Answer:
In the kinked demand curve theory, price elasticity of demand is GREATER at prices above the kink than below the kink.
It follows that a price hike above the kink will reduce quantity demanded by A PROPORTIONALLY HIGHER AMOUNT than a price cut below the kink will REDUCE IN A LESS THAN PROPORTIONAL AMOUNT THE quantity demanded.
Explanation:
A kinked demand curve refers to a demand curve that is not a straight line, and the price elasticity of demand varies depending on the price of the goods or services. The kinked demand curve model is generally used when trying to explain how oligopolies exist and why their prices tend to be sticky or rigid above the kink of the curve (due to higher price elasticity).
A customer comes into the store to return a gallon of milk. She says she bought it earlier today, but the due date on the gallon expired yesterday. She asks to exchange it for another gallon of milk, but your manager is not in the store right now. What do you do? A Ask the customer to bring the milk back tomorrow when your manager will be in the store. B Apologize for the expired milk and offer to replace it. C Apologize, let her know that you can't accept the milk once it has expired, but the milk should still be good for a few more days. D Provide her with a new gallon of milk, but let her know that she needs to check the dates on the milk the next time she makes a purchase.
Answer:
B Apologize for the expired milk and offer to replace it.
Explanation:
Option B is the only reasonable action in this case in order to preserve customer loyalty. However, the store should be able to identify expired products before customers are allowed to buy them. Keeping products that are nearing their expiration date in store shows some lack of reasonable care. It also questions the stocking system of the store. For goods that have expiration dates, it is better to ensure that they are sold on the first-in, first-out basis.
Harvey is a self-employed accountant with earned income from the business of $120,000 (after the deduction for one-half of his self-employment tax). He uses a defined contribution Keogh plan. What is the maximum amount Harvey can contribute to his retirement plan in 202
Answer:
$24,000
Explanation:
It is mentioned in the question that, Harley who is a self employed accountant has an income from his business of 1,20,000 dollar, which is after the one half deduction of his self employment tax.
He uses a Keogh contribution plan.
Now, due to reducing of the earned income that is base by a one-half of his self-employment tax and by the contribution itself, the permissible 25% contribution is reduced to an effective of 20% contribution rate.
So, 20% of $120,000 or $53,000 whichever is LESS
20% of $120,000 = $24,000
Hence, the maximum amount Harvey contributes to his retirement plan is $24,000.
Leverage Corporation sells two products: Regular and Supreme. Leverage sells three Regulars for every two Supremes. The Regular sells for $20 each with variable costs of $11 each, whereas the Supreme sells for $25 each with variable costs of $15 each. If fixed costs are $21,000, what is the breakeven point in unit
Answer:Break even points of the two propduct =2,234.04 units With each product having 1,340 .4 units for regular and supreme with 893.6units
Explanation:
Product--- Regular
Contribution Margin per unit = Selling price - variable price
=$20-$11=$9
Product--- Supreme
Contribution Margin per unit = Selling price - variable price
=$25-$15=$10
Product mix are in the ratio 3: 2 therefore
Supreme contains 3/3+2 x 100 = 60 %
Regular = 2/3+2 x 100 = 40%
Weighted Average Contribution Margin for each product becomes
Regular =$9 x 60%= 5.4
Supreme =$ 10x 40%-=4.0
Total= 9.4
Break even points of the two propduct =Total Fixed Cost /Weighted Average Contribution Margin
$21,000.00 /9.40 = 2,234.04 units
`With each units having
Regular Supreme
3 : 2
60% 40%
2,234.04 x 60% 2,234.04 x 40%
1,340.4 units 893.6units
Suppose that the average time before breakdown is normally distributed with a mean of 2.5 weeks and a standard deviation of .4 weeks. If breakdowns cost an average of $1,200 and preventive maintenance costs $800, what is the optimal maintenance interval
Answer:
2.67 weeks
Explanation:
Optimal maintenance is the discipline within operations research concerned with maintaining a system in a manner that maximizes profit or minimizes cost.
DATA
Preventive Cost = 1200
Breakdown cost = 800
Ratio = Preventive cost / breakdown cost
Ratio = 1200 / 800
Ratio = 0.67
Z value for 0.67 = 0.44
Optimal maintenance interval = Mean time + Z(Standard deviation)
Optimal maintenance interval = 2.5 + 0.44(0.4)
Optimal maintenance interval = 2.5 + 0.176
Optimal maintenance interval = 2.67 weeks
n the purchase of a new computer monitor, which of the following is an example of a user? Multiple Choice a supply manager who helps write specifications a secretary whose computer monitor is being replaced an IT manager who supplies information for evaluating alternatives a purchasing manager who arranges the terms of the sale a receptionist who controls the flow of information
Answer:
A secretary whose computer monitor is been replaced.
Explanation:
As it been discussed in the scenario above, a secretary is mostly the frequent user to a monitor as the case may be as it allows in focusing of the eye in an exceedingly proper and cozy manner, not having to place up with a rather fuzzy image while typing or a movie/game that appears as if the most character features a shadowy ghost following them. an honest monitor should allow you to work out what you're doing without having to strain your eyes or tilt your head to urge to the simplest viewing angle.
Two machines, A and B, which perform the same functions, have the following costs and lives. Type PV Costs Life Machine A $6,000 5 yr Machine B $8,000 7 yr Which machine would you choose
Answer:
Machine A
Explanation:
See attachment for tabulation
Sally’s Hair Salon purchases hair dye and records the dye as an asset. As they are used, they are expensed. This is an example of:
Answer:
Matching
Explanation:
The scenario mentioned in the question is based on the accounting principle of Matching which requires that the asset (which is recorded at the time of its purchases) to be distributed and matched over the time of its useful life in order to balance the cost over a period (in the form of expenses). This recording of the asset as an expenses when it is used is known as depreciation.
On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $49,000 and $2,150, respectively. During 2022, Coolwear wrote off $700 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,900 at December 31, 2022. Bad debt expense for 2022 would be:______
Answer:
$4,450
Explanation:
Bad debt expense is the expenses that a company incur as a result of the debt owned to the company by its customers, which are not recoverable.
The bad debt expenses for Coolwear inc. would be calculated as;
Bad debt expense = Allowance for uncollectible accounts - (Uncollectible account balance - accounts receivable written off)
= $5,900 - ($2,150 - $700)
= $4,450
Therefore, bad debt expense for 2022 would be $4,450
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The noncontrolling interest shares of Float Corp. are not actively traded. 5) What is the total amount of goodwill recognized at the date of acquisition? A) $0. B) $150,000. C) $170,000. D) $120,000. E) $250,000.
Answer: $150,000
Explanation:
The total amount of goodwill that'll be recognized at the date of acquisition will be calculated as follows:
First, we need to calculate the goodwill of controlling interest. This will be:
= $1600000 - ($1850000 × 80%)
= $1600000 - ($1850000 × 0.8)
= $1600000 - $1,480,000
= $120000
Then, we calculate the total amount of goodwill that'll be recognized at the date of acquisition which will be the goodwill of controlling interest divides by the percentage of ownership. This will be:
=$120000/80%
= $120000/0.8
= $150,000
Your phone stopped working and you use your phone for calls, texting and checking emails. You went to the store to buy a cheap phone that just serves your needs but ended up buying a $1500 top of the line phone that does way more than what you need and also is very stylish. What need did the new phone satisfy
Answer:
Psychological needs
Explanation:
Since in the question it is mentioned that suddenly your phone stop working and you use the mobile for various reasons so you went to the store for purchase a cheap mobile that serves your needs so here the psychological needs would be considered as it is likely additional fulfilling needs i.e. luxury or expensive items
Therefore the same is to be considered
what is the change in total profit of cleaning the fifth driveway if the price Mr. Plow can charge is $10 per driveway
Answer:
Explanation:-1
Suppose an economy has a real interest rate of 3% and an inflation rate of 5%. What's the exact nominal interest rate, and what's the approximate value of it
Answer:
Nominal interest rate= 0.08 = 8%
Explanation:
Giving the following information:
Real interest rate= 3%
Inflation rate= 5%
To calculate the nominal interest rate, we need to use the following formula:
Real interest rate= nominal interest rate - inflation rate
Nominal interest rate= real interest rate + inflation rate
Nominal interest rate= 0.03 + 0.05
Nominal interest rate= 0.08 = 8%
At the last minute, Jenna considers investing in Coca-Cola stock at a price of $55.55 per share. The stock just paid an annual dividend of $1.76 and she expects the dividend to grow at 4% annually. If the next dividend is due in one year, what expected return is Coca-Cola stock offering
Answer:
the expected return is Coca-Cola stock offering is 7.3%
Explanation:
The computation of the expected return is shown below:
Expected return is
= (D1 ÷ Current price) + Growth rate
= [($1.76 × 1.04) ÷ 55.55] + 0.04
= (1.8304 ÷ 55.55) + 0.04
= 7.3%
Hence, the expected return is Coca-Cola stock offering is 7.3%
The same is to be considered
We simply applied the above formula
For the Dividend Growth Model, the equation can be written as follows: P0 = =D1/(RE – g). How can this equation be rearranged?
Answer:
Re = (D1 ÷ P0) + g
Explanation:
The rearrangement of the equation is as follows:
Given equation is:
P0 = D1 ÷ (Re - g)
where,
P0 = Price of the stock
D1 = Dividend at year 1
Re = Required rate of return
g = Growth rate
It can be rearrange as
Re - g = (D1 ÷ P0)
Or
Re = (D1 ÷ P0) + g
The Re = (D1 ÷ P0) + g is the correct answer and the same is to be considered
When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of
Answer:
i do not know
Explanation:
g The type of corporation that generally has the highest number of shareholders is the Group of answer choices nonprofit corporation. professional corporation. public corporation. publicly held corporation.
Answer:
publicly held corporation.
Explanation:
The publicly held corporation refer to those corporations that is listed on the stock exchange markets also the majority of the stock owned would be taken by dispersed population and for majority stakes there is no individual
Therefore the type of corporation that has the highest number of shareholders is a publicly held corporation and the same is to be considered
Book sales on the Internet (in billions of dollars) in year x are approximated by f(x) = 1.84 +2.1. In x, where x = 0 corresponds to 2000. How much will be spent on Internet book sales in 2008? Round to the nearest tenth.
a. 6.2 billion
b. 8.0 billion
c. 3.9 billion
d. 6.7 billion
Answer: 6.2 billion
Explanation:
f(x) = 1.84 +2.1 In x
where
x = 0 corresponds to 2000.
In 2008, x will be = 8
Therefore,
f(x) = 1.84 +2.1 Inx will be:
f(x) = 1.84 +2.1 In8
= 1.84 + 4.366
= 6.206
= 6.2 billion
Sunshine Inc. reported net credit sales of $360,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $650. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense
Answer: $3,600
Explanation:
Bad Debt expense using the percentage of sales method is the percentage of net sales that is usually lost to bad debts and that percentage in this case is 1%.
Bad debt expense will therefore be;
= Net credit sales * Bad debt percentage
= 360,000 * 1%
= $3,600
Last year your company compiled employee satisfaction results using employee retention data. This year, they will use the scores from employee surveys. Which problem will you face when analyzing the data
Answer:
The are hard or not possible to compare since you are not looking at the same data.
You will face recency issues or recency bias when analysing the data.
The recency bias happens when we remember the last ideas, arguments or items more clearly than other things that were said first or happened first.
Employee retention simply has to do with a firms ability to retain its workers. Employee retention is important because of the following reasons:
It creates opportunities for workers to growIt gives job fulfillmentIt gives room for more experienced workersImproves culture of the firmCuts costs and it raises benefits.When analyzing the data, You would be better able to retain data from more recent surveys compared to older ones.
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what factors do you think led to the rise of this additional source of income for composers and musicians
Answer: See explanation
Explanation:
The factors that led to the rise of this additional source of income for composers and musicians were due to the fact that music began to be widely accepted and the publicity also helped.
In the classical era, it should be noted that the kings supported musicians as music was played at palace and were also part of rituals. Musicians were called to different ceremonies and were rewarded handsomely for their music.
It was then widely accepted among the people in the society. The number of musicians increased as well and they became popular, made more money and also became popular.
.
On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625. On April 30, Robert LLC had not sold the inventory. The net realizable value (NRV) of unit A was now $685 while the net realizable value of unit B was $550. The adjustment associated with the lower-of-cost-or-NRV method on April 30 will be: Multiple Choice
Answer:
$1,200
Explanation:
purchase cost net realizable value LCM
unit A $650 $685 $650
unit B $625 $550 $550
total $1,275 $1,200
When you apply the lower of cost or market value, you must value your inventory at whichever is lower between historic cost (purchase cost) and the net realizable value (NRV). Any adjustments made will increase cost of goods sold and decrease inventory. In this case, the adjusting journal entry should be:
Dr Cost of goods sold 75
Cr Inventory 75
An nn-year 1,000 par value bond with 8 percent annual coupons has an annual effective yield of ii, i>0i>0. The book value of the bond at the end of year 3 is 1,099.84 and the book value at the end of year 5 is 1,082.27. Calculate the purchase price of the bond.
Answer:
the purchase price of the bond is $1,106.125
Explanation:
The computation of the purchase price of the bond is shown below:
But before that we have to find the following amount
= ($1,082.7 - $1,099.84) ÷ ( 5 years - 3 years)
= - 6.285
Now the purchase price of the bond is
= $1,087.27 + (-6.285) × (-3)
= $1,106.125
hence, the purchase price of the bond is $1,106.125
The same is to be considered
You bought a STRIP at 96 dollars with maturity of 3 years. Calculate the yield to maturity of this STRIP _______% (keep two decimal points)
Answer: 0.0136
Explanation:
The following information can be gotten from the question:
Current price = $96
Par Value = $100
Time to Maturity = 3 years
Semiannual Period = 3 × 2 = 6
The yield to maturity of this STRIP will be calculated as:
Let the semiannually yield to maturity be represented by y.
96 = 100/(1 + y)^6
Cross multiply
96(1+y)^6 = 100
Divide both side by 96
(1+y)^6 = 100/96
(1+y)^6 = 1.0417
1 + y^6 = 1.0417
y^6 = 1.0417 - 1
y^6 = 0.0417
y = 0.0068
Therefore, the semiannual YTM = 0.0068
Annual YTM will now be:
= 2 × Semiannual YTM
= 2 × 0.068
Annual YTM = 0.0136
1. In the 1990’s, Enterprise Rent-A-Car was a highly-profitable and fast-growing market leader concerned about protecting their place in the market. Based on your knowledge of the rental car market, would you conclude that Enterprise was operating in a Red Ocean or Blue Ocean competitive environment? Frame your answer in the context of at least three of the descriptors used in the Red Ocean / Blue Ocean model (and discussed in class).
Answer:
Enterprise Rent-A-Car was definitely operating in a Red Ocean enviroment.
Explanation:
This is because Red Ocean enviroments are characterized by stiff competition, market saturation, and innovation lagging, and the European market for Rental cars was already saturated in the 1990s.
This is why, despite being a market leader, the firm was anyway very worried about keeping its position, and spent a great deal of resources in doing so. In a Blue Ocean Strategy, the situation would be much more relaxed simply because the market would have far less competition (even none), and large tracts of the market would still be untapped.
Paying a premium of $10 per bond, Ms. Tracey Pringle bought 10 municipal bonds with 20 years to maturity. Ten years later, she sold the bonds for 103. For tax purposes, she has a:___________A) $300 loss.B) $250 gain.C) $200 loss.D) $200 gain.
Answer:
B) $250 gain.
Explanation:
The cost per bond is $1,010.
The amortization amount each year is 10/20 years = $0.50 per year. $0.50 per year × 10 years = $5 per bond.
After 10 years, the adjusted cost basis is $1,005 per bond.
She sells the bonds for $1,030 per bond. $1,030 − $1,005 = $25 per bond
25 × 10 = $250 gain.
As a top manager, Joanna works with others on her team every day in making important corporate decisions. Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time. This approach is referred to as _____.
Answer:
Brainstorming.
Explanation:
Brainstorming is a creativity and problem-solving technique adopted by individuals or group of people by spontaneously gathering ideas through intensive thinking.
As a top manager, Joanna works with others on her team every day in making important corporate decisions. Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time. This approach is referred to as brainstorming.
A learning organization is one which is typically characterized by creating an enabling environment for growth, training, and development of its employees. This opportunity and incentives help employees to engage in critical and creative thinking, research, and development. Consequently, employees would become more confident, brilliant, intelligent, knowledgeable and professionals in their assigned positions or roles, thus helping the organization to achieve its aim, goals and objectives.
In a nutshell, this ultimately implies that it's very important and necessary that organizations sponsor brainstorming sessions and reward employees awesomely, when an out-of-the box idea leads to organizational improvements.
Based on the provides information, for Joanna to generate as many alternatives to problems as possible in a short amount of time, she needs a brainstorming approach .
Brainstorming can be regarded as a technique used which serves as group discussion to produce ideas or solve problems.
Therefore, Joanna to generate as many alternatives to problems as possible in a short amount of time.
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Jepson uses the periodic inventory system and the gross method of accounting for purchases. The journal entry that Jepson will make on September 12 is:
Answer and Explanation:
The journal entry is shown below:
Purchases $6,000
To Account payable $6,000
(Being purchases on the account is recorded)
Here we debited the purchase as it increase the inventory while on the other hand the account payable is credited as it also increased the liability
So the above entry should be recorded
Wildhorse Ski Shop signs a three-month note payable to help finance increases in inventory for the winter ski season. The note is signed on October 1, 2022 in the amount of $25200 with annual interest of 9%. What is the adjusting entry to be made on December 31, 2022 for the interest expense accrued to that date, assuming that no entries have been made previously to accrue interest?
Answer:
December 31, 2022, accrued interest expense
Dr Interest expense 567
Cr Interest payable 567
Explanation:
Interest expense = $25,200 x 9% x 3/12 = $567
Generally when we calculate interest expense we use a 360 day year, so we assume that every month has exactly 30 days. Only when we are told to calculate based on a 365 day year, we need to count every single day and then divide by 365.
World Spice Salsa, a manufacturer of salsa, sells its product throughout the United States and all over the world. The company has developed region-specific salsas like Five Spice Salsa for its customers in China, saffron and cumin salsa for customers in India, and even red beans and rice salsa for its customers in New Orleans. World Spice Salsa has employed ________ segmentation in this case.
a. behavioral
b. psychographic
c. lifestyle
d. demographic
e. geographic
Answer:
World Spice Salsa has employed ________ segmentation in this case.
e. geographic
Explanation:
Geographic segmentation is the grouping of potential customers by country, state, region, city, or even neighborhood. It is one of the four main types of market segmentation employed by marketers. Market segmentation is the process of separating a market into sub-groups, in which its members share common characteristics, such as geographic, demographic, psychographic, and behavioral.
Amber is interested in investing her money in a mutual fund that invests in short-term debt securities issued by governments and large corporations. She also wants to be able to write checks and reinvest interest income from her investments. Which institution would Amber most likely choose for her investments
Question Completion:
Options to choose from:
a brokerage firm
a money market bank account
a money market fund
an insurance company
a pension fund
Answer:
Amber will likely choose for her investments:
a money market fund
Explanation:
For example, Amber can invest in the Vanguard Treasury Money Market or the Fidelity Money Market. These are money market funds or mutual funds that invest in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries).
Amber should choose for her investment is a money market fund.
The information regarding the money market fund is as follows:
It should be invested in highly liquid. It involved the cash, cash equivalent having short-term maturity period. It is like the mutual funds that are issued by the government and the large corporations.Therefore we can conclude that Amber should choose for her investment is a money market fund.
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