Diversification is a type of risk management strategy where an investor buys several types of investments to spread out risk.
Diversification helps investors reduce risk by spreading investment across different securities, sectors, and industries, so that one poorly performing investment won't drag down an entire portfolio of investments. There are different types of risk that can be eliminated by diversification.
The type of the risk that can be eliminated by diversification is called unique or specific risk.The unique or specific risk is also called unsystematic risk, which can be eliminated by diversification. Unsystematic risk is the type of risk that is specific to a particular company or industry, which means that it can be reduced or eliminated by diversifying the portfolio across different companies and industries.
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You purchased 200 shares of Amazon.com common stock on margin at $140 per share. Assume the initial margin is 0.60. You received a
margin call when the share price dropped to $93. What is your maintenance margin requirement (MMR)?
Please submit 2 decimal places (not a percentage).
Initial margin: 0.60The Initial Margin for a broker is the percentage of marginable securities that an investor must pay for using their own cash or approved securities. Therefore, the amount the investor borrows from the broker is determined by the initial margin.
Total borrowed amount = (Shares purchased x Cost per share) x (1 - Initial Margin Rate) = 200 x 140 x (1 - 0.60) = $11,200.As a result, the equity in the account is:Equity = Total asset value - Total borrowed amount = $18,600 - $11,200 = $7,400.To avoid a margin call, the equity in the account must be equal to or greater than the Maintenance Margin Requirement (MMR) multiplied by the total value of the securities held in the account.
In this case, the MMR can be calculated as follows:MMR = 1 - Initial Margin Requirement = 1 - 0.60 = 0.40.The total value of the securities held in the account is $18,600.Therefore, the MMR multiplied by the total value of the securities held in the account can be calculated as:MMR x Total value of securities held in the account = 0.40 x 18,600 = $7,440.The equity in the account ($7,400) is less than the MMR multiplied by the total value of the securities held in the account ($7,440). Therefore, a margin call would be issued.The maintenance margin requirement is: $7,440/18,600 = 0.40 (2 decimal places).Answer: 0.40
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Frito-Lay used Minneapolis-St.Louis area as a test market for their multigrain snack, Sunchips, as a way to gather experiential data. Frito-Lay use of a test market is an example of which of the following types of research?
Frito-Lay's use of Minneapolis-St. Louis area as a test market for their multigrain snack, Sunchips is an example of the experimental research method. This type of research is used to investigate cause-and-effect relationships among variables.
An experiment is a research method in which researchers manipulate one variable and measure its effect on another variable. In this case, Frito-Lay used Minneapolis-St. Louis area as a test market to determine how the multigrain snack, Sunchips, would perform in terms of sales and popularity among the targeted consumers.
The experimental research design is often used to gain a better understanding of how certain variables interact with each other. In Frito-Lay's case, the company wanted to test the viability of their new product before rolling it out nationwide.
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help pls!
The NPV (Net Present Value) of the project at \( 50 \% \) discount rate is: Zero 57,500 \( \$ 6,000 \) \( \$ 15,000 \)
The NPV (Net Present Value) of the project at \( 50 \% \) discount rate is $78,500
(Net Present Value) of a project is the difference between its present value and its initial investment.
It determines the profitability of an investment.
The NPV (Net Present Value) is calculated as follows:
NPV = Present value of future cash inflows – Initial investment
For a project to be acceptable, the NPV must be greater than or equal to zero.
If the NPV is greater than zero, then the investment is profitable.
If the NPV is equal to zero, then the investment is break-even.
If the NPV is less than zero, then the investment is unprofitable.
Since the NPV (Net Present Value) of the project at 50% discount rate is Zero, the initial investment is equal to the present value of future cash inflows at 50% discount rate.
Therefore, the initial investment is: Initial investment = Present value of future cash inflows at 50% discount rate= $57,500 + $6,000 + $15,000= $78,500Hence, the correct option is $78,500.
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a lender negotiated an $82,500 loan, which was 80% of the appraised value. what was the appraised value of the property?
To find the appraised value of the property, we can use the information that the loan amount is 80% of the appraised value.
Let's set up the equation:
Loan Amount = 80% of Appraised Value
$82,500 = 0.80 * Appraised Value
To find the appraised value, we can rearrange the equation:
Appraised Value = Loan Amount / 0.80
Appraised Value = $82,500 / 0.80
Appraised Value = $103,125
Therefore, the appraised value of the property is $103,125.
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Explain FIVE (5) reasons for marketers to
adopt product adaptation decisions.
Product adaptation is the method of modifying an existing product to make it more suitable for a foreign market. It refers to making necessary changes to an existing product to meet the requirements of a specific market. Marketers will need to consider product adaptation for many reasons. Here are five (5) reasons why marketers adopt product adaptation decisions:
1. Local Preferences: Marketers can use product adaptation to make a product more suitable for the local market. This approach can be adopted to provide a product that better meets the local market’s preferences. By adapting a product, a marketer can tap into a new market and become more competitive.
2. Cultural Differences: A product adapted to suit the needs of the local market is more likely to be successful. By adapting the product to suit the local culture, customers are more likely to accept and appreciate it. Products that resonate well with customers are more likely to sell.
3. Legal Requirements: Marketers may need to modify a product to meet the legal requirements of a particular market. This modification may be necessary to comply with regulations such as environmental, labeling, and safety standards. Failing to adapt a product to local legal requirements may lead to legal consequences.
4. Technical Compatibility: Marketers need to adapt their products to local technical requirements to ensure compatibility with local infrastructure. For instance, voltage differences may need to be adjusted to ensure that the product works as intended. Adapting the product to local technical requirements can increase the product’s lifespan and make it more appealing to customers.
5. Competitive Advantage: Product adaptation can give a marketer a competitive advantage. Adapting a product can lead to cost reductions, increasing sales, and customer satisfaction. A marketer can differentiate their product from the competition by tailoring it to local markets, leading to a more competitive edge in the market.
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if 14,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. if 20,500 units are produced and sold, what is the variable cost per unit produced and sold? 3. if 14,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. if 20,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. if 14,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. if 20,500 units are produced, what is the average fixed manufacturing cost per unit produced?
Variable cost per unit produced and sold (14,000 units): Divide the total variable cost by 14,000 units.
Variable cost per unit produced and sold (20,500 units): Divide the total variable cost by 20,500 units.
Total variable cost related to 14,000 units: Multiply the variable cost per unit by 14,000 units.
Total variable cost related to 20,500 units: Multiply the variable cost per unit by 20,500 units.
Average fixed manufacturing cost per unit produced (14,000 units): Divide the total fixed manufacturing cost by 14,000 units.
Average fixed manufacturing cost per unit produced (20,500 units): Divide the total fixed manufacturing cost by 20,500 units.
Variable Cost per Unit Produced and Sold (14,000 units):
To determine the variable cost per unit produced and sold, we need to divide the total variable cost by the number of units produced and sold. The variable cost is the cost that changes based on the level of production.
Variable Cost per Unit Produced and Sold (20,500 units):
Similar to the previous case, to calculate the variable cost per unit produced and sold when 20,500 units are produced and sold, we divide the total variable cost by the number of units.
Total Variable Cost (14,000 units):
To find the total variable cost related to the 14,000 units produced and sold, we multiply the variable cost per unit by the number of units.
Total Variable Cost (20,500 units):
Similarly, to determine the total variable cost related to the 20,500 units produced and sold, we multiply the variable cost per unit by the number of units.
Average Fixed Manufacturing Cost per Unit Produced (14,000 units):
Fixed manufacturing costs are those that remain constant regardless of the production volume. To calculate the average fixed manufacturing cost per unit produced when 14,000 units are produced, we divide the total fixed manufacturing cost by the number of units.
Average Fixed Manufacturing Cost per Unit Produced (20,500 units):
In this case, we calculate the average fixed manufacturing cost per unit produced when 20,500 units are produced by dividing the total fixed manufacturing cost by the number of units.
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Identify and analyse the problems the customer service team are
experience at work place relating to group development.
Customer service teams are a crucial component of any organization that works to provide effective and high-quality customer service.
However, the customer service team may experience a range of issues in their work relating to group development. There are several reasons that customer service teams may face problems in group development, such as communication problems, conflict, lack of trust, and personality differences.
Some of the problems that the customer service team may face in their work are as follows:
Communication problems - Inadequate communication can cause significant issues for customer service teams. It is because effective communication is essential to solve customer issues. Therefore, if communication is lacking, it can lead to mistakes, misunderstandings, and conflicts within the team.
Conflict - Conflicts can arise when there is a disagreement between two or more individuals on the team. For instance, when there are different opinions on how to solve a customer issue, it can lead to conflicts between team members.
Lack of trust - Trust is an essential aspect of team development. If there is a lack of trust among team members, it can affect the customer service team's productivity and their ability to provide effective customer service.
Personality differences - Every individual in a team has a different personality. These personality differences can lead to conflicts and misunderstandings between team members, which can ultimately impact the team's ability to deliver high-quality customer service.
In conclusion, there are several problems that customer service teams may experience in their work, relating to group development. These issues can have a significant impact on the team's productivity, effectiveness, and ability to provide high-quality customer service. Therefore, it is essential for organizations to address these problems and implement measures to improve group development within customer service teams.
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ACME Inc. issued 116000,$3 cumulative preferred shares to fund its first investment in wind generators. In its first year of operations, it paid $260000 of dividends to its preferred shareholders. How much are the dividends in arrears for the first year? Input your answer without a $ sign or comma. For example, if it is $123,456, input 123456 Your Answer: Answer
In this problem, we will calculate the dividends in arrears for the first year. Let's begin by finding out the total dividend payment made in the first year.Number of preferred shares issued = 116000Annual dividend per share = $3Total dividend payment for the first year = $3 × 116000= $348000Now we will calculate how much of the dividend payment went towards paying off dividends in arrears.Dividends in arrears = Total dividend payment for the first year - Dividend payment made in the first year= $348000 - $260000= $88,000Therefore, the dividends in arrears for the first year is $88,000.
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In a(n) ______ contract, the buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer requires.
Requirements contract
In a requirements contract, the buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer requires.
A requirements contract is a type of agreement commonly used in business transactions, especially when dealing with ongoing supply needs. It establishes a relationship between a buyer and a seller, where the buyer agrees to purchase all the goods or services they require from the seller, and the seller commits to fulfilling those requirements within the terms of the contract.
One of the key features of a requirements contract is that it does not specify a fixed quantity or volume of goods or services to be purchased. Instead, it is based on the buyer's actual needs or requirements, which can vary over time. The contract may include a minimum or maximum quantity clause to provide some boundaries, but the actual quantity purchased will depend on the buyer's demand.
This type of contract offers several advantages for both parties. For the buyer, it ensures a reliable source of supply, as the seller is obligated to fulfill their requirements. It simplifies the procurement process by eliminating the need for repeated negotiations and contracts for each purchase. It also allows the buyer to adjust their order quantities based on market conditions or changes in their own demand.
For the seller, a requirements contract provides a guaranteed customer and a steady stream of business. It allows for better planning and resource allocation since they can anticipate the buyer's needs. It also provides the opportunity for long-term partnerships and increased customer loyalty.
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Questions 36 (10 marks) This year is a good year for the economy, and the economy is currently in an inflationary gap (point A). Note: Use the AS-AD model to answer the question and be sure to identify the new equilibriums in the diagram. a) If the policy makers decide to let the natural adjustment mechanism to work its way out, what happens b) Suppose the government wants to bring output back to its long-run level in the short run via a change in lump-sum tax, what should it do? What happens to output and price level in the short run? Explain. (5 points) to the long-run equilibrium levels of output and price? Explain. (5 points)
(a) When the policy makers decide to let the natural adjustment mechanism work its way out in an inflationary gap (point A) in the economy, then the economy will move towards equilibrium on its own. When the natural adjustment mechanism works its way out,
the prices in the economy decrease as the aggregate demand shifts leftward and the short-run aggregate supply shifts rightward, thus decreasing the price level and increasing the quantity of output. Consequently, the inflationary gap will be closed, and the economy will return to its long-run equilibrium levels of output and price.
(b) If the government wants to bring output back to its long-run level in the short run via a change in lump-sum tax, then the government should reduce lump-sum tax to stimulate demand and increase output. As a result of this, the aggregate demand will shift rightward, and the short-run aggregate supply will shift leftward, thereby increasing both output and the price level in the short run.
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A commercial warehouse resides on a half-acre parcel of land. What type of property is this warehouse? Real Property Tangible Personal Property Intangible Personal Property Indirect Property
A commercial warehouse that resides on a half-acre parcel of land is classified as real property. Real property can be described as land and the permanent objects attached to it such as buildings, houses, warehouses, and other immovable property.
Examples of real property include houses, commercial buildings, and vacant land.A half-acre of land is approximately 21,780 square feet. A commercial warehouse can be defined as a building designed and constructed to store goods. Warehouses are typically used by manufacturers, wholesalers, and retailers.
A commercial warehouse is usually a large facility with multiple storage spaces. It is designed to be used for storage purposes only and does not contain any residential or office space.The legal definition of real property is land, including the air above it and the ground below it, and any buildings or other structures on it.
The ownership of real property is evidenced by a title or deed and carries with it a bundle of rights, including the right to sell, lease, mortgage, or give away the property, the right to possess and use the property, the right to exclude others from the property, and the right to receive income from the property if it is rented or leased.
A half-acre commercial warehouse is an excellent example of real property because it meets all the characteristics of this type of property.
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A pair of sneakers priced at $100 yields a consumer surplus of $25. what would happen to the consumer surplus if the price increased to $110? a. It increases. b. It decreases. c. It is unchanged. d. It may increase, decrease or remain unchanged
An increase in price from $100 to $110 would lead to a decrease in consumer surplus. Consumers would still have some surplus, but it would be smaller due to the higher price.
If the price of a pair of sneakers increases from $100 to $110, the consumer surplus would decrease. Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the actual price they pay.
In this case, the consumer surplus is $25 when the price is $100, indicating that consumers value the sneakers at $125 ($100 + $25) but only have to pay $100.
When the price increases to $110, the consumer surplus is reduced. The new consumer surplus would be the difference between the maximum value consumers place on the sneakers and the higher price they have to pay, which is now $15 ($125 - $110). This is a decrease compared to the initial surplus of $25.
Therefore, an increase in price from $100 to $110 would lead to a decrease in consumer surplus. Consumers would still have some surplus, but it would be smaller due to the higher price.
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Newland Company reported retained earnings at December 31, 2018, of 175,000. The following transactions occurred during 2019. An error was discovered. In 2017, depreciation expense was recorded at $22,500, but the correct amount was $12,500. Declared cash dividends $50,000. Declared stock dividends $35,000. Net income was $225,000. From the given information, choose the correct answer. a-The correction of 2017 net income is: b-Total amount of declared & paid dividend for 2018 is: c- The amount of retained earning reported in Dec 31,2019 is:
a) The correction of 2017 net income is a reduction of $10,000. b) The total amount of declared and paid dividends for 2018 cannot be determined based on the information. c) The amount of retained earnings reported on December 31, 2019, is $230,000.
To determine the correct answers, we need to analyze the information and apply it to the relevant financial statements.
a) The correction of 2017 net income:
To correct the 2017 net income, we need to adjust the depreciation expense. The error resulted in an overstatement of $10,000 ($22,500 - $12,500) in depreciation expense. This overstatement decreased net income. Therefore, we need to reduce the reported net income for 2017 by $10,000.
b) Total amount of declared and paid dividends for 2018:
The information provided doesn't specify the payment status of the declared dividends. We cannot determine whether the dividends were paid in full or partially. Therefore, we can't accurately determine the total amount of declared and paid dividends for 2018 based on the information.
c) The amount of retained earnings reported on December 31, 2019:
To calculate the retained earnings reported on December 31, 2019, we need to consider the following:
Retained Earnings at December 31, 2018: $175,000
Net Income for 2019: $225,000
Declared Cash Dividends for 2019: $50,000
Declared Stock Dividends for 2019: $35,000
To calculate the retained earnings at December 31, 2019, we start with the retained earnings at the beginning of the period and then add the net income for the period while subtracting any declared dividends.
Retained Earnings at December 31, 2019:
= Retained Earnings at December 31, 2018 + Net Income for 2019 - Declared Dividends for 2019
= $175,000 + $225,000 - $50,000 - $35,000
= $315,000 - $85,000
= $230,000
Therefore, the amount of retained earnings reported on December 31, 2019, is $230,000.
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Quiz company produces four products from a common input. Joint costs to produce one batch total $130,000. All products can either be sold.
Gallons Weight Factor Sales Price At Split-Off Processing cost Processed Sales Value
Product 1 1,400 1.0 $15 / gal $2 / gal $20 / gal
P,2 2,600 2.0 20 4 25
P,3 2,500 1.5 26 5 30
P,4 3,500 2.5 35 5 40
Note: For all questions, round allocation ratios to four decimal points, and round all dollar amounts to the nearest dollar. Give your answers using dollar signs and commas but no decimal points (cents). EXAMPLE: $12,365.
1. Determine the amount of joint costs allocated to product 1 using the physical units method
2. Determine the amount of joint costs allocated to product 1 using the weighted average method
3. Determine the amount of joint costs allocated to product 1 using the sales value at split-off method
4. Determine the amount of joint costs allocated to product 1 using the net realizable value method
5. Determine the amount of joint cost allocated to product 1, using the e constant gross margin percentage method (use sales value after processing)
1. The joint costs allocated to Product 1 using the Physical Units Method will be, Joint cost allocation to Product 1 = (1400/10,000)*$130,000= $18,200
2. The joint costs allocated to Product 1 using the Weighted Average Method will be:
Gallon Weighted Factor Total = Σ (Gallons * Weight Factor)Product 1 = (1,400 * 1) = 1,400P,2 = (2,600 * 2) = 5,200P,3 = (2,500 * 1.5) = 3,750P,4 = (3,500 * 2.5) = 8,750Total = 19,100Allocation ratio for product 1 = Product 1 / Total = 1400 / 19,100 = 0.0733Joint cost allocation to Product 1 = Allocation ratio * Joint Cost = 0.0733 * $130,000 = $9,529
3. The joint costs allocated to Product 1 using the Sales Value at Split-Off Method will be:
Total sales value = $20 + $25 + $30 + $40 = $115Allocation ratio for product 1 = $20 / $115 = 0.174Joint cost allocation to Product 1 = Allocation ratio * Joint cost = 0.174 * $130,000 = $22,620
4. The joint costs to Product 1 using the Net Realizable Value Method will be: Product 1 Joint Costs = Joint Cost * (Product 1's Sales Value - Remaining Costs of Production)Product 1's Sales Value = $20Product 1's Remaining Costs of Production = $2 + $4 = $6Product 1 Joint Costs = $130,000 * ($20 - $6) / ($20 + $25 + $30 + $40 - $6)Product 1 Joint Costs = $130,000 * (14 / 95) = $19,180
5. Joint cost allocated to Product 1 using the E-constant gross margin percentage method (use sales value after processing) will be:Gross Margin Percentage = (Processed Sales Value - Processing Costs) / Processed Sales Value = ($20 - $2) / $20 = 0.9 or 90%Allocation ratio for product 1 = $20 * 90% / ($20 * 90% + $25 * 85% + $30 * 83.3% + $40 * 87.5%) = 0.0734Joint cost allocation to Product 1 = $130,000 * 0.0734 = $9,542cost allocated to product 1 using different methods are:
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the company cost of capital is the expected rate of return that investors demand from the company's assets and operations.
The company cost of capital refers to the expected rate of return that investors require from a company's assets and operations.
It represents the cost of financing the company's operations and is an important metric for assessing the financial performance of the company. Cost of capital is expressed as a percentage and is determined by the weighted average of the costs of debt and equity capital. Debt capital refers to money borrowed from creditors, such as banks, and must be repaid with interest. Equity capital, on the other hand, refers to money invested by shareholders in exchange for ownership in the company.
The cost of debt is typically lower than the cost of equity because it is less risky for investors. However, companies with too much debt may have difficulty paying off their creditors, leading to bankruptcy. Equity capital is more expensive than debt capital, but it does not have to be repaid and does not incur interest charges.Cost of capital is an important metric for companies to consider when making investment decisions.
NPV is the difference between the present value of cash inflows and the present value of cash outflows, and is used to determine the profitability of an investment. If the NPV is positive, the investment is considered profitable, while a negative NPV indicates that the investment will not be profitable.
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A manufacturer of major appliances provides the following information about the operations of the heating division FC=$27880,VC=$380,SP=$670, capacity =120 units what is the revenue equation * Your answer This is a required question what is the cost equation? * Your answer what is the break even volume and break even Revenue * type as (volume, revenue) what is the break even volume and break even Revenue * type as (volume, revenue) Option 1 What is the contribution margin * Option 1 what is the contribute rate * Your answer what is the break even in sales? * what is the break even in sales? * 1 point Your answer Assume variable cost and revenue both increased by 10% and fixed cost 3 points decreased by 5000 , what is the break even sales?
Given,FC = $27880VC = $380SP = $670Capacity = 120 unitsRevenue Equation can be calculated as follows:Revenue = SP * Quantity = $670 * QCost Equation can be calculated as follows:
Cost = FC + VC * Quantity = $27880 + $380 * QBreak Even Volume and Break Even Revenue can be calculated as follows:Break Even Volume (BEV) = FC / (SP - VC) = $27880 / ($670 - $380) = 88.94 units Break Even Revenue (BER) = SP * BEV = $670 * 88.94 = $59,738.32Contribution Margin can be calculated as follows:Contribution Margin = SP - VC = $670 - $380 = $290Contribution Rate can be calculated as follows:
Contribution Rate = (Contribution Margin / SP) * 100 = ($290 / $670) * 100 = 43.28%Break Even in Sales can be calculated as follows:Break Even in Sales = FC / Contribution Rate = $27880 / 43.28% = $64376.38When variable cost and revenue both increase by 10% and fixed cost decreases by $5000, the new FC = $22880, new VC = $418 and new SP = $737.4
Break Even Volume and Break Even Revenue can be recalculated as follows: Break Even Volume (BEV) = $22880 / ($737.4 - $418) = 43.25 unitsBreak Even Revenue (BER) = $737.4 * 43.25 = $31,851.15Break Even Sales can be recalculated as follows:Break Even Sales = $22880 / 46.32% = $49407.45
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two situational exercises that are used primarily with managerial and professional workers include
Two situational exercises commonly used with managerial and professional workers include:
Case Studies: Case studies are hypothetical scenarios or real-life examples that simulate challenging situations typically encountered in managerial or professional roles. Participants are presented with a detailed description of a problem or a complex business situation and are required to analyze the information, identify key issues, and propose effective solutions. Role-Playing: Role-playing exercises involve participants assuming different roles and acting out specific workplace scenarios. These scenarios can include conflicts between team members, negotiations with clients or stakeholders, or challenging interactions with subordinates or superiors. Role-playing exercises provide an opportunity to practice and assess interpersonal skills, communication, conflict resolution, leadership, and decision-making in a realistic setting.
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Assume a merchandising company's estimated sales for January, February, and March are $108,000, $128.000, and $118.000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise Inventory equal to 25% of next month's cost of goods sold. What are the required merchandise purchases for January? Multiple Choice $79.000 $67800 $61,800 0 $7600
We must calculate the cost of goods sold for January and deduct the starting inventory to arrive at the necessary additional merchandise purchases for the month.
The cost of products sold is always 60% of sales, therefore given that January's expected sales are $108,000, $108,000 * 0.60 equals $64,800.We must determine 25% of the cost of products sold for February in order to determine the beginning inventory for that month, which comes out to $128,000 * 0.60 * 0.25 = $19,200. The necessary goods purchases for January are determined by deducting the initial inventory from the cost of products sold: $64,800 - $19,200 = $45,600. All of the available options are therefore incorrect. The right response for the necessary January retail purchases is $45,600.
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FRESH CUT FRIES
Jannet runs a French fries stand in the farmers' market on Saturdays between 8:00
AM and 2:00 PM. All fries she produces during these hours are sold, but she also
sells 10% more after 2:00 PM. Early morning on Saturday, she washes three 60-Kg
bag of potatoes, press cuts them store them in a buckets of water. She takes batches
of cut potatoes in drain holding 6 kg of cut potatoes from the bucket, and lets them.
drain for 5 minutes (potatoes oxidize quickly in contact with air so they should be
used quickly). Each drained batch is deep fried for 5 minutes. The fried batches are
cooled for 3 minutes. Each batch yield 15 boxes of French fries. Jannet takes 2
minutes to box the fried potatoes, add napkins, utensils, ketch-up, vinegar and
mustard packs to the box and hand it to customer.
a. What are the value-added non-value added activities in Jannet's operation?
[1.5 marks]
b. What kind of waste portion do you see in Jannet's operation is waste? [1.5
marks
c. How can Jannet create a pull production system using Kanban? [3 marks]
d. How many Kanbans does Jannet need? [4.5 marks)
a. Value-added and non-value added activities in Janet's operation: Value-added activities in Janet's operation includes slicing of potatoes, frying, and packaging.
Non-value added activities include washing, letting the potatoes drain, cooling the fries after frying, and packing with napkins, utensils, ketchup, vinegar, and mustard packs.
b. Types of waste portion that can be seen in Janet's operation: operation's waste portion is overproduction because Janet produces more fries than the demand of customers.
c. Creating a pull production system using Kanban by Jannet:To create a pull production system using Kanban, Jannet needs to focus on producing a certain quantity of French fries based on customer demand, which can be determined through the use of Kanban. She can use a two-bin Kanban system to limit production to customer demand. The two bins can be labeled "In Production" and "Available for Sale," with the former containing the sliced potatoes, and the latter containing the fries.
d. Kanbans Jannet needs:Jannet needs three Kanbans to implement a two-bin Kanban system. A Kanban is needed for the "In Production" bin and two Kanban's are needed for the "Available for Sale" bin.
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Obtain a copy of a pro forma credit agreement from the credit provider [this copy is to be annexed to the assignment]. Students may use their own pro forma agreement or you may use the one's uploaded to Blackboard. - Familiarize yourself with Chapter 4 particularly parts A,B and C as well as Chapter 5 , parts A and B of the NCA. - Create a checklist of provisions with which the credit agreement must comply. - Evaluate the pro forma agreement and determine which of the provisions the agreement complies with. [Please note that this part must be completed in the form of a checklist]
Correct answer is Obtain a copy, Familiarize yourself, Create a checklist, and Evaluate pro forma.
To complete the task, the following steps should be followed:
1. Obtain a copy of a pro forma credit agreement from the credit provider or use the provided pro forma agreement.
2. Familiarize yourself with Chapter 4 (parts A, B, and C) and Chapter 5 (parts A and B) of the NCA.
3. Create a checklist of provisions that the credit agreement must comply with. The checklist should include all the relevant provisions from Chapter 4 and Chapter 5 of the NCA.
4. Evaluate the pro forma agreement by comparing it to the checklist of provisions. Determine which provisions the agreement complies with and record any provisions that it does not comply with.
Following these steps will ensure compliance with the NCA and facilitate the evaluation of the pro forma credit agreement.
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Kansas Enterptises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a five-year service fife, with a residual value of 56,750 at the end of five years Using the draight-line method, depreciation expense for 2021 would be: Muhiple Choice 313,550 $6,250 529.800
We must figure out the equipment's depreciable cost and divide it by its anticipated useful life in order to establish the depreciation charge for 2021 using the straight-line technique.
Information disclosed - $74,500 in equipment costs Value remaining: $56,750 5 year useful life Equipment Cost - Residual Value is the depreciable cost Cost to Depreciate = $74,500 - $56,750 Cost Depreciable = $17,750 Annual Depreciation Cost = Depreciable Cost / Useful Life Cost of Depreciation for 2021 = $17,750 / 5 For 2021, depreciation costs will be $3,550. As a result, $3,550 would be the straight-line method's depreciation charge for 2021.
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term structure of interest rates consider an economy with a single consumer. there is one good in the economy, which arrives in the form of an exogenous endowment obeying
The term structure of interest rates refers to the relationship between interest rates and the time to maturity of debt instruments. In an economy with a single consumer and one good, the term structure of interest rates can be influenced by various factors.
One important factor that affects the term structure of interest rates is the expectations of future interest rates. If investors anticipate that interest rates will rise in the future, they may demand higher yields on longer-term debt instruments to compensate for the higher interest rates they expect to receive in the future.Conversely, if investors anticipate that interest rates will fall in the future, they may be willing to accept lower yields on longer-term debt instruments.
Another factor that can impact the term structure of interest rates is the liquidity preference of investors. Investors generally prefer more liquid assets, which can be easily bought or sold without significant price changes.Additionally, the term structure of interest rates can be influenced by the risk preferences of investors. Investors typically require a higher return for taking on higher levels of risk. Therefore, investors may demand a higher yield on longer-term debt instruments to compensate for the increased risk.
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the auto add function adds up numbers in a column or row you specify true of false
The auto add function determines if it adds up numbers in a specified column or row, resulting in either true or false.
The auto add function is a useful tool that calculates the sum of numbers within a designated column or row. It analyzes the provided range and returns a boolean value to indicate whether the addition process was successful or not. When the function successfully adds all the numbers, it returns "true," indicating that the addition was performed accurately. Conversely, if there are non-numeric values or errors present within the specified range, the function returns "false," indicating that the addition process encountered an issue. This feature is beneficial when you need to validate the correctness of calculations or ensure that all the values within a specific range are indeed numeric before proceeding with further computations. By utilizing the auto add function, you can conveniently check the accuracy of your numerical data and identify any potential errors or inconsistencies.
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A
____ is a legelly set minimum price. Sellers cannot lower tgeir
proce below it.
A price floor is a legally set minimum price. Sellers cannot lower their prices below it. A price floor is a government intervention in the market that sets a minimum price that a product or service may be sold at, that is, it establishes a lower limit for the price.
When a price floor is implemented, it is often intended to benefit producers by allowing them to receive a higher price than they otherwise would have received. The main benefit is that producers will have more income, and they will be more likely to continue to produce. The minimum wage is one example of a price floor. It is a legal minimum wage that employers must pay their workers, regardless of whether or not the market rate is lower.
The intention of the minimum wage is to ensure that workers receive a decent wage that is sufficient to meet their basic needs. However, one of the main criticisms of price floors is that they can lead to surpluses. When the price floor is set above the market price, the quantity supplied will exceed the quantity demanded. As a result, there will be an oversupply of the product, which can lead to a waste of resources.
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A normal demand curve is downward sloping. Identify any four
exceptional or abnormal demand curves. In each case name, sketch,
explain, and give 2 examples each of the goods that exhibit such
demand
A normal demand curve is the most widely recognized sort of demand curve, which shows the connection between the cost of the item and the amount demanded by consumers.
This demand curve is normally downward sloping. Nonetheless, the exceptional or abnormal demand curves may have a rising, vertical, or level shape. The following are the four exceptional or abnormal demand curves that are explained below :Inferior Goods Demand Curve :It is upward-sloping because of the low quality of the product or substitute accessibility.
Goods Demand Curve: It is upward sloping, which means the quantity demanded increases as the cost of the item rises. This kind of good may not have any substitutes and is used primarily by the lower class. This demand curve is contrary to the law of demand. Veblen goods are frequently referred to as high-class products. A Veblen product's value is based on its status or social implications rather than its usefulness or utility. Examples:
It is vertical since it is an inelastic good with no substitutes. The price of the commodity has little or no effect on demand. Examples: These goods are unique since they do not follow the typical downward sloping demand curve. They could be upward sloping, vertical, or level demand curves.
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In this chapter, you learned productivity is the ratio of inputs to outputs. Consider each of the following organizations:
bank
community college
large laundry/dry cleaners
hospital
restaurant
Instructions:
For each of the organizations shown, identify several important productivity measures managers could use to measure the efficiency of their organization. (Hint: Think broadly, including measures that go beyond profitability or cost measures.)
Productivity is a measure of efficiency. It is defined as the ratio of inputs to outputs. The term "input" refers to the resources used to produce the product, whereas the term "output" refers to the goods or services produced by an organization.
Here are several important productivity measures managers could use to measure the efficiency of different organizations:
Bank
Customer satisfaction and retention rate is a significant measure of productivity in the banking industry. A bank’s productivity could be measured in terms of how quickly they complete transactions for their customers, the level of customer satisfaction, and how quickly they resolve customer complaints.
Community College
A community college’s productivity can be measured in several ways, including student graduation rates, course completion rates, and student engagement. For instance, if a school has a high graduation rate, it implies that it is productive in producing qualified students.
Large laundry/dry cleaners
In a laundry, productivity measures could include the number of clothes washed and dried in a day, the number of clothes lost or damaged, and the level of customer satisfaction. Productivity could also be measured in terms of the amount of water and electricity used in the process of washing clothes.
Hospital
In a hospital, productivity measures could include patient satisfaction, wait times, and the number of patients treated daily. Furthermore, the number of patients who come back after being treated, the number of fatalities, and the hospital's ability to control infection rates are other important productivity measures.
Restaurant
In a restaurant, productivity could be measured in terms of the speed of service, the quality of food served, customer satisfaction, and the number of dishes served per hour. Additionally, employee satisfaction, staff turnover rates, and other factors that could impact the customer's experience could be included as important productivity measures.
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Archie would be able to pay off a portion of his loan and would likely not incur a penalty because prepayment clauses are automatically included in Florida unless specifically excluded.
Archie wanted to pay off a portion of his mortgage loan. However, he was worried that he would be stuck with a penalty. What is likely the outcome?
Archie wanted to pay off a portion of his mortgage loan, but he was concerned about incurring a penalty. It is probable that he will not be penalized since prepayment clauses are automatically included in Florida, unless they are explicitly excluded. Would Archie be able to pay off a portion of his loan without incurring a penalty.
Yes, most probably because prepayment clauses are routinely included in Florida unless specifically excluded. This means that Archie has a high likelihood of paying off a portion of his mortgage without incurring a penalty. What is a prepayment penalty.
A prepayment penalty is an extra charge imposed by the mortgage lender if the borrower repays the loan ahead of schedule. This charge is designed to compensate the lender for the loss of interest payments that the borrower would have made over the life of the loan balance.
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Suppose you manage a corner grocery store. If peanut butter is an inferior good, what do you suppose will happen to the equilibrium price and equilibrium quantity of peanut butter as incomes fell during a recession?
An inferior good is a commodity that is demanded less when the income of the consumer increases. Peanut butter is an inferior good. When income falls during a recession, the consumer's disposable income decreases, and they have less money to spend on all goods, including inferior goods.
So, if you manage a corner grocery store and peanut butter is an inferior good, you can expect that during a recession, the equilibrium price and quantity of peanut butter will increase and decrease, respectively. The equilibrium price will increase since the quantity demanded of the good will be higher than the quantity supplied.
This will cause a decrease in the quantity supplied of the good. Therefore, if you manage a corner grocery store and peanut butter is an inferior good, you can expect that during a recession, the equilibrium price and equilibrium quantity of peanut butter will increase and decrease, respectively.
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Suppose you have $2,150 and plan to purchase a 7-year certificate of deposit (CD) that pays 4.5% interest, compounded annually. How much will you have when the CD matures?
a.$2,925.85
b.$3,563.83
c.$2,791.06
d.$3,153.90
e.$2,728.22
The interest rate is 4.5% and the amount invested is $2,150.
The term of the CD is 7 years, and the compounding frequency is annually.
We can use the following formula to find the future value (FV) of the CD:
[tex]$$FV=P\left(1+\frac{r}{n}\right)^{nt}$$[/tex]
where:
P = the principal amount ($2,150)
r = the annual interest rate (4.5%)
n = the number of times interest is compounded per year (once a year)
t = the number of years the money is invested (7 years)
We can substitute these values into the formula:
[tex]$$FV=2,150\left(1+\frac{0.045}{1}\right)^{(1)(7)}$$$$=2,150(1.045)^7$$$$=2,791.06$$[/tex]
Therefore, the answer is c. $2,791.06.
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(a) Explain carefully the adjustment process of a ‘monopolistically competitive’ firm transitioning from the short-run to the long run. (Make the steps clear in your answer.)
(b) Explain what is meant by the ‘advertising trap’ for a ‘monopolistically competitive’ advertising firm. In your answer, explain the adjustment process from the short run to the long run when the firm invests in advertising (Make the steps clear in your answer.)
(c) Explain the main differences between a 'perfectively competitive’ market and a ‘monopolistically competitive’ In answering this question, describe the differences in the demand curves, marginal revenue (MR) curves, marginal cost curves, price, and output in these respective markets? (Note: you cannot illustrate graphically, so your explanation needs to be very clear by specifically addressing each difference.)
a) In the short run, a monopolistically competitive firm might make a profit or incur a loss.
b) In the long run, the economic profit will be zero.
c) In a perfectly competitive market, there are many buyers and sellers.
a) Adjustment process of a ‘monopolistically competitive’ firm transitioning from the short-run to the long run:
When the firm is making an economic profit, there is an incentive for other firms to enter the market. This would increase competition and decrease the demand for each firm's product. As a result, the demand curve of the firm would shift leftward, reducing the price and profits.
b) The ‘advertising trap’ for a ‘monopolistically competitive’ advertising firm:
In the short run, an advertising firm can make an economic profit if the marginal revenue from advertising exceeds the marginal cost.
If the firm invests in advertising, it can shift its demand curve to the right, increasing its profits in the short run.
c) Main differences between a 'perfectively competitive’ market and a ‘monopolistically competitive’ market:
In a perfectly competitive market, there are many buyers and sellers, and each seller produces a homogeneous product. In a monopolistically competitive market, there are many buyers and sellers, and each seller produces a differentiated product.
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