Answer: A. Variable expenses go up by 25%.
Explanation:
Total variable expenses are calculated on the basis of the entire units to be sold which means that if sales units were to increase by 25%, the total variable expenses will increase by 25% as well.
For instance, If selling price per unit is $4 and variables, $3 and the number of units to be sold is 20, sales will be $80 and variable costs will be $60.
Assuming units went up by 25% to 25 units, variable costs would be; $75 which is an increase of;
= (75 - 60) / 60
= 25%
Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated. She expects to know for sure how much she will receive within a week or so. In this case:
Answer:
Darla's consideration ($6,000) is subject to a condition. If this condition doesn't occur first, then the offer is terminated and no contract exists. A conditional offer is only binding after the condition actually occurs, e.g. if Darla receives $6,000 or more from her uncle's estate, then she has a binding contract with Edward.
What types of people make up a persons personal network
The one-year LIBOR rate is 3% and the forward rate for the one- to two-year period is 3.2%. The three-year swap rate for a swap with annual payments is 3.2%. What is the LIBOR forward rate for the 2 to 3 year period if OIS zero rates for one, two, and three year maturities are 2.5%, 2.7%, and 2.9%, respectively
Answer:
$2.27 million
Explanation:
Calculation for What is the value of a three-year swap where 4% is received and LIBOR is paid on a principal of $100 million
First step is to calculate the value of the first
exchange
Value of the first exchange=0.032-0.030/1.025
Value of the first exchange=0.002/1.025
Value of the first exchange=0.001951
Second step is to calculate the value of the second exchange
Value of the second exchange=0.032-0.032/1.027^2
Value of the Second exchange=0.00
Third step is to calculate the value of the third exchange
Value of the third exchange=0.032-R/1.029^3
0.032-R/1.029^3=-0.001951
Hence R=0.0034126
In a situation where a swap of 4% is been received on a principal amount of $100 million
it will either provides 0.8% of $100 million or
the amount of $800,000 per year more than a swap that is worth zero which means that Its value be calculated as :
Value of the swap =800,000/1.025+800,000/1.027^2+800,000/1.029^3
Value of the swap =780,487.80+758,488.67+734,249.84
Value of the swap =$2,273,226.32
Value of the swap=$2.27 million
Therefore the valueof a three-year swap where 4% is received and LIBOR is paid on a principal of $100 million will be $2.27 million
Tyler Toys has beginning inventory for the year of $19,600. During the year, Tyler purchases inventory for $239,000 and has cost of goods sold equal to $243,000. Tyler's ending inventory equals:______
Answer:
($15,600)
Explanation:
Ending Inventory Balance is calculated as
Cost of goods sold $243,000
Less beginning inventory ($19,600)
Less purchases ($239,000)
Ending Inventory Balance ($15,600)
I sell bottled water that costs me $1 to produce. I mark each bottle up by $2. What is my markup on cost
Answer:
1
Explanation:
g Caspian Sea Drinks needs to raise $76.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.21 next year, which will grow at 4.51% forever and the cost of equity to be 12.14%, then how many shares of stock must CSD sell?
Answer:
The number of shares of stock CSD must sell is approximately 4,791,929.
Explanation:
To determine the number of shares of stock CSD must sell, we first calculate the current price per share using the Gordon growth model (GGM) formula as follows:
P = d1 / (r - g) ……………………………………… (1)
Where;
P = current price per share = ?
d1 = next year dividend = $1.21
r = required return or cost of equity = 12.14%, or 0.1214
g = dividend constant growth rate forever = 4.51%, or 0.0451
Substituting the values into equation (1), we have:
P = $1.21 / (0.1214 - 0.0451) = $1.21 / 0.0763 = $15.8584534731324
Approximating to 2 decimal places, we have:
P = $15.86
Amount needed to raise = $76.00 million, or $76,000,000
Therefore, the number shares that must be sold can be calculated as follows:
Number of shares that must be sold = Amount needed to raise / Current price per share = $76,000,000 / $15.86 = 4,791,929.38209332
Approximating to a whole number, we have:
Number of shares that must be issued = 4,791,929
Therefore, the number of shares of stock CSD must sell is approximately 4,791,929.
On October 5, 2011, you purchase a $10,000 T-note that matures on August 15, 2025 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2011). The coupon rate on the T-note is 6.25 percent paid semi-annually and the current price quoted on the bond is 102.53125. The last coupon payment occurred on May 15, 2011 (145 days before settlement), and the next coupon payment will be paid on November 15, 2011 (39 days from settlement).What is the dirty price of this bond
Answer:
$10,499.39
Explanation:
the dirty price of the bond = bond's clean price (market quote) + accrued interests
accrued interest = $10,000 x (6.25% / 2) x (145 days / 184 days) = $246.26bond's clean price = $10,000 x 102.53125% = $10,253.13bond's dirty price = $246.26 + $10,253.13 = $10,499.39
Which of the following is an advantage of specifying by company-developed specification? a. the cost of establishing specifications is low b. it is always possible to draw up specifications for any product c. unless a performance specification is used, the buyer takes responsibility for performance d. all of the above are advantages e. none of the above is an advantage.
Answer:
Option d (all of the above are advantages) is the correct option.
Explanation:
It transfers or sends the burden back to the manufacturer for an acceptable, satisfactory, or suitable product. The output design becomes result-oriented as well as for user-oriented, having to leave the vendor with either the determination about how to end up making the much more appropriate platform.So that all the given statements are true.
Zhang Industries budgets production of 300 units in June and 310 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate is $14 per hour. The indirect labor rate is $21 per hour. Compute the budgeted direct labor cost for July.
a. $6,300.
b. $6,510.
c. $9,450.
d. $9,765.
e. $16,275.
Answer:
b. $6,510.
Explanation:
The computation of the budgeted direct labor cost for July is shown below:
Budgeted Direct Labor cost is
= Direct Labor cost per hour × Number of hours
= 310 units × 1.5 hours × $14
= $6,510
hence, the correct option is b. $6,510
We simply applied the above formula and the same is to be considered
Therefore all other options are incorrect
Drag each label to the correct location on the image.
Mark’s business wants to diversify into energy efficient technology. Classify the sources of finance for this new business.
Answer:
See below
Explanation:
1. Issued a $1000 security that can be converted to 100 shares after five years:
Convertible bond; bonds are debt instruments. A convertible bond is special because they have the option to convert the debt to capital.
2. Granted tax incentive for research and development.
Government :the government support business through incentives such as tax cuts and grants.
3. Sanctioned along-term loan in exchange for collateral:
Bank. A loan from the bank is a source of capital for a business.
4. Impressed with the business plan, Mr. Doyle provided $75,000.
Angel investor: they are wealthy individuals who offer capital to start-up based on their proposals and business plans.
5. Secured $100,000 from the sale of common stock:
Venture capitalist: They invest in successful businesses by buying securities with profit expectations.
i just took the test and got this right
Issued a $1,000 security that can be converted into 100 shares after 5 years. Convertible Fund
Granted tax incentives for research and development. Government
Sanctioned along-term loan in exchange for collateral. Banks
Buy 10% of the company in exchange for cash. Venture Capitalist
Impressed with the business plan, Mr. Doyle provided $75,000. Angel Investor
Secured $100,000 from the sale of common stock. Equity
Suppose we have the yield and maturity information on treasury securities from a current yield curve. A 1-year T-bond currently yields 4.50% and a 3-year T-bond yields 9.80%. Assuming the pure expectations theory is correct, what is the market's forecast for interest rates on a 2-year treasury security, 1 year from now
Answer:
12.55%
Explanation:
The computation is shown below:
(1 + 3 Year Yield)^3 = (1 + 1 Year Yield) × (1 + 2 Year Yield 1 year from now)^2
(1 + 9.80%)^3 = (1 + 4.50%) × (1 + 2 Year Yield 1 year from now)^2
1.323753 = 1.0450 × (1 + 2 Year Yield 1 year from now)^2
1.266749 = (1 + 2 Year Yield 1 year from now)^2
1.1225 = 1 + 2 Year Yield 1 year from now
So,
2 Year Yield 1 year from now = 0.1255
= 12.55%
Under the Clayton Act, a divestiture order is: a. a decision by a court requiring a defendant to sell an enterprise. b. an order by a court requiring an enterprise to dispose of its inventory. c. notification from the Department of Justice that a merger did not occur. d. notification from the Department of Justice that a merger is about to occur.
Answer:
a. a decision by a court requiring a defendant to sell an enterprise.
Explanation:
The Clayton Act was enacted in 1914 and was passed in order to complement the Sherman Antitrust Act of 1890. It focused on preventing monopolistic actions when they were just starting.
A divestiture means that a company is forced to sell the stock it owns from a third party corporation, e.g. if Apple bought a significant amount of Samsung's stocks, and they were forced to sell them.
At December 31​ year-end, Corporation has note receivable from a customer. Interest of ​% has accrued for months on the note. What will income statement for the year ended December 31 report for this​ situation?
Answer: C. interest revenue of $560
Explanation:
Accounting uses the accrual basis for calculation. This means that even though cash has not been received, revenue must still be recognized in the period it was acquired.
The revenue here is;
= 12,000 * 7% * 8/12 months
= $560
This revenue will therefore be recognized in the income statement as interest revenue.
Calculate the weekly profit for a company with a total cost of $10,000 and a total revenue of $30,000.
Answer: $20,000
Explanation:
To calculate the profit made by a company or a particular business, we deduct the expenses or coat from the revenue generated.
In this case, the revenue is $30,000 while the cost is given as $10,000. Therefore, the profit will be:
= $30,000 - $10,000
= $20,000
g If the demand for a product is perfectly elastic, a tax of $1 per unit imposed on sellers will
Answer:
d. not affect the market price.
Explanation:
here are the options to this question :
a. Increase the market price by $1 per unit.
b. decrease the market price by less than $1 per unit.
c. decrease the market price by $1 per unit.
d. not affect the market price.
e. increase the market price by less than $1 per unit
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the demand for a product is perfectly elastic, if the price of the good changes, the quantity demanded would fall to zero. So, if tax is imposed on the good, the sellers would bear the entire burden of the tax and there would be no increase in price of the good
Exercise 6-15A Calculate cost of goods sold, the inventory turnover ratio, and average days in inventory (LO6-2, 6-7) Skip to question [The following information applies to the questions displayed below.] Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis Clark Inventory (beginning)$30,000 $56,000 Inventory (ending) 24,000 66,000 Purchases 355,200 185,800 Purchase returns 21,000 66,000
Answer:
Please see explanation below
Explanation:
Lewis incorporated
Beginning inventory
$30,000
Add: purchases
$355,200
Less: purchases return
($21,000)
Net purchases
$334,200
Less: ending inventory
($24,000)
Cost of goods sold
$340,200
Clark enterprises
Beginning inventory
$56,000
Add: purchases
$185,800
Less purchases return
($66,000)
Net purchases
$119,800
Less: ending inventory
($66,000)
Cost of goods sold
$109,800
1. Lewis incorporated
•Cost of goods sold = $340,200
• The inventory turnover ratio = Cost of goods sold / average inventory
Cost of goods sold = $340,200
Average inventory = ($30,000 + $24,000) / 2 = $27,000
Inventory turnover ratio = $340,200 / $27,000
= 12.6 times
• Average days in inventory = (Cost of average inventory / cost of goods sold ) × 365
= ($27,000 / $340,200) × 365
= 29 days
1. Clark enterprises
•Cost of goods sold = $109,800
• The inventory turnover ratio = Cost of goods sold / average inventory
Cost of goods sold = $109,800
Average inventory = ($56,000 + $66,000)/2 = $61,000
Inventory turnover ratio = $109,800 / $61,000
= 1.8 times
• Average days in inventory = (Cost of average inventory / Cost of goods sold) × 100
= ($61,000 / $109,800) × 365
= 203 days
Agro Co-op,Inc. ,and Bio Feed Corporation are exporting firms that join together to export a line of products.Agro Co-op and Bio Feed apply to Charter Bank for a loan to fund their effort.Under federal law,Charter and other U.S.banks are:____________A) encouraged by credit guaranties to lend such funds.B) discouraged by administrative rules to make such loans.C) asked by enforcement agencies to report such requests.D) banned by statute from opening such credit lines.
Answer:
A) encouraged by credit guaranties to lend such funds
Explanation:
In a situation like this, under the United States export financing options, (International Trade Administration) for firms who are into exportation of American products, Banks are highly encouraged by credit guarantees to lend funds for the interested firms. This process is also boosted through working capital guarantees from Ex-Im Bank or the U.S. Small Business Administration.
Hence, Charter and other U.S.banks are: "encouraged by credit guarantees to lend such funds."
If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will:________
a. exceed what it would have been had the effective-interest method of amortization been used.
b. be less than what it would have been had the effective-interest method of amortization been used.
c. be the same as it would have been had the effective-interest method of amortization been used.
d. be less than the stated (nominal) rate of interest.
Answer: a. exceed what it would have been had the effective-interest method of amortization been used.
Explanation:
If the effective - interest method of amortization is used, the interest expense in earlier years will be lower because the amortised amount used in the calculation of bond interest will be lower.
In contrast, straight-line apportions the amortised amount evenly across all the years so in earlier years the interest will be higher than using the effective-interest method.
A tech start-up company has just become public. It just paid $3 dividend per share, which will grow 10% for the next two dividends. Afterwards, the dividends will level off and grow at 4% per year forever. If the investors require 6% return on similar investments, what is the price of stock
Answer:
P0 = $174.3396226 rounded off to $174.34
Explanation:
The two stage growth model of DDM will be used to calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
g1 is the initial growth rate g2 is the constant growth rate D0 is the dividend paid today or most recently r is the required rate of return
P0 = 3 * (1+0.1) / (1+0.06) + 3 * (1+0.1)^2 / (1+0.06)^2 +
[(3 * (1+0.1)^2 * (1+0.04) / (0.06 - 0.04)) / (1+0.06)^2]
P0 = $174.3396226 rounded off to $174.34
Gross domestic product (GDP) is the value of goods and services produced in a country annually.
It can best be described as measuring an economy’s
total product.
total demand.
total input.
total output.
Need Help, ASAP!!!
Explanation:
Gross domestic product (GDP) is the value of goods and services produced in a country annually.
It can best be described as measuring an economy’s
total product.
total demand.
total input.
total output.
Need Help, ASAP!!!
help this stupid fool
Foster Company makes and sells power tools. The budgeted sales are $420,000, the budgeted variable costs are $147,000, and the budgeted fixed costs are $227,500. What is the break-even point in sales dollars
Answer:
0.65
Explanation:
Breakeven sales = 227,500 / 0.65 = $350,000
147,000 / 420,000 = 0.35
1 - 0.35 = 0.65
According to the life-cycle and permanent-income hypotheses, if future income rises permanently, current consumption:
Answer:
b. rises.
Explanation:
In the case when the future income increased on permanently basis so as per the life cycle and the hypothesis of permanent income the current income rises because in this case the people rises their level of consumption patterns over their lifecycle
Therefore in the given situation, the rises is the answer and the same is to be considered
Kayla is considering investing in a bond with a face value of $12,000 with a coupon rate of 12% payable on a monthly basis. If she can get a 2.5% return per quarter on her money, what are the monthly payments that she can receive from the bond
Answer:
The answer is "$ 120"
Explanation:
Given value:
[tex]\text{Monthly payment= Face value} \times \frac{\text{Coupon rate}}{12}[/tex]
[tex]= \$ 12,000 \times \frac{12 \%}{12}\\\\= \$ 12,000 \times \frac{0.12}{12}\\\\= \$ 1,000 \times 0.12\\\\= \$ 120[/tex]
A company's board of directors' votes to declare a total cash dividend of $15,000. The company has 2,500 shares of $1 par common stock and 400 shares of 5%, $200 par preferred stock outstanding. What is the total amount that will be paid to preferred shareholders
Answer:
$4,000
Explanation:
The computation of the total amount that will be paid to preferred shareholders is shown below:
= Number of preference shares × dividend rate × par value
= 400 shares × 5% × $200
= $4,000
We simply applied the above formula so that the total amount of dividend paid to preference shareholders could come
And the same is to be considered
A 2009 Chevrolet model has more horsepower than the 2008 version and is included in the BLS basket of goods. BLS attempts to account for this change in the market basket by:______
a. Substituting in a different vehicle with the same horsepower as the 2008 model.
b. Dropping the good from the basket.
c. Adjusting the share of the market basket allocated to transportation.
d. Adjusting the price of the good to account for the quality change.
Answer:
The answer is "Option d".
Explanation:
It's Chevy Silverado 2009 transitions it into a new six-speed automatic motor, a larger V8 device, an economical XFE as well as an electric gasoline vehicle until it updated for 2007, its Silverado became enhanced with brand awards. Its 2008 versions provided extra features and refinement wherein the price of the goods was also adjusted to reflect the continual improvement.
The journal entry to record the requisition of direct materials for new jobs started during the period is
Answer:
Work in Process Inventory XXXX
To Materials inventory XXXX
(Being the requisition of direct materials for new jobs started is recorded)
Explanation:
The journal entry is shown below:
Work in Process Inventory XXXX
To Materials inventory XXXX
(Being the requisition of direct materials for new jobs started is recorded)
Here we debited the Work in Process Inventory as it increased the asset and at the same time we credited the material inventory as it decreased the asset so there is no impact on the accounting entry
Canada and Mexico are the same distance from the United States, but trade is higher between the United States and Canada than with Mexico because
Answer: true distance is smaller between the United States and Canada.
Explanation:
The true distance between the United States and Canada is shorter as there are better roads, lower elevation, a wider border and closer proximity to the Northern part of the United States.
This has made trade with Canada so much easier because goods have more ports of entry to come in through, better elevation as well as road networks that enable fast and safe travel.
Builtrite has calculated the average cash flow to be $16,000 with a standard deviation of $2,500. What is the probability of a cash flow being greater than $12,250
Answer:
P=93.32%
Explanation:
Calculation for the probability of a cash flow
Mean =μ=$16,000
Standard Deviation =σ=$2,500
P(x > $12,250) = 1 - P(x <$12,250 )
= 1 - P(z < x - μ ) / σ =1 - P ( z < $12,250- $16,000) / $2,500)
P(x > $12,250) = 1 - P(z <$3,750/$2,500 )
P(x > $12,250) = 1 - P(z <$1.5 )
P=1-0.0668
P=0.9332*100
P=93.32%
Therefore the probability of a cash flow being greater than $12,250 is 93.32%
avi sells seashore paintings. His annual Fixed Costs are $1,000 and the Variable Costs are $8 per painting. At a price of $15 a painting, what is the unit contribution ($) per painting sold?
Answer:
Unitary contribution margin= $7
Explanation:
Giving the following information:
Selling price per unit= $15
Unitary variable cost= $8
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= selling price - unitary variable cost
Unitary contribution margin= 15 - 8
Unitary contribution margin= $7
g the company expects to earn at least 18% per year on invested capital. Based on the projected cash flow, what is the ERR
Answer:
27%
Explanation:
Economic Rate of Return : {[ Current Value - Cost ] / Cost } * 100
The Cash inflows for the project are $1,275,352 for the 3 years based on discounting rate of 18%.
The initial investment is $1,000,000.
ERR : {[$1,275,352 - $1,000,000 ] / $1,000,000 ] *100
ERR : 27% approximately