Answer:
To calculate the portfolio expected return, standard deviation, risk premium, and Sharpe ratio, we need to use the given information and formulas for portfolio calculations.
Explanation:
To calculate the portfolio expected return, standard deviation, risk premium, and Sharpe ratio, we need to use the given information and formulas for portfolio calculations:
Portfolio Expected Return:
Portfolio Expected Return = Weight of Stock * Expected Return of Stock + Weight of Bond * Expected Return of Bond
Weight of Stock = 60% = 0.6
Weight of Bond = 40% = 0.4
Expected Return of Stock = 18%
Expected Return of Bond = 8%
Portfolio Expected Return = 0.6 * 18% + 0.4 * 8%
Portfolio Expected Return = 10.8% + 3.2%
Portfolio Expected Return = 14%
Therefore, the portfolio expected return is 14%.
Portfolio Standard Deviation:
Portfolio Standard Deviation = sqrt[(Weight of Stock^2 * Standard Deviation of Stock^2) + (Weight of Bond^2 * Standard Deviation of Bond^2) + (2 * Weight of Stock * Weight of Bond * Correlation * Standard Deviation of Stock * Standard Deviation of Bond)]
Standard Deviation of Stock = 0.3
Standard Deviation of Bond = 0.2
Correlation = 0.4
Portfolio Standard Deviation = sqrt[(0.6^2 * 0.3^2) + (0.4^2 * 0.2^2) + (2 * 0.6 * 0.4 * 0.3 * 0.2 * 0.4)]
Portfolio Standard Deviation = sqrt[0.0324 + 0.008 + 0.0192]
Portfolio Standard Deviation = sqrt[0.0596]
Portfolio Standard Deviation = 0.2441
Therefore, the standard deviation of the portfolio is approximately 0.2441.
Portfolio Risk Premium:
Portfolio Risk Premium = Portfolio Expected Return - Risk-Free Rate
Risk-Free Rate = 4%
Portfolio Risk Premium = 14% - 4%
Portfolio Risk Premium = 10%
Therefore, the risk premium of the portfolio is 10%.
Portfolio Sharpe Ratio:
Portfolio Sharpe Ratio = (Portfolio Expected Return - Risk-Free Rate) / Portfolio Standard Deviation
Portfolio Sharpe Ratio = (14% - 4%) / 0.2441
Portfolio Sharpe Ratio = 0.4098
Therefore, the Sharpe ratio of the portfolio is approximately 0.4098.
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Be Safe Security believes it can sell 15,000 home security devices per year at $28 a piece. They cost $19 each to manufacture (variable cost). Fixed production costs will run $30,000 per year. The necessary equipment costs $180,000 to buy and will be depreciated at a 25 percent CCA rate. The equipment will have zero salvage value after the five-year life of the project. When this project is over, there will still be other assets in the CCA class. Be Safe will need to invest $42,500 in net working capital up front, but no additional net working capital investment will be necessary. The discount rate is 18 percent, and the tax rate is 40 percent.
a. Calculate the NPV. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit $ sign in your response.)
NPV $
b. Should the equipment be bought?
Answer:
Explanation:
To calculate the NPV (Net Present Value), we need to determine the cash flows associated with the project and discount them to their present value. Let's calculate the NPV step by step:
Step 1: Calculate the annual cash inflows:
Annual revenue from sales = 15,000 devices * $28/device = $420,000
Step 2: Calculate the annual cash outflows:
Variable cost per device = $19
Fixed production costs = $30,000
Annual cash outflows = (Variable cost per device * Number of units) + Fixed production costs
= ($19 * 15,000) + $30,000
= $285,000
Step 3: Calculate the depreciation expense:
Depreciation rate = 25% (CCA rate)
Depreciation expense = Equipment cost * Depreciation rate
= $180,000 * 0.25
= $45,000
Step 4: Calculate the annual tax savings due to depreciation:
Tax savings = Depreciation expense * Tax rate
= $45,000 * 0.40
= $18,000
Step 5: Calculate the annual cash flows:
Annual cash flows = Annual revenue - Annual cash outflows + Tax savings
= $420,000 - $285,000 + $18,000
= $153,000
Step 6: Calculate the present value of annual cash flows:
Discount rate = 18%
Number of years = 5
Present value factor for 5 years at 18% = 1 / (1 + Discount rate)^Number of years
= 1 / (1 + 0.18)^5
= 1 / (1.18)^5
= 0.49718
Present value of annual cash flows = Annual cash flows * Present value factor
= $153,000 * 0.49718
= $76,059.54
Step 7: Calculate the initial investment and salvage value:
Initial investment = Equipment cost + Net working capital
= $180,000 + $42,500
= $222,500
Salvage value = 0 (given)
Step 8: Calculate the NPV:
NPV = Present value of annual cash flows - Initial investment
= $76,059.54 - $222,500
= -$146,440.46
a. The NPV of the project is -$146,440.46.
b. Since the NPV is negative, the equipment should not be bought. A negative NPV indicates that the project's cash outflows exceed its cash inflows, resulting in a net loss. Therefore, it is not a financially viable investment decision.
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Select a company that you might consider as a strategic partner to business. Make use of previously notes from your chapter readings, and conduct additional research besides your textbook to obtain the information you need to answer the questions below.
Answer the following questions:
1.Dscribe how your company might have started as a sole proprietorship or a partnership. Explain the factors that may have influenced you and the owners to select this form of business organization.
2.If the company becomes a multinational corporation, what benefits and problems will result?
3.Discribe appropriate international opportunities for the company. What products and services would be most appropriate for different geographic regions? What economic, cultural, legal or political influences must the company consider?
4.Which of the methods described in chapter 5, page 126, figure 5-5 would be appropriate for the company to use for international business activities?
5.Explain the possible use of two or more of these methods for getting involved in international business.
1. To determine whether your company started as a sole proprietorship or a partnership, consider the factors that may have influenced you and the owners. Some factors to consider include the level of control and decision-making authority desired, the availability of financial resources, and the potential liability risks. For example, if you wanted full control over the business and had sufficient resources, you might have chosen a sole proprietorship. Alternatively, if you wanted to share responsibilities and resources, a partnership could have been chosen.
2. When a company becomes a multinational corporation, it can benefit from increased market access, economies of scale, and diversification. These benefits can lead to higher profits and growth opportunities. However, multinational corporations also face challenges such as cultural differences, language barriers, legal complexities, and political instability.
Managing operations in different countries requires effective communication, adaptation to local markets, compliance with regulations, and dealing with currency fluctuations.
3. Identifying appropriate international opportunities for your company involves considering factors such as product suitability, market demand, economic conditions, cultural norms, legal requirements, and political stability. Different geographic regions may have unique preferences and needs, so it's important to customize your products or services accordingly.
For example, a food company might consider introducing region-specific flavors or adapting packaging to local preferences. Additionally, economic factors like income levels and market saturation, cultural norms, legal regulations, and political stability should also be considered.
4. Among the methods described in Chapter 5, page 126, Figure 5-5, the appropriate method for international business activities will depend on various factors, including the company's resources, market conditions, and strategic goals. It may include exporting, licensing, franchising, joint ventures, strategic alliances, or foreign direct investment (FDI).
Each method has its advantages and disadvantages, and the company should carefully analyze which method aligns best with its objectives and resources.
5. Companies can utilize multiple methods to get involved in international business. For example, a company might initially start with exporting to establish a presence in a foreign market. Once they gain familiarity and success, they may consider licensing their technology or entering into a joint venture with a local partner to leverage their expertise and resources.
This approach allows the company to gradually expand its international activities while mitigating risks and capitalizing on opportunities. However, the selection of methods should be based on careful analysis of market conditions, legal requirements, and the company's long-term goals.
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Exercise In 90 days your main customer in Europe will be paying you an invoice of 1,000,000 € Today, the exchange rate for the € is $1.14567 - 94 . The interest rates you can get from your banks are 4.2% - 6.3% in Europe and 3.9%−6.1% in the USA. Can you, with the tools above, fix (hedge) the amount of \$ you will be receiving from your customer?
With the tools of forward contracts or options, you can hedge the amount of dollars you will receive from your customer, thereby protecting yourself against exchange rate fluctuations.
To hedge the amount of dollars you will receive from your customer, you can use forward contracts or options.
Using forward contracts, you can lock in the exchange rate today for the future date when you will receive the payment. This eliminates the risk of exchange rate fluctuations. For example, if you expect the exchange rate to weaken in 90 days, you can enter into a forward contract to sell euros and buy dollars at the current exchange rate, thereby ensuring a fixed amount of dollars.
Another option is to use options. With options, you have the right but not the obligation to buy or sell a currency at a specific exchange rate. By purchasing a put option, you can protect yourself against a potential decline in the euro-dollar exchange rate. This way, if the exchange rate drops below the predetermined rate, you can exercise the option and sell euros at the higher rate.
To determine which approach is more suitable for you, you should consider factors such as the cost of each option, your risk tolerance, and market forecasts. Consulting with a financial advisor or a specialist in foreign exchange risk management would be beneficial in making an informed decision.
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Consider the Digital Library Management System shown in Q1. a) In order to make the system dependable, what are the principal properties that are needed to be considered? b) Do you consider the above
a) In order to make the Digital Library Management System dependable, several principal properties need to be considered. These properties include:
1) Reliability: The system should consistently perform its intended functions correctly and accurately, without failure or errors. It should be able to handle various user requests and operations reliably.
2) Availability: The system should be available for use whenever it is needed. It should minimize downtime and ensure that users can access the digital library and its resources without interruption.
3) Security: The system should protect the digital library's resources, user data, and sensitive information from unauthorized access, modification, or theft. It should implement appropriate security measures such as user authentication, data encryption, and access control.
4) Maintainability: The system should be easy to maintain and update. It should support efficient troubleshooting, bug fixing, and regular software updates to ensure its continued reliability and functionality.
5) Scalability: The system should be capable of handling a growing number of users, digital resources, and concurrent requests without significant performance degradation. It should scale up or down as needed to accommodate increasing demands.
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Determine the missing ending balances for Company B as at December 31/2021
Insurance Expense $ 340,000
Rent Expense 970,000
Sales _______
Net Income 270,000
Cost of Goods Sold 1,900,000
Dividends 0
Assets 500,000
Liabilities 150,000
Capital Stock 80,000
Retained Earnings ________
Total Stockholders' Equity_
Total Stockholders' Equity: $350,000
To determine the missing ending balances for Company B as at December 31, 2021, we can follow these steps:
1. Calculate the Sales: Since we know that Net Income is $270,000 and Cost of Goods Sold is $1,900,000, we can use the formula:
Net Income = Sales - Cost of Goods Sold
Rearranging the formula, we find:
Sales = Net Income + Cost of Goods Sold
Plugging in the values:
Sales = $270,000 + $1,900,000 = $2,170,000
2. Calculate the Retained Earnings: Retained Earnings is the accumulation of a company's net income and losses over time. To find the missing Retained Earnings balance, we can use the formula:
Retained Earnings = Net Income - Dividends
Since Dividends are given as $0, the formula simplifies to:
Retained Earnings = Net Income
Therefore, the Retained Earnings balance is $270,000.
3. Calculate the Total Stockholders' Equity: Total Stockholders' Equity is the sum of Capital Stock and Retained Earnings. We can calculate it using the formula:
Total Stockholders' Equity = Capital Stock + Retained Earnings
Plugging in the values:
Total Stockholders' Equity = $80,000 + $270,000 = $350,000
Therefore, the missing ending balances for Company B as at December 31, 2021 are:
Sales: $2,170,000
Retained Earnings: $270,000
Total Stockholders' Equity: $350,000
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1. An item may be either purchased for the price of 8 KD per unit or manufactured at a rate of 10,000 units per year for the price of 7 KD per unit. If purchased the ordering cost is $1.5 KD compared to a setup cost of 15 KD if it is manufactured. The yearly demand for this item is 2500 units and the inventory holding rate is 10%. Should the company purchase the item or should they manufacture it?
It is more cost-effective for the company to purchase the item rather than manufacturing it.
The annual demand for the item is 2,500 units, and the company has two options: purchasing at 8 KD per unit or manufacturing at 10,000 units per year for 7 KD per unit. The ordering cost for purchasing is 1.5 KD, while the setup cost for manufacturing is 15 KD. Considering these factors, along with the inventory holding rate of 10%, purchasing the item proves to be the more favorable choice for the company.
To determine the best course of action, we need to compare the costs associated with purchasing and manufacturing the item. Let's begin with the purchasing option. The cost per unit is 8 KD, and the annual demand is 2,500 units. Thus, the total cost of purchasing would be 8 KD multiplied by 2,500 units, which equals 20,000 KD.
On the other hand, if the company decides to manufacture the item, they can produce 10,000 units per year at a cost of 7 KD per unit. This would result in a total manufacturing cost of 7 KD multiplied by 10,000 units, amounting to 70,000 KD.
In addition to the unit costs, we must also consider the associated costs for ordering and setup. When purchasing the item, the ordering cost is 1.5 KD per unit, resulting in a total ordering cost of 1.5 KD multiplied by 2,500 units, which equals 3,750 KD.
For manufacturing, there is a setup cost of 15 KD per manufacturing run. Since the annual demand is 2,500 units, it would require 10 manufacturing runs (10,000 units / 2,500 units) throughout the year, resulting in a total setup cost of 15 KD multiplied by 10 runs, amounting to 150 KD.
Furthermore, the inventory holding rate of 10% needs to be considered. If the company purchases the item, they will need to hold inventory throughout the year. Using the average inventory formula (annual demand divided by 2), the average inventory would be 2,500 units divided by 2, resulting in 1,250 units. With a holding rate of 10%, the holding cost would be 10% multiplied by the average inventory multiplied by the cost per unit, which is 10% multiplied by 1,250 units multiplied by 8 KD, amounting to 10,000 KD.
Comparing the total costs, purchasing the item results in a total cost of 20,000 KD (purchasing cost) plus 3,750 KD (ordering cost) plus 10,000 KD (holding cost), equaling 33,750 KD. On the other hand, manufacturing the item incurs a total cost of 70,000 KD (manufacturing cost) plus 150 KD (setup cost), which equals 70,150 KD.
Considering the costs involved, it is clear that purchasing the item is the more cost-effective option for the company. The total cost of purchasing is significantly lower than the total cost of manufacturing, taking into account the unit costs, ordering costs, setup costs, and inventory holding costs. Therefore, the company should opt to purchase the item rather than manufacturing it.
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Credit unions operate on a common bond principle which emphasizes the depository and lending
needs of credit union members.
true/false
True. Credit unions operate on a common bond principle that emphasizes meeting the depository and lending needs of their members.
Credit unions are financial cooperatives that are owned and operated by their members. One of the fundamental principles of credit unions is the common bond, which refers to a shared characteristic or affiliation among the members. This common bond could be based on factors such as employment, geographical location, or membership in a specific organization or community.
Operating on the common bond principle, credit unions prioritize serving the depository and lending needs of their members. They aim to provide accessible financial services, including savings accounts, loans, and other financial products, to help meet the specific requirements of their member base. This focus on the members' needs distinguishes credit unions from other financial institutions and reflects their commitment to member-centric service.
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Please help answering this question Allegience Insurance Company’s management is considering an advertising program that would require an initial expenditure of $168,810 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $77,000, with associated expenses of $26,000. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Allegience’s tax rate is 30 percent. (Hint: The $168,810 advertising cost is an expense.) Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.)
Required: 1. Compute the payback period for the advertising program.
2. Calculate the advertising program’s net present value, assuming an after-tax hurdle rate of 10 percent. (Round your intermediate calculations and final answer to the nearest whole dollar.)
The advertising program's net present value (NPV) is $67,559 (rounded to the nearest whole dollar) assuming an after-tax hurdle rate of 10 percent.
To compute the payback period for the advertising program, we need to determine the time it takes for the cumulative cash inflows to equal or exceed the initial expenditure. Here's how to calculate it:
Step 1: Calculate the net cash inflows for each year.
Year 1:
Additional sales revenue: $77,000
Associated expenses: $26,000
Net cash inflow: $77,000 - $26,000 = $51,000
Year 2:
Net cash inflow for Year 1: $51,000
Increase of 10%: $51,000 * 0.10 = $5,100
Net cash inflow: $51,000 + $5,100 = $56,100
Year 3:
Net cash inflow for Year 2: $56,100
Increase of 10%: $56,100 * 0.10 = $5,610
Net cash inflow: $56,100 + $5,610 = $61,710
Year 4:
Net cash inflow for Year 3: $61,710
Increase of 10%: $61,710 * 0.10 = $6,171
Net cash inflow: $61,710 + $6,171 = $67,881
Year 5:
Net cash inflow for Year 4: $67,881
Increase of 10%: $67,881 * 0.10 = $6,788.1
Net cash inflow: $67,881 + $6,788.1 = $74,669.1
Step 2: Calculate the cumulative net cash inflows.
Cumulative net cash inflow for Year 1: $51,000
Cumulative net cash inflow for Year 2: $51,000 + $56,100 = $107,100
Cumulative net cash inflow for Year 3: $107,100 + $61,710 = $168,810
Cumulative net cash inflow for Year 4: $168,810 + $67,881 = $236,691
Cumulative net cash inflow for Year 5: $236,691 + $74,669.1 = $311,360.1
Step 3: Determine the payback period.
The payback period is the time it takes for the cumulative net cash inflows to equal or exceed the initial expenditure.
In this case, the cumulative net cash inflows reach $311,360.1 in Year 5, which exceeds the initial expenditure of $168,810.
Therefore, the payback period for the advertising program is 5 years.
To calculate the net present value (NPV) of the advertising program, assuming an after-tax hurdle rate of 10 percent, we need to discount the net cash inflows to their present value and then subtract the initial expenditure. Here's how to calculate it:
Step 1: Calculate the discounted net cash inflows for each year.
Year 1:
Discounted net cash inflow: $51,000 / (1 + 0.10) = $46,363.64
Year 2:
Discounted net cash inflow: $56,100 / (1 + 0.10)^2 = $46,595.04
Year 3:
Discounted net cash inflow: $61,710 / (1 + 0.10)^3 = $47,056.62
Year 4:
Discounted net cash inflow: $67,881 / (1 + 0.10)^4 = $47,733.08
Year 5:
Discounted net cash inflow: $74,669.1 / (1 + 0.10)^5 = $48,620.25
Step 2: Calculate the NPV.
NPV = Sum of discounted net cash inflows - Initial expenditure
NPV = $46,363.64 + $46,595.04 + $47,056.62 + $47,733.08 + $48,620.25 - $168,810
NPV = $236,368.63 - $168,810
NPV = $67,558.63
Therefore, the advertising program's net present value (NPV) is $67,559 (rounded to the nearest whole dollar) assuming an after-tax hurdle rate of 10 percent.
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When is the statement of profit or loss normally completed?
At any time - the order of completion for these two statements is irrelevant
At the same time as the statement of financial position
Before the statement of financial position
After the statement of financial position
The statement of profit or loss is normally completed before the statement of financial position.The statement of profit or loss, also known as the income statement or statement.
Comprehensive income, presents the revenues, expenses, gains, and losses incurred by a company during a specific period. It provides a summary of the company's financial performance, showing whether it has generated a profit or incurred a loss.On the other hand, the statement of financial position, also known as the balance sheet, provides a snapshot of the company's financial position at a specific point in time.
Completing the statement of profit or loss before the statement of financial position allows for the calculation of key financial ratios, such as profitability ratios, which can provide valuable insights into the company's performance. These ratios often require information from both statements, making it practical to complete the statement of profit or loss first.
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Maple Catering sells single catering packages with a selling price of $75 and variable costs per this package is $30. The company’s monthly fixed expenses are $22,500.
1) What is the company’s monthly break-even point in single catering packages? (In other words, how many packages the company needs to sell to breakeven?)
2) What is the company’s monthly break-even point in dollars?
3) How many catering packages will Maple Catering need to sell in order to reach a target profit of $45,000?
4) What dollar sales will Maple Catering need in order to reach a target profit of $45,000?
To calculate the break-even point and target profit for Maple Catering, we'll use the following information.
Selling price per catering package: $75
Variable cost per catering package: $30
Monthly fixed expenses: $22,500
Target profit: $45,000
Break-even point in single catering packages:
Break-even point = Fixed expenses / Contribution margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $75 - $30 = $45
Break-even point = $22,500 / $45 = 500 catering packages
Therefore, Maple Catering needs to sell 500 catering packages to reach the break-even point.
Break-even point in dollars:
Break-even point in dollars = Break-even point in units * Selling price per unit
Break-even point in dollars = 500 * $75 = $37,500
Therefore, Maple Catering needs to generate $37,500 in sales to reach the break-even point.
Number of catering packages to reach a target profit of $45,000:
Target profit = (Fixed expenses + Target profit) / Contribution margin per unit
Target profit = ($22,500 + $45,000) / $45 = 1,500 catering packages
Therefore, Maple Catering needs to sell 1,500 catering packages to reach a target profit of $45,000.
Dollar sales to reach a target profit of $45,000:
Dollar sales = Number of catering packages * Selling price per unit
Dollar sales = 1,500 * $75 = $112,500
Therefore, Maple Catering needs to generate $112,500 in sales to reach a target profit of $45,000.
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After stocks, the addition of more stocks does little to reduce the
portfolio's standard deviation.
10
2
20
5
The statement is false, the addition of more stocks can potentially reduce the portfolio's standard deviation.
The statement is false because adding more stocks to a portfolio can actually help reduce the portfolio's standard deviation. Standard deviation is a measure of the variability or volatility of returns in a portfolio. By diversifying the portfolio through the inclusion of different stocks, the overall risk is spread out, which can lead to a reduction in the portfolio's standard deviation.
When constructing a portfolio, it is important to consider the correlation between stocks. If the stocks in the portfolio have a low correlation or are negatively correlated, the addition of more stocks can lead to a reduction in the overall portfolio's standard deviation. This is because the movements of different stocks tend to offset each other, resulting in a smoother and less volatile overall portfolio return.
However, it is important to note that the benefits of diversification may diminish as the number of stocks in the portfolio increases. Adding more stocks beyond a certain point may not provide significant additional risk reduction. This is known as the principle of diminishing marginal diversification benefits.
Therefore, the statement is false as the addition of more stocks can indeed reduce the portfolio's standard deviation, especially when diversification is properly implemented.
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At the time of writing, Amazon.com offered Prime, a bundle that includes free shipping on consumer purchases, discounts on groceries, as well as video, music, games, and books, at a price of US$119 per year. The price of the Harry Potter paperback box set was US$50.33 with free shipping.
1. From the viewpoint of an AmazonPrime subscriber, compare the marginal cost of buying the Harry Potter box set from Amazon vis-à-vis a competing retailer that charges for shipping.
2. Suppose that AmazonPrime subscribers are subject to the sunk-cost fallacy. How would that affect their demand to buy products from Amazon vis-à-vis competing retailers?
3. By default, Amazon has set membership of Prime to automatically renew. This auto renewal takes advantage of a behavioral bias.
4. Explain which one. Considering your answers to (a)–(c) above, explain how the Prime service gives Amazon an advantage over competitors.
1. From the perspective of an Amazon Prime subscriber, the marginal cost of purchasing the Harry Potter box set from Amazon versus a rival retailer who charges for shipping is lower on Amazon.
Since subscribers receive free delivery, they save the cost of shipping when they buy goods from Amazon. The net cost of purchasing Harry Potter from Amazon for a Prime subscriber is US$50.33.2. If Amazon Prime subscribers are vulnerable to the sunk-cost fallacy, it could result in higher demand to buy products from Amazon rather than competing retailers. The sunk-cost fallacy is the irrational thinking that the cost of something is justified by the amount of money, effort, or time already spent on it. Subscribers might feel that they must continue to buy from Amazon to justify the $119 subscription fee paid in advance for the year.3. Amazon is taking advantage of the behavioral bias of loss aversion when they automatically renew Prime subscriptions. Loss aversion is the behavioral tendency of individuals to feel more pain from losing something than pleasure from gaining something of equal value. By setting auto-renewal by default, Amazon creates a psychological bias in Prime members who are hesitant to cancel their subscription because they do not want to lose access to the benefits.4. Considering the answers to the preceding questions, Amazon Prime provides Amazon with a distinct advantage over its competitors. The marginal cost advantage of purchasing items from Amazon over competing retailers is an incentive to become a Prime subscriber. Furthermore, the sunk-cost fallacy works to Amazon's benefit since it provides subscribers with a psychological bias to continue purchasing from Amazon. Lastly, by taking advantage of the loss aversion behavioral bias, Amazon has created a long-term relationship with Prime subscribers, providing Amazon with a steady stream of revenue.
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in which stage of the new product development process was anki in when it began its prelaunch campaign using the kickstarter community?
Anki's prelaunch campaign using the Kickstarter community can be considered as part of the product development process's "Market Testing" stage.
Market testing typically occurs after the product concept has been developed and the company wants to gauge consumer interest and gather feedback before proceeding with full-scale production and launch. By utilizing Kickstarter, Anki was able to test the market demand for its product, gather early adopters, and secure funding to support the production and launch of their product. Kickstarter campaigns allow companies to showcase their product concept, generate excitement, and receive financial backing from potential customers.
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A cover letter targeting a company with the below job description-
Plan and coordinate project activities related to organizational requirements or changes
Act as an intermediary between I.T., users, and managers from different hierarchical levels
Obtain requirements from business communities using techniques such as informational interviews and work sessions
Analyze complex needs, and information obtained from various sources, details the high-level information and provide users with recommendations for their problems
Document requirements obtained from the business community using defined templates
Ensure the link between the business units, the technology teams and the support team
Act as PO if required
Organize and facilitate working sessions with experts from different fields
Responsible for improving productivity and reducing risks and high costs through effective analysis
Identify the need for change to assess and communicate the impact
Support the Quality Assurance team during Test Planning and Execution
A cover letter for a position that aligns with the job description you provided should highlight your skills and experiences related to project planning, coordination, and analysis. Here is a step-by-step guide on how to structure your cover letter:
1. Start by introducing yourself and expressing your interest in the position. Mention the specific job title and company name.
2. Explain how you have planned and coordinated project activities in the past. Provide examples of projects you have worked on, detailing your role and the outcomes achieved.
3. Emphasize your ability to act as a bridge between I.T., users, and managers of different levels. Highlight your communication and interpersonal skills, which allow you to gather requirements through techniques like informational interviews and work sessions.
4. Describe your expertise in analyzing complex needs and information from various sources. Explain how you provide high-level information and recommendations to solve problems for users.
5. Mention your proficiency in documenting requirements using defined templates. Provide examples of how you have effectively documented requirements in the past.
6. Highlight your experience in ensuring effective collaboration between business units, technology teams, and support teams. Explain how you facilitate working sessions with experts from different fields.
7. Discuss your responsibility in improving productivity, reducing risks, and minimizing costs through effective analysis. Give examples of how you have achieved these goals in previous roles.
8. Explain your ability to identify the need for change and communicate its impact. Mention instances where you have successfully managed change initiatives.
9. Lastly, mention your support for the Quality Assurance team during test planning and execution. Highlight your attention to detail and commitment to quality.
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Independence and Objectivity is one of the sections of attribute standards in the IIA's Standards of the Professional Practice of Internal Auditing.
TRUE OR FALSE?
True. Independence and Objectivity is a section of attribute standards in the IIA's Standards of the Professional Practice of Internal Auditing.
Independence and Objectivity is indeed one of the sections of attribute standards in the IIA's (Institute of Internal Auditors) Standards of the Professional Practice of Internal Auditing. The IIA is a global professional association that provides guidance and standards for the internal auditing profession.
Independence refers to the internal auditors' ability to carry out their duties and express their opinions without interference or influence from individuals or groups within the organization. It ensures that internal auditors are free from conflicts of interest and can provide unbiased and objective assessments of the organization's operations and controls.
Objectivity, on the other hand, relates to the internal auditors' state of mind and their ability to maintain an impartial and unbiased perspective throughout the audit process. It requires internal auditors to exercise professional judgment and provide fair and balanced assessments based on reliable and relevant evidence. Hence, the statement that Independence and Objectivity is one of the sections of attribute standards in the IIA's Standards of the Professional Practice of Internal Auditing is true.
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Bora, a contractor, was looking to purchase a significant quantity of wood for upcoming construction projects. He went to a store owned by a company called "The Woods Ltd." There he chatted with a salesperson, Malcolm. Malcolm was authorized by The Woods Ltd. to negotiate with customers but was not authorized to sell lumber at less than $1,000 per board-foot. After some discussion, Malcolm, keen to close the deal, agreed to sell Bora the lumber he needs at a price of $950 per board-foot.
(a) Will The Woods Ltd. be bound by the contract entered into by Malcolm? Why or why not? [3 points]
Bora ends up buying $30,000 of wood from The Woods Ltd., but it turns out that the wood sold to Bora is rotted/defective. He goes back to The Woods Ltd., but they refuse to give him a refund.
(b) What kind of claim could Bora bring against The Woods Ltd. and what do you think about his chances of success? [2 marks]
Bora has heard around town that The Woods Ltd. is in severe financial difficulty. It turns out the rumours are true. The Woods Ltd. owes $900,000 to its creditors and it only has assets amounting to $500,000. Despite this failed venture, The Woods Ltd.'s two shareholders, Sheilah and Morris, are still doing quite well for themselves.
(b) Bora instead decides to bring an action against the two shareholders of The Woods Ltd., Sheilah and Morris. Discuss the law and Bora's chances of success in this lawsuit. [2 points]
(c) Discuss The Woods Ltd.'s legal options for dealing with its current financial difficulties. [3 points]
His agreement with bora to sell the lumber at $950 per board-foot exceeds his authority and cannot bind the woods ltd.
(a) The woods ltd. will not be bound by the contract entered into by malcolm. the general principle of contract law is that an agent's authority to bind a principal is limited to the scope of their actual or apparent authority. in this case, malcolm was not authorized to sell lumber at less than $1,000 per board-foot. (b) bora could bring a claim against the woods ltd. for breach of contract and seek a refund for the rotted/defective wood. his chances of success would depend on various factors, including the terms and conditions of the original purchase agreement, any warranties or guarantees provided by the woods ltd., and the extent of the rotted/defective wood. bora would need to establish that the wood was indeed defective and that it was the woods ltd.'s responsibility to provide a refund or replacement.
(c) bora's chances of success in bringing a lawsuit against sheilah and morris, the shareholders of the woods ltd., would depend on the specific legal framework in the jurisdiction where the lawsuit is filed. generally, shareholders of a limited liability company are not personally liable for the company's debts unless they have engaged in fraudulent or wrongful conduct, or if there is evidence of piercing the corporate veil. bora would need to establish that sheilah and morris engaged in such conduct for the court to hold them personally liable for the woods ltd.'s debts.
(d) the woods ltd. has several legal s for dealing with its current financial difficulties. these s may vary depending on the applicable laws and regulations in the jurisdiction. some possible s include filing for bankruptcy or restructuring under insolvency laws, negotiating with creditors for debt repayment or settlement, selling assets to generate funds, seeking financial assistance or loans, or pursuing business reorganization or turnaround strategies. the specific course of action would depend on the company's financial situation, legal obligations, and long-term viability considerations. it is advisable for the woods ltd. to consult with legal and financial professionals to explore the most suitable s.
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Bethany Liang delivers parts for several local auto parts stores. She charges clients $2.45 per mile driven. She has determined that if she drives 2,000 miles in a month, her average operating cost is $2.25 per mile. If Bethany drives 4,000 miles in a month, her average operating cost is $1.50 per mile.
Required: Using the high-low method, determine Bethany’s variable and fixed operating cost components.
Complete the contribution margin income statement for the business last month, when Bethany drove 2,200 miles. (Assume this falls within the relevant range of operations).
Choices:
Cost of goods sold
Fixed costs
Gross Margin
Interest expense
Net Income after taxes
Net operating Income
Sales revenue
Variable costs
Based on the information provided, the high-low method can be used to determine Bethany's variable and fixed operating cost components.Net operating income: $5,389.175 - $1.50 = $5,387.675
To calculate the variable cost per mile, we can use the information from the high and low activity levels. The high activity level is when Bethany drives 4,000 miles and the average operating cost is $1.50 per mile. The low activity level is when Bethany drives 2,000 miles and the average operating cost is $2.25 per mile.
The change in cost is $1.50 - $2.25 = -$0.75 per mile.
The change in activity is 4,000 miles - 2,000 miles = 2,000 miles.
To calculate the variable cost per mile, we divide the change in cost by the change in activity: -$0.75 / 2,000 miles = -$0.000375 per mile.
Since the variable cost per mile is negative, we can ignore the negative sign and conclude that the variable cost per mile is $0.000375.
To calculate the fixed cost component, we can use the high or low activity level and the variable cost per mile.
Using the low activity level of 2,000 miles and the average operating cost of $2.25 per mile, we can calculate the fixed cost component.
Total cost at the low activity level = Variable cost per mile * Number of miles + Fixed cost component.
$2.25 = $0.000375 * 2,000 miles + Fixed cost component.
$2.25 = $0.75 + Fixed cost component.
Fixed cost component = $2.25 - $0.75 = $1.50.
Therefore, the variable cost component is $0.000375 per mile and the fixed cost component is $1.50.
Now let's move on to completing the contribution margin income statement for the business last month when Bethany drove 2,200 miles.
The contribution margin income statement includes the following items:
Sales revenue: This is the total revenue generated from delivering parts. To calculate this, we multiply the number of miles driven (2,200) by the price per mile ($2.45).
Variable costs: This is the total variable cost incurred. To calculate this, we multiply the number of miles driven (2,200) by the variable cost per mile ($0.000375).
Cost of goods sold: This is equal to the variable costs.
Gross margin: This is equal to sales revenue minus the cost of goods sold.
Fixed costs: This is the fixed cost component ($1.50).
Net operating income: This is equal to the gross margin minus the fixed costs.
Net income after taxes: This is the net operating income after deducting taxes, but since no tax information is provided, we cannot calculate this.
The contribution margin income statement for the business last month when Bethany drove 2,200 miles would look like this:
Sales revenue: 2,200 miles * $2.45/mile = $5,390
Variable costs (cost of goods sold): 2,200 miles * $0.000375/mile = $0.825
Gross margin: $5,390 - $0.825 = $5,389.175
Fixed costs: $1.50
Net operating income: $5,389.175 - $1.50 = $5,387.675
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Problems and Applications Q10 Assume that the banking system has total reserves of $180 billion. Assume also that required reserves are 20 percent of checking deposits and that banks hold no excess reserves and households hold no currency
The money multiplier is _________
The money supply is $ _________ billion
Suppose the Fed raises required reserves to 25 percent of deposits
The new money multiplier is _________ and the money supply __________ to $ __________ billion,
The new money supply is $720 billion.
The money multiplier can be calculated using the formula:
Money Multiplier = 1 / Reserve Requirement Ratio
In this case, the reserve requirement ratio is given as 20 percent, so the money multiplier is:
Money Multiplier = 1 / 0.20 = 5
To calculate the money supply:
Money Supply = Money Multiplier * Total Reserves
Money Supply = 5 * $180 billion = $900 billion
If the Fed raises the required reserves to 25 percent of deposits, the new reserve requirement ratio becomes 25 percent, which means the new money multiplier is:
New Money Multiplier = 1 / 0.25 = 4
To calculate the new money supply, we use the new money multiplier and the total reserves:
New Money Supply = New Money Multiplier * Total Reserves
New Money Supply = 4 * $180 billion = $720 billion
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T/F?
The internal auditing staff of a large corporation usually reports to a committee of the board of directors, to a member of the top management group, or both.
The internal auditing staff of a large corporation usually reports to a committee of the board of directors, to a member of the top management group, or both. So, the statement is True.
In large corporations, the internal auditing function plays a crucial role in assessing and evaluating the organization's internal controls, risk management processes, and financial reporting practices. The reporting structure of the internal auditing staff varies depending on the organization's governance structure and practices.
Typically, the internal auditing staff reports to a committee of the board of directors or to a member of the top management group, such as the Chief Financial Officer (CFO) or the Chief Audit Executive (CAE). In some cases, they may report to both the board committee and a member of top management. The reporting lines ensure independence and objectivity in the internal auditing function.
Reporting to the board of directors or a board committee provides an additional level of oversight and accountability. The board's audit committee is responsible for overseeing the internal audit function, including its independence, effectiveness, and the reliability of internal controls. By reporting to the board committee, the internal auditing staff can provide direct feedback and insights to the highest level of governance within the organization.
Reporting to a member of the top management group, such as the CFO or the CAE, allows for closer integration with the organization's strategic objectives and operational activities. This reporting relationship ensures that the internal audit function aligns with the organization's goals and priorities and supports effective risk management and internal control practices.
The reporting structure of the internal auditing staff may vary based on the organization's size, industry, and specific governance practices. Some organizations may have a dedicated internal audit department, while others may outsource internal audit services to external firms. Regardless of the reporting structure, the primary objective is to ensure the independence, objectivity, and effectiveness of the internal audit function in providing valuable insights and recommendations to improve the organization's governance, risk management, and control processes.
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A firm will earn zero profits if:
Group of answer choices
a.) price equals marginal cost.
b.) price equals average variable cost.
c.) price equals total cost.
d.) price equals average cost.
Therefore, the correct answer is a.) price equals marginal cost.
In economics, a firm will earn zero profits when the price of a good or service equals its marginal cost. This condition arises in a perfectly competitive market where firms aim to maximize their profits. When the price is equal to the marginal cost, it means that the additional revenue generated from selling one more unit is exactly equal to the additional cost of producing that unit. At this point, the firm is covering all its variable costs and there is no extra profit left to be made. If the price falls below the marginal cost, the firm would start incurring losses. On the other hand, if the price exceeds the marginal cost, the firm would earn positive profits.
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The demand and supply schedules in a market are given by D(p) =
6 - p and S(p) = - 3 + 2 p. The government imposed a tax of 0.6 per
unit of quantity bought or sold. 1) What is the net price that
suppl
The net price that suppliers receive after the tax is 2.6.
To determine the net price received by suppliers after the tax, we need to consider the impact of the tax on the supply and demand equilibrium.
The supply function is given by S(p) = -3 + 2p, and the demand function is given by D(p) = 6 - p.
When a tax of 0.6 per unit is imposed, it affects both the buyers and sellers. The tax can be seen as an increase in the cost for sellers and a decrease in the price received by buyers.
To find the new equilibrium price, we need to consider the effects of the tax on both the supply and demand curves. The tax increases the cost for sellers, effectively shifting the supply curve upwards by the amount of the tax.
The new supply curve, taking into account the tax, becomes S(p) = -3 + 2p - 0.6.
To find the equilibrium price after the tax, we need to determine the price at which the quantity demanded equals the quantity supplied. This occurs when D(p) = S(p).
Setting D(p) = S(p), we have 6 - p = -3 + 2p - 0.6.
Combining like terms, we get 3p = 9.6
Dividing both sides by 3, we find p = 3.2.
Therefore, the equilibrium price after the tax is 3.2.
To determine the net price received by suppliers after the tax, we need to subtract the tax rate (0.6) from the equilibrium price:
Net Price = Equilibrium Price - Tax Rate = 3.2 - 0.6 = 2.6.
Hence, the net price that suppliers receive after the tax is 2.6.
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Compelt Question:
The demand and supply schedules in a market are given by D(p) = 6 - p and S(p) = - 3 + 2 p. The government imposed a tax of 0.6 per unit of quantity bought or sold. 1) What is the net price that suppliers receive? (
2.8
2.6
3.54
7.90
What is the yield-to-maturity of a corporate bond with a 3-year maturity, 5 percent coupon (semi-annual payments), a $1,000 face value, if the bond sold for $978.30?
If the bond is callable after 1 year at 102, what is the yield-to-call?
A. The yield-to-maturity of the corporate bond is approximately 5.6 percent. B. The yield-to-call, it is approximately 6.4 percent.
Bond Price = (Coupon Payment / (1 + Yield)^1) + (Coupon Payment / (1 + Yield)^2) + ... + (Coupon Payment + Face Value / (1 + Yield)^n)
where Bond Price is the current price of the bond, Coupon Payment is the periodic interest payment, Yield is the yield-to-maturity, and n is the number of periods until maturity.
In this case, the bond has a 3-year maturity, with semi-annual coupon payments and a face value of $1,000. The coupon rate is 5 percent, which means the bond pays $25 every 6 months (5 percent of $1,000 divided by 2). The bond is currently selling for $978.30.
Plugging in the values into the formula, we can solve for the yield-to-maturity:
$978.30 = ($25 / (1 + Yield/2)^1) + ($25 / (1 + Yield/2)^2) + ($25 / (1 + Yield/2)^3) + ($1,025 / (1 + Yield/2)^6)
Simplifying this equation and using trial-and-error or a financial calculator, we find that the yield-to-maturity is approximately 5.6 percent.
Now, let's calculate the yield-to-call. The bond is callable after 1 year at 102, which means the issuer has the option to call back the bond after 1 year and pay bondholders 102 percent of the face value ($1,020). To calculate the yield-to-call, we use a similar formula but replace the face value in the last term with the call price:
$978.30 = ($25 / (1 + Yield/2)^1) + ($25 / (1 + Yield/2)^2) + ($25 / (1 + Yield/2)^3) + ($1,020 / (1 + Yield/2)^2)
Simplifying this equation and solving for the yield-to-call, we find that it is approximately 6.4 percent.
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During 2024, its first yeat of operations, Ashbaugh industries recorded sales of $21,200.000 and experienced retums of $1,250,000. Returns are accounted for as they occur, with additional estimated returns accrued at the end of the period. Cost of goods sold totaled $14,840,000 pors of salest The compony estimates that 7% of all sales wir be returned. The year-end adjusting journal entry to account for anticipated sales retirns would include a:
During 2024, its first year of operations, Ashbaugh industries recorded sales of $21,200,000 and experienced returns of $1,250,000. The company estimates that 7% of all sales will be returned. Returns are accounted for as they occur, with additional estimated returns accrued at the end of the period. Cost of goods sold totaled $14,840,000.
The year-end adjusting journal entry to account for anticipated sales returns would include a credit to the sales returns account and a debit to the sales returns reserve account.The adjusting entry for sales returns reserve will include a credit to the sales returns account and a debit to the sales returns reserve account. Since Ashbaugh Industries uses the allowance method for accounting for sales returns, this journal entry is necessary.
It establishes an allowance for sales returns, which is a contra account to accounts receivable.To record the estimated sales returns for the current year, a company should prepare an adjusting journal entry at the end of the year. It is a two-step process: first, debit the Sales Returns and Allowances account and credit the Allowance for Sales Returns account, and second, debit the Allowance for Sales Returns account and credit Accounts Receivable for the estimated amount of the sales returns. The amount of estimated sales returns is based on past experience and is adjusted as needed to reflect current conditions.
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a company is expected to pay a $3.00 per share dividend at the end of the year (i.e., D1 = $3.00). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 19%. What is
the stock's current value per share? Round your answer to the nearest cent.
To calculate the stock's current value per share, we can use the Gordon Growth Model, also known as the dividend discount model. This model assumes that the value of a stock is equal to the present value of its future dividends. The formula for the Gordon Growth Model is:
[tex]\[ P_0 = \frac{D_1}{r_s - g} \][/tex]
Where:
[tex]\( P_0 \)[/tex] is the current value per share,
[tex]\( D_1 \)[/tex] is the dividend expected at the end of the year,
[tex]\( r_s \)[/tex] is the required rate of return on the stock, and
[tex]\( g \)[/tex] is the constant growth rate of the dividend.
In this case,[tex]\( D_1 = $3.00 \), \( r_s = 19\% \) (or 0.19 as a decimal), and \( g = 7\% \) (or 0.07 as a decimal).[/tex]
Substituting the values into the formula, we get:
[tex]\[ P_0 = \frac{3.00}{0.19 - 0.07} \][/tex]
Calculating this expression gives us:
[tex]\[ P_0 = \frac{3.00}{0.12} \approx $25.00 \][/tex]
Therefore, the stock's current value per share is approximately $25.00 when rounded to the nearest cent.
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The stock's current value per share is $25.00. This means that at the current price, the stock's expected dividends and growth rate justify the required rate of return of 19%.
To calculate the stock's current value per share, we can use the Gordon Growth Model (also known as the Dividend Discount Model):Current Value per Share (P0) = D1 / (rs - g)
Where:D1 = Expected dividend at the end of the year = $3.00, rs = Required rate of return on the stock = 19% or 0.19 (in decimal), g = Constant growth rate of dividends = 7% or 0.07 (in decimal)
Plugging in the values:P0 = $3.00 / (0.19 - 0.07) = $3.00 / 0.12 = $25.00. Therefore, the stock's current value per share is $25.00. This means that at the current price, the stock's expected dividends and growth rate justify the required rate of return of 19%.
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What do you understand by Business Finance and what roles does
it play in Economic Development of a country?
Business finance refers to the management of money and financial resources within a business or organization. It involves making financial decisions, such as raising capital, investing in assets, managing cash flow, and analyzing financial data to ensure the efficient and effective use of funds.
In the context of economic development, business finance plays several important roles:
1. Investment: Business finance facilitates investment in both physical and human capital. Physical capital refers to the purchase of machinery, equipment, and infrastructure, while human capital refers to the development of skills and knowledge through training and education. These investments contribute to increased productivity and economic growth.
2. Job creation: Business finance enables businesses to expand their operations, invest in new projects, and create job opportunities. This leads to increased employment rates, reduced poverty, and improved living standards in the country. For example, when a company secures financing to open a new factory, it will hire workers, stimulating economic activity and generating income for individuals and families.
3. Innovation and technological advancement: Access to business finance promotes innovation and the adoption of new technologies. Companies can invest in research and development, acquire cutting-edge technologies, and improve production processes. This leads to increased productivity, competitiveness, and economic development. For instance, a technology startup may secure funding to develop a new software solution that improves efficiency in various industries.
4. Economic stability: Business finance plays a vital role in maintaining economic stability. It helps businesses manage risks and uncertainties by providing access to capital during difficult times. For example, during an economic downturn, businesses may require financial assistance to cover operating expenses, pay salaries, and avoid bankruptcy. By supporting businesses in challenging times, business finance helps prevent further economic decline.
5. Government revenue generation: Business finance contributes to government revenue through taxation. As businesses grow and generate profits, they contribute to tax revenues, which can be used to fund public goods and services such as infrastructure development, education, healthcare, and social welfare programs. This enhances the overall economic development of a country.
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Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,100 machine hours per year, which represents 25,050 units of output. Annual budgeted fixed factory overhead costs are $250,500 and the budgeted variable factory overhead cost rate is $2.00 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 18,500 units, which took 39,100 machine hours. Actual fixed factory overhead costs for the year amounted to $246,100 while the actual variable overhead cost per unit was $1.90. Based on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each variance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Factory Overhead Variances for the Year is $4,400 (F). Variable Factory Overhead Variance is $1,850 (F). Total Factory Overhead Variance is $6,250 (F).
The fixed factory overhead variance is favorable (F) because the actual fixed factory overhead costs were lower than the budgeted amount. This indicates that the company was able to control its fixed overhead costs effectively.
Factory Overhead Variances for the Year: Fixed Factory Overhead Variance:
Budgeted Fixed Factory Overhead - Actual Fixed Factory Overhead
$250,500 - $246,100 = $4,400 (F)
The variable factory overhead variance is also favorable (F) because the actual variable overhead cost per unit was lower than the budgeted rate. This suggests that the company was able to reduce its variable overhead costs per unit of output.
Variable Factory Overhead Variance:
Budgeted Variable Factory Overhead - Actual Variable Factory Overhead
($2.00 per unit × 18,500 units) - ($1.90 per unit × 18,500 units)
$37,000 - $35,150 = $1,850 (F)
The total factory overhead variance is favorable (F) because both the fixed and variable overhead variances are favorable. This implies that the company achieved cost savings in both fixed and variable overhead costs, resulting in overall lower factory overhead costs compared to the budgeted amount.
Total Factory Overhead Variance:
Fixed Factory Overhead Variance + Variable Factory Overhead Variance
$4,400 (F) + $1,850 (F) = $6,250 (F)
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(4) An Arnold Palmer (AP) is a beverage composed of half iced tea (T) and half lemonade (L) poured into one 16 ounce glass (G) (i.e., there are 8 ounces each of T and L per glass). (a) Find the production function for Arnold Palmers (as a function of # of glasses and ounces each of tea and lemonade). (b) Suppose that iced tea and lemonade each cost $0.10 per oz, and glasses cost $1.40 each. Find the cost function for glasses of Arnold Palmers. (c) Suppose you are the (monopoly) seller of APs at the golf course. Find the profitmaximizing number of APs to sell if P(AP)=13−
40
AP
.
The production function for Arnold Palmers can be expressed as: AP = min(G/2, T, L)
a) The production function for Arnold Palmers can be expressed as:
AP = min(G/2, T, L)
This function represents that the number of Arnold Palmers produced is limited by the lowest quantity of iced tea, lemonade, and glasses available.
b) To find the cost function for glasses of Arnold Palmers, we need to consider the cost of iced tea, lemonade, and glasses. Since each ounce of iced tea and lemonade costs $0.10 and each glass costs $1.40, the cost function can be written as:
Cost(AP) = 0.10(T + L) + 1.40(G)
c) To find the profit-maximizing number of Arnold Palmers to sell, we need to maximize the profit function. The profit (π) is given by the difference between total revenue (TR) and total cost (TC).
π = TR - TC
TR = P(AP) * AP
TC = Cost(AP)
Substituting the given price function P(AP) = 13 - 40AP into the profit function, we have:
π = (13 - 40AP) * AP - Cost(AP)
The optimal number of Arnold Palmers to sell can be found maximizing the profit function by taking its derivative with respect to AP, setting it equal to zero, and solving for AP.
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how to tell if a company uses direct or indirect method
The direct method reports the actual cash inflows and outflows from operating activities, while the indirect method starts with the net income and adjusts it for non-cash items and changes in working capital.
The cash flow statement is a financial statement that shows the inflows and outflows of cash in a company over a specific period. There are two methods commonly used by companies to prepare their cash flow statements: the direct method and the indirect method.
The direct method reports the actual cash inflows and outflows from operating activities. It provides a more detailed and transparent view of the company's cash flows. Under this method, cash receipts from customers and cash payments to suppliers, employees, and other operating expenses are directly reported. However, it requires more effort and information to prepare.
The indirect method starts with the net income and adjusts it for non-cash items and changes in working capital to arrive at the net cash provided by operating activities. It is more commonly used as it is easier to prepare and provides a reconciliation between net income and cash flow from operating activities. Non-cash items such as depreciation and changes in working capital, such as accounts receivable and accounts payable, are added or subtracted to arrive at the net cash provided by operating activities.
To determine which method a company uses, you can refer to the company's financial statements, specifically the cash flow statement. The method used is usually disclosed in the notes to the financial statements or in the statement itself.
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In performing tests of controls over authorization of cash disbursements, which of the following statistical sampling methods would be most appropriate?
A. Variables.
B. Stratified.
C. Ratio.
D. Attributes
In performing tests of controls over authorization of cash disbursements, the most appropriate statistical sampling method would be D. Attributes.
Attributes sampling is a statistical sampling method used to assess the presence or absence of certain characteristics or attributes within a population. In the context of testing controls over authorization of cash disbursements, the objective is to determine whether the controls are operating effectively. This involves evaluating the presence or absence of proper authorization for each cash disbursement.
Attributes sampling allows auditors to make conclusions about the population based on the sample results. It involves selecting a sample of items and evaluating whether the specific attribute of interest (in this case, proper authorization) is present or absent in each sampled item. This method provides a basis for determining the rate of compliance with the control objective.
Therefore, for testing controls over authorization of cash disbursements, the most appropriate statistical sampling method would be D. Attributes.
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please answer asap, i will give you a thumbs up!
Give an example of a company with a strong organizational culture. How does its management align the company vision and mission with its organizational culture?
Zappos exemplifies a strong organizational culture by aligning its management's vision and mission through a focus on exceptional customer service and cultivating a positive, empowering work environment that values employee happiness.
Zappos is a prime example of a company with a strong organizational culture. Its management aligns the company's vision and mission with its culture by prioritizing customer service and creating a workplace that values employee happiness. They empower employees to deliver exceptional service by providing extensive training and autonomy, while fostering a positive and fun work environment. This alignment ensures that every employee embodies the company's vision of delivering the best customer experience and contributes to a strong and customer-centric organizational culture.
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