= $42.5
So, Absorption costing income statement are as follows:
(a) Production is 8,000 units and sales are 8,000 units
Sales = 8,000 × $70 = $560,000
Less: Variable expense
Variable cost of goods sold = 8,000 × $42.5 = 340,000
Less : Variable selling and admin expense
Variable selling and admin expense = 8,000 × $2 = $16,000
Fixed selling expense = $70,000
Profit = $134,000
(b) Production is 8,000 units and sales are 9,000 units
Sales = 9,000 × $70 = $630,000
Less: Variable expense
Variable cost of goods sold = 9,000 × $42.5 = $382,500
Less : Variable selling and admin expense
Variable selling and admin expense = 9,000 × $2 = $18,000
Fixed selling expense = $70,000
Profit = $159,500
(c) Production is 8,000 units and sales are 6,000 units
Sales = 6,000 × $70 = $420,000
Less: Variable expense
Variable cost of goods sold = 6,000 × $42.5 = $255,000
Less : Variable selling and admin expense
Variable selling and admin expense = 6,000 × $2 = $12,000
Fixed selling expense = $70,000
Profit = $83,000
Narrow Falls Lumber has total assets of $913,600, total debt of $424,500, net sales of $848,600, and net income of $94,000. The tax rate is 21 percent and the dividend payout ratio is 30 percent. What is the firm's sustainable growth rate?
Answer:
The firm's sustainable growth rate is 13%.
Explanation:
The firm's sustainable growth rate can be calculated using the following formula:
Sustainable growth rate = Retention Rate * Return on Equity ............. (1)
Where;
Dividend payout ratio = 30%, or 0.30
Retention rate = 1 - dividend payout ratio = 1 - 0.30 = 0.70
Shareholder's equity = Total assets - Total debt = $913,600 - $424,500 = $489,100
Return on equity = Net income / Shareholder's equity = $94,000 / $489,100 = 0.19
Substituting the relevant values into equation (1), we have:
Sustainable growth rate = 0.70 * 0.19 = 0.13, or 13%
Therefore, the firm's sustainable growth rate is 13%.
With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 4 percent. But if the rate of inflation was anticipated to be 3 percent, the bank would most likely charge the firm an annual interest rate of Multiple Choice 1 percent. 7 percent. 3 percent. 4 percent.
Answer:
b. 7 percent
Explanation:
Annual interest to charge = Interest rate + Rate of inflation anticipation
Annual interest to charge = 4% + 3%
Annual interest to charge = 7%
The bank would most likely charge the firm an annual interest rate of 7% due to the anticipation of inflation.
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $20,000 bill from her accountant for consulting services related to her small business. Reese can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an after-tax rate of return of 12 percent on her investments. a. What is the after-tax cost if she pays the $20,000 bill in December? b. What is the after-tax cost if she pays the $20,000 bill in January? Use Exhibit 3.1. c. Should Reese pay the $20,000 bill in December or January? multiple choice 1 December January d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $20,000 bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.) e. Should Reese pay the $20,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year? multiple choice 2 December January
Answer:
a. What is the after-tax cost if she pays the $20,000 bill in December?
= $20,000 x (1 - 32%) = $13,600
b. What is the after-tax cost if she pays the $20,000 bill in January?
total after tax cost (including investment revenue):
= $20,000 x (1 - 35%) = $13,000
= -$20,000 x 12% x 1/12 x (1 - 35%) = -$130
= $12,870
c. Should Reese pay the $20,000 bill in December or January?
January, since the after tax cost is lower
d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $20,000 bill in January?
= $20,000 x (1 - 24%) = $15,200
= -$20,000 x 12% x 1/12 x (1 - 24%) = -$152
= $15,048
e. Should Reese pay the $20,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year?
December, since the after tax cost is lower
Which of the following is the most accurate statement regarding managers in today's world? Group of answer choices There is a greater need for customer focus than ever before. Managers are found almost exclusively in large corporations that have more than 500 employees. Managers are found almost exclusively in for-profit organizations. More than half of today’s managers are women.
Answer:
There is a greater need for customer focus than ever before.
Explanation:
The following selected amounts are available for Vizio Company. Retained earnings (beginning) $1,600 Net loss 300 Cash dividends declared 200 Stock dividends declared 200 What is its ending retained earnings balance
Answer:
$900
Explanation:
With regards to the above, the ending retained earnings balance is calculated as
= Beginning retained earnings - Net loss - Cash dividends declared - Stock dividends declared
= $1,600 - $300 - $200 - $200
= $900.
Therefore, the ending retained earnings balance is $900
Noncash items refer to: Accrued expenses. Inventory items purchased using credit. The ownership of intangible assets such as patents. Expenses which do not directly affect cash flows. Sales which are made using store credit
Answer:
The ownership of intangible assets such as patents.
Explanation:
Non cash items are items that do not include outlay of cash . e.g. depreciation , intangible assets
The balance in Accounts Receivable at the beginning of the accounting period was $13,800. During the period, services provided on account totaled $64,200. Collections on account totaled $69,300. The balance in Accounts Receivable at the end of the period was:_______
Answer:
$18,900
Explanation:
With regards to the above, Accounts receivables balance at the end of the period is computed as
= Accounts receivables at the beginning of the accounting period + Collections - Service provided during the period
= $13,800 + $69,300 - $64,200
= $18,900
14. If a company issues common stock for $40,000 and uses $30,000 of the cash to
purchase a truck,
a. assets will be increased by $10,000.
b. equity will be reduced by $40,000.
assets will be increased by $40,000.
d. assets will be unchanged.
If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck, assets will be increased by $10,000. Thus, option 'A' is the correct option.
What are common stocks?A form of corporate equity ownership and a kind of security is common stock. Outside of the United States, the words voting share and ordinary share are widely used. In the UK and other Commonwealth nations, they are referred to as equity shares or ordinary shares. This kind of share entitles the bearer to a portion of the company's income as well as voting rights on corporate policy and the make-up of the board of directors.
Any specific corporate assets do not belong to common stockholders; instead, they are owned equally by all shareholders. In the event that a corporation issues both ordinary and preference shares, the preference owners will be paid dividends first.
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The shelf life of salmon is 2 days. You received a delivery of 55 lbs. You sell 30 lbs each day. What is your waste after 2
days?
a) 2 lb
b) 5 lb
c) Non waste because you ran out of salmon
As a potential investor in a firm or perhaps the buyer of a business, would it be advisable for you to evaluate the company’s financial statements? Why or why not? What key information would you seek from a firm’s financial statements?
Answer:
True
Explanation:
In simple words, the financial statements of a company refers to the reports which depicts the activity of the business and their relative efficient. It shows the position of the company in monetary wise and other relevant information such as future plans and expectations.
As an investor, one wants to increase his or her money while getting some returns periodically. Thus, to evaluate the capability of a company to do so, the investor should evaluate the financial statement for sure.
PLEASE HELP HURRY!! 20 POINTS!! WILL MARK BRAINLIEST IF CORRECT!
You are a concerned constituent, and you want to help your House Representatives member or Senator draft a bill that would help the federal government raise revenue. Where should you submit the bill?
directly to the President for his signature
either to your Congressional District Representative or Senator
only to your Senator
only to your Representative
Answer:
to the president
Explanation:
because he has to see if he has to veto or pass it
Flick Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours. The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 for variable overhead and $30,000 for fixed overhead. The predetermined overhead rate, including both fixed and variable components, is $2.50 per direct labor-hour. The standards call for two direct labor-hours per unit of output produced. Last year, the company produced 11,500 units of product and worked 22,000 direct labor-hours. Actual costs were $22,500 for variable overhead and $31,000 for fixed overhead.
Required:
a. What is the denominator level of activity?
b. What were the standard hours allowed for the output last year?
c. What was the variable overhead spending variance?
d. What was the variable overhead efficiency variance?
e. What was the fixed overhead budget variance?
f. What was the fixed overhead volume variance?
Answer:
Variable rate = 20000 /20000 = $1 per DLH
Fixed rate = 30000/20000 = $1.5 per DLH
Predetermined overhead rate = Variable rate + Fixed rate
Predetermined overhead rate = 2.5
a. Predetermined overhead rate = Estimated total fixed + variable overhead / Estimated level of activity
2.5 = (20,000 + 30,000] / Estimated level of activity
2.5 = 50,000 / Estimated level of activity
Estimated level of activity = 50,000 /2.5
Estimated level of activity = 20,000 Direct labor hours
b. Standard hours = Number of actual output * Standard hours per unit
Standard hours = 11,500 units * 2 hours
Standard hours = 23,000 hours
c. Variable overhead spending variance = Actual variable cost - [Actual hours *SR]
= 22500 - [22000*1]
= 22500 -22000
= 500 U
d. Variable overhead efficiency variance =SR[AH-SH allowed for actual output]
= 1*[22000 - (11500 units * 2)]
= 1*[22000 - 23000]
= 1*1000
= 1000 F
e. Fixed overhead budget variance = Actual fixed cost -budgeted fixed overhead cost
= 31000- 30000
= 1000 U
f. Fixed overhead volume variance = Budgeted fixed overhead cost - Standard fixed overhead cost allowed for actual output
= 30000 - [11500 units* 2SH*1.5 rate]
= 30000 - 34500
= 4500 F
Transaction costs include costs of negotiating contracts with other firms. cost of enforcing contracts. the existence of asset-specificity. All of these
Answer:
Negotiating contracts with other firms
Explanation:
Transaction costs are initial cost incurred entering into a contract with other parties. These include brokers fees and commissions. Thus, these costs are incurred when negotiating contracts with other firms.
If the volume of production is increased over the level planned, the cost per unit would be expected to:
Answer:
Decrease for fixed costs and remain unchangedchange for variable cost.
Explanation:
As the level of production gets increases, we will have the fixed cost per unit to fall, that is it would decrease. But The total fixed cost would remain the same.
At an increase in production the variable cost would be fixed or constant since it is constant amount per unit produced. The variable cost per unit would never change due to changes in production.
Currently, a company has units of safety stock for a product located in warehouses. The company is contemplating expanding to warehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional $ in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs $, is the expansion to warehouses a potentially good idea?
Answer:
The full question is "Currently, a company has 59,000 units of safety stock for a product located in 9 warehouses. The company is contemplating expanding to 28 warehouses. The company believes that this increased safety stock inventory investment with the new locations will result in an additional $950,000 in revenue due to improved customer service. Assuming that each unit in safety stock inventory costs $4, is the expansion to 28 warehouses a potentially good idea? The proposed plan Y sense for the company because the change in total profit is $. Enter your response rounded to the nearest dollar and include a minus sign if appropriate.)"
Current Total safety stock = 59,000
No. of warehouses = 9
Safety stock per warehouse = 59,000/9 = $6,555.56
New number of warehouses = 28
Increase in number of warehouses = 28 - 9 = 19
Increase in number of safety stock = 19 * 6,555.56 = 124,555.64
Cost of each unit of safety stock = $4
Cost of increased safety stock = $4 * 124,555.54
Cost of increased safety stock = $498,222.56
Additional revenue = $950,000
Since, additional revenue > additional cost of safety stock, the additional warehouses is a good idea.
Increase in profit = Additional revenue - Increased cost
Increase in profit = $950,000 - $498,222.56
Increase in profit = $451,777.54
Hence, The proposed plan makes sense for the company because the change in total profit is $451,777.54
