The most accurate statement regarding IPOs is that many IPOs, especially larger offerings, are managed by a group of underwriters called a syndicate.
IPOs are commonly managed by underwriting syndicates, which consist of multiple investment banks that help the company go public. These underwriters assist in determining the offering price, marketing the IPO to potential investors, and managing the allocation and distribution of shares. This collaborative approach allows for a broader range of expertise and resources in the IPO process.
Learn more about marketing here:
https://brainly.com/question/27155256
#SPJ11
Discuss the North-South gap in terms of economic development, environmental issues, security and migration and explain how the Biden Administration addresses these issues from the perspective of US interests
The North-South gap refers to the difference between the northern hemisphere countries, which are typically more prosperous, and the southern hemisphere countries, which are generally less developed. This gap has implications for economic development, environmental issues, security, and migration. The Biden Administration is seeking to address these issues from the perspective of US interests by implementing policies that aim to promote economic growth, protect the environment, enhance security, and manage migration.
Economic development: The North-South gap is evident in the differences in economic development between countries. The northern hemisphere is home to many developed economies, while the southern hemisphere has many developing economies. The Biden Administration is working to close this gap by promoting trade and investment in developing countries, providing development assistance, and supporting efforts to reduce poverty and inequality.
Environmental issues: The North-South gap also manifests itself in environmental issues. Developing countries are often more vulnerable to the negative impacts of climate change and environmental degradation than developed countries. The Biden Administration is addressing this issue by promoting clean energy and environmental sustainability, both domestically and internationally.
Security: The North-South gap also has implications for security. Many developing countries are plagued by conflict, terrorism, and other security challenges. The Biden Administration is working to address these issues by providing security assistance, promoting democracy and human rights, and supporting peacekeeping efforts.
Migration: The North-South gap also fuels migration, as people from developing countries seek better economic opportunities and greater security in developed countries. The Biden Administration is addressing this issue by promoting legal immigration, improving border security, and addressing the root causes of migration by providing development assistance and promoting stability in developing countries.
In conclusion, the North-South gap has significant implications for economic development, environmental issues, security, and migration. The Biden Administration is addressing these issues from the perspective of US interests by promoting economic growth, protecting the environment, enhancing security, and managing migration.
To know more about environmental visit:
https://brainly.com/question/21976584
#SPJ11
what do you ask bree? can your customers resell your products to one another? what is your current profit? are your profits greater than your costs? what are your fixed costs?
If you were to ask Bree, the following are the potential questions:What is the status of the products of your customers?Can your customers resell your products to one another?
What is your current profit?Are your profits greater than your costs? What are your fixed costs?It is necessary to provide a little background to the questions and then add their answers for more clarity. Bree is most likely a seller who sells products to her customers, and therefore, these questions will be about her business.The first question, "What is the status of the products of your customers?" is an open-ended question that will allow Bree to explain if she knows whether her customers have received the products.
Moreover, she will clarify if there have been any issues with the product that the customers have received.Secondly, "Can your customers resell your products to one another?" is a question that will give Bree the opportunity to elaborate on her policy on reselling of products. It is an essential question because it will determine if there are any restrictions on reselling.
The third question, "What is your current profit?" is a direct question that will help Bree to explain how much she makes from her sales. It is an important question because it will help to establish the success of her business.
To know more about products visit:
https://brainly.com/question/33332462
#SPJ11
The ability to produce a product most efficiently given all the other products that could be produced is called________.
a. Absolute advantage.
b. Comparative advantage.
c. Human capital.
d. Physical capital
The ability to produce a product most efficiently given all the other products that could be produced is called comparative advantage. Thus, option B is the correct option.
The ability to produce a product most efficiently given all the other products that could be produced is indeed called comparative advantage. It refers to a situation where an entity, be it a country, individual, or company, can produce a specific good or service at a lower opportunity cost compared to others. It is based on the idea of trade-offs and efficiency in resource allocation.
By focusing on producing goods or services where they have a comparative advantage, entities can maximize their productivity and allocate resources more efficiently, ultimately leading to increased economic output and potential gains from trade in the global marketplace. Comparative advantage is a fundamental concept in international trade theory.
Learn more about Comparative advantage here:
https://brainly.com/question/7780461
#SPJ4
The Ohm Depot Co. is currently considering the purchase of a new machine that would increase the speed of manufacturing electronic equipment and save money. The net cost of the new machine is $ 66,000. The annual cash flows have the following projections:
Year Amount ($)
0 ( 66,000)
1 21,000
2 29,000
3 36,000
4 16,000
5 8,000
If the cost of capital is 10 percent, find the following:
a. The NPV
b. The IRR_
c. Payback_
The net present value (NPV), internal rate of return (IRR), and payback for Ohm Depot Co. if it purchases a new machine that will increase the speed of manufacturing electronic equipment and save money and costs $66,000 are to be calculated. The projected annual cash flows for five years are as follows:
Year ,Amount ($)0(66,000)121,000229,000336,000416,00058,000.
To find out the NPV of the company, the following formula can be used:
NPV = CF1 / (1 + r)1 + CF2 / (1 + r)2 + CF3 / (1 + r)3 + CF4 / (1 + r)4 + CF5 / (1 + r)5 – CoI
n this formula,
CF stands for cash flow for each year (1 to 5),
r stands for the discount rate, and Co is the cost of the investment in the machine which is $66,000.
Using the above formula and by placing the values, the NPV can be calculated as follows:
NPV = 21,000 / (1 + 0.10)1 + 29,000 / (1 + 0.10)2 + 36,000 / (1 + 0.10)3 + 16,000 / (1 + 0.10)4 + 8,000 / (1 + 0.10)5 – 66,000
= $12,551.44
(to the nearest cent)Now, to calculate the internal rate of return (IRR), we must calculate the discount rate (r) that makes the NPV equal to zero. We'll use trial and error to find the discount rate that produces an NPV of zero. We'll begin with a discount rate of 5 percent and gradually increase it until the NPV is close to zero.By using this method, the IRR is calculated to be 17.12 percent (approximately)Now, to calculate the payback, we'll keep adding the cash flows until we have enough money to recover our initial investment. In this case, since we're investing $66,000 and we're receiving the following yearly cash flows:
Year ,Amount ($)0(66,000)121,000229,000336,000416,00058,000
We can see that the year 4 cash flow is $16,000, and the year 5 cash flow is $8,000.
This totals to $24,000. If we add the year 3 cash flow of $36,000, we have a total of $60,000, which exceeds our $66,000 initial investment.
Therefore, the payback period for this investment is 3 years plus the ratio of the remaining $6,000 to the $36,000 cash flow in year 3
(i.e., $6,000 ÷ $36,000 = 0.17 years).
Thus, the payback period is approximately 3.17 years (to the nearest hundredth).Hence,
NPV = $12,551.44,
IRR = 17.12 percent (approximately),
and the payback period is approximately 3.17 years.
To know more about NPV visit:
https://brainly.com/question/33034124
#SPJ11
james is willing to pay $400 for a new suit, but he is able to buy the suit for $250. his consumer surplus is a)$650. b)$150. c)$250 d)$400.
B) $150 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, James is willing to pay $400 for the suit but can buy it for $250. Therefore, his consumer surplus is the difference between these two amounts, which is $400 - $250 = $150. Consumer surplus represents the additional benefit or value that consumers receive when they are able to purchase a product at a price lower than what they are willing to pay. It is a measure of the economic welfare or satisfaction that consumers gain from a transaction.In this scenario, James is experiencing a consumer surplus of $150 because he is obtaining the suit for a price that is $150 less than his maximum willingness to pay. This means that he is receiving a benefit of $150 in terms of the value he perceives from the suit beyond the price he pays.
learn more about Consumer here :
https://brainly.com/question/33474331
#SPJ11
"
please do not give the same answer as the other 2 questions
posted. they are wrong
1. (2 marks) Consider preferences defined over the nonnegative orthant by \( \left(x_{1}, x_{2}\right) \succeq\left(y_{1}, y_{2}\right) \) if and only if \( \left(2 x_{1}+x_{2}\right)^{3} \geq\left(2 "
Preferences defined over the nonnegative orthant are as follows:
Consider preferences defined over the nonnegative orthant by[tex]\( \left(x_{1}, x_{2}\right) \succeq\left(y_{1}, y_{2}\right) \) if and only if \( \left(2 x_{1}+x_{2}\right)^{3} \geq\left(2 y_{1}+y_{2}\right)^{3} \).[/tex]
Prove that the above preference relation satisfies the following properties:
[tex]Complete: If \(x \succeq y\), then either \(x \succeq y\) or \(y \succeq x\).Reflexive: \(x \succeq x\) for all \(x\).Transitive: If \(x \succeq y\) and \(y \succeq z\), then \(x \succeq z\).[/tex]
Proof: First, we will show that this relation is complete. Suppose that \(x\) and \(y\) are two points in the nonnegative orthant.
Then, we have two possibilities:[tex]\(\left(2 x_{1}+x_{2}\right)^{3} \geq\left(2 y_{1}+y_{2}\right)^{3}\), in which case \(x \succeq y\).\(\left(2 y_{1}+y_{2}\right)^{3} \geq\left(2 x_{1}+x_{2}\right)^{3}\), in which case \(y \succeq x\).[/tex]
Thus, the relation is complete.
Now, we will show that the relation is reflexive. Let \(x\) be any point in the nonnegative orthant. Then,[tex]\(\left(2 x_{1}+x_{2}\right)^{3} =\left(2 x_{1}+x_{2}\right) \cdot\left(2 x_{1}+x_{2}\right) \cdot\left(2 x_{1}+x_{2}\right) \geq 0\)So, \(x \succeq x\) for all \(x\).[/tex]
Finally, we will show that the relation is transitive. Suppose that \(x\), \(y\), and \(z\) are points in the nonnegative orthant such that \(x \succeq y\) and \(y \succeq z\).
Then,[tex]\(\left(2 x_{1}+x_{2}\right)^{3} \geq\left(2 y_{1}+y_{2}\right)^{3} \geq\left(2 z_{1}+z_{2}\right)^{3}\)[/tex]
which implies that [tex]\(\left(2 x_{1}+x_{2}\right)^{3} \geq\left(2 z_{1}+z_{2}\right)^{3}\).[/tex]
Therefore, [tex]\(x \succeq z\)[/tex], and the relation is transitive.
To know more about orthant visit :
https://brainly.com/question/31829810
#SPJ11
In the economy described in the TREES QUESTION 1, suppose that in a given year $100 worth of trees are produced. These trees are sold to paper producers who in turn produce $130 worth of paper. Half of that is sold to consumers. The rest is sold to the producers of books who produce $112 worth of books and sell them to the consumers. The GDP of this economy is $ QUESTION 5 (TREES QUESTION 3) In the economy described in TREES QUESTION 2 (this may be below in your PreHW1), the value added of trees producers is A. $60 B. $20 C. $40 D. $100
The GDP of the economy is [tex]$221[/tex].In the given economy, [tex]$100[/tex] worth of trees are produced. Therefore, the value added by the trees producers is [tex]$100[/tex].The correct option is D. [tex]$100[/tex].
Half of this paper is sold to consumers, and the remaining is sold to book producers, who then produce [tex]$112[/tex] worth of books, which is then sold to the consumers.To find: The GDP of the economy.Solution:Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific period.
This value is added to the economy by the paper producers and the book producers.
GDP of the economy = [tex]$100[/tex] + [tex]$65[/tex]+ [tex]$56[/tex]
=[tex]$221[/tex]
Therefore, the GDP of the economy is [tex]$221[/tex].In the given economy, [tex]$100[/tex] worth of trees are produced. This value is added to the economy by the trees producers, which is equal to the value of the trees produced.
Hence, only the value-added to the economy by the book producers is considered.
Value added by book producers =
Value of books produced - Value of paper purchased from paper producers
= [tex]$112[/tex] - [tex]$65[/tex]
= [tex]$47[/tex]
The value added by trees producers is equal to the value of trees produced, which is [tex]$100[/tex].
To know more about economy visit:
https://brainly.com/question/18461883
#SPJ11
hey produce masks in two plants. An internal
audit reveals that the Marginal Costs in plant A is greater than in plant
B, but the Average Cost in plant B is greater than in plant A. Explain
whether they should shift production from A to B, from B to A, or not
change it.
The internal audit of a company which produces masks in two plants reveals that the Marginal Costs in plant A is greater than in plant B, but the Average Cost in plant B is greater than in plant A. Let us discuss whether they should shift production from A to B, from B to A, or not change it.
Marginal cost refers to the cost incurred on the production of one extra unit of a good or service. On the other hand, average cost refers to the cost of producing one unit of a good or service.The company should continue production in plant A because the marginal cost of production is lower than that of plant B. It is more profitable for the company to produce more goods in plant A than plant B because the cost of producing an additional unit in plant A is lower than that in plant B. This is an advantage to the company since it will have the ability to produce more with fewer costs.of plant A. The company should not shift production from plant A to plant B since doing so will only result in higher costs, reducing the company's profitability.
To know more about Marginal visit:
https://brainly.com/question/28481234
#SPJ11
please briefly describe the steps un the marketing research
process. (think flow chart)
and which steps are the most important?
Please briefly describe the steps in the marketing research process (think "fow chart"). Which step is the most important? For the toolbar, press ALT \( +F 10(P C) \) or \( A L T+F N+F 10 \) iMari
The following steps are frequently included in the marketing research process: Determine the precise problem or study objective that needs to be addressed in order to collect pertinent data.
Conduct a literature review. Review the existing research, studies, and pertinent sources to learn more about the subject. Specify the research inquiries or theories: Create precise, well-defined research questions or hypotheses to direct your investigation. Select the research design: Depending on the goals of the study and the resources at hand, select an appropriate research design, such as exploratory, descriptive, or causal. Choose the sample: Choose a representative sample based on the target population and the data collection process. Gather data: Using a variety of techniques, such as surveys, interviews, observations, or experiments, collect data, ensuring the accuracy and validity of the data. Analyse and interpret data: To glean useful insights, analyse the gathered data using statistical methods, qualitative analysis, or other suitable techniques. Draw findings and offer recommendations: Based on the analysis, offer conclusions and suggestions that speak to the goals of the study and offer practical knowledge. Report and present findings: Create a thorough report that includes a summary of the research process, conclusions, and suggestions. Then, present the report to the pertinent stakeholders. Finding the problem or research aim is frequently seen as the first and most crucial phase in the marketing research process. This step establishes the framework for the entire research procedure and guarantees that the study is targeted, pertinent, and in line with the objectives of the organisation. Absent a thorough knowledge Without a clear understanding of the issue or goal, subsequent actions could be ineffective and produce meaningless outcomes. To ensure the efficiency and success of the marketing research process, it is essential to precisely describe the research challenge.
learn more about marketing here:
https://brainly.com/question/32094123
#SPJ11
for tina, the opportunity cost of 1 cup of coffee is 5 cups of tea. for gabe, the opportunity cost of 1 cup of coffee is 2 cups of tea.
The correct statements about terms of trade are:
a) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade 1 coffee for 2 tea, then Gloria will be neither better off nor worse off.
b) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 3 tea, then both will be better off.
с) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 4 tea, then both will be better off.
The concept of opportunity cost and comparative advantage plays a key role in understanding terms of trade. Opportunity cost refers to the value of the next best alternative given up when making a choice. Comparative advantage, on the other hand, is the ability to produce a good or service at a lower opportunity cost than others.
In this scenario, Ted's opportunity cost of 1 cup of coffee is 4 cups of tea, while Gloria's opportunity cost of 1 cup of coffee is 2 cups of tea. This means that Gloria has a comparative advantage in producing coffee since her opportunity cost of producing coffee is lower than Ted's.
Now let's analyze the given statements:
a) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade 1 coffee for 2 tea, then Gloria will be neither better off nor worse off.
Since Gloria's opportunity cost of 1 cup of coffee is 2 cups of tea, she gains 2 cups of tea through trade, which is exactly equal to her opportunity cost. Therefore, she remains neither better off nor worse off.
b) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 3 tea, then both will be better off.
If Ted trades 1 cup of coffee for 3 cups of tea, he gains 3 cups of tea while his opportunity cost is 4 cups of tea. This trade allows Ted to consume more tea than his opportunity cost, making him better off. Similarly, Gloria gains 1 cup of coffee, which has an opportunity cost of 2 cups of tea for her. Thus, both Ted and Gloria are better off through trade.
с) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 4 tea, then both will be better off.
Explanation: Similar to the previous explanation, if Ted trades 1 cup of coffee for 4 cups of tea, he gains 4 cups of tea while his opportunity cost is 4 cups of tea. This trade allows Ted to consume exactly his opportunity cost, resulting in no change in his well-being. However, Gloria gains 2 cups of tea, which have an opportunity cost of 1 cup of coffee for her. Therefore, Gloria is better off through trade.
Based on the given information, statement d) and e) are not true. In statement d), the trade would not take place because Ted would be worse off, and in statement e), the trade would not take place because Gloria would be worse off.
To know more about Opportunity Cost here
https://brainly.com/question/32971162
#SPJ4
Complete Question
Forted, the opportunity cost of 1 cup of coffee is 4 cups of tea. For Gloria, the opportunity cost of 1 cup of coffee is 2 cups of tea. Given the information above, select all statements about terms of trade that are TRUE: Hint: there is more than one TRUE statement Multiple answers: Multiple answers are accepted for this question Select one or more answers and submit.
a) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade 1 coffee for 2 tea then Gloria will be neither better off or worse off
b) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 3 tea then both will be better off
с) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade : coffee for 4 tea then both will be better off
d) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade i coffee for 6 tea then Gloria would be better off but Ted would be worse off so the trade would not take place
e) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade 1 miles for tea then Ted would be better off but Gloria would be worse off so the trade would not take place.
a. "Leasing reduces risk and can reduce a firm's cost of capital". Discuss briefly with TWO (2) supported reasons if you agree or disagree with the statement. (8 Marks)
Leasing is an agreement that allows a firm to use an asset for a specific period without purchasing it. The asset is owned by the lessor, and the lessee pays a lease payment for the asset’s use. Leasing reduces risk and can reduce a firm's cost of capital.
The following are the two reasons for supporting this statement:
Reduced Risk: Leasing decreases a company's risk in several ways. One way is by transferring the risk of the asset's ownership to the lessor. As a result, the lessee does not have to bear the risk of owning the asset. Leasing reduces the risks associated with technology obsolescence and asset resale because the lessor is responsible for the asset's disposition and replacement with new technology.
Cost of Capital Reduction: Leasing reduces a firm's cost of capital by providing an alternative financing source. Leasing is an excellent option for companies with high borrowing rates or insufficient creditworthiness. Leasing provides a lower-cost alternative to traditional bank loans. Because the lessor owns the asset and can take back the asset if the lessee fails to pay, the lease rates are often lower than other debt sources. In addition, lease payments are tax-deductible, providing additional savings. The above-discussed points support the statement that "Leasing reduces risk and can reduce a firm's cost of capital." Leasing not only lowers the costs of a company's capital, but it also helps a company to minimize its risk exposure.
To know more about Leasing visit :-
https://brainly.com/question/22785840
#SPJ11
Nipigon Manufacturing has a cost of debt of 9 %, a cost of equity of 13%, and a cost of preferred stock of 10%. Nipigon currently has 100,000 shares of common stock outstanding at a market price of $25 per share. There are 49,000 shares of preferred stock outstanding at a market price of $40 a share. The bond issue has a face value of $800,000 and a market quote of 106. The company’s tax rate is 40%.
Required:
Calculate the weighted average cost of capital for Nipigon. You must show and clearly label all calculations to receive full marks. You can enter them in the space below or upload them to the drop box in the Assignments Area.
The weighted average cost of capital (WACC) can be calculated by weighting the cost of each capital source by its percentage of total capital. The formula for calculating WACC is shown below:WACC = (w1 x k1) + (w2 x k2) + (w3 x k3)where:w1, w2, w3 = the respective weights of debt, preferred stock, and common equityk1, k2, k3 = the respective costs of debt, preferred stock, and common equity.
The percentage of each capital source in the company's capital structure must be determined first, then the cost of each capital source must be calculated. To calculate the WACC, the weighted average of these costs will be used. Here are the calculations and explanations for each component:Cost of debt = 9%Because the bond issue's market value is different from its face value, the yield to maturity must be calculated before the cost of debt can be determined. = $848,000(106% of $800,000 face value)= $898,880Market Value of Bond = $898,880Yield to maturity is calculated using a financial calculator. A financial calculator was used to determine a yield to maturity of 7.49%. To calculate the cost of debt, multiply this figure by (1 - the tax rate):Cost of debt = 7.49%(1 - 0.40) = 4.494%Cost of preferred stock = 10%Market Value of preferred stock = 49,000 × $40 = $1,960,000Cost of preferred stock = $4.90Cost of common equity = 13%Market value of common equity = 100,000 × $25 = $2,500,000The capital structure of Nipigon is now shown in the table below:Source of Capital Market Value Weight CostDebt $898,880 21.17% 4.494%Preferred Stock $1,960,000 46.20% 10%Common Stock $2,500,000 32.63% 13%Total $4,359,880 100.00%Using the WACC formula and the capital structure weights and costs given above, the WACC for Nipigon Manufacturing is calculated as follows:WACC = (0.2117 x 4.494%) + (0.4620 x 10%) + (0.3263 x 13%)= 1.05% + 4.62% + 4.24%= 9.91%.
Therefore, Nipigon Manufacturing's weighted average cost of capital (WACC) is 9.91%. Hence, the solution to the problem is as follows:WACC=9.91%Answer: 9.91%.
To know more about average cost of capital visit:
https://brainly.com/question/8287701
#SPJ11
1. ________ include items such as vacation pay, bonuses, commissions, exercised nonqualified stock options, and dismissal pay.
1. Supplemental wage payments include items such as vacation pay, bonuses, commissions, exercised nonqualified stock options, and dismissal pay.
Supplemental wage payments encompass a variety of financial benefits provided to employees beyond their regular wages or salaries. These additional payments are typically associated with specific circumstances or events, such as vacation pay, bonuses, commissions, exercised nonqualified stock options, and dismissal pay.
Vacation pay refers to the compensation employees receive when they take time off from work for vacation or personal leave. It is an additional payment on top of their regular salary and serves as a financial incentive for employees to take time off and recharge.
Bonuses are one-time or periodic payments given to employees as a reward for achieving specific goals or exceeding performance expectations.
They can be based on individual, team, or company-wide achievements and serve as a motivational tool to encourage exceptional performance.
Commissions are payments made to employees based on the sales they generate or the revenue they bring into the organization. These payments are often used in sales-oriented industries and provide an incentive for employees to drive sales and contribute to the company's bottom line.
Exercised nonqualified stock options refer to the additional income employees receive when they exercise their right to purchase company stock at a predetermined price.
This benefit allows employees to share in the company's success and potentially realize financial gains.
Dismissal pay, also known as severance pay or termination pay, is the compensation provided to employees when their employment is terminated. It serves as a financial cushion to support employees during the transition period after job loss.
For more such questions commissions,click on
https://brainly.com/question/28197801
#SPJ8
Laura is willing to pay as much as $1,000 for a wedding dress but is happy to find one she likes that costs $300.
Select the term below that corresponds to this situation.
Consumer surplus
Producer surplus
Ceteris paribus
Equilibrium
Laura is willing to pay as much as $1,000 for a wedding dress but is happy to 'Consumer surplus' one she likes that costs $300. Thus, option (a) is correct.
The gap between the utmost price a consumer is prepared to pay and the final price they pay is known as the consumer surplus. In this instance, Laura would have been willing to spend up to $1,000 on a wedding gown, but she only spends $300, leaving her with a $700 consumer surplus.
A market's efficiency can be assessed using the concept of consumer surplus, which quantifies the benefit that consumers derive from a transaction.
Therefore, option (a) is correct.
Learn more about on consumer surplus, here:
https://brainly.com/question/29025001
#SPJ4
B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $377,600 and has a 8 -year life and no salvage value. B2B Company requires at least an 9% return on investment. The expected annual income for each year from this equipment follows: ( PV of $1,FV of $1, PVA of $1, and (Use appropriate factor(s) from the tables provided.) (a) Compute the net present value of this investment. (b) Should the investment be accepted or rejected on the basis of net present value? Complete this question by entering your answers in the tabs below. Compute the net present value of this investment. (Round your present value factor to 4 decimals and other final answers to the nearest whole dollar.)
a) The net present value (NPV) of the investment is -$33,345.96.
To calculate the NPV, we need to discount the expected annual income using the appropriate discount rate. The discount rate is given as 9%. Using the present value of an annuity (PVA) factor from the tables provided, we can calculate the present value (PV) of each year's income.
Then, we sum up the present values and subtract the initial cost of the equipment. The NPV is negative, indicating that the investment does not meet the minimum required return of 9%.
(b) The investment should be rejected based on the net present value.
The net present value measures the profitability of an investment by comparing the present value of cash inflows to the initial cost. In this case, the NPV is negative, indicating that the investment is expected to generate less than the required return of 9%.
As a result, accepting the investment would result in a loss. Therefore, it is advisable for the B2B Company to reject this investment based on the net present value analysis.
To learn more about cash inflows
Click here brainly.com/question/10714011
#SPJ11
a) The net present value (NPV) of the investment is -$33,345.96.
To calculate the NPV, we need to discount the expected annual income using the appropriate discount rate. The discount rate is given as 9%. Using the present value of an annuity (PVA) factor from the tables provided, we can calculate the present value (PV) of each year's income.
Then, we sum up the present values and subtract the initial cost of the equipment. The NPV is negative, indicating that the investment does not meet the minimum required return of 9%.
(b) The investment should be rejected based on the net present value.
The net present value measures the profitability of an investment by comparing the present value of cash inflows to the initial cost. In this case, the NPV is negative, indicating that the investment is expected to generate less than the required return of 9%.
As a result, accepting the investment would result in a loss. Therefore, it is advisable for the B2B Company to reject this investment based on the net present value analysis.
Learn more about value here-
brainly.com/question/10714011
#SPJ11
At public TV station, QQTV, the Membership Department currently keeps donation information on database which runs on their local area network. QQTV would like to pursue more direct marketing and World Wide Web applications. At QQTV there are two kinds of donors: individual and corporate. Cash donations are made by both. Corporations also make "in-kind" donations, i.e., donations of non-cash items such as food, office supplies, advertising space, etc.
The following information is kept on in-kind donations: the item, quantity, and cash value. In-kind donations are not accepted from individuals. Individuals who donate a total of $50 or more a year are considered members and receive a monthly magazine and discount coupons from local merchants. Individual who donate less than $50 and corporations do not receive these items. Individuals and corporate members receive annual renewal notification one month in advance of their membership expiration.
Additional donations and new members are sought during quarterly, week long on-air fund drives. Some corporations provide "matching gift" programs where employee contributions to QQTV are matched by the corporation. Finally, QQTV seeks donations through estate planning and bequests.
The computing environment at QQTV consists of a local area network of PCs running the Microsoft Windows XP operating system. Users of the system will be the full-time staff of QQTV and volunteers. The typical full-time staff member has a background in broadcast communications and basic facility with the Microsoft Office Suite and Internet applications. During pledge drives, volunteers will be performing data entry tasks. These volunteers possess a wide range of computer skills and have all chosen "data entry" as their task for the fund drive.
The objective of this assignment is to: Develop a business plan for introducing an integrated IS (Internet/Electronic commerce) strategy to QQTV
You should develop an integrated IS (Internet/E-commerce) strategy for a first phase of Internet business presence at QQTV.
This will include explaining what Internet capabilities should be used, technical requirements (hardware, software, and other equipment) and how this new technology would be integrated into the business.
Please find the answer on Chegg that has 3 up votes for this question, use that answer to answer the following questions:
1. What are the technical requirements (hardware, software, and other equipment) to support the integrated IS strategy?
2. What resources (personnel, equipment, etc.) will be needed to implement your strategy?
3. Purpose of the web site you developed
1. Technical requirements (hardware, software, and other equipment) for an integrated IS strategy at QQTV are as follows: Hardware: Servers, Routers, Computers, Data Storage, Networking equipment, etc. will be required for an integrated IS strategy.
These are required to provide the infrastructure for the internet and electronic commerce. Software: Databases, Security software, and appropriate application software are required to manage the organization’s e-commerce services. With the help of these software services, the management of donation data and member records, as well as data input from on-air fund drives and volunteers, is simplified.
Other Equipment: Appropriate scanning and printing equipment will be required for volunteer data entry workstations in support of pledge drives.2. For implementing an integrated IS strategy at QQTV, following resources are required:Personnel:
Professionals from the IT sector will be required to manage, design, and maintain an electronic commerce web site. Additionally, appropriate IT personnel should be hired for managing the networks and database servers. Equipment: The procurement of software, hardware, and networking equipment will be required to set up the infrastructure required to facilitate internet and electronic commerce services.
A separate workstation with scanning and printing equipment is also required to manage data input from on-air fund drives and volunteers.3. The primary purpose of the website developed is to facilitate electronic commerce and enable better data management. Donor data and member records can be maintained more efficiently through this online platform. It will also serve as a virtual hub for fund drives.will be facilitated through the platform.
To know more about Storage visit:
https://brainly.com/question/86807
#SPJ11
which types of statements are more likely to occur agreement among economists: Normative and microeconomics related Positive and macroeconomics related Normative and macroeconomics related Positive and microeconomics related
Among economists, positive statements are more likely to reach agreement than normative statements.
Positive and microeconomics-related statements are the types of statements that are more likely to occur agreement among economists. In economics, positive and normative statements are the two types of statements. Positive statements are those that are based on factual evidence and data. They are statements that are either true or false and can be tested and verified. Positive statements describe how things are, and they are objective and empirical.
For example, "The price of a gallon of gasoline is currently $3.00," is a positive statement.Normative statements, on the other hand, are subjective and cannot be verified using data. They are based on opinions and values, and they describe how things ought to be.
Normative statements are based on personal beliefs and are not testable. For example, "The government should provide free healthcare for all citizens," is a normative statement.
Know more about the microeconomics
https://brainly.com/question/28183019
#SPJ11
Consider the following information:
Demand rate (D)320 units
per hour Lead time (T) 6 hours
Container capacity (C) 65
units Safety factor (x)30%
a. The number of kanban production cards is
enter your response here.
(Enter your response rounded up to the next whole number.)
Part 3
b. The cards will represent
enter your response here
hours' worth of demand. (Enter your response rounded to one decimal place.)
Part 4
c. Suppose the lead time is reduced to
five
hours. The number of kanban production cards is
enter your response here.
(Enter your response rounded up to the next whole number.)
Part 5
The cards will represent
enter your response here
hours' worth of demand. (Enter your response rounded to one decimal place.)
Kanban Production Cards are an inventory control mechanism used to manage the flow of parts and materials into and out of a manufacturing process. They act as a trigger to initiate replenishment and typically represent the movement of a standard quantity of production stock, such as a container of parts, from one point in the manufacturing process to the next.
Kanban is a Japanese word that translates to “sign” or “card,” and the Kanban Production Card system uses cards or other visual signals to initiate replenishment when parts are consumed in the manufacturing process.
The formula to calculate the number of Kanban production cards is
:Number of Kanban Production Cards = Demand During Lead Time + Safety Stock / Container Capacity
The Demand During Lead Time is calculated as follows:Demand During Lead Time = Demand Rate * Lead Time
The Safety Stock is calculated as follows:Safety Stock = Demand Rate * Lead Time * Safety Factor
The number of Kanban production cards, in this case, is calculated as follows:
Number of Kanban Production Cards = Demand During Lead Time + Safety Stock / Container Capacity
Number of Kanban Production Cards = 320 units/hour * 6 hours + (320 units/hour * 6 hours * 30%) / 65 units
Number of Kanban Production Cards = 115 cards (rounded up to the nearest whole number)
The cards will represent 6 hours' worth of demand as calculated from the given data.
The number of Kanban production cards when the lead time is reduced to five hours is calculated as follows:
Number of Kanban Production Cards = Demand During Lead Time + Safety Stock / Container Capacity
Number of Kanban Production Cards = 320 units/hour * 5 hours + (320 units/hour * 5 hours * 30%) / 65 units
Number of Kanban Production Cards = 96 cards (rounded up to the nearest whole number)
The cards will represent 5 hours' worth of demand as calculated from the given data.
To know more about manufacturing process visit:
https://brainly.com/question/33046966
#SPJ11
Net Present Value (NPV) uses valuations of present values of a stream of income to discount to today’s dollars to compare to our investment today. Provide an analysis of the use of NPV within a corporation and prepare an example (with calculations) for how an organization would use NPV in a project decision.
Within professional sports contracts, contracts are often created to function similar to a bond where players will receive defined cash flows over time. Consider an NFL player (real or fabricated) and explain their contract in terms of TVM and provide an example to explain how these cash flows must be discounted to today’s dollars.
Net Present Value (NPV) is a valuable investment appraisal technique that can be used to determine the present value of future cash flows.
This technique uses the concept of Time Value of Money (TVM), which considers the value of money over time due to inflation and other factors.
NPV is used by corporations to evaluate potential investment opportunities and determine whether a project is worth investing in or not.
To calculate NPV, an organization would estimate the future cash flows expected from the project and discount them back to the present using a discount rate that reflects the cost of capital.
If the NPV is positive, the project is considered worth investing in as it is expected to generate a return that exceeds the cost of capital.
If the NPV is negative, the project is not worth investing in as it is expected to generate a return that is less than the cost of capital. A real-world example of the use of NPV would be a company considering investing in a new factory.
To know more about appraisal visit:
https://brainly.com/question/32118196
#SPJ11
Net Present Value (NPV) is an analysis of the use of NPV within a corporation and how an organization would use NPV in a project decision. NPV involves determining the present value of a project’s cash flows and deducting it from the initial investment.
The project’s net present value is determined by comparing the current value of the cash inflows to the current value of the cash outflows to determine whether the project is worth the investment.In a corporation, NPV is used to evaluate long-term investments, such as capital expenditures, and determine whether they are worth pursuing. Organizations use NPV to compare the cost of capital with the return on investment (ROI) for the project. If the net present value is positive, the project is worth investing in because it will generate a return that exceeds the cost of capital.
Conversely, if the net present value is negative, the project will not be profitable.An example of how an organization might use NPV in a project decision is as follows:Suppose that an organization is considering investing in a new project that will generate $100,000 in annual revenue for the next five years. The project requires an initial investment of $250,000. Assuming a discount rate of 10%, the NPV of the project is:Year 1: $100,000/(1 + 0.10)¹ = $90,909.09 Year 2: $100,000/(1 + 0.10)² = $82,644.63 Year 3: $100,000/(1 + 0.10)³ = $75,131.48 Year 4: $100,000/(1 + 0.10)⁴ = $68,301.34 Year 5: $100,000/(1 + 0.10)⁵ = $62,099.40 NPV = -$250,000 + $90,909.09 + $82,644.63 + $75,131.48 + $68,301.34 + $62,099.40= $28,086.94
To know more about corporation visit:
https://brainly.com/question/30029715
#SPJ11
Which of the following is correct?
A.Bread is an example of a good that is nonrival in consumption
B.Internet service is a good example of a price-excludable public good.
C.Clubs are a means of providing congestible public goods through markets.
D.National defense is an example of a price-excludable public good.
D. National defense is an example of a price-excludable public good. national defense is a classic example of a public good because it is non-excludable, meaning individuals cannot be excluded from benefiting from it. Additionally, it is non-rivalrous, as one person's consumption does not diminish its availability for others.
However, it is not a congestible public good like clubs, and it is not price-excludable like Internet service. National defense is typically funded through taxes, making it non-excludable based on payment.
National defense is considered a public good because it benefits society as a whole and individuals cannot be easily excluded from its protection. It is non-excludable because once the defense system is in place, everyone within the country benefits from it regardless of their contribution or willingness to pay. For example, even if someone does not pay taxes, they still receive the benefits of national defense. However, unlike Internet service, which can be priced and restricted to those who pay for it, national defense is not typically provided or funded based on individual payment.
Learn more about benefits here:
https://brainly.com/question/30267476
#SPJ11
Explain the proper accounting treatment of goodwill and
noncontrolling interest in business and nonprofit combinations.
Goodwill refers to the difference between the purchase price of a company and its book value. Goodwill is only recognized as an asset if it was acquired in a business combination. Noncontrolling interests refer to the portion of a subsidiary that is not owned by the parent company.
The treatment of goodwill and noncontrolling interest in business and nonprofit combinations varies depending on the nature of the combination.
The proper accounting treatment of goodwill and noncontrolling interest in business and nonprofit combinations includes the following:
Goodwill Business combinations:
If goodwill is acquired in a business combination, the company should initially recognize it at its acquisition cost. The goodwill amount is then tested for impairment at least annually. If the carrying amount of goodwill is less than the fair value, no impairment loss is recognized.
However, if the carrying amount of goodwill is more than the fair value, an impairment loss is recognized. Nonprofit combinations:
Nonprofit organizations are not allowed to recognize goodwill as an asset.
Noncontrolling interest Business combinations:
Noncontrolling interests should be recognized at their fair value at the acquisition date. Any difference between the fair value of noncontrolling interests and the acquisition cost should be recognized as goodwill.
Nonprofit combinations:
Nonprofit organizations may recognize noncontrolling interests in a nonprofit combination if the interests meet the definition of an asset or liability. The interests should be recognized at fair value if the fair value is reasonably determinable.
To know more about combination visit :
https://brainly.com/question/31586670
#SPJ11
1. Internal controls are designed to:
Select one:
a. prevent and detect fraud and error
b. all of the choices
c. safeguard assets against loss, misuse and theft
d. align managers and employees with th
b. each and every option. Internal controls are intended to achieve a variety of goals, such as preventing and identifying fraud and error, protecting assets from theft, loss, and misuse, and coordinating management and staff with the organization's objectives.
They offer a methodical strategy to reduce risks, guarantee the accuracy and dependability of financial reporting, foster operational efficiency, and adhere to relevant legal and regulatory requirements. Companies can improve accountability, integrity, and openness in their business processes by putting in place strong internal controls. This improves decision-making efficiency, resource protection, and overall organisational success.
learn more about management here:
https://brainly.com/question/32216947
#SPJ11
Ben Gordon, Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembling department to be $660, 000. The company produces 300, 000 wheels and 600, 000 seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly overhead should be allocated to wheels? $165, 000. $220, 000. $264, 000. $282, 856.
The amount of the assembly overhead that should be allocated to wheels is A) $165,000.
How the overhead allocation is determined:The amount of the assembly overhead to be allocated to wheels and seats should be determined as follows:
Estimated total overhead = $660,000
Production Units:
Wheels = 300,000
Seats = 600,000
Total Parts Used:
Wheels = 600,000 (300,000 x 2)
Seats = 1,800,000 (600,000 x 3)
Total parts = 2,400,000
Overhead allocation rate = $0.275 ($660,000/2,400,000)
Overhead Allocation:Wheels = $165,000 ($0.275 x 600,000)
Seats = $495,000 ($0.275 x 1,800,000)
Learn more about overhead allocation at https://brainly.com/question/26475885.
#SPJ4
Suppose that the initial equilibrium interest rate is \( 3 \% \). What is the equilibrium price of a \( \$ 100 \) bond
A bond is an investment instrument that represents a loan to the bond issuer by the bondholder. A bond’s price and interest rate are inversely related. The equilibrium interest rate is 3%.The initial equilibrium price is unknown.
The equilibrium price of a bond is inversely proportional to the interest rate, thus the equilibrium price is inverse to the interest rate. As a result, if the interest rate decreases, the bond's price increases, and vice versa.Let's suppose the initial equilibrium price is \$100. The bond's face value, also known as the par value, is $100.
The interest rate of the bond is $3. The equation for determining the present value of the bond is:PV = [C/(1 + r)] + [C/(1 + r)^2] +...+[C/(1 + r)^n] + [F/(1 + r)^n]Where C is the coupon payment, r is the discount rate, F is the face value of the bond, and n is the number of years until the bond's maturity.
The PV of a bond is $100, and the coupon payment is $3. The discount rate is 3 percent.
We will use the formula to calculate the bond's equilibrium price:PV = [C/(1 + r)] + [C/(1 + r)^2] +...+[C/(1 + r)^n] + [F/(1 + r)^n]PV = [3/(1 + 0.03)] + [3/(1 + 0.03)^2] + [3/(1 + 0.03)^3] + [100/(1 + 0.03)^3]PV = $100.0001Therefore, the equilibrium price of a bond will be $100.0001.
To know more about represents visit:
https://brainly.com/question/31291728
#SPJ11
El Oceano operates more than 770 casual dining restaurants in the United States, Mexico and Canada, employing more than 59,000 people. By developing a new business strategy to focus on its values and enhance its image, El Oceano established a new vision, mission, and goals for the company. The restaurant chain streamlined its menu with the highest quality seafood it could offer at mid-range prices; he swapped the tropical themes of his restaurants for a clean, crisp style, with white shirt and black pants uniforms for his employees; and added coastal imagery to its menu and website.
Executing the new mission and differentiation strategy required hiring fun people, people with a hospitality mindset who share the values of El Oceano.
Although El Oceano had not had any problems hiring restaurant managers, the company felt that the managers it hired did not always reflect El Oceano's strategy, vision, mission, and values. The company also realized that its previous job descriptions did not reflect the passion required of its employees to deliver on its new strategy.
Present what the specific standards are and what other details you would include in the job description and specification.
Present how you would go about developing a standard job description.
Present what method you would use to collect the information and which are the members of the organization from whom you would collect useful information about the requirements for the job presented.
Job description and specification for El Oceano Job Title: Restaurant Manager
Reports To: Regional Director Department: Operations Location: United States, Mexico and Canada Summary:
The Restaurant Manager is responsible for managing all restaurant operations, driving sales, maintaining excellent service quality, and ensuring compliance with all policies and procedures.
The Restaurant Manager is responsible for hiring, training, scheduling, and supervising staff, maintaining inventory levels, managing costs, and ensuring guest satisfaction. Essential Functions: Ensures a positive guest experience by maintaining excellent service standards.
Hires, trains, schedules, and supervises staff. Ensures compliance with all policies and procedures. Ensures that the restaurant is clean, organized, and well-maintained.
Conduct a job analysis: Conduct a job analysis to gather data about the job, including job duties, skills, and qualifications.
Create a job description template: Create a job description template that includes the job title, department, location, summary, essential functions, qualifications, and other details.
Review job descriptions: Review other job descriptions within the organization to ensure consistency and compliance with policies and procedures.
Collect information from stakeholders: Collect information from stakeholders, including the hiring manager, human resources, and other members of the organization.
Conduct interviews: Conduct interviews with stakeholders to gather information about the job and its requirements.
Observation: Observe employees performing the job to gather information about job duties and tasks.
Questionnaires: Administer questionnaires to employees to gather information about job requirements.
To Know more about Restaurant Manager
https://brainly.com/question/5894844
#SPJ11
The accounting principle that requires revenue to be recorded when goods or services are provided to customers and at an amount expected to be received from customers is the: Muliple Choice Expense recogniton (matching) principle Revenue rocognition principle. Time periad astumption Accruel reporting siricipie 12
Revenue Recognition Principle: Record revenue when goods/services are provided, regardless of payment timing. It ensures accurate financial reporting and aligns with accrual accounting.
The Revenue Recognition Principle is the accounting principle that fits with the above description. This rule states that regardless of when payment is received, revenue must be recognized when products or services are delivered to clients. It places a focus on recording income regardless of when cash is actually collected as long as it is earned and adequately observable. This rule makes ensuring that financial reports accurately reflect the economic significance of transactions and show how well a business is doing. It is a crucial part of accrual accounting, which tries to reconcile revenues with the costs that go along with them in order to offer a more accurate and timely picture of a company's financial situation.
Learn more about Revenue Recognition Principle here:
https://brainly.com/question/28500813
#SPJ11
the buyer will assume a loan of $250,000 at 6 percent. for a closing on june 6, what is the entry for interest on loan assumed?
Calculate the interest using the above formula to get the exact value.
After calculating the interest, you would record it as an expense on the buyer's side and an income on the seller's side.
The entry for interest on the assumed loan would depend on the interest accrual period specified in the loan agreement. Typically, interest accrues on a monthly basis.
To calculate the interest for the month of June, you would follow these steps:
1. Determine the daily interest rate: Divide the annual interest rate by 365 (or 360, depending on the loan agreement) to find the daily interest rate. In this case, we'll use 365 days.
Daily interest rate = 6% / 365 = 0.0164% (approximately)
2. Calculate the number of days from the closing date to the end of June. In this case, it would be 24 days (June has 30 days, and the closing is on June 6).
3. Multiply the daily interest rate by the loan amount and the number of days to calculate the interest for the month.
Interest = Daily interest rate * Loan amount * Number of days
= 0.0164% * $250,000 * 24
To know more about interest refer here:
brainly.com/question/30393144
#SPJ11
Suppose that the wages competitive frms must pay to their workers increase. Which of the following statements is TRUE? The firms' marginal costs will rise The market supply curve will shift left and price will rise In the iong run firms will be making zero economic profits All of the above are true
If the wages competitive firms must pay to their workers increase, the statement that is true is "All of the above are true" .Explanation :When the wages competitive firms must pay to their workers increase.
It will result in an increase in their marginal costs as well. This happens because with the increase in wages, firms have to pay more money per unit of output produced, which increases the cost of producing that unit and thus, raises the marginal cost of production.The market supply curve will shift left and the price will rise.
This is because when wages increase, firms have to pay more money per unit of output produced, which means that the cost of production has gone up. Thus, they will have to raise prices in order to maintain their profit margins.In the long run, firms will be making zero economic profits. This happens because when wages increase, the cost of production increases as well.
To know more about workers visit:
https://brainly.com/question/30203906
#SPJ11
the ceo of the company you analyzed informs you that some of the
executive managers are getting into conflicting situations trying
to agree if they should adopt organizational change or innovation.
wh
Organizational change and innovation are necessary in any business that wants to remain competitive and successful.
While they are distinct, the two ideas are closely related and can be implemented together. It's important to understand the differences between organizational change and innovation in order to make an informed decision about which to pursue.
Organizational change refers to the process of restructuring a company's internal operations, procedures, and systems. This could include anything from implementing new technologies, changing work processes, to hiring new employees or moving to a new location. The goal of organizational change is to improve efficiency and effectiveness, reduce costs, and increase profitability.
On the other hand, innovation refers to the process of developing new products, services, or business models. Innovation can be in the form of new products that meet customer needs, improvements to existing products, or the development of entirely new products. The goal of innovation is to stay ahead of the competition, increase revenue, and attract new customers.
If some of the executive managers are getting into conflicting situations trying to agree on whether to adopt organizational change or innovation, it's important to recognize that both are necessary for success. Organizational change can help create an environment that is more conducive to innovation, while innovation can lead to organizational change by introducing new ideas and technologies.
To Know more about increase profitability.
https://brainly.com/question/31865083
#SPJ11
Beauty Cosmetic produces hair tonic through two manufacturing processes; Mixing and Packaging. Production begins in the Mixing Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. The company uses a weighted average process costing system to accumulate production and cost data. On 1 January 2022, the beginning work in process inventory consist of 13,000 units, which were 40% complete. The company incurred a total cost of RM255,575 and RM220,800 of which were materials costs. Cost and production data for the month of January are as follows: Materials added Conversion costs incurred Units completed and transferred out in January Units in ending work in process on 31 January (70% complete)
RM309,450 RM176,800 26,250
9,000
Required (a) Compute the physical units, equivalent units of production for materials and conversion costs in the Mixing Department for the month of January. Show all your workings. (b) Compute the costs assigned to the ending work in process inventory on 31 January. Show all your workings. (c) Compute the costs accounted for the month of January. Show all your working.
Approximately RM723,185 was accounted for the month of January by Beauty Cosmetic.
A. Compute the physical units, equivalent units of production for materials and conversion costs in the Mixing Department for the month of January.
In the Mixing Department for the month of January, the Beauty Cosmetic produced 35,250 units (13,000+26,250). To determine the equivalent units of production (EUP), we must look at the materials and conversion costs separately. Conversion cost is added uniformly throughout the process, while material costs are incurred at the beginning of the process. Therefore, the EUP of materials and conversion costs would differ.
1. Calculation of EUP of Materials:
Units completed in the month of January= 26,250 units
Units in ending work in process inventory= 9,000 units
Total units= 35,250 units
Material cost added in January= RM309,450
Cost of beginning work in process inventory= RM220,800
Total Cost= RM530,250
EUP of materials = Units Completed + Units in ending work in process inventory * % completed
Material Cost = 26,250 + 9,000 * 70%
= 32,400 RM309,450
EUP of Material = 32,400 units
2. Calculation of EUP of Conversion Costs:
Conversion cost is added uniformly throughout the process. The total number of units processed in January was 35,250.
Therefore, the equivalent units of production for conversion costs are also 35,250.
B. Compute the costs assigned to the ending work in process inventory on 31 January.
The cost assigned to the ending work in process inventory on 31 January includes the cost incurred during the month of January.
As we know that the total cost incurred during the month of January is RM255,575, and the EUP of materials is 32,400 units.
Therefore, the cost per unit for materials is RM255,575 / 32,400 = RM7.88 (approx).
Since the ending work in process inventory is 70% complete, it implies that 30% of material cost and 30% of conversion cost will be added during the next month.
The cost assigned to the ending work in process inventory is:
RM7.88 x 9,000 x 70% = RM62,640 C. Compute the costs accounted for the month of January.
Total cost accounted for the month of January = RM530,250 + RM255,575 – RM62,640
= RM723,185
To know more about inventory visit:
https://brainly.com/question/31827018
#SPJ11