Answer:
Arthur's fixed costs are $952
Explanation:
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed costs/(Selling price per unit-Variable cost per unit)
Fixed costs = Break-even point in units x (Selling price per unit-Variable cost per unit)
In Arthur, Break-even point in units = $1,460/$23
Fixed costs = $1,460/$23 x ($23 - $8) = $952
The fixed cost for Arthur's crafts miniature chocolate dollhouses is $952.
What is the break-even point?The break-even point is regarded as the level at which production costs tend to be equal to the revenues for the product.
What is the computation of the break-even point?[tex]BE=\frac{FC}{SP-VC}[/tex]
Now, the fixed cost would be calculated as:
[tex]BE*(SP-VC)[/tex]
Therefore, the fixed cost would be:
[tex]\frac{1460}{23} * (23-8)\\=952[/tex]
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Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $160,400. The fair market value of the interest is $176,440. In a proportionate current distribution, the LLC distributes $32,080 cash and equipment with an adjusted basis of $80,200 and a fair market value of $120,300 to him on that date.
Required:
A) Franco's adjusted basis in the LLC interest after the distribution is $ __________ and his basis in the equipment received is $ _______.
Answer:
Adjusted basis = $48,120
Basis of equipment is given as $80,200
Explanation:
Given data:
Yearly basis of Franco = $160,400
market value of interest = $176,440
Distributed cash = $32,080
Adjusted basis = $80,200
Adjusted basis after distribution is calculated as
Adjusted basis = yearly basis - distributed cash - equipment adjusted basis
Adjusted basis = 160,400 - 32080 - 80,200
Adjusted basis = $48,120
in the question, basis of equipment is given as $80,200
Final answer:
Franco's adjusted basis in the LLC interest after receiving a distribution is $48,120, and his basis in the equipment received is $80,200. The non-taxable cash and equipment distribution reduces his original basis in the LLC interest, with steps clearly explaining the calculations.
Explanation:
When Franco receives a distribution from Dulera LLC, the distribution is non-taxable to the extent of his adjusted basis in the LLC interest. Initially, his adjusted basis is $160,400. The distribution consists of $32,080 cash and equipment with an adjusted basis to the LLC of $80,200 and a fair market value of $120,300.
First, reduce Franco's basis in the LLC by the amount of cash received ($32,080). So, the new basis in the LLC before accounting for the equipment is $160,400 - $32,080 = $128,320.
Since the fair market value of the equipment is not less than its adjusted basis in the hands of the LLC, Franco's basis in the equipment should be equal to the LLC's basis in the equipment, which is $80,200. After receiving the equipment, we reduce Franco's LLC interest basis by $80,200: $128,320 - $80,200 = $48,120.
Therefore, Franco's adjusted basis in the LLC interest after the distribution is $48,120, and his basis in the equipment received is $80,200.
One of the major challenges of supply chain management is forward buying. maintaining the visibility of inventory at acceptable levels at all times. building safety-stock inventory storage bins. pushing inventory back to vendors.
Answer:
The correct answer is letter "B": maintaining the visibility of inventory at acceptable levels at all times.
Explanation:
Inventory visibility refers to know exactly where the inventory is in the manufacturing process of the supply chain at all times. This is not an easy task since goods are constantly being moved from one place to the other in the supply chain. However, it is important to keep good control over the inflow and outflow of the inventory so the company's internal records can reflect the real flow of the goods.
One of the major challenges facing supply chain management is that of maintaining the visibility of inventory at acceptable levels at all times.
Supply chain management:
Is the management of goods in the production process from the raw material stage to the finished stage.Faces a challenge of knowing how much inventory is needed.Supply Chain management requires that a company know just how much materials are needed by the company (inventory visibility) in a given period and this can be difficult as production can pick up unexpected or drop the same way.
In conclusion, option b is correct.
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Willey Company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following: Factory manager’s salary $210,000 Factory utility cost 70,000 Factory supplies 20,000 Total overhead costs $300,000 Willey uses machine hours as the cost driver to allocate overhead costs. Budgeted machine hours for the products are as follows: Cups 300 Hours Tablecloths 750 Bottles 950 Total machine hours 2,000 Required: Allocate the budgeted overhead costs to the products.
Answer:
Cups = $45,000
Tablecloths = $1,12,500
Bottles = $1,42,500
Explanation:
Given that,
Factory manager’s salary = $210,000
Factory utility cost = 70,000
Factory supplies = 20,000
Overhead allocation rate :
= Budgeted Overhead ÷ Budgeted Base of allocation
= Total overhead costs ÷ Total machine hours
= $300,000 ÷ 2,000
= $150 per machine hour
Cups:
Allocated cost = Allocation rate × Weight of base
= $150 × 300
= $45,000
Tablecloths:
Allocated cost = Allocation rate × Weight of base
= $150 × 750
= $1,12,500
Bottles:
Allocated cost = Allocation rate × Weight of base
= $150 × 950
= $1,42,500
The allocated budgeted overhead costs to the products are: Plastic Cups: $45,000, Plastic Tablecloths: $112,500, and Plastic Bottles: $142,500.
To allocate the budgeted overhead costs to the products based on machine hours, we first need to determine the overhead rate per machine hour.
[tex]\[ \text{Overhead Rate per Machine Hour} = \frac{\text{Total Overhead Costs}}{\text{Total Budgeted Machine Hours}} \][/tex]
Plugging in the given values:
[tex]\[ \text{Overhead Rate per Machine Hour} = \frac{\$300,000}{2,000 \text{ hours}} \]\[ \text{Overhead Rate per Machine Hour} = \$150 \text{ per hour} \][/tex]
Now, we can allocate the overhead costs to each product using their respective budgeted machine hours:
1. Plastic Cups :
Overhead Costs for Cups = [tex]\text{Overhead Rate per Machine Hour} \times \text{Budgeted Machine Hours for Cups} \][/tex]
[tex]\[ \text{Overhead Costs for Cups} = \$150 \times 300 \text{ hours} = \$45,000 \][/tex]
2. Plastic Tablecloths :
Overhead Costs for Tablecloths = [tex]\text{Overhead Rate per Machine Hour} \times \text{Budgeted Machine Hours for Tablecloths} \][/tex]
[tex]\[ \text{Overhead Costs for Tablecloths} = \$150 \times 750 \text{ hours} = \$112,500 \][/tex]
3. Plastic Bottles :
Overhead Costs for Bottles = [tex]\text{Overhead Rate per Machine Hour} \times \text{Budgeted Machine Hours for Bottles} \][/tex]
[tex]\[ \text{Overhead Costs for Bottles} = \$150 \times 950 \text{ hours} = \$142,500 \][/tex]
Therefore, the allocated budgeted overhead costs to the products are as follows:
- Plastic Cups: $45,000
- Plastic Tablecloths: $112,500
- Plastic Bottles: $142,500
Managers who practice total quality management_______(A) invest more resources at the front end of the value chain in research and development and design to produce a superior product.(B) invest more resources in inspecting and repairing products once they are produced.(C) practice both A and B.(D) practice neither A nor B.
Answer:
The answer is A) invest more resources at the front end of the value chain in research and development and design to produce a superior product.
Explanation:
Total quality management is a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.
Corporation began 2018 with retained earnings of $ 240 million. Revenues during the year were $ 480 million, and expenses totaled $ 360 million. Canada declared dividends of $ 63 million. What was the company's ending balance of retained earnings? To answer this question, prepare Canada's statement of retained earnings for the year ended December 31, 2018, complete with its proper heading.
Answer:
Retained earnings balance for year ended 31st December,2018 is $297m.
Find details in the attached spreadsheet.
Explanation:
In order to compute the closing balance of retained earnings,the retained for the current year was first of all calculated by the formula below:
Retained earnings=Revenue-Expenses-Dividends declared.
Finally,the opening retained earnings of $240m was added to current year retained earnings of $57m gives $297m
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $157,452.98 $157,452.98 $157,452.98 $157,452.98 The appropriate discount rate for this project is 15%. The internal rate of return (IRR) for this project is closest to ________.
A.
13%
B.
16%
C.
21%
D.
24%
Answer:
C.
21%
Explanation:
As all cashflow are the same, we can solve by dividing the initial cost by annuity per year and look into the PV of a $1 annuity table the result of this quotient:
4000/157,452.98 = 2.540440962
We will find in the row of n = 4 that at 21% we obatin this answer so that is the IRR for the invetment project.
The IRR for the described business project is approximately 16%. The IRR, or Internal Rate of Return, is the discount rate that makes the Net Present Value (NPV) of a project equal to zero - i.e., the rate at which the present value of the project's expected future cash inflows equals the present value of its initial cash outflows.
Explanation:The Internal Rate of Return (IRR) is the discount rate at which the Net Present Value (NPV) of a project equals zero. This means it is the rate at which the present value of a project's expected future cash inflows equals the present value of its initial cash outflows.
Let's figure out the IRR with the given cash inflows and the initial investment:
Initial investment: $400,000Yearly cash inflows: $157,452.98 for 4 yearsDiscount rate: 15%We can calculate the Net Present Value (NPV) with a guess IRR around 15% and adjust it until the NPV equals as close to zero as possible. Using Excel or similar software, we find that the IRR is approximately 16%.
Thus, the correct answer is Option B: 16%.
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A generation ago, ketchup was an essential element of every American pantry and salsa was a relatively unknown product. The popularity of salsa exploded and has been attributed to trends in demographics such as population size, age, and ethnic mix as well as cultural trends such as attitudes toward obesity and consumer activism. What factor of PESTEL does this represent?
Answer:
SocialExplanation:
PESTLE analysis is a tool to identify those external factors which influences organization.
P: Political Factors influencing organization's performance.
E: Economical Factors creating hurdles in the way of the organizations.
S: Social Factors account for changed behavior of consumers towards organization.
T: Technological Factors playing it's role in influencing organizational performance.
L: Legal Factors accounting for legal barriers for the organizations.
E: Environmental Factors affecting companies but no one pays attention to it.
Salsa's increased popularity is represented by Social Factor: As belief is the most vital element which has effect on consumers decision making a company's growth or loss can be accounted for it. Not just belief the demographics and the attitude of people towards general issues can play their roles as well.As a flight attendant, Mary Ann is supposed to smile and act cheerful at all times on the flight; however, she feels tired and annoyed. The conflict between the emotion she feels and the emotion she is required to express is called emotional:
A) dissonance.
B) labor.
C) conflict.
D) incongruence.
Answer:
emotional dissonance.
Explanation:
Emotional dissonance -
It refers to the situation of mental status , where there is confusion between the emotions experienced by the employees and the emotion which is required to have for working in the organisation , is referred to as emotional dissonance .
The condition makes the employees very agitated and unhappy for the job , and is not able to enjoy their work .
Hence , from the given scenario of the question ,
The correct option is emotional dissonance .
"Kim wants to run for the U.S. Senate. Kim experimented with drugs in the 1960s, but has not used any drugs in more than 45 years. Kim decides the public does not need this information. What communication behavior is Kim engaging in?
Answer:
The communication behaviour that kim is engaged in is selective self-disclosure.
Explanation:
Self-disclosure is a process of communication by which one person reveals information about themselves to another. The information can be descriptive or evaluative, and can include thoughts, feelings, aspirations, goals, failures, successes, fears, and dreams, as well as one's likes, dislikes, and favorites.
Selective self-disclosure means self-disclosure but providing only that information which will create a positive image of one person on another.
Answer:
Keeping quiet
Explanation:
Kim decides the public does not need this information.
A city health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to the inspector. If the restaurant owner does not cooperate, he will not be able to open for business and the publicity will drive away his customers permanently. Faced with a threat of economic loss, the owner makes the payment.What type of fraud is this, and what controls can be implemented to prevent or detect the fraud?
Answer: ECONOMIC EXTORTION.
CONTROLS
IMPLEMENTATION OF CHECK AND BALANCE SYSTEM.
DISCOURAGING CASH PAYMENT TO REGULATORY BODIES.
ENACT DISCIPLINARY ACTIONS ON OFFENDERS.
Explanation:ECONOMIC EXTORTION is a fraudulent activity which involves the use of Threat,force or other means to forcefully and wrongfully collect money and other resources from others in the Population especially those in business. It is usually carried out by Government agents and other Regulatory bodies etc.
It can be controlled by putting a check and balance system whereby a check on the activities of the regulators are done by a set of inspectors or monitors.
It can also be controlled by putting in place systems to prevent the payment of cash to Government officials and other Regulatory bodies etc.
The kind of fraud that has been identified in this question is what is known as economic extortion.
How does this show economic extortion?
The inspector wants to be bribed by the owner of the restaurant. Failure to do so would cause him to implicate the owner on a crime that he is not guilty of.
The ways to prevent this type of frauds are:The implementation of certain check and balanceDiscouragement of payment to individual bodies.Disciplinary actions on anyone found guilty of such behaviorsRead more on fraud here:
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You decide to buy 1,300 shares of stock at a price of $36 and an initial margin of 65 percent.
What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 40 percent?
(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Do not include a minus sign. Omit the "%" sign in your response.)
Answer:
Maximum percentage decline in the stock will be 12.5%
Explanation:
It is given that number of shares which is bought is 1300 at a stock price of $36 an an initial margin of 65 %
Maintenance margin is given as 40%
Margin call price is equal to [tex]=stock\ price\times \frac{1-initial\ margin}{1-maintinance\ margin}[/tex]
So margin call price [tex]=36\times \frac{1-0.65}{1-0.40}=31.5[/tex]
So percentage decline [tex]=\frac{31.5}{36}\times 100=87.5[/tex] %
So maximum percentage decline in stock before you will receive a margin call is 100 -87.5 = 12.5%
So answer will be 12.5 %
Use the following information to compute profit margin for each separate company a through:a. Net income : $4,361 , Net sales : $44,500b. Net income : $97,706 , Net sales : $398,800c. Net income : $111,281 , Net sales : $257,000d. Net income : $65,646 , Net sales : $1,458,800e. Net income : $80,142 , Net sales : $435,500Which of the five companies is the most profitable according to the profit margin ratio? Interpret that company's profit margin ratio.
Answer:
Company c. is the most profitable according to the profit margin ratio.
Profit margin ratio describes that what percentage of sales is left after paying all the cost and expenses of the company. It shows the share of profit in the sales value.
Explanation:
a.
Net income : $4,361
Net sales : $44,500
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($4,361 / $44,500) x 100 = 9.8%
b.
Net income : $97,706
Net sales : $398,800
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($97,706 / $398,800) x 100 = 24.50%
c.
Net income : $111,281
Net sales : $257,000
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($111,281 / $257,000) x 100 = 43.30%
d.
Net income : $65,646
Net sales : $1,458,800
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($65,646 / $1,458,800) x 100 = 4.50%
e.
Net income : $80,142
Net sales : $435,500
Profit Margin Ratio = ( Net Income / Net sales ) x 100
Profit Margin Ratio = ($80,142 / $435,500) x 100 = 18.40%
To compute the profit margin, divide the net income by the net sales and multiply by 100. Company c is the most profitable with a profit margin of 43.28%.
Explanation:To compute the profit margin for each company, divide the net income by the net sales and multiply by 100. For company a, the profit margin is (4,361 / 44,500) * 100 = 9.79%. For company b, the profit margin is (97,706 / 398,800) * 100 = 24.50%. For company c, the profit margin is (111,281 / 257,000) * 100 = 43.28%. For company d, the profit margin is (65,646 / 1,458,800) * 100 = 4.50%. For company e, the profit margin is (80,142 / 435,500) * 100 = 18.40%.
Based on the profit margin ratio, company c is the most profitable with a profit margin of 43.28%. This means that for every dollar of net sales, company c is earning a profit of 43.28 cents.
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If you find a positive relationship between corruption and per capita GDP, how would you rationalize this outcome?
Answer:
The mistake could be as Transparency International publish the index "backwards" being zero highly corrup nation while 10 a nation with low level of corruption. This could make a person to see the relationship as positive but it isn't. a higher GDP is consistent with a a governement with low levels of corruption.
Higher GDP per capita countries has lower levels of corruptions. thus a higher value in the index.
Explanation:
A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate is 12% compounded annually and the general inflation rate is 6% per year, find the actual-and constant-dollar amounts (in time-0 dollars) of the 15th interest payment on the bond.
Answer:
a) actual dollar = $60
b) Constant dollar of the 15th payment = $38.710
Explanation:
Facts from the question:
The Face value of the bond = $1,000
Nominal Interest rate = 12% and it compounded annually
General inflation rate = 6%
The question: Determine the 15th interest payment on the bond.
Step 1: The coupon for the amount of semi annual payment is as follows:
Coupon= (Interest rate/ Number of compounding times in a year) x face value of the bond
= (0.12/2) x 1000
= $60 -= Actual dollar amount
Step 2: Determine the 15th payment and this will represent the middle of the 8th year or (7 1/2) year.
To calculate this=
Constant dollar amount of the 15th interest payment
= Actual dollar amount (above) / (1 + inflation rate)∧n
where n= the number of years = 7.5 years
= $60 / (1 + 0.06) ∧7.5
= $60/1.55
= $38.710
This means the constant dollar amount on that 15th payment = $38.710
Final answer:
The actual-dollar amount of the bond's 15th interest payment remains fixed at $45. To calculate time-0 dollars for actual and constant amounts, discount using the market rate of 12% for actual dollars and further adjust the result for inflation at 6% for constant dollars.
Explanation:
To calculate the actual-dollar amount and constant-dollar amount of the 15th interest payment on a 10-year $1,000 bond with a nominal rate of 9% compounded semi-annually when the market interest rate is 12% compounded annually and the general inflation rate is 6% per year, you'll need to address each part of the question separately.
First, for the actual-dollar amount with a 9% semi-annual rate, the interest payment every six months would be $1,000 × 0.09/2 = $45. The 15th interest payment does not change and remains $45 in actual dollars. To find the present value of this interest payment we would discount it back to time-0 using the market interest rate of 12% compounded annually assuming the payment is at the end of the seventh year:
Present value = $45 / (1 + 0.12)7
For the constant-dollar amount, you'd adjust for inflation using the formula:
Constant-dollar amount = Actual-dollar amount / (1 + 0.06)7
This accounts for the inflation rate affecting the value of money over time.
When you compose messages, you may use the active or passive voice to convey meaning. Most business messages use the active voice. Which of the following are instances when you would use the passive voice in a business message?
Check all that apply.
a. To de-emphasize negative news
b. To emphasize an action instead of the recipient of an action
c. To conceal the doer of an action
d. To emphasize the sender not the reader
Answer:
a. To de-emphasize negative news
b. To emphasize an action instead of the recipient of an action
c. To conceal the doer of an action
Explanation:
Passive voice is ideal when you want reduce impact of bad news, to emphasise on an action and not the recipient, and when concealing the doer of an action.
Usually passive voice is used when you want to draw a person's attention from the doer of an action.
In business writing, passive voice is typically used to de-emphasize negative news, emphasize an action over a person, and to avoid identifying who is responsible for an action. The correct answer is option a, b and c.
Explanation:In writing business messages, the use of active or passive voice impacts the tone and focus of the message. While active voice is generally preferred for its directness and clarity, there are situations where passive voice can be useful:
To de-emphasize negative news: If you need to deliver unfortunate news, such as denial of a request or announcement of a setback, you might use the passive voice to soften the blow. Example: 'Your application has been declined' instead of 'We have declined your application'.To emphasize an action instead of the recipient of an action: For instance, 'A decision has been made' (passive) rather than 'We made a decision' (active). In this case, the emphasis is on the decision, not on who made it.To conceal the doer of an action: In cases where it is necessary to avoid placing responsibility on a specific person or entity, passive voice can be used. For instance, 'Mistakes were made' instead of 'We made mistakes'.Learn more about business communication here:https://brainly.com/question/34215158
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A company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 voice lessons ($60 per lesson). As of January 31, the company has provided 8 voice lessons. What adjusting entry would be made at the end of January?
Explanation:
The adjusting journal entries are shown below:
On January 15
1. Cash A/c Dr $600 ($60 × 10 voice lessons)
To Unearned revenue A/c $600
(Being the cash is received)
On January 31
2. Unearned revenue A/c Dr $480 ($60 × 8 voice lessons)
To Service revenue A/c $480
(Being the unearned revenue is recorded)
Because resources are scarce, if society produces more of one commodity, it has to sacrifice some amount of another commodity. The amount sacrificed is A. a normative problem B. the out-of-pocket cost C. the opportunity cost D. the lost profit E. the total factor productivity
Answer:
C. the opportunity cost
Explanation:
The opportunity cost -
It refers to the amount of benefit received by the business , investors or an individual , during the process of selecting any alternative , is referred to as the opportunity cost .
These cost can be ignored very easily , in case not seen properly .
The opportunity cost can very well be used to any important and educational decisions for the betterment of the company or firm.
Hence , from the given information of the question,
The correct option is C. the opportunity cost .
Answer:
The correct answer is letter "C": the opportunity cost.
Explanation:
The opportunity cost represents the return of the option chosen compared to the return that could have provided the option forgone. Opportunity cost can also be described as the return of the best next option available that was left behind after choosing another option. It is what was "left on the table".
Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $0.50 per banana. The implicit costs per week are $200,000. Which of the following statements is true?a. Chiquita makes an accounting profit of $250,000 b. Chiquita makes an accounting profit of $50,000. c. Chiquita makes an economic profit of $250,000. d. Chiquita makes an economic profit of $450,000. e. More than one answer is correct
Answer:
Option (A) is correct.
Explanation:
Given that,
Implicit costs per week = $200,000
Average explicit cost per banana = $0.25 per banana
Per week bananas sold = 1 million
Explicit cost = Average explicit cost per banana × No. of banana sold
= $0.25 × 1,000,000
= $250,000
Total revenue = No. of banana sold × Selling price of each banana
= 1,000,000 × $0.50
= $500,000
Accounting profit = Total revenue - Explicit cost
= $500,000 - $250,000
= $250,000
Economic profit:
= Total revenue - Explicit cost - Implicit costs
= $500,000 - $250,000 - $200,000
= $50,000
Chiquita's accounting profit is $250,000 which is calculated by subtracting explicit costs from total revenue. Its economic profit is $50,000, calculated by subtracting both explicit and implicit costs from the total revenue. Therefore, the correct statements are a and b.
Explanation:To determine the accounting profit and economic profit of Chiquita's banana production we need to use the provided numbers. The accounting profit is calculated by subtracting the explicit costs from the total revenues. With 1 million bananas sold at $0.50 each, the total revenue would be $500,000. The explicit costs are $0.25 per banana for 1 million bananas, which results in $250,000. Thus, the accounting profit is $500,000 (total revenues) - $250,000 (explicit costs) = $250,000.
To calculate the economic profit, we subtract both explicit and implicit costs from the total revenue. The implicit costs are given as $200,000 per week. Using the accounting profit of $250,000, the economic profit is calculated as $250,000 (accounting profit) - $200,000 (implicit costs) = $50,000. Hence, the correct statements are that Chiquita makes an accounting profit of $250,000 and an economic profit of $50,000.
At year end, CurlZ Inc.'s inventory consists of 100 bottles of CleanZ with a cost of $1, and a selling price of $0.80 per bottle. It also has 100 boxes of DyeZ with a cost of $10, and a selling price of $11 per box. Using the lower of cost and net realizable value method, the year-end Inventory balance should include which of the following amounts?
Answer:
$1,080
Explanation:
The inventory of Curlz Inc. shall be valued at lower of cost and net realizable value.
In case of CleanZ, since the net realizable value is lower than the cost, therefore the inventory of CleanZ shall be placed at net realizable value which is $0.80 per bottle.
In case of DyeZ , since the net realizable value is higher than the cost, therefore the inventory of DyeZ shall be valued at cost which is $10 per bottle.
Value of CleanZ=100*0.80 $80
Value of DyeZ=100*10 $1,000
Total value of inventory $1,080
Which of the following is an example of an annuity?
(A) An investment in a certificate of deposit (CD)
(B) A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time
Answer: Option ( B ). A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time.
Explanation: An annuity is a contract between an individual and an insurance company in which you make a lump sum payment or series of payments and in return receive regular disbursements at some point in the future.it is a series of payments made at intervals. It can also be defined as a contract between you and an insurance company that requires the insurer to make installmental payments to you or come as one lump sum.
Annuities are bought by people who intend to “insure” their retirement and to receive periodic payments once they no longer receive a salary. The two phases to annuities are the accumulation phase and the payout phase.
The example of an annuity between the given options is (B) A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time. A certificate of deposit (CD) is not an annuity, it is a fixed-term financial asset that returns the original investment plus accrued interest at maturity.
Explanation:To answer which of the following is an example of an annuity, let's first define what an annuity is. An annuity is a financial product that guarantees to pay out a fixed stream of payments to an individual, typically after retirement. These payments continue for the life of the annuitant or for a specified period of time.
A certificate of deposit (CD) is not an annuity. It is an investment tool where you deposit a lump-sum amount for a fixed period of time and receive interest in return. The principal amount, along with the accrued interest, is returned back to you upon maturity.
Therefore, among the options given:
(A) An investment in a certificate of deposit (CD) is not an example of an annuity because a CD offers a return on a lump-sum deposit after its maturity, not a series of equal payments.(B) A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time is, in fact, an example of an annuity. This is because it involves making equal, steady payments over a certain period, which is characteristic of an annuity.Hence, the correct answer to which of the following is an example of an annuity is (B) A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time.
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Which decisional role involves the manager in resolving conflicts? a. Disturbance handler b. Resource allocator c. Leader d. Liaison e. Negotiator
Answer:
The correct answer is letter "A": Disturbance handler.
Explanation:
One of the many roles managers have is being a disturbance handler. This role implies having the manager as a mediator of a conflict in which the manager will have to collect the versions of the parties involved a come up with a solution for the problem. If corrective actions must be taken, the manager should proceed accordingly.
The managerial role responsible for resolving conflicts is the Disturbance Handler. The Negotiator role also includes dispute resolution, but typically in external contexts.
Explanation:In the context of management's decisional roles as defined by Henry Mintzberg, resolving conflicts falls under the role of the Disturbance Handler. The Disturbance Handler role involves taking corrective action during disputes or crises; resolving conflicts is a part of this. Negotiator also has some relevancy, as managers as negotiators help resolve disputes between different parties, but typically, these are external transactional disputes, not internal conflicts.
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Lucky Louie's bank requires a minimum balance at all times of $1500 in order to provide free checking services. The bank pays .5% per annum interest on the minimum balance. If you do not maintain the balance, account service fees are $4 per month. Assuming Lucky can earn 2.5% on his money not sitting at the bank, what is his net benefit to maintaining the minimum balance?
Answer:
Net benefit $18
Explanation:
Saivings from fees:
$4 fee x 12 months = $ 48
Interst 1,500 x 0.005 = $ 7.5
Opportunity cost:
1,500 x 0.025 = ( $ 37.5 )
Net benefit: 18.00
Fro mthe saving of fees and interest we should subtract the opprtunity cost, which represen the gain from putting the cash in the best interest alternative. This makes a more realistic approach than just the accounting gain.
The total return that an investor earns on any investment consists of the dollar return that the investment pays plus the _____ associated with the investment. a. taxes b. capital gains c. production opportunities d. risk
Answer:
The correct option is B
Explanation:
Capital gain is the term which is defined as the increase or rise in the capital asset value,that offer the higher worth than the purchase price of the asset. And the gain will not be realized until the asset is sold. It is linked with the investment which the investor earned or gained through the investment.
So, the aggregate return which the investor earn on any of the investment comprise of the dollar return plus the capital gain which is linked with the investment.
The single-step income statement emphasizesa .the gross profit figure.b. total revenues and total expenses.c. extraordinary items and accounting changes more than these are emphasized in the multiple-step income statement.d. the various components of income from continuing operations.
Answer:
b. total revenues and total expenses
Explanation:
A single step income statement -
It refers to the financial statement , which contains all the costs of the goods sold in a single column , is referred to as a single step income statement .
It helps to maintain the record for better understanding .
All the expenses and the revenues are correctly recorded and added , in order to be the best results .
Hence , from the given question ,
The correct option is b.
You are thinking about buying a piece of art that costs $ 20 comma 000. The art dealer is proposing the following deal: He will lend you the money, and you will repay the loan by making the same payment every two years for the next 30 years (i.e., a total of 15 payments). If the interest rate is 7 % per year, how much will you have to pay every two years?
To determine the payment amount to be made every two years for a 30-year loan with 7% interest, use the future value of an ordinary annuity formula.
Explanation:To determine the amount that needs to be repaid every two years, we can use the formula for the future value of an ordinary annuity:
FV = PMT*((1+r)^n - 1)/r
FV is the future value of the loanPMT is the payment amount to be made every two yearsr is the interest rate per period (7% per year, so 3.5% per two years)n is the number of payment periods (15 payments over 30 years)Plugging in the values, we get:
20000 = PMT*((1+0.035)^15 - 1)/0.035
Solving for PMT gives:
PMT = 20000*0.035/((1+0.035)^15 - 1)
Using a calculator, we find that the payment amount to be made every two years is approximately $1,324.46.
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1. Identify each account as an asset (A), liability (L), or equity (E).
2. Identify whether the account is increased with a debit (DR) or credit (CR).
3. Identify whether the normal balance is a debit (DR) or credit (CR)(a) Interest Revenue (b) Accounts Payable (c) Calhoun, Capital (d) Office Supplies (e) Advertising Expense (f) Unearned Revenue (g) Prepaid Rent
Answer:
Interest Revenue: Income, Credit balance, credit increases the balance, debit reduces such balance
Accounts Payable: Liability, Credit balance, credit increases the balance, debit reduces such balance
Calhoun Capital: Equity, Credit balance, Credit increases the balance, debit reduces such balance
Office Supplies: Asset, Debit balance, Debit increases the balance, credit reduce such balance
Advertising Expense: Expense, Debit balance, debit increases the balance, credit reduces such balance
Unearned Revenue: Liability, Credit balance, credit increases the balance, debit reduces such balance
Prepaid Rent: Asset, Debit balance, Debit increases the balance, credit reduces such balance
A firm decides to provide support services for its products for which its customers will pay extra. These services are not offered by its competitors and the firm does no incur commensurate supplier opportunity costs when it offers the services. This firm has achieved which of the following?
A)competitive advantage
B)added value
C) competitive advantage and added value
D) opportunity
B) Added value
Explanation:
Added value - It is an improvement to the product or service making it more worthwhile.
Competitive advantage makes the product or service more desirable than other competitors.
In this scenario, there is no competition of the services as yet, but definitely has an added value by improving the services.
This firm has achieved competitive advantage and added value
Explanation:
Through adding value to their products and services or can their own prices more than their competition in the industry, a business has a competitive advantage.
The competitive advantage is generated through the use of capital and ability to achieve indeed a lower cost level or a distinct commodity.
The preference of low cost or separation positions a company in its sector. This judgement is a key element of the competitive strategy of the organization.
Ram Company's after-tax net income was $120. Their interest paid was $50. Assuming the corporate tax is 40%, what is Ram Company's interest coverage ratio?
Answer:
5
Explanation:
The formula to compute the interest coverage ratio is shown below:
= (Earning before tax + interest expense) ÷ (interest expense)
where,
Earning before tax equal to
= Net income ÷ (1 - tax rate)
= $120 ÷ (1 - 0.40)
= $200
And interest expense is $50
So, the interest coverage ratio equal to
= ($200 + $50) ÷ ($50)
= 5
Suppose Natasha currently makes $50,000 per year working as a manager at a cable TV company. She then develops two possible entrepreneurial business opportunities. In one, she will quit her job to start an organic soap company. In the other, she will try to develop an Internet-based competitor to the local cable company. For the soap-making opportunity, she anticipates annual revenue of $465,000 and costs for the necessary land, labor, and capital of $395,000 per year. For the Internet opportunity, she anticipates costs for land, labor, and capital of $3,250,000 per year as compared to revenues of $3,275,000 per year. (a) Should she quit her current job to become an entrepreneur? (b) If she does quit her current job, which opportunity would she pursue?
Answer:
It should quite the job and do the organic soap business as it provides an economic gain which consider the implicit cost.
Explanation:
alternative (I)
revenues of 465,000
expenses (395,000)
net income 70,000
opportunity cost
wages from TV company (50,000)
net economic gain 20,000
alternative (II)
revenues 3,250,000
expenses 3,275,000
net loss (25,000)
opportunity cost
wages from TV company (50,000)
net economic loss (70,000)
Common ownership interest in a business, sharing profits (or losses) of a business, and the right to participate in managing the operations of the business are characteristics of a(n):A) corporation.B) sole proprietorship.C) partnership.D) S-corporation.
Answer:
C) partnership
Explanation:
In partnership the partner share the profit / loss of a business and can also participate in the operation of the business. Corporation is is a form of large company they work for the common interest and sole proprietorship does not share the profit or operations of the company with others.