1. Diseconomies of scale refer to the situation where a firm experiences an increase in average total cost as it increases the scale of its operations within a certain range.
This occurs due to various factors such as coordination challenges, communication issues, diminishing returns, and inefficiencies that arise as the organization grows larger.
2. a. A decrease in the money supply.
A decrease in the money supply is an example of a monetary policy intended to reduce spending and production in the economy. When the money supply is reduced, it leads to less available funds for borrowing and spending, which in turn can slow down economic activity, decrease consumer spending, and discourage investment.
3. c. A decrease in the federal tax rate.
A decrease in the federal tax rate is an example of fiscal policy intended to stimulate production and spending in the economy. When taxes are reduced, individuals and businesses have more disposable income, which can incentivize increased spending, investment, and economic growth. This policy aims to stimulate aggregate demand and boost economic activity.
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Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models, designated as standard, deluxe, and heavy-duty. The company uses a job-order cost-accounting system with manufacturing overhead applied on the basis of direct-labor hours. The system has been in place with little change for 25 years. Product costs and annual sales data are as follows:
Morelli Electric Motor Corporation manufactures three types of electric motors: standard, deluxe, and heavy-duty.
What accounting system is used?The company uses a job-order cost-accounting system with manufacturing overhead applied on the basis of direct-labor hours. The system has been in place with little change for 25 years.
The company's annual sales data are as follows:
Standard model: 19,000 units
Deluxe model: 1,500 units
Heavy-duty model: 9,400 units
The product costs for each model are as follows:
Raw material: $18
Direct labor: $10
Manufacturing overhead: $65
The total product cost for each model is as follows:
Standard model: $93
Deluxe model: $183
Heavy-duty model: $196
The predetermined overhead rate is calculated as follows:
Budgeted manufacturing overhead: $3,570,000
Budgeted direct-labor hours: 21,000 hours
Predetermined overhead rate: $170 per hour
The company's target price for each model is as follows:
Standard model: $110
Deluxe model: $220
Heavy-duty model: $232
The company is considering implementing an activity-based costing system. The activity cost pools and their drivers are as follows:
* Activity cost pool Driver
Depreciation, machinery | Machine hours
Maintenance, machinery | Machine hours
Depreciation, taxes, and insurance for factory | Square feet
Engineering | Number of engineering hours
Purchasing, receiving, and shipping | Number of purchase orders
Inspection and repair of defects | Number of defects
Material handling | Number of pounds of material
Miscellaneous manufacturing overhead costs | Number of direct-labor hours
The company is also considering changing its pricing formula to 110% of full product cost.
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Morelli Electric Motor Corporation Manufactures Electric Motors For Commercial Use. The Company Produces Three Models, Designated As Standard, Deluxe, And Heavy-Duty. The Company Uses A Job-Order Cost-Accounting System With Manufacturing Overhead Applied On The Basis Of Direct-Labor Hours. The System Has Been In Place With Little Change For 25 Years. Product
Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models, designated as standard, deluxe, and heavy-duty. The company uses a job-order cost-accounting system with manufacturing overhead applied on the basis of direct-labor hours. The system has been in place with little change for 25 years. Product costs and annual sales data are as follows:
Standard Model Deluxe Model Heavy-Duty Model
Annual sales (units) 19,000 1,500 9,400
Product costs:
Raw material $ 18 $ 33 $ 46
Direct labor 10 (0.5 hr. at $20) 20 (1 hr. at $20) 20 (1 hr. at $20)
Manufacturing overhead* 65 130 130
Total product cost $ 93 $ 183 $ 196
*The calculation of the predetermined overhead rate is as follows:
James, whose Bernoulli utility function is given by u(w) = w0.5, participates in a lottery which pays him $2 with probability 0.2, $22 with probability 0.3, and $26 otherwise.
What is his certainty equivalent?
Round your final answer to two decimal places if needed
The required answer is $123.08.
Utility function of James is given by
`u(w) = w^0.5`.
We need to find the certainty equivalent for the following lottery.
The given lottery pays James:$2 with a probability 0.2$22 with a probability 0.3$26 otherwise expected value of this lottery is:
`0.2 × 2 + 0.3 × 22 + 0.5 × 26`= 0.4 + 6.6 + 13 = 20
James's Bernoulli utility function is u(w) = w^0.5
Therefore, the expected utility of the lottery is:
`0.2 × (2)^0.5 + 0.3 × (22)^0.5 + 0.5 × (26)^0.5`≈ 1.41 + 4.58 + 5.10 = 11.09
Now we need to find the amount of money that James would be willing to accept in lieu of the lottery. Let this amount be x, then according to the definition of certainty equivalent, we have
`u(x) = E[u(w)]`
Squaring both sides we get
`u(x)^2 = E[u(w)]^2`
Substituting the values of x and E[u(w)]
we get`x^0.5 = 11.09
`Squaring both sides, we get
`x = 11.09^2` = 123.08
Therefore, the certainty equivalent of the given lottery is $123.08 (rounded to two decimal places).
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Increasing your OR ING leverage (increase in Fixed costs) usually involves an investment in fixed assets. One reason is to increase capacity to meet demand. Another KEY reason to increase leverage is to:___________
a. Reduce variable costs
b. Reduce fixed costs
c. increase borrowings
d. Improve profits
Increasing your OR ING leverage (increase in Fixed costs) usually involves an investment in fixed assets. One reason is to increase capacity to meet demand.
Another KEY reason to increase leverage is to improve profits.What is leverage?Leverage is the usage of borrowed money or financial instruments to amplify the potential gain or loss of an investment. An investor may utilize leverage to increase a portfolio's earning potential when the market is optimistic, and interest rates are low.
Increasing leverage aims to boost profits. To improve profits, increasing leverage is another KEY reason for the investment in fixed assets and increasing fixed costs. Therefore, the correct option is d. Improve profits.
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the top-level executive task of crafting a diversified company's overall or corporate strategy does not include which one of the following?
The top-level executive task of crafting a diversified company's overall or corporate strategy does not include day-to-day operational management.
Day-to-day operational management is not part of the top-level executive task of crafting a diversified company's overall or corporate strategy. While the executives are responsible for developing and implementing the company's strategic direction, their focus is on long-term goals, vision, and objectives. They analyze market trends, assess opportunities and risks, set performance targets, allocate resources, and make key strategic decisions.
However, the actual management of daily operations, such as overseeing production processes, monitoring employee performance, or managing customer service, is typically delegated to middle or lower-level managers. The top-level executives concentrate on shaping the company's strategic direction rather than engaging in operational details.
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Walter makes handcrafted dolls, which he sells at craft fairs. He is considering mass-producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment will be $18,000, whereas labor, material, packaging, and shipping will be about $8 per doll. If the dolls are sold for $30 each, what sales volume is necessary for Walter to break even? Round to two decimal places.
Group of answer choices
681.82
791.67
818.18
Walter makes handcrafted dolls, which he sells at craft fairs. He is considering mass-producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment will be $18,000, whereas labor, material, packaging, and shipping will be about $8 per doll.
If the dolls are sold for $30 each, what sales volume is necessary for Walter to break even? Round to two decimal places. Break-even point (BEP) is a measure of the amount of output or sales a company must generate to cover its total costs. Break-even point is a calculation that indicates the quantity of units a company must produce and sell to pay its expenses. Therefore, Walter must sell 1,125 units to break even.
Explanation:
Given, Initial Investment for plant and equipment = $18,000Labor, Material, Packaging, and Shipping per unit = $8Selling price of one unit of a doll = $30We are supposed to calculate the sales volume Walter must achieve to break even.
First, we can calculate the total cost per unit of a doll as follows:
Total Cost = Initial Investment + Labor + Material + Packaging + Shipping Total cost = $18,000 + $8Total cost = $18,008
Selling price of one unit of a doll = $30
Therefore, profit earned per unit of a doll = Selling price per unit of a doll - Total cost per unit of a doll= $30 - $18.008= $11.992.
Now, let's calculate the break-even point in terms of unit sales:
BEP in units = Fixed Costs/Contribution Margin
Where Fixed Costs = $18,000Contribution Margin = Selling price per unit - Total variable cost per unit= $30 - $8= $22BEP in units = $18,000/$22BEP in units = 818.18.
Therefore, Walter must sell 1,125 units to break even. (Rounded to two decimal places)
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Which of the following statements is/are true regarding the relevance of information required to make business decisions? Multiple select question. Identifying relevant information requires judgment. Qualitative concerns, such as ethical sensitivity, are generally not considered relevant to business decisions. The only information relevant to a particular business decision is that which varies among possible outcomes. Relevant financial information focuses primarily upon costs and revenues.
The following statements are true regarding the relevance of information required to make business decisions are:Identifying relevant information requires judgment: Business decisions should be based on a wide range of information from various sources.
It requires the ability to identify relevant information.Qualitative concerns, such as ethical sensitivity, are generally not considered relevant to business decisions: Ethical concerns are important and play a vital role in business decision-making. All the decisions must be made keeping in mind the ethical considerations.
The only information relevant to a particular business decision is that which varies among possible outcomes: The relevant information is the one that is needed for a particular decision. The relevant information that should be considered varies with the specific decision. Relevant financial information focuses primarily upon costs and revenues: Financial information is significant for making business decisions.
It includes information about costs, revenues, profits, losses, etc.Thus, identifying relevant information requires judgment, qualitative concerns such as ethical sensitivity, are generally considered relevant to business decisions, the only information relevant to a particular business decision is that which varies among possible outcomes, and relevant financial information focuses primarily upon costs and revenues.
Therefore,Business decisions should be based on a wide range of information from various sources.
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A late penalty of 10% will apply to new answers Intro Samsung has preferred stock outstanding with a constant annual dividend of $2.2 that is promised forever. Samsung has a required return of 10% Attempt 1/10 for 9 pts. Part 1 What is the value of Samsung's preferred stock?
The value of Samsung's preferred stock is $22.To calculate the value of Samsung's preferred stock, we can use the formula for the present value of perpetuity. The formula is as follows:
Value of preferred stock = Dividend / Required return
In this case, the dividend is the constant annual dividend of $2.2, and the required return is 10% (0.10 in decimal form).
Value of Samsung's preferred stock = $2.2 / 0.10 = $22
Therefore, the value of Samsung's preferred stock is $22.
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What foundational beliefs inform one’s moral compass? (Select all that apply.)
philosophical
religious
analytical
environmental
Philosophical and religious beliefs inform one's moral compass.
The foundational beliefs that inform one's moral compass can vary among individuals and are influenced by a combination of factors. Among these factors, philosophical and religious perspectives are commonly recognized as significant contributors to shaping moral values.
Philosophical beliefs play a crucial role in shaping moral compasses. Different philosophical frameworks, such as utilitarianism, deontology, virtue ethics, and existentialism, offer distinct perspectives on what is morally right or wrong, good or bad. These philosophical perspectives provide individuals with frameworks for evaluating moral dilemmas and making ethical decisions based on rationality, logic, and principles.
Religious beliefs also strongly influence moral compasses for many individuals. Religious teachings and scriptures often provide specific moral guidelines, ethical codes, and commandments that followers are expected to abide by. Religious moral compasses are informed by divine commandments, moral principles derived from religious texts, and the belief in the existence of a higher power.
Analytical thinking, while not a foundational belief itself, can contribute to the development and refinement of one's moral compass. Analytical skills allow individuals to critically evaluate moral issues, consider different perspectives, weigh consequences, and make informed moral judgments based on reason and evidence.
Environmental beliefs, while important in guiding actions related to ecological responsibility, do not directly inform one's moral compass. Environmental beliefs pertain more specifically to attitudes and behaviors related to the environment and sustainability, and while they can influence ethical decision-making in certain contexts, they are not foundational beliefs that inform one's overall moral compass.
In summary, philosophical and religious beliefs are foundational in shaping one's moral compass, while analytical thinking aids in moral reasoning and decision-making. Environmental beliefs, though significant in their own right, are not typically considered foundational beliefs that directly inform one's moral compass.
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discuss the impact Russia and Ukraine war on international
political economy?
The conflict between Russia and Ukraine has had a significant impact on the international political economy, disrupting trade relations, causing political instability, and highlighting the need for greater energy security in Europe.
The war between Russia and Ukraine has had a significant impact on the international political economy. The conflict began in 2014, and since then, there have been a series of economic sanctions and retaliatory measures by both countries and the international community. The war has also disrupted trade relations and caused significant political instability in the region, with ramifications that extend beyond the borders of Russia and Ukraine.One significant impact of the conflict is on energy security in Europe.
Russia is a major supplier of natural gas to the region, and the conflict has disrupted the flow of gas to some countries. The dispute has highlighted the need for Europe to reduce its dependence on Russian energy and diversify its sources of supply.
As a result, the EU has made efforts to increase energy security, investing in renewable energy and exploring new sources of gas from countries like Azerbaijan and Turkmenistan.
However, this transition has been slow, and Europe continues to rely on Russian gas for a significant portion of its energy needs. Another impact of the conflict has been on international trade.
The war has led to the imposition of economic sanctions by Western countries on Russia, which have affected Russian businesses and individuals. In retaliation, Russia has imposed its sanctions on European countries, causing significant economic damage.
The sanctions have also disrupted trade relations between Russia and Ukraine, with both countries imposing tariffs and other barriers on each other's goods and services. This has had a negative impact on businesses in both countries and has led to a decline in economic activity.
Overall, the conflict between Russia and Ukraine has had a significant impact on the international political economy, disrupting trade relations, causing political instability, and highlighting the need for greater energy security in Europe.
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GoSnow sells snowboards. Each snowboard requires direct materials of $150, direct labor of $55, variable overhead of $65, and variable selling, general, and administrative costs of $30. The company has fixed overhead costs of $285,000 and fixed selling, general, and administrative costs of $355,000. The company has a target profit of $560,000. It expects to produce and sell 10,000 snowboards. Compute the selling price per unit using the variable cost method. (Round your intermediate calculations and final answer to nearest whole dollar amounts.) Selling price per unit
If the company has a target profit of $560,000, the selling price per unit using the variable cost method is $420.
To compute the selling price per unit using the variable cost method, we need to consider the variable costs and the target profit.
The variable costs per unit include direct materials, direct labor, variable overhead, and variable selling, general, and administrative costs. Adding these costs together, we get:
Variable costs per unit = Direct materials + Direct labor + Variable overhead + Variable selling, general, and administrative costs
= $150 + $55 + $65 + $30
= $300
Next, we need to determine the total fixed costs. The fixed costs include fixed overhead costs and fixed selling, general, and administrative costs. Adding these costs together, we get:
Total fixed costs = Fixed overhead costs + Fixed selling, general, and administrative costs
= $285,000 + $355,000
= $640,000
Now, we can calculate the total cost per unit by adding the variable costs per unit and the fixed costs per unit:
Total cost per unit = Variable costs per unit + (Total fixed costs / Number of units)
= $300 + ($640,000 / 10,000)
= $300 + $64
= $364
Finally, we can compute the selling price per unit using the formula:
Selling price per unit = Total cost per unit + Target profit per unit
= $364 + ($560,000 / 10,000)
= $364 + $56
= $420
This price covers the variable costs per unit, the fixed costs per unit, and achieves the target profit of $560,000.
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A blogger recently asserted that "the pervasive use of email for business has made the work of writing well even more difficult because it invites—relentlessly—hitting Send before you have thought through, organized, reviewed, and even rewritten your message."Footnote Do you agree that the process of writing has become more difficult with e-mail?
The assertion made by the blogger suggests that the widespread use of email in business has made the process of writing more challenging. While it is true that email has become a dominant form of communication in the workplace, whether or not it has made writing more difficult is subjective and can vary based on individual experiences and preferences. Here are a few factors to consider:
1. Speed and efficiency: Email allows for quick and efficient communication, enabling individuals to send messages rapidly. This can lead to a sense of urgency and may result in less time being dedicated to carefully crafting and reviewing messages before hitting "Send." Consequently, it can increase the likelihood of errors or poorly constructed messages.
2. Lack of non-verbal cues: Unlike face-to-face or phone conversations, email lacks non-verbal cues such as tone of voice, facial expressions, or body language. Without these cues, the intended meaning of a message can sometimes be misinterpreted, leading to misunderstandings or confusion.
3. Informality and brevity: Email communication tends to be more informal and concise compared to traditional written documents, such as letters or reports. This shift towards brevity and informality may result in a more relaxed approach to writing, potentially affecting the level of thoughtfulness and attention to detail in the message.
4. Multitasking and distractions: With email being just one of many digital communication tools, individuals often juggle multiple tasks simultaneously. This multitasking can divert attention from the writing process, leading to rushed or less carefully constructed messages.
However, it's important to note that email also offers benefits in terms of convenience, accessibility, and asynchronous communication. It has revolutionized business communication and streamlined various processes. Moreover, the challenges associated with writing well in emails can be mitigated through conscious efforts, such as setting aside dedicated time for writing, proofreading messages, and adopting best practices for effective email communication.
Ultimately, whether the process of writing has become more difficult with email is subjective and can depend on individual writing habits, work environment, and personal preferences. Some individuals may find it more challenging, while others may adapt and find ways to overcome these challenges effectively.
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If the elasticity of demand is 4, and the price of a cup of coffee is $2, how much would the seller need to reduce her price in order to increase the quantity sold by 20 percent? Instructions: Enter your answer rounded to 2 decimal places (i.e in dollars and cents). The seller would need to reduce her price by: $[ 4.8 View previous attempt
The seller would need to reduce her price using elasticity of demand by $0.10 (10 cents) to increase the quantity sold by 20 percent.
To determine how much the seller would need to reduce her price to increase the quantity sold by 20 percent,
use the concept of elasticity of demand.
The formula to calculate the percentage change in quantity demanded given the percentage change in price is,
% Change in Quantity Demanded = Elasticity of Demand × % Change in Price
The elasticity of demand is 4, and we want to increase the quantity sold by 20 percent.
Plug in the values and solve for the percentage change in price,
20% = 4 × % Change in Price
Dividing both sides by 4 gives us,
% Change in Price
= 20% / 4
= 5%
To calculate the actual price reduction needed, multiply the current price by the percentage change in price,
Price Reduction
= $2 × 5%
= $0.10
Therefore, as per elasticity of demand the seller would need to reduce her price by $0.10 (10 cents) to increase the quantity sold by 20 percent.
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The financial information of Z, Inc. is as follows:
EBIT/share: $6
EPS: $4
Growth rate: 10%
Stock Price per share: $60
The industry averages of price-EBIT ratio, PE ratio and PEG ratio are 10, 16, and 1.3 respectively.
1. The implied stock price of Z, Inc. using the PE ratio is____
2. The implied stock price of Z, Inc. using the PEG ratio is____
3. The implied stock price of Z, Inc. using the price-EBIT ratio is____
4. The ratio indicates that Z is undervalued is (A. PE ratio, B. PEG ratio, C. Price-EBIT ratio, enter A/B/C)____
The ratio that indicates that Z, Inc. is undervalued is the PEG ratio (B). Since the implied stock price using the PEG ratio ($52) is less than the current stock price ($60), Z, Inc. is undervalued by the market.
1. Implied stock price using the PE ratio:
We know that the PE ratio of the industry is 16 and the earnings per share for Z, Inc. is $4. The implied stock price using the PE ratio formula is:
Implied Stock Price = PE Ratio × EPS= 16 × $4= $64
Thus, the implied stock price of Z, Inc. using the PE ratio is $64.2.
Implied stock price using the PEG ratio:
Given, the PEG ratio of the industry is 1.3 and the growth rate of Z, Inc. is 10%.
The implied stock price using the PEG ratio formula is:
PEG Ratio = PE Ratio ÷ Growth Rate
Implied Stock Price = PEG Ratio × EPS= (PE Ratio ÷ Growth Rate) × EPS= (1.3 × 4) ÷ 0.10= $52
Thus, the implied stock price of Z, Inc. using the PEG ratio is $52.3.
Implied stock price using the price-EBIT ratio:
Given, the price-EBIT ratio of the industry is 10 and the EBIT per share for Z, Inc. is $6. The implied stock price using the price-EBIT ratio formula is:
Implied Stock Price = Price-EBIT Ratio × EBIT per Share= 10 × $6= $60
Thus, the implied stock price of Z, Inc. using the price-EBIT ratio is $60.4.
The ratio that indicates that Z, Inc. is undervalued is the PEG ratio (B). Since the implied stock price using the PEG ratio ($52) is less than the current stock price ($60), Z, Inc. is undervalued by the market.
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Benitez Security Systems has an annual demand for a camera security system of 1200 units. The cost of the camera system is $100. Carrying cost rate is estimated at 15%, and the ordering cost is $30 per order. If the owner orders 300 she can get a 2% discount on the cost of the cameras. The company operates 300 days per year, therefore the daily demand is 4 units per day and the lead time to receive an order from the supplier is 5 days. What should be their ordering amount based on EOQ? What are the total costs based on EOQ? What are the total costs if they take the discount?
Benitez Security Systems should order 70 units of camera security systems. The total cost based on EOQ is approximately $121,039.29. If the owner orders 300 units, they can get a 2% discount on the item cost, resulting in a total cost of $118,628.58. The optimal inventory policy is to maintain a stock of 70 units.
To determine the ordering amount based on the Economic Order Quantity (EOQ) model, we need to use the following formula:
EOQ = √((2 * D * S) / H)
Where:
D = Annual demand (1200 units)
S = Ordering cost ($30 per order)
H = Carrying cost rate (15% of the item cost)
Let's calculate the EOQ:
EOQ = √((2 * 1200 * 30) / (0.15 * 100))
EOQ = √(72000 / 15)
EOQ ≈ √4800
EOQ ≈ 69.28
Since we can't order a fraction of a unit, we should round up to the nearest whole number.
Ordering amount based on EOQ: Q = 70 units
Now let's calculate the total costs based on the EOQ.
Total Cost = (D / Q) * S + (Q / 2) * H + D * C
Where:
D = Annual demand (1200 units)
Q = Ordering amount (70 units)
S = Ordering cost ($30 per order)
H = Carrying cost rate (15% of the item cost)
C = Item cost ($100)
Total Cost = (1200 / 70) * 30 + (70 / 2) * 0.15 * 100 + 1200 * 100
= 514.29 + 525 + 120000
= $121039.29
Now let's calculate the total costs if they take the discount.
Discounted item cost = Item cost - (Item cost * Discount rate)
= $100 - ($100 * 0.02)
= $100 - $2
= $98
Total Cost with discount = (D / Q) * S + (Q / 2) * H + D * Discounted item cost
= (1200 / 70) * 30 + (70 / 2) * 0.15 * 98 + 1200 * 98
= 514.29 + 514.29 + 117600
= $118628.58
Therefore, the optimal inventory policy based on the EOQ is:
Q = 70 units
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The complete question is:
Benitez Security Systems has an annual demand for a camera security system of 1200 units. The cost of the camera system is $100. Carrying cost rate is estimated at 15%, and the ordering cost is $30 per order. If the owner orders 300 she can get a 2% discount on the cost of the cameras. The company operates 300 days per year, therefore the daily demand is 4 units per day and
the lead time to receive an order from the supplier is 5 days.
What should be their ordering amount based on EOQ?
What are the total costs based on E0Q?
What are the total costs if they take the discount?
Ann wants to buy a property which costs $3,500,000. She gets a mortgage with 75% LTV. What is Ann’s Debt to Equity ratio for this purchase? A. 3:4 B. 3:1 C. 5:1 D. 4:1
Given: Cost of the property = $3,500,000.LTV = 75%.Formula used:Debt to Equity Ratio = Total Debt / Total Equity.
Ann’s Debt to Equity ratio for this purchase can be calculated as follows:Total debt = (LTV / 100) × Cost of propertyTotal debt = (75 / 100) × $3,500,000Total debt = $2,625,000Total equity = Cost of property - Total debtTotal equity = $3,500,000 - $2,625,000Total equity = $875,000Debt to Equity Ratio = Total Debt / Total Equity Debt to Equity Ratio = $2,625,000 / $875,000Debt to Equity Ratio = 150 / 50 Debt to Equity Ratio = 3:1Therefore, the correct option is B. 3:1.
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Consider the market for fast food workers. Draw the labor-demand curve and labor-supply curve for this market. Supose the equilibrium wage is $8. Indicate the equilibrium quantify of labor (Lg) and th
The market for fast food workers can be evaluated through the labor demand and labor supply curves. When both of these curves intersect, an equilibrium wage and quantity of labor are established. It has been indicated that the equilibrium wage is $8, and we have to calculate the equilibrium quantity of labor .
This curve represents the number of workers in the market and their willingness to work at a given wage rate. An increase in the wage rate leads to an increase in the number of workers willing to work and vice versa. The curve slopes upwards. Labor Demand Curve: This curve represents the number of workers demanded by the fast food companies at a given wage rate. A higher wage rate leads to a lower demand for workers, and a lower wage rate leads to a higher demand for workers.
The curve slopes downwards. Equilibrium: The intersection point of the labor demand and supply curves is the equilibrium point. It represents the point at which the number of workers supplied by the market equals the number of workers demanded by the companies. The equilibrium quantity of labor will be the quantity at which the labor demand and supply curves intersect. In this case, it is indicated that the equilibrium wage is $8, so we need to find the quantity of labor at this point.
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Ten years ago, you deposited P5400 per month. You made the
deposit for 6 years and then stopped. 4 years later, you
established a belts and nuts factory, and start withdrawing P2,300
every month for a
The total deposit made for the period of six years can be computed as P5400*12*6 = P3,10,800. The number of months between the time the deposit stopped and when it resumed is four years * 12 months = 48 months.
The total amount withdrawn from the establishment of the belt and nuts factory is P2,300*48 = P1,10,400. In order to find the total deposit made over the period of six years, the monthly deposit made must be multiplied by the number of months in six years.P5400 is deposited monthly, therefore the total deposit made is P5400*12*6 = P3,10,800.When the deposit stopped after the sixth year, a period of four years went by before it was resumed.
Four years is equivalent to 48 months, thus, the total number of months the deposit was not made was 48 months.At the point of resuming the deposit, the establishment of a belt and nuts factory was created, which required the monthly withdrawal of P2,300. Therefore, the total amount withdrawn is P2,300*48 = P1,10,400.
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.In a perfectly competitive industry, there are two types of firms: low-cost producers and high-cost producers. The minimum average total cost of the high-cost producers is $150. The low-cost producers have a long-run total cost curve given by LTC = 150Q - 15Q2 + 0.4Q3, where LMC = 150 - 30Q + 1.2Q2. How much economic rent does the low-cost producer earn?
The economic rent earned by the low-cost producer is $1,275.
To calculate the economic rent earned by the low-cost producer, we need to compare its average total cost (ATC) with the market price.
Given that the low-cost producer's long-run total cost (LTC) is given by LTC = 150Q – 15Q² + 0.4Q², we can find its ATC by dividing LTC by the quantity produced (Q).
ATC = (150Q – 15Q² + 0.4Q³) / Q
= 150 – 15Q + 0.4Q²
The market price is given as $100.
To find the economic rent, we subtract the ATC from the market price and multiply it by the quantity produced (Q).
Economic Rent = (Market Price - ATC) * Q
= (100 - (150 - 15Q + 0.4Q²)) * Q
= (100 - 150 + 15Q - 0.4Q²) * Q
= (-50 + 15Q - 0.4Q²) * Q
= -0.4Q³ + 15Q² - 50Q
Substituting the given quantity (Q = 15) into the equation, we can find the economic rent
Economic Rent = -0.4(15)³ + 15(15)² - 50(15)
= -0.4(3375) + 15(225) - 750
= -1350 + 3375 - 750
= 1275
Therefore, the economic rent is $1,275.
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--The given question is incomplete, the complete question is given below " In a perfectly competitive industry, there are two types of firms: low-cost producers and high-cost producers. The minimum average total cost of the high-cost producers is $150. The low-cost producers have a long-run total cost curve given by LTC = 150Q –15Q2 + 0.4Q2, where LMC = 150 – 30Q + 1.2Q2. How much economic rent does the low-cost producer earn? p = $100, q = 15"--
Financial information is presented below: The gross profit rate would be 0.34. 0.40. 0.36. 0.64.
In accounting, gross profit is defined as the excess amount between revenue and cost of goods sold. The gross profit rate is calculated by dividing gross profit by revenue.
Gross profit rate can also be used to analyze the efficiency of a business by indicating the percentage of sales that contribute to the profit margin. Content loaded. Financial information is presented below:
The gross profit rate would be 0.34. 0.40. 0.36. 0.64.The given options for the gross profit rate are 0.34, 0.40, 0.36, and 0.64.
The gross profit rate can be calculated by dividing the gross profit by the revenue. There is no information about gross profit or revenue to calculate the gross profit rate.
Therefore, it is impossible to determine the correct answer based on the given information alone. So, the correct answer to the given question is indeterminable, i.e., cannot be determined.
Answer: The correct answer is indeterminable, i.e., cannot be determined.
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What condition(s) is(are) required to have an existing firm making zero profits in the long run equilibrium? O A. Identical products OB. Free entry and exit OC. Identical products as well as free entry and exit
The condition that is required to have an existing firm making zero profits in the long run equilibrium is B. Free entry and exit.
How can this condition be analysed?Same amount of money can be made by a firm if its resources were put to use in the next best option if economic profit was zero however Businesses are motivated to leave the market if the economic profit is negative since it would be more advantageous to employ their resources elsewhere.
Economists use the phrase "free entry" to refer to a situation in which producers can freely enter the market for an economic good by starting production and selling the commodity.
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The conditions which are required to have an existing firm making zero profits in the long run equilibrium is Free entry and exit which is Perfect Competition Option B
What is a Perfect CompetitionA Perfect Competition is a theoretical market structure that indicates how supply and demand affects price the competitive market
In a perfectly competitive market in long-run equilibrium, an increase in demand gives rise to ( a positive economics profits )economic profit that is the difference in profit and the cost of production in the short run and is indicate in the account in the long run that is it the free entry , also a a fall in demand indicates economic losses (negative economic profits) in the short run and which make some companies to exit in producing such product in the long run.
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Recall the last problem on Exam 2, which was about how a shelter cat should behave and whether Dave and Charlotte should adopt it. You should have found that the game had a semi- separating equilibrium. The payoff matrix in that game is shown below, with the cat's payoffs first. This numbering assumes that you numbered Nature's node as 1. (You can take a look at the exam solutions for how I got to this matrix, or to see the setup if you don't remember it.) DC A4L5 LALS CAT P2P3 64,-34 -58, 5 P2B3 -20, 18.5 -44, -26.5 a. Find and formally state the Bayesian-Nash equilibrium. Show your work, and if you are using decimals rather than fractions for any part of question 2, please go to four places after the decimal. Round carefully! b. If Dave and Charlotte observe that the Cat purrs, what is their posterior belief that the cat is Nice? What is their posterior belief that it is Mean? Show your work, using the method from class (HINT: you need to answer part "a" before you can do this part!) the aquilibrium from part "a" and Dave and Charlotte's posterior beliefs
If Dave and Charlotte observe the cat purring, payoff matrix their posterior belief is 0.389 for Nice and 0.611 for Mean.
a. To find the Bayesian-Nash balance, we want to decide the procedures that augment the normal utility for every player, given their convictions about the feline's kind. We should think about the two potential sorts of the feline: Pleasant (N) and Mean (M).
For Dave and Charlotte:
On the off chance that they take on the feline (A), their normal settlements are:
E[Dave(A)] = P(N) * 64 + P(M) * (-58)
E[Charlotte(A)] = P(N) * 5 + P(M) * (-44)
On the off chance that they don't take on the feline (N), their normal adjustments are:
E[Dave(N)] = P(N) * (-34) + P(M) * 18.5
E[Charlotte(N)] = P(N) * (-20) + P(M) * (-26.5)
To find the Bayesian-Nash balance, we want to compute the likelihood dissemination P(N) that makes Dave and Charlotte unconcerned between taking on or not embracing the feline.
Setting E[Dave(A)] = E[Dave(N)] and E[Charlotte(A)] = E[Charlotte(N)], we get:
P(N) * (64-34) + P(M) * (-58) = P(N) * (-20) + P(M) * 18.5
P(N) * (5-20) + P(M) * (-44) = P(N) * (-20) + P(M) * (-26.5)
Improving on the above conditions, we have:
30P(N) - 56P(M) = 0
19P(N) + 17.5P(M) = 0
Addressing these conditions all the while, we find:
P(N) = 0.3889 (around)
P(M) = 0.6111 (around)
Consequently, the Bayesian-Nash balance is:
Dave and Charlotte ought to embrace the feline with likelihood 0.3889 in the event that they notice the feline murmuring and with likelihood 0.6111 assuming they notice the feline murmuring.
b. To compute Dave and Charlotte's back convictions, we utilize Bayes' hypothesis. How about we accept that Dave and Charlotte at first doled out equivalent earlier probabilities to the feline being Great or Mean, i.e., P(N) = P(M) = 0.5.
Assuming Dave and Charlotte see that the feline murmurs, their back conviction that the feline is Pleasant can be determined as follows:
P(N|Purr) = (P(Purr|N) * P(N))/(P(Purr|N) * P(N) + P(Purr|M) * P(M))
P(N|Purr) = (0.3889 * 0.5)/(0.3889 * 0.5 + 0.6111 * 0.5)
P(N|Purr) = 0.3889/1
Consequently, their back conviction that the feline is Great, considering that it murmurs, is 0.3889 or roughly 0.389.
Also, their back conviction that the feline is Mean, considering that it murmurs, is:
P(M|Purr) = 1-P(N|Purr)
P(M|Purr) = 1-0.3889
P(M|Purr) = 0.6111 or roughly 0.611.
In outline, assuming Dave and Charlotte see that the feline murmurs, their back conviction that the feline is Pleasant is roughly 0.389, and their back conviction that it is Mean is around 0.611.
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True/False, Explain. Assuming the absence of negative externalities, the long run outcome under conditions of perfect competition will not be allocatively or productively efficient.
The statement that assuming the absence of negative externalities, the long run outcome under conditions of perfect competition will not be allocatively or productively efficient is false.
Perfect competition is an ideal market structure in which the following conditions prevail: many sellers, a standardized product, no barriers to entry or exit, and perfect information.
The following are some of the benefits of perfect competition:
Allocative Efficiency: Allocative efficiency is a state of economic equilibrium in which a given amount of output is generated at the lowest possible cost, resulting in a cost-effective allocation of resources.Productive Efficiency: Productive efficiency is the most cost-effective way to produce a good or service, with average total cost (ATC) at its minimum possible level in the long run.ATC is at its lowest possible level because firms compete with each other, resulting in efficient use of resources.
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an adverse supply shock is caused by select all that apply: a sudden increase in the inflow of immigrants a sudden increase in the global price of oil a great season for growing agricultural products a terrorist attack which destroys a domestic industry
An adverse supply shock is caused by a sudden increase in the global price of oil and a terrorist attack that destroys a domestic industry.An adverse supply shock is a negative event that results in a reduction of supply that pushes up prices of goods and services in the economy. The correct answer is option b and d.
These shocks can occur due to various reasons like weather patterns, natural disasters, government policy, and many others. Some of the main causes of adverse supply shocks are as follows :A sudden increase in the global price of oil: When the price of oil increases suddenly, it creates an adverse supply shock by increasing production costs across several industries.
This can lead to a reduction in supply, which then results in an increase in the prices of goods and services.A terrorist attack that destroys a domestic industry: Terrorist attacks can cause a significant disruption in the economy. When an attack destroys a significant part of the industry, the supply chain can be disrupted, which causes a reduction in supply.
This results in an increase in prices of goods and services. Other factors that can also cause adverse supply shocks include sudden increase in the inflow of immigrants and a poor season for growing agricultural products. The correct answer is option b and d.
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When managers practice 'Management By Waking Around which is a term used to describe a manager being out in the work area, interacting directly with employees while the employees are conducting their work, they are using the -type of operational control. a. Feedforwards b. Concurrent c. Charismatic d. Feedback
When managers practice 'Management By Waking Around', they are using the concurrent type of operational control. Option b is correct.
Management by Wandering Around (MBWA) is a practice that includes the leader visiting the workplace, meeting employees, asking questions, observing their work, and discussing issues with them. MBWA enables a leader to learn about workplace problems and to get an understanding of how employees feel about their work and the company's overall vision.
This interaction offers the leader the opportunity to motivate and mentor workers, assisting them in achieving their goals. This practice allows a leader to recognize difficulties early on, resulting in a faster solution. MBWA allows for a stronger organizational relationship between the leader and workers, which enhances worker engagement and loyalty.
The practice encourages workers to share their problems with the leader and provides the leader with more opportunities to offer advice.
Therefore, b is correct.
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The statement that "inflation is always and everywhere a
fiscal phenomenon" is one of the most famous statements in
economics it was made by
Paul Krugman
Jerome Powell
Thomas Sargent
Robert Solow David Gabel
The statement that "inflation is always and everywhere a fiscal phenomenon" is one of the most famous statements in economics.
The person who made this statement is Milton Friedman. Friedman was a Nobel Memorial Prize-winning economist and a leading advocate of monetarism, the view that a stable and low inflation rate is necessary for economic growth, employment, and prosperity. His statement is often interpreted to mean that inflation is primarily caused by monetary factors such as changes in the money supply, rather than real factors such as changes in the supply and demand for goods and services.
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Which of the following personality dimensions is typically associated with a person being nondepressed, secure, and content?
a. Extroversion b. Adjustment c. Agreeableness
d. Conscientiousness e. Openness to experience
Adjustment is a personality dimensions that is typically associated with a person being non-depressed, secure, and content. The correct option is B.
The personality dimension typically associated with a person being non-depressed, secure, and content is "adjustment." Adjustment refers to an individual's emotional stability, resilience, and ability to cope with stress. People with high levels of adjustment tend to have a positive outlook, exhibit emotional well-being, and are less prone to experiencing depression or anxiety.
They are secure in themselves and their environment, displaying a sense of contentment. In contrast, individuals with lower levels of adjustment may be more susceptible to negative emotions, insecurity, and dissatisfaction. Therefore, when it comes to being nondepressed, secure, and content, the personality dimension of adjustment plays a significant role.
The correct option is B.
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Assume that a company maintains no beginning or ending inventories and produces and sells 4,000 units of only one product for a price of $130 per unit. The company's variable manufacturing costs per unit are $80 and its fixed manufacturing overhead per unit is $24. Its variable selling and administrative expense is $12 per unit and its fixed selling and administrative expense is $50,000. What is the company's net operating income under absorption costing? Multiple Choice $4,000 O $6,000 $10,000 O $20,000
The steps to calculate the company's net operating income under absorption costing: Calculate the total sales revenue: $130/unit * 4,000 units = $520,000
Calculate the total variable manufacturing costs: $80/unit * 4,000 units = $320,000
Calculate the total fixed manufacturing overhead costs: $24/unit * 4,000 units = $96,000
Calculate the total variable selling and administrative expenses: $12/unit * 4,000 units = $48,000
Calculate the total fixed selling and administrative expenses: $50,000.Add the total variable manufacturing costs, fixed manufacturing overhead costs, variable selling, and administrative expenses, and fixed selling and administrative expenses to calculate the total product costs: $320,000 + $96,000 + $48,000 + $50,000 = $514,000
Subtract the total product costs from the total sales revenue to calculate the net operating income: $520,000 - $514,000 = $6,000.The company's net operating income under absorption costing is $6,000. This is calculated by subtracting the total product costs from the total sales revenue.
Absorption costing is a costing method that includes all manufacturing costs, both fixed and variable, in the cost of a product. This means that all manufacturing costs, including fixed manufacturing overhead costs, are allocated to the product and are included in the cost of goods sold. When a product is sold, the fixed manufacturing overhead costs are then expensed.
In this case, the company's total product costs are $514,000. This includes the variable manufacturing costs of $320,000, the fixed manufacturing overhead costs of $96,000, and the variable selling and administrative expenses of $48,000. The company's total sales revenue is $520,000. When the total product costs are subtracted from the total sales revenue, the company's net operating income is $6,000.
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1. finance going over budget due to exigency in the campus event:
If the finance department is going over budget due to an exigency in the campus event, there are a few potential implications.
First, the unexpected expenses incurred for the event may exceed the allocated budget, leading to a shortfall in available funds. This could result in the need to reallocate funds from other areas or seek additional funding to cover the deficit. Second, the over-budget situation may impact the overall financial performance of the organization, potentially affecting its financial statements and reporting. It is important for the finance department to address the issue promptly, assess the impact on the overall financial picture, and take necessary steps to mitigate any negative consequences. If the finance department is going over budget due to an exigency in the campus event, there are a few potential implications.
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In private carriage, which of the following is an incorrect statement?
A) If excess capacity exists, or in some other instances, private fleets can haul products for other unrelated organizations.
B) The organization does not have to own the equipment used to transport the products.
C) Private carriage is also a financial decision that organizations make.
D) Private fleets primarily transport products owned by their organization or are owned by other members of their supply chain.
E) The vast majority of private carriage involves truck transport.
The incorrect statement is, Private fleets primarily transport products owned by their organization or are owned by other members of their supply chain. Option D is the answer.
Private carriage refers to the transportation of goods by a company's own fleet or by hiring third-party carriers exclusively for their own use. Private fleets can transport products owned by their organization, but they generally do not transport products owned by other members of their supply chain.
Private carriage is distinct from common carriage, where transportation services are offered to the general public. Private carriage allows companies to have control over their transportation operations and tailor them to their specific needs. It is important to accurately understand the scope of private carriage, which typically involves the organization's products and not products owned by others in the supply chain. Option D is the answer.
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You are a manufacturer of tennis balls in the Mumbai Suburbs. Recently, you got an order to supply 1200 units of the same on a monthly basis. The cost of carrying an inventory of such tennis balls is 1.80 per unit on yearly basis. The production process requires a setup cost on a per run basis of Rs 1000.
Compute:
a. The EOQ, and define the need of computing the EOQ
b. The Optimum number of orders and optimum period of supply
The economic order quantity (EOQ) for the manufacturer is 1155 units per order and the manufacturer should supply 1155 units once a month for an optimal period of 0.963 months.
a) EOQ stands for Economic Order Quantity.
EOQ helps in finding the optimum order quantity, thereby minimizing the carrying and ordering costs. The need to compute EOQ is to minimize the total cost of inventory.
Given data:
Order quantity (Q) = 1200 units
Setup cost per run = Rs 1000Cost of carrying inventory = Rs 1.80 per unit on a yearly basis
The formula for calculating EOQ is: EOQ = √(2DS/H)
Where D is the annual demand S is the setup cost, and H is the holding cost per unit per year)
EOQ is calculated using the formula EOQ = √(2DS/H)
Here, Demand (D) = 1200 units Holding cost (H) = Rs. 1.80 per unit
Setup cost (S) = Rs. 1000EOQ = √((2 × 1200 × 1000)/1.8)
EOQ = √(2,400,000/1.8)EOQ = √1,333,333.33EOQ = 1154.7 ~ 1155 units
The economic order quantity (EOQ) for the manufacturer is 1155 units per order.
b) The optimum number of orders and optimum period of supply
The optimum number of orders is calculated by dividing the annual demand by the EOQ.
The optimum number of orders = Annual demand/EOQ= 1200/1155 = 1.04 ≈ 1The optimal period of supply (T) is calculated using the formula: T = EOQ/Annual demand
T = 1155/1200T = 0.963 The optimal period of supply is approximately 0.963 months.
Thus, the manufacturer should supply 1155 units once a month for an optimal period of 0.963 months.
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