Answer:
20,000
Explanation:
Only rented house is counted as per gdp
Kevin lives in New York City and runs a business that sells pianos. In an average year, he receives $735,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $435,000; he also pays wages and utility bills totaling $255,000. He owns his showroom; if he chooses to rent it out, he will receive $10,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Kevin does not operate this piano business, he can work as an accountant, receive an annual salary of $24,000 with no additional monetary costs, and rent out his showroom at the $10,000 per year rate. No other costs are incurred in running this piano business.
Identify each of Van's costs in the following table as either an implicit cost or an explicit cost of selling pianos.
Implicit Cost Explicit Cost
The wages and utility bills that Van pays
The wholesale cost for the pianos that Van pays
the manufacturer
The rental income Van could receive if he chose to
rent out his showroom
The salary Van could earn if he worked as an accountant
Complete the following table by determining Van's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit
Economic Profit
Alternatively, the economic profit he would earn as an accountant would be____.
If Van's goal is to maximize his economic profit, he stay in the piano business.
Van is not earning a normal profit because his profit is negative.
A. True
B. False
Answer:
Implicit Cost and Explicit Cost
Identification of Van's cost as either an implicit cost or an explicit cost of selling pianos:
Implicit costs:
The rental income Van could receive if he chose to rent out his showroom
The salary Van could earn if he worked as an accountant
Explicit costs:
The wages and utility bills that Van pays
The wholesale cost for the pianos that Van pays the manufacturer
2. Determining Van's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit Economic Profit
Sales revenue $735,000 $735,000
Cost of pianos (435,000) (435,000)
Wages and Utility (255,000) (255,000)
Opportunity costs:
Rent (10,000)
Salary as an accountant (24,000)
Profit $45,000 $11,000
3. Alternatively, the economic profit he would earn as an accountant would be_$34,000___.
4. If Van's goal is to maximize his economic profit, he stay in the piano business.
False
5. Van is not earning a normal profit because his profit is negative.
B. False
Explanation:
Van's economic profit or loss is the difference between the revenue received from the sale of the pianos and the costs of all inputs used, as well as opportunity costs of forgone rent revenue and salary income as an accountant. To compute economic profit, opportunity costs and explicit costs are deducted from revenues earned. But to compute accounting profit, only the explicit costs are deducted from revenues earned.
Judith was in a car accident in May and had to pay a $1,000 deductible. In September, she was at fault in another accident. What is true?
O She will pay the deductible again
Her insurance will pay the total cost.
She will pay the total bill, without deductible.
O Her insurance will decrease the deductible.
Answer:
She will pay the deductible again
Explanation:
that is the correct
whats the difference between elastic and inelastic in business
Answer:
Elastic demand means there is a substantial change in quantity demanded when another economic factor changes typically the price of the good or service, whereas inelastic demand means that there is only a slight or no change in quantity demanded of the good or service when another economic factor is changed.
Explanation:
Hope this helps
From,
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The Blacksburg Company is separating materials handling cost into fixed and variable components. The following data have been collected over a five-month period ( all amounts are in thousands): Direct Cost of Materials Month Labor Hours Materials Issued Handling Costs 1 4 $7 $1.60 2 5 5 1.70 3 6 4 1.80 4 7 8 1.90 5 8 6 2.00
Required:
(1) Determine the fixed and variable materials handling using direct labor hours as the measure of volume.
(2) Determine the fixed and variable materials handling cost by the method of least squares using direct labor hours as the measure of volume.
Answer:
1. Variable cost = $0.10, fixed cost = $1.2
2. Variable cost = $0.10, fixed cost = $1.2
Explanation:
This question simply wants us to solve for variable cost and fixed cost using two different methods
1. Variable cost = (y2 - y1)/x1-x2
Y2 is the cost of at the highest level of activity = $2
Y1 is cost at lowest level of activity = $1.6
X2 = highest level of direct labor = 8
X1 = lowest level of labor = 4
V = variable cost = 2-1.6/8-4
= 0.4/4 = $0.1
Fixed cost = y2 - V*x2
= 2 - (0.1*8)
= $1.2
So the fixed cost here is $1.2 and variable cost is $0.10
2.
This requires us to solve using the least squares method. We first create a table as shown in the attachment and then solve for variable cost and fixed cost.
n = 5, xy = 55, x = 30, y = 9
We solve for a and b
b = 5x55-30x9/5x190-30²
= 275-270/950-900
= 5/50
= $0.10 this is the variable cost
a = 9-0.1(30)/5
= 6/5
= $1.2 this is the fixed cost
So using both methods in 1 and 2
Fixed cost = $1.2, variable cost = $0.10
Imagine that your friend is the CEO of a company, called Magna Clothes, that manufactures cool new clothing accessories for both men and women. Now that it has achieved a large following and a level of success in the United States, Magna Clothes wants to start conducting business abroad. Your friend knows you have taken a management class and has asked you to explain the history and significance of the World Trade Organization (WTO). Which of the following statements are true? Check all that apply.
a) The WTO allows countries to have observer status before becoming full members, so they can follow discussions on topics that are of direct interest to them.
b) The WTO limits access to its discussions and information to only its member nations.
c) The WTO came into existence in January 1995.
d) Opponents of the WTO sometimes contend that the organization focuses too
narrowly to the globalization of trade, at the expense of human rights and the environment.
Answer:
a) The WTO allows countries to have observer status before becoming full members, so they can follow discussions on topics that are of direct interest to them.
⇒ TRUE, that way potentially new members get to understand how the WTO works.
c) The WTO came into existence in January 1995.
⇒ TRUE, the WTO birthday is January 1, 1995.
d) Opponents of the WTO sometimes contend that the organization focuses too narrowly to the globalization of trade, at the expense of human rights and the environment.
⇒ TRUE, the WTO's focus is on trade, and it tends to ignore many social and environmental factors.
What is the term for a loan with a co-signer?
A)A automobile loan
B)A guaranteed loan
C)A consignment loan
D)A contractual loan
Teresa's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Teresa's very tiny kitchen has barely enough room for the four ovens in which her workers bake the pizzas. Teresa signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this, and because Teresa's kitchen cannot fit more than four ovens, Teresa cannot change the number of ovens she uses in her production of pizzas in the short run.
However, Teresa's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Teresa lets them know how many workers she needs for each day of the week. In the short run, these workers are________ inputs, and the ovens are __________ inputs
Answer:
Variable inputs;Fixed inputs
Explanation:
Based on the information given In the short run, these workers are VARIABLES inputs, and the ovens are FIXED inputs reason been that we were told that her decision as regards to how many workers to use often vary from week to week due to the fact that her workers are students which means that her workers can often be changed which was why it was regarded as VARIABLE INPUTS while ovens on the other hand are considered to be FIXED INPUTS reason been that we were told that she cannot change the number of ovens which she uses in her production of pizzas due to the fact that her kitchen cannot contain more than four ovens which means that the number of oven cannot be my changed which was why they are regarded as FIXED INPUTS.
Rihanna Company is considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $60,000 over its 10-year useful life. Annual depreciation will be $45,000. Compute the cash payback period
Answer:
7.5 years
Explanation:
Payback is the period a project takes to recover its initial capital outflow.
The formula for calculating the payback period = Initial investments divide by net cash flow per period.
Payback Period = Initial Investments/ Net Cash Flow per Period
Payback period = $450,000/ $60,000
Payback period =7.5 years
Guest rooms in upscale hotels during the period 1900-1950 were actually smaller than the standard sized room found in the economy class hotel of today. true or false
answer is false
Explanation:
I had that question it was false if not correct me please
Guest rooms in upscale hotels during the period 1900-1950 were actually smaller than the standard sized room found in the economy class hotel of today. True.
What is a guest room?
A guest house is a kind of lodging. In some parts of the world guest houses are a type of inexpensive hotel-like lodging.
What is period 1900-1950?The 20th century was dominated by significant events that defined the modern era such as Spanish flu pandemic, World War I and World War II, nuclear weapons, nuclear power and space exploration, nationalism and decolonization, technological advances, and the Cold War and post-Cold War conflicts.
What is the economy class?Economy class, also called third class, coach class, steerage, or to distinguish it from the slightly more expensive premium economy class, standard economy.
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The management accountant's responsibility under the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice includes the responsibility to "mitigate actual conflicts of interest." This responsibility fits within which of the four standards in the IMA Statement?
A) Communication.
B) Integrity.
C) Honesty.
D) Quality.
E) Confidentiality.
Answer:
B) Integrity.
Explanation:
The Institute of Management Accountants is body, they are regarded as association for financial professionals and they were recognized globally.
The Four standards that is Been set up as ethical conduct in management accountants in IMA are;
✓competence
✓ confidentiality
✓integrity
✓credibility
Integrity which is one of the standards is essential, it involves the accountant been honest and be forthright when handling financial information of clients.
According to the Bureau of Economic Analysis (BEA), real gross domestic product (GDP) increased at an annual rate of 2.3 percent in the first quarter of 2018. This contrasts with the fourth quarter of 2017, when real GDP increased by 2.9 percent. According to the Bureau of Labor Statistics (BLS), the consumer price index (CPI) increased by 2.1 percent in 2017. This is the same as the rate of price inflation observed in 2016. The BLS also reports that the unemployment rate for April of 2018 fell to 3.9%, which is the lowest rate of unemployment since December of 2000. Use these data about the recent performance of the U.S. economy to classify each of the following statements as true or false.
a. The low unemployment rate Of early 2018 could have resulted from many discouraged workers leaving the labor force.
b. Growth of real output slowed between the last quarter of 2017 and the first quarter of 2018.
c. In early 2018, real output in the economy rose, while unemployment declined.
d. The prices of all domestic products and services rose in 2017.
Answer:
a. The low unemployment rate Of early 2018 could have resulted from many discouraged workers leaving the labor force.
FALSE, the economy was growing during 2017 and 2018, so the fall in unemployment levels is reasonable.
b. Growth of real output slowed between the last quarter of 2017 and the first quarter of 2018.
TRUE, it fell from 2.9% to 2.1%.
c. In early 2018, real output in the economy rose, while unemployment declined.
FALSE, real output fell from 2.9% to 2.1% as well as unemployment that fell to 3.9%.
d. The prices of all domestic products and services rose in 2017.
TRUE, the consumer price index increased by 2.1% during 2017.
What are three faMarquet is relocating to an area where she will be attending college. She finds a townhome with an option to rent or buy. The conditions of each are shown below.
Rent: Move-in cost of $1,350 and monthly payment of $795.
Buy: Move-in cost of $8,235 and monthly payments of $750.
Marquet plans to stay in the area for the 5 years it will take her to get a graduate degree, so she decides to buy. Choose the best evaluation of Marquet’s decision.
a.
Since the costs would be the same over the 5 year period, she will have made a good decision if the property value does not decrease.
b.
She made a fairly good decision. Buying the townhome will be cheaper over the 5 year period as long as she doesn’t have major repairs to make.
c.
She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 5 year period.
d.
There is not enough information given to determine which option is best.
Please select the best answer from the choices providedctors to consider when deciding if you are ready for home ownership?
Answer:
C. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 5 year period.
You purchased five call option contracts with a strike price of $22.50 and an option premium of $.48. You held the option until the expiration date. On the expiration date, the stock was selling for $21.70 a share. What is the total profit or loss on your option position? Group of answer choices −$45 −$120 −$135 $0 −$240
Answer:
You lose your premium $240 down the drain.
Explanation:
-$240
Total Loss= 5*(100 x -$0.48)= -$240
Good luck mate! Options are very risky.
if i asked a question and two people had to split the points. and i gave the question 60 points. how many points would each person get
Answer:
30 points
Explanation:
If the question is worth 60 points, split between 2 people, it's 30.
how has MTV networks international overcome cultural difference to create a world band
MTV networks international overcame cultural difference to create a world band by employing staffs from different cultural background and playing different genres of music.
What is culture?It should be noted that culture simply means the way of life of the people. It has to do with their lifestyles and their tradition.
Therefore, MTV networks international overcame cultural difference to create a world band by employing staffs from different cultural background and playing different genres of music.
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The financial manager interacts jointly with many different individuals and departments within the firm. Forecasting and planning, as well as coordination and control, are two of the major areas of responsibility where this interaction takes place.
A. True
B. False
Answer:
A. True
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). Examples of financial statements includes Balance sheet, cash-flow and income statement.
Managerial accounting also known as cost accounting is an accounting technique focused on identification, measurement, analyzing, interpretation, and communication of financial information to managers for better decisions making and pursuit of the organization's goals.
The financial manager interacts jointly with many different individuals and departments within the firm.
Basically, the two of the major areas of responsibility where this interaction takes place are;
I. Forecasting and planning: this refers to the strategic process of predicting future occurrences with respect to the organization and making plans to mitigate any potential failures or challenges.
II. Coordination and control: it involves the process of managing and controlling the various employees working in an organization, in order to achieve set goals and objectives successfully.
Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams from the previous problem. The initial margin requirement was 50%. (The margin account pays no interest). A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share.
A. What is the remainning margin in the account?
B. If the maintenance margin requirement is 30 percent, will Old Economy receive a margin call?
C. What is the rate of return on the investment?
Answer:
A. 38%
B. NO
C. -150%
Explanation:
A.Calculation for What is the remaining margin in the account
Remaining margin=(1,000 shares*$40 per share*50%) /[(1,000 shares*$50 per share )+ ($2 per share*1,000)]
Remaining margin=$20,000/($50,000+$2,000)
Remaining margin=$20,000/$52,000
Remaining margin=0.38*100
Remaining margin=38%
Therefore the remaining margin in the account will be 38%
B. In a situation where the maintenance margin requirement is 30 percent, Old Economy will NOT receive a margin call reason been that based on the above Calculation the margin is 38% which means that it is abovethe maintenance margin requirement of 30%.
C. Calculation for What is the rate of return on the investment
Rate of return=[(1,000 shares*$40 per share)-(1,000 shares*$50 per share )] -(1,000 shares*$40 per share*50%) ÷(1,000 shares*$40 per share*50%)
Rate of return=($40,000-$50,000) -$20,000 ÷ $20,000
Rate of return = (-$10,000 -$20,000)/$20,000
Rate of return =-$30,000/$20,000
Rate of return = -1.5*100
Rate of return = -150%
Therefore rate of return on the investment will be -150%
A loan of $12,000 is to be repaid within one year with level monthly payments, due at the beginning of each month. The 12 payments equal $1,000 each. A finance charge of $632 is also due with the first payment. Which of the following is closest to the effective annual interest rate on the loan?
a. 12.7%
b. 12.9%
c.13.1%
d. 13.3%
e. 13.5%
Solution :
It is given : loan amount = $12,000
Time to repay = 12 months
Finance charge = $ 632
AT the interest rate, outflow = inflow
The present value of the loan amounts = loan amount
[tex]$1000+632+[1000 \times (PVAF (r ,11))]=12000$[/tex]
[tex]$1000 \times PVAF(r,11)=12000-1632$[/tex]
[tex]$PVAF(r,11)=\frac{10368}{1000}$[/tex]
[tex]$PVAF(r,11)=10.368$[/tex]
Now using the annuity table we get
PVAF(1%, 11)=10.9676
This is equal to 10.368 (approximately)
∴ [tex]$r=1$[/tex] % per month of compounded monthly
So the annual interest rate is :
[tex]$=[(1+0.01)^{12}]-1$[/tex]
[tex]$r=[(1.01)^{12}]-1$[/tex]
[tex]$r = 12.68$[/tex] %
= 12.70 %
Hence the correct option is (a).
[tex]\text{It is given : loan amount} = $12,000\\\text{Time to repay} = 12 months\text{Finance charge} = $ 632\\\text{At the interest rate, outflow = inflow}\\\text{The present value of the loan amounts = loan amount}[/tex]
[tex]1000 + 632 + [ (P.V (r.11))] = 12,000\\\\1000 \text { x } P.V (r,11) = 12,000 - 1,632\\\\P.V (r.11) = \frac{10,368}{1000}\\\\P.V (r,11) = 10.368[/tex]
[tex]\text{Now using the annuity table we get} \\P.V (0.01, 11) =10.9676\\\text{This is equal to 10.368 (approximately)}[/tex]
[tex]r = 0.01 \text{ per month}\\\text{ Annual Interest rate}:\\r= [(1+0.01}^{12}] - 1\\r= [(1.01}^{12}] - 1\\r= 12.68\\[/tex]
Therefore, the closest option among the following choices is an option (a), i.e., 12.7%
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To make the lightest bikes possible, Trek had to locate suppliers that could produce the highest quality aluminum on Earth. Prior to the purchase, Trek purchasing agents updated the specifications for the aluminum purchase and sent the specifications to various aluminum suppliers. This purchase for aluminum is a(n) ________ for Trek.
Answer:
Soft product
Explanation:
The purchase of aluminum is modified rebuy for trek.
Modified rebuy:Since Trek has done the changes to the specifications of the Aluminum prior ordering from the supplier, so it is a modified rebuy. In the case when Trek purchase Aluminum for the first time from the supplier, it would be considered a new buy or an initial buy. Also, the order is not repeated without any changes, it is not a straight rebuy.
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Home Team Corporation recently hired Steve Willits as its bookkeeper. Mr. Willits is somewhat inexperienced and has made numerous errors recording daily business transactions. Indicate the effects of the errors described as follows on each of the financial statement elements shown in the column headings. Use the following symbols: O for overstated, U for understated, and NE for no effect.
Error Net Income Total Assets Total Owners'
Liabilties Equity
Recorded the issuance of capital stock by
debiting Capital Stock and crediting Cash.
Recorded the declaration and payment of
a dividend by debiting Interest Expense
and crediting Cash.
Recorded the payment of an account
payable by debiting Cash and crediting
Service Revenue.
Recorded the collection of an outstanding
account receivable by debiting Cash and
crediting Accounts Payable.
Recorded client billings on account by
debiting Service Revenue and crediting Cash.
Recorded the cash purchase of land by
debiting Cash and crediting Land.
Recorded the purchase of a building on account
by debiting Rent Expense and crediting Capital Stock.
Answer:
Recorded the issuance of capital stock by debiting Capital Stock and crediting Cash.
Net Income Total Assets Total Liabilities Owners' Equity
NE U NE U
Recorded the declaration and payment of a dividend by debiting Interest Expense and crediting Cash.
Net Income Total Assets Total Liabilities Owners' Equity
U NE NE U
Recorded the payment of an account payable by debiting Cash and crediting Service Revenue.
Net Income Total Assets Total Liabilities Owners' Equity
O O O O
Recorded the collection of an outstanding account receivable by debiting Cash and crediting Accounts Payable.
Net Income Total Assets Total Liabilities Owners' Equity
NE O O NE
Recorded client billings on account by debiting Service Revenue and crediting Cash.
Net Income Total Assets Total Liabilities Owners' Equity
U U NE U
Recorded the cash purchase of land by debiting Cash and crediting Land.
Net Income Total Assets Total Liabilities Owners' Equity
NE NE NE NE
Recorded the purchase of a building on account by debiting Rent Expense and crediting Capital Stock.
Net Income Total Assets Total Liabilities Owners' Equity
U U U NE
Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $21 million in iTunes gift cards in November, and customers redeem $14 million of the gift cards in December.
Required:
a. Record the advance collection of $21 million for iTunes gift cards in November.
b. Record the revenue earned when $14 million in gift cards is redeemed in December.
c. What is the ending balance in the Deferred Revenue account?
Answer:
A. Nov 30 Dr Cash 21,000,000
Cr Deferred Revenue 21,000,000
B. Dec 31 Dr Deferred Revenue 14,000,000
Cr Sales Revenue 14,000,000
C. $7,000,000
Explanation:
a. Preparation of the journal entry to Record the advance collection of $21 million for iTunes gift cards in November
Nov 30 Dr Cash 21,000,000
Cr Deferred Revenue 21,000,000
(Being To record the cash received for gift cards)
b. Preparation of the journal entry to Record the revenue earned when $14 million in gift cards is redeemed in December
Dec 31 Dr Deferred Revenue 14,000,000
Cr Sales Revenue 14,000,000
(Being To record the redemption of gift cards)
c. Calculation for the ending balance in the Deferred Revenue account
Ending Balance in Deferred revenue = $21,000,000 - $14,000,000
Ending Balance in Deferred revenue = $7,000,000
Therefore ending balance in deferred revenue account will be $7,000,000.
Analyzing the Effects of Transactions Using T-Accounts
Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year:
a. Received $40,000 cash from the company's founders in exchange for common stock
b. Purchased land for $12,000, signing a two-year note (ignore interest).
c. Bought two used delivery trucks at the start of the year at a cost of $10,000 each; paid $2,000 cash and signed a note due in three years for $18,000 (ignore interest),
d. Paid $2.000 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
e. Stockholder Jonah Lee paid $300,000 cash for a house for his personal use.
Required:
Analyze each item for its effects on the accounting equation of LDS for the year ended December 31.
Prepare a classified balance sheet for LDC at the end of 2010
Answer:
Laser Delivery Services, Inc. (LDS)
Analyzing the Effects of Transactions Using T-Accounts:
Cash
Date Accounts Titles Debit Credit
a. Common Stock $40,000
c. Delivery Truck $2,000
d. Delivery Truck 2,000
Balance 36,000
Common Stock
Date Accounts Titles Debit Credit
a. Cash $40,000
Land
Date Accounts Titles Debit Credit
b. Note Payable $12,000
Note Payable
Date Accounts Titles Debit Credit
b. Land $12,000
c. Delivery Truck 18,000
Balance $30,000
Delivery Trucks
Date Accounts Titles Debit Credit
c. Cash $2,000
Note Payable 18,000
d. Cash 2,000
Balance $22,000
2. Classified Balance Sheet as of December 31, 2010:
Assets:
Cash $36,000
Land 12,000
Delivery trucks 22,000 $34,000
Total assets $70,000
Liabilities + Equity:
Notes Payable 30,000
Common Stock $40,000
Total liabilities + Equity $70,000
Explanation:
a) Trial Balance
Cash $36,000
Land 12,000
Delivery trucks 22,000
Common Stock $40,000
Notes Payable 30,000
Totals $70,000 $70,000
b) Business transactions affect the accounting equation (assets = liabilities + equity) by increasing or decreasing the two sides equally. This means that the accounting equation is always in balance before and after every transaction.
Markson Company had the following results of operations for the past year:
Sales (8,000 units at $20.80) $166,400
Variable manufacturing costs $89,200
Fixed manufacturing costs 15,800
Variable administrative expenses 15,200
Fixed selling and administrative expenses 20,800 (141,000 )
Operating income $25,400
A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $15.20 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,680 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:_______
Solution :
The cost of variable manufacturing is given as = $ 89,200
Number of units = 8000 units.
Therefore, the cost of variable manufacturing per unit [tex]$=\frac{89,200}{8000}$[/tex]
= $ 11.15
Therefore for 2000 units = 2000 x 11.15
= $ 22,300
Amounts in $
Sales 30,400 (2000 x 15.20)
Less : variable manufacturing cost 22,300
Less : fixed manufacturing cost 1,680
Less : variable selling and administrative cost 3800
Profit 2620
Therefore the profit is increased by $ 2620.
Suppose that Paolo, an economist from a research institute in Texas, and Sharon, an economist from a school of industrial relations, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Sharon: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards. Paolo: I think a switch from the income tax to a consumption tax would bring growth in living standards. Sharon: You really think households would change their saving behavior enough in response to this to make a difference? Because I don't.
The disagreement between these economists is most likely due to _____
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
(i) Immigrants receive more in government benefits than they contribute in taxes.
(ii) Having a single income tax rate would improve economic performance.
(iii) Rent ceilings reduce the quantity and quality of available housing.
Answer:
1. The disagreement between these economists is most likely due to _____
differences in scientific judgements
2. Despite their differences, the proposition that two economists chosen at random are most likely to agree is:
(iii) Rent ceilings reduce the quantity and quality of available housing.
Explanation:
Economists disagree with one another due to differences in scientific judgments, differences in value judgments, or differences in perception over reality. But the most prominent differences arise with the first and the second options. It is known that economists tend to disagree on all economic indices but agree on non-economic factors. The disagreements arise out of three main factors: inadequate methods for economic evaluations, lack of empirical test, and individual values. Methods used by economists to evaluate the truth are not always good enough to reveal the complete truth.
Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15 locations concentrated primarily in heavily populated areas. They sell thousands of products made by hundreds of different manufacturers. Buckshot sells everything from phones, video cameras, and video game consoles to large items like televisions.
Sony is one of their larger suppliers. They offer products in nearly every category Buckshot offers to its customers. In fact, Sony sells multiple cell phone models through Buckshot. One such model is the Q9900. One of Buckshot's San Francisco stores is forecasted to sell about 7800 units of the Q9900 in the coming year. This forecasted demand is about average in terms of Buckshot's 15 other California locations. Presently they order 900 units of the Q9900 every 6 weeks. Each store fills weekly orders through its Sony Distributor for items like TV's, DVD Players, cameras, and of course, cell phones, in addition to many other items. Orders for cell phones must be made in increments of 100 units. The distributor takes only one order per week, but Buckshot is not obligated to order every item every week. That order is then shipped 2 days later to that individual Buckshot Electronics location by truck. Buckshot's Central Procurement is looking to save money by investigating order sizes and subsequent order frequency. You are being asked to create a recommendation for order size and time between orders for the Q9900 based on the numbers for this San Francisco location. Answer the questions that follow in order to create a detailed report.
Below are some the key figures important in your analysis:
Q9900 Wholesale Price $325.00
Q9900 Retail Price $399.00
Annual Per Unit Holding Costs are estimated at 35% of the wholesale cost of the Q9900.
Required:
a. What is the per unit cost for each item?
b. What is the annual cost to purchase the items?
Answer:
Explanation:
Given that:
annual demand = 7800 units
wholesale price = $325
retail price = 399
The per-unit cost for each item = $399 per unit
The annual cost to purchase the items = Annual demand × wholesale price
= annual demand × price of the wholesales
= 7800 × 325
= $2535000
Theory X, Theory Y and Theory Z underly the following sequence of schools: _________
a. Scientific Management, Covenantal, Human Relations
b. Human Relations, Covenantal, Scientific Management,
c. Covenantal, Human Relations, Scientific Management,
d. Scientific Management, Human Relations, Covenantal
Answer:
d. Scientific Management, Human Relations, Covenantal
Explanation:
Theory X treats employees as people who only work because they are paid, and that is there only motivation.
Theory Y starts to explore other employee motivations and how they influence workers' performance.
Theory Z is the newest of these theories and it focuses on empowering employees, making them feel important, etc.
Many fast-food restaurants compete on lean business concepts. Match each of the following activities at a fast-food restaurant with the lean business concept it strives to achieve. Some activities might relate to more than one lean business concept.
a. Just-in-time (JIT)
b. Continuous improvement (CI)
c. Total quality management (TQM)
1. Courteous employees
2. Food produced to order
3. Clean tables and floors
4. Orders filled within three minutes
5. Standardized food making processes
6. New product development
7. Customer satisfaction surveys
8. Standardized menus from location to location
9. Drive-through windows
10. Continually changing menus
Answer:
1. C
2. A
3. C
4. A
5. C
6. B
7. B and C
8. C
9. A and B
10. B
Explanation:
A lean business is a business concept used by organizations to eliminate waste and maximize value for growth and development. The lean business concept include the following;
A total quality management (TQM) is a management framework that is focused on achieving long-term success through the satisfaction of your customers by the efforts of all the member of staff in an organization.Just-in-time (JIT) is a management framework that is focused on cutting manufacturing costs and increase efficiency between suppliers and consumers through the use of a proper inventory system.A continuous improvement (CI) is a management technique that is focused on improving manufacturing processes, products and services through the elimination of redundancy and time-wasting activities in an organization.1. Total quality management (TQM): Courteous employees
2. Just-in-time (JIT): Food produced to order
3. Total quality management (TQM): Clean tables and floors
4. Just-in-time (JIT): Orders filled within three minutes
5. Total quality management (TQM): Standardized food making processes
6. Continuous improvement (CI): New product development
7. Total quality management (TQM) and Continuous improvement (CI): Customer satisfaction surveys
8. Total quality management (TQM): Standardized menus from location to location.
9. Continuous improvement (CI) and Just-in-time (JIT): Drive-through windows.
10. Continuous improvement (CI): Continually changing menus.
Merchandise inventory includes:__________
a. costs to purchase
b. costs to sell
c. shipping costs
d. costs to prepare for sale
e. cost of goods sold
Answer:
a. costs to purchase
c. shipping costs
d. costs to prepare for sale
Explanation:
Merchandise inventory is a commodity offered for sale. It is the cost of goods that is readily available at hand which is ready for sale From the options; the Merchandise inventory includes: costs to purchase, shipping costs and costs to prepare for sale.
The remaining options are addressed in the income statement.
C. In JuneNikea Inc. received the $10,000 payment from XYZWhich of Nikea's accounts are affected by this transaction and what is its effect on the accounting equation?
Answer:
The $10,000 collected by Nikea represent the collections of an accounts receivable, the journal entry should be:
Dr Cash 10,000
Cr Accounts receivable 10,000
In this case, an asset (accounts receivable) will decrease while another asset (cash) will increase). The accounting equation will not change since one assets replaces the other.
Explanation:
Consider the following events: Scientists reveal that eating oranges decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that makes orange trees produce more oranges. What are the net effects on the equilibrium price and quantity of oranges?
a. An increase in the price of oranges, the change in equilibrium quantity is uncertain.
b. A decrease in the price of oranges, the change in equilibrium quantity is uncertain.
c. An increase in the equilibrium quantity of oranges, the change in equilibrium price is uncertain.
d. A decrease in the equilibrium quantity of oranges, the change in equilibrium price is uncertain.
Answer:
The net effects on the equilibrium price and quantity of oranges are:
c. An increase in the equilibrium quantity of oranges, the change in equilibrium price is uncertain.
Explanation:
The promotion of the eating of oranges by Scientists will increase the demand for oranges. This increased demand will shift the equilibrium quantity of oranges demanded by consumers. With the use of the new fertilizer by farmers to increase the production of oranges, the equilibrium quantity of supply will shift with demand. However, it is uncertain, from the data provided, if the equilibrium price will upward or downward. This will depend on other market forces, e.g. the market competitiveness.
