Question Completion:
The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code.
Investment Compliance
Low Medium High
1 50 50 50
2 100 60 20
3 150 70 - 10
Chances of 20% 30% 50%
Answer:
He will hire 1 new worker.
Explanation:
a) Data and Calculations:
Investment Compliance
Low Medium High Expected Net Revenue
1 50 50 50 $50
2 100 60 20 $48
3 150 70 - 10 $46
Expected net revenue:
With 1 worker, expected values = 50*20% + 50*30% + 50*50% = 50
With 2 workers, expected values = 100*20% + 60*30% + 20*50% = 48
With 3 workers, expected values = 150*20% + 70*30% + -10*50% = 46
b) By hiring only 1 new worker, the expected net revenue is maximized at $50 instead of $48 and $46 with 2 and 3 workers respectively. The expected values are obtained by weighing the outcomes with the probabilities of the events occurring, and then totaling each option. The option that yields the greatest revenue is chosen.
If your parents deposited $1,000 upon your birth and deposited $1,000 each year on your birthday including your 21st birthday. How much money will you have at the end of your 21st year if the investment earns 4% per year
Answer:
FV of annuity = $33247.96979 rounded off to $33247.97
Explanation:
To calculate the value of the investment at the end of the period, we will use the formula for the future value of annuity. The annuity is an annuity due as the investment is made at the start of the period. The formula for future value of annuity due is attached.
FV of annuity = (1+0.04) * 1000 *[((1+0.04)^21 - 1) / 0.04]
FV of annuity = $33247.96979 rounded off to $33247.97
Pharoah Company was started on May 1. A summary of May transactions is presented as follows. 1. Stockholders invested $24,500 cash in the business in exchange for common stock. 2. Purchased equipment for $4,500 cash. 3. Paid $200 cash for May office rent. 4. Paid $600 cash for supplies. 5. Incurred $350 of advertising costs in the Beacon News on account. 6. Received $4,900 in cash from customers for repair service. 7. Declared and paid a $1,000 cash dividend.
Answer:
1. Stockholders invested $24,500 cash in the business in exchange for common stock.
Dr Cash 24,500
Cr Common stock 24,500
2. Purchased equipment for $4,500 cash.
Dr Equipment 4,500
Cr Cash 4,500
3. Paid $200 cash for May office rent.
Dr Rent expense 200
Cr Cash 200
4. Paid $600 cash for supplies.
Dr Supplies 600
Cr Cash 600
5. Incurred $350 of advertising costs in the Beacon News on account.
Dr Advertising expense 350
Cr Accounts payable 350
6. Received $4,900 in cash from customers for repair service.
Dr Cash 4,900
Cr Service revenue 4,900
7. Declared and paid a $1,000 cash dividend.
Dr Dividends 1,000
Cr Cash 1,000
Which type of promotion does a business use in case its sales revenue has fallen below expectations?
Businesses generally use________ to attract more customers quickly, especially when their sales revenue is not up to the initial expectations.
Answer:
sales promotion
Explanation:
Helps encourage customers to buy their products, they might use this when their sales revenue is falling short of expectations
Assume there were 6,000 units in beginning work in process, 60% complete. 20,000 units were completed during the month. Ending work in process is 40% complete, which is equivalent to 3,200 units for conversion costs. Materials are added at the beginning of the process. The standard cost method is used. Assume that conversion costs are $122,100 for the month, and the equivalent unit cost for conversion is $5.50. The ending work in process is 80% complete, and the beginning work in process consisted of 2,000 units, 40% complete. The company completed 17,000 units. What is the number of whole units in the ending work in process under the FIFO method?A) 6,000 unitsB) 6,500 unitsC) 7,500 unitsD) 5,200 units
Answer:
B) 6,500 units
Explanation:
Beginning WIP = 6,000 units
The units are 60% complete.
further 20,000 units are added which are 40% complete at the end of the process.
The total finished units at the end of the process are 6,500 units.
Why a manufacturer who makes watches involved in trade
Answer:
to make money, if they trade their watches they will be expanding their business
Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department
Answer:
$350,000
Explanation:
The computation of the total manufacturing cost directly traceable is as follows:
= (Direct material per unit + direct labor per unit+ variable manufacturing overhead per unit + fixed overhead per unit) × number of units sold
= ($7 + $4 + $1.50 + $5) × 20,000 units
= $17.50 × 20,000 units
= $350,000
You observe that the return on a 2-year Treasury bond is 4% and the return on a 3-year Treasury Bond is 7.2%. What is the one-year forward rate 2 years from now
Answer:
13.90%
Explanation:
Mathematically, the relationship between the different interest rates using the equation is shown below:
(1+S3)^3=(1+S2)^2*(1+2y1y)
The spot rate in year 3 is the same as the spot rate in year 2 multiplied by the 1-year forward rate beginning 2 years.
S3=3-year rate =7.2%
S2=2-year rate =4%
2y1y=one-year interest rate 2 years from now=the unknown
(1+7.2%)^3=(1+4%)^2*(1+2y1y)
(1+2y1y) =(1+7.2%)^3/ (1+4%)^2
2y1y=(((1+7.2%)^3/ (1+4%)^2)-1
2y1y= 1.138984142 -1
2y1y= 13.90%
Suppose in 2018 the United States had consumption worth $13 trillion, investment worth $5 trillion, and government spending worth $3 trillion, with $2 trillion in exports and $3 trillion imports. What was its GDP per capita, assuming there were 400 million residents
Answer:
USD 50,000
Explanation:
The computation of the GDP per capita is given below:
GDP per capital = Real GDP ÷ Population
wherem
Real GDP is
= Consumption + investment + government spending + (exports - imports)
= $13 trillion + $5 trillion + $3 trillion + ($2 trillion - $3 trillion)
= $20 trillion
And, the population is 400 million
Now the GDP per capita is
= $20 trillion ÷ 400 million
= USD 50,000
Other than raw materials and manufacturing overhead, what is the third component of inventories for manufacturing companies
Answer:
Direct labor.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Other than raw materials and manufacturing overhead, the third component of inventories for manufacturing companies is direct labor.
Direct labor cost can be defined as the amount of money associated with paying of workers wages who are saddled with the responsibility of producing the goods and providing services.
I WILL MARK YOU BRAINLIEST IF YOU ANSWER CORRECTLY PLS HELP!
Select the ineffective subject lines.
This E-mail Message Contains Some Extremely Important New Information About Company Operations
Computer Time
Please Use the New Form in the Revised Employee Manual for Filling Out Your Time Sheets, the Procedure Has Changed
Job Evaluation Attached
New Accounting Process
HelpDesk Closed Fridays
Vending Machines Relocated
Answer:
I think its computer time?
Explanation:
Im not 100% sure but i hope this helps <3
Answer:
A and F
I think ....
Explanation:
Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $972,660 $1,015,200 Estimated direct labor hours for year 14,100 Estimated machine hours for year 22,620 Actual factory overhead costs for March $77,570 $87,780 Actual direct labor hours for March 1,270 Actual machine hours for March 1,760 a. Determine the factory overhead rate for Factory 1. $fill in the blank dc186a016ffefd2_1 per machine hour b. Determine the factory overhead rate for Factory 2. $fill in the blank dc186a016ffefd2_2 per direct labor hour c. Journalize the entries to apply factory overhead to production in each factory for March. Factory 1 fill in the blank 904b41fddff3057_2 fill in the blank 904b41fddff3057_4 Factory 2 fill in the blank 904b41fddff3057_6 fill in the blank 904b41fddff3057_8 d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1 $fill in the blank 62d347fab007058_1 Factory 2 $fill in the blank 62d347fab007058_4
Answer:
See below
Explanation:
Application overheads = Predetermined overheads × Actual activity
Where
Predetermined overhead rate = Estimated overheads ÷ Estimated activity
Factory 1
Overheads are applied on the basis of machine hours
Predetermined overhead rate = $972,660 ÷ 22,620 = $43
Therefore, application overhead
= 1,760 × $43
= $75,680
Factory 2
Overheads are applied on the basis of direct labor hours
Predetermined overhead rate = $1,015,200 ÷ 14,100 = $72
Therefore, application of overheads = 1,270 × $72 = $91,440
Overhead account - Factory 1
Dr :
Bank
$77,570
Total
$77,570
Credit :
Work in process
$75,680
Under applied ( balance)
$1,890
Total
$77,570
Overhead account Factory 2
Debit :
Bank
$87,780
Over - applied (balance)
$3,660
Total
$91,440
The demand for Carlo Rossi wine is relatively elastic since there are many other wines available to choose from. If the government decides to tax just this specific brand of wine, which of the following do you think will occur?
A. The majority of the tax will be paid by the producer
B. All of the tax will be passed on to the consumer
C. All of the tax will paid by by the producer
D. The majority of the tax will be paid by the consumer
Answer:
A. The majority of the tax will be paid by the producer
Explanation:
Elasticity of demand measures the rate of change in quantity demanded with changes in price.
When demand is relatively elastic it means that small changes in prices causes large change in quantity supplied.
So a small price increase will cause demand to drop by a large amount and vice versa.
In the given scenario Carlo Rossi wine has a relatively elastic demand coupled with other wine brands in the market. So an increase in price will cause demand to fall.
If the company is taxed by the government the only option they have is to bear majority of the tax
On January 1, Broker Corp. issued $3,600,000 par value 11%,11 year bonds which pay interest each December 31. If the market rate of interest was 13%, what was the issue price of the bonds
Answer:
$3,190,524
Explanation:
the issue price of the bonds was:
PV of face value = $3,600,000 / (1 + 13%)¹¹ = $938,511.55
PV of coupon payments = $396,000 x 5.6869 (PV annuity factor, 13%, 11 periods) = $2,252,012.40
issue price = $3,190,524
Dr Cash 3,190,524
Dr Discount on bonds payable 409,476
Cr Bonds payable 3,600,000
Are you one of those who are always alarmed by sale? If yes, how will you describe your consumer behaviour, if not, briefly state the reasons.
Answer with Explanation:
No, I'm not one of those consumers who's alarmed by sale. I tend to buy products according to my needs at the moment. For example, if have a party to attend next week, I try to purchase an outfit only for that special occasion. I'm more influenced by psychological factors rather than marketing factors (price, promotion, etc.). Whenever I hear the word, "sale," I tend to associate it with items or clothes that are outdated or nearing the expiration date. As much as possible, I try to stay away from them. I always look for quality products that are fresh and new in the market. I like innovative things and this also affects my shopping mood.
. Your trusted friend and neighbor, an experienced geologist, is putting together a group of investors to fund an exploratory gold mining venture. The venture could pay back 50 to 100 times the investment if successful. If the mine is a bust, the entire investment is worthless. Your friend estimates the chance of success is only 20%. If you had the money, how much would you invest
Answer: Invest according to your risk appetite
Explanation:
The purpose of this question is to measure your risk appetite. There is therefore no right or wrong answer.
If you pick nothing, then you are very risk averse because you don't want to risk your salary on a venture with only a 20% chance of success.
If you would invest a month salary, you are not risk averse but you only have a moderate risk tolerance.
If you invest three months salary on a venture with a 20% chance of success, you have a high tolerance for risk.
If you take it a step further and invest six months salary, this shows that you have a very high risk tolerance.
to gather meaningful data through interviews, surveys, and observations is what kind of change manager
Incomplete question. The full question read;
Sam, a change manager, has many competencies. One particular strength is his ability to gather meaningful data through interviews, surveys, and observations. These characteristics of Sam are an example of the ____ skills of a change manager.
a. Diagnostic
b.Interpersonal
c. Initiation
Answer:
a. Diagnostic
Explanation:
Since we are told Sam has the "ability to gather meaningful data through interviews, surveys, and observations", this shows he has the diagnostic skill set.
Remember, a change manager should be one that can spot/diagnose the problem, and Sam correctly fits that description.
Last month, the town of New Hen established a Parking Enforcement Unit (PEU) to write parking citations. New Hen budgeted $3,600 for the unit’s first 30 days, and estimated PEU officers would write 50 citations per day in those 30 days. In addition, New Hen estimated that officers would work 12 minutes per citation written. In actuality, PEU officers wrote an average of 45 citations per day and worked 15 minutes per citation written. New Hen also paid PEU officers $0.40 more per hour than budgeted. Calculate the volume, quantity, price, and total expense variances, and indicate whether they are favorable or unfavorable.
Answer:
The answers for each step are given below.
Explanation:
Let's extract the details:
Proposed budget and expected expenses will be on one side of the calculation while Actual budget and expenses will be on the other side.
PROPOSED ACTUAL
50 citations per day 45 citations per day
12 minutes per citation 15 minutes per citation
FIRST STEP:
Calculate how much per hour the PEU officers were paid in the proposed budget. This will be needed, to make comparison or check variance with the actual amount paid per hour (which will be $0.4 + the answer you get here).
12 minutes to hours is = 1/5 hours = 0.2 hours
Total budget period = 30 days
[0.2k x (50x30)] = $3,600 where k is price or payment per hour
NOTE THAT 0.2k = payment per citation in dollars per hour
(50 x 30) = total number of citations for budget period
300k = $3,600
k = 3600/300 = $12
So this is the hourly payment under the estimated budget plan.
SECOND STEP:
The wage per hour here (in the actual scenario) is 12 + 0.4 = $12.4
Now calculate the total amount spent in the actual scenario; using the same formula structure as above. Remember to convert the time per citation here. 15 minutes = 1/4 hours = 0.25 hours
Number of citations per day is also different here and that's 45.
[0.25k₁ x (45 x 30)] = Y
Y is what we're looking for here and definitely, we have the value for k₁ so input it to solve for Y.
[0.25 x 12.4 x 45 x 30] = $4,185
THIRD STEP:
Indicate whether the actual budget was favorable or unfavorable.
In Economics, a favorable budget is one where income exceeds expenditure (or expected labor output exceeds proposed payment) while an unfavorable budget is one where expenditure exceeds income (or proposed payment exceeds labor output).
In this case, the PEU officers spent more time to write each citation AND wrote less number of citations than expected. In addition to this, they demanded or were paid more dollars per hour of work.
This leads us to the conclusion that the budget was unfavorable. The town of New Hen ended up spending more than planned and receiving less citations than planned.
You're welcome!
You estimate you'll need $200,000 per year for 25 years starting on your 65th birthday to live on during your retirement. Today is your 50th birthday and you want to make equal deposits into an account paying 9% interest per year, the first deposit today and the last deposit on your 64th birthday. How much must each deposit be (rounded to the nearest $10)
Answer:
$66,909
Explanation:
Calculation for How much must each deposit be (rounded to the nearest $10)?
First step is to calculate the PV using financial y
N= 25
PMT= 200,000
FV= 0
i/y= 9
PV= ?
Hence,
PV= 2,141,322
Now let How much must each deposit be by finding the PMT using financial calculator
N= 15
FV= 2,141,322
PV=0
i/y= 9
PMT= ?
Hence,
PMT=$66,909
Therefore How much must each deposit be is $66,909
It is a busy Saturday in you realise that a customer who just left the store did so without getting change back hes do almost $20 back what would you do
A stock offers an expected dividend of $3.50, has a required return of 14%, and has historically exhibited a growth rate of 6%. Its current price is $35.00 and shows no tendency to change. How can you explain this price based on the constant-growth dividend discount model
Answer:
the stock is undervalued
Explanation:
the constant-growth dividend discount model = dividend / required rate of return - growth rate
3.5 / 0.14 - 0.06 = $43.75
If the price of the stock is less than the one calculated, it means that the price is less than its intrinsic value. This means that the stock is undervalued. If otherwise, the stock is overvalued
Olive Enterprises experienced the following events during Year 1: Acquired cash from the issue of common stock. Paid cash to reduce the principal on a bank note. Sold land for cash at an amount equal to its cost. Provided services to clients for cash. Paid utilities expenses with cash. Paid a cash dividend to the stockholders.
Answer:
THIS IS THE COMPLETE QUESTION:
Olive Enterprises experienced the following events during Year 1
1. Acquired cash from the issue of common stock.
2. Paid cash to reduce the principal on a bank note.
3. Sold land for cash at an amount equal to its cost.
4. Provided services to clients for cash.
5. Paid utilities expenses with cash.
6. Paid a cash dividend to the stockholders.
Explain how each of the events would affect the accounting equation by writing the letter I for increase, the letter D for decrease, and NA for does not affect under each of the components of the accounting equation.
1)ANSWER: the events that would affect the accounting equation in question (1) is as follows
✓Assets (I)
✓Liabilities (NA)
✓Equity (I)
2.)ANSWER: the events that would affect the accounting equation in question (2) is as follows;
✓Assets (D)
✓Liabilities (D)
✓ Equity (NA)
3. )ANSWER: the events that would affect the accounting equation in question (3) is as follows;
✓Assets (D)
✓ Liabilities (D)
✓Equity (NA)
4. ) ANSWER: the events that would affect the accounting equation in question (4) is as follows;
✓Assets (I)
✓Liabilities (NA)
✓Equity (I)
5. )ANSWER: the events that would affect the accounting equation in question (5) is as follows;
✓Assets (D)
✓ Liabilities (NA)
✓ Equity (D)
6) ANSWER: the events that would affect the accounting equation in question (6) is as follows;
✓Assets (D)
✓ Liabilities (NA)
✓Equity (D)
EXPLANATION:
The accounting equation gives how
assets, liabilities as well as equity relate with each other, which are elements of a balance sheet. This can be expressed below as
Assets = (Liabilities + Equity)
✓ liabilities are what the company is owning which can be money, examples are loans, accounts payable as well as mortgages.
✓Assets can be regarded as properties that are been owned by a company. This could be fixed assets,inventories
✓equity can be explained as when a company/ organization own an asset but is having some debts associated with it, it is difference between value of the assets and liabilities.
What analysis is included in the Excel student template that aims to assist students in determining the extent that debt versus equity should be used to finance a set of recommendations
Answer:
c. EPS-EBIT Analysis
Explanation:
EPS-EBIT analysis should be perfomed in order to measure the extent of debt versus equity that could be used for financing the recommendations set. Also it become helpful for measuring the capital structure here the earning per share has the maximum value for the earning before interest and taxes also it tells the impact of financial leverage at various levels
Therefore the correct option is c.
Which of the following would result from low labor demand and high labor supply?
A. Wages rise
B. Wages decline
C. Wages rise dramatically
D. Wages stay the same
Answer:
B. Wages decline
Explanation:
Labor is subject to the laws of supply and demand, just like other commodities in the market. Low labor demand means there are only a few job opportunities available. The unemployment rate will be high. The economy will be having too many people without jobs.
An increase in the supply of labor implies more people coming to the job market. The Job market will experience a surplus in labor supply, which will lead to reduced wages. There will be too many jobless people chasing few job opportunities. Employers will consider the lowest labor cost, while desperate job seekers will be willing to accept low wage rates.
Organizational structure has three dimensions, the vertical dimension that refers to the decision-making responsibilities, the horizontal dimension that refers to the division into subunits, and integrating mechanisms.
a. True
b. False
Answer:
a. True
Explanation:
An organizational structure can be defined as the process which typically involves dividing an organization into various functional units.
Organizational structure has three dimensions, the vertical dimension that refers to the decision-making responsibilities (decentralization and centralization), the horizontal dimension that refers to the division into subunits, and integrating mechanisms which mainly deals with the strategic mechanism that controls the various subunits within an organization.
A production lot of 25 units required 103.6 hours of effort. Accounting records show that the first unit took 7 hours. What was the learning rate?
Answer:
69%
Explanation:
The computation of the learning rate is shown below:
The Average hour per unit is
= 103.6 hours ÷ 25 units
= 4.14 hours per unit
Now
Total variance for mean
= 7 hours - 4.14 hours
= 2.86 hours
Finally
Learning rate is
= (2.86 hours ÷ 4.14 hours) ×100
= 69%
Though managers commonly deal with negative individual behaviors, which behavior is more rare and more serious to address
Answer:
c. Workplace violence
Explanation:
Options are: a. Turnover, b. Tardiness , c. Workplace violence, d. Absenteeism
- Employee Turnover is when the employees resigns or is leaving the company. This act is common phenomenon.
- Tardiness is when employees are being late to work. This is also a common one.
- Workplace violence is when employees resort to violent activities, this is a very serious issue and it is also seen as a crime as per law. This behavior is very rare and more seriousness to be addressed
- Absenteeism is when employee is being absent to work with out a proper notice. It is common one.
Most of a distribution manager's decisions must balance cost reduction
against which other benefit?
A. Superior customer service
B. Price increases
C. Greater efficiency
D. Higher profits
Superior customer service is the other benefit is Most of a distribution manager's decisions must balance cost reduction against. Hence,
What is Superior customer service?Superior customer service goes above and beyond the usual interactions with a customer to make sure that they feel heard, appreciated, understood, and valued.
The help we give consumers both before and after they make a purchase of goods or services is referred to as customer service. Whether we are creating pamphlets, answering calls, or carrying out cutting-edge research, our goal is to deliver exceptional customer service.
In essence, the three main elements of good customer service are professionalism, patience, and a "people-first" approach. While every customer's experience with customer care is different, as long as you're following these guidelines, you're doing things correctly.
Thus, option A is correct.
For more information about Superior customer service, click here
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Kasravi Co. had net income for 2024 of $300,000. The average number of shares outstanding for the period was 200,000 shares. Stock options for 12,000 shares had an option price of $30. The average market price of the common stock during the year was $36. What should Kasravi Co. report for diluted earnings per share for the year ended 2024
Answer: $1.49
Explanation:
First, we would calculate the diluted shares outstanding which will be:
= 200,000 + 12,000(6/36)
= 200,000 + 12,000(1/6)
= 200,000 + 2,000.
= 202,000
Diluted earnings per share = Net income / Diluted shred Outstanding
= 300,000 / 202,000
= $1.49
The Talley Corporation had taxable operating income of $455,000 (i.e., earnings from operating revenues minus all operating costs). Talley also had (1) interest charges of $70,000, (2) dividends received of $5,000, and (3) dividends paid of $10,000. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall that 50% of dividends received are tax exempt.
Required:
a. What is the firm’s taxable income?
b. What is the tax expense?
Answer:
a. What is the firm’s taxable income?
387.500
b. What is the tax expense?
81.375
Explanation:
You first need to determine Talley's taxable income:
Income after operating costs: $455,000
Less: Interest Expense -$70,000
Plus: Taxable Dividends Received 2,500
.
Taxable Income: 387.500
Federal tax rate 21%
Tax expense 81.375
Grape Vineyards LLC, the members of which include Howie and Ilya, can hold title to property because as a limited liability company the firm is
Answer:
A legal person
Explanation:
Limited liability company is a legal entity that is seperate from its owners. The owners of the company are only liable to pay the debts the companies owes to the extent of capital invested.
Also the company is allowed to own property that is not directly owned by the members.
As a legal person Grape Vineyards LLC can hold title to property.
There is no upper limit for members of a limited liability company.
The owners can therefore be distinct legally from the company as regards debts owed or property owned
