Answer:
150,000
Explanation:
Greg, a landscaper, is planning on opening his own landscaping company. He currently earns $50,000 per year working for his uncle but he will need to quit that job. He hires one employee at an annual wage of $15,000. He needs to pay rent of $8,000 per year. He plans to use $12,000 in savings to pay for the equipment he needs, the market value of the equipment at the end of the year is $10,000. Also he needs to buy $3,000 of goods and services from other firms. The current interest rate on savings is 7 percent. Greg predicts that the revenue from the new landscaping company is $80,000 a year. What is total opportunity cost incurred by Greg in running his own business
Answer: $52,840
Explanation:
The opportunity cost are the benefits he will give up to pursue his current venture of landscaping.
= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year
= 50,000 + (7% * 12,000) + (12,000 - 10,000)
= $52,840
The total opportunity cost incurred by Greg in running his own business is $52,840.
It should be noted that opportunity cost simply means the real cost of a foregone alternative. Opportunity cost arises as a result of scarcity of resources.
Therefore, the total opportunity cost incurred by Greg in running his own business will be:
= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year
= 50,000 + (7% × 12,000) + (12,000 - 10,000)
= 50000 + 840 + 2000
= $52,840
In conclusion, the opportunity cost is $52840.
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Which account option may require larger money contributions than usual but offers a higher interest rate than traditional savings?
Certificate of deposit
Checking
Money market
Saning
Answer:
Money Market
Explanation:
I just did this
If we add successive laborers to work a given amount of land on a wheat farm, eventually:____.
a. the increases in wheat harvested will get larger and larger.
b. average total cost will fall to zero.
c. the increases in wheat harvested will rise at a constant rate.
d. the increases in wheat harvested will get smaller and smaller.
Answer:
d. the increases in wheat harvested will get smaller and smaller.
Explanation:
A marginal rate of technical substitution (MRTS) can be defined as an economic principle which is typically used to represent the rate at which a factor such as capital must decrease so that the same level or quantity of production is maintained when another factor such as labor is changed (increased).
An isoquant is the slope of a marginal rate of technical substitution (MRTS) which connects the two input factors provided that the level of output or production is the same.
Also, the diminishing marginal rate of technical substitution refers to the decline (fall) in marginal rate of technical substitution (MRTS) along an isoquant that produces the same quantity (level) of output.
When an isoquant has a diminishing marginal rate of technical substitution, the corresponding isoquants are convex to the origin. Thus, the marginal rate of technical substitution (MRTS) would continue to diminish as more of a factor such as capital is used.
If we add successive laborers to work a given amount of land on a wheat farm, eventually the increases in wheat harvested will get smaller and smaller.
Answer:
d. the increases in wheat harvested will get smaller and smaller.
Explanation:
If we add successive laborers to work a given amount of land on a wheat farm, eventually: the increases in wheat harvested will get smaller and smaller.
If Serena runs her own business and is responsible for everything, she is a/an
Answer:An entrepreneur
Explanation:
An entrepreneur is an individual who starts and runs a business with limited resources and planning, and is responsible for all the risks and rewards of her business venture.
Hardy Company must maintain a compensating balance of $50,000 in its checking account as one of the conditions of its short-term 6% bank loan of $500,000. Hardy's checking account earns 2% interest. Ordinarily, Hardy would maintain a $20,000 balance in the account for transaction purposes. What is the loan's approximate effective interest rate
Answer:
The loan's approximate effective interest rate is 6.17%.
Explanation:
Interest expense = Short term bank loan * Short term bank loan interest rate = $500,000 * 6% = $30,000
Interest income = Balance in the account checking account * Interest rate on checking account balance = $20,000 * 2% = $400
Net interest expense = Interest expense - Interest income = $30,000 - $400 = $29,600
Available amount = Short term bank loan interest rate - Balance in the account checking account = $500,000 - $20,000 = $480,000
Effective interest rate = Net interest expense / Available amount = $29,600 / $480,000 = 0.0617, or 6.17%
Therefore, the loan's approximate effective interest rate is 6.17%.
Suggest strategies to succeed in outsourcing its HR services
Answer:
The answer is below.
Explanation:
The strategies of a company to succeed in outsourcing its HR services
1. Internal Analysis and Baselining: this involves the cost and value analysis of using internal HR vs Outsourcing HR
2. Understanding Cost vs. Value of HR: knowing what the cost and value of outsourcing entails can go a long way in determining whether it offers the value the company wants
3. Identifying Core Competencies: realizing the competencies of outsourcing HR particularly in the area of competitive advantage of the company.
4. Aligning Technology to Support Operational Objectives: utilization of outsourcing HR technology and operational support ensure the company doesn't cure additional coast
5. Agreeing on Expectations with HR Outsourcer: knowing what to expect and agreed on the outcome of the outsourcing process is one of the key strategies.
6. Addressing and Enforcing Performance Metrics: Also, the expected performance and what is needed to be achieved should be discussed and ensured it is ultimately accomplished.
A newspaper vendor is trying to determine how many daily papers to order. The cost to the vendor of a single paper is $0.75. The vendor sells each paper for $1.85. The value of the paper will drop to 0 the next day. If the daily demand for papers is normally distributed with a mean of 500 papers and a standard deviation of 100 papers. The newspaper vendor should order how many papers?
a. 500
b. 525
c. 559
d. 795
e. 475
Answer:c
Explanation:cuz it c
Jane's Donut Co. borrowed $198,000 on January 1, 2021, and signed a two-year note bearing interest at 11%. Interest is payable in full at maturity on January 1, 2023. In connection with this note, Jane's should report interest expense at December 31, 2021, in the amount of: Multiple Choice
Answer:
$21,780
Explanation:
Calculation to determine what Jane's should report interest expense at December 31, 2021, in the amount of:
Interest expense at December 31, 2021=$198,000 x 11% x 12/12
Interest expense at December 31, 2021= $21,780
Therefore Jane's should report interest expense at December 31, 2021, in the amount of: $21,780
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Answer:
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Road Master Shocks has 15,000 units of a defective product on hand that cost $80,000 to manufacture. The company can either sell this product as scrap for $6 per unit or it can sell the product for $9 per unit by reworking the units and correcting the defects at a cost of $40,000. Prepare a schedule to show the effect of selling the defective units as scrap or rework.
Answer:
If the units are reworked, net income will increase by $5,000.
Explanation:
Giving the following information:
Number of units= 15,000
Sell as-is:
Selling price= $6 per unit
Rework:
Selling price= $9
Total cost= $40,000
The original production costs ($80,00) should not be taken into account because they remain constant for the two options.
Now, we will determine the effect on the income of both choices:
Sell as-is:
Effect on income= 6*15,000= $90,000 increase
Re-work:
Revenue= 15,000*9= 135,000
Total cost= (40,000)
Effect on income0 $95,000 increase
If the units are reworked, net income will increase by $5,000.
Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000. What is Nat's recognized gain and his basis for the lot
Answer:
Recognized gain = $15,000
Basis for lot = $90,000
Explanation:
According to the scenario, computation of the given data are as follows,
Purchase amount = $75,000
Adjusted basis = $45,000
Normal selling price = $90,000
So, Recognized gain = Normal selling price - Purchase amount
By putting the value, we get
Recognized gain = $90,000 - $75,000
= $15,000
Now, Basis for lot = Purchase amount + Recognized gain
= $75,000 + $15,000
= $90,000
Suppose you borrow $8,000 of principal that must be repaid at the end of two years, along with interest of 4 percent a year. If the annual inflation rate turns out to be 6 percent,
Instructions: Enter your responses rounded to the nearest whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
a. What is the real rate of interest on the loan?
b. What is the real value of the principal repayment?
Hint: Future value = Present value × (1 + Growth in prices)t, where t is the number of years evaluated, e.g., The real value of loan repayment = Amount of loan × (1 + Real interest rate)t
c. Who loses, the debtor or the creditor?
I do not know, i just need points :/
The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 a share. The company has just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split
Answer:
Total shares outstanding = 208,333 units
Explanation:
A stock split occurs where a company increases the the total unit of its existing shares by dividing them . It does this to achieve a cheaper nominal price of per unit of share without increasing the total nominal value
Total shares outstanding = 5/3× 125,000= 208,333.
Total shares outstanding = 208,333 units
1. You are evaluating the purchase of HypeToys, Inc. common stock that just paid an annual dividend of $1.80. You expect the dividend to grow at a rate of 12% per year, indefinitely. You estimate that a required rate of return 17.5% will be adequate compensation for this investment. Assuming that your analysis is correct, and the company pays dividends once a year, what is the most that you’re willing to pay for the common stock if you were to purchase it today? Round to the nearest $.01.
Answer:
$36.65
Explanation:
D1 = D*(1+g)
D1 = 1.8*(1+0.12)
D1 = 1.8(1.12)
D1 = $2.016
Price of stock P = D1 / (re - g)
Price of stock P = $2.016 / (0.175 - 0.12)
Price of stock P = $2.016 / 0.055
Price of stock P = $36.654545
Price of stock P = $36.65
So, $36.65 is the most that i will be willing to pay for the common stock if i am to purchase it today.
g at the close of its first year of operations, december 31, 2020, delaware company reported net realizable value of accounts receivable of $1,620,000. during 2020,the company had charges to bad debt expense of $270,000 and wrote off, as uncollectible, accounts receivable of $120,000. what should the company report on its balance sheet at december 31, 2020, as accounts receivable before the allowance for doubtful accounts
Answer:
$1,770,000
Explanation:
Given the above information, the computation of accounts receivable before the allowance is shown below;
= Beginning account receivable balance + Bad debt expense - Uncollectible accounts receivables
= $1,620,000 + $270,000 - $120,000
= $1,770,000
The bad debt is an expense hence will be added whereas the account receivable which is yet to be collected should be deducted the computation part.
Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ¥115 = $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is ¥135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in
Answer: arbitrage
Explanation:
Based on the information given in the question, we can infer that Rinaldo is engaging in arbitrage.
This is an example of currency arbitrage as it involves Rinaldo buying and selling the currency pairs that's gotten from different brokers in order to be able to take advantage of mispriced rates.
The options for closing inventory is
A. 10.50
B. 10
C. 10.25
Total cost options are
A. 8,050
B. 8,000
C. 8,200
Answer:
i think A
Explanation:
I hope this helps:)))
Blue Corporation purchased a truck at the beginning of 2020 for $61,000. The truck is estimated to have a salvage value of $2,440 and a useful life of 195,200 miles. It was driven 28,060 miles in 2020 and 37,820 miles in 2021. Compute depreciation expense using the units-of-production method for 2020 and 2021.
Depreciation expense for 2020
Depreciation expense for 2021
Answer:
Depreciation expense for 2020 = $8,418
Depreciation expense for 2021 = $11,346
Explanation:
Depreciation expense using the units-of-production method is determined as follows :
Depreciation expense = Depreciation rate x annual usage
where,
Depreciation rate = (Cost - Salvage Value) ÷ Estimated usage
= ($61,000 - $2,440) ÷ 195,200 miles
= $0.30 per mile
thus,
Depreciation expense for 2020
Depreciation expense = $0.30 per mile x 28,060 miles
= $8,418
Depreciation expense for 2021
Depreciation expense = $0.30 per mile x 37,820 miles
= $11,346
A hospitality company is evaluating building a new hotel in Bloomington (capital project) that management forecasts will generate $45,000 each year over its six (6) year life. If the required rate of return given the project's identified risks is 12% (percent), and the project's up front costs are estimated at $165,000, should management go forward with the project?
a. Management should approve the new hotel since the project's NPV is positive.
b. Management should reject the new hotel project as the project's NPV is negative.
c. Unable to determine given information.
Answer:
A
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-165,000
Cash flow in year 1 - 6 = $45,000
I = 12%
NPV = $20,013.33
the project should be approved because NPV is positive
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Suppose that an increase in the price of melons from $0.50 to $1.50 per pound increases the quantity of melons that melon farmers produce from 2 million pounds to 4 million pounds. The price elasticity of supply in this case indicates that supply is Group of answer choices
Answer: elastic
Explanation:
The price elasticity of supply will be:
The percentage change in price will be:
= (1.50 - 0.50)/0.50 x 100
= 1.00/0.50 × 100
= 200
The percentage change in quantity will be:
= (4 -2)/2 x 100
= 2/2 × 100
= 100
Elasticity = % change in quantity/% Change in Price = 200/100 = 2
Since elasticity = 2, this indicates supply is elastic as it's greater than 1.
examples of veriable costs
Answer:
Exmples are : labor wage, cost of inputs
Explanation:
Variable cost are the costs that are changing with changing in inputs or production.
Cameron, Inc. held 1,000 shares of its own $10 par value common stock purchased for $20 per share. In March, Cameron sold 10 shares at $20 per share. The journal entry to record the sale of treasury stock would include a (debit/credit) ________ to Treasury Stock in the amount of ________.
Answer:
Credit, $200
Explanation:
The journal entry would be:
Date Account Debit Credit
Cash $200
(10 shares*$20)
Treasury stock $200
(To record the sale of treasury stock)
Consumer surplus is Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a positive in the case of a monopolist practicing perfect price discrimination. b zero for a single-price monopolist. c equal to the price minus the marginal cost. d less in the case of a single-price monopoly than in the case of a perfectly competitive industry.
Answer:
d less in the case of a single-price monopoly than in the case of a perfectly competitive industry.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Generally, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Generally, consumer surplus is less in the case of a single-price monopoly than in the case of a perfectly competitive industry.
Rubin Enterprises had the following sales-related transactions on a recent day:
a. Billed customer $27,500 on account for services already provided.
b. Collected $5,875 in cash for services to be provided in the future.
c. The customer complained about aspects of the services provided in Transaction a. To maintain a good relationship with this customer, Rubin granted an allowance of $1,500 off the list price. The customer had not yet paid for the services.
d. Rubin provided the services for the customer in Transaction b. Additionally, Rubin granted an allowance of $350 because the services were provided after the promised date. Because the customer had already paid, Rubin paid the $350 allowance in cash.
Required:
Prepare the necessary journal entry (or entries) for each of these transactions.
Answer:
Transaction a
Debit : Account Receivable $27,500
Credit : Sales Revenue $27,500
Transaction b
Debit : Cash $5,875
Credit : Deferred Revenue $5,875
Transaction c
Debit : Sales Revenue $1,500
Credit : Account Receivable $1,500
Transaction d
Debit : Deferred Revenue $5,875
Credit : Sales Revenue $5,525
Credit : Discount received $350
Explanation:
The journals have been prepared above.
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $112,000. The equipment will have an initial cost of $224,000 and have a 3 year life. If the salvage value of the equipment is estimated to be $87,000, what is the payback period
Answer:
2 years
Explanation:
Payback period is the length of time it takes for the future cash flows to equal the initial investment.
$224,000 = $112,000 + $112,000
therefore,
It takes 2 years for the cashflows to equal initial investment
To compare statement of cash flows reporting under the direct and indirect methods, indicate whether each item is used in the direct method or the indirect method.
a. Accounts payable
b. Payments to employees
c. Cash collections from customers
d. Accounts receivable
e. Payments to suppliers
Answer:
Indirect Method
a. Accounts payable increase or decrease
d. Accounts receivable increase or decrease.
The above are both used in the Indirect method and fall under Cashflow from Operating activities.
Direct Method
b. Payments to employees
c. Cash collections from customers
e. Payments to suppliers
The direct method involves the above and they all fall under Cash generated from operations.
Price rises from $10 to $11, and the quantity demanded falls from 100 units to 95 units. What is the price elasticity of demand using the midpoint formula between these two prices in absolute terms (round to 2 decimal places)
Answer:
0.54
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 100 - 95 = 5
average of both demands = (100 + 95) / 2 = 97.5
Midpoint change in quantity demanded = 5 / 97.5 = 0.051282
midpoint change in price = change in price / average of both price
change in price = $11 - $10 = 1
average of both price = ($11 + $10) / 2 = 10.5
midpoint change in price = 1 / 10.5 = 0.095238
Price elasticity of demand = 0.051282 / 0.095238 = 0.54
Assume that the quantity of X is measured on the horizontal axis, and the quantity of Y is measured on the vertical axis. Assume that the price of X is $60, the price of Y is $30 and Rafe has an weekly income of $180. Which of the following is true? He can afford 6 units of good Y. His budget line has a slope of 1/3. He can afford 6 units of good X. His budget line has a slope of −1/3.
Answer:
True : He can afford 6 units of good Y'
Explanation:
Budget Line is a combination of two goods, consumer can afford with entire given money income & prices.
Equation : p1 x1 +p2 x2 = m. Here p1 & p2 are prices of two goods, x1 & x2 are quantities of two goods, m is money income.
Intercept of budget line is max quantity of a good consumer can buy spending only on either good. Formula = m / p1 & m / p2
As : m = 180 , p1 (px) = 60 , p2 (py) = 30 . Intercepts (x & y) = 180 / 60 = 3 & 180 / 30 = 6 respectively.
So, 'He can afford 6 units of good Y' is True. 'He can afford 6 units of good X' is False.
Slope shows the trade off of goods, given money income & price. Formula = = p1 / p2 = px / py = 60 / 30 = (-) 2. 'His budget line slope = 1/3 or -1/3', both are False
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The payoff matrix that follows shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $10 million and Pictech will earn a profit of $3 million. (Hint: Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.) Pictech High Price Low Price Flashfone High Price 8, 8 3, 10 Low Price 10, 3 5, 5 If Flashfone prices high, Pictech will make more profit if it chooses alow price, and if Flashfone prices low, Pictech will make more profit if it chooses ahigh price. If Pictech prices high, Flashfone will make more profit if it chooses alow price, and if Pictech prices low, Flashfone will make more profit if it chooses ahigh price. Considering all of the information given, pricing highis not a dominant strategy for both Flashfone and Pictech. What is the Nash equilibrium of this game
Answer:
Flashfone and Pictech
The Nash equilibrium is achieved when Pictech and Flashfone price their smartphones high without the other party changing their strategy.
Explanation:
a) Data and Calculations:
Pictech
High Low
High 8 8 3 10
Flashfone
Low 10 3 5 5
b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively. This payoff level does not put any of the two firms at a disadvantage.
Received $950 cash for services provided to a customer during July. Issued common stock for $3,000 cash. Received $800 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $425. Borrowed $6,500 from the bank by signing a promissory note. Received $1,300 cash from a customer for services to be performed next year. What was the amount of revenue for July
Answer:
$1,375
Explanation:
Calculation to determine What was the amount of revenue for July
Using this formula
July Revenue= July Cash Received for services provided+ Services provided to customer on credit
Let plug in the formula
July Revenue= $950+$425
July Revenue=$1,375
Therefore the amount of revenue for July is $1,375