Answer:
a) Only hiring workers who have earned good grades in college.
Explanation:
The Marginal Productivity theory defines as change in revenue of a business resulting due to employment of one additional labor.
This theory has many assumptions that perfect competition prevails in the market. All workers have same abilities and skills. Productivity of labors can be measured accurately. Every unit is homogeneous etc.
To overcome this information problem a firm should hire only workers who have earn good grades in college. It assumes that these workers will have greater skills and will contribute in revenue contribution to the organization.
Building Big Box is a home improvement store based in Kansas and has been responsible for introducing some of the most innovative new products for the home improvement marketing in the Mid-West region.
The Johnson family founded the company fifty years ago, but they now realize they needed to convert the business into a corporation and establish functional areas within the company to handle various aspects of operations.
The company is now considering expanding operations by building another facility in Canada.
The Board of Directors has approved this move.
Which functional area will be responsible for securing the necessary funding for the expansion?
a. Marketing
b. Accounting
c. Finance
Answer:
The correct answer is letter "C": Finance.
Explanation:
A company's Financial Department is in charge of controlling the inflows and outflows of cash within an association. Finance is responsible for approving budgets based on the information provided by the accounting department. Those two divisions are in charge of reporting the financial statements of the firm.
For the current year, Bubbles Office Supply had earned $600 of interest on investments. As of December 31, none of this interest had been received or recorded. Demonstrate the required half of the adjusting entry by choosing the correct statement below.
Answer:
Debit interest receivable account by $600.
Explanation:
According to accrual method of accounting, the interest of $600 as at December 31 has already been earned even if it had not been received. We must record it for the period it was earned.
The entry is passed into Interest Receivable account as a debit. Interest Receivable account is a current asset account. When asset accounts increase you debit, and when the reduce you credit.
So in this case the balance in Interest Receivable increases and we debit $600.
Bubbles Office Supply had earned a $600 interest on investments that is not yet received or recorded. The correct adjusting entry is to debit the Interest Receivable account (increase it) by $600 and credit the Interest Income account (increase it) by $600.
Explanation:Here, Bubbles Office Supply has earned $600 of interest that has not yet been received or recorded. This indicates that the company earned this amount in the current year itself, but it is actually going to receive it in the next year. To fix this in books of accounts, we need to create an adjusting entry. The required adjustment entry here would be to debit the Interest Receivable account and credit the Interest Income account. So, the journal entry will be as follows: Debit Interest Receivable $600 and Credit Interest Income $600.
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The Nobel Prize-winning economist Paul Samuelson argued that contrary to the standard interpretation, in certain circumstances the theory of comparative advantage predicts that a rich country might actually be worse off by switching to a free trade regime with a poor nation.
a. True.
b. False.
Answer:
True
Explanation:
Paul Samuelson was an economist and he was the first American to win the Nobel Prize in Economic science. The journey into coming up with comparative advantage started when Stanislaw Ulam challenged him to name a proposition of social science is true and at the same time non-trivial and this led to the Paul's developing comparative advantage years later.
Paul Samuelson however, also argued that while the standard interpretation says a country is better off when it is rich in trading with a poor nation, it is also true that there are circumstances that might leave a rich country worse off when it switches to a free trade rich with a poor nation.
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit $ 60 Direct labor per unit $ 22 Variable overhead per unit $ 8 Fixed overhead for the year $ 528,000 Selling and administrative costs Variable selling and administrative cost per unit $ 11 Fixed selling and administrative cost per year $ 105,000
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The company produced 44,000 units
Sold 36,000 units for $140 per unit.
Manufacturing costs:
Direct materials per unit $ 60
Direct labor per unit $ 22
Variable overhead per unit $ 8
The fixed overhead for the year $ 528,000
Selling and administrative costs:
Variable selling and administrative cost per unit $ 11
Fixed selling and administrative cost per year $ 105,000
I will assume that the required answer is an income statement using absorption and variable costing:
Absorption costing:
It includes the fixed overhead in the manufactured costs:
Unitary cost= direct material + direct labor + unitary variable overhead + unitary fixed overhead
Unitary cost= 60 + 22 + 8 + (528,000/44,000)= $102
Income statement:
Sales= 36,000*140= 5,040,000
COGS= (36,000*102)= (3,672,000)
Gross profit= 1,368,000
Variable selling and administrative= (11*36,000)= (396,000)
Fixed selling and administrative= (105,000)
Net operating income= 867,000
Variable costing:
Under variable cost, fixed overhead is not included in manufacturing costs.
Unitary cost= direct material + direct labor + variable overhead
Unitay cost= 90
Income statement:
Sales= 5,040,000
Variable cost= (90*36,000)= (3,240,000)
Contribution margin= 1,800,000
Fixed overhead= (528,000)
Variable selling and administrative= (11*36,000)= (396,000)
Fixed selling and administrative= (105,000)
Net operating income= $771,000
John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The Claussens anticipate that the store will generate cash flows of $70,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $400,000. The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the 20-year life of the mortgage. Accordingly, the Claussens’ desired rate of return on this investment varies as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Years 1-5: 7%
Years 6-10: 10%
Years 11-20: 12%
Required: What is the maximum amount the Claussens should pay John Duggan for the hardware store?
Answer:
Explanation:
Calculate maximum that should pay:
Compute present value of cash flows from the store, year 1 to 5 :
Annual cash flows are $70,000
Desired rate of return on investment for 1 to 5 years is 7%
Number of years is 5
Present value of cash flows generated during 1 to 5 years =
= $287,013.82
Compute present value of cash flows from the store for years 6 to 10
Annual cash flows are $70,000
Desired rate of return on investment for 6 to 10 years is 10%
Desired rate of return on investment for 1 to 5 years is 7%
Number of years is 5
Present value of cash flows generated during 6 to 10 years = annual cash flows x PVIFA (10%,5) x PVIF (7%,5)
= $70,000 x 3.79079 x 0.7130 = $189,198.33
Compute present value of cash flows from the store for years 11 o 20
Annual cash flows are $70,000
Desired rate of return on investment for 11 to 20 years is 12%
Desired rate of return on investment for 6 to 10 years is 10%
Desired rate of return on investment for 1 to 5 years is 7%
Number of years is 10
Present value of cash flows generated during 11 to 20 years = [annual cash flows x PVIFA (12%,10)] x PVIF (10%,5) x PVIF (7%,5)
= $70,000 x 5.65022 x 0.62092 x 0.7130 = $175,100.98
Calculate present value of estimated sale amount to be received for sale of store
Present value of estimted sale amount to be received = [Estimated sale amount x PVIF (12%,10)] x PVIF (10%,5) x PVIF (7%,5)
=$400,000 x 0.32197 x 0.62092 x 0.7130=
=$57,016.50
Calculate total maximum amount that should be paid
Particulars Amount ($)
Present value of cash flows during 1 to 5 years $287,013.82
Present value of cash flows during 6 to 10 years $189,198.33
Present value of cash flows during 11 to 20 years $175,100.98
Present value of estimated sale value $57,016.50
Maximum amount that C should pay to JD for store $708,329.63
Therefore, Maximum amount that should be paid $708,329.63
On July 1, 2016, Sheffield Corp. issued 9% bonds in the face amount of $11100000, which mature on July 1, 2022, The bonds were issued for $9720000 to yield 10%, resulting in a bond discount of $1380000. Sheffield uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30 2018, Sheffleld's unamortized bond dlscount should be a. $1436700 b. $1466300 c. $1454300 d. $1424300
Answer:
Explanation:
Discount bonds are issued on discounted price of their face value
Here discount = 11100000-9720000
= 1380000
on 1/07/2016
cash outflow or book value of bond
= 9720000
on 30/06/2017
interest paid = 999000
yield expected = 972000 ( 10% of issue price )
interest amortized
= 999000-972000 = 27000
book value = 9720000 + 27000
= 9747000
on 30/06/2018
interest paid = 999000
yield expected = 974700 ( 10% of book value )
interest amortized
= 999000-974700 = 24300
value amortized = 24300 + 27000 = 51300
book value = 9747000 + 24300
= 9771300
Amount unamortized
1380000 - ( 51300 )
= 1328700
True or False: Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)
"Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trade consumption bundles" is FALSE.
Option: B
Explanation:
Specialization refers to countries' propensity to focus in certain items they exchange for other commodities, rather than to manufacture all the consumer goods on their own. As the PPF production possibilities frontier displays that production is impractical, Freedonia and Lamponia had to engage in international trade.
Both countries are able to consume the goods they produce.When a country is skilled in manufacturing a good, it can manufacture this good at a lower cost of opportunity than its trading nation. For this comparative advantage, both countries benefit from competing and trading with one another.
Waterway Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $162,900. The company estimated that the machine would have a salvage value of $18,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31.
Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.)
(a) Straight-line depreciation for 2020
(b) Activity method for 2020, assuming that machine usage was 780 hours
(c) Sum-of-the-years'-digits for 2021
(d) Double-declining-balance for 2021
Answer:
(a) Straight Line Depreciation for 2020 $ 28,800
(b) Activity Method of Depreciation for 2020 $ 5,616
(c) Sum of the years Depreciation for 2021 $ 38,400
(d) Double declining balance depreciation for 2021 $ 39,096
Explanation:
Computation for requirement (a) - Straight Line Depreciation for 2020
Straight line method considers depreciation on adepreciable base after considering a salvage value and spreads it evenly over the life of the asset.
Cost of machine $ 162,900
Estimated Salvage Value $ 18.900
Depreciable Basis $ 144,000
Estimated Life 5 years
Straight Line Depreciation for 2020 = $ 144,000/5 = $ 28,800
Computation for requirement (b) - Activity Method Depreciation for 2020
Activity method depreciation considers depreciation over the estimated usage of the asset and multiplies by the usage in a given period. The depreciable basis is after considering the salvage value.
Depreciable basis - same as SL depreciation $ 144,000
Usage Life of the machine 20,000 hours
Machine usage for 2020 780 hours
Depreciation on a per hour basis $ 144,000/ 20,000 = $ 7.2 per hour
Depreciation for 2020 on a usage of 780 hours = 780 * $7.20 = $ 5,616
Computation for requirement (c) - Sum of the years digits for 2021
In a sum of the years depreciation method, the sum of the life of the assets are added and considered as a depreciable life. The salvage value is considered in determining the depreciable basis.
Depreciable basis - same as SL depreciation $ 144,000
Estimated life of the asset 5 years
Sum of the years, (5+4+3+2+1) 15
so the first year depreciation shall be 5/15, the next year 4/15 and so on,
We need to compute the depreciation for 2021 which is the second year, so the formula shall be:
4/15 (remaining useful life) * $ 144,000(depreciable basis) = $ 38,400
Computation for requirement (d) - Double declining balance for 2021
In a double declining balance method the depreciation rate (%) is double that of a straight line method. The subsequent years depreciation is on a reduced balance. No salvage value is considered
The first year's depreciation is calculated
Cost of Machine* (2 * Straight Line depreciation %)
$ 162,900* (2 * 20 %) so the depreciation for 2020 would be
$ 162,900 * 40 % = $ 65,160.
For 2021, which is the requirement in our question, the cost would be the reduced value.
Original Cost of the machine $ 162,900
Double Declining balance Depreciation 2020 $ 65,160
Declining Cost basis for 2021 depreciation $ 97,740
Depreciation @ 40 % $ 39,096
Final answer:
The depreciation expense for Waterway Corporation's new machine is calculated differently according to each method: straight-line gives $12,000 for 2020, activity method gives $5,616 for 2020, sum-of-the-years'-digits gives $38,400 for 2021, and double-declining-balance gives $60,360 for 2021.
Explanation:
The calculation of depreciation expense for Waterway Corporation's new machine involves different methodologies. For straight-line depreciation for 2020, we subtract the salvage value from the cost of the machine and divide by the useful life. As the machine was purchased on August 1, 2020, and the year-end is December 31, we calculate depreciation for five months of use. The activity method is based on actual machine usage, here it is calculated by dividing the total depreciable cost by estimated working hours and multiplying by actual hours used. For the sum-of-the-years'-digits method for 2021, we use the useful life of the machine and its respective year as fractions of the sum of the years' digits and apply this to the depreciable cost. The double-declining-balance method for 2021 involves doubling the straight-line depreciation rate and applying it to the book value at the beginning of the year.
Straight-line depreciation for 2020Imagine you are the owner of a natural gas company. You can either extract as much of the resource as fast as possible or delay extraction until a future time. Projections indicate that the price of natural gas is expected to fall in the future. What would you do in the present?
As the owner of a natural gas company, with the expected fall of gas prices in the future, it would be economically beneficial to extract and sell as much gas as possible at the current higher price. However, other factors such as production cost, environmental impacts, future technical advancements, and regulations should also be considered.
Explanation:As the owner of a natural gas company, if the projection indicates that the price of natural gas is expected to fall in the future, it would be economically optimal to extract and sell as much of the natural gas as soon as possible at the current higher price. This is an application of the law of supply and demand. The supply is the amount of natural gas you have available to sell, and demand is driven by the market price.
However, your decision should also take into account other factors such as the costs associated with production and extraction, the environmental impact, potential technological advances that could affect the future value of natural gas, and any regulations that may affect your business.
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A loan is being repaid in five annual payments. The first two payments are $200. The third and fourth payments are $400. The final payment is $500. The annual effective interest rate is 6%. Determine the interest portion of the third payment.
Final answer:
To determine the interest portion of the third payment, subtract the interest paid for the first two payments and the fourth payment from the total interest paid.
Explanation:
To determine the interest portion of the third payment, we need to first calculate the total interest paid for the entire loan. We know that the first two payments are $200 each, the third and fourth payments are $400 each, and the final payment is $500. We can find the total loan amount by adding up these payments: $200 + $200 + $400 + $400 + $500 = $1700.
Next, we can find the total interest paid by subtracting the loan amount from the sum of the payments: Total interest = Loan amount - Total payments = $5000 - $1700 = $3300
The interest portion of the third payment can be found by subtracting the interest paid for the first two payments and the fourth payment from the total interest paid: Interest portion of the third payment = Total interest - (Interest paid for first two payments + Interest paid for fourth payment)
When a job order costing system is used, actual manufacturing overhead costs are debited to ________. A. the Manufacturing Overhead account B. the Cost of Goods Sold account C. the WorkminusInminusProcess Inventory account D. expense accounts
Answer:
A. The manufacturing Overhead Account
Explanation:
Job order costing is a part of cost accounting system which is used when specific job is being performed. In Job order costing first an estimate for overheads is taken. Then it is compared with actual overheads. Under applied or over applied overheads are then debited or credited to Cost of goods sold account.
Answer:
The correct answer is letter "A": the Manufacturing Overhead account.
Explanation:
The Manufacturing Overhead account is a temporary account where the overhead costs currently being incurred are debited. Those costs proceed from the Work-In-Progress (WIP) account. As soon as there is a final good, the costs are credited to the WIP account and debited to the Finished Goods of Inventory and when those units are sold, the costs are debited to the Cost of Goods Sold account.
The seller of a dry cleaning business has agreed not to open another dry cleaning business for two years within a one-mile radius of the sold business. Such an agreement: A. is void as against public policy. B. is void as usurious. C. is void as unconscionable. D. is valid and enforceable.
Answer:
Option "D" is the correct answer to the following statement.
is valid and enforceable
Explanation:
A valid contract is a formal or oral relation for the supply of goods or services among two parties.
An enforceable contract would be any civil contract that bears legal support behind it. It is a binding agreement that will enforce among two parties.
In the following situation, such an agreement is valid with time and geographical information.
According to your text, credit unions differ from commercial banks and savings institutions because they a. are larger than commercial banks and savings institutions. b. restrict their business to credit union members. c. are profit-oriented.
Answer:
b. restrict their business to credit union members.
Explanation:
Credit Union are non profit making organisations hat primarily cater for the needs of their members. They are not commercially owned but customer owned and most organisations from churches to schools and even communities have credit unions. Credit Unions basically make services such as savings, loans among other financial options available to their members.
Commercial Banks on the other hand are primarily commercial profit making institutions and they offer banking services from loans and savings among others to a large rang of customers not restricted to members of a particular group. The goal of Commercial banks is customer service.
As such the main difference between the two types of organisations is that Credit unions restrict their business to their members while banks do not.
The demand for milk will lower because the cookies price increased. Because cookies are a complement to the milk their sales are dependent on each other. As price of cookies increases the lees cookies are:________.
Answer:
The answer is less cookies are demand.
Explanation:
The law of demand states that the higher the price of a good and service, the lower the quantity demanded for that goods or services.
The law above applies to normal goods, the goods that their own price elasticity of demand are elastic(greater than 1.0), also substitution effect.
Cookies is a normal good and that was why less of it were demanded and less of milk too will be demanded because they are complementary goods. Complementary goods are consumed together as a pair.
An entity had cash receipts from sales of US $175,000 during Year 2. At the end of Year 1, the company had US $40,000 of deferred revenue, all of which was earned in Year 2. The company’s sales revenue for Year 2 would be:__________
Answer:
US $135,000
Explanation:
In accrual accounting, amount collected in advance are recognized as a liability until the revenue is earned.
Entries are posted as a debit to cash account and the corresponding credit to the deferred revenue account upon collection of cash.
Given that the entity had cash receipts from sales of US $175,000 during Year 2 but had a deferred revenue of US $40,000 as at the end of year 1, this means that the US $40,000 was part of the US $175,000 settled by the customer in year 2
Therefore, the company’s sales revenue for Year 2 would be
= US $175,000 - US $40,000
= US $135,000
A firm that would like to develop a global supply chain would: Manufacture components or supplies in other countries. Sell raw materials, components or supplies produced at home abroad. Purchase raw materials, components, or supplies from sellers in other countries. Check products that were manufactured abroad for defects in their home country.
Answer:
The correct answer is letter "C": Purchase raw materials, components, or supplies from sellers in other countries.
Explanation:
The global economy has allowed companies to handle their operations with domestic and international resources. Most organizations purchase raw materials or the components necessary for their production process abroad to minimize costs and maximize profits. In some other cases, the manufacturing process is taken to other countries where the labor force is cheaper to reduce the company's expenditures even more.
What is the present value of a $360 payment in one year when the discount rate is 6 percent? (Round your answer to 2 decimal places.)
Answer:
$339.62
Explanation:
Find the attached for the explanation
3. Working with Numbers and Graphs Q3 Suppose that a small business sells 975 units of goods per month at $30 per unit. The unit cost of producing 975 units of goods is $15. The business has implicit costs of $3,400. The economic profit of this business equals $_________.
Answer:
economic profit = $11225
Explanation:
given data
sells = 975 units
cost = $30 per unit
cost of producing goods = $15
implicit costs = $3,400
solution
total revenue = 975 × 30 = $29250
and total cost = 975 × 15 = $14625
so here Total profit will be as
Total profit = $29250 - $14625 = $14625
so here economic profit will be
economic profit = Total profit - implicit costs
economic profit = $14625 - $3,400
economic profit = $11225
Final answer:
The economic profit of the business is calculated by subtracting both explicit and implicit costs from total revenues, which in this case, equals $11,225.
Explanation:
The economic profit for a business is calculated by subtracting both the explicit and implicit costs from the total revenues. To find the economic profit of the business, first, calculate the total revenues by multiplying the number of units sold by the selling price per unit. Then, subtract the explicit costs (the unit cost of producing the goods multiplied by the number of units) and the implicit costs from the total revenue.
Using the supplied information, here's the breakdown:
Total Revenues = 975 units × $30/unit = $29,250Explicit Costs = 975 units × $15/unit = $14,625Implicit Costs = $3,400Economic Profit = Total Revenues - Explicit Costs - Implicit CostsEconomic Profit = $29,250 - $14,625 - $3,400 = $11,225The economic profit of this business equals $11,225.
Mississippi Mud Pies Inc., needs to buy 1,000,000 Swiss francs (CHF) to pay its Swiss chocolate supplier. Its banker quotes bid-ask rates of CHF1.3980-1.3995/USD. What will be the dollar cost of the CHF 1,000,000?
Answer:
The dollar cost of the CHF 1,000,000 is 715,307.58 USD
Explanation:
Bid-ask is quoted with USD in the denominator, which means we can buy USD at ask price or sell USD at bid price.
We need to buy CHF (i.e., sell USD). Let's sell USD to get 1,000,000 CHF at the bid price.
CHF 1.3980 /USD
1,000,000 CHF/ 1.3980 (CHF/USD) = 715,307.582260372 USD
to buy 1,000,000 CHF we need to pay 715,307.582260372 USD.
Therefore, The dollar cost of the CHF 1,000,000 is 715,307.58 USD
Elmo Inc.'s stock is currently selling at $ 60.68 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain or loss that Courtney Schinke realizes if she makes a 100-share transaction. (Enter all losses as negative numbers.) a. She sells short and repurchases the borrowed shares at $ 68.44 per share. b. She takes a long position and sells the stock at $ 78.72 per share. c. She sells short and repurchases the borrowed shares at $ 43.16 per share. d. She takes a long position and sells the stock at $ 60.68 per share.
Answer:
a. -$776 loss
b. $1,804 gain
c. $1,752 gain
d. No loss no gain
Explanation:
The computation of the gain or loss in each case is shown below:
a.First case
Sale value of shares = 100 shares × $60.68
= $6,068
Purchase value of shares = 100 shares × $68.44
= $6,844
So, the loss would be
= $6,068 - $6,844
= -$776 loss
b. Second case
Purchase value of shares = 100 shares × $60.68
= $6,068
Sale value of shares = 100 shares × $78.72
= $7,872
So, the gain would be
= $7,872 - $6,068
= $1,804 gain
c. Third case
Sale value of shares = 100 shares × $60.68
= $6,068
Purchase value of shares = 100 shares × $43.16
= $4,316
So, the gain would be
= $6,068 - $4,316
= $1,752 gain
d. Fourth case
Sale value of shares = 100 shares × $60.68
= $6,068
Purchase value of shares = 100 shares × $60.68
= $6,068
So, there is no loss no gain
The term "race to the bottom" refers to: a. Seeking to mine valuable minerals from the bottom of the ocean. b. Moving production jobs to the country with the lowest labor cost. c. Efforts to deconstruct the assembly process in manufacturing industries. d. An old concept of globalization that is no longer relevant.
Answer:
The correct answer is letter "B": Moving production jobs to the country with the lowest labor cost.
Explanation:
In the corporate world, "race to the bottom" means seeking for reducing production costs by allocating labor expenses in regions where it is cheap. Typically, companies achieve that goal by outsourcing their operations in less-regulating countries with inexpensive labor costs such as India.
Consider two neighboring island countries called Felicidad and Arcadia. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor.
Jeans Rye
Country (Pairs per hour of labor) (Bushels per hour of labor)
Felicidad 5 20
Arcadia 8 16
Initially, suppose Arcadia uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye while Felicidad uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Felicidad produces 15 million pairs of jeans and 20 million bushels of rye, and Arcadia produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
1. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce _____ million pairs per week, and the country that produces rye will produce ____ million bushels per week.
Answer:
Felicidad 80 million Jean
Arcadie 32 million Rye
Explanation:
To know which is the best in Rye production we haveto pick the one with the least opportunity cost (the country which producing Rye decreases less the production of Jeans)
Felicidad Rye opportunity cost 20/5 = 4 Jeans
Arcadia Rye opportunity cost 16/8 = 2 jeas
Arcadie will be the country with comparative advantage for Rye as it renounce to less units of Jeans than Felicidad
The best country for jean production will be Felicidad
4m x 20 = 80m jean
The best country for Rye will be Arcadia
4m x 8 = 32m Rye
If Felicidad and Arcadia specialize in goods where they have a comparative advantage, Felicidad would produce 80 million bushels of rye and Arcadia would produce 32 million pairs of jeans per week.
Explanation:When each country specializes in the production of the good in which it has a comparative advantage, they maximize their efficiency and total output. Looking at the production rates of Felicidad and Arcadia, Felicidad has a comparative advantage in producing rye because they can produce more bushels of rye per hour of labor (20 bushels) compared to jeans (5 pairs). On the other hand, Arcadia has a comparative advantage in producing jeans with 8 pairs per hour compared to rye (16 bushels).
If Felicidad specializes in rye using all 4 million labor hours, they would produce 80 million bushels of rye per week (4 million hours × 20 bushels/hour). If Arcadia specializes in jeans with its 4 million labor hours, they would produce 32 million pairs of jeans per week (4 million hours × 8 pairs/hour). So, the country that produces jeans will produce 32 million pairs per week and the country that produces rye will produce 80 million bushels per week.
Suppose market share for an industry is divided among eight companies in the following manner:
Firm Market Share (Percent)
A 26
B 20
C 15
D 11
E 9
F 8
G 6
H 5
a. The Herfindahl index for this industry is. __________
b. The four-firm concentration ratio for this industry is ________ (Note: Enter the ratio as a percentage.)
Answer:
16.28
72%
Explanation:
Herfindahl index = the Herfindahl index is found by squaring the each firms market share and adding them together.
= 676 + 400 +225 +121 +81 + 64 + 36 + 25 = 1628% = 16.28
The four firm concentration is found by adding the marker share of the top 4 firms in the industry = 26% + 20% + 15% + 11% = 72%
I hope my answer helps you
Final answer:
The Herfindahl-Hirschman Index (HHI) for the industry in question is 1628, and the four-firm concentration ratio is 72%.
Explanation:
The Herfindahl-Hirschman Index (HHI) for an industry is calculated by squaring the market share of each firm (as a whole number), then summing these squared numbers. The market shares of the firms are A: 26%, B: 20%, C: 15%, D: 11%, E: 9%, F: 8%, G: 6%, and H: 5%. The calculation is as follows:
(26)^2 + (20)^2 + (15)^2 + (11)^2 + (9)^2 + (8)^2 + (6)^2 + (5)^2
= 676 + 400 + 225 + 121 + 81 + 64 + 36 + 25
= 1628
Thus, the HHI for this industry is 1628.
As for the four-firm concentration ratio, it sums the market shares of the four largest firms. For firms A, B, C, and D, the calculation is:
26% + 20% + 15% + 11% = 72%
So, the four-firm concentration ratio for this industry is 72%.
Some time ago, the nation of Republica opened up its paper market to international trade. Which of the following results of this policy change is consistent with the notion that Republica has a comparative advantage over other countries in producing paper?A. The domestic demand curve for paper shifted to the right as a result of the policy change.B. The price of paper in Republica decreased as a result of the policy change.C. Republica began exporting paper as a result of the policy change.
Answer:
C. Republica began exporting paper as a result of the policy change.
Explanation:
The policy change would results in the exportation of paper and this is because the opportunity cost is much lower in production of paper in comparison to other countries, stating that supply > demand in domestic market.
Assume the total cost of a college education will be $200,000 when your child enters college in 16 years. You presently have $73,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?
Answer:
6.5017%
Explanation:
Given that,
Total cost of a college education when your child enters college in 16 years, Future value = $200,000
Amount today to invest, present value = $73,000
Time period = 16 years
Therefore,
Annual rate of interest:
[tex]FV=PV(1+r)^{t}[/tex]
[tex]200,000=73,000(1+r)^{16}[/tex]
[tex]r =(\frac{200,000}{73,000})^{\frac{1}{16}}-1[/tex]
r = 6.5017%
Therefore, the annual rate of interest you must earn on your investment to cover the cost of your child’s college education is 6.5017%.
A fixed-income security pays Group of answer choices a variable level of income for owners on a fixed income. a fixed level of income for the life of the owner. a fixed or variable income stream at the option of the owner. a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security.
Answer:
C. A fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security
Explanation:
A fixed income security is a type of investment that provides returns in form of regular, or fixed, interest payments and repayments of the principals when the security reaches maturity.
From the explanation above, the best possible answer is C. A fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security
Fixed-income security is an investment providing fixed periodic payments and is widely used in retirement planning. However, due to the effects of inflation, having a diversified portfolio, including pensions, stocks, bonds, annuities, and properties, is recommended.
Explanation:A fixed-income security refers to an investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. Examples include bonds and preference shares, which typically pay a fixed stream of income or a stream of income determined according to a specified formula for the life of the security.
Fixed-income securities are commonly used by retirees as they provide a steady income stream. However, it's worth noting that living on a fixed income can be challenging due to inflation which can erode purchasing power over time. Therefore, it's crucial for individuals to plan strategically for their retirement and consider different private market options, assessing their risk and return potential.
Among the options are pensions which are traditionally set as a fixed nominal dollar amount per year at retirement. While they provide security, they do not adjust for inflation and could result in loss of buying power over time. Other options include savings accounts, stocks, bonds, annuities and property investments, where each carries its unique risk and return characteristics.
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A company that develops artificial flavorings for candy manufacturers uses research to refine its market offerings. Its studies require participants to make repeated comparisons between pairs of products; in each pair, the products differ on the key attributes of flavoring strength and price. The research approach of this firm is: a. Latent class analysis. b. Conjoint analysis. c. Cluster analysis. d. Regression analysis. e. Paired comparison analysis.
Answer:
The correct answer is letter "B": Conjoint analysis.
Explanation:
In Marketing, Conjoint analysis or Conjoint Value Analysis (CVA) is a research helpful in determining how individuals value different features of the same product. The analysis aims to measure the utility that consumers perceive from each feature at different levels of the product.
Which of the following is a disadvantage of franchising for a franchisee? The Dunning-Kruger effect The endowment effect The false-consensus effect The negative halo effect
Option D
The negative halo effect is a disadvantage of franchising for a franchisee
Explanation:
The halo effect is a kind of cognitive racism in which our overall hypothesis of a person impacts how we think and speculate about his or her personality. Thoughts of a particular characteristic can transfer over to how personas look at other features of that personality.
If a franchisee does not exist up to the excellence criteria of the franchisor this can have a contrary reputational impact not simply on the franchisee, but the wider credit of the franchisor as well. Thus, there is a peril in empowering others not undeviatingly related to the business to practice the business name and logo.
A disadvantage of franchising for a franchisee is D. The negative halo effect.
What is the negative halo effect?In franchising, a franchisee may be negatively impacted if global customers start to dislike the franchisor's products and services.
While the halo effect can also be positive, benefiting the franchisee, the halo effect hurts the franchisee when customers turn against the franchisor, in any way.
Thus, one disadvantage of franchising for a franchisee is D. The negative halo effect.
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On June 30, 2015, Adilide Inc. discarded equipment costing $40,000. Accumulated Depreciation as of December 31, 2014, was $25,000. Assume annual depreciation on the equipment is $2,500.
Journalize the partial year depreciation expense and disposal of the equipment.
Answer:
1. Journalize the partial year depreciation expense:
Debit Depreciation expense $1,250
Credit Accumulated depreciation account $1,250
2. The entry recording disposal of the equipment:
Debit Accumulated depreciation account $26,250
Debit Loss on asset disposal $13,750
Credit Equipment asset $40,000
Explanation:
Annual depreciation on the equipment is $2,500
Depreciation expense for 2015 = $2,500/2 = $1,250
The entry:
Debit Depreciation expense $1,250
Credit Accumulated depreciation account $1,250
On June 30, 2015, Accumulated Depreciation = $25,000 + $1,250 = $26,250
The Book value of the asset = $40,000 - $26,250 = $13,750
The entry recording disposal of the equipment:
Debit Accumulated depreciation account $26,250
Debit Loss on asset disposal $13,750
Credit Equipment asset $40,000
Which of the following is a disadvantage of a mandatory arbitration clause in an employment contract? Multiple Choice The Equal Employment Opportunity Commission is prohibited from bringing its own enforcement action against an employer. The Equal Employment Opportunity Commission is prevented from pursuing victim-specific relief for an employee. Employers suffer from having more number of discrimination cases in court. The employees have the disadvantage of essentially having the courts closed to them for cases under Title VII of the Civil Rights Act of 1964.
Final answer:
The disadvantage of a mandatory arbitration clause in an employment contract is that it can limit employees' access to the courts for discrimination cases, potentially resulting in unfair outcomes and limited legal precedent in equal employment matters.
Explanation:
The primary disadvantage of a mandatory arbitration clause in an employment contract, particularly concerning Title VII of the Civil Rights Act of 1964, is that it can prevent employees from having access to the courts for discrimination cases. Mandatory arbitration requires that disputes be resolved outside the judicial court system, which often means that an unbiased jury will not hear the case, and limits the possibility for broader legal precedents to be set in the pursuit of equal employment opportunities. Moreover, mandatory arbitration may impose limitations on the collection of evidence and may involve arbitrators who are less familiar with employment law than judges, resulting in potential disadvantages for employees seeking to assert their Title VII rights.
Final answer:
A mandatory arbitration clause can prevent employees from using the court system for cases under Title VII, potentially limiting their ability to seek specific legal remedies.
Explanation:
One disadvantage of a mandatory arbitration clause in an employment contract is that the employees may find the courts are essentially closed to them for cases under Title VII of the Civil Rights Act of 1964. Mandatory arbitration can prevent employees from pursuing litigation in the traditional court system, which may otherwise lead to broader legal remedies and possible jury trials. While employers tend to prefer arbitration to avoid costly and public court cases, employees may be at a disadvantage since arbitration can limit their ability to obtain victim-specific relief, which the Equal Employment Opportunity Commission (EEOC) may otherwise pursue on their behalf in court.