Francine is a photographer. For years, her business has consisted of joining guided backcountry hiking and skiing tours and providing photographs for the tour clients. However, this business has dried up completely in 2020 due to COVID.
Wanting to make use of her backcountry and photography skills, she starts thinking about going out by herself to take nature photographs to sell to stock agencies. An alternate approach would be to take photos and sell large prints of the photos as art.
For the stock photo option, she does not need to purchase any additional equipment. She will, however, need to pay for the costs of her trips, as they are no longer provided by the guides.
She expects to do 2 trip(s) per week, including time for editing and processing. She knows the costs of going on a trip well from her experience with the guides. Including gas, food, park permits, and other supplies, it will cost $875 per trip.
To estimate how many she photos she will submit to the agencies, she looks at her first year of guided tour photography. On her first trip, she would get about 6 keeper images per trip. By the end of her first year, she was getting 17. She expects to follow the same trend for the photos she submits to the stock agencies.
Once on the stock agency, based on similar landscape photographers she knows, she expects each photo to sell five times per week, with a commission to her (net of all agency fees) of $0.50 per photo.
For the art photo option, Francine will need some additional equipment and supplies.
- A printer for $2,200
- Initial supplies for $500
- Shipping and packaging: $30 per photo sold
- Expected printing costs per sold print: $25 per photo sold
For the fine art photography plan, she intends to create one photograph from each trip, and sell it as a limited edition print. She hopes to sell 1 photo(s) from each trip per month. (e.g. if Francine goes on four trips in July, she creates four photos to sell. She would sell 1 of each that month, for four times 1 of sales. In August, she goes on four more trips, creating four new prints to sell. The August prints each sell 1 copy/copies, and so do the July prints, for a total of eight times 1 sales in August). For sake of simplicity, you can assume all months are only four weeks if you want. Based on similar artists, she thinks she can sell her photos for $323 each.
Francine expects the guiding business to resume in 2021, one year from now, at which point she will return to that line of work.
What are the fixed and variable, and total costs for both options?
Identify two potential trade-offs between the two options? When will Francine break even and what is the payback period for each option? . Draw a cost/revenue chart (figure of profit and loss) for the two options and identify key points or areas on the chart. Estimate Francine’s profit and/or loss for the year for both options. How does marginal cost of producing one more photo in the two options change over time? What is the marginal cost of producing one more photo in the two options at end of year 1? Create a cashflow diagram for the two businesses for year 1, with separately colored printing and shipping, fixed, and trip costs and revenues.
Bonus points for someone who derives generalized equations for cost and revenue curves for these two options.

a) Internal controls lead to barriers in the smooth workflow of an organizatioI disagree with this statement. Internal controls are put in place to safeguard assets, ensure accuracy and reliability of financial information, promote operational efficiency, and ensure compliance with laws and regulations. While it is true that certain control measures can introduce additional steps or approvals in workflow processes, the overall purpose is to mitigate risks and enhance the effectiveness and efficiency of operations. Internal controls help identify and prevent errors, fraud, and misuse of resources, which ultimately contribute to a smoother and more reliable workflow.

b) Sole proprietorship is the best form of organization.This statement is subjective and depends on various factors. While sole proprietorship offers simplicity in terms of formation and decision-making, it also entails unlimited personal liability and limited access to capital. Other forms of organization, such as partnerships, corporations, or limited liability companies, may provide benefits like shared liability, increased access to funding, and specialized expertise. The choice of organizational structure depends on the specific circumstances, goals, and preferences of the business owner.c) A business with a high cash balance must be profitable.I disagree with this statement. Cash balance alone does not determine the profitability of a business. It is possible for a business to have a high cash balance while experiencing losses or having low profitability. Profitability is assessed by considering various factors, such as revenues, expenses, net income, and profitability ratios. A business may have a high cash balance due to factors like cash inflows from financing activities, capital contributions, or accumulated cash reserves. It is crucial to evaluate the overall financial performance and profitability of a business by analyzing its income statement and other relevant financial metrics.d) Journal and ledger duplicate each other and serve as a substitute for each other.I disagree with this statement. The journal and ledger are both essential components of the accounting process, but they serve distinct purposes. The journal records transactions chronologically, providing a detailed and chronological record of individual transactions. On the other hand, the ledger organizes and summarizes the information from the journal by account, creating a centralized record of all transactions related to specific accounts. The ledger provides a running balance for each account and facilitates the preparation of financial statements. Both the journal and the ledger are necessary for accurate and complete accounting records, and they complement each other rather than serving as substitutes.e) Closing entries are a substitute for adjusting entries.I disagree with this statement. Closing entries and adjusting entries serve different purposes in the accounting cycle. Adjusting entries are made at the end of an accounting period to ensure that revenues and expenses are properly recognized and recorded in the correct period. They bring the accounts up to date and adjust for accruals, deferrals, and other timing differences. On the other hand, closing entries are made at the end of the accounting period to transfer temporary account balances (such as revenues, expenses, and dividends) to the retained earnings account and reset the temporary accounts for the next period. Closing entries are necessary to prepare the books for the next accounting period and start with zero balances in temporary accounts. Therefore, closing entries and adjusting entries serve different purposes and are not substitutes for each other.

To learn more about  operational  click on the link below:

brainly.com/question/31170881

#SPJ11

The estimated future value of the investment is £180,000 (i.e. 50% increase from £120,000), the correct answer is option C £648,000.

The amount that is closest to the end value of investing £120,000 for 5 years at an effective annual interest rate of 9% compounded annually is option C £648,000. This is because the future value of the investment can be calculated using the formula: FV = PV × (1 + i)n where FV is the future value, PV is the present value, i is the annual interest rate and n is the number of years the investment is held.

Substituting the given values into the formula, we get:

FV = £120,000 × (1 + 0.09)5
FV = £120,000 × 1.538624
FV = £184,634.87 (rounded to the nearest penny)

Therefore, the end value of investing £120,000 for 5 years at an effective annual interest rate of 9% compounded annually is closest to £184,634.

To determine the closest answer option, we can estimate the future value using the rule of 72, which states that the number of years it takes for an investment to double in value is approximately equal to 72 divided by the annual interest rate.

In this case, the interest rate is 9%, so the number of years it takes to double the investment is approximately 8 years (72 ÷ 9). Since the investment is held for 5 years, we can estimate that it will increase in value by approximately 50% (i.e. halfway between doubling and staying the same). The correct answer is option C £648,000.

To learn more about future value click here:

https://brainly.com/question/27979326#

#SPJ11

False. Under the Internal Revenue Service (IRS) Whistleblower Program, whistleblowers who provide credible information regarding tax law violations may be eligible for awards.

The percentage of the total collected proceeds that whistleblowers can receive as an award is not fixed at 75%. The actual award amount can vary depending on several factors, including the significance of the information provided and the amount of tax involved.

The IRS Whistleblower Program allows for awards ranging from 15% to 30% of the collected proceeds, subject to certain conditions and limitations. The specific award percentage is determined by the IRS based on various factors.

Therefore, the statement that whistleblowers are entitled to awards of up to 75% of the total collected proceeds under the IRS Whistleblower Reform Law is false.

Learn more about internal revenue service here:

https://brainly.com/question/30401300

#SPJ11

An increase in interest rates, and eventually a reduction in investment expenditure.A reduction in the supply of cash in the overnight money market is a situation where there is a lesser amount of money circulating in the financial market than there is a demand for it.

The answer to this question is: a.

This kind of shortage situation can lead to an increase in the interest rates charged by lenders in the overnight market. This is usually a consequence of the increased demand for cash which now becomes scarcer, and as a result of the increased interest rates,

there is usually a decrease in the number of investors willing to borrow money for investment in the market because borrowing money becomes more expensive, as a result, investment expenditure decreases, and this affects the financial market negatively and it is a major consequence of a reduction in the supply of cash in the overnight money market.

To know more about demand visit:

https://brainly.com/question/30402955

#SPJ11

When a company changes the accounting method for tax purposes, it should reflect it in the accounts. The following entries would be required for the change in accounting principle:Accounting entry for recognizing deferred tax liability:Deferred Tax Liability Dr. 59,500Income Tax Expense Cr. 59,500(To record Deferred Tax Liability for 2015)Deferred Tax Liability Dr. 85,500Income Tax Expense Cr. 85,500(To record Deferred Tax Liability for 2014)

Accounting entry for adjusting pretax income from percentage-of-completion to the cost-recovery method:Construction in Process Dr. 220,000 Income from Long-Term Contracts Cr. 220,000(To adjust Pretax Income from Percentage-of-Completion to the Cost-Recovery Method)Construction in Process Dr. 160,000 Deferred Tax Liability Cr. 160,000(To recognize the Deferred Tax Liability for the above Journal entry)Hence, the total Deferred Tax Liability is $145,000 (i.e. $85,500 + $59,500).In 100 words:When a company changes the accounting method for tax purposes, it should reflect it in the accounts. Two journal entries will be needed for the change in accounting principle: one to recognize the deferred tax liability, and another to adjust the pre-tax income from percentage-of-completion to the cost-recovery method. The deferred tax liability for 2014 and 2015 is $85,500 and $59,500, respectively.

Construction in Process should be debited for $220,000, and Income from Long-Term Contracts should be credited for $220,000, in order to adjust pretax income from percentage-of-completion to the cost-recovery method. To recognize the deferred tax liability for the journal entry above, Construction in Process should be debited for $160,000, and Deferred Tax Liability should be credited for $160,000.

To know more about Accounting Principle visit-

https://brainly.com/question/14566016

#SPJ11

The cash payments to suppliers for Bioware Company using the direct method would amount to $40,600.

To compute cash payments to suppliers using the direct method, we need to adjust the cost of goods sold (COGS) by changes in inventory and accounts payable.

Cash payments to suppliers can be calculated using the following formula:

Cash payments to suppliers = COGS + Increase in Accounts Payable - Decrease in Inventory

Given the information provided:

COGS = $42,600

Decrease in Inventory = $7,600

Increase in Accounts Payable = $5,600

Using the formula:

Cash payments to suppliers = $42,600 + $5,600 - $7,600

Cash payments to suppliers = $40,600

Learn more about inventory here-

https://brainly.com/question/24868116

#SPJ4

Sigma level indicates the number of standard deviations from the mean or average an acceptable or defective unit lies. The sigma level is used to measure process capability, indicating how well the process is performing. A six-sigma process refers to a process that is performing at a high level of accuracy, with a defect rate of 3.4 defects per million opportunities (DPMO).

Given that the Goodhealth clinic administered 752 drug doses over the past year, in two instances, the incorrect size of pill was administered, and in one case, the wrong drug was given. The clinic’s overall defect rate is (3/752) * 1,000,000 = 3989 DPMO.To determine the sigma level, the defect rate can be converted to sigma level using the six-sigma conversion table.

A defect rate of 3,989 DPMO equals a sigma level of 3.11.The Goodhealth clinic’s process is at a sigma level of 3.11. This means that its process is reasonably stable and predictable. However, it still needs improvement, and management should continue to focus on reducing errors and improving its quality processes.

To know more about DPMO visit:-

https://brainly.com/question/17184498

#SPJ11

This adjusting journal entry ensures that the financial statements reflect the appropriate bad debts expense for 2021 based on the estimated allowance for doubtful accounts.

To record the bad debts expense for 2021, we need to adjust the allowance for doubtful accounts based on the estimated percentage. Here's the adjusting journal entry:

Bad Debts Expense     11,868

    Allowance for Doubtful Accounts    11,868

The total accounts receivable is $395,600, and the estimated allowance is 3% of that amount, which equals $11,868 ($395,600 x 0.03). The allowance for doubtful accounts initially had a credit balance of $7,200, so we need to increase it by the additional amount of $11,868 - $7,200 = $4,668.

By debiting the Bad Debts Expense account, we recognize the expense for the year, and by crediting the Allowance for Doubtful Accounts, we increase the allowance to reflect the estimated amount of uncollectible accounts.

This adjusting journal entry ensures that the financial statements reflect the appropriate bad debts expense for 2021 based on the estimated allowance for doubtful accounts.

To know more about bad debt expense, visit:

brainly.com/question/15851327

#SPJ11

The investment turnover ratio of the Cyclotron Division is 1.92. Option A is correct. The return on investment (ROI) of the Cyclotron Division in the second scenario is 40%. Option B is correct.

To calculate the investment turnover ratio, you need to divide the revenues by the average operating assets.

Investment Turnover Ratio = Revenues / Average Operating Assets

For the first scenario;

Revenues = $2,500,000

Operating assets = $1,300,000

The average operating assets are not given, so we'll assume it's the same as the operating assets.

Investment Turnover Ratio = $2,500,000 / $1,300,000 = 1.92

Therefore, the investment turnover ratio for the first scenario is 1.92.

For the second scenario;

Revenues = $2,200,000

Operating assets = $1,500,000

Investment Turnover Ratio = $2,200,000 / $1,500,000 = 1.47

Therefore, the investment turnover ratio for the second scenario is 1.47.

So the investment turnover ratio of the Cyclotron Division is 1.92.

Hence, A. is the correct option.

To calculate the return on investment (ROI), you need to divide the operating income by the average operating assets and multiply by 100 to express it as a percentage.

Return on Investment (ROI) = (Operating Income/Average Operating Assets) × 100

For the second scenario;

Operating costs = $1,600,000

Operating Income = Revenues - Operating costs = $2,200,000 - $1,600,000 = $600,000

Return on Investment (ROI) = ($600,000 / $1,500,000) × 100 = 40%

Therefore, the correct answer for the return on investment (ROI) of the Cyclotron Division in the second scenario is 40%.

Hence, B. is the correct option.

To know more about turnover ratio here

https://brainly.com/question/29690693

#SPJ4

r must be 3.25 percent according to the TR-S rule. Given the variation of the Taylor rule as;

r,= (0.25)r TAYLOR +(0.75)rt-1, where r is the real interest rate in a quarter, TAYLOR is the interest rate implied by the Taylor rule, and r-1 is the interest rate in the previous quarter. Call this rule TR-S. If rt-1 3 percent and the Taylor rule indicates that the central bank should set TAYLOR to 4 percent, then the TR-S rule dictates that r should be.

The Taylor rule can be given as;

r = r* + 0.5 (p-p*) + 0.5 (y-y*), where r is the real interest rate, r* is the target real interest rate, p is the inflation rate, p* is the inflation target, y is the output gap, and y* is potential output. If we take p = p* = 2 percent and y = y* = 0, then the Taylor rule becomes;

r = r* + 1, which implies that the nominal interest rate equals the inflation target plus the real interest rate. If the central bank follows the Taylor rule, it will adjust the nominal interest rate in response to changes in inflation and output so as to keep the real interest rate at the target level. The TR-S rule is a variation of the Taylor rule that puts more weight on the lagged interest rate and less weight on the implied interest rate. This rule implies that the central bank should respond more slowly to changes in inflation and output, which could lead to a more stable real interest rate over time.

Given the variation of the Taylor rule as;r,= (0.25)r TAYLOR +(0.75)rt-1, where r is the real interest rate in a quarter, TAYLOR is the interest rate implied by the Taylor rule, and r-1 is the interest rate in the previous quarter. Call this rule TR-S. If rt-1 3 percent and the Taylor rule indicates that the central bank should set TAYLOR to 4 percent, then the TR-S rule dictates that r should be:r, = (0.25) x 4 + (0.75) x 3 = 1 + 2.25 = 3.25 percent

Therefore, the TR-S rule dictates that r should be 3.25 percent.

Learn more about the Taylor rule: https://brainly.com/question/32088123

#SPJ11

The coupon rate on the bonds of Ashes Divide Corporation, we first need to calculate the semiannual payment.

Given:

- Bonds with 12 years to maturity

- Yield to maturity (YTM): 7.6% (APR)

- Current price: $1,256.50

- Semiannual payments

Calculate the semiannual payment using the present value formula:

Price = (Coupon payment / YTM) * (1 - (1 + YTM)^(-Number of periods)) + (Face value / (1 + YTM)^Number of periods)

Substituting the given values, we have:

$1,256.50 = (Coupon payment / 2) * (1 - (1 + 7.6%)^(-24)) + ($1,000 / (1 + 7.6%)^24). Solving this equation will give us the semiannual payment.

Convert the semiannual payment into an annual payment:

Annual payment = Semiannual payment * 2

Calculate the coupon rate as an APR using the annual payment and the bond's face value:

Coupon rate = Annual payment / Face value

Learn more about semiannual payment here:

https://brainly.com/question/29354859

#SPJ11

$2,530.43 is the initial monthly payment over the first year.

To calculate the initial monthly payment for the first year of a graduated-payment mortgage (GPM), we need to consider the loan details provided. Here's how you can calculate it:

1. Calculate the loan amount after the down payment:

  Loan amount = Property value - Down payment

  Loan amount = $389,000 - (10% of $389,000)

  Loan amount = $389,000 - $38,900

  Loan amount = $350,100

2. Determine the monthly interest rate:

  Monthly interest rate = Annual interest rate / 12

  Monthly interest rate = 8.25% / 12

  Monthly interest rate = 0.6875%

3. Calculate the initial monthly payment for the first year:

First, let's calculate the monthly payment for the first year before any graduation: Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))

Monthly payment = ($350,100 * 0.006875) / (1 - (1 + 0.006875)^(-360))

Monthly payment = $2,530.43

Learn more about the graduated-payment mortgage (GPM) here:

https://brainly.com/question/29555729

#SPJ4

According to the World Health Organization (WHO), communicable diseases are responsible for the majority of deaths among low- and middle-income countries.

This is particularly true for sub-Saharan Africa, which accounts for the largest proportion of deaths in these countries. so let's delve deeper. Communicable diseases: Communicable diseases are caused by bacteria, viruses, parasites, and fungi, and they are primarily spread through direct or indirect contact.

Non-communicable diseases, also known as chronic diseases, include heart disease, stroke, cancer, diabetes, and chronic respiratory diseases. They are responsible for around 70% of deaths globally and are increasing in prevalence in low- and middle-income countries. Overcrowding and poverty: Overcrowding and poverty are two factors that contribute to the high prevalence of communicable diseases.

To know more about income visit:

https://brainly.com/question/14732695

#SPJ11

The Uniform Commercial Code (UCC) is a collection of rules that govern commercial transactions in the United States.

The UCC is a set of standardized laws that govern commercial transactions and business practices in the United States. Its goals are:

Simplification, clarification, and modernization: The UCC aims to simplify and clarify the complex legal framework surrounding commercial transactions. It seeks to modernize the law to keep up with evolving business practices and technologies.

Codification of general rules and customs: The UCC codifies the general rules, customs, and traditional ways of conducting business. It provides a standardized framework that businesses can rely on and follow in their transactions.

Uniformity across states: One of the primary objectives of the UCC is to promote uniformity in commercial law across different states. By adopting consistent rules and principles, the UCC reduces legal complexities and facilitates interstate commerce.

The Uniform Commercial Code (UCC) has three main goals: simplifying and modernizing commercial law, codifying general rules and customs, and promoting uniformity in commercial law across states. These objectives aim to provide clarity, consistency, and efficiency in commercial transactions while accommodating changing business practices.

To know more about UCC visit:

brainly.com/question/14957422

#SPJ11

If a new fertilizer greatly improves the corn crop yield and is being widely used by corn farmers, it will shift the supply curve of corn to the right. This will increase the equilibrium quantity of corn and the equilibrium price of corn will decrease.

The demand for corn will fall and the quantity demanded of corn will increase. The reason why this happens is that with the increased yield of corn, the supply of corn increases, causing a rightward shift in the supply curve. When the supply curve shifts to the right, the equilibrium price of corn will decrease and the equilibrium quantity of corn will increase, as shown in the graph below:

Thus, the correct option is :  will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase.

To know more about fertilizer visit :

https://brainly.com/question/24196345

#SPJ11

An employee manual is a document that contains the company's policies, procedures, and expectations. It serves as a reference for employees to follow and also helps the employer to protect their business interests.

The benefits of an employee manual are numerous.Benefits of employee manualAn employee manual provides a consistent standard for all employees and helps ensure that everyone is aware of the company's expectations and policies. It also helps reduce misunderstandings and disputes between employers and employees because everyone is on the same page.

An employee manual can also serve as a legal document that can be used to defend the company in court in case of an employee lawsuit. It provides the employer with the opportunity to include policies regarding discrimination, harassment, and other legal issues.A good employee manual also includes clear procedures for addressing employee grievances, complaints, and disciplinary actions, which can help to resolve conflicts and improve employee relations.

To  know more about business interests visit:-

https://brainly.com/question/858225

#SPJ11

a) The statement that "Perfect Competition is bad for economic growth" and "it does not deliver economic welfare gains in the long run" is not entirely accurate. Perfect competition is actually considered to be an ideal market structure for promoting economic growth and maximizing economic welfare.

In perfect competition, there are many buyers and sellers, homogeneous products, perfect information, and ease of entry and exit into the market. This leads to several positive outcomes:

Efficient allocation of resources: Perfect competition encourages producers to allocate resources efficiently, as they must minimize costs and maximize productivity to stay competitive. This results in an optimal use of resources, leading to higher economic efficiency.

Productive efficiency: Perfect competition fosters competition among firms, driving them to constantly improve their production processes and reduce costs. This leads to lower average costs and promotes productive efficiency, which benefits consumers through lower prices.

Consumer surplus: Perfect competition often leads to lower prices, as firms compete to attract customers. This results in increased consumer surplus, as consumers can obtain products at prices closer to marginal cost.

Innovation and technological progress: While perfect competition may not provide individual firms with high profits, the competitive pressures can incentivize innovation and technological progress. Firms strive to develop new and improved products or more efficient production methods to gain a competitive edge.

Therefore, perfect competition can be seen as a beneficial market structure that promotes economic growth and enhances economic welfare by driving efficiency, consumer benefits, and innovation.

b) Patents are not considered a type of market failure but rather a form of intellectual property protection designed to incentivize innovation. Patents grant exclusive rights to inventors or innovators for a specific period, during which they can monetize their invention or innovation without competition.

In the context of pharmaceuticals, the statement suggests that patents lead to market failure because firms can maintain high prices and limit output, resulting in large profit margins. It argues that more competition would lead to welfare gains.

While it is true that pharmaceutical companies often enjoy high profit margins due to patent protection, it is important to consider the reasons behind patent systems. Patents provide incentives for pharmaceutical companies to invest significant resources into research and development (R&D) to discover new drugs. Developing a new drug involves substantial costs, including research, clinical trials, and regulatory approval.

Patent protection enables pharmaceutical companies to recoup their R&D investments and earn profits for a limited period. This exclusivity allows them to charge higher prices to cover the costs and risks associated with drug development.

However, it is also important to strike a balance between providing incentives for innovation and ensuring affordable access to essential medicines. Policymakers often employ measures such as compulsory licensing or generic competition to address concerns related to high drug prices and limited access.

While increasing competition can lower prices and potentially benefit consumers, it is crucial to consider the delicate balance between incentivizing innovation and ensuring affordable access to essential medicines for the overall welfare of society. Simply labeling patents as a market failure oversimplifies the complex trade-offs involved in pharmaceutical innovation and access to medicines.

To know more about economic growth click this link-

https://brainly.com/question/29621837

#SPJ11

After two years, Alisha will have $5,327.76 in her account. The average compound monthly interest rate for the two-year period is approximately 0.47%. The average yearly interest rate, which represents the equivalent effective annual interest rate, is approximately 5.73%.

To calculate the amount Alisha has in the account after two years, we need to apply the compound interest formula for each time period. In the first six months, the effective monthly interest rate is 0.3%, so the amount becomes $5,000 * (1 + 0.003)^6 = $5,089.15. For the next year, with a 0.5% effective monthly interest rate, the amount becomes $5,089.15 * (1 + 0.005)^12 = $5,228.89. Finally, for the last six months, the effective monthly interest rate is 0.8%, resulting in $5,228.89 * (1 + 0.008)^6 = $5,327.76.

To find the average compound monthly interest rate for the two-year period, we take the geometric mean of the three interest rates: [(1 + 0.003) * (1 + 0.005) * (1 + 0.008)]^(1/3) - 1, which is approximately 0.47%.

To determine the average yearly interest rate, we need to calculate the equivalent effective annual interest rate. The formula for this is (1 + r)^12 - 1 = (1 + 0.0047)^12 - 1, which gives us approximately 5.73%. Therefore, the average yearly interest rate for the two-year period is approximately 5.73%.

To know more about interest rate click here brainly.com/question/25720319

#SPJ11

Answer:

Incremental costs are differential costs, which implies that when selecting one alternative over another, incremental costs are the extra costs that will be incurred.

Explanation:

Incremental costs can be defined as the amount that a company's cost increases when there is a change in the activity level, sales volume, or output. Incremental costs can be differentiated from other cost types such as sunk costs and fixed costs. They are relevant in making business decisions.

Differential cost, on the other hand, is the difference between the total costs of two alternative courses of action. Incremental and differential costs are related concepts but they are different from each other. Differential costs help in decision-making between two different options and incremental costs determine the amount of cost increases when output or sales volume increases.

Therefore, the answer to the question is differential costs because incremental costs may be variable, fixed or sunk depending on the activity level or sales volume. The term "always" makes the answer false because it limits the choices to only one category of cost.

Thus, it is incorrect to say that incremental costs are always variable costs as incremental costs can be sunk or fixed costs. For instance, fixed costs such as rent and salaries are incremental costs because they increase when there is a change in the level of output.

In conclusion, incremental costs refer to the increase in total costs when the level of output changes while differential cost refers to the difference in cost between two alternatives.

Learn more about Incremental & Differential Costs.

https://brainly.com/question/32716737

#SPJ11

Linear regression is used to establish a relationship between continuous variables, whereas logistic regression is used to identify the possibility of the occurrence of an event by estimating the probability of the occurrence of an event. One statistic or metric that can be used as the validation assessment in the pruning of a classification tree is the Misclassification rate (MC).The process of using the validation assessment in the pruning of the maximal tree to obtain the optimal tree structure begins with generating the maximal tree. This is followed by finding the error rate of the tree when the dataset is split into training and validation sets. The misclassification rate (MC) is then used to select the best subtree. This process is continued until the optimal tree structure is obtained.

Linear regression and logistic regression have different objectives in statistical analysis. Linear regression attempts to establish a relationship between two continuous variables in which one variable is dependent on the other variable, while logistic regression determines the possibility of the occurrence of an event by estimating the probability of the occurrence of an event. Linear regression uses Ordinary Least Squares (OLS) regression to minimize the sum of the squared errors between the actual and predicted values of the dependent variable. On the other hand, logistic regression uses the maximum likelihood estimation method to determine the probability of the occurrence of an event by using the logistic function to transform a linear combination of predictor variables into a value between 0 and 1.

In classification tree pruning, the maximal tree is first generated, followed by computing the error rate of the tree when the dataset is split into training and validation sets. The validation assessment metric, such as Misclassification rate (MC), is then used to choose the best subtree. This process is continued until the optimal tree structure is obtained. The optimal tree structure is the tree that has the least number of nodes but provides the most accurate classification results.

Know more about Linear regression, here:

https://brainly.com/question/13328200

#SPJ11

Selling stock at $73 plus $8 again with a dividend of $8 will give a return rate of 21.92%. The rate of return is a measure that indicates the gain or loss on an investment relative to the amount invested. It is typically expressed as a percentage. The rate of return allows investors to assess the profitability and performance of an investment.

To calculate the rate of return, we need to consider the initial investment, final investment value, and any additional income received.

Initial investment: $73

Final investment value: $73 + $8 = $81

Dividend received: $8

Total return = Final investment value + Dividend - Initial investment

Total return = $81 + $8 - $73 = $16

Rate of return = Total return / Initial investment

Rate of return = $16 / $73 = 0.219178 (rounded to 6 decimal places)

Therefore, the rate of return is 0.219178, which is equivalent to 21.92%.

Learn more about Dividend: https://brainly.com/question/2960815

#SPJ11

Coase identified that externality problems occur when property rights have been poorly defined, resulting in conflicting resource uses. This is Option C from the given alternatives.

The Coase theory of social cost is an economic concept that suggests that when parties interact, the cost of those interactions affects third parties who have no say in the matter. It aims to address the problem of externalities, which occur when the actions of one party affect the welfare of others who are not involved in that transaction. He argues that the market can handle externalities as long as property rights are well-defined.

Coase also emphasized that if property rights are well-defined and transactions are costless, then the initial distribution of rights will not affect the efficient use of resources. This is because the parties can bargain and exchange the right to use the property according to their needs.

This way, the parties involved can reach a Pareto-efficient outcome. However, if transaction costs are high, Coase claims that it is inefficient for parties to bargain, and externalities may occur as a result.

Hence, the correct option is C.

Learn more about Coase theory:

https://brainly.com/question/14837886

#SPJ11

The Income statement for the year ended 31st December 2020 has net income before interest and tax (1,308,400). The Statement of financial position as of 31st December 2020 has Total assets of 801,600 and Total equity and liabilities of 2,180,800.

a) Income Statement for the Year Ended 31st December 2020:

Sales revenue 1,520,000

Less: Sales returns (12,000)

Net sales revenue 1,508,000

Less: Cost of goods sold:

Inventory at 1/1/2020 450,000

Add: Purchases 1,520,000

Less: Inventory at 31/12/2020 (176,000)

Cost of goods sold 1,794,000

Gross profit (286,000)

Less: Operating expenses:

Carriage outwards 20,400

Discounts 88,000

Wages and salaries 270,000

Postage and stationery (accrued) 28,000

Utility bills 10,000

Rent and rates 132,000

Sundry expenses 42,000

Depreciation expense:

Motor van (40% x 680,000) 272,000

Equipment (50% x 320,000) 160,000

Total operating expenses (1,022,400)

Net income before interest and tax (1,308,400)

b) Statement of Financial Position as at 31st December 2020:

Assets:

Motor van (680,000 - 128,000 - 272,000) 280,000

Equipment (320,000 - 104,000 - 160,000) 56,000

Inventory 176,000

Trade receivables (120,000 - 16,000 - 10,000) 94,000

Prepaid rent and rates 25,600

Prepaid postage and stationery 28,000

Cash 42,000

Bank 100,000

Total assets 801,600

Equity and Liabilities:

Capital 960,000

Accumulated depreciation: Motor van (128,000 + 272,000) 400,000

Equipment (104,000 + 160,000) 264,000

Allowance for receivables 10,000

Loan 160,800

Trade payables 54,000

Accrued wages and salaries 132,000

Total equity and liabilities 2,180,800

To know more about Income statement refer here:

https://brainly.com/question/31745960#

#SPJ11

Complete Question:

Zicco owns a provision shop at Keta. On 31st December, 2020 the following trial balance was extracted from her books: Dr. Cr. GH¢ GHE Capital (1/1/2020) 960,000 Motor van(cost) 680,000 Equipment (cost) 320,000 Accumulated depreciation: Motor van 128,000 Equipment 104,000 Inventory (1/1/2020) Purchases and sales 450,000 Returns 12,000 Carriage outwards Carriage inwards Trade Receivables Trade payables 120,000 Allowance for receivables 16,000 Bad debts Wages and Salaries 270,000 Discounts 88,000 Postage and Stationery Utility Bills 10% Loan 160,800 Rent & Rates Sundry expenses Cash Bank Personal drawings 3,108,800 1520,000 27,000 120,000 48,000 20,400 290,000 60,000 54,000 132,000 128,000 42,000 100,000 239,400 40,000 88,000 3,108,800

The following additional information was made available:
i) Inventory at 31st December, 2020 was valued at GH¢ 176,000.
ii) Depreciation at the rate of 40% on cost for Motor Van and 50% on Equipment on reducing balance method basis.
iii) An amount of GH¢ 28,000 is accrued in respect of Postage and Stationery at 31st December, 2020.
iv) Allowance for receivables is to be adjusted to GH 10,000 at 31st December, 2020 as a result of improvement in debt recovery efforts.

v) Rent and rates pre-paid amounted to Ghø25,600.

vi) The loan was contracted on 1st January, 2020. Provision should be made for the interest on loan.

Required: a) Prepare the Income statement for the year ended 31st December 2020

b) Prepare the Statement of financial position as at 31st December 2020

a. If a share has a beta (B) of 1.2, according to the Capital Asset Price Model (CAPM) what should it be returning?Using CAPM, we can calculate the expected return of a share of stock.

The formula for CAPM is:CAPM = RF + β(RM - RF)Where,RF = Risk-free rate of returnβ = Beta of the stockRM = Expected return of the marketSo, let's substitute the values given in the question into the formula:CAPM = 6.7% + 1.2(11.2% - 6.7%)CAPM = 12.3%Therefore, a share with a beta of 1.2 should be returning 12.3%.b. If it is actually returning 10.9%, is it over- or under-priced? Why?If the actual return of the share is less than the expected return, then it is underpriced. In this case, the expected return is 12.3% but the actual return is 10.9%, which means the share is underpriced.C. Construct a graph showing the Security Market Line (SML), and plot your results from (a) and (b) on it.The Security Market Line (SML) is a graphical representation of the CAPM. It shows the relationship between risk (beta) and expected return. The formula for SML is:SML = RF + β(RM - RF)Let's plot the SML with the given data and then plot the results from (a) and (b) on it. The risk-free rate is 6.7%, the expected return of the market is 11.2%, and the beta of the stock is 1.2. The expected return for the stock based on CAPM is 12.3% and the actual return is 10.9%. The graph below shows the SML with the data plotted on it.

To know more about stock visit:

https://brainly.com/question/31940696

#SPJ11

You've been offered a loan of $30,000​, which you will have to repay in 12 equal annual payments of $5,000​, with the first payment due one year from now.

To determine the interest rate on the loan,

we can use the present value of an annuity formula. We can solve for the interest rate.

PV = P * [(1 - (1 + r)^(-n)) / r]

Given that:

PV = Present Value (loan amount) = $30,000

P = Payment per period = $5,000

n = Number of periods = 12

Plugging in the values,

we can solve for r:

$30,000 = $5,000 * [(1 - (1 + r)^(-12)) / r]

Simplifying the equation:

6 = (1 - (1 + r)^(-12)) / r

6r = 1 - (1 + r)^(-12)

(1 + r)^(-12) + 6r - 1 = 0

Solving this equation requires numerical methods.

Using these methods, the interest rate on the loan is approximately 9.39.

To know more about annual payments here,

https://brainly.com/question/18958209

#SPJ4

The given statement, "A decrease in the price of peanut butter will cause a leftward shift of the supply curve of peanut butter," is false because instead of a leftward shift, there will be movement along the existing curve. The correct answer is option b.

Changes in price typically result in movements along the supply curve, not shifts. When the price of peanut butter decreases, suppliers may be willing to supply less of it at a lower price, resulting in a movement up along the supply curve.

This is because suppliers generally have an upward-sloping supply curve, indicating that they are willing to supply more at higher prices and less at lower prices.

Shifts in the supply curve occur due to factors other than price, such as changes in production costs, technology, input prices, or government regulations.

These factors can lead to an overall increase or decrease in the quantity supplied at each price level, causing the supply curve to shift either to the right (increase in supply) or to the left (decrease in supply).

Therefore, a decrease in the price of peanut butter would not cause a leftward shift in the supply curve of peanut butter.

So, the correct answer is option b. false.

Learn more about the supply curve here:

https://brainly.com/question/11717727

#SPJ11

The five factors of the 3X3 writing process that were most beneficial for my writing purposes were prewriting, drafting, revising, editing, and proofreading.

The five factors of the 3X3 writing process, including prewriting, drafting, revising, editing, and proofreading, were all instrumental in achieving my writing purposes. Prewriting helped me plan and organize my thoughts, drafting allowed me to generate content, revising helped me refine and improve my writing, editing polished the language and style, and proofreading ensured the accuracy and professionalism of the final piece. By following these steps, I was able to produce well-structured, coherent, and error-free written work

To know more about 3X3 writing process, visit :

https://brainly.com/question/14412075

#SPJ11

1. The contribution margin ratio is 47.5% and the break-even sales are $125,000.

2. The margin of safety is $75,000 in dollars and 375 units, and the degree of operating leverage is not applicable at the break-even point.

1. The contribution margin ratio can be calculated by subtracting the variable costs per unit from the selling price per unit, and then dividing the result by the selling price per unit. In this case, the contribution margin ratio is (200 - 105) / 200 = 0.475, or 47.5%.

To calculate the break-even sales, divide the total fixed costs by the contribution margin ratio. In this case, the fixed costs are 50 + 7.5% of sales. We'll need to find the sales amount that makes the contribution margin equal to the fixed costs. Using algebraic equations, we have 0.475 * Sales = 50 + 0.075 * Sales. Solving for Sales, we get Sales = 50 / (0.475 - 0.075) = $125,000.

2. The margin of safety in dollars can be calculated by subtracting the break-even sales from the actual sales. In this case, the margin of safety in dollars is $200,000 - $125,000 = $75,000.

The margin of safety in units can be calculated by dividing the margin of safety in dollars by the selling price per unit. In this case, the margin of safety in units is $75,000 / $200 = 375 units.

The degree of operating leverage can be calculated by dividing the contribution margin by the net operating income. In this case, the contribution margin is (200 - 105) = $95, and the net operating income is $0 (break-even point). Therefore, the degree of operating leverage is not applicable as there is no net operating income at the break-even point.

The complete question must be:

4 Croftsman Company recorded the following information for its main product 10 points Selling price per unit $200 Costs per unit (at the normal capacity of20,000 units) Direct material 50 Direct labour 30 Variable overhead 25 Fixed overhead 50 Sales Commission 7.5 % of sales eBook Print Reterences Required: 1.Compute the contribution margin ratio and break-even sales Contribution margin ratio Breakeven sales eBook Print 2.What is the margin of safety in dollars and units, and the degree of operating leverage Round degree of operating leverage to 2 decimal places.) References Dollars Units Margin of safety

Learn more about margin ratio:

https://brainly.com/question/29534784

#SPJ11

All of the following are examples of liability coverages, except: Debris removal. The correct option is A.

Coverages are often added to insurance policies to make them more comprehensive and to provide consumers with the protection they need. Liability coverages provide protection in the event that the insured causes harm to someone else or damages someone else's property. The insured, who may be a person, a business, or an organization, is typically responsible for paying for damages that result from an accident or incident caused by them. There are several types of liability insurance coverage.

They are as follows: General Liability Insurance, Automobile Liability Insurance, Professional Liability Insurance, Product Liability Insurance, Umbrella Liability Insurance, Employment Practices Liability Insurance, Environmental Liability Insurance, Cyber Liability Insurance, Marine Liability Insurance, Railroad Liability Insurance, Worker’s Compensation and Employers Liability Insurance.

To know more about Insurance refer to:

https://brainly.com/question/25855858

#SPJ11