For Frye Enterprises selling its own brand notebook computers with a $450 ordering cost, $170 carrying cost, and an annual demand of 1,200 units, the EOQ (Optimal order quantity) is a) 77 units. This results in b) 15.58 orders per year, with a total order cost of c) $6,900. The average inventory is approximately d) 38.5 units, and the total holding cost is e) $6,545.
a) To calculate the EOQ, we use the formula: EOQ = √((2 × Annual Demand × Ordering Cost) / Carrying Cost). Substituting the given values, we find EOQ = √((2 × 1,200 × $450) / $170) ≈ 76.69 units, which we can round up to 77 units.
b) To calculate the number of orders per year, we divide the annual demand by the EOQ: Orders per year = Annual Demand / EOQ = 1,200 / 77 ≈ 15.58 orders per year.
c) The total order cost is calculated by multiplying the number of orders per year by the ordering cost: Total Order Costs = Orders per year × Ordering Cost = 15.58 × $450 = $6,900.
d) The average inventory is half of the EOQ: Average Inventory = EOQ / 2 ≈ 77 / 2 ≈ 38.5 units.
e) The total holding cost is calculated by multiplying the average inventory by the carrying cost: Total Holding Costs = Average Inventory × Carrying Cost = 38.5 × $170 = $6,545.
Therefore, the EOQ is 77 units, resulting in 15.58 orders per year, a total order cost of $6,900, an average inventory of approximately 38.5 units, and total holding costs of $6,545.
Learn more about Optimal order quantity here:
https://brainly.com/question/32324517
#SPJ11
The primary objective of vertical analysis is:
to highlight changes and assess trends in individual items over time
to highlight relationships between two or more-line items on the financial statements
to highlight relationships between components of the financial statements
all of the above
The primary objective of vertical analysis is to highlight changes and assess trends in individual items over time. It is an important tool for financial statement analysis.
Vertical analysis is a financial statement analysis tool. It is used to assess a company's financial condition. It helps highlight the relationships between components of the financial statements by comparing them to a common factor.It is also known as a common-size analysis. This is because it converts financial data to a common size. The common factor is typically net sales or revenue.
The objective of vertical analysis is to highlight changes and assess trends in individual items over time. It does this by converting each line item in a financial statement to a percentage of a common factor. This allows for an easy comparison between line items. Vertical analysis is an important tool for financial statement analysis.
To learn more about financial statement visit:
https://brainly.com/question/14951563
#SPJ11.
The primary objective of vertical analysis is to highlight changes and assess trends in individual items over time. Thus, option (a) is correct.
Vertical analysis is a technique for analyzing financial statements when each line item is listed as a percentage of a base amount. Line items on a balance sheet can be expressed as a percentage of total assets or total liabilities, whereas line items on an income statement can be expressed as a percentage of gross sales.
The main benefit of vertical analysis is that it simplifies the comparison and interpretation of financial accounts. Given that they are expressed as percentages, it makes it easier to understand how individual items on a balance sheet relate to the bottom line.
Therefore, option (a) is correct.
Learn more about on primary objective, here:
https://brainly.com/question/30202938
#SPJ4
The new James Bond movie appeals to many people, including Generation X. Given your knowledge of Generation X, which aspect of the movie's marketing is most likely to appeal to that generation in particular? older celebrities at the movie premiere who look young, active and fit the hype and advertising surrounding the movie movie tie-ins with Axe body spray (a product intended for young men to attract as many women as possible) proceeds from the movie donated to international relief organizations sales promotions sent through text messages
Based on the characteristics of Generation X, the aspect of the movie's marketing that is most likely to appeal to that generation in particular is older celebrities at the movie premiere who look young, active, and fit.
Generation X, born between the early 1960s and early 1980s, appreciates authenticity and relatability. They often value experiences and admire individuals who age gracefully while maintaining a youthful and active lifestyle. By featuring older celebrities who embody these qualities, the marketing of the movie appeals to Generation X's desire for authenticity and resonates with their own experiences of aging and staying vibrant.
While the other options such as the hype and advertising surrounding the movie, movie tie-ins with Axe body spray, and sales promotions sent through text messages may also attract attention from Generation X to some extent, the aspect of older celebrities aligns more closely with their values and aspirations. It taps into their appreciation for individuals who embrace the aging process with grace and vitality, reflecting Generation X's own journey of aging and maintaining a youthful spirit.
Learn more about Marketing here:
brainly.com/question/31179706
#SPJ11
Unions were tremendously successful in the late 19th and early 20th centuries because many manufacturing workers were low-skilled and spent most if not all of their working lives in a single manufacturing plant and with the same company. Today, the American economy is far more knowledge-based. Think about what compensation strategy would prove more effective today: the incentive-based, more knowledgeable worker, or the lower wage-base with more self-service? Based on what approach you choose, how would organized labor be affected? Is a knowledge-based economy yet another reason why unions continue to witness reduced membership in the United States?
In the late 19th and early 20th centuries, unions were very successful due to the nature of work, which was mostly low-skilled. Workers spent most of their lives in the same manufacturing plant and with the same employer. The American economy, on the other hand, is now primarily knowledge-based, requiring specialized knowledge and skills, as well as experience.Unions have used collective bargaining agreements as a way to negotiate better compensation for employees.
However, in today's economy, the incentive-based, more knowledgeable worker compensation strategy is more effective than the lower wage-base with more self-service. The incentive-based compensation structure motivates employees to improve their skills and acquire new knowledge, resulting in improved job performance. A more highly skilled and motivated workforce translates into improved productivity, which benefits both the employee and the employer.Organized labor will be affected depending on which approach is selected. Incentive-based compensation strategies could encourage unions to negotiate for higher salaries and other incentives, such as profit-sharing, to be included in collective bargaining agreements. However, self-service compensation strategies can result in unions becoming irrelevant in some workplaces because employers are more likely to offer lower salaries and fewer benefits.A knowledge-based economy is a significant factor in the decrease in union membership in the United States. As previously stated, workers in today's economy must be skilled and knowledgeable, which puts them in a stronger position to bargain for better working conditions, wages, and benefits. With this in mind, some workers may not believe that a union is necessary to secure their livelihoods, which may be why union membership has decreased.
For more question the late 19th and early 20th centuries
https://brainly.com/question/21509833
#SPJ8
Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He has found one priced at $31,000. The dealer has told Tim that if he can come up with a down payment of $6,300, the dealer will finance the balance of the price at a 7% annual rate over 2 years (24 months). (Hint: Use four decimal places for the monthly interest rate in all your calculations.) a. Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month) payment amount be? b. Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 3.8% ? Time to accumulate a given sum Personal Finance Problem Manuel Rios wishes to determine how long it will take an initial deposit of $8,000 to double. a. If Manuel earns 9% annual interest on the deposit, how long will it take for him to double his money? b. How long will it take if he earns only 6% annual interest? c. How long will it take if he can earn 11% annual interest?
For Tim Smith's car loan a. If Tim accepts the dealer's offer to finance the balance of the car price at a 7% annual interest rate over 2 years (24 months), his monthly payment amount will be approximately $1,093.67. b. If the dealer were willing to finance the balance at an annual rate of 3.8%, Tim's monthly payment amount would be approximately $1,070.09.
For Manuel Rios' deposit: a. If Manuel earns a 9% annual interest rate, it will take approximately 8.043 years for his initial deposit of $8,000 to double. b. If Manuel earns a 6% annual interest rate, it will take approximately 11.897 years for his initial deposit to double. c. If Manuel can earn an 11% annual interest rate, it will take approximately 6.718 years for his initial deposit to double.
For the first problem:
a. To calculate Tim's monthly payment amount, we need to use the formula for the monthly payment on a loan. The formula is:
PMT = (r * PV) / (1 - (1 + r)⁻ⁿ)
Where:
PMT = Monthly payment amount
r = Monthly interest rate (7% annual rate divided by 12 months = 0.0058)
PV = Present value of the loan (car price minus down payment) = $31,000 - $6,300 = $24,700
n = Number of months (24)
By substituting the values into the formula, we can calculate Tim's monthly payment:
PMT = (0.0058 * $24,700) / (1 - (1 + 0.0058)⁻²⁴)
Using a financial calculator or spreadsheet, the monthly payment amount is approximately $1,093.67.
b. To calculate the monthly payment amount at an annual interest rate of 3.8%, we follow the same formula as above, but with a different interest rate:
r = Monthly interest rate (3.8% annual rate divided by 12 months = 0.00317)
Substituting the values into the formula, we find that the monthly payment amount would be approximately $1,070.09.
For the second problem:
a. To determine how long it will take for an initial deposit of $8,000 to double at an annual interest rate of 9%, we can use the compound interest formula:
FV = PV * (1 + r)ⁿ
Where:
FV = Future value (double the initial deposit = $8,000 * 2 = $16,000)
PV = Present value ($8,000)
r = Annual interest rate (9%)
n = Number of years (unknown)
By rearranging the formula and solving for n, we have:
n = log(FV / PV) / log(1 + r)
Substituting the values into the formula, we find that it will take approximately 8.043 years for the initial deposit to double at a 9% annual interest rate.
b. Using the same formula as above, but with a 6% annual interest rate, we find that it will take approximately 11.897 years for the initial deposit to double.
c. Similarly, with an 11% annual interest rate, it will take approximately 6.718 years for the initial deposit to double.
To know more about monthly payment:
https://brainly.com/question/26192602
#SPJ4
provide a threats or safeguard of this Casestudy Case Study 5: Question: You have recently been promoted as a partner in the assurance department of a firm of chartered accountants. Your portfolio of clients includes Shah Motors (Pvt.) Limited (SML), a leading car dealer. Qaiser, a senior manager assurance in your firm, has been auditing SML for the past 7 years. While updating you about SML, Qaiser informed about the following. (1) On the request of an audit team member, CFO of SML has helped the team member's brother in securing early delivery of a vehicle ordered by him on preferential basis. (ii) SML has hired a new Head of Marketing. His son Amjad is expected to be included as a junior team member in SML's audit team. Required: (ICAP, CAF 08 Level - Autumn 2018, Q#5a) Discuss the possible threats which may arise, their significance and the safeguards required to mitigate those threats (10)
There are several threats that may arise in the given case study, along with their significance and the safeguards required to mitigate those threats.
These threats are related to independence, objectivity, and conflicts of interest in the audit engagement. The potential threats and corresponding safeguards are as follows:
1. Self-interest threat: The CFO of SML helping the audit team member's brother in securing early delivery of a vehicle creates a self-interest threat. This can compromise the auditor's objectivity and independence.
Safeguard: The auditor should disclose this situation to the appropriate level of management within the firm and take necessary actions to ensure that the audit team member is not influenced or biased in performing their duties. The firm should reinforce the importance of independence and objectivity to the audit team.
2. Familiarity threat: The inclusion of the Head of Marketing's son as a junior team member in SML's audit team can create a familiarity threat. This may result in the auditor being too sympathetic or lenient towards SML, affecting their objectivity.
Safeguard: The firm should have policies and procedures in place to ensure that audit team members are assigned based on their competence, qualifications, and independence. The assignment of audit team members should be reviewed and approved by higher levels of management to minimize any potential familiarity threat.
3. Management influence threat: The fact that the CFO of SML has assisted a team member's brother may indicate potential management influence over the audit team, which can compromise the independence and objectivity of the audit engagement.
Safeguard: The firm should establish strong ethical guidelines and codes of conduct that clearly define the boundaries of acceptable relationships and interactions between auditors and clients. The audit team should have direct communication channels with higher levels of management in the firm to report any attempts of management influence.
4. Monitoring and review threat: The long-term association of Qaiser, the senior manager assurance, with SML for the past 7 years may create a threat to the effectiveness of monitoring and review processes. This could lead to complacency or familiarity in conducting the audit.
Safeguard: The firm should have rotation policies in place that periodically rotate audit engagement partners and senior managers. This ensures fresh perspectives, enhances independence, and maintains the effectiveness of monitoring and review processes.
In conclusion, the threats identified in the case study can significantly impact the independence, objectivity, and effectiveness of the audit engagement.
Implementing the suggested safeguards, such as disclosing conflicts of interest, assigning audit team members based on competence, establishing ethical guidelines, and implementing rotation policies, will help mitigate these threats and uphold the integrity of the audit process.
To learn more about audit click here:
brainly.com/question/32739718
#SPJ11
"The U.S. central bank raised interest rates by a half percentage point, or 50 basis points, on May 4, the first half-point increase since 2000. Officials have signaled similar moves are very likely at their next two meetings, in June and July." (WSJ, May 30, 2022)
Consider a scenario that your firm is faced with paying a variable rate debt obligation for the next 18 months. Identify strategies, if necessary, that could reduce the risk to your firm. (Feel free to bring your idea or use the material covered in our lecture like interest rate futures, foreign loan, and interest rate swaps)
In the case of paying a variable rate debt obligation for the next 18 months, there are several strategies that firms can utilize to minimize risk. The Federal Reserve has begun to increase interest rates, so a firm should examine its exposure to interest rate risk and prepare accordingly.
Foreign Loans: Borrowing in a foreign currency can help reduce a firm's risk by protecting them against fluctuations in the domestic currency. When borrowing from a foreign country, firms should weigh the cost of the loan against the expected changes in the exchange rate.
Interest Rate Swaps: Firms can enter into interest rate swaps with counterparties to swap interest payments for a specified period. Interest rate swaps can help firms secure a fixed interest rate and reduce interest rate risk. Thus, firms can utilize these strategies to minimize risk when paying a variable rate debt obligation.
To know more about Interest Rate Swaps visit:-
https://brainly.com/question/32067816
#SPJ11
Which of the following would be subject to CPP contributions? a) Pension Payments b) Lump Sum payments from Pension Fund c) Director's fees d) Retiring Allowance e) Allocated Tips f) Controlled Tips g) Sick Leave - Paid h) Research Grants i) Gp Term Life Ins Taxable Benefit j) Car Allowance - Taxable k) Employer Paid - Wage Loss Amount Paid to Employee
The subject to CPP contributions is Pension Payments, Director's fees, Retiring Allowance, Retiring Allowance, Sick Leave etc.
Pension payments, lump sum payments from pension funds, and retiring allowances are also considered to be earned income and are therefore subject to CPP contributions.
The following items would be subject to CPP (Canada Pension Plan) contributions:
a) Pension Payments: Pension payments are subject to CPP contributions.
c) Director's fees: Director's fees are subject to CPP contributions.
d) Retiring Allowance: Retiring allowances are subject to CPP contributions.
g) Sick Leave - Paid: Sick leave paid by the employer is subject to CPP contributions.
i) Group Term Life Insurance Taxable Benefit: Group term life insurance taxable benefits are subject to CPP contributions.
k) Employer Paid - Wage Loss Amount Paid to Employee: Employer-paid wage loss amounts paid to employees are subject to CPP contributions.
The following items would not be subject to CPP contributions:
b) Lump Sum payments from Pension Fund: Lump sum payments from a pension fund are not subject to CPP contributions.
e) Allocated Tips: Allocated tips are not subject to CPP contributions.
f) Controlled Tips: Controlled tips are not subject to CPP contributions.
h) Research Grants: Research grants are not subject to CPP contributions.
j) Car Allowance - Taxable: Car allowance (taxable) is not subject to CPP contributions.
It's important to note that the CPP rules and regulations may change over time, so it's always recommended to consult the latest guidelines or seek advice from a qualified professional for accurate and up-to-date information.
To learn more about CPP click here; brainly.com/question/31649464
#SPJ11
Your bank pays 3% interest per year. You put $1,000 in the bank today and $650 more in the bank in one year. How much will you have in the bank in 2 years? In two years, the amount that you will have is $ (Round to the nearest cent.)
In two years, you will have approximately $1,722.55 in the bank after depositing $1,000 initially and an additional $650 after one year, both earning 3% interest.
To calculate the total amount in the bank after two years, we need to consider the initial deposit and the additional amount deposited after one year, both earning 3% interest per year.
Initial deposit after two years:
Initial Deposit = $1,000
Interest = Initial Deposit * Interest Rate = $1,000 * 0.03 = $30
Amount after one year:
Additional Deposit = $650
Interest = Additional Deposit * Interest Rate = $650 * 0.03 = $19.50
Total amount in the bank after two years:
Total Amount = Initial Deposit + Interest + Additional Deposit + Interest = $1,000 + $30 + $650 + $19.50 = $1,699.50
Rounding to the nearest cent:
Total Amount = $1,722.55
Therefore, after two years, you will have $1,722.55 in the bank.
To learn more about Additional Deposit here
https://brainly.com/question/29744799
#SPJ4
Network Communications has total assets of \( \$ 2,090,000 \) and current assets of \( \$ 623,000 \), it turns over its fixed assets five times a year. It has \( \$ 375,000 \) of debt. Its return on s
The return on stockholders' equity for Network Communications is approximately 4.88%.
To calculate the return on stockholders' equity (ROE), we need to determine the net income and average stockholders' equity.
Given information:
Total assets = $2,090,000
Current assets = $623,000
Debt = $375,000
Return on sales = 4%
First, let's calculate the net income using the return on sales and total assets:
Net income = Return on sales * Total assets
Net income = 0.04 * $2,090,000
Next, let's calculate the average stockholders' equity:
Total assets = Stockholders' equity + Debt
Stockholders' equity = Total assets - Debt
Average stockholders' equity = (Beginning stockholders' equity + Ending stockholders' equity) / 2
Since we don't have information about the beginning and ending stockholders' equity, we'll assume they are the same for simplicity.
Average stockholders' equity = Stockholders' equity = Total assets - Debt
Average stockholders' equity = $2,090,000 - $375,000
Now, we can calculate the return on stockholders' equity:
ROE = Net income / Average stockholders' equity
ROE = (0.04 * $2,090,000) / ($2,090,000 - $375,000)
ROE = $83,600 / $1,715,000
ROE ≈ 4.88%
Therefore, the return on stockholders' equity for Network Communications is approximately 4.88%.
To know more about debt here
https://brainly.com/question/25035804
#SPJ4
Network Communications has total assets of $2,090,000 and current assets of $623,000. It turns over its fixed assets five times a year. It has $375,000 of debt. Its return on sales is 4 percent.
What is its return on stockholders' equity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2
decimal places.)
Return on stockholders' equity
%
2.19 Billy Bob wants to gain some weight so that he can play football. Billy eats only milkshakes and spinach. Milkshakes cost him $1 each and spinach costs $2 per serving. A milkshake has 850 calories and a serving of spinach has 200 calories. Billy Bob never spends more than $20 a day on food and he always consumes at least 8000 calories per day. Which of the following is necessarily true?
(a) Billy Bob consumes at least 9 milkshakes a day.
(b) Billy Bob never consumes more than 6 servings of spinach a day .
(c) Billy Bob never consumes positive amounts of both goods.
(d) Billy Bob consumes only milkshakes.
(e) None of the above.
The statement that is necessarily true is Billy Bob consumes at least 9 milkshakes a day.Given,Milkshakes cost Billy Bob $1 each and spinach costs $2 per serving. A milkshake has 850 calories and a serving of spinach has 200 calories. Thus, option (a) is correct.
Billy Bob never spends more than $20 a day on food and he always consumes at least 8000 calories per day.To consume 8000 calories or more in a day, we must have 9 milkshakes in a day because each milkshake has 850 calories. 9 × 850 = 7650 calories. If Billy Bob eats at least 9 milkshakes a day, he still has $11 left, and if he spends all his remaining money on spinach, he can buy 5 servings of spinach (since each serving costs $2, 5 servings of spinach cost $10).5 servings of spinach cost him 5 × 200 = 1000 calories, and he has now consumed 8650 calories, which is more than the minimum required 8000 calories per day.Hence, the statement that is necessarily true is Billy Bob consumes at least 9 milkshakes a day. Thus, option (a) is correct.Note: If Billy Bob doesn't consume spinach, he will need to have at least 10 milkshakes a day to consume at least 8000 calories per day.
To know more about calories per day. visit:
https://brainly.com/question/32671887
#SPJ11
Caden started a new publication called Contest News. Its subscribers pay $36 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 now subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account. Unearned subscription revenue Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Determine the current balance of Unearned Subscription Revenue, which is $3,600.
Set the desired balance of Unearned Subscription Revenue to $1,800.
Record the adjusting entry on December 31: Debit Unearned Subscription Revenue by $1,800 and credit Subscription Revenue by the same amount.
To adjust the Subscription Revenue account and the Unearned Subscription Revenue account as of December 31, Caden needs to follow these steps:
Step 1: Determine the current account balance of Unearned Subscription Revenue. In this case, since Caden has 100 subscribers who paid $36 each for 12 monthly issues, the current account balance of Unearned Subscription Revenue is $36 * 100 = $3,600.
Step 2: Determine what the current account balance of Unearned Subscription Revenue should equal. Since Caden has already sent Contest News to each subscriber from July through December, the portion of the subscription revenue earned by the end of December is 6/12 (half of the annual subscription period). Therefore, the account balance of Unearned Subscription Revenue should be $3,600 * (6/12) = $1,800.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Caden needs to debit Unearned Subscription Revenue by $3,600 - $1,800 = $1,800 and credit Subscription Revenue by the same amount.
Journal Entry as of December 31:
Debit: Unearned Subscription Revenue - $1,800
Credit: Subscription Revenue - $1,800
Learn more about Journal Entry here: brainly.com/question/33438461
#SPJ11
The producer price index contains: a) price indexes for approximately 500 mining and manufacturing industries. b) a collection of inputs such as commodities, raw materials, intermediate and finished goods used by businesses and organized by stage of production and processing. c) information from the consumer expenditure survey. d) a fluctuating bundle of consumer goods and services. Table A. Refer to the below table. Refer to Table A. The real GDP growth rate between Year 2000 and Year 2005 is about: [Hint: real growth rate =[( real GDP 2005 - real GDP 2000) / real GDP 2000
)]×100% a) 11.76% b) 12.89% c) 13.33% d) 14.79% e) Insufficient data provided to answer this question. Table A. Refer to the below table. Refer to Table A. Based on the data provided, we can say that the base year is: [Hint: Price Index =( nominal GDP / real GDP) ×100] a) Year 2000 b) Year 2005 c) Year 2008 d) Year 2009 e) Insufficient data provided to answer this question. Table A. Refer to the below table. Refer to Table A. The rate of inflation/deflation between years 2000 and 2009 is about: Hint: rate of deflation/inflation =[(PI current year −Pl earlier year )/PI earlier year ]×100% a) A deflation of −18.12% b) A deflation of −22.13% c) An inflation of 18.12% d) An inflation of 22.13% e) Insufficient data provided to answer this question. Table A. Refer to the below table. Refer to Table A. The rate of inflation/deflation between years 2000 and 2009 is about: Hint: rate of deflation/inflation =[(PI current year −Pl earlier year )/PI earlier year ]×100% a) A deflation of −18.12% b) A deflation of −22.13% c) An inflation of 18.12% d) An inflation of 22.13% e) Insufficient data provided to answer this question. Which of the following would be included in the US consumer market basket? a) Price of crude oil b) Price of a hotel room in Beirut, Lebanon c) Price of a gallon of gasoline d) Price of iron ore
The producer price index (PPI) contains price indexes for approximately 500 mining and manufacturing industries. Therefore, option (a) is the correct answer.
To calculate the real GDP growth rate between Year 2000 and Year 2005, we need the values of real GDP for both years. Unfortunately, the table mentioned in the question is not provided, making it impossible to determine the real GDP growth rate. Therefore, the answer is (e) Insufficient data provided to answer this question.
Similarly, without the table or relevant data, we cannot determine the base year, which is the year used as a reference for calculating price indexes. Hence, the answer is again (e) Insufficient data provided to answer this question.
Regarding the rate of inflation/deflation between years 2000 and 2009, we also lack the necessary data to perform the calculation. The answer remains (e) Insufficient data provided to answer this question.
In the US consumer market basket, the price of a gallon of gasoline would be included. Gasoline is a commonly purchased item by consumers and is a representative component of the market basket used to calculate consumer price indexes. Therefore, the correct answer is (c) Price of a gallon of gasoline.
Learn more aout producer price index here:
brainly.com/question/30420101
#SPJ11
BFM had the following information available regarding last year's operations: Sales (100 000 units) €200 000 Variable costs €100 000 Contribution margin €100 000 Fixed costs €50 000 Net Income €50 000 If sales were to increase by 400 units, what would be the effect on net income? Selecione uma opção de resposta: O a. €100 increase O b. €150 increase О с. €400 increase O d. €200 increase
The increase in net income would be €400, which corresponds to option (c) - €400 Increase.
The contribution margin per unit can be calculated by dividing the total contribution margin by the number of units sold. In this case, the contribution margin per unit is €1,000 (€100,000 contribution margin divided by 100,000 units sold).
To determine the effect on net income, we need to calculate the increase in contribution margin resulting from the increase in sales. Since the sales increase is given as 400 units, we can multiply the increase in units (400) by the contribution margin per unit (€1,000).
Increase in contribution margin = Increase in units * Contribution margin per unit
Increase in contribution margin = 400 units * €1,000 per unit
Increase in contribution margin = €400,000
Since the fixed costs remain the same at €50,000, the increase in net income can be calculated by subtracting the increase in fixed costs from the increase in contribution margin.
Increase in net income = Increase in contribution margin - Increase in fixed costs
Increase in net income = €400,000 - €50,000
Increase in net income = €350,000
To know more about net income visit:
https://brainly.com/question/32614743
#SPJ11
"Kian's policy states that he cannot be assessed a co-insurance
penalty as long as the policy limit is at least a certain amount.
What is this amount called?
Select one: a. Limit of liability b. Legal"
The amount stated in Kian's policy, above which he cannot be assessed a co-insurance penalty, is called the limit of liability.
The limit of liability refers to the specific amount stated in an insurance policy that serves as the threshold above which the insured individual, in this case Kian, cannot be subject to a co-insurance penalty. Co-insurance is a provision in insurance policies where the insured shares a percentage of the covered costs with the insurance company.
However, if the policy limit is equal to or exceeds the specified amount, Kian is exempt from the co-insurance penalty. The limit of liability sets the boundary for the application of the co-insurance provision in the policy.
Learn more about liability here: brainly.com/question/25012970
#SPJ11
Blanchard says that setting strategy is an important part of leadership. Even highly engaged employees will not make an organization successful if the strategy is poorly aligned with the environment. What must a manager do to exercise high-quality strategic leadership? Check all that apply. Know the organization inside and out, including its culture, its strengths, and its weaknesses. Embrace the many aspects of diversity in the workforce, in the customer base, and in all other stakeholders. Thoroughly understand the organization's current environment and possible future trends. Develop detalled plans that take into account resource availability and lay out clear timelines for implementation.
To exercise high-quality strategic leadership, a manager must:- Know the organization inside and out, including its culture, its strengths, and its weaknesses.
- Thoroughly understand the organization's current environment and possible future trends.
- Develop detailed plans that take into account resource availability and lay out clear timelines for implementation.
These three actions are crucial for effective strategic leadership as they involve a deep understanding of the organization, its context, and the ability to develop well-informed and actionable plans. Embracing diversity, while important for overall organizational success, is not directly related to exercising high-quality strategic leadership.
To learn more about stakeholders click here:
brainly.com/question/33221922
#SPJ11
suppose a firm has two plants, a and b, each producing the same product but using different production processes. after analyzing production reports a unc charlotte intern realizes that the marginal product of labor in plant a is greater than the marginal product of labor in plant b. what should he recommend as a short-run remedy? group of answer choices move labor from plant a to plant b. add more capital to plant b. move labor from plant b to plant a. it cannot be determined from the information given.
Based on the information given, the intern should recommend moving labor from plant B to plant A as a short-run remedy.
The fact that the marginal product of labor in plant A is greater than the marginal product of labor in plant B suggests that plant A is utilizing labor more efficiently and effectively in the production process. By reallocating labor from plant B to plant A, the firm can optimize its production output and improve overall productivity.
Moving labor from plant B to plant A allows the firm to capitalize on the higher productivity potential in plant A, thereby maximizing the use of resources. This short-run remedy aims to address the imbalance in labor utilization between the two plants and align their production processes to achieve better overall results.
Adding more capital to plant B may not be the best solution in this case, as the issue appears to be related to labor productivity rather than the availability of capital. Therefore, the recommended remedy is to move labor from plant B to plant A.
know more about labor :brainly.com/question/984683
#SPJ11
on january 1, a company issues bonds dated january 1 with a par value of $350,000. the bonds mature in 5 years. the contract rate is 7%, and interest is paid semiannually on june 30 and december 31. the market rate is 6% and the bonds are sold for $364,930. the journal entry to record the first interest payment using the effective interest method of amortization is: (rounded to the nearest dollar.)
The journal entry to record the first interest payment using the effective interest method of amortization would include a debit to Interest Expense and a credit to Cash for the amount of interest paid.
Under the effective interest method of amortization, the interest expense is calculated based on the carrying value of the bonds multiplied by the market interest rate. In this case, the bonds were sold at a premium ($364,930 - $350,000 = $14,930), indicating that the effective interest rate is lower than the contract rate of 7%.
To record the first interest payment, the following journal entry would be made:
- Debit Interest Expense for the calculated interest expense amount
- Credit Cash for the interest payment made
The interest expense is calculated as the carrying value of the bonds ($364,930) multiplied by the market interest rate (6%) divided by the number of interest periods in a year (2), resulting in ($364,930 * 6% / 2 = $10,947).
Therefore, the journal entry would be:
- Debit Interest Expense $10,947
- Credit Cash $10,947
This entry recognizes the interest expense for the period and records the cash outflow for the interest payment.
Learn more about amortization here:
brainly.com/question/32732448
#SPJ11
Are the current government policies governing the US-Mexico boader ethical and fair to all parties? according to Classical Theory: Human Rights and Justice Theory?
The current government policies governing the US-Mexico border are not ethical and fair to all parties according to Classical Theory: Human Rights and Justice Theory. The current government policies governing the US-Mexico border, according to the Classical Theory of Human Rights and Justice Theory, are unethical and unfair to all parties because they violate the fundamental human right to freedom of movement and assembly.
The US-Mexico border policy prohibits the free movement of people across the border, which violates the fundamental human right of people to move and associate freely, as enshrined in the Universal Declaration of Human Rights of the United Nations.
Additionally, the policy has resulted in gross human rights violations, including family separations and mistreatment of immigrants, and has perpetuated social injustices, particularly against immigrants and low-wage workers. Moreover, the policy has exacerbated the already existing humanitarian crisis at the US-Mexico border, resulting in inhumane living conditions, mass deportations, and criminalization of immigrants, among other issues.
Finally, the policy has not been fair to all parties since it favors the interests of one party over the other, namely the US government over the immigrants, who are seeking refuge and better living conditions in the US. The government policies governing the US-Mexico border violate human rights and justice theory since they are unethical and unfair to all parties.
You can learn more about Justice Theory at: brainly.com/question/31842147
#SPJ11
You can select the topic as you like, which could be in the field on economics, management, education, or social science, etc.
The student needs to collect data himself and marks or offers the data source, and completes the basic descriptive statistics analysis on the data.
The integrity of the report framework, which usually includes "Introduction, Conceptual (or theoretical) framework, Variable choice and Econometric models, Estimation on parameters, Results explaination, Conclusion". In this process, you can use Eviews or R software to estimate the parameter and carry out the related testing on the model (the other software, such as Spss or Stata, is also allowed), and you need to explain the economic or practical meaning of your estimation results.
The independent variables in the final estimation result must be "no less than 2". The output normalization of the estimation results, which means you must report your estimation results by "Equation style or Table style" as our course suggested and should not post the screenshot or picture from the computation software
In this project, the student will select a topic in the field of social science, collect their own data, and conduct basic descriptive statistics analysis. They will utilize software like Eviews, R, Spss, or Stata to estimate parameters, perform related testing, and report the results in the equation or table style. The report will follow a framework including an Introduction, Conceptual framework, Variable choice, Econometric models, Estimation of parameters, Results explanation, and Conclusion.
The student will choose a topic in social science and gather data for analysis. They will apply descriptive statistics techniques to summarize the data. Using software like Eviews, R, Spss, or Stata, they will estimate parameters and conduct hypothesis testing on their chosen econometric model. The results will be presented in equation or table format, adhering to the suggested output normalization.
The student will interpret the economic or practical implications of the estimation results. The report will follow a structured framework, including an introduction, conceptual framework, variable selection, parameter estimation, results explanation, and conclusion.
For more questions like Framework click the link below:
https://brainly.com/question/29584238
#SPJ11
"""0.The Bolten Corporation had earnings per share of $2.60 in
2012, and book value per share at the end of 2011 (beginning of
2012) was $13. a. What was the fi rm’s return on
equity (book value) i"
ROE is typically calculated using the following formula: ROE = Net Income / Average EquityTo calculate the return on equity (ROE), we need the net income and the average equity for the period.
Given information:
Earnings per share (EPS) in 2012 = $2.60
Book value per share at the end of 2011 = $13
To calculate the average equity, we need to know the equity value at the beginning and end of the period. However, the beginning equity value is not provided in the question. Without that information, we cannot calculate the exact ROE.
ROE is typically calculated using the following formula:
ROE = Net Income / Average Equity
Since the beginning equity value is not given, we are unable to calculate the average equity and determine the precise ROE.
To know more about ROE :
https://brainly.com/question/32935876
#SPJ4
What is the difference between "comparative advantage" and "absolute advantage". a) To have the absolute advantage in a good a producer has to be the lower resource cost producer of that good. b) To have a comparative advantage in a good the producer has to be the more efficient producer of the good. c) The more efficient producer of a good will have the absolute advantage in that good. d) To have a comparative advantage in a good a producer has to be the lower opportunity cost producer of the good. e) A producer can gain a comparative advantage in a good by adopting a successful marketing campaign.
The correct statements are:
a) To have the absolute advantage in a good, a producer has to be the lower resource cost producer of that good.
d) To have a comparative advantage in a good, a producer has to be the lower opportunity cost producer of the good.
Comparative advantage and absolute advantage are concepts used in international trade to understand the efficiency and specialization of producers in different goods and services. Here's the difference between the two concepts:
Absolute Advantage:
Absolute advantage refers to a producer's ability to produce a good or service using fewer resources (inputs) compared to another producer. In other words, a producer has an absolute advantage if they can produce more output with the same amount of resources or produce the same output with fewer resources. Statement a correctly defines the concept of absolute advantage.
Comparative Advantage:
Comparative advantage, on the other hand, focuses on the opportunity cost of producing a good or service. It is the ability of a producer to produce a good or service at a lower opportunity cost compared to another producer. Opportunity cost refers to the value of the next best alternative that is forgone when choosing one option over another. Statement d accurately describes the concept of comparative advantage.
The key distinction is that absolute advantage looks at resource efficiency, while comparative advantage examines the opportunity cost of production. It is possible for a producer to have a comparative advantage in a good even if they are not the most efficient producer. Comparative advantage considers the trade-offs in production and specialization based on the opportunity costs involved.
The statements c and e are incorrect. The more efficient producer does not necessarily have the absolute advantage in a good (c), as absolute advantage is determined by resource costs. Adopting a successful marketing campaign (e) does not directly relate to gaining comparative advantage, as comparative advantage is primarily based on production efficiency and opportunity costs.
To know more about absolute advantage, refer here:
https://brainly.com/question/30188236
#SPJ4
A stock had returns of 16.85 percent, -10.63 percent, 21.95 percent, and 13.41 percent for the past four years. What is the standard deviation of the returns? Multiple Choice O 2.09% 13.00% 14.45% 11.56%
The standard deviation of the stock returns is 13.00%.
To calculate the standard deviation, we first need to find the average return. Adding up the four returns and dividing by 4, we get (16.85 - 10.63 + 21.95 + 13.41) / 4 = 10.39%.
Next, we calculate the squared difference between each return and the average return. For example, for the first return of 16.85%, the squared difference is (16.85 - 10.39)^2 = 41.68. We repeat this calculation for each return and sum up the squared differences: 41.68 + 0.25 + 136.89 + 3.28 = 182.10.
Then, we divide the sum of squared differences by the number of returns (4) and take the square root to get the standard deviation. The calculation is √(182.10 / 4) = √45.52 = 6.75%.
Therefore, the standard deviation of the stock returns is 13.00%.
The standard deviation is a statistical measure that indicates the volatility or dispersion of a set of data points. In this case, it measures the variability of the stock returns over the four-year period. A higher standard deviation implies greater variability or risk.
To calculate the standard deviation, we followed a few steps. First, we calculated the average return by summing up the individual returns and dividing by the number of returns. Then, we calculated the squared difference between each return and the average return. Squaring the differences ensures that they are all positive and emphasizes the differences from the mean. Next, we summed up the squared differences. Dividing this sum by the number of returns and taking the square root gives us the standard deviation.
In this case, the standard deviation of 13.00% indicates that the stock returns had a moderate level of volatility or dispersion. It suggests that the returns varied around the average return by approximately 13.00%. Investors typically consider a higher standard deviation as an indication of higher risk. Therefore, a stock with a higher standard deviation is likely to be considered more volatile and potentially riskier than one with a lower standard deviation.
Learn more about standard deviation click here: brainly.com/question/14747159
#SPJ11
Joseph is trying to select a new couch for his living room. As he looks at each couch at the furniture store, he tries to visualize how it would look in his living room at home. Joseph is using _____ to help him determine which couch to buy
Joseph is using visualization to help him determine which couch to buy.
Joseph's process of visualization plays a crucial role in helping him determine which couch to buy for his living room. As he explores each couch at the furniture store, he actively engages his imagination to envision how it would look in his own living room. This mental exercise allows him to mentally place the couch within the context of his home environment, considering factors such as size, color, style, and how it complements his existing decor.
By visualizing the couch in his living room, Joseph can gauge whether it will harmonize with the overall aesthetic and layout of the space. He considers how the couch will fit in terms of dimensions, ensuring it neither overwhelms nor gets lost in the room. Joseph takes into account the color scheme, contemplating whether the couch will be a complementary or contrasting element within the existing palette.
Furthermore, visualization enables Joseph to assess the functionality and practicality of each couch. He imagines himself and his family members sitting, lounging, or entertaining on the couch, considering aspects like comfort, seating capacity, and usability. Joseph also envisions the placement of the couch, mentally arranging and rearranging furniture in his living room to find the optimal configuration.
Through this visualization process, Joseph is able to mentally project and assess the potential outcome of each couch in his living room. This aids him in making an informed decision based on his preferences, lifestyle, and the specific needs of his living space. By relying on his imaginative faculties, Joseph ensures that the chosen couch not only meets his aesthetic preferences but also seamlessly integrates into his living room, creating a cohesive and visually appealing environment.
To know more about dimensions click here: brainly.com/question/32980926
#SPJ11
(a) Describe the THREE (3) issues that a financial institution will have to consider when assessing credit risk from a single counterparty. (9 marks) (b) Discuss how 'credit quality' can affect the counterparty to perform an obligation. (8 marks) (c) Differentiate between credit ratings used by banks in relation to those used by others. (8 marks)
a) There are three main issues that a financial institution will have to consider when assessing credit risk from a single counterparty.
They include:i) Probability of default: Probability of default (PD) is the likelihood of a borrower being unable to meet their financial commitments.ii) Exposure: The amount of exposure is an essential factor in evaluating credit risk. The amount of money that a counterparty could lose in the event of a counterparty default is referred to as exposure.iii) Loss given default: LGD, which stands for Loss Given Default, is a ratio that determines the amount of money that a financial institution may lose as a result of a counterparty default.
b) Credit quality can impact the counterparty's ability to fulfill an obligation in several ways. First and foremost, a counterparty's credit quality determines their ability to borrow money. A borrower's credit quality determines how much they can borrow, the duration of the loan, and the interest rate charged on the loan. Credit quality also affects the cost of borrowing, as borrowers with lower credit quality often pay higher interest rates. Finally, credit quality affects the terms and conditions of loans and other credit products.c) Banks and other financial institutions use credit ratings in a variety of ways. Credit ratings are used to assess the creditworthiness of borrowers and to determine the risk associated with various investment products, such as bonds and stocks.
To know more about credit visit:
https://brainly.com/question/31104152
#SPJ11
Wheelan says that markets may not work at all without government to "set the rules." First and foremost among those rules is that government "defines and protects property rights." In addition to physical property like land and goods, government also proteets "intellectual property" like ideas, works of literature and music, and inventions through copyrights and patents. But patents ereate monopolies, which most economists consider to be bad because they allow firms to earn excessive profits. A) Why is it a good idea to award patents which create monopolies when economists believe that monopolies are bad for the economy? B) Property rights to physical property never expire, but property rights in inteilectual property do (patents expire after 20 years). Why is that the case - why shouldn't Intellectual property right last forever also?
Patents are a good idea because they encourage innovation. By giving inventors a temporary monopoly over their invention, patents allow them to recoup the costs of research and development and earn a profit. This incentive encourages people to come up with new ideas and inventions, which benefits society as a whole.
Economists generally agree that monopolies are bad for the economy because they can lead to higher prices, lower output, and less innovation. However, patents are a special case because they create a temporary monopoly that is designed to encourage innovation.
The idea is that if inventors knew that their competitors could simply copy their invention as soon as it was created, they would have less incentive to invest in research and development. This would mean fewer new inventions, which would be bad for society as a whole.
Patents provide a balance between the need to encourage innovation and the need to prevent monopolies from becoming too powerful. The patent expires after 20 years, which gives the inventor a reasonable amount of time to recoup their investment, but it also prevents the monopoly from lasting indefinitely.
Visit here to learn more about Patents:
brainly.com/question/28966055
#SPJ11
Economists draw a production possibility frontier (ppf) to illustrate the concept of O A. the laissez-faire economy. O B. opportunity costs. C. market equilibrium. D. the law of demand.
Economists draw a production possibility frontier (PPF) to illustrate the concept of opportunity costs. Option B.
Economists draw a production possibility frontier (PPF) to illustrate the concept of opportunity costs. The PPF represents the different combinations of two goods or services that an economy can produce efficiently with its given resources and technology. It shows the trade-off between producing one good over the other.
The PPF is a downward-sloping curve because resources are scarce, and producing more of one good requires sacrificing the production of another. This trade-off is known as an opportunity cost.
As an economy moves along the PPF to produce more of one good, it must give up some quantity of the other good. The slope of the PPF represents the opportunity cost of producing one additional unit of a good in terms of the foregone production of the other good.
By drawing the PPF, economists can visually demonstrate the concept of opportunity costs and the efficiency of resource allocation. It helps decision-makers understand the trade-offs involved in choosing between different goods and services.
Additionally, the PPF can illustrate the concept of economic growth by showing how an economy can expand its production possibilities through technological advancements or an increase in available resources. So Option B is correct.
For more question on production visit:
https://brainly.com/question/7924898
#SPJ8
Integer Linear Programming Question 6 (25 points). Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: Department Product 1 Product 2 Product 3 1.50 3.00 2.00 2.00 1.00 2.50 с 0.25 0.25 0.25 During the next production period, the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are $25 for product 1, $28 for product 2, and $30 for product 3. The production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are $400 for product 1, $550 for product 2, and $600 for product 3. Management also stated that we should not consider making more than 175 units of product 1. 150 units of product 2, or 140 units of product 3. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). using the MS Excel Solver. Provide screenshots for each excel sheet: Your model sheet, excel solver screen (I want to see your inputs to solver), answer report, sensitivity analysis (see Appendix for examples). If you will miss to provide the screenshot for MS Excel Solver Solution, you will be graded for zero for the solution part. How much of each product should be produced, and what is the projected total profit contribution? What is the total profit contribution after taking into account the setup costs?
The total profit contribution after setup costs would be $5000 - $1500 = $3500.
I am unable to provide screenshots or access external software like MS Excel Solver. However, I can help you formulate the linear programming model based on the given information and provide you with the optimal solution and results.
To formulate the linear programming model for maximizing total profit contribution, we need to define decision variables, objective function, and constraints.
Let's define the decision variables:
x1 = Number of units of product 1 to produce
x2 = Number of units of product 2 to produce
x3 = Number of units of product 3 to produce
Objective function:
Maximize Z = 25x1 + 28x2 + 30x3 (total profit contribution)
Subject to the following constraints:
1.50x1 + 3.00x2 + 2.00x3 ≤ 450 (Department A constraint)
2.00x1 + 1.00x2 + 2.50x3 ≤ 350 (Department B constraint)
0.25x1 + 0.25x2 + 0.25x3 ≤ 50 (Department C constraint)
x1 ≤ 175 (Maximum units for product 1)
x2 ≤ 150 (Maximum units for product 2)
x3 ≤ 140 (Maximum units for product 3)
x1, x2, x3 ≥ 0 (Non-negativity constraint)
Once you input this model into MS Excel Solver, the solver will provide the optimal solution and results, including the values for x1, x2, and x3 (number of units to produce for each product) and the projected total profit contribution.
To calculate the total profit contribution after taking into account the setup costs, you need to subtract the setup costs from the total profit contribution obtained in the previous step. For example, if the total profit contribution without setup costs is $5000 and the setup costs for the three products combined are $1500, then the total profit contribution after setup costs would be $5000 - $1500 = $3500.
Please note that since I cannot provide screenshots, you will need to set up the Excel Solver yourself based on the provided model and constraints.
For more questions on variables, click on:
https://brainly.com/question/28248724
#SPJ8
lenny works for a nonprofit, and his job is to work with other companies to find opportunities and create agreements for joint projects that support his organization's mission. which of mintzberg's managerial roles is lenny demonstrating? multiple choice entrepreneur negotiator figurehead leader disseminator
Lenny's role of working with other companies to find opportunities and create agreements for joint projects aligns with Mintzberg's managerial role of negotiator. As a negotiator.
Lenny is responsible for representing his organization's interests and engaging in discussions to reach mutually beneficial agreements with other companies.
This role requires him to have strong communication and interpersonal skills, as well as the ability to identify and capitalize on opportunities that support his organization's mission.
To know more about companies visit:
https://brainly.com/question/19659292
#SPJ11
Carla Vista Company estimates that variable costs will be 70% of sales, and fixed costs will total $450,000. The unit selling price of the product is $5 (a) Compute the break-even point in (1) sales units and (2) sales dollars. (Round per unit colculation to 2 decimal places, es. 15.25 and final answer to 0 decimal places, es, 5,275. (1) Break-even point units (2) Break-even point $
The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit.
To calculate the break-even point in units, we need to determine the contribution margin per unit. The contribution margin is the selling price per unit minus the variable cost per unit. In this case, the selling price per unit is $5 and the variable costs are estimated to be 70% of sales. Therefore, the variable cost per unit is 70% of $5, which is $3.50. The contribution margin per unit is $5 - $3.50 = $1.50.
To calculate the break-even point in units, we divide the fixed costs ($450,000) by the contribution margin per unit ($1.50). The break-even point in units is $450,000 / $1.50 = 300,000 units.
To calculate the break-even point in sales dollars, we multiply the break-even point in units (300,000 units) by the selling price per unit ($5). The break-even point in sales dollars is 300,000 units * $5 = $1,500,000. Therefore, the break-even point is 300,000 units or $1,500,000 in sales dollars.
Learn more about costs here : https://brainly.com/question/32817332
#SPJ11
Airport Massage Station A small company just opened a new massage station at the Philadelphia airport. The company has a stand that offers massages to travelers. Customers can select a length of time for a massage between 5 and minutes, and there is a unique rate of $30 independent of the length of time chosen by customers. The average massage length, requested by customers, is 15 minutes with a standard deviation of 10 minutes. There an four employees delivering massages. The average number of potential customers requesting a massage is 20 per hour. The interarrival times are assumed to be exponentially distributed. If spots are unavailable when the customers arrive, they leave in order not to risk missing their flights. The station manager is considering the option of hiring additional employees to deliver massages. The hourly wage of an employee is $50/hr. How many ADDITIONAL employees should the manager hire to maximize profits? [Profit = revenues from customers - labor cost] Suppose that there exists sufficient equipment to accommodate as many new employees as needed. none O 1 additional employee O 2 additional employees O 3 additional employees O 4 additional employees O There is not sufficient information to answer the question.
The station manager should hire two additional employees to maximize profits. Therefore, the correct option is 2 additional employees.
To maximize profits, the station manager must determine the optimal number of additional employees to hire. Since the company's revenue is $30 per massage, the hourly revenue from a single employee can be calculated as follows:
Hourly revenue from each employee = average number of customers per hour × expected value of the revenue per customer
= (20 customers/hr) × ($30/customer)
= $600/hr
The labor cost of an additional employee is $50/hr.
Therefore, the station manager's profit equation is:
Profit = Hourly revenue from each employee × Additional employees - Hourly labor cost of each employee × Additional employees
= (20 customers/hr) × ($30/customer) × additional employees - ($50/hr) × additional employees
= (600 customers/hr) × additional employees - ($50/hr) × additional employees
= ($550/hr) × additional employees
The manager should hire the additional employees that would result in the highest profit.
Therefore, the correct option is 2 additional employees.
Know more about the maximize profits,
https://brainly.com/question/30576959
#SPJ11