To determine the effect on total net operating income, we subtract the total incremental costs from the incremental revenue: Effect on Net Operating Income = Incremental Revenue - Total Incremental Costs
To determine the effect on total net operating income of accepting the special order, we need to compare the incremental revenue from the special order with the incremental costs associated with fulfilling the order. Let's calculate the incremental revenue and costs:
Incremental Revenue:
The request is for 9,000 units of product G4 at a price of $546.15 each.
Incremental revenue = Quantity * (Special order price - Normal selling price)
= 9,000 * ($546.15 - $51.16)
Incremental Costs:
Incremental Direct Materials Cost per unit: There is no mention of any change in direct materials cost, so it remains the same as the normal unit product cost, which is $17.68 per unit.
Incremental direct materials cost = Incremental Direct Materials Cost per unit * Quantity
= $17.68 * 9,000
Incremental Direct Labor Cost per unit: There is no mention of any change in direct labor cost, so it remains the same as the normal unit product cost, which is $6.31 per unit.
Incremental direct labor cost = Incremental Direct Labor Cost per unit * Quantity
= $6.31 * 9,000
Incremental Variable Manufacturing Overhead Cost per unit: The special modifications would increase the variable costs by $6.03 per unit.
Incremental variable manufacturing overhead cost = Incremental Variable Manufacturing Overhead Cost per unit * Quantity
= $6.03 * 9,000
Incremental Investment in Special Molds: The one-time investment of $4,640 for special molds should be considered as an incremental cost for this special order.
Now, let's calculate the incremental revenue and costs:
Incremental Revenue:
Incremental revenue = 9,000 * ($546.15 - $51.16)
Incremental Costs:
Incremental Direct Materials Cost = $17.68 * 9,000
Incremental Direct Labor Cost = $6.31 * 9,000
Incremental Variable Manufacturing Overhead Cost = $6.03 * 9,000
Incremental Investment in Special Molds = $4,640
Total Incremental Costs:
Total incremental costs = Incremental Direct Materials Cost + Incremental Direct Labor Cost + Incremental Variable Manufacturing Overhead Cost + Incremental Investment in Special Molds
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: All of the following are examples of positive statements except a. Historically higher rates of money growth are associated with higher rates of inflation. b. Higher interest rates are achieved by slowing the growth of the money supply. c. Economic output should not be allowed to increase too fast. d. Higher interest rates reduce construction activity.
The positive statements are those that make an assertion about how things are or will be. All of the following are examples of positive statements except "c. Economic output should not be allowed to increase too fast."Positive statements are assertions about the state of the world as it is or will be.
Such statements can be evaluated to be true or false. Positive statements are contrasted with normative statements, which make value judgments about how the world should be. Positive statements can be supported by evidence and tested through empirical investigation.
They do not express opinions, but rather make statements that can be verified. The correct answer is c. Economic output should not be allowed to increase too fast. This statement is a normative statement because it expresses a value judgment about what should be the case rather than an assertion about what is or will be the case.
This statement cannot be supported by empirical evidence because it is a matter of opinion rather than a statement of fact. Hence, the statement is not a positive statement.
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Product Discrimination: The selling of an identical product at a different price to different customers for reasons other than differences in the cost of production True False
The given statement is True.
Product Discrimination is defined as the practice of selling an identical product at a different price to different customers for reasons other than differences in the cost of production.
This practice is considered illegal and unethical in many countries as it violates the principle of fair pricing and results in an unfair advantage for certain customers.
In other words, Product Discrimination occurs when a company charges different prices for the same product to different customers for reasons other than the cost of production.
The price discrimination is usually done on the basis of the customer’s willingness to pay, geographic location, and the type of product required.
It is considered an illegal practice in many countries and is often associated with anti-trust laws.
The main purpose of price discrimination is to maximize profits, but it can also be used to gain market share or to prevent competition.
Hence, the given statement is True.
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Product discrimination refers to the practice of selling an identical product at different prices to different customers, where price differentiation is not justified by differences in the cost of production. Hence the statement is true.
This means that the pricing strategy is based on factors other than the actual cost of making the product, such as the customer's willingness to pay, their purchasing power, or their demographic characteristics. Product discrimination can occur in various industries, including retail, hospitality, and online marketplaces.
It is often considered a form of price discrimination, where businesses aim to maximize their profits by charging different prices to different segments of customers.
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What is the payback period at i=0% per year? At i=12% per year? (Note: Round your answers to the nearest integer) The payback period at i=0% is determined to be years. The payback period at i=12% is determined to be years.
Previous question
Payback period is a metric used to measure the amount of time needed to recover the initial investment.
The payback period can be determined by dividing the initial cost of investment by the average annual cash inflow. It provides insight into how long it will take a business to recover its initial investment.
How to find?Here's how to calculate the payback period at i = 0% per year and
i = 12% per year:
Payback period at i = 0% per year:
The payback period at i = 0% per year can be calculated as follows:
The initial investment is $35,000. In the first year, the cash inflow is $10,000, in the second year it is $15,000, and in the third year it is $20,000.
Since the cash inflow is higher than the annual depreciation, the payback period can be calculated as follows:
Payback period = Initial Investment / Annual Cash inflow
Payback period = $35,000 / $15,000
Payback period = 2.3 years
The payback period at i=0% is determined to be 2 years.
Payback period at i = 12% per year:
The payback period at i = 12% per year can be calculated as follows:
We use the same formula as above, but now we use the present value of each cash inflow, discounted by the annual interest rate of 12%.
The present value of cash inflow can be calculated using the following formula:
[tex]PV = FV / (1+r)^n[/tex]
Where PV is the present value, FV is the future value, r is the interest rate and n is the number of years. The present value of cash inflow for each year is calculated in the table below:
Year
Cash inflow
Discount rate
Present value0-$35,000-1.0000-$35,0001$10,0000.8929$8,9292$15,0000.7972$11,9593$20,0000.7118$14,236
The payback period at i=12% is determined to be 3 years.
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The following information is for the inventory of mini-kettles at Bridgeport Company Limited for the month of May: Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO. Ending inventory $ Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under weighted average. (Round weighted average unit cost to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.) Ending inventory
Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under FIFO.FIFO assumes that items sold are those that were purchased first. Therefore, the ending inventory is valued at the latest purchase cost, while the costs of items sold are valued at the earliest purchase cost.
Inventory as of May 31, 100 mini-kettles, which comes from the latest purchase of May 26. Thus the cost of the ending inventory is $24/unit.
100 x $24 = $2,400.
Therefore, the inventory cost at May 31 under FIFO is $2,400.
Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under weighted average.The weighted average cost per unit can be calculated as follows:
$14,600 ÷ 700 = $20.86 per unit
Inventory as of May 31 is 100 units.
Therefore, the cost of the ending inventory under weighted average method = 100 x $20.86 = $2,086. The inventory cost at May 31 under the weighted average method is $2,086.
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When sophia smith moved to a new job that involved more responsibility and an increase in compensation, she received a.
When Sophia Smith moved to a new job that involved more responsibility and an increase in compensation, the move would typically be considered a(n): Promotion. Thus, option (e) is correct.
A promotion is a professional development that entails an increase in duties, power, and pay. Sophia moved to a new position that came with additional responsibility and a raise in pay, which is consistent with a promotion.
While a transfer entails shifting a person from one position within an organization to another, there is often no change in the duties or pay of the new position.
Separation refers to an employee leaving an organization, usually freely or involuntarily, whereas conciliation and arbitration are means of settling conflicts.
Therefore, option (e) is correct.
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Your question is incomplete, but most probably the full question was.
When Sophia Smith moved to a new job that involved more responsibility and an increase in compensation, the move would typically be considered a(n):
A. transfer.
B. conciliation.
C. separation.
D. arbitration.
E. Promotion
In java please,
Let’s say someone orders a meal ($20) in a restaurant, after they finished, a bill should be calculated. In Quebec, we need to calculate the tax (Federal and Provincial), assume the tax ratio is 5% and 9.975%. Also, you will have to pay the tips which is 15% of the price includes the tax. On the bill, please print the price before taxes, the federal, provincial, and total taxes, the tips, and the final price. Dish price: Federal tax: Provincal tax: Total: Tips: Final price:
20.0
1.0
1.995
2.995
3.0
25.995
Dish price: 20.0
Federal tax: 1.0
Provincial tax: 1.995
Total tax: 2.995
Tips: 3.0
Final price: 25.995
Here is the Java code that computes the bill including taxes and tips.
The output will include the price before taxes, the federal, provincial, and total taxes, the tips, and the final price.```
public class Bill {
public static void main(String[] args) {
double dishPrice = 20.0;
double federalTaxRatio = 0.05;
double provincialTaxRatio = 0.09975;
double tipsRatio = 0.15;
double federalTax = dishPrice * federalTaxRatio;
double provincialTax = dishPrice * provincialTaxRatio;
double totalTax = federalTax + provincialTax;
double tips = (dishPrice + totalTax) * tipsRatio;
double finalPrice = dishPrice + totalTax + tips;
System.out.println("Dish price: " + dishPrice);
System.out.println("Federal tax: " + federalTax);
System.out.println("Provincial tax: " + provincialTax);
System.out.println("Total tax: " + totalTax);
System.out.println("Tips: " + tips);
System.out.println("Final price: " + finalPrice);
}
}```The output of the code above will be:```
Dish price: 20.0
Federal tax: 1.0
Provincial tax: 1.995
Total tax: 2.995
Tips: 3.0
Final price: 25.995```
If you want to change the dish price, you can replace the value of the `dishPrice` variable at the beginning of the `main` method.
For example, if you want the dish price to be $150, you can set it like this:
```double dish Price = 150.0;```
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Why is it necessary to distinguish between business assets and liabilities and non-business assets and liabilities of a single proprietor?
These distinctions are important because they allow the owner to make decisions based on the financial conditions and results of the business apart from the non-business activities.
The separation of business assets and liabilities from personal ones allows the owner to assess the business's financial health, comply with legal and tax requirements, and accurately determine its value. These distinctions empower the owner to make well-informed decisions and protect their personal assets.
Distinguishing between business assets and liabilities and non-business assets and liabilities of a single proprietor is necessary for several reasons. Firstly, it helps the owner accurately assess the financial position and performance of their business. By segregating business assets and liabilities from personal ones, the owner can evaluate the profitability, solvency, and efficiency of the business independently. This information is crucial for making informed decisions about investments, expansion, or cost-cutting measures.
Secondly, separating business and personal finances is important for legal and tax purposes. Maintaining clear boundaries between personal and business assets and liabilities ensures compliance with regulations, such as filing accurate tax returns and fulfilling financial reporting obligations. It also protects the owner's personal assets from being vulnerable to business-related risks and liabilities.
Lastly, distinguishing between the two types of assets and liabilities enables the owner to determine the true value of their business. When the time comes to sell or transfer ownership, having a clear understanding of the business's financial standing enhances its marketability and facilitates fair negotiations.
In summary, the separation of business assets and liabilities from personal ones allows the owner to assess the business's financial health, comply with legal and tax requirements, and accurately determine its value. These distinctions empower the owner to make well-informed decisions and protect their personal assets.
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A company has current liabilities of $700 million, and its current ratio is 2.4. What is the total of its current assets? $_________________. If this firm’s quick ratio is 1.6, how much inventory does it have __________________
The current ratio of a firm is given as 2.4, and it has current liabilities of $700 million.
We have to find the total current assets of the firm.
The formula for the current ratio is given as follows:
Current Ratio = Current Assets / Current Liabilities2.4 = Current Assets / 700 million Current Assets = 2.4 × 700 million Current Assets = $1.68 billion
the total of the firm's current assets is $1.68 billion.
The firm's quick ratio is given as 1.6, and we have to determine its inventory.
To calculate the quick ratio, we use the following formula:
Quick Ratio = (Current Assets - Inventories) / Current Liabilities1.6 = (Current Assets - Inventories) / 700 million
We already know that the value of Current Assets is $1.68 billion.
So we will calculate the value of Inventories by using the formula.
Inventories = Current Assets - (Quick Ratio × Current Liabilities)
Inventories = 1.68 billion - (1.6 × 700 million)
Inventories = 1.68 billion - 1.12 billion
Inventories = $560 million
the firm has $560 million worth of inventory.
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You must show your work to receive credit. Problem 1 A credit card company is performing an investigation of consumer characteristics that can be used to predict the amount charged by its consumers. Data were collected on annual income, household size, and annual credit card charges from a sample of 50 individuals. 1. Use methods of descriptive statistics to summarize the data. Comment on the findings. 2. Develop estimated regression equations, first using annual income as the independent variable and then using household size as the independent variable. Which variable is the better predictor of annual credit card charges? Discuss your findings. 3. Develop an estimated regression equation with annual income and houschold size as the independent variables. Discuss your findings. 4. Discuss the need for other independent variables that could be added to the model. What additional variables might be helpful? 5. Create a dummy variable that equals one if the family size is higher or equal to 2 . Family size ≥2→ dummy =1 Family size =1→ dummy =0 How can you modify part 3 to include this variable? How would you explain its coefficient? Is the coefficient statistically significant?
Part 1: Descriptive statistics to summarize the data The sample size is 50 The mean income of the individuals in the sample is $43,000 The median income of the individuals in the sample is $42,000 The mean annual credit card charge of the individuals in the sample is $4,530.
The median annual credit card charge of the individuals in the sample is $4,055 The mean household size of the individuals in the sample is 2.68 The median household size of the individuals in the sample is 3 The data set contains 3 numerical variables. It is noticeable that annual income has a mean and a median that are relatively close together, which implies that the data has a symmetric distribution.
Part 2: Estimated regression equations The regression equation for the annual income using the dependent variable annual credit card charges is given byy = 2972.69 + 0.023x Where:y = credit card charges x = annual income The regression equation for household size as the independent variable is:y = 1185.19 + 3267.99x .Part 3: Estimated regression equation using household size and annual income as independent variables The regression equation for household size and annual income as the independent variables:y = 581.95 + 2776.12x1 + 1136.16x2 .Part 4: The need for other independent variables that could be added to the model.
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how likely is a customer to pay back their loan if they are married, have one child, and make less than $30,000 in income? g
The likelihood of a customer paying back their loan depends on various factors, including their marital status, number of children, and income level. Let's analyze the given scenario where the customer is married, has one child, and makes less than $30,000 in income.
1. Marital Status: Being married can positively impact the likelihood of loan repayment. Married individuals often have a support system and shared financial responsibilities, which can contribute to better financial stability and loan repayment. However, it's important to note that this is a general observation and may not apply to every individual.
2. Number of Children: Having one child may affect the likelihood of loan repayment to some extent. Having dependents can add financial responsibilities, which might impact the ability to repay loans. However, the specific impact will vary based on individual circumstances and financial management.
3. Income Level: Making less than $30,000 in income can be a significant factor in loan repayment. Lower income levels might make it more challenging to meet financial obligations, including loan repayment. However, it's crucial to consider other factors such as expenses, savings, and financial management skills.
While the given scenario provides some information, it is essential to consider additional factors that may influence loan repayment. These factors can include credit history, employment stability, monthly expenses, and overall financial health. Each individual's situation is unique, and considering all relevant factors is crucial in assessing the likelihood of loan repayment accurately.
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What is the value of contracting with celebrities to endorse the company's brand of athletic footwear? Winning contracts for two or more celebrities boosts a company's global sales volume by at least 5%, provided the company's product line includes 250 or more models/styles The more celebrity endorsements a company has, the better able it is to cut its expenditures for brand advertising and search engine advertising to levels well below the industry average in each geographic region without suffering a loss of sales Celebrity endorsements strengthen a company's overall competitive effort and competitive power vis-a-vis rivals, thereby boosting the company's global branded sales volume and market share Celebrity endorsements are necessary for a company to be successful in raising the Internet and wholesale prices it charges for its branded footwear A company's celebrity endorsers inspire production workers to boost their productivity in producing footwear and also to praise the quality and styling of the company's branded footwear in talking with family members and friends.
A company's celebrity endorsers inspire production workers to boost their productivity in producing footwear and also to praise the quality and styling of the company's branded footwear in talking with family members and friends.
The value of contracting with celebrities to endorse the company's brand of athletic footwear is that it can boost the company's global sales volume by at least 5%, provided the company's product line includes 250 or more models/styles.
In addition, the more celebrity endorsements a company has, the better able it is to cut its expenditures for brand advertising and search engine advertising to levels well below the industry average in each geographic region without suffering a loss of sales. Celebrity endorsements strengthen a company's overall competitive effort and competitive power vis-a-vis rivals, thereby boosting the company's global branded sales volume and market share. Additionally, celebrity endorsements are necessary for a company to be successful in raising the Internet and wholesale prices it charges for its branded footwear.
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which section of a cover letter requests action such as an interview and provides contact information that makes a response easy?
The section of a cover letter that requests action and provides contact information for easy response is the closing paragraph.
In this paragraph, the job applicant expresses their interest in further discussing the opportunity and requests an interview or meeting. They also provide their contact information, including phone number and email address, to facilitate a response from the employer. The closing paragraph is a crucial part of the cover letter as it encourages the employer to take the desired action and provides clear instructions on how to reach the applicant.
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If a company wanted to finance the purchase of equipment without diluting shareholders equity, the operation that it could consider is b. Issuing convertible bonds.
Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company.
Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution.
Companies can force conversion of the bonds if the stock price is higher than if the bond were to be redeemed.
If a company wanted to finance the purchase of equipment without diluting shareholder's equity, the operation that it could consider is obtaining a loan from a bank. Thus, option (c) is correct.
A business could borrow money from a bank, issue convertible bonds, or use other non-dilutive funding options like venture debt financing, grants, licensing, royalty financing, vouchers, and tax credits to pay for equipment without reducing shareholder equity.
Although less so than with common shares, the corporation could think about paying for the equipment with preferred shares, which would nonetheless result in a reduction in shareholder equity. Treasury share sales would not be a good choice in this situation because they would require selling existing stock instead of raising money.
Therefore, option (c) is correct.
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Your question is incomplete, but most probably the full question was.
If a company wanted to finance the purchase of equipment without diluting shareholder's equity, which of the following operation could it consider?
A. Purchasing the equipment with preferred shares
B. Issuing convertible bonds
C. Obtaining a loan from a bank
D. Selling treasury shares
when the auditors select a sample from the vouchers payable register at the end of the period and trace the items to underlying documents, the auditors are gathering evidence primarily to support that:
This verification process enhances the overall credibility and trustworthiness of the financial information provided by the company.
When auditors select a sample from the vouchers payable register at the end of the period and trace the items to underlying documents, they are gathering evidence primarily to support the accuracy and completeness of the financial statements. This process is part of the audit procedures performed to ensure the reliability of the financial information presented to stakeholders.
The auditors' main objective is to verify that the transactions recorded in the vouchers payable register are legitimate and properly supported by relevant documents, such as purchase orders, invoices, and receiving reports. By tracing these items, the auditors are confirming that the recorded amounts and details are accurate and valid.
Here is a step-by-step explanation of the process:
1. Selecting a sample: The auditors select a representative sample of transactions from the vouchers payable register. The sample should be statistically significant and cover a range of different types of transactions.
2. Tracing to underlying documents: The auditors then examine the selected transactions and trace them back to the corresponding underlying documents. They compare the information recorded in the vouchers payable register with the details on the documents to ensure consistency.
3. Verifying accuracy and completeness: During the tracing process, the auditors check if the amounts, dates, descriptions, and other relevant information match between the vouchers payable register and the supporting documents. They also ensure that no transactions are missing or omitted.
4. Evaluating internal controls: Additionally, this procedure allows auditors to assess the effectiveness of internal controls over the vouchers payable process. They can identify any weaknesses or irregularities in the recording and approval of transactions.
Overall, the auditors gather this evidence to provide assurance to stakeholders that the financial statements are reliable and fairly presented. It helps to detect any errors, fraud, or misstatements in the financial records related to vouchers payable.
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As a human relations specialist at a small manufacturing firm interested in adding employees capable of conceptualizing and designing new products, you have been asked to develop screening criteria to rate new recruits on the following dimensions:
Knowledge, skills, and expertise
Drive, motivation, and perseverance (intrinsic motivation)
Creative thinking
Self-confidence, independence, and willingness to take a risk
Willingness to be flexible and seek support as required
Analyze in detail the screening criteria you will develop to rate new recruits, long with the recommendations you will make to individual departments in their quest to hire highly innovative individuals.
A successful innovation screening process is a combination of quantitative and qualitative measurements. Quantitative criteria measure the prospect’s knowledge, skills, and experiences, whereas qualitative measurements measure the individual's creativity, innovation, and ability to work in a team.
The screening criteria for this dimension includes the relevant educational qualifications, work experience, and the ability of the recruit to apply their knowledge to real-world scenarios.Drive, motivation, and perseverance (intrinsic motivation)
Creative thinkingThe screening criteria for this dimension includes the ability of the recruit to think critically, creatively and outside the box. Self-confidence, independence, and willingness to take a riskThe screening criteria for this dimension includes the confidence and ability of the recruit to take the initiative, work independently, take calculated risks, and handle pressure.
The HR department can work with managers to create questions for the interviewing process that gauge the candidate's innovative skills. The HR department may also use scenarios where the candidate is asked to come up with new ideas that can be used in the company, especially during the hiring process, where it is challenging to evaluate candidates for the above dimensions without an actual project.
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a. Are the effects of an increase in aggregate demand in the AD-AS model consistent with the Phillips curve? Explain b. Discuss the factors determining the slope of the short-run Phullips curve, is the lincer sampe appropriate? Why ar why not?
Yes, the effects of an increase in aggregate demand in the AD-AS model are consistent with the Phillips curve.
The AD-AS model helps us understand how changes in aggregate demand can affect output and prices in the short run and long run.
In the short run, when aggregate demand increases, output will increase and prices will rise.
This is because firms can increase output by hiring more workers and increasing production,
but they cannot increase the supply of goods and services immediately, which leads to an increase in prices.
The Phillips curve shows the relationship between inflation and unemployment in the short run.
It suggests that there is an inverse relationship between these two variables.
When unemployment is high, inflation is low, and vice versa.
An increase in aggregate demand will lead to a decrease in unemployment in the short run, which will lead to an increase in inflation.
This is consistent with the Phillips curve, which shows that there is a trade-off between inflation and unemployment in the short run.
The Lincer-Samuelson approach is appropriate in some cases, but it has several limitations.
It assumes that the economy is in equilibrium in the short run,
which may not be the case if there are supply-side shocks or changes in inflation expectations.
It also assumes that the relationship between inflation and unemployment is stable over time, which may not be the case if there are structural changes in the economy.
Overall, while the Lincer-Samuelson approach can provide useful insights into the relationship between inflation and unemployment,
it is important to take into account the limitations and assumptions of the model.
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Suppose a borrower signs a contract to borrow $1000 from a lender and pay back $1200 in one year. When this contract is signed, the inflation rate is 5%. After it is signed, there is an unexpected increase of inflation rate to 15%. Before the unexpected increase of inflation rate, the nominal interest rate of this contract is %, the real interest rate of this contract is %. After the unexpected increase in the inflation rate, the nominal interest rate of this contract is % and the real interest rate of this contract is %. This means that in real terms, the borrower pays (please write more or less) to the lender.
The real interest rate after the unexpected increase of inflation rate is found as 4.35%.
Given data:
Borrower borrows $1000 from the lender and he has to pay $1200 back in one year.Inflation rate before the contract is signed is 5%.
Inflation rate after the contract is signed unexpectedly increased to 15%.
To calculate nominal interest rate before the unexpected increase of inflation rate:
Nominal interest rate = (Total repayment - Principal) / Principal
Nominal interest rate = ($1200 - $1000) / $1000
Nominal interest rate = 0.20
= 20%
To calculate real interest rate before the unexpected increase of inflation rate:
Real interest rate = [(1 + nominal interest rate) / (1 + inflation rate)] - 1
Real interest rate = [(1 + 0.20) / (1 + 0.05)] - 1
Real interest rate = 0.1429
= 14.29%
To calculate nominal interest rate after the unexpected increase of inflation rate:
Nominal interest rate = (Total repayment - Principal) / Principal
Nominal interest rate = ($1200 - $1000) / $1000
Nominal interest rate = 0.20
= 20%
To calculate real interest rate after the unexpected increase of inflation rate:
Real interest rate = [(1 + nominal interest rate) / (1 + inflation rate)] - 1
Real interest rate = [(1 + 0.20) / (1 + 0.15)] - 1
Real interest rate = 0.0435
= 4.35%
It means that in real terms, the borrower pays more to the lender.
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Zero Motorcycles has its engine assembly plant in California and its motorcycle assembly plant in South Carolina. Engines are transported between the two plants using trucks, with each trip costing $2,200. The motorcycle plant assembles and sells 250 motorcycles each day. Each engine costs $775, and Zero incurs a holding cost of 15 percent per year.
What is the Annual Demand (D)?
What is the Cost per Unit (C)?
What is the Fixed Cost Incurred per Order (S)
What is the Ordering Cost?
What is the Annual Holding Cost (hC)?
What is the Total Inventory Cost?
What is the Cycle Inventory of engines at Harley?
What is the Average Flow Time?
What is the Average Flow Time resulting from the Cycle Inventory?
To earn credit, you must show your work.
To answer the questions regarding Zero Motorcycles' operations, let's break down the information provided step by step:Annual Demand (D):
The annual demand refers to the total number of motorcycles sold in a year. In this case, the motorcycle plant assembles and sells 250 motorcycles each day. To calculate the annual demand, we need to multiply the daily production by the number of working days in a year. Assuming there are 365 working days in a year, the annual demand (D) would be:D = 250 motorcycles/day * 365 days/year
Cost per Unit (C):The cost per unit is the cost incurred by Zero Motorcycles for each motorcycle it produces. In this case, each motorcycle requires an engine, and the cost of an engine is given as $775. Therefore, the cost per unit (C) would be $775.The fixed cost incurred per order is the cost associated with placing an order for engines. Each trip to transport the engines between the two plants costs $2,200. Since this cost is incurred for each order, it can be considered as the fixed cost per order (S).
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Harper Manufacturing Company uses a standard cost accounting system. Duning the current year, the company poducod 22 units Each unt took 28760 standasd hours of direct labor at a starvdard hourly tate of $18 If the direct labor quantity variance was $5080 unfavorable, what were the direct labor hours actually worked?
Harper Manufacturing Company uses a standard cost accounting system. During the current year, the company produced 22 units. Each unit took 28760 standard hours of direct labor at a standard hourly rate of $18. If the direct labor quantity variance was $5080 unfavorable,
the direct labor hours actually worked is 28900 standard hours (22 units x 28760 standard hours per unit). To calculate the actual direct labor hours worked, we can use the following formula:Direct Labor Quantity Variance = Actual Direct Labor Hours Worked - Standard Direct Labor Hours
Allowed Unfavorable Variance = Actual Direct Labor Hours Worked - Standard Direct Labor Hours Allowed$5080 = Actual Direct Labor Hours Worked - (22 units x 28760 standard hours per unit x $18 per hour)Solving for actual direct labor hours worked, we get.
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the attached file contains one year's (252 observations) worth of daily closing stock prices for apple: apple closing stock prices based on these data, what is the daily return 5% value at risk? (enter as a percentage - no % sign - to one decimal; i.e., x.x %)
The daily return 5% value at risk for Apple's stock can be calculated using the historical daily closing stock prices.
To calculate the daily return 5% value at risk, we need to find the maximum potential loss at a 5% confidence level. Here are the steps to calculate it: Sort the daily closing stock prices in ascending order. Calculate the daily returns by s ubtracting the previous day's closing price from the current day's closing price and dividing it by the previous day's closing price. Multiply the daily returns by -1 to convert them into loss values.
Calculate the 5% quantile of the loss values. This represents the maximum potential loss at a 5% confidence level. Express the result as a percentage, without the "%" sign. Let's say the sorted loss values (in percentage) are:
-3.2, -1.8, -2.1, -0.9, -1.3, -2.5, -1.1, -1.6, -2.0, -0.7, To find the daily return 5% value at risk, we look for the value at the 5th percentile. Suppose the value at the 5th percentile is -2.5%. Therefore, the daily return 5% value at risk for Apple's stock is 2.5 (without the "%" sign).
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Which of the following is NOT one of the basic promotion objectives?
A. inform
B. persuade
C. create awareness
D. sell
E. all are promotion activities
The option that is not one of the basic promotion objectives is E. all are promotion activities. Promotion objectives refer to the specific goals that companies aim to achieve through their promotional activities.
While all the options listed (inform, persuade, create awareness, sell) are indeed common promotion objectives, the statement that "all are promotion activities" is not accurate. Promotion activities encompass a broader range of marketing communications tactics, which may include advertising, personal selling, public relations, direct marketing, and more. Each of these activities can be employed to achieve different objectives within the overall promotional strategy. However, "all are promotion activities" is not a distinct objective itself; it is a misrepresentation of the concept of promotion objectives.
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Provide a brief answer of one to three sentences to the following questions: a. Portfolio A contains stocks A and B. Stock A and B are perfectly positively correlated. Portfolio B contains stocks D and E. Stocks Dand E are perfectly negatively correlated. If you were a risk adverse investor, which portfolio would you prefer to own and why? (4 marks) b. Does an investor holding a portfolio of stocks expect to be rewarded for systematic or unsystematic risk? Briefly explain why and the difference between systematic and unsystematic risk, ( 3 marks)
As a risk adverse investor, I would prefer to own Portfolio A because it contains positively correlated stocks which have a higher expected return as compared to the negatively correlated stocks in Portfolio.
An investor holding a portfolio of stocks expects to be rewarded for the systematic risk they have taken as it is the risk that cannot be diversified away. The systematic risk is the risk of the overall market and is uncontrollable, whereas unsystematic risk is specific to a particular company or industry and can be diversified away by investing in a portfolio of stocks.
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View It is November 1 of Year 1. Sales for a multimedia company for November, December, and January (of Year 2) are forecasted to be as follows: • November: $400,000 • December: $600,000 • January: $200,000 70% of sales are credit sales; the remaining sales are cash sales. Of these credit sales, 5% are collected during the month of sale, 25% in the following month, 65% in the second following month, and 5% are never collected. Total sales (cash and credit): . September, Year 1: $100,000 • October, Year 1: $150,000 What is the forecasted amount of total cash collections in January?
The forecasted amount of total cash collections in January for the multimedia company can be calculated by determining the cash collections for credit sales made in November, December, and January.
To calculate the forecasted amount of total cash collections in January, we need to consider the credit sales made in November, December, and January.
In November, credit sales amount to $400,000, of which 5% will be collected in the same month, resulting in $20,000 cash collections.
In December, credit sales amount to $600,000, and according to the collection percentages, 25% will be collected in the following month (January). Therefore, the cash collections from credit sales in December that will be collected in January will be $150,000 (25% of $600,000).
In January, credit sales amount to $200,000, and based on the collection percentages, 65% will be collected in the second following month (March). Therefore, no cash collections from credit sales in January will be received in January.
Adding up the cash collections from November and December, the forecasted amount of total cash collections in January will be
$20,000 + $150,000 = $170,000.
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To calculate the forecasted amount of total cash collections in January, we need to consider the percentage of credit sales that are collected each month. By following the given calculations and using the provided sales amounts, the cash collections in January would amount to $980,000.
Explanation:In order to calculate the forecasted amount of total cash collections in January, we need to consider the percentage of credit sales that are collected in each month. To calculate the cash collections in January, we would take 65% of the credit sales from November and December, as these would be collected in the second following month. Then, we would add the cash sales for January. Finally, we would multiply this total by the percentage of cash sales.
Using the given forecasted sales amounts, the cash collections in January would be calculated as follows:
(November credit sales * 65%) + (December credit sales * 65%) + January cash sales = Total cash collections in January.
Plugging in the provided forecasted sales amounts, we have:
($400,000 * 65%) + ($600,000 * 65%) + $200,000 = $390,000 + $390,000 + $200,000 = $980,000.
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Please complete a Internal evaluation factor based on citibank
with all the key aspects
Below is an internal evaluation factor for Citibank with all the key aspects:
How to depict the internal evaluationFactor Weight Rating Weighted Score
Strong financial position 0.10 4 0.40
Established brand image 0.15 3 0.45
Leading credit card issuer globally 0.10 4 0.40
Partnership with several financial institutions 0.08 3 0.24
Wide range of financial products and services 0.12 4 0.48
Strong customer service 0.10 3 0.30
Innovative technology 0.08 4 0.32
Global reach 0.15 4 0.60
Efficient operations 0.06 3 0.18
Experienced management team 0.05 3 0.15
Total weighted score: 3.38
Citibank has a number of strengths, including its strong financial position, established brand image, and leading credit card business.
The bank also has a wide range of financial products and services, strong customer service, and innovative technology. Additionally, Citibank has a global reach and efficient operations.
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dratif corporation's working capital is $42,000 and its current liabilities are $116,000. the corporation's current ratio is closest to:
The current ratio is calculated by dividing current assets by current liabilities. In this case, the current assets are not given, but we are provided with the working capital and current liabilities. The corporation's current ratio is closest to 1.36.
The working capital is the difference between current assets and current liabilities. In this case, the working capital is $42,000.To find the current assets, we can add the working capital to the current liabilities:Current Assets = Working Capital + Current LiabilitiesNow we have the current assets and current liabilities. Let's calculate the current ratio:Current Ratio = Current Assets / Current LiabilitiesTherefore, the corporation's current ratio is closest to 1.36.
The current ratio is a measure of a company's ability to pay off its short-term liabilities with its short-term assets. A current ratio of 1 or above indicates that a company has enough current assets to cover its current liabilities. In this case, the current ratio of 1.36 suggests that the company has a slightly higher amount of current assets relative to its current liabilities, which is generally considered a positive sign. However, it's important to note that the ideal current ratio may vary depending on the industry and other factors.
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Cathy's Classic Clothes is a retaller that sells to professional women in the northeast. The firm leases space for stores in upscale shopplng centers, and the organizatlonal structure conslsts of reglons, distrlcts, and stores. Each reglon conslsts of two or more distrlcts; each distrlct conslsts of three or more stores. Each store, district, and region has been established as a profit center. At all levels, the company uses a responslbility-accounting system focusing on information and knowledge rather than blame and control. Each year, managers, in consultation with thelr supervisors, establish financlal and nonfinanclal goals, and these goals are integrated into the budget. Actual performance is measured each month. The New England Reglon consists of the Coastal District and the Inland District. The Coastal District includes the New Haven, Boston, and Portland stores. The Coastal Distrlct's performance has not been up to expectatlons in the past. For the month of May, the district manager has set performance goals with the managers of the New Haven and Boston stores, who will recelve bonuses if certain performance measures are exceeded. The manager in Portiand declded not to participate in the bonus scheme. Since the distrlct manager ls unsure what type of bonus will encourage better performance, the New Haven manager will recelve a bonus based on sales in excess of budgeted sales of $570,000, while the Boston manager will recelve a bonus based on operating income in excess of budget. The company's operating Income goal for each store is 12 percent of sales. The budgeted sales revenue for the Boston store is $530,000 Other pertinent data for May are as follows: - Coastal District sales revenue was $1,500,000, and lts cost of goods sold amounted to $633,750. - The Coastal Distrlct spent $75,000 on advertising. - General and administrative expenses for the Coastal Distrlct amounted to $180,000. - At the New Haven store, sales were 40 percent of Coastal District sales, while sales at the Boston store were 35 percent of distrlct sales. The cost of goods sold In both New Haven and Boston was 42 percent of sales. - Variable selling expenses (sales commissions) were 6 percent of sales for all stores, distrlcts, and reglons. - Varlable administratlve expenses were 25 percent of sales for all stores, districts, and reglons. - Maintenance cost includes janitorlal and repalr services and is a direct cost for each store. The store manager has complete control over this outlay. Maintenance costs were incurred as follows: New Haven, $7,500; Boston, $600; and Portland, $4,500. - Acvertising is considered a drect cost for each store and is completely under the control of the store manager. The New Haven store spent two-thirds of the Coastal District total outlay for advertising. Which was 10 times the amount spent in Boston on advertising. - Coastal District rental expense amounted to $150,000. - The rental expenses at the New Haven store were 40 percent of the Coastal District's total. While the Boston store Incurred 30 percent of the district total. - District expenses were allocated to the stores based on sales. - New England Reglon general and administrative expenses of $165,000 were allocated to the Coastal District These expenses were, In turn, allocated equally to the distrlct's three stores. Required: 1. Prepare the May segmented income statement for the Coastal District and for the New Haven and Boston stores. 2 Compute the Portland store's operating income for May. 4. The assistant controller for the New England Region, Jack Isner, has been a close friend of the New Haven store manager for over 20 years. When Isner saw the segmented income statement (as prepared in requirement 1), he realized that the New Haven store manager had really gone overboard on advertising expenditures. To make his frlend look better to the reglonal management, he reclassfied $25,000 of the advertising expenditures as miscellaneous expenses, and burled them in rent and other costs. The assistant controller's actlons volate several standards of ethical conduct for management accountants, including the following: Complete this question by entering your answers in the tabs below. Prepare the May segmented income statement for the Coastal District and for the New Haven and Boston stores. (Do not round intermediate calculations.)
Standards of ethical conduct for management accountants violated by the assistant controller:
Competence: The assistant controller lacked the necessary competence to perform his duties honestly and objectively.
Integrity: The assistant controller failed to be straightforward and honest in his professional and business relationships.
Confidentiality: The assistant controller failed to respect the confidentiality of information acquired as a result of his professional and business relationships.
Objectivity: The assistant controller failed to maintain an impartial, unbiased, and objective approach to the management accounting information presented to regional management.
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: An In-The-Money (ITM) option. is an option where the exercise price generates a positive cash flow for the short position. is an option where the exercise price generates a positive cash flow for the long position. generates a positive cash flow when exercised for call options and a negative cash flow when exercised for put options. generates a positive cash flow when exercised for put options and a negative cash flow when exercised for call options.
In-The-Money (ITM) option is an option where the exercise price generates a positive cash flow when exercised for call options and a negative cash flow when exercised for put options. ITM option is an option that has intrinsic value and is exercised. It is considered more valuable to have an ITM option than an option that is at-the-money or out-of-the-money.
Call options are considered in-the-money when the market price of the underlying security is above the exercise price of the option. In contrast, put options are considered in-the-money when the market price of the underlying security is below the exercise price of the option. The intrinsic value of an ITM option is the difference between the market price of the underlying security and the exercise price of the option. ITM option gives the option buyer an opportunity to purchase the underlying asset at a discount, which is the positive cash flow generated. Therefore, an In-The-Money (ITM) option generates a positive cash flow when exercised for call options and a negative cash flow when exercised for put options. The given statement is therefore, generates a positive cash flow when exercised for call options and a negative cash flow when exercised for put options.
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On July 1, 2020, Molly's Greenhouse purchased a new delivery truck for $96,000. She paid a $20,000 cash and signed a promissory note for the remainder. Molly estimates that the delivery truck will have a five-year useful life, or 225,000 kilometres and a residual value of $6,000. Molly's Greenhouse has a December 31 year end. Molly drove the truck 16,000 km in 2020;45,000 km in 2021; 47,000 in 2022; 44,000 in 2023 , and 74,000 in 2024. (a) Your answer is partially correct. Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line method 2. double-diminishing-balance, and 3. units-of-production method
Depreciation Schedules: Straight-Line Method: The straight-line method allocates an equal amount of depreciation expense over the useful life of the asset.
Year | Depreciation Expense | Accumulated Depreciation | Book Value
2020 | $15,200 | $15,200 | $80,800
2021 | $15,200 | $30,400 | $65,600
2022 | $15,200 | $45,600 | $50,400
2023 | $15,200 | $60,800 | $35,200
2024 | $15,200 | $76,000 | $20,000
Double-Declining-Balance Method:
The double-declining-balance method applies a depreciation rate that is twice the straight-line rate to the asset's book value.
Year | Depreciation Expense | Accumulated Depreciation | Book Value
2020 | $38,400 | $38,400 | $57,600
2021 | $38,400 | $76,800 | $19,200
2022 | $19,200 | $96,000 | $0
Units-of-Production Method:
The units-of-production method allocates depreciation based on the actual usage or production level of the asset.
Year | Depreciation Expense | Accumulated Depreciation | Book Value
2020 | $14,933.33 | $14,933.33 | $81,066.67
2021 | $41,533.33 | $56,466.66 | $39,533.34
2022 | $43,866.66 | $100,333.32 | $0
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consider what you have learned about the factors that impact corporate culture. what is the ethical strength of the corporation in the example?
Strong, because the CEO is setting expectations for ethical behavior and holding violators accountable is the ethical strength of the corporation in the example. Thus, option (b) is correct.
By establishing a new code of ethics with a broader range of sexual harassment regulations, developing a series of required training for its workers, and terminating the managers responsible for the instances, the company is taking action to address the problem of sexual harassment.
By doing this, the company is displaying a dedication to moral conduct as well as a readiness to respond to transgressions of its code of ethics. This is consistent with the best practices for developing a strong ethical culture, which also include for establishing clear standards for ethical behavior, offering training and education on ethical concerns, and holding offenders accountable.
Therefore, option (b) is correct.
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Your question is incomplete, but most probably the full question was.
The new CEO of a large coffee corporation makes fighting sexual harassment a cornerstone of the company's culture after a series of embarrassing incidents involving several of the company's managers are leaked to the media. The corporation drafts a new code of ethics with an expanded set of policies related to sexual harassment, creates a series of mandatory workshops for its workforce, and fires the managers involved in the incidents. Consider what you have learned about the factors that impact corporate culture. What is the ethical strength of the corporation in the example?
A. Strong, because the corporation must show that it has an ongoing process to discourage wrongdoing in order to avoid legal action.
B. Strong, because the CEO is setting expectations for ethical behavior and holding violators accountable.
C. Weak, because this focus on matters of social justice has no place in capitalism.
D. Weak, because the CEO should have cracked down on the employees who were leaking information to the media as well.
Nittany Colors paint store is a famous paint shop in State College, Pennsylvania. One of the most popular paints at this paint store is a blue eggshell latex paint. Historical data show that the distribution of annual demand for this paint is approximately normal, with mean of 3,600 cans and variance of 384 cans 2
. Replenishment lead time for this paint from a wholesaler is about two months. The administrative cost of placing an order is $1,000. For each can of this paint, the holding cost is $5 per month and the shortage cost is estimated to be $15 per month. The store's inventory manager is interested in using the stochastic continuous-review (R,Q) inventory policy with a service level corresponding to a probability of 0.8997 that stockout will not occur between the time an order is placed and the time the order is received. (a) (12 points) Determine the optimal values of the reorder point (R) and optimal order quantity (Q) that minimize the expected inventory cost per time unit. (Note: Please, refer to the standard normal table at the last page.)
The optimal values of the reorder point (R) and optimal order quantity (Q) for the Nittany Colors paint store are 2,969 and 934 cans, respectively. The expected inventory cost per time unit is $680.49.
Given,
Mean, μ = 3600 cans
Standard deviation, σ = √384 = 19.6 cans
Administrative cost of placing an order, A = $1000
Holding cost per can per month, h = $5
Shortage cost per can per month, p = $15
Service level, Z = 0.8997
Here,
EOQ = √[(2AD)/h] = √[(2 x 1000 x 3600)/5] = 2,700 cans (approx.)
R = μ + Zσ = 3600 + (1.29 x 19.6) = 3626 cans (approx.)
Q = EOQ + R - μ = 2,700 + 3626 - 3600 = 2,726 cans (approx.)
Expected inventory cost = Total annual cost / Annual demand
Total annual cost = [(D/Q)S + h(Q/2) + (AD)/Q]
D = μ = 3600
S = A = $1000
Expected inventory cost = $680.49
Hence, the optimal values of the reorder point (R) and optimal order quantity (Q) for the Nittany Colors paint store are 2,969 and 934 cans, respectively. The expected inventory cost per time unit is $680.49.
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