explain the role of specialization and division of labor in product​

Answer:

Annual deposit= $2,456.96

Explanation:

Giving the following information:

The number of years= 5 years

Final value= $15,000

Interest rate= 10%

We need to calculate the annual deposit to reach the objective. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (15,000*0.1) / [(1.10^5)-1]

A= $2,456.96

Answer:

$600

Explanation:

The actual cash value coverage to be received for the two-year old furniture is equivalent to the replacement cost today minus estimated depreciation amount that would have been charged on the furniture till date.

replacement cost is $1,000

estimated depreciation till date=$1000/useful life*number of years the furniture has been put to use

estimated depreciation=$1,000/5*2=$400

actual cash value coverage =$1000-$400=$600

All in all,the amount that a person with actual cash value coverage would receive today on the furniture is $600

Answer: The answers are given below

Explanation:

a. Greece has a comparative advantage in the production of wine because Greece has a lower opportunity cost of wine and, therefore Austria has a comparative advantage in the production of jeans.

(b) Greece can gain from the specialization as long as Greece gets more than 3 pair of jeans per bottle of wine and Austria can gain from the specialization as long as it gets more than 0.09 (= 1/11) bottle of wine per a pair of jeans.

(c) Trade is mutually beneficial when terms of trade lies in between the opportunity costs in both countries.

3 jeans < TOT < 11 jeans

So, the permissible terms of trade are:

6 pairs of jeans

Answer:

(1). Greece has comparative advantage in wine while Austria has comparative advantage in jeans.

(2). Greece can gain from specialization as long as it gets more than 5 pair of jeans per bottle of wine.

Austria can gain from specialization as long as it gets more than 1/11 bottle of wine per pair of jeans.

(3). Trade is mutually beneficial as long as terms of trade lies in between opportunity costs in both countries.

Explanation:

So, for the first gap in the question, it can be filled as follows;

(1). Greece has comparative advantage in wine while Austria has comparative advantage in jeans.

Reason: this is because of the lower opportunity cost in Greece for wine will make the country have a comparative advantage in wine.

(2). Greece can gain from specialization as long as it gets more than 5 pair of jeans per bottle of wine.

Austria can gain from specialization as long as it gets more than 1/11 bottle of wine per pair of jeans.

(3). Trade is mutually beneficial as long as terms of trade lies in between opportunity costs in both countries.

3 jeans < TOT < 11 jeans

So, the permissible terms of trade are:

Between 4 pairs of jeans to 10 pairs of jeans.

Answer:

-2500

Explanation:

Incremental revenue is - $10,000. This is because the sour cream product line will drop.

Incremental variable departmental cost savings = $6,000. This is because the company will no longer incurr the variable cost of the sour cream product line.

Incremental savings in fixed cost =

5000 * 30%

= 5000 * 0.30 = 1,500. This is because only 30% of the fixed costs are direct costs, which will no longer be incurred by the company)

Incremental increase in net income =

(Incremental revenue + Incremental variable departmental cost savings + Incremental savings in fixed cost)

-$10,000 + $6,000 + $1,500 = - $2,500

Incremental increase in net income = -2500

Answer and Explanation:

1. The computation of the financial advantage or disadvantage is shown below:

Estimated demand                 28 units

Particulars                  Per unit              Total

Sales revenue           $370                  $10,360

Less: Variable cost

Direct material

($143 + $11)               $154                  -$4,312    

Direct labor               $90                   -$2,520

Variable Manufacturing

overhead                   $7                     -$196

Total variable cost     $251                 ($7,028)

Contribution margin  $119                  $3,332

Less: Additional cost                         -$456

Net income or loss                             $2,876

2. Since there is a net income of $2,876 so the special order should be accepted.

Answer: The answer is given below

Explanation:

All the insurance needed to purchase for each aspect of the business include:

The business, which is organized as a corporation, will provide avionics systems, parts, components, and modification, along with avionics inspection and maintenance services.

1. Product liability insurance – It is also referred to as the products and completed operations coverage. It is needed by every businesses which perform aircraft inspection, its maintenance, modification, or deals in the supply of aircraft parts, lubricants and fuel. With this insurance, the corporation can cover claims from faulty workmanship, errors and defect in design, oversights in inspection, and faults in the quality, storage and the delivery of fuels.

The business has leased a hangar from the airport authority where the work will be performed. The hangar includes areas for office space, parts and tool storage, aircraft and avionics maintenance, and a customer lounge:

2. Hangarkeepers liability insurance - This covers the liability of the business for damage to the aircraft of other people’s when their aircrafts are in the care or control of the corporation. In a situation whereby the airplane of a customer is damaged by the employee, the hangar collapses due to natural disasters, this coverage pays off the airplanes’ damages and losses. Also, “Premises Liability” is required because the hangar include areas for a customer lounge. Premises liability covers customers injuries that takes place in the corporation’s hangar.

In addition to yourself as general manager, the company's initial employees will include a secretary/receptionist, a bookkeeper, a stocks and stores clerk, and 5 A&P mechanics (one of whom holds FAA inspection authorization as well as a pilot license and will perform maintenance flight checks on customers' aircraft before approving them for return to service following maintenance).

3. Compensation insurance coverage for workers - This is mandatory for employers as it compensate the employees for on-the-job injuries that occur.

The business will not own or operate any aircraft, except for the maintenance flight check operations on customer aircraft:

4. Hangarkeeper insurance - Here,.the business requires hangarkeeper’s insurance because the business will neither own nor operate any aircraft, but will do flight check and the maintenance on other people’s airplanes that are being stored or worked on in their facility.

Answer:

Variable manufacturing overhead rate variance= $496 favorable

Explanation:

Giving the following information:

Standard:

Variable overhead 0.5 hours $ 8.00 per hour

The company produced 6,200 units using 2,480 direct labor-hours. The actual variable overhead rate was $7.80 per hour.

To calculate the variable overhead rate variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Variable manufacturing overhead rate variance= (8 - 7.8)*2,480

Variable manufacturing overhead rate variance= $496 favorable

Answer:

1) Using straight line method , depreciation for first year is $4,000

2) Using double declining balance , depreciation for first year is $8,900

3) Using activity based method,  depreciation for first year is $5,600

Explanation:

Given:

Cost = $44,500

Useful life = 10 years

Salvage value = $4,500

Useful life in hours = 10,000 hours

Super Saver used the equipment for 1,400 hours the first year.

1) Straight line method

Depreciation for first year = (cost - salvage value) ÷ useful life

= $(44,500 - 4,500) ÷ 10

= $4,000 per year

2) Double declining balance

Depreciation rate = (100 ÷ useful life) × 2

= (100 ÷ 10) × 2

= 20%

Depreciation for first year = $44,500 × 20%

= $8,900

3) Activity based

Rate = cost - salvage value ÷ useful life in hours

= ($44,500 - $4,500) ÷ 10,000

= 4 per hour

Depreciation for first year = 1,400 × 4

= $5,600

Answer:

2015 Net income is 5.2%

2016 Net income is 8.6%

2017 Net income is 14.0%

Explanation:

Net income %=sales%-cost of goods sold %-expenses%

2015:

Sales is 100%

cost of goods sold is 66.1%

expenses is 28.7%

In 2015 net income %=100%-66.1%-28.7%=5.2%

2016:

Sales is 100%

cost of goods sold is 63.6%

expenses is 27.8%

In 2016 net income as % of sales=100%-63.6%-27.8%=8.6%

2017:

Sales is 100%

cost of goods sold is 62.1%

expenses is 24.8%

In 2017 net income as % of sales=100%-61.2%-24.8%=14.0%

Answer:

D. May require losing money fighting the first potential entrant.

Explanation:

In this form of gaming, or in this game theory, it is said to be played over and over and could possible be in a probability form that is why that possibly, as a player, you may require loosing money fighting the first potential entrant.

Fighting the first entrant, possibility of cooperating means that their could be a possible compromise in order to carry on accepting a payoff over a certain period of time, knowing that if we do not uphold our end of the deal, our opponent may decide not to either.

Answer:

Option B

U.S. net capital outflow is $300 billion; capital is flowing out of the U.S.

Explanation:

We can understand it better when we see it from the perspective of where the money is going to and coming from.

If U.S. residents purchase $600 billion worth of foreign assets, the money is going out from the U.S because residents are paying money to a foreign country for their assets.

From this, the U.S is losing $600 billion

If foreigners purchase $300 billion worth of U.S. assets. This means that money is coming from foreigners into the U.S because the funds will be paid to United States organizations.

This means that the U.s is gaining $300 billion

To get the net flow of cash, we subtract the inflow  and the outflow. this will give  $300 billion - $ 600 billion. Which is = $300 billion outflow.

Hence the  U.S. net capital outflow is $300 billion and capital is flowing out of the U.S.

Answer and Explanation:

The journal entries are as follows

1. On April 5

Merchandise Inventory $23,000

           To Accounts Payable  $23,000

(Being the merchandise purchased on the account is recorded)

For recording this we debited the merchandise inventory as it increased the assets and credited the account payable as it increased the liabilities

2. On April 6

Merchandise Inventory $900

         To Cash  $900

(Being freight cost is paid is recorded)

For recording this we debited the merchandise inventory as it increased the assets and credited the cash as it decreased the assets

3. On April 7

Equipment $26,000

        To Accounts Payable  $26,000

(Being equipment purchased on the account is recorded)

For recording this we debited the equipment as it increased the assets and credited the account payable as it increased the liabilities

4. On April 8

Accounts Payable $3,000

         To Merchandise Inventory  $3,000

(Being returned inventory is recorded)

For recording this we debited the account payable as it decreased the liabilities and credited the merchandise inventory as it decreased the assets

5. On April 15

Accounts Payable ($23,000 - $3,000) $20,000

        To Cash  $19,600

        To Merchandise Inventory ($20,000 × 2%)  $400

(Being payment is made is recorded)

For recording this we debited the account payable as it decreased the liabilities and credited the merchandise inventory and cash as it decreased the assets

Answer:

Incremental profit is $120,500

Explanation:

First and foremost, it is noteworthy that accepting the new order would increase revenue, cost of goods sold as well as the variable selling and administrative expenses.

Selling price per unit=$4,571,400/120,300=$38

variable cost of goods sold per unit=($3,713,667-$960,000)/120,300=$22.89

increase in selling and administrative expenses by unit is $0.75

initial variable selling and administrative expenses per unit=($534,893- $257,000)/120,300=$2.31

revised variable selling and administrative expenses per unit=$2.31 +$0.75=$3.06

Incremental analysis

Increase in revenue($38*10,000)                              $380,000

increase in cost of goods sold($22.89*10,000)      ($228,900)

increase in selling & admin. exp.($3.06*10,000)     ($30,600)

incremental profit                                                       $120,500  

Answer:

Jan. 1

Cash $21,800 (debit)

Common Stock $21,800 (credit)

Effect : Assets = Increase $21,800, Equity = Increase $21,800, Liabilities = No Effect

Jan. 2

Cash $6,300 (debit)

Service Revenue $6,300 (credit)

Effect : Assets = Increase $6,300, Equity = Increase $6,300, Liabilities = No Effect

Jan. 3

Cash  $11,800 (debit)

Deferred Revenue  $11,800 (credit)

Effect : Assets = Increase  $11,800, Equity = No Effect, Liabilities = Increase  $11,800

Jan. 4

Cash  $7,100 (debit)

Trade Payable  $7,100 (credit)

Effect : Assets = Increase $7,100, Equity = No Effect, Liabilities = Decrease  $7,100

Jan. 5

Cash  $14,000 (debit)

Trade Payable  $7,100 (credit)

Effect : Assets = Increase $14,000, Equity = No Effect, Liabilities = Increase  $14,000

Explanation:

The following items will appear in Balance Sheet :

The following items will appear in Income Statement :

The Following Items will Appear in Statement of Cash flow :

Answer:

$4,400

Explanation:

For calculation of amount that will be credited to Accounts Payable first we need to find out the GST and PST which is shown below:-

Goods and services tax GST = Goods and services percentage × Purchase cost

= 5% × $4,000

= $200

Provisional sales tax PST = Provisional sales tax percentage × Purchase cost

= 5% × $4,000

= $200

Amount that will be credited to accounts payable = Purchase cost + Goods and services tax GST + Provisional sales tax PST

= $4,000 + $200 + $200

= $4,400

Therefore for computing the amount that will be credited to accounts payable we simply added all the taxes value with the purchase cost.

Answer:

In simple words, This situation is premised on the genuine narrative of a productive institution that has permitted its operation managerial procedures to devolve to the juncture where assignment to something like a development team has often been a sign of deference as well as a symbol of a delayed termination.

The case includes problems of morale, structural impact on programs, and recruitment of the development team. It allows students the chance to see just how, if left untreated, specific behaviour patterns by senior managers and many others in the institution can operate against use of working groups to enhance employee profitability, but instead just make them an unloading ground for discontent and bad employees.

Answer:

$71,300

Explanation:

Stuart and Pamela Gibson

Casualty loss $13,600

[$48,600 – (10% × $350,000)]

Home mortgage interest 19,000

State tax 10,000

(18,000 income and 16,300 property

Limited to 10,000)

Charitable Contributions 28,700

Total itemized deductions 71,300

Answer:

Cost of common equity is 16.49%

Explanation:

The WACC of weighted average cost of capital is the cost of a firm's capital structure. The capital structure of the firm can comprise of the following components namely debt, preferred stock and common stock.

For a firm which has only debt and equity, the WACC is calculated as follows,

WACC = wD * rD * (1 - tax rate)   +   wE * rE

Where,

Plugging in the values of the available components, we can calculate the cost of common equity to be,

0.1370 =  0.3 * 0.12 * (1 - 0.4)  +  0.7 * rE

0.1370 = 0.0216 + 0.7 * rE

0.1370 - 0.0216  = 0.7 * rE

0.1154 / 0.7  =  rE

rE = 0.164857  or  16.4857%    rounded off to 16.49%

Answer:

$3,028

Explanation:

As we know that

The inventory should be valued at cost or net realizable value which ever is lower

                       (A)                   (B)                                                (A × B)

Product           Quantity       Lower value of cost or NRV      Amount

Gloves             16                                $121                                 $1,936

Shoes              26                               $21                                   $546

Hats                 13                                $42                                  $546

Total amount                                                                            $3,028

Hence, the inventory recorded amount is $3,028

Answer:

Ethics do not affect the operations or outcome of a company.

Explanation:

The statement above is wrong. Ethics do affect the operations or outcome for a company. A lack of ethics can even bring down a company.

For example, unethical accountants in a company could report the wrong financial statements. Financial statements are like the diagnosis for a company, if they are wrong, wrong decisions will be taken, and those wrong decisions could bring down the company.

Organizations often have different kinds of rules and regulations.The false statement regarding ethics is that Ethics do affect the operations or outcome of a company.

Firms often have ethics that are used in the running of their business. Ethics can also be called moral philosophy. It is commonly known as that which is morally good and bad and that which is morally right and wrong.

It is often used in any firm, system or theory of moral values or principles. It influences the day to day running of a frim/business as the business is build based on the ethics of that organization.

Learn more about Ethics from

https://brainly.com/question/13969108

Answer:

Kingbird will have an Updated Cash Balance of $21,800

Explanation:

First Step is to Update the Bank Balance in the Cash Book

Debit :

Cash Balance before adjustment     $25,080

Dishonored Cheques                            $460

Totals                                                  $25,540

Credit:

Bank service charge                               $145

Balance as per updated Cash Book $25,395

Totals                                                  $25,540

Then Prepare a Bank Reconciliation Statement

Bank Reconciliation Statement

Balance at Bank as per Cash Book $25,395

Add Unpresented Cheques                $7,150

Less Lodgements not yet credit        ($4,425)

Balance as per Bank Statement       $21,800

Conclusion.

Kingbird will have an Updated Cash Balance of $21,800

Answer and Explanation:

The computation of the net income earned or net loss incurred is shown below

Particulars                   a                 b                   c                     d

Equity beginning       $32,564     $32,564      $32,564          $32,564

balance

Add:

Owner investment                                             $45,000         $35,000

Less:

Dividend                                         $16,800                              $16,800

Add: Net income       $35,861        $52,661      

or net loss                                                          ($9,139)        $17,661

Equity ending  

balance                   $68,425        $68,425        $68,425          $68,425

Working notes

The beginning and ending equity balance is

Beginning equity balance is

= Total assets beginning - total liabilities beginning

= $57,000 - $24,436

= $32,564

Ending equity balance is

= Total assets ending - total liabilities ending

= $115,000 - $46,575

= $68,425

The annual year dividend is

= $1,400 × 12 months

= $16,800

Answer:

IRR for truck = 10.68%

IRR for pulley = 25.41%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow for the truck :

Cash flow in year 0 = $-19,000

Cash flow each year from year 1 to 5 = 5,100

IRR = 10.68%

Cash flow for the pulley :

Cash flow in year 0 = $-20,000

Cash flow each year from year one to five = $7,500

IRR = 25.41%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

Answer:

Straight line depreciation method : $43,200, $43,200, $43,200

Unit of activity deprecation method = $51,840, $38,880, $38,880

Double declining method = $90,000, $30,000, $10,000

Total depreciation expense

Straight line depreciation and unit of activity method = $129,600

Double declining method = $130,000

Explanation:

Depreciation is a method used in expensing the cost of an asset.

the straight-line method = (Cost of asset - Salvage value) / useful life

( $135,000 - $5,400) / 3 = $43,200

The straight line depreciation method allocates the same deprecation expense for each year of the useful life of the asset. So, the depreciation expense for the 3 years is $43,200.

Total depreciation expense = $43,200 × 3 = $129,600

the units-of-activity method =( hours used in year / total hours of the machine) x (Cost of asset - Salvage value)

Deprecation expense in the first year =

( $135,000 - $5,400) × (10,800 / 27,000) =

$129,600 × 0.4 = $51,840

Deprecation expense in the second year

( $135,000 - $5,400) × (8,100 / 27,000) = $129,600 × 0.3 = $38,880

Deprecation expense in the third year

( $135,000 - $5,400) × (8,100 / 27,000) = $129,600 × 0.3 = $38,880

Total depreciation expense = $129,600

Double declining method = depreciation factor × cost of the asset

Depreciation factor = 2 x (1/useful life)

Deprecation factor = 2 / 3 = 0.666667

Depreciation in the first year =

0.666667 x $135,000 = $90,000

Book value = $135,000 - $90,000 = $45,000

Deprecation expense in the second year =

0.666667 x $45,000 = $30,000

Book value = $45,000 - $30,000 = $15,000

Deprecation expense in the third year =

0.666667 x $15,000 = $10,000

Total depreciation expense = $130,000

I hope my answer helps you

Answer:

The difference between the true discount and the merchant's claimed discount is that the true discount is 44% which is a 6% discount difference with the merchant's claimed discount of 50%.

Explanation:

If the merchant offers a 30% discount on products and then, offers a 20% discount from the price with the 30% discount that is not a 50% discount from the initial price as it would be a 44% discount. This because when the 30% discount is applied, customers will pay the 70% of the price and when the 20% discount is applied over this price, customers would be paying the 56% of the price:

70*0.2= 14

70-14= 56

This means that customers would be getting a 44% discount because:

100-56= 44

According to this, the difference between the true discount and the merchant's claimed discount is that the true discount is 44% which is a 6% discount difference with the merchant's claimed discount of 50%.

Answer:

6%

Explanation:

The first discount means that the customer will pay 70% of the original price. The second discount means a selling price of 80% of the discounted price. Because 0.80(0.70) = 0.56 = 56%, the customer pays 56% of the original price and thus receives a discount, for a difference of 50% - 44% = 6%.

Answer:

$4000  is the correct answer to the given question .

Explanation:

The marginal cost with compare to the labor can be written as

[tex]MC\ = \frac{dQ}{dL} \\MC =\frac{d\ ( 2(K)1/2(L)1/2\ )}{dL} \\\\MC=\frac{\sqrt{K} }{\sqrt{L} }[/tex]

Here K=9 units  putting this value in the previous equation  we get

[tex]MC\ = \frac{\sqrt{9} }{\sqrt{L} }[/tex]

[tex]MC=\frac{3}{\sqrt{L} }[/tex]

We can find the value of labor by the given formula that are given below

[tex]V *MC=\ W\\400\ *\frac{3}{\sqrt{L} }\ =120\\ L=10[/tex]

From the given question that are mention in question

Q = 2(K)1/2(L)1/2

Putting the value of K and L in the given equation we get

[tex]Q\ =2 * \sqrt{9} \ * \sqrt{100} \\Q\ = 60[/tex]

So profit maximizing output is =$60 chairs as the chairs can be sold for  the $400 each so = $60 * $400 *10=$24000 chairs

As the competitive wage of $120 for 100 units as well as the total of $8,000 on the 9 units of capital equipment

=$20000

Therefore profit-maximizing level of output =$24000-$20000=$4000

Answer:

The prize is worth $425,678.19.

Explanation:

Giving the following information:

Cash flow= $50,000

The number of years= 20 years.

Rate of return= 10%

First, we need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {50,000*[(1.1^20)-1]}/0.1

FV= $2,863,749.98

Now, the present value:

PV= FV/(1+i)^n

PV= 2,863,749.98/(1.1^20)

PV= $425,678.19

Answer:

ANSWER IS BELOW :)

Explanation:

Not sure, but I think its is 56(6)+k-6