Answer:
Yes
Explanation:
Yes, Robin would need to pay because she knew that Ted was not licensed and still decided to hire him. Therefore, agreeing to contract Ted and pay him for the work that he has done. Regardless of whether or not Ted's job was legal or not Robin still agreed and must pay Ted. Ted will later have to deal with his own legal issues but that does not affect the contract that was agreed upon by both parties.
Suppose the cross-elasticity of demand for products A and B is 3.6, and for products C and D is -5.4. What can you conclude about how products A and B are related
Answer:
A and B are substitutes
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Rappaport Corp.'s sales last year were $385,000, and its net income after taxes was $23,000. What was its profit margin on sales
Answer:
5.97%
Explanation:
Profit margin is an example of profitability ratio
profitability ratio measures the ability of a firm to generate profit from its assets
Profit margin = net income / sales
= $23,000. / $385,000,
Three years ago, Charles purchased a health policy from the QRS Company; he has purchased two additional contracts from the same insurer since. Each contract contains the Other Insurance With This Insurer Provision. What happens if Charles has a claim
Answer: a. Only one policy will pay, the premiums for the other contracts will be returned.
Explanation:
When there are multiple insurance contracts from the same insurer and these contracts have a ''Other Insurance With This Insurer'' provision, it means that in cases where the insured wants to claim, they can choose whichever of the policies they want and that one will pay out but they cannot pick them all.
The premiums paid on the other contracts/s will be returned to the insured because it represents excess coverage.
Milden Company is a merchandiser that plans to sell 27,000 units during the next quarter at a selling price of $53 per unit. The company also gathered the following cost estimates for the next quarter: CostCost Formula Cost of good sold$23 per unit sold Advertising expense$173,000 per quarter Sales commissions6% of sales Shipping expense$68,000 per quarter $5.00 per unit sold Administrative salaries$83,000 per quarter Insurance expense$9,300 per quarter Depreciation expense$53,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Answer:
Part 1.
Contribution format income statement for the next quarter.
Sales $1,431,000
Less Variable Costs
Cost of Sales $621,000
Sales commissions $85,860
Shipping expense : Variable $135,000 ($832,860)
Contribution $598,140
Less Fixed Costs
Advertising expense $173,000
Shipping expense : Fixed $68,000
Administrative salaries $83,000
Insurance expense $9,300
Depreciation expense $53,000 ($386,300)
Net Income $211,840
Part 2.
Traditional format income statement for the next quarter.
Sales $1,431,000
Less Cost of Sales ($621,000)
Gross Profit $810,000
Less Operating Expenses
Sales commissions $85,860
Shipping expense : Variable $135,000
Advertising expense $173,000
Shipping expense : Fixed $68,000
Administrative salaries $83,000
Insurance expense $9,300
Depreciation expense $53,000 ($598,160)
Net Income $211,840
Explanation:
Contribution format income statement
Here the Company calculates Contribution. Contribution is the amount remaining after All Variable Costs are deducted from Sales Revenue. All the Fixed Costs are expensed in the year they are incurred.
Traditional format income statement
Here the Company calculates Gross Profit. Gross Profit is the amount remaining after All Cost of Sales are deducted from Sales Revenue. All the other costs incurred are expensed in the year they are incurred as operating expenses.
All changes save
1. Paid Furniture Depot $1300 payment in full. The two accounts that are affected are? (Check all that apply)
Debit cash $1300
Debit Furn Depot $1300
Credit cash $1300
Credit Furn depot $1300
Answer:
Debit Furniture Depot $1300
Credit cash $1300
Explanation:
Both furniture and cash are assets held by the company.
When an asset increases, in this case we purchased furniture, we must debit the asset account. On the other hand, when an asset decreases, we have less cash since we paid for the furniture, we must credit the account.
The accounts must always be balanced.
Ben Collins plans to buy a house for $166,000. If the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be five years from now?
Answer:
$183,264
Explanation:
The computation of the expected value for the five years from now is as followS:
As we know that
Future value = Present value × FV Value Factor
= $166,000 × 1.104
= $183,264
We simply multiplied the present value with the factor of the future value to determine the future value
Which of the following groups of accounts is increased with a debit?
Select one:
O a,
a. assets, revenues, expenses
Ob.
b. assets. liabilities, owner's equity
C. assets. liabilities, revenues
d. assets, drawing, expenses
A T-bill with face value $10,000 and 97 days to maturity is selling at a bank discount ask yield of 4.4%. a. What is the price of the bill
Answer: $9,881.44
Explanation:
Price of bill can be calculated with formula:
= Face value * ( 1 - (yield * days to maturity/days in year))
This are usually done using 360 days in a year not 365:
= 10,000 * ( 1 - (4.4% * 97/360))
= 10,000 * 0.9881444444
= $9,881.44
Suppose the price of movie tickets changes. The price change leads to a 10 percent decrease in the quantity demanded of movie tickets. This causes the total revenue from movie tickets to increase by 5 percent. Is the demand for movie tickets elastic, inelastic, or unit-elastic
Answer:
inelastic
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Demand is inelastic because the change in total revenue is less than the change in price.
elasticity of demand = 5/10 = 0.5
Elasticity of demand is less than 1
The opportunity cost of an action is always equal to: multiple choice the things you could have done instead of the action you chose to undertake. the time you give up to undertake the action. the money you give up to undertake the action. the next-best alternative for the resources used to undertake the action.
Answer:
the next-best alternative for the resources used to undertake the action.
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.
Hence, the opportunity cost of an action is always equal to the next-best alternative for the resources used to undertake the action.
What are the benefits of training?
Assume the following capital structure: Preferred stock, 5%, $50 par value, 1,200 shares issued and outstanding with dividends in arrears for the three prior years. Common stock, $100 par value, 2,200 shares issued and outstanding. Total dividends declared and paid in current year were $52,000. How much of the current dividend will be paid to the preferred stockholders assuming the preferred stock is cumulative
Answer:
$12,000
Explanation:
The computation of the preferred dividend in the case when the preferred stock is cumulative is given below:
= Dividend percentage × par value of each share × number of shares issued × number of years
= 5% × $50 × 1,200 shares × 4 years
= $12,000
Hence, the preferred dividend in the case when the preferred stock is cumulative is $12,000
Payroll Entries Urban Window Company had gross wages of $252,000 during the week ended July 15. The amount of wages subject to social security tax was $226,800, while the amount of wages subject to federal and state unemployment taxes was $32,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.6% The total amount withheld from employee wages for federal taxes was $50,400. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize the entry to record the payroll for the week of July 15.
Answer and Explanation:
The journal entry is given below
Wages expense Dr $252,000
To Social security tax payable ($252,000 × 6%) $15,120
To Medicare tax payable ($252,000 × 1.5%) $3,780
To employee federal income tax payable $50,400
To wages payable $182,700
(Being the payroll is recorded)
Here the wages payable is debited as it increased the expense and the payable is credited as it also increased the liabilities
A marketing plan is _______.
Answer:
A marketing plan is a part of an overall business plan
g The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $385,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.0
Answer:
$262,500
Explanation:
Current ratio = Current asset/Current liabilities
In line with the current ratio formula, to calculate the amount of short term debt increase, with the amount of current assets and current liabilities, we must add an amount such that the result 2.0
(1,312,500 + x) / (525,000 + x) = 2.0
Cross multiply
(1,312,500 + x) = 2.0 × (525,000 + x)
Open the brackets
1,312,500 + x = 1,050,000 + 2x
Collect like terms
1,312,500 - 1,050,000 = 2x - x
262,500 = x
It therefore means that the maximum that should be borrowed to buy inventory is $262,500
The demand for wooden pencils is very responsive to a change in price. That is, the demand for these pencils is highly elastic. Suppose that workers in this industry are successful in negotiating a higher wage from management. As a result:______
A. The price and quantity of pencils purchased will fall, and gross revenues will rise.
B. Price and quantity purchased will rise, and gross revenues will fall.
C. Price will fall, quantity purchased will rise, and gross revenues will rise.
D. Price will rise, quantity purchased will fall, and gross revenues will fall.
Answer:
D. Price will rise, quantity purchased will fall, and gross revenues will fall.
Explanation:
It will lead to a higher price of the good as the management has to take into consideration the amount to wages to be paid to the workers, thus increasing the price of the goods. This will result to a lower demand at a higher price because the price increases and competitions will take advantage of the situation and that will also reduce the revenue of the firm.
A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. Most of his income was, and continues to be, from gambling. His move A. raises GDP. B. decreases GDP. C. doesn't change GDP because gambling is never included in GDP. D. doesn't change GDP because in either case his income is included.
Answer:
The answer is C.
Explanation:
In calculating GDP of a country, illegal activities like gambling, betting, proceeds of crime, buying and selling of drugs are nor counted in the computation of GDP.
GDP can be calculated as follows:
C + G + I + (X-M)
Where:
C is Consumers' consumption/spending
G is Government's consumption/spending
I is business investment
X is the country's exports
M is the country's imports.
A plant asset has a cost of $43600 and a salvage value of $10900. The asset has a three-year life. If depreciation in the third year amounted to $5450, which depreciation method was used
Answer:
c. Sum-of-the-year's digits
Explanation:
As the asset has a three year life,
So, the sum of the digits is
= 3 + 2 + 1
= 6
Now
Depreciation expense for year 3 is
= (Cost of the plant - salvage value) × 1 ÷ total life
= ($43,600 - $10,900) × 1 ÷ 6
= $5,450
Hence, the sum of the year digits depreciation method is used
Calculate the present value PV of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time. HINT [See Quick Example 4.] (Round your answer to the nearest cent.) 15 years, at 3% per year, compounded annually
Answer:
$641.86
Explanation:
Future value = $1,000
Years = 15
Rate = 3%
The present value = FV*1/(1+i)^n
The present value = 1,000*1/(1+0.03)^15
The present value = 1,000*1/(1.03)^15
The present value = 1,000*1/1.5579674166
The present value = 1,000*0.6418619473970326
The present value = 641.8619473970326
The present value = $641.86
The present value of the investment is $641.86.
The present value of an investment is the value of the investment today. The present value can be determined by discounting the future value using the stated interest rate.
Present value = [tex]\frac{FV}{(1 + r)^{t} }[/tex]
FV = future value = $1000 r = interest rate = 3%t = time = 15[tex]\frac{1000}{(1.03)^{15} }[/tex] = $641.86
A similar question was solved here: brainly.com/question/9641711?referrer=searchResults
A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold 480,000 Sales revenue $ 1,830,000 Variable manufacturing expense $ 942,000 Fixed manufacturing expense $ 230,000 Variable selling and administrative expense $ 358,000 Fixed selling and administrative expense $ 196,000 Net operating income $ 104,000 The company's contribution margin ratio is closest to:
Answer:
$28.96%
Explanation:
Given the above information, we would calculate first the total variable cost
Total variable cost = Variable manufacturing selling expense + Variable selling and administrative expense
= $942,000 + $358,000
= $1,300,000
The next is to compute the contribution margin
Contribution margin = Sales - Total variable cost
= $1,830,000 - $1,300,000
= $530,000
Therefore,
Contribution margin ratio = (Contribution margin / Sales) × 100
= ($530,000 / $1,830,000) × 100
= 28.96%
Land was acquired in 2021 for a future building site at a cost of $40,800. The assessed valuation for tax purposes is $27,900, a qualified appraiser placed its value at $48,900, and a recent firm offer for the land was for a cash payment of $44,200. The land should be reported in the financial statements at:
Answer:
The land should be reported in the financial statement at $40,800
Explanation:
At the time the fixed asset is being recorded, it should be recorded at the purchase cost or historical price.
Since the land was purchased at $40,800 according to the question, also it is assessed for tax purpose at $27,900 and was valued at $48,900 by other appraisers including an offer of cash payment of $44,200.
But at the time of recording, the balance sheet would show at the price of $40,800
How can a customer pay an emailed QuickBooks Online invoice via credit card?
Answer: - Send A Message Via The Message Feature With Their Credit Card Number Select Review And Pay
- Apply For Account
- Pay Print Off A Form And Then Enter And Send Their Credit Card Details And Authorization Select Review And Pay
- Enter Payment Details
- Pay
Explanation:
A customer can pay an emailed QuickBooks Online invoice via credit card by doing the following;
- Send A Message Via The Message Feature With Their Credit Card Number Select Review And Pay
- Apply For Account
- Pay Print Off A Form And Then Enter And Send Their Credit Card Details And Authorization Select Review And Pay
- Enter Payment Details
- Pay
Let's examine the market for iPads. Assume iPads are a normal good, Microsoft Surfaces are a substitute, and Apple Pencils are a complement. If the price of silicon (a key component of iPads) increases, what would happen to Supply or Demand for iPads (all else held equal)?
Answer:
the supply curve for iPads would shift to the left, decreasing the quantity supplied at every price level. This shift would result in a price increase. Since the price of iPads increased, the demand will decrease, also decreasing the demand of Apple Pencils.
Since Microsoft Surface are substitutes, when the price of iPads increase, the demand for Surface tablets will increase.
State if each of the following statements is true or false. Justify your answer. Decision trees can help identify and describe real options. The option to expand increases PV. High abandonment value decreases PV.
Answer and Explanation:
a. The first statement is true as the technique of the decision tree would be represented as a tree-shaped for the possible outcomes also it would help to understand the risk attached with the projects plus it would also provide the options
b. The second statement is true as the present value is the value of the today it would be discounted with the cash flows in order to calculate the present value. If the company has more capital so it would increase in the cash flows so that the investment would be covered up
c. The third statement is false as the abandonment value is the sales value that would be sold immediately. It is not related with the present value also if there is high abandonment value so it would not decrease the present value
You have always thought that learning to scuba dive would be fun. However, this activity would cost money and require time away from other activities. This situation best exemplifies
Answer:
Trade-off
Explanation:
Trade-off means the decision depend upon the situation in order to maintain the substainable sequence that lies between the two desirable.
Since in the question it is mentioned that as the person wants to learn scuba dive that required time and the money so this represent the trade-off example
Differences in customer rage behaviors of customers from japan & usa (1200 words )
Answer:
There is difference in the behavior of people who belong to different nations. The people in USA will make different decisions based on their preferences than the decisions made by the people of Japan.
Explanation:
Customer rage is the response of customer to the faulty good. If the customer is not satisfied he may get angry and show some emotions. The behavior in this situation is different for every person. The people in USA might respond less angry than the people in Japan. Their anger and emotions is driven by many factor. The job security in the country, Climatic conditions, political situations, literacy rate, basic necessity problems and many others. The people living in a poor country may show anger in small things while the people in developed country are less angry and more understanding.
Carol maintains an office in her home where she conducts a dressmaking business. During the year she collects $4,000 from sales, pays $1,300 for various materials and supplies, and properly allocates $2,500 of rent expense and $500 of her utilities expense to the use of her home office. What amount of the rent and utilities expense may Carol deduct in the current year in computing her net income or loss from the dressmaking business
Answer:
$2,700
Explanation:
Calculation for What amount of the rent and utilities expense may Carol deduct in the current year in computing her net income or loss form the dressmaking business
Rent and utilities expense deduction=$4,000-$1,300
Rent and utilities expense deduction=$2,700
Therefore the amount of the rent and utilities expense may Carol deduct in the current year in computing her net income or loss form the dressmaking business will be $2,700
Brooklyn Cabinets is a manufacturer of kitchen cabinets. The two cabinetry styles manufactured by Brooklyn are contemporary and farmhouse. Contemporary style cabinets sell for $90 and farmhouse style cabinets sell for $85. Each cabinet produced must go through carpentry, painting, and fiishing processes. The following table summarizes how much time in each process must be devoted to each style of cabinet.
Hours per process
Style Carpentry Painting Finishing
Contemporary 2.0 1.5 1.3
Farmhouse 2.5 1.0 1.2
Carpentry costs $15 per hour, painting costs $12 per hour, and fiishing costs $18 per hour, and the weekly number of hours available in the processes is 3000 in carpentry, 1500 in painting, and 1500 in fiishing. Brooklyn also has a contract that requires the company to supply one of its customers with 500 contemporary cabinets and 650 farmhouse style cabinets each week.
Let
x = the number of contemporary style cabinets produced each week
y = the number of farmhouse style cabinets produced each week
a. Develop the objective function, assuming that Brooklyn Cabinets wants to maximize the total weekly profit.
b. Show the mathematical expression for each of the constraints on the three processes.
Hours available in carpentry: x1 + y1 ≤
Hours available in painting: x2 + y2 ≤
Hours available in fiishing: x3 + y3 ≤
c. Show the mathematical expression for each of Brooklyn Cabinets' contractual agreements.
Answer:
a) Objective Function:
P = $18.6x + $13.9y
b)
1. 2x + 2.5y [tex]\leq[/tex] 3000 For Carpentry
2. 1.5x +1.0 y [tex]\leq[/tex] 1500 For Painting
3. 1.3x + 1.2y [tex]\leq[/tex] 1500 For Finishing
c)
x [tex]\geq[/tex] 500
y [tex]\geq[/tex] 650
Explanation:
Data Given:
Contemporary Style Cabinets Sells For = $90
Farmhouse Style Cabinets Sell For = $85
Hours per process:
For Contemporary:
Time for Carpentry = 2.0
Time for Painting = 1.5
Time for Finishing = 1.3
Similarly,
for Farmhouse Cabinet style:
Time for Carpentry = 2.5
Time for Painting = 1.0
Time for Finishing = 1.2
Costing for Processes:
Carpentry = $15/hr
Painting = $12/hr
Finishing = $18/hr
Availability of hours in the week:
Carpentry = 3000 hours
Painting = 1500 hours
Finishing = 1500 hours
Orders for Cabinets in the week:
Contemporary Cabinets = 500 units/week
Farmhouse Style = 650 units/week
Suppose,
x = number of contemporary style cabinets
y = number of Farmhouse cabinets
Step 1:
We need to calculate the total cost of the cabinets first.
Cost of Contemporary Style:
(2 x $15) + (1.5 x $12) + (1.3 x $18) = $71.4/cabinet
Similarly,
Cost of Farmhouse Style:
(2.5 x $15) + (1 x $12) + (1.2 x $18) = $71.1/cabinet
We know that the selling price of Contemporary and Farmhouse cabinets is $90 and $85 respectively. So, we can calculate the profit of both the cabinets.
For Contemporary Style:
Profit = ($90-$71.4) =$18.6
For Farmhouse Style:
Profit = ($85-$71.1)= $13.9
a) Objective Function for the maximization of the profit:
We know that x represents contemporary style and y represents farmhouse style. So, the profit is the basically the objective function. So.,
Objective Function:
P = $18.6x + $13.9y
b) Mathematical Expression for the constraints, which are:
1. 2x + 2.5y [tex]\leq[/tex] 3000 For Carpentry
2. 1.5x +1.0 y [tex]\leq[/tex] 1500 For Painting
3. 1.3x + 1.2y [tex]\leq[/tex] 1500 For Finishing
c) Mathematical Expression for Contracts:
x [tex]\geq[/tex] 500
y [tex]\geq[/tex] 650
Assume that you open a 100 share short position in Jiffy Inc. common stock at the bid-ask price of $32.00 - $32.50. When you close your position the bid-ask prices are $32.50 - $33.00. If you pay a commission rate of 0.5%, calculate your profit or loss on the investment position
Answer:
There is a net loss of $132.50
Explanation:
First, we need to determine the cash flows at the time of open the position and close the position.
Cash outflow
Cash flow from opening the position = Value of position + Commission
Where
Value of position = Numbers of shares - opening value per stock = 100 x 33 = $3,300
Commision = 100 x 33 x 0.5% = $16.50
Placing values in the formula
Cash flow from opening the position = $3,300 + $16.50 = $3,316.50
Cash inflow
Cash flow from Closing the position = Value of position - Commission
Where
Value of position = Numbers of shares - opening value per stock = 100 x 32 = $3,200
Commision = 100 x 32 x 0.5% = $16
Placing values in the formula
Cash flow from opening the position = $3,200 - $16 = $3,184
Now calculate the profit or loss on the position
Net profit / loss = Cashinflow - Cash outflow = $3,184 - $3,316.50
Net Loss = $132.50
What is the future value (FV) of $82,797 in thirty years, assuming the interest rate is 16% per year
Answer:the Future Value of $82,797 in 30 years with 16% interest rate =$7,108,112.26
Explanation:
F V = PV x (1 + R)^n
Where
FV=Future Value
PV= Present Value
R =Interest rate
n= Number of years
F V = PV x (1 + R)^n
Future Value =$82,797 x ( 1+ 0.16) ^30
=$82,797 x ( 1.16) ^30
$82,797 x 85.849
=$7,108,112.26
Therefore, the Future Value of $82,797 in 30 years with 16% interest rate =$7,108,112.26
