Answer:
Results are below.
Explanation:
Giving the following information:
Units sold: 20,000 or 25,000 is not clear.
Sales revenue $ 150,000
Less: Variable costs 50,000
Contribution margin 100,000
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= total contribution margin / number of untis
For 20,000 units:
Unitary contribution margin= 100,000/20,000= $5
For 25,000 units:
Unitary contribution margin= 100,000/25,000= $4
Penny Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $ 157,800 Estimated machine-hours 4,650 Actual manufacturing overhead $ 157,500 Actual machine-hours 4,880 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The predetermined overhead rate is closest to: Multiple Choice $32.27 $33.94 $33.87 $42.62
Answer:
POAR = $33.94 per machine hour
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c.
The overheads are charged to units produced using the pre-determined overhead absorption rate, which is computed as follows:
Pre-determined overhead absorption rate (POAR)= Estimated Overhead/Estimated machine hours
POAR = 157,800/4,650 machine hours = $ 33.94 per machine hour
POAR = $33.94 per machine hour
g The Federal Reserve System is responsible for establishing monetary policy. It has a significant degree of independence from the executive, legislative and judicial branches of government. Its policymakers, the seven-member Board of Governors, serve 14 year terms with one member appointed every two years. There are 12 Federal Reserve District Banks spread around the county rather than one central bank in Washington, D.C. to carry out the policies established by the Board of Governors. Why do you think the Fed was set up in this manner
Answer:
The FED is legally "independent within the government", which means that it can make any decisions regarding monetary policy, but at the same time it is accountable for them (to the Congress, not the President).
The reason behind this independence, is that if the FED could be managed by the President, then if the President felt that he needed to boost the economy in the short run, e.g. before an election, it could engage in a large expansionary monetary policy, but after a few months the economy would probably collapse.
Members of the FED are supposed to be technical professionals, while politicians are politicians (exactly the opposite of technical professionals). Members of the FED should not worry that if they do not follow the orders of the current President, he/she would retaliate against them.
The FED was divided into 12 districts as a regional division since communications have been good, easy, safe and stable for the last 60-70 years or so, and the FED is much older. Besides communication issues, it is also a way of decentralizing the organization.
Suppose that consumers have an average MPC of 0.75. However, 20% of their income goes to the government in the form of taxes. Furthermore, 25% of disposable income is spent on foreign goods and services rather than domestic goods. Suppose that the government consumes $750 billion, investment is $500 billion, and exports are $250 billion. Autonomous consumption is also $500 billion. How large is the expenditure multiplier
Answer: 1.67
Explanation:
The following can be gotten from the question:
MPC = 0.75
Taxes = 20% = 0.2
Income spent for foreign goods = 25% = 0.25
Then we slot the values into the GDP formula. This will be:
GDP = C+I+G+NX
GDP = C+0.75(Y-0. 2Y)+G+I+NX-0. 25(Y-0. 2Y)
Y = C+0.75(0.8Y)+G+I+NX-0.25(0.8Y)
Y = C+0.6Y+G+I+NX-0. 2Y
Collect like terms
Y = C+I+G+NX+0.6Y-0.2Y
Y= C+I+G+NX+0.4Y
Y-0. 4Y = C+I+G+NX
Y(1-0.4) = C+I+G+NX
0.6Y = C+I+G+NX
Divide through by 0.6
0.6Y/0.6 = 1/0.6(C+I+G+NX)
Y = 1.67(C+I+G+NX)
The expenditure multiplier is 1.67
Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts $ 349,800 Factory machinery depreciation 56,500 Factory supervisor salaries 140,000 Factory direct labor 240,192 Factory supplies 46,400 Factory property tax 27,750 Advertising cost 27,500 Administrative salaries 50,500 Administrative-related depreciation 21,200 Total expected costs $ 959,842 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.51 per hour. 2. Determine the amount of applied overhead if 18,000 actual hours are worked in the upcoming year.
Answer:
See answers below
Explanation:
1 The predetermined overhead rate
= Cost of manufacturing overhead / Cost driver.
Where cost driver
= labor cost / labor rate
= $240,192 / $12.51
= 19,200 hours
Expected overhead
= depreciation + supervisor + supplies + property tax
= 56,500 + 140,000 + 46,400 + 27,750
Total overhead = 270,650
Overhead rate = 270,650 / 19,200
= 14.10 per hour
2. The amount t of applied overhead for of 18,500 actual hours were worked on
= 18,500 hours × $14.10
= $260,850
if you have good judgment and can handle pressure on the job, you show
Answer: professionalism
Explanation: This is because, it is expected of every professional person to have all these characteristics in the work place
Faldo, Inc., provides medical coverage to employees through a self-insured plan. Nick, the president of Faldo, receives $3,400 in medical expense reimbursements from the plan during the current year. What are the tax consequences to Nick under the following circumstances? a. All employees are fully covered by the plan. If all employees are covered by the plan, it is . As such, payments made to employees from self-insured medical reimbursement plans are from the employee's income. So, Nick's $3,400 payment is in his gross income. b. All employees are covered by the plan. However, only Faldo's executive officers are fully reimbursed for all expenses. All other employees are limited to a maximum reimbursement of $1,000 per year. As reimbursements are in favor of highly compensated employees, the rei
Answer:
a. All employees are fully covered by the plan.
Since all the company's employees are covered by the health plan in a similar way, then reimbursements are excluded from gross income. The plan treats all the employees int he same way, so the benefits are the same for everyone, which means that it is company perk and it doesn't discriminate.
b. All employees are covered by the plan. However, only Faldo's executive officers are fully reimbursed for all expenses. All other employees are limited to a maximum reimbursement of $1,000 per year.
Since the health plan discriminates between normal employees and executives, the additional payments made to Nick for being president of the company will be considered as part of his gross income. In this case, the first $1,000 is not included, but the rest, $2,400, must be considered as part of his income.
"If common stock was issued to acquire an $8,000 machine, how would the transaction appear on the statement of cash flows?" It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities. "It would be a negative $8,000 in the financing section and a positive $8,000 in the investing section." It would depend on whether you are using the direct or the indirect method. "It would be a positive $8,000 in the financing section and a negative $8,000 in the investing section."
Answer: It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities.
Explanation:
The Statement of Cashflows only contains transactions that spent or brought in cash. It therefore only deals with cash transactions. This is a noncash investing and financing activity and so it will not be recorded in the Cashflow statement.
The way to record this transaction would be to either record it on a schedule of noncash investing and financing activities or it can be included as a footnote at the bottom of the Cashflow statement.
Jack explains that he has strong potential in social analytics. He says, "I like to find out what customers want and make sure I meet their needs, and I think that’s the basis for good marketing. I’ve always done that, as a leasing agent, as a sales associate, and as a restaurant host. Using social analytics lets me identify the needs of customers on a scale that is really exciting, where I can see what entire consumer groups are thinking and feeling about various products." He is demonstrating credibility primarily in what ways?
Explanation:
He is demonstrating credibility in stating that the basis for an effective marketing strategy is to discover customers' wants and needs and be able to meet them.
Social anaylitcs is a tool for collecting data from users of social networks and identifying behaviors and characteristics that can help marketers to interpret data regarding their potential audience, their needs, their interaction, feelings, identify consumption trends, etc. .
This ability helps to identify patterns that can assist an organization to develop personalized marketing strategies and actions aligned with its potential audience to engage, generate more sales, assist in the decision-making process, etc.
Which of the following would the human resource manager be likely to handle?
A. A problem with the air condition system
B. A strategic plan to increase production
Х
C. A dispute between two employees about a departmental budget
D. A dispute between two managers about an employee's responsibilities
Answer:D. A dispute between two mangers about an employees responsibility
Explanation:
A dispute between two managers about an employee's responsibilities would the human resource manager be likely to handle. Hence, option D is correct.
What is the work of a human resource manager?Managers of human resources plan, organize, and oversee an organization's administrative operations. They supervise the hiring, interviewing, and onboarding of new employees, assist with chief executives on strategic planning, and act as a liaison between management and personnel in a business.
It's no surprise that HR is one of the fastest-growing industries in the US given the critical role it plays in ensuring businesses run efficiently. In fact, the Bureau of Labor Statistics (BLS) anticipates that by 2030, the HR sector would see an increase of 70,000 jobs.
interacting with staff and employees through various means. holding meetings to evaluate the needs and issues of the firm. deciding on the best course of action in difficult circumstances or employee disputes. guiding groups through the processes of onboarding and training.
Thus, option D is correct.
For more information about human resource manager, click here:
https://brainly.com/question/23428372
#SPJ2
Former Senate Majority Leader George Mitchell responded to a white supremacist rally in Charlottesville, Virginia, with this argument: "Amazon was created by Jeff Bezos, whose adoptive father was born in Cuba. Google was co-founded by Sergey Brin, who was born in Russia. Would we be a better country if they had not been admitted? Of equal importance, what are the chances that if Steve Jobs had lived his life in Syria he would have created Apple? Or Jeff Bezos in Cuba? Or Sergey Brin in Russia?" He argued that
Options are;
- America should come first in negotiations with other countries
- diversity should only include geniuses
-diversity is America's strength
Answer:
-diversity is America's strength
Explanation:
Note, we are to consider the context in which the Former Senate Majority Leader George Mitchell was speaking. Remember, we are told he was responding to a group that is often known for their anti-immigration/diversity sentiments.
Hence, his statements were more of an argument in support of diversity. In other words, diversity is America's strength.
xercise 2-11 (Algo) Adjusting entries; fiscal year [LO2-6] The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $8,400 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $137,500 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $28,800 representing rent for the 2021 calendar year and credited deferred rent revenue. Depreciation on the office building is $21,000 for the fiscal year. Employee salaries for the month of June 2021 $21,000 will be paid on July 20, 2021. Prepare the necessary year-end adjusting entries at the end of June 30, 2021, for the above situations. (If no entry is requir
Answer:
1. Dr Insurance expense 2,100
Cr Prepaid insurance2,100
2. Dr Interest expense 2,750
Cr Interest payable 2,750
3. Dr Deferred rent revenue 7,200
Cr Rent revenue 7,200
4. Dr Depreciation expense 5,250
Cr Accumulated depreciation-building 5,250
5. Dr Salaries and wages expense 21,000
Cr Salaries and wages payable 21,000
Explanation:
Preparation of Journal entries
1. Based on the information given we were told that the company paid for its yearly fire insurance premium of the amount of $8,400 which means that the Journal entry will be:
Dr Insurance expense 2,100
($8,400 × 3/12)
Cr Prepaid insurance2,100
2. Based on the information given we were told that the company borrowed the amount of $137,500 from a local bank that include a principal and interest at 8% which means that the Journal entry will be:
Dr Interest expense 2,750
($137,500 × 8% × 3/12)
Cr Interest payable 2,750
3. Based on the information given we were told that the company collected the amount of $28,800 which represent rent for the year 2021 which means that the Journal entry will be:
Dr Deferred rent revenue 7,200
($28,800 × 3/12)
Cr Rent revenue 7,200
4. Based on the information given we were told that Depreciation on the office building cost the amount of $21,000 which means that the Journal entry will be:
Dr Depreciation expense 5,250
($21,000 × 3/12)
Cr Accumulated depreciation-building 5,250
5. Based on the information given we were told that the company employee salaries for the month of June 2021 which is the amount of $21,000 will be paid on July 20, 2021 which means that the Journal entry will be:
Dr Salaries and wages expense 21,000
Cr Salaries and wages payable 21,000
Prompt What are three ways to increase productivity?
Answer:
Administrar bien tu tiempo...
Definir bien lo que vas a hacer durante el día...
Seleccionar tus prioridades del día...
Answer:
Manage your time well...
Define well what you are going to do during the day...
Select your priorities for the day...
Explanation:
your welcome for the English
Linden, Inc. uses a 5,400 square foot factory space that it rents for $3,300 a month for all its manufacturing activities. Linden has decided to switch to an activity-based costing system, and has identified its activities as follows: Preparation and Setup, Machining, Finishing, and Quality Control. 2,900 square feet of the factory are used for machining, while 1,000 square feet (each) are used for Preparation and Setup and Quality Control. Finishing uses 500 square feet. When assigning indirect costs to each activity, how much factory rent should be assigned to the Preparation and Setup cost pool
Answer:
$611
Explanation:
We can easily calculate the rate assigned to the preparation and setup department by dividing the total rent in total space and multiplying it to the space assigned to the preparation and setup department.
DATA
Total space = 5400 sq foot
total rent = $3,300
Space used for preparation and setup = 1,000 sq foot
Solution
Rent assigned to preparation and setup = (Total Rent/Total space) x Space used by preparation and setup department
Rent assigned to preparation and setup = ($3.300/5400) x 1,000
Rent assigned to preparation and setup = $611
A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from the bank if you wish). The value of the company to the owners is the difference between the total value and the amount owed to the debt holders. What is the current value of the firm to the owners? Now assume that a project is presented to the owners that results in a loss of the entire value of the company with a probability of 50% and results in a gain in value of $500,000 with probability 50% (resulting in a total value of $1,200,000). Show that this in expectation decreases the firm’s value, and explain why, in spite of that, the owners of the company would want to undertake the project.
Answer:
What is the current value of the firm to the owners?
total value - debt = $700,000 - $500,000 = $200,000
Show that this in expectation decreases the firm’s value, and explain why, in spite of that, the owners of the company would want to undertake the project.
the expected value of the company after the new project = (50% x 0) + (50% x $1,200,000) = $600,000, so the net value of the company actually decreases by $100,000.
the issue here is that if things go wrong, the owners will lose $200,000, but if things go well, then the owners equity will increase by $500,000 to a total of $700,000. In this case, the expected value of this project for the owners = (50% x -$200,000) + (50% x $700,000) = $250,000.
I am assuming that this company is some type of corporation, LLC or LLP, not a partnership or sole proprietorship. Under current bankruptcy laws, when a cooperation goes bankrupt, the owners are not personally liable for it.
If the absence of an agreement to the contrary in partnership, what are the all partners entitled?
a) A share in running of the business
b) An equal share of profits I
c) Equally contribute to any losses
d) All of above
Answer:
d) All of above
Explanation:
A partnership agreement provides guidelines on how two or more partners will manage their partnership business. It is the contract that dictates each partner's roles, profit and loss sharing formula, and personal liability of each in case of insolvency.
In the absence of a partnership agreement, the law prescribes that partners share profits and losses equally. All partners assume equal rights to responsibilities and liabilities.
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Direct Materials Conversion Units Completed and transferred out 92,000 92,000 Units in Ending Work in Process: Direct Materials (9,000 * 100%) 9,000 Conversion (9,000 * 60%) 5,400 Equivalent Units of Production 101,000 97,400 Cost per Equivalent Unit Costs of beginning work in process $ 42,400 $ 62,300 Costs incurred this period 141,900 190,900 Total costs $ 184,300 $ 253,200 Cost per equivalent unit $ 1.82 per EUP $ 2.60 per EUP
The total conversion costs transferred out of the Canning Department should be:_______.
Answer:
$239,200
Explanation:
The computation of total conversion costs transferred out of the Canning Department is shown below:-
Total conversion costs transferred out = Equivalent units × Cost per equivalent unit of conversion cost
= 92,000 × $2.60
= $239,200
Therefore for computing the total conversion costs transferred out we simply applied the above formula.
On October 1, Sponge Bob, Inc. received $240 up front from a customer for a yearly magazine subscription. Magazines are provided one per month.
Record the following journal entries.
a. Record the initial receipt of payment from the customer on October 1.
b. Record the adjusting entry for three months of magazines provided to the customer by December 31
Answer:
a.
Oct 1 Cash $240 Dr
Unearned Subscription Revenue $240 Cr
b.
Dec 31 Unearned Subscription Revenue $60 Dr
Subscription Revenue $60 Cr
Explanation:
a.
The receipt of $240 upfront in advance from a customer is a liability for the business as the business has received cash for service that is yet to be provided. The business will record this as a debit to the cash account and credit to a liability account of Unearned Service Revenue.
b.
On 31 december, the business has provided magazines for 3 months thus it has earned revenue for 3 months. The revenue for 3 months is,
Revenue per month = 240 / 12 = 20
For 3 months = 20*3 = 60
The business will record this as a credit to the subscription revenue and a debit to the unearned subscription revenue
An entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
a. a community banker.
b. an investment banker.
c. a commercial banker.
d. an executive banker.
Answer:
The answer is B. Investment banker.
Explanation:
An entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
: b. an investment banker.
Who is an investment banker?An investment banker is a person or company which help in the following:
Provide financial services They act as financial advisoryHelp to raise capital etcAn entrepreneur or corporation who is in need of capital can reach out or visit an Investment banker reason being they help to raise capital for those who does not have money to start up their own business.
Inconclusion an entrepreneur who needs large amounts of capital to create and distribute a new invention would most likely visit
: b. an investment banker.
Learn more about investment banker:https://brainly.com/question/12301548
Required information SB (Static) Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process [LO 3-2, 3-3, 3-S1] [The following information applies to the questions displayed below.] Silver Company manufactures kites and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 40% for conversion) 52,000 units Direct materials $ 80,000 Conversion cost $ 110,000 Number of units started 158,000 units April costs Direct materials $ 226,000 Conversion cost $ 336,000 Work in process, April 30 (100% complete for materials, 20% for conversion) 80,000 units E3-7 (Static) Weighted-Average Method [LO 3-2, 3-3] Required: Using the weighted-average method, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. 4. Reconcile the total cost of work in process.
Answer:
1)
beginning WIP April 1 52,000 units
units started 158,000
ending WIP 80,000 units
units completed = 158,000 + 52,000 - 80,000 = 130,000
2) equivalent units:
for direct materials = 130,000 + 80,000 = 210,000
for conversion costs = 130,000 + (80,000 x 0.2) = 146,000
3) cost per equivalent unit:
direct materials = ($80,000 + $226,000) / 210,000 = $1.45714
conversion costs = ($110,000 + $336,000) / 146,000 = $3.05479
total cost per EUP = $4.51193
4) ending work in process
Material Conversion Total
Beginning WIP $80,000 $110,000 $190,000
Cost incurred $226,000 $336,000 $562,000
Total Cost $306,000 $436,000 $752,000
Equivalent Units 210,000 145,000
Cost per EUP $1.45714 $3.05479 $4.51193
Ending WIP EUP 80,000 16,000
Cost of ending WIP $116,571.20 $48,876.64 $165,447.84
A cell phone company has a fixed cost of $1,500,000 per month and a variable cost of $20 per month per subscriber. The company charges $39.95 per month to its cell phone customers. (2.2) a. What is the breakeven point for this company? b. The company currently has 73,000 subscribers and proposes to raise its monthly fees to $49.95 to cover add-on features such as text messaging, song downloads, game playing, and video watching. What is the new breakeven point if the variable cost increases to $25 per customer per month? c. If 10,000 subscribers will drop their service because of the monthly fee increase in Part (b), will the company still be profitable?
Answer:
a. Break-even point = Fixed Cost divided by Contribution per unit
= $1,500,000/$19.95
= 75,188 subscribers
b. New break-even point = $1,500,000/$24.95
= 60,120 subscribers
c. Subscriber base = 73,000
less dropped subscribers 10,000
adjusted subscribers = 63,000
The company will still be profitable because it will break-even with 60,120 subscribers. The excess 2,880 (63,000 - 60,120) subscribers after the break-even point of 60,120 will cause the company to make some profit.
Explanation:
a) Data and Calculations:
Fixed cost = $1,500,000 per month
Variable cost $20 per month per subscriber
Charges to customers per month $39.95
Contribution = $39.95 - $20 = $19.95
New variable cost = $25
New monthly charge = $49.95
Contribution per unit = $49.95 - $25 = $24.95
a. The breakeven point is 75,188.
b. The new breakeven point is 60,120.
c. If 10,000 subscribers will drop their service because of the monthly fee increase, the firm will still be profitable.
The formula used to determine breakeven point is : Fixed cost / (price - variable cost)
Initial breakeven point = $1,500,000 / ($39.95 - $20)
$1,500,000 / $19.95 = 75,188
New breakeven point = $1,500,000 / ($49.95 - $25)
$1,500,000 / $24.95 = 60,120
Profit = total revenue - total cost
Total revenue = $49.95 x 63,000 = 3,146,850
Total cost = $1,500,000 + ($25 x 63,000) = 3,075,000
Profit = 3,146,850 - 3,075,000 = $71,850
A similar question was answered here: https://brainly.com/question/14971552
The Better Business Buniau is a consumer protection organization sponsored by consumer groups.
O a. True
O b. False
A company adopts an advertising campaign to weekly add to its customer base. It assumes that as an average fifty percent of its new customers, those added the previous week, will bring in one friend, but those who have been customers longer will not be very effective as recruiters and can be discounted. A media campaign brings in 10,000 customers initially. What is the expected total number of customers with whom the company can expect to have dealings
Answer:
20,000 customers
Explanation:
The campaign initially brought in 10,000 new customers. These 10,000 customers should bring 5,000 more. Then these 5,00 should bring 2,500 more customers and so on. in order to solve this question, we can calculate a customer multiplier = 1 / % of customers who bring additional new customers = 1 / 50% = 2
the total number of new customers = 10,000 x 2 = 20,000
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs 2,900,000 Total overhead 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billable hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2.
Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
Answer:
Employee costs for year 2 should be $2,436,000.
Total costs in year 2:
$35,200+$2,436,000+$480,000+$735,000=$3,686,200
b) Total costs per billable hour for year 2=$3,686,200/20000=$184.31
Explanation:
An industrial system has two industries with the following input requirements. (a) To produce $1.00 worth of output, Industry A requires $0.20 of its own product and $0.50 of Industry B's product. (b) To produce $1.00 worth of output, Industry B requires $0.40 of its own product and $0.30 of Industry A's product. Find D, the input-output matrix for this system. A B D = A B Solve for the output matrix X in the equation X = DX + E, where E is the external demand matrix E = 10,000 20,000 . (Round to the nearest whole number.)
Answer:
X = 1/11 * [ 250000; 575000]
Explanation:
To find D we need to build the equation first by working out the equation further we will get the value of x then we can easily work out the equation of matrix X
X = DX + E
Let the matrix X be x,y
The equation will be
x - (0.10x + 0.20y) = 10000
y -(0.50x+0.40y) = 20000
0.9x - 0.2y = 10000
-0.5x+0.6y = 20000
The value of x is equal to 250000/11 and y is equal to 575000/11
Hence the matrix X will be
X = 1/11 * [ 250000; 575000]
Hit Thanks if you liked the answer
New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $1,000,000 before taxes each year. The corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%. The firm does not need to retain any earnings, so all of its after-tax income will be paid out as dividends to its investors. The investors will have to pay personal taxes on whatever they receive. How much additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation? Group of answer choices $26,078 $20,332 $22,763 $19,006 $22,100
Answer:
$22,100
Explanation:
Calculation for the additional spendable income
First step is to find the Corporation Spendable income amount
Corporate taxes$340,000
($1,000,000*34%)
Income after corporate tax $660,000
($1,000,000-$340,000)
Tax on dividends $231,000
($660,000*35%)
Spendable income $429,000
($660,000-$231,000)
Second step is to find the Partnership Spendable income amount
Taxes paid by business $0
Income received by investors $1,000,000
Taxes paid by partners as personal income $350,000
($1,000,000*35%)
Spendable income $650,000
($1,000,000-$350,000)
Last step is to find the Difference between Corporation Spendable income amount and the Partnership Spendable income amount
Using this formula
Difference in Spendable income=Corporation Spendable income amount - Partnership Spendable income amount
Let plug in the formula
Difference in Spendable income=$429,000-$650,000
Difference in Spendable income=$221,000
Which means that the amount of $221,000 is the
Total gain amount from being a partnership.
Hence, the Individual investor gain will be calculated as $221,000*10%
Individual investor gain=$22,100
Therefore the amount of spendable income that each investor will have if the business is organized as a partnership rather than as a corporation will be $22,100
The additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation is $22,100.
The calculation is as follows:Income if formed as corporation in hands of each shareholder should be
= 1,000,000 × 10% × ( 1- .34 ) × (1- .35)
= 100,000 × .66 × .65
= $42,900
Now
Income will be taxable in hands of partner = 1,000,000 ×10% ×(1-.35)
= 100,000 ×.65
= 65000
Now
Additional income should be
= $65,000 - $42,900
= $22,100
Learn more: https://brainly.com/question/24908711?referrer=searchResults
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Securities: Fair Value 12/31/2020 Fair Value 12/31/2021 Amortized Cost 12/31/2020 Amortized Cost 12/31/2021 ABC Co. Bonds $ 385,000 $ 410,000 $ 377,500 $ 370,000 Trading Securities: Fair Value 12/31/2020 Fair Value 12/31/2021 Cost DEF Co. Bonds $ 55,000 $ 66,000 $ 69,100 GEH Inc. Bonds $ 57,000 $ 87,000 $ 49,000 IJK Inc. Bonds $ 54,000 $ 48,500 $ 42,900 Available-for-Sale Securities: Fair Value 12/31/2020 Fair Value 12/31/2021 Cost LMN Co. Bonds $ 147,400 $ 161,900 $ 150,000 What would be the balance in Beresford's accumulated other comprehensive income with respect to these investments in its 12/31/2021 balance sheet (ignore taxes)
Answer:
$11,900
Explanation:
Other Comprehensive income is adjusted only for Available for sale securities. This is a cumulative increase in Fir value above cost for its available for sale securities
Available for sale securities = Fair value - Cost of Investment
Available for sale securities = $161,900 - $150,000
Available for sale securities = $11,900
The balance in Beresford's accumulated other comprehensive income with respect to these investments on its 12/31/2021 balance sheet would be $14,500.
How to Solve the Problem?To determine the balance in Beresford's accumulated other comprehensive income (OCI) for the investments in its 12/31/2021 balance sheet, we need to identify the changes in fair values of available-for-sale securities. The accumulated OCI includes unrealized gains or losses from these investments.
First, let's calculate the changes in fair values of available-for-sale securities:
Change in Fair Value = Fair Value 12/31/2021 - Fair Value 12/31/2020
For LMN Co. Bonds:
Change in Fair Value = $161,900 - $147,400 = $14,500
Next, we add up the changes in fair values of all available-for-sale securities:
Total Change in Fair Value = Change in Fair Value (LMN Co. Bonds)
Total Change in Fair Value = $14,500
Finally, we include this total change in fair value in the accumulated OCI balance:
Balance in Accumulated OCI = Total Change in Fair Value
Balance in Accumulated OCI = $14,500
Therefore, the balance in Beresford's accumulated other comprehensive income with respect to these investments on its 12/31/2021 balance sheet would be $14,500.
Learn more about balance sheet here: https://brainly.com/question/1113933
#SPJ6
6.3) Annie Lennox recently took over a cleaning supply store. Her predecessor always ordered carpet shampoo in quantities of 100 units. Annie is reevaluating this policy. Based on her analysis, the cost to place each order is $35 and the holding cost is $8 per shampoo bottle per year. The annual demand for this product is 2500 bottles. Should Anne change the current order policy and, if so, how much can she save
Answer:
Annie should increase the order size to 148 bottles per order and she will be able to save $91.85 per year.
Explanation:
we must calculate the economic order quantity (EOQ) in order to determine the size of the order that reduces costs:
EOQ = √[(2 x S x D) / H]
S = cost per order = $35D = annual demand = 2,500 bottles of shampooH = holding cost per unit) = $8EOQ = √[(2 x 35 x 2,500) / 8] = √(175,000 / 8) = √21,875 = 147.90 ≈ 148 bottles of shampoo
total cost when ordering 100 bottles = (25 orders x $35) + (100/2 x $8) = $875 + $400 = $1,275
total cost when ordering 148 bottles = (16.89 orders x $35) + (148/2 x $8) = $591.15 + $592 = $1,183.15
Annie will save $1,275 - $1,183.15 = $91.85 per year
A large national company has seen its stock value decrease during the past
month. Which of the following might be a reasonable explanation for the
cause of this?A the company new product line is a top seller B the company sales forecast is extremely positive C they are under criminal investigation and facing potential charges D the company is experiencing tremendous growth
Answer: is C They are under criminal investigation and facing potential charges
Explanation:
We made a distinction between pro-business policies and pro-market policies. Which of the following is a way to put that distinction? Pro-market policies mean businesses can earn profit and loss; pro-business policies means businesses only make profit. Pro-business policies means companies only make money while pro-market policies means businesses also help the environment. Pro-market policies means all businesses must fail while pro-business policies means businesses never fail. Pro-business policies deal with entrepreneurship and innovation while pro-market policies only deal with exchange.
Answer:
The correct answer is: Pro-market policies mean businesses can earn profit and loss; pro-business policies means businesses only make profit.
Explanation:
Pro-market policies are those that establish norms that help the free market to operate in balance, without any kind of benefit in favor of a specific company, in this way it benefits both companies and consumers, therefore it sets up in a normal market situation where companies cannot make profits and losses.
In a pro-business policies, the government offers advantages to specific companies to increase profitability, such as tax incentives, privileges, etc.
Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has five years to maturity, whereas Bond Dave has 18 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Bond Sam % Percentage change in price of Bond Dave % If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Bond Sam % Percentage change in price of Bond Dave %
Answer:
a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave?
Bond Sam's price will change by -7.54% Bond Dave's price will change by -14.33%b. If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave?
Bond Sam's price will change by 8.32% Bond Dave's price will change by 20.29%Explanation:
Bond Sam
if market interest rates increase by 2%:
11% / 2 = 5.5% semiannual payments
5 years to maturity = 10 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 5.5%)¹⁰ = $585.43PV of coupon payments = 45 x 7.53763 (PV annuity factor, 5.5%, 10 periods) = $339.19new market price = $585.43 + $339.15 = $924.62
if interest increases by 2%, present value (market value) will decrease by $75.38 ⇒ 7.54% decrease
if market interest rates decrease by 2%:
7% / 2 = 3.5% semiannual payments
5 years to maturity = 10 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 3.5%)¹⁰ = $708.92 PV of coupon payments = 45 x 8.31661 (PV annuity factor, 3.5%, 10 periods) = $374.25new market price = $708.92 + $374.25 = $1,083.17
if interest decrease by 2%, present value (market value) will increase by $83.17 ⇒ 8.32% increase
Bond Dave
if market interest rates increase by 2%:
11% / 2 = 5.5% semiannual payments
18 years to maturity = 36 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 5.5%)³⁶ = $145.52PV of coupon payments = 45 x 18.80474 (PV annuity factor, 5.5%, 36 periods) = $711.21new market price = $145.52 + $711.21 = $856.73
if interest increases by 2%, present value (market value) will decrease by $143.27 ⇒ 14.33% decrease
if market interest rates decrease by 2%:
7% / 2 = 3.5% semiannual payments
18 years to maturity = 36 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 3.5%)³⁶ = $289.83 PV of coupon payments = 45 x 20.29049 (PV annuity factor, 3.5%, 36 periods) = $913.07new market price = $289.83 + $913.07 = $1,202.90
if interest decrease by 2%, present value (market value) will increase by $202.90 ⇒ 20.29% increase
