Answer:
Smith is guilty of Bribery and corruption While slick is guilty of breaking health code and trying to bribe a public officer.
Explanation:
Bribery has occurred because Smith's judgment has been paid for/influenced through the $5000 he has received from Slick. Money he plans to use on a boat. Smith has solicitated a bribe and is guilty of bribery. Since he sought for the bribe, he has committed a crime of bribery solicitation. After receiving the money, he committed the crime of accepting a bribe. When additional sums of money were requested, Smith further committed the crime of extortion and blackmail. He has been shown to be greedy.
Slick is guilty of trying to bribe a public official to escape the payment of fines and also guilty of violating health codes.
A sewage treatment revenue bond issue is being underwritten on a negotiated basis. The offering consists of $50,000,000 par value of term bonds. The underwriter has agreed to a spread of $45.00 for each $5,000 bond. The manager has set the additional takedown at $20.00 per bond and the selling concession at $22.00 per bond. If a selling group member sells a $5,000 par value bond directly to the public, the selling group member earns:____________
Answer:
The multiple choices are :
a.$8
b.$20
c.$22
d.$45
The correct option is C.$22
Explanation:
The earnings accruing to the selling group is the selling concession of $22 per $5,000 per bond.
Option A is obviously wrong as there is nothing in the questions that suggest earnings of $8 per bond for the selling group.
Option D is wrong as well because $45 per bond is the spread which is the extra yield to bondholders when compared to investment in government securities
Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with each product are as follows:Year Liquid Soap Body Lotion 1 $170,000 $90,000 2 150,000 90,000 3 120,000 90,000 4 100,000 90,000 5 70,000 90,000 6 40,000 90,000 7 40,000 90,000 8 30,000 90,000Total $720,000 $720,000a. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line. b. Why is one product line preferred over the other, even though they both have the same total net cash flows through eight periods?
Answer:
Liquid soap
B. The liquid soap would be chosen because its pay back period is shorter than that of the body lotion.
even though both projects have the same total cash flows, the liquid soap project has greater cash flows in the ealier years compared to the other project. This makes the amount invested to be recovered more quickly and this makes it more desirable.
Explanation:
Cash payback period measures how long it takes for the amount invested in a project to be recovered from the cumulative cash flow.
Cash payback for the liquid soap.
Amount invested = $-540,000
In the first year , the amount recovered = $- 540,000 + $170,000 = $-370,000
In the second year , the amount recovered = $-370,000 + 150,000 = $-220,000
In the third year , the amount recovered = $- 220,000 + 120,000 =$ -100,000
In the 4th year, the amount recovered = $ -100,000 + $100,000 =0
The total amount invested is recovered In the 4th year
Cash payback period for the body option =
Amount invested / net cash flows
$540,000 / $90,000 = 6 years
The amount invested is recovered In the 6th year
The liquid soap would be chosen because its pay back period is shorter than that of the body lotion.
even though both projects have the same total cash flows, the liquid soap project has greater cash flows in the ealier years compared to the other project. This makes the amount invested to be recovered more quickly and this makes it more desirable.
I hope my answer helps you
Job 731 was recently completed. The following data have been recorded on its job cost sheet: Direct Materials: $2,500 Direct Labor hours: 100 Direct Labor wage rate: $10.00 per hour The company applies manufacturing overhead on the basis of direct labor cost. The pre-determined overhead rate is 150% of direct labor cost. The total cost that would be recorded on the job cost sheet for job 731 would be:
Answer:
Total cost= $5,000
Explanation:
Giving the following information:
Job 731:
Direct Materials= $2,500
Direct Labor hours= 100
Direct Labor wage rate: $10.00 per hour
First, we need to calculate the direct labor cost and then allocate overhead:
Direct labor= 100*10= $1,000
Allocated overhead= 1,000*1.5= $1,500
Total cost= 2,500 + 1,000 + 1,500
Total cost= $5,000
Comparing marginal revenue to marginal cost (i) reveals the contribution of the last unit of production to total profit. (ii) is helpful in making profit-maximizing production decisions. (iii) tells a firm whether its fixed costs are too high. a. (i) only b. (i) and (ii) only c. (ii) and (iii) only d. (i) and (iii) only
Answer:
B
Explanation:
Marginal revenue is defined as an incremental revenue generated from the sales of an additional unit of a product and services while a a marginal cost is an incremental cost incurred from the production of additional unit of a goods and services
Looking at these definitions , it can be inferred that marginal revenue reveals the contribution of the last unit of production to the total unit as well as helping in making profit maximizing decision in a production process
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. CashReceipts CashpaymentsJanuary$525,000 $475,000 February 400,000 350,000 March 450,000 525,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $30,000 on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1.
Prepare monthly cash budgets for each of the first three months of next year.
Answer:
Kayak Co.
Cash Budgets for three months:
January February March
Beginning Balance $30,000 $30,000 $58,694
Loan Balance -60,000 -10,600 0
Cash Receipts 525,000 400,000 450,000
Cash Payments -475,000 -350,000 -525,000
Interest on Loan -600 -106 0
Loan Receipt (Payment) 10,600 -10,600 46,306
Ending Balance 30,000 58,694 30,000
Explanation:
A cash budget is an estimate of the cash payments and cash receipts. It helps management to know when to borrow funds to meet required minimum cash balance and when to repay borrowed funds. It is an important managerial tool for making decisions on the management of the company's cash flows.
Meson Productions is a price taker. Meson produces large spools of electrical wire in a highly competitive market; thus, the company uses target pricing. The current market price of the electric wire is $770 per unit. The company has $3,000,000 in average assets, and the desired profit is a return of 5% on assets. Assume all products produced are sold. The company provides the following information:
Sales volume 110,000 units per year
Variable costs $660 per unit
Fixed costs $14,000,000 per year
If variable costs cannot be reduced, how much reduction in fixed costs will be needed to achieve the profit target?
A. $7,750,000
B. $7,600,000
C. $12,150,000
D. $12,000,000
Answer:
Instructions are below
Explanation:
Giving the following information:
The current market price of the electric wire is $770 per unit.
The company has $3,000,000 in average assets, and the desired profit is a return of 5% on assets.
Sales volume 110,000 units per year
Variable costs $660 per unit
Fixed costs $14,000,000 per year
The company's objective is 5% of average assets. In this case, $150,000.
Total contribution margin= 110,000*110= 12,100,000
Fixed costs= (14,000,000)
Net operating profit= (1,900,000)
Target profit= 150,000
Target fixed costs= Contribution margin - target profit
Target fixed costs= 12,100,000 - 150,000= 11,950,000
Prove:
Total contribution margin= 110,000*110= 12,100,000
Fixed costs= (11,950,000)
Net operating profit= 150,000
Iron Works International is considering a project that will produce annual cash flows of $37,200, $45,900, $56,600, and $22,100 over the next four years, respectively. What is the internal rate of return if the project has an initial cost of $113,800
Answer:
IRR is 16.38%
Explanation:
The formula for the internal rate of return (IRR) is very useful in this case.
=IRR(values)
The values , in this case, are the cash flows which consist of cash outflow of $113,800 at the inception followed by cash inflows in the succeeding years as shown in the attached.
It costs Garrison Company $9.50 of variable and $5.20 of fixed costs to produce one bathroom scale which normally sells for $19.70. A foreign wholesaler offers to purchase 2,600 scales at $12.20 each. Garrison will incur special shipping costs of $1.70 per scale if the order is accepted. Garrison has sufficient unused capacity to accommodate the order. If the special order is accepted, what will be the effect on net income?
Answer:
Effect on income= $2,600 increase
Explanation:
Giving the following information:
It costs Garrison Company $9.50 of variable costs.
A foreign wholesaler offers to purchase 2,600 scales at $12.20 each. Garrison will incur special shipping costs of $1.70 per scale if the order is accepted.
Because it a special offer and there is unused capacity, we will not take into account the fixed costs:
Effect on income= units sold*contribution margin per unit
Effect on income= 2,600*(12.2 - 9.5 - 1.7)
Effect on income= $2,600 increase
The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31. 2019. The drum sets sell for $500 each. The company has a 25% income tax rate. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income.
Answer:
$0.72
Explanation:
total direct materials = $125,000
total variable selling costs = $15,000
total variable costs = $140,000
variable cost per unit = $140,000 / 1,000 units = $140 per unit
contribution margin ratio = (sales price - variable cost) / sales price = ($500 - $140) / $500 = 72%
this means that per dollar of sales, $0.72 are left to cover fixed costs and contribute to operating income
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $580,000, variable expenses of $301,600, and traceable fixed expenses of $186,500. The Alpha Division has sales of $510,000, variable expenses of $178,500, and traceable fixed expenses of $222,100. The total amount of common fixed expenses not traceable to the individual divisions is $235,500. What is the company's net operating income? Select one: a. $374,400 b. $201,300 c. $609,900 d. ($34,200)
Answer:
Net income= -$34,200
Explanation:
Giving the following information:
Beta Division:
Sales= $580,000
Variable expenses= $301,600
Traceable fixed expenses of $186,500.
Income= 91,900
Alpha Division:
Sales of $510,000
Variable expenses of $178,500
Traceable fixed expenses of $222,100.
Income= 109,400
The total amount of common fixed expenses not traceable to the individual divisions is $235,500.
We need to deduct from the income of each division the not traceable fixed costs.
Net income= 91,900 + 109,400 - 235,500
Net income= -$34,200
What are five foundations of economics?
Answer:
incentives, trade-offs, opportunity cost, marginal thinking, and the principle that trade creates value.
Explanation:
Crystal Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $80 per unit, of which $54 is product cost and $26 is selling and administrative expenses. In addition, the total cost of $80 is made up of $40 variable cost and $40 fixed cost. The desired profit is $55 per unit. Determine the markup percentage on product cost.
Answer:
Mark-up = 101.9%
Explanation:
Mark up is the percentage of the product cost that is made as profit. It is profit expressed as a percentage of the product cost.
Mark-up = profit/product cost × 100
Mark-up = $55/54 × 100 =101.85%
Mark-up = 101.9%
Answer:
Explanation:
Mark up percentage = [ (desired profit ) + (Total selling and administrative expenses) ] / total product cost
Desired profit = $55
Total selling and administrative expenses = $26
Total cost = $80
($55 + $26)/80 = 1.0125
1.0125 - 1 = 0.0125 = 1.25%
I hope my answer helps you
Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 16.000 units per year at the yuan equivalent of $25.000 each. the Chinese yuan (renminbi) has been trading at Yuan8.40/$, but a Hong Kong advisory service predicts the renminbi will drop in value next week to Yuan9.10/$, after which it will remain unchanged for at least a decade. Accepting this forecast as given, Manitowoc Crane faces a pricing decision in the face of the impending devaluation. It may either (1) maintain the same yuan price and in effect sell for fewer dollars, in which case Chinese volume will not change; or (2) maintain the same dollar price, raise the yuan price in China to offset the devaluation, and experience a 10% drop in unit volume Direct costs are 75% of the U.S. sales price. a. What would be the short-run (one-year) impact of each pricing strategy? Which do you recommend? If Manitowoc Crane maintains the same yuan price and same unit volume, what will be the firm's gross profits? (Round to the nearest dollar.) b. If Manitowoc Crane maintains the same dollar price, raises the yuan price in China to offset the devaluation, and experiences a 10% drop in unit volume, what will be the firm's gross profits? (Round to the nearest dollar.) Which do you recommend?
Answer:
Explanation:
a) Yuan price before devaluation = 25000 × 8.4 = Y210,000
Dollar price after devaluation = 210000/9.1 = $23,076.92
Total sales = 16000 × 23076 = 369230720
COGS = 16000 × 25000 × 75% = 300000000
Gross profit 69230720
Dollar price after devaluation = $25000
Total sales = 16000 × 90% × 25000 = 360000000
COGS = 16000*90%× 25000 ×75% = 270000000
Gross profit 90000000
b) Maintaining the same dollar price is better because it yields higher profits.
Place in order the events that occur in the short run when the Federal Reserve enacts expansionary monetary policy.
a. The increased borrowing leads to increased investment and purchasing of goods and services.
b. The aggregate demand curve shifts rightward.
c. Market equilibrium shifts toward more money being lent at a lower interest rate.
d. As the Fed buys bonds, new money enters the loanable funds market.
The order should be
1. As the fed buys bonds, new money enters the loanable funds market.
2. Market equilibrium shifts towards more money being lent at lower interest rates.
3. The increased borrowing leads to increased investment and purchasing of goods and services
4. The aggregate demand curve shifts rightwards.
The following information should be considered:
In the case when the federal reserve should considered the expansionary monetary policy so it purchased the bonds from the open market. The banking system liquidity should increased but the lending rate is decreased. Now if the rate of interest is less so the spending in an investment should be increased.Due to this, it trigerred the economic growth and the aggregrate demand curve should be shifted to the right.
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In an indefinitely repeated game, a firm might use a ________ to ________ a rival that defects from a cooperative strategy. A. trigger strategy; threaten B. trigger strategy; punish C. legal maneuver; sue D. tacit threat; dissuade
Answer:
Option B is correct
Explanation:
In an indefinitely repeated game, a firm might use a trigger strategy to punish a rival that defects from a cooperative strategy. A trigger strategy threatens other players with a punishment of a worse level if they deviate from the decided action profile.
In this game, players interact repeatedly with each other which might foster cooperation. Repeated games mean a situation in which the same stage game is played at each date.
Mr. Pine, a self-employed engineer in Boston, traveled to Chicago in order to attend a course on new engineering techniques. He spent 2 weeks attending the course and remained in Chicago for an additional 6 weeks on personal matters. The air flight cost $200, hotel $600, meals $320, and the tuition for the course $500. How much of these expenses may Mr. Pine deduct on his return
Answer:
$930
Explanation:
Kindly check attached picture for explanation
A company establishes a petty cash fund for $470. By the end of the month, employees had made the following expenditures from the fund: supplies, $139; fuel for deliveries, $123; postage, $76; miscellaneous, $40. Record the entry to recognize expenditures from the petty cash fund.
Answer:
A petty cash fund is created by debiting the petty cash account and credited to the cash account
The expenses made is debited to the respective expenses account and then credited to the cash account
Explanation:
petty cash = $470
Expenditures made by employees :
supplies = $139
Fuel for deliveries = $123
postage = $76
Miscellaneous = $40
NOTE : A petty cash fund is created by debiting the petty cash account and credited to the cash account
The expenses made is debited to the respective expenses account and then credited to the cash account
ATTACHED IS THE JOURNAL ENTRY
Powell Plastics, Inc. (PP) currently has zero debt. Its earnings before interest and taxes (EBIT) are $80,000, and it is a zero growth company. PP’s current cost of equity is 10%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. Assume that PP is considering changing from its original capital structure to a new capital structure with 35% debt and 65% equity. This results in a weighted average cost of capital equal to 9.4% and a new value of operations of $510,638. Assume PP raises $178,723 in new debt and purchases T-bills to hold until it makes the stock repurchase. PP then sells the T-bills and uses the proceeds to repurchase stock. How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase?
Answer:
How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase?
6,500 stocks remaining at $64.33 each stockExplanation:
EBIT $80,000
zero growth rate
Cost of equity (Re) 10%
tax rate 40%
10,000 common stocks outstanding at $48
they want to change from 100% equity to 35% debt and 65% equity
WACC = 9.4%
new value of operations $510,638
PP's value of operations = {$80,000 x (1 - 40%)} / WACC = $510,638
the new stock price should = $510,638 / 10,000 stocks = $51.06
Stock price will be $51.06
approximately $178,723 / $51.06 = 3,500 stocks should be repurchased
9.4% = ($480,000/$658,723 x 10%) + ($178,723/$658,723 x cost of debt x (1 - 40%)
9.4% = 7.29% + ($178,723/$658,723 x cost of debt x (1 - 40%)
2.11% = 0.2713 x cost of debt x 0.6
2.11% = 0.1628 x cost of debt
cost of debt = 2.11%/0.1628 = 12.96%
new WACC = ($178,710/$357,433 x 10%) + ($178,723/$357,433 x 12.96% x 0.6) = 5% + 6.48% = 11.48%
PP's value of operations = {$80,000 x 0.6} / 11.48% = $418,118
the new stock price should = $418,118 / 6,500 stocks = $64.33
Lean AccountingCom-Tel Inc. manufactures and assembles two models of smartphones-the Tiger Model and the Lion Model. The processconsists of a lean cell for each product. The data that follow concern only the Lion Model lean cell.For the year, Com-Tel Inc. budgeted these costs for the Lion Model production cell:Conversion Cost Categories BudgetLabor $166,300 Supplies 63,000 Utilities 22,700 Total $252,000 Com-Tel plans 3,000 hours of production for the Lion Model cell for the year. The materials cost is $71 per unit. Each assembly requires 18 minutes of cell assembly time. There was no May 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.The following summary events took place in the Lion Model cell during May:Electronic parts were purchased to produce 10,200 Lion Model assemblies in May.Conversion costs were applied for 9,700 units of production in May.9,510 units were completed and transferred to finished goods in May.9,220 units were shipped to customers at a price of $336 per unit.If required, round your answers to the nearest cent.Required:1. Determine the budgeted cell conversion cost per hour.$ per hour2. Determine the budgeted cell conversion cost per unit.
Answer: 1. $84 per hour
2. $25.20 per unit
Explanation:
The conversion costs are manufacturing or the production costs that are necessary to convert raw materials into final products.
1. The budgeted cell conversion cost per hour will be:
= Budgeted Conversion Cost/Planned Hours of Production
= $252,000 ÷ 3000
= $84 per hour
2. The budgeted cell conversion cost per unit will be:
= Manufacturing Time × Cell Conversion Cost Rate
= 18/60 × $84
= $25.20 per unit
Rebecca Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Interest Revenue, $966 Sales Revenue, $28,656 Administrative Expenses, $596 Cost of Goods Sold, $11,213 Delivery (freight-out) Expense, $689 Income Tax Expense, $1,189 Interest Expense, $1,492 General Expenses, $1,311 Sales Discounts, $2,318 Sales Returns and Allowances, $932 .Rebecca’s operating expenses are $
Answer:
operating expenses $2,596
Explanation:
Rebecca Department Stores
Income Statement
For the Year Ended December 31, 202x
Sales revenue:
Sales Revenue $28,656Sales Discounts -$2,318Sales Returns and Allowances -$932Net sales revenue $25,406Cost of goods sold -$11,213
Gross profit $14,193
Operating expenses:
Delivery (freight-out) Expense -$689 Administrative Expenses, -$596 General Expenses -$1,311 -$2,596Income from operations $11,597
Non-operating revenues and expenses
Interest Revenue $966 Interest Expense -$1,492 -$526Net income before taxes $11,071
Income Tax Expense -$1,189
Net income after taxes $9,882
David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question.
Square Footage Direct Expenses Lab Tests
Utilities 200,000
Administration 2,000 500,000
Laboratory 2,000 625,000
Day-op Suite 3,000 1,400,000 4,000
Cystoscopy 1,500 350,000 500
Endoscopy 1,500 300,000 500
Total 10,000 3,375,000 5,000
Based on the scenario above, what are the Cystoscopy Department's total expenses?
Answer:
The Cystoscopy Department's total expenses are $380,500
Explanation:
According to the given data we have the following:
For Cystoscopy Department,
(A) The Direct Expenses are $350,000
(B) Lab Tests are $500
We should need to calculate the allocation of Utilities for 1500 square feet and then add all these 3 costs.
Total Square feet is 10,000 and Total Expenses for Utilities is $200,000
So per Square foot expense for Utilities = $200,000 / 10,000 = 20 per square foot
(C) So, for Utilities having 1,500 square foot space, the cost allocated = 1,500 X 20 = $30,000
Adding all (A) + (B) + (C), the total expenses for Cystoscopy Department are
$350,000 + $500 + $30,000 = $380,500
The Cystoscopy Department's total expenses are $380,500
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $19,500, and the common fixed expenses were $43,000. The contribution margin ratio for Product Q was 40%, its sales were $128,000, and its segment margin was $35,000. If the contribution margin for Product P was $33,000, the segment margin for Product P was:
Answer:
Segment margin of product P-$27,500.00
Explanation:
The total company's segment margin is net income plus common fixed expenses.
Total segment margin=$19,500+$43,000=$62,500.00
Total segment margin can be determined as the segment margin of products Q and P
Segment margin of product Q is $35,000
segment margin of product P=$62,500-$35,000=$ 27,500.00
Hence ,the segment margin of product P is $ 27,500.00
Which of the following statements is correct?
A. Governmental funds must prepare a Statement of Revenue, Expenditures and Changes in Fund Balance, Statement of Fund Balance and Statement of Cash Flows. RSI is optional.
B. Fiduciary funds must prepare a Statement of Fiduciary Net Assets, Statement of Changes in Fiduciary Net Assets, Statement of Cash Flows and RSI.
C. Government-wide statements include data from Fiduciary and Proprietary Funds.
D. Proprietary funds must prepare a Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows.
Answer:
D. Proprietary funds must prepare a Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows.
Explanation:
Remember, proprietary funds are still under the regulation of the IRS and thus are required to prepare account statements of their revenue, expenses, net position and cash flows.
This proprietary funds consist of a pool of money and assets owned by investors and customers and are usually managed by financial institutions such as a bank.
A municipal power plant uses natural gas from an existing, leaky, pipeline at an annual cost of $40,000 per year. A new pipeline would initially cost $100,000, but it would reduce the annual cost of natural gas to $10,000 per year. Assume an analysis period of 25 years and no salvage value for either pipeline. The interest rate is 6%. Using annual equivalent cost (AEC), should the new pipeline be built?
Answer:
Yes
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the annual equivalent cost by using following formula:-
Annual Equivalent Cost (AEC) = Initial Cost × [Interest Rate × (1 + Interest Rate)^Number of years ÷ (1 + Interest Rate)^Number of years - 1} + Annual Cost Per Year
= $100,000 × [0.06 × (1 + 0.06)^25 ÷ (1 + 0.06)^25 - 1] + $10,000
= $100,000 × [0.06 × 4.291871 ÷ 4.291871 - 1] + $10,000
= $100,000 × [0.2575123 ÷ 3.291871] + $10,000
= $100,000 × 0.07823 + $10,000
= $7,823 + $10,000
= $17,823
According to the analysis, the annual cost of new pipeline $17,823 is less than 40,000. So the new pipeline should built.
Rolf Steps is the production manager for a local manufacturing firm. This company produces staplers and other items. The annual demand for a particular stapler is 1,600 units. The holding cost is $2 per unit per year. The cost of setting up the production line is $25. There are 200 working days per year. The production rate for this product is 80 per day. If Rolf decided to produce 200 units each time he started production of the stapler, what would his maximum inventory level be
Answer:
His maximum inventory level would be 180 units
Explanation:
According to the given data we have the following:
daily demand rate , d=1,600/200=8 units;
daily production rate p=80 units;
C0=25 dollar
Cc=2 dollar
Therefore, Qopt=√2*25*1,600/(2(1-8/80))
Qopt=210.82
But here Rolf decide to produce 200 units each time he started production, hence fix Q=200
Therefore, Maximum inventory level=200*(1-8/80)=200*0.9
Maximum inventory level=180 units
His maximum inventory level would be 180 units
Rolf Steps' maximum inventory level would be 126 units.
Data and Calculations:
Annual demand = 1,600 units
Holding costs = $2 per unit
Setup cost = $200 ($25 x 8)
Working days per year = 200 days
Production rate per day = 80 units
Number of setup = 8 setups (1,600/200)
Re-order quantity = square root of (2 x 1,600 x $200)/$2
= 566 units
Maximum Level = Re-order level + Re-order quantity – (Minimum usage × Minimum lead time)
= 200 + 566 - (80 x 8)
= 766 - 640
= 126 units
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Parallel sentences are balanced and easy for readers to understand.
Choose which sentence has the better parallel structure.
1. Although the presentation is extremely long, it outlines the research, analyzes the data, and provides clear recommendations that are useful in the future.
2. Although the presentation was extremely long, it outlined the research, analyzed the data, and provided clear recommendations that will be useful in the future.
Answer: 2. Although the presentation was extremely long, it outlined the research, analyzed the data, and provided clear recommendations that will be useful in the future.
Explanation:
Parallel Sentences are constructed when you used the same grammatical form across the entire sentence. This way the sentence is balanced and easier to read.
For example, Sophia likes reading, hiking and watching television. As opposed to, Sophia likes reading, hiking and watch Television. The watch in the sentence is not using the grammatical form that is the present participle which is present in most of the sentence.
The correct sentence above therefore is the second one.
It uses the same form throughout the sentence by putting it in past tense.
Long-Term Notes Receivable and TVM. Use the following present value tables to help answer the following questions. *Do not round any answer until your final answer. Round your final answer to the nearest whole dollar. When entering your final answer, do not use commas or $ sign. (Sorry...Blackboard is very sensitive and will mark your answer incorrect due to rounding and punctuation.)
PV of $1
Periods 4% 6% 8% 9%
3 .89 .84 .79 .77
5 .82 .74 .68 .65
9 .70 .59 .50 .46
10 .68 .56 .46 .42
Present Value of an Ordinary Annuity
Period 4% 6% 8% 9%
3 2.77 2.67 2.57 2.53
5 4.45 4.21 3.99 3.89
9 7.43 6.80 6.25 5.99
10 8.11 7.36 6.71 6.41
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (3) QUESTIONS:Sun Devil Inc. accepts a $1,000,000, 8% note on January 1, 2019, in exchange for merchandise. The note is due in 5 years and requires the customer to pay interest quarterly, beginning March 31, 2019. Principal will be received at maturity. The customer’s normal borrowing rate is 12%. Determine the amount of Sales Revenue Sun Devil can recognize on Jan 1, 2019: $_____________Using the information in #1 above, determine the carrying value of the Note Receivable at December 31, 2021: $_________________Using the information in #1 above, determine the Total Interest Revenue Sun Devil will earn over the entire 5-year lending agreement:$_______________________
Answer:
Determine the amount of Sales Revenue Sun Devil can recognize on Jan 1, 2019: $567,430
Determine the carrying value of the Note Receivable at December 31, 2021: $711,780
Determine the Total Interest Revenue Sun Devil will earn over the entire 5-year lending agreement: $1,308,114
Explanation:
the present value of the notes receivable = future value / (1 + 12%)⁵ or we can calculate using the annuity = $1,000,000 x 0.56743 = $567,430
the value of the note receivable 2 years later = future value / (1 + 12%)³ or again use the annuity = $1,000,000 x 0.71178 = $711,780
total interest revenue = ($1,000,000 x 8%) x annuity factor (2%, 20 payments) = $80,000 x 16.35143 = $1,308,114
Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate control activities over the invoicing function allow goods to be invoiced that are not shipped. The inadequate control activities could cause an Group of answer choices Understatement of revenues, receivables, and inventory. Overstatement of revenues and receivables and an understatement of inventory. Understatement of revenues and receivables and an overstatement of inventory. Overstatement of revenues, receivables, and inventory.
Answer:
Overstatement of revenues and receivables and an understatement of inventory.
Explanation:
Invoicing in different occasions could be done for the case of inventory and reference purposes in the hands of both the salesman and buyer. Therefore on the case above, inadequate control could possibly cause overstatement of revenues and receivables and an understatement of inventory. It is also been observed that the sales invoice provides the seller with a record of what has been sold, whether the said transaction has been carried out or not and how much money is involved. This information is useful for internal company records and also to follow up with buyers for billing purposes.
If a Cournot duopolist announced that it will double its output A. the other firm will double output also. B. the other firm does not view the announcement as credible. C. the other firm will shut down. D. it becomes the leader.
Answer:
B) the other firm does not view the announcement as credible
Explanation:
The reason is that the other firm thinks that the announcing firm will make losses as it will not be able to sell the products in an imperfect market where both the firms have identical cost functions and knew all about the cost. So increasing the production when the demand is the same will decrease the price of the product and result in increased losses to the announcing company.
After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you are asked to estimate what would happen to the sales of Ford Mustangs as a result of a change in (i) the price of a Chevrolet Camaro, (ii) the price of gasoline, and (iii) consumer incomes. You are given the following elasticities:________. 1. Price elasticity of demand for Ford Mustangs = -2.5 2. Cross-price elasticity between Ford Mustangs and Camaros = 1.5 3. Cross-price elasticity between Ford Mustangs and gasoline = -0.80 4. Income elasticity of demand for Ford Mustangs = 3.00
Answer:
1. if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.
2.If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.
3. if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
The income elasticity is given as 3 , it means that demand is elastic. So if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls.
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitutes goods.
Substitute goods are goods that can be used in place of another good.
If the cross price elasticitiy is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Because the cross price elasticity between Chevrolet Camaro and Ford Mustangs is positive, it means they are subsituite goods. So, if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.
Because the cross price elasticity of demand between gasoline and Ford Mustangs are negative, they are complementary goods.
If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.