A product sells for $20 per unit and has a contribution margin ratio of 40 percent. Fixed expenses total $240,000 annually. How many units of the product must be sold to yield a profit of $60,000?
a. 65,000 units
b. 30,000 units
c. 37,500 units
d. 40,000 units
Required Sales In Units
To determine the Required Sales In Units, the formula for profit and contribution margin are useful.
Contribution margin = Total Sales * Contribution Margin Ratio
Profit = Contribution Margin - Total Fixed Costs

Answers

Answer 1

(c) 37,500 units is the correct response when A product sells for $20 per unit and has a contribution margin ratio of 40 percent. Fixed expenses total $240,000 annually.

How many units of the product must be sold to yield a profit of $60,000?

The contribution margin per unit can be calculated using the contribution margin ratio, which is the contribution margin expressed as a percentage of sales revenue:

Sales price per unit divided by the contribution margin ratio, which is $20 divided by 0.40, equals $8.

Given that our annual fixed costs total $240,000, we want to make a profit of $60,000. Thus, the overall contribution margin needed to pay for fixed costs and produce the target profit is:

Overall contribution margin equals desired profit plus fixed costs, or $240,000 plus $60,000, or $300,000.

We can divide the entire contribution margin by the contribution margin per unit to determine the necessary sales in units:

Total contribution margin / Contribution margin per unit = $300,000 / $8 = 37,500 units.

Total contribution margin / Contribution margin per unit = $300,000 / $8 = 37,500 units.

Thus, (c) 37,500 units is the correct response.

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Related Questions

Must an employer offer paid pregnancy leave for employees under Title VII? How do the Pregnancy Discrimination Act provisions of Title VII affect employment benefits?

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Yes, under Title VII of the Civil Rights Act, employers must offer pregnant employees the same job protection and other benefits that would be extended to other temporarily disabled employees. Specifically, the Pregnancy Discrimination Act (PDA) provisions of Title VII require employers to offer pregnant employees the same benefits as those who are similarly situated in their temporary disability, such as paid leave, modified work schedules, and health insurance coverage.

What Is The Pregnancy Discrimination Act?

The Pregnancy Discrimination Act (PDA) provisions of Title VII protect women from being discriminated against in employment on the grounds of pregnancy, childbirth, or related medical circumstances. The Pregnancy Discrimination Act (PDA) provisions of Title VII affect employment benefits by requiring employers to provide pregnant employees with the same benefits as other employees who are unable to work due to injury or illness. The PDA prohibits employers from discriminating against employees based on pregnancy, childbirth, or related medical conditions. Additionally, under Title VII of the Civil Rights Act, employers must offer pregnant employees the same job protection and other benefits that would be extended to other temporarily disabled employees.

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fill in the blank. don spends his money on food and operas. the icc depicted below shows how dons consumption of food and operas change as his income increases. (a.)___ given the shape of the icc below, don must view food as a(n)____.

Answers

Don spends his money on food and operas. the icc depicted below shows how dons consumption of food and operas change as his income increases. Given the shape of the ICC, Don must view food as a normal good.

What is the ICC?

The ICC (indifference curve map) depicts the consumer's choice with two goods, say x and y. It is a series of indifference curves showing various quantities of the two products that the consumer is willing to consume, and every curve corresponds to a specific amount of total utility.

When the consumer's income changes, the indifference curve map changes as well. Therefore, if the slope of the ICC is downward, a good is referred to as a regular good.

A good whose slope is upward, on the other hand, is referred to as an inferior good. As seen in the graph, the slope is downward, which means that as Don's income increases, the amount of food and opera he can buy also increases. So, given the shape of the ICC below, Don must view food as a normal good.

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question content area in the accounting cycle, the last step is a.preparing a post-closing trial balance b.journalizing and posting the closing entries c.journalizing and posting the adjusting entries d.preparing the financial statements

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The correction option is d. The last step in the accounting cycle is preparing the financial statements.

The accounting cycle includes a series of activities that are performed to maintain a record of all transactions related to a business. It begins with the identification of the transactions and ends with the preparation of financial statements.

The following are the steps involved in the accounting cycle:

1. Recording transactions in a journal

2. Posting the journal entries to the ledger

3. Adjusting entries

4. Adjusted trial balance

5. Financial statements

6. Closing entries

7. Post-closing trial balance

The question is asking about the last step of the accounting cycle. So, we need to identify which of the options is the last step. The last step is to prepare the financial statements, which include the income statement, balance sheet, and cash flow statement. This is the final output of the accounting process and provides an overview of the financial health of the business.

Thus, the correct option is d. Preparing the financial statements.

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Select a business model that you are interested in:
- Why interested?
- Categorize the products under your business model
- How can you make your product selling successful?

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I'm interested in the subscription business model because it allows customers to pay a flat fee for a variety of services and products.

For example, a subscription business can offer a monthly fee that includes access to streaming services, monthly boxes of clothing or food, or other services.


Products that can be included under a subscription business model include streaming services, subscription boxes, meal delivery kits, memberships, software-as-a-service, and many more.


To make the product selling successful, it is important to understand the target market and provide services that meet the needs of the customers. Additionally, it is important to offer an easy-to-use and secure payment platform, provide customer support, and use promotional activities to make customers aware of the product and services.

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Reflection Paper for Strategically Managing the HRM Function -
Human Resource Management

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The strategic management of the HRM function refers to the application of HR strategies and techniques to obtain organizational aims and objectives.

Strategic management of the HRM function refers to the process of utilizing HR strategies and techniques to achieve organizational objectives. Here are some key elements of strategic HRM:

Aligning HR goals with organizational goals.Developing HR policies and procedures that are consistent with organizational culture and goals.Developing recruitment and selection strategies that align with the organization's mission and values.Developing employee retention strategies that address the needs of the organization and its employees.Providing training and development programs that enhance the skills and abilities of employees.Measuring HR performance and providing feedback to improve HR functions

To successfully implement strategic HRM, organizations must have an HR department that is capable of working collaboratively with other departments, identifying and addressing key HR issues, and continuously monitoring and improving HR policies and practices. Additionally, organizations should strive to create a culture that values and supports its employees, recognizing that they are the key to the organization's success.
Note: The question is incomplete. The complete question probably is: Discuss the strategic management of the HRM function.

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Securities firms, insurance companies, and investment companies are all examples of?

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Answer:

Securities firms, insurance companies, and investment companies are all examples of financial institutions. Financial institutions are organizations that provide financial services and products to individuals, businesses, and governments. They help to channel funds from savers to borrowers and provide a range of services such as investing, lending, and insurance.

in 1400 words, Please answer the following questions. 1) How will digitization change manufacturer and distributor realtionships? Will they be closer or further apart? What measurement processes( Sales and Profitability) will strengthen realationships? Use external sources to explain your answers.
Cite 3 APA style references at the end of your paper.

Answers

Digitization has had a transformative effect on the relationships between manufacturers and distributors.

This is due to the fact that digitization enables greater levels of communication and transparency between the two parties. As a result, manufacturers and distributors are able to better understand each other's needs and capabilities, and create a stronger partnership. In terms of measurement processes, sales and profitability will be two key areas of focus. Manufacturers can monitor sales performance of their products and adjust their strategies accordingly, while distributors can use profitability metrics to optimize the level of service they provide. Additionally, external sources such as customer feedback, market research, and competitive analysis can help both parties understand the effectiveness of their strategies.

References:

K, S. (2017). The impact of digitization on supplier-distributor relationship. Supply Chain Management, 22(1), 97–103.Krishnamurthy, V., & Ewing, M. T. (2010). Relationship orientation and performance measurement in supplier–distributor alliances. Journal of the Academy of Marketing Science, 38(3), 344–357.Sharma, S., & Foti, R. (2008). Achieving success in long-term supplier–distributor alliances: A supplier perspective. Industrial Marketing Management, 37(4), 414–423.

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Last year Gator Getters, Inc. had $50 million in total assets. Management desires to increase its plant and equipment during the coming year by $12 million. The company plans to finance 40% of the expansion with debt and the remaining 60% with equity capital. Bond financing will be at a 9% rate and will be sold at its par value. Common stock is currently selling for $50 per share, and flotation costs for new common stock will amount to $5 per share. The expected dividend next year for Gator is $2.50. Furthermore, dividends are expected to grow at a 6% rate far into the future. The marginal corporate tax rate is 34%. Internal funding available from additions to retained earnings is $4,000,000.
a) What amount of new common stock must be sold if the existing capital structure is to be maintained?
b) Calculate the weighted marginal cost of capital at an investment level of $12 million.

Answers

a)The amount of new common stock that must be sold if the existing capital structure is to be maintained is $2,666,667. b) The weighted marginal cost of capital at an investment level of $12 million is 9.9%.

(a) New common stock to be issued is to be calculated as follows:

Stock required = {(Total financing required × Percent equity financing) – Internal funds} / {(Price of new common stock – Flotation cost of new common stock) × (1 – Percent equity financing)}

Let us first calculate the total amount of financing required.

Total amount of financing required = $12,000,000

Debt financing = 40% × $12,000,000 = $4,800,000

Equity financing = 60% × $12,000,000 = $7,200,000

Internal funds = $4,000,000

Therefore, the total financing required = $12,000,000 - $4,000,000 = $8,000,000

Now, let us calculate the amount of new common stock required:

Amount of common stock required = {[($12,000,000 × 60%) - $4,000,000] / [$50 - $5]} / (1 - 60%)= {[($7,200,000 - $4,000,000) / $45]} / 0.4= ($3,200,000 / $45) × 2.5= $2,666,667

Therefore, the amount of new common stock to be issued is $2,666,667 (rounded to the nearest dollar).

(b) To calculate the weighted average cost of capital (WACC), the cost of each financing option should be multiplied by its respective weight and then summing up all the costs.

Marginal cost of capital from retained earnings: Retained earnings have no cost attached to them.

Hence, their weight is equal to the proportion of total financing required that is fulfilled by retained earnings.

Marginal cost of capital from retained earnings = 0 (as there is no cost)

Weight of retained earnings = $4,000,000 / $12,000,000 = 0.333

Therefore, the cost of retained earnings financing = 0% × 0.333 = 0%

Bond financing cost:

Cost of bond financing = 9%(1 - 0.34) = 5.94%

Weight of bond financing = 0.4

Therefore, the cost of bond financing = 5.94% × 0.4 = 2.38%

Equity financing cost:

Dividend expected next year = $2.50

Cost of issuing new common stock = [$50 - $5] = $45

Cost of external equity financing (Rs) = [($2.50 × 1.06) / ($50 - $5)] + 0.06 = 0.1113

Weight of equity financing = 0.6

Therefore, the cost of equity financing = 0.1113 × 0.6 = 6.68%

Marginal cost of capital:

Marginal cost of capital = WACC = Total financing cost / Total financing required= ($0.00 + $2.38 + $6.68) / $12,000,000= 0.099 = 9.9%

The weighted marginal cost of capital at an investment level of $12 million is 9.9%.

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in countries where consumers have more income to spend after their physical needs are satisfied, advertising serves what particular function? it discourages competition. it stimulates innovation and new products. it stimulates the sale of products with relatively inelastic demand. it helps achieve long-term acceptance for products that do not meet consumer approval. it discourages the entry and use of new products in the market.

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In countries where consumers have more income to spend after their physical needs are satisfied, advertising stimulates innovation and new products.

Advertising stimulate innovation and new products in countries where consumers have more income to spend after their physical needs are satisfied because as disposable incomes increase, individuals will have more resources to spend on non-essential items, such as branded goods, luxury services, and premium items. Because of the increased demand, producers will respond by developing new items and improving current goods to capture this market. These product advancements and innovations are promoted by advertising to encourage new customers to test and buy them.

Therefore, the answer is: it stimulates innovation and new products.

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EVALUATE THE CURRENT MARKET SIZE AND SHARE OF THE PROCESSED MEAT,
SEAFOOD AND ALTERNATIVES TO MEAT IN THE UK SINCE 2021

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The size of the global market for meat alternatives, which was estimated at USD 5.41 billion in 2021, is anticipated to increase from USD 5.88 billion in 2022 to USD 12.30 billion by 2029, with a CAGR of 11.11% over the forecast period of 2022–2029.

What portion of the meat and meat substitute market is there?

The market for meat substitutes was estimated at USD 1.89 billion in 2021, and during the forecast period, it is anticipated to expand at a CAGR of 13.5%. By 2027, it is expected that the global market for meat alternatives would be worth USD 4.04 billion.

How big is the UK market for meat substitutes?

The meat substitute market in the United Kingdom earned 830 million dollars in revenue in 2022, a 110 million dollar increase from 2021. According to the Statista Consumer Market Forecast, revenue will climb even further by 2023 and will exceed $1 billion USD.

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suppose the government wants to minimize the deadweight loss associated with an excise tax. sort the following goods into their correct category based on the size of the deadweight loss that will be created after the imposition of an excise tax.

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The size of the deadweight loss created by an excise tax depends on the elasticity of demand and supply for the good in question. If demand or supply is inelastic, then the deadweight loss will be smaller. If demand or supply is elastic, then the deadweight loss will be larger.

Goods with inelastic demand or supply:
- Medicines
- Gasoline
- Cigarettes
- Alcohol

Goods with elastic demand or supply:
- Luxury goods
- Clothes
- Restaurant meals
- Entertainment

Therefore, if the government wants to minimize the deadweight loss associated with an excise tax, it should impose a tax on goods with inelastic demand or supply, such as medicines, gasoline, cigarettes, and alcohol. On the other hand, it should avoid imposing a tax on goods with elastic demand or supply, such as luxury goods, clothes, restaurant meals, and entertainment.

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Suppose you are a financial manager for the Shah Corporation and trying to decide between the following two mutually exclusive projects: Project | Year CF
0 -3,050,000
1 650,000
2 -233,000 3 899,000
4 486,000 5 898,000 6 -123,000 7 869,000 8 -955,000 9 898,000 10 996,000 Project II Year CF
0 -3,050,000
1 988,000 2 598,000
3 -29,000
4 468,000
5 412,000 6 -298,000 7 -156,000
8 855,000
9 876,000
10 501,000
The firm is facing capital rationing challenges. Given the current economic situation, the minimum required rate of return for both projects is 6.25%. Based on the given information, which project should you accept and why? Please show all the calculations by which you came up with the final answer. (8 Points) Answer:

Answers

Project II has a positive net present value (NPV) of $455,236 while Project I has a negative net present value (NPV) of $3,425,431. As a result, Project II should be accepted because it will generate more value for the company and has a higher net present value.

What is Negative NPV?

Negative Net Present Value is referred to as negative NPV. This indicates that a project or investment's cash outflows have a lower expected present value than the project's cash inflows. To put it another way, it is anticipated that the investment will result in a net loss, also known as a negative return on investment. A project's unfeasibility or the availability of better investment options with positive NPV may be indicated by a negative NPV. As a result, a negative net present value (NPV) is typically regarded as unfavorable and may lead to the decision to reject the investment or project.

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Cullumber Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $91,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Cullumber expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2017. Click here to view the factor table. Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e. G. 5,275. )

Answers

The amortization schedule for the lease of the machine between Cullumber Leasing Company and Sharrer Corporation is as follows:

Year                                  2017                  2018                    2019                   2020

Annual Rent                    $7,727              $7,727                   $7,727                $7,727

Interest Expense            $52,250            $41,808                $26,847             $11,282

Principal Repayment      $12,523             $13,965                $15,880             $18,445

Remaining Balance         $52,477           $38,512                 $22,632             $4,187

An amortization schedule is a table that displays how principal and interest are divided up into individual monthly loan payments over the course of a loan. It is a helpful tool for borrowers to keep track of their loan balance and comprehend how much of each payment is used to principal reduction as opposed to interest.

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which of the following is true of scrum? group of answer choices it is generic enough to be used for the development of business processes, information systems, and applications. it was developed to overcome the problems that occur when using the business process modeling notation (bpmn). its work periods are usually three months or longer. it does not adapt to change easily. it produces error free systems.

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Scrum is an agile methodology that is widely used in software development, but it is generic enough to be used for the development of business processes, information systems, and applications.

Scrum was developed to overcome the problems that occur when using the business process modeling notation (BPMN). It is based on a cycle of events that allows the project team to plan, execute, and review a project. The cycle is typically two to four weeks long, and each cycle is known as a sprint.

Scrum works best when it is adapted to change easily, as it allows the project team to adjust and respond quickly to changes in the project's requirements. It also produces high-quality systems because it limits work in progress and encourages collaboration. Scrum promotes a culture of continuous improvement, which helps to ensure that errors are identified and resolved quickly.

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Consider a scenario regarding CAL in which the T-bill (risk-free rate) is 2%, the portfolio P return is 10%, and the portfolio P risk is a standard deviation of 14%. What is the expected return for a portfolio with 90% T-bills and 10% portfolio P?
a. 11.20% b. 2.80% c. 12.60% d. 1.40%

Answers

The expected return for a portfolio with 90% T-bills and 10% portfolio P is 2.80%. The correct option is b. 2.80%.

When the investor is interested in combining the risk-free T-bills with the risk of investing in the portfolio P to achieve some degree of risk/reward trade-off, this combination leads to a CAL (Capital Allocation Line). CAL line has the following formula: E(Rp) = Rf + σp[E(Rm) − Rf]CAL can also be described as an investor's expected rate of return.

It is a rate of return on a portfolio that the investor obtains for taking on higher risk. The risk is usually determined by the standard deviation (σ) of the portfolio, which is compared to that of the overall market. In the given scenario, we can find the expected return using the above formula: E(Rp) = 2% + 0.1 [10% − 2%]E(Rp) = 2% + 0.1 × 8%E(Rp) = 2.8%

Hence, the expected return for a portfolio with 90% T-bills and 10% portfolio P is 2.8%.

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- Identify the five key elements of successful change management.
- Explain the importance of each of the five elements.
- Describe how each element helps to effectively implement change within an organization.
- Consider a professional situation where changes were made in the workplace and describe how the five key elements could aid in implementing change.

Answers

Key elements of a successful change management are Vision and leadership, Communication and stakeholder management, Culture and employee engagement, Governance and project management, and Continuous improvement which are significant in effective implementation of change. These can aid in implementing change in a professional situation such as

There are five key elements of successful change management, which include Vision and leadership, Communication and stakeholder management, Culture and employee engagement, Governance and project management, and Continuous improvement.

The importance of each of the five elements is as follows:

Vision and leadership: It is essential to have a clear vision and a well-defined leadership team to achieve success in the implementation of change.Communication and stakeholder management: Communication helps to spread the message and reach everyone in the organization, creating a better understanding of the change. Stakeholder management ensures that everyone involved in the change process is heard and their concerns addressed.Culture and employee engagement: A company's culture plays a crucial role in change management. A positive culture will help in the successful implementation of the changes. Employee engagement means the involvement of employees throughout the change process.Governance and project management: It involves a structured process for the successful management of change projects. It ensures the effective use of resources and timely completion of projects.Continuous improvement: After the successful implementation of change, it is essential to monitor and evaluate the effectiveness of the change to identify areas for further improvement.

In professional situations where changes were made in the workplace, the five key elements could aid in implementing change by ensuring a clear vision, effective communication, positive culture, effective governance, and continuous improvement.

For example, if a company were implementing a new customer service system, it would be important to communicate the change to all employees, set goals and timelines for the change, get employees involved in the process, provide training and education on how to use the new system, and offer support as the system is being implemented. By utilizing these five key elements of change management, the company can effectively implement the new system and ensure its success.

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financial data for spinaway, inc. (unless otherwise noted, all data is for december 31, 2022) number of shares outstanding 72,000 average collection period (days) 25 sales $960,000 accounts payable days 15 gross profit margin 20% retained earnings (dec 31, 2021) $328,000 inventory turnover ratio 8 dividends paid in 2022 $65,000 notes payable $18,000 accruals $21,000 net profit margin 15% land $186,000 return on assets 8.0% debt ratio 65% percent of sales on credit 90% par value per share $0.50 gross fixed assets $2,276,000 accumulated depreciation $940,000 assume a 360-day year and assume that the only accounts on the balance sheet are those listed below. fill in this chart with the data provided and then answer questions 42, 43, 44, 45 and 46.

Answers

The total assets is $1522000. The liabilities is $39000 and the earnings per share is $1.76.

To fill in the chart, we need to use the given financial data and calculate the missing values. Here are the calculations:

1. Total assets = Gross fixed assets - Accumulated depreciation + Land = $2,276,000 - $940,000 + $186,000 = $1,522,000

2. Total liabilities = Notes payable + Accruals = $18,000 + $21,000 = $39,000

3. Total equity = Retained earnings + (Number of shares outstanding x Par value per share) = $328,000 + (72,000 x $0.50) = $364,000

4. Total sales = Sales on credit + Cash sales = ($960,000 x 90%) + ($960,000 x 10%) = $864,000 + $96,000 = $960,000

5. Cost of goods sold = Sales - Gross profit = $960,000 - ($960,000 x 20%) = $960,000 - $192,000 = $768,000

6. Net income = Sales - Cost of goods sold - Dividends = $960,000 - $768,000 - $65,000 = $127,000

Now, we can fill in the chart:

| Financial Data | Amount |
| --- | --- |
| Total assets | $1,522,000 |
| Total liabilities | $39,000 |
| Total equity | $364,000 |
| Total sales | $960,000 |
| Cost of goods sold | $768,000 |
| Net income | $127,000 |

Questions 42-46:

42. What is the current ratio?
Current ratio = Total assets / Total liabilities = $1,522,000 / $39,000 = 39.03

43. What is the quick ratio?
Quick ratio = (Total assets - Inventory) / Total liabilities = ($1,522,000 - $768,000) / $39,000 = 19.33

44. What is the debt-to-equity ratio?
Debt-to-equity ratio = Total liabilities / Total equity = $39,000 / $364,000 = 0.11

45. What is the return on equity?
Return on equity = Net income / Total equity = $127,000 / $364,000 = 0.35

46. What is the earnings per share?
Earnings per share = Net income / Number of shares outstanding = $127,000 / 72,000 = $1.76

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Each year, one in seven large corporations commits fraud. Why? Economist Alexander Wagner takes us inside the economics, ethics, and psychology of doing the right thing.
Watch the video and write a two-paragraph minimum (3-5 sentences per paragraph) argument for why you agree or disagree with the speaker's assertions. Provide references for other, credible viewpoints to help bolster your arguments.

Answers

Economist Alexander Wagner delves into the economics, ethics, and psychology of corporate fraud in his TED Talk. He begins by pointing out that fraud is an endemic problem in the corporate world, with one in seven large companies committing fraud each year. Wagner goes on to suggest that there are three primary reasons why companies engage in fraudulent behavior: incentives, opportunities, and rationalizations.

Incentives refer to the financial rewards that companies can receive by committing fraud, while opportunities refer to the ease with which they can do so. Rationalizations are the justifications that companies use to convince themselves that their actions are morally justifiable, despite knowing that they are illegal or unethical. While some may argue that companies are simply trying to maximize profits and protect their interests, others may contend that they have a moral responsibility to act ethically and uphold their social and legal obligations.

According to the philosopher Immanuel Kant, ethics is about doing what is right because it is right, not because it will benefit us in some way. Similarly, the economist Milton Friedman argues that companies have a duty to their shareholders to maximize profits, but that they should do so within the bounds of the law and without engaging in fraudulent or unethical behavior. Ultimately, the question of why companies commit fraud is a complex one that requires us to consider a wide range of economic, ethical, and psychological factors.

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Josie had to pay AMT last year. She had to add several items to her regular taxable income in arriving at alternative minimum taxable income. Under what situation, it will result in an AMT credit that can be used to offset future regular tax liability?

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Josie had to pay AMT last year. To obtain AMT credit that can be used to offset future regular tax liability, you should consider the situation where Alternative minimum taxable income (AMTI) is lowered due to prior-year minimum tax credit.

At times, taxpayers can receive an AMT credit, which is a tax credit. When taxpayers pay AMT for the first time, they will get this credit. The credit is equivalent to the prior year's minimum tax paid. Any unused AMT credits can be carried forward and used to offset future regular tax liability. AMT credit can be a valuable tool for lowering tax liability, particularly if the taxpayer has several years of unused AMT credits.

The Alternative minimum tax (AMT) is a supplementary income tax levied by the United States federal government on certain types of income that are eligible for preferential tax treatment, such as capital gains, accelerated depreciation, and tax-free municipal bond interest.

The AMT is calculated separately from the regular tax, and the taxpayer must pay whichever tax amount is higher. The AMT was introduced in 1969 to ensure that high-income earners paid a minimum level of tax, regardless of their deductions and credits.

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The president of your CPA firm's largest client, a medium-size manufacturing company, advises you that the firm is about to acquire its largest supplier. Both companies have been profitable for the past ten years. The president wants to know what tax return filing options are available for the two companies and the advantages and disadvantages of the options. What factors are likely to be most important for this decision? What additional information do you need to give the president an informed answer?

Answers

The factors that are likely to be most important for this decision include the size of the two companies, their current operating structure, the nature of the acquisition, and the tax laws in the jurisdiction of the companies.

Additional information is required in order to provide the president with an informed response, such as the size of the two businesses

(such as their revenue, profits, and number of employees),

their current operating structure

(such as whether they are corporations or partnerships),

and the nature of the acquisition

(e.g. whether it is a purchase, merger, or stock exchange).

To ascertain the various filing alternatives and the benefits and drawbacks of each option, information on the applicable tax regulations in the jurisdiction of the firms will also be necessary.

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2. Describe the four types of economic shifts the United States has experienced.

3. Describe what is shown by GDP, unemployment rate, rate of inflation, and national debt.

4. Explain how individuals in the government influences the economic.

5. Describe the four stages of the business cycle.

6. Would the cars made in this country by a foreign-owned company be included in GDP? Why or why not?

7. Which would be included in GDP: babysitting at home or working at a day-care center?

8. Why are people who are employed but not looking for work not included in the unemployment figures?

9. Why is inflation especially difficult for retired people?

10. Why my deflation be a bad thing?

11. Suppose you go to a store to buy a soda but notice the price is 20 cents higher than it was last week. Other prices are unchanged. Is this an example of inflation? Why or why not?

12. In which stage four stages of the business cycle will there be more personal bankruptcies? More business formations?

13. Explain why does standard of living is higher in the United States than in many other countries.

Answers

Answer:

2. There are four stages of the business cycle- prosperity, recession, depression, and recovery. Prosperity is a peak of economic activity. During a recession, economic activity slows down. A depression is a deep recession that affects the entire economy and lasts for several years.

3. The GDP shows the rate of the economy how much people and the government are spending, unemployment rate shows how many people that are out work but are looking for work, rate of inflation shows how much prices of products and services are going up, national debt shows how much money a country has borrowed from other countries or other places.

4. Governments influence the economy by changing the level and types of taxes, the extent and composition of spending, and the degree and form of borrowing. Governments directly and indirectly influence the way resources are used in the economy.

5.The economic cycle generally comprises four phases: expansion, peak, contraction, and recovery. The duration of economic cycles varies, making the phases difficult to time. Some sectors tend to outperform others during different phases of the cycle.

6.Only goods and services produced domestically are included within the GDP. That means that goods produced by Americans outside the U.S. will not be counted as part of the GDP.

7. GDP does not count productive services, such as child care, food preparation, cleaning, and laundry, provided within the household.

8. The unemployment rate measures the share of workers in the labor force who do not currently have a job but are actively looking for work. People who have not looked for work in the past four weeks are not included in this measure.

10. Deflation is associated with an increase in interest rates, which will cause an increase in the real value of debt. As a result, consumers are likely to defer their spending.

11. It must be noted that inflation refers to a general rise in the prices of all good and services in an economy during a period. Hence, it is evident that the above mentioned case is not an example of inflation as inflation affects the entire economy and increased prices of almost all products.Whereas the case only includes an increased price of one product, and not any other product. It may have happened due to other factors such as increased demand for cola, or enhanced quality by the manufacturer, or any other miscellaneous reason, but not inflation.

12. Depression may be defined as a state of intense recession that adversely affects the whole economy, its effect lasting across several countries over a long period of time. The stage of depression is often characterised by a low production of goods and services, and resultantly a high level of unemployment. Thus, depression is the stage when the personal bankruptcies happen.The stage that follows depression is the Recovery. Recovery may be defined as a stage where the business activity starts to increase and is thus characterised by a gradual revival and increase in the production of goods and services. Those affected by depression earlier begin their economic activities and gradually their propensity to spend increases. This further stimulates demand and and production. Thus, recovery is the stage of business formations.

13. This is due to many factors, such as the country's high gross domestic product per capita, low levels of poverty, and high levels of access to education and health care. The average life expectancy in the United States is also relatively high at 79 years.

Explanation:

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What is the organizational structure of the Cleveland Clinic and who is their competitors?

Answers

Answer:

The Board of Directors is the primary governing body of Cleveland Clinic. The Board of Trustees serves in an advisory role to the Board of Directors. In addition, the Board of Governors, composed primarily of physicians, oversees the medical and surgical activity of Cleveland Clinic.

Determine the present of a ten-year bond payable with a face
value of $80,000 and a stated interest rate of 8%, paid
semiannually. The market rate of interest is 12%.

Answers

The present value of a ten-year bond payable with a face value semiannually is calculated using the following formula:

Present Value = Face Value / [(1 + Interest Rate)^N]

where N is the number of semiannual payments over the 10-year period.

In this case, the present value of the bond is:
Present Value = Face Value / [(1 + 0.12)^20]

The present value of the bond is thus: Face Value / (1.7159^20)



Therefore, the present value of the ten-year bond is equal to the face value of the bond divided by 1.7159 raised to the 20th power. This calculation takes into account the market rate of interest of 12% and the fact that the face value of the bond is payable semiannually.



To sum up, the present value of a ten-year bond payable with a face value semiannually is calculated using the formula:
Present Value = Face Value / [(1 + Interest Rate)^N], where N is the number of semiannual payments over the 10-year period. In this case, the present value of the bond is equal to the face value of the bond divided by 1.7159 raised to the 20th power.

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You are going to invest 8934 today and 9316 1 year from today.
If you expect to earn return of 9.53%, how much will you have in 5
years

Answers

If you expect to earn return of 9.53%, you'll have $14,946.75 in five years.

To answer your question, if you invest $8934 today and $9316 one year from today, and expect to earn a return of 9.53%, then you will have $14,946.75 in five years. Here's the step-by-step explanation:

Step 1: Calculate the future value of the first investment after one year.  

FV = 8934 x (1+0.0953) = 9801.64

Step 2: Calculate the future value of the second investment after one year.

FV = 9316 x (1+0.0953) = 10240.48

Step 3: Calculate the future value of the combined investment after five years.

FV = (9801.64 + 10240.48) x (1+0.0953)^4 = 14,946.75

Therefore, if you invest $8934 today and $9316 one year from today, and expect to earn a return of 9.53%, then you will have $14,946.75 in five years.

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• What is blockchain technology?
How can blockchain technology be used in supply chains?
Please make sure you mention your sources in the essay
the word limit 250 words please mention the links and dont do the pharaphrasing just written in your own style

Answers

Blockchain technology is a distributed digital ledger that is used to record and verify transactions. In supply chain management, blockchain technology can be used to increase transparency, efficiency, and security.

Blockchain technology, It allows for secure and transparent transactions to occur between multiple parties without the need for a central authority or intermediary. Each transaction is recorded as a "block" in the chain, and once added, it cannot be altered, making it a secure and tamper-proof record of all transactions.

In supply chain management, By utilizing blockchain, companies can have a transparent and immutable record of all transactions and activities in the supply chain, from sourcing and production to shipping and delivery. This can help reduce fraud, counterfeiting, and other illicit activities while providing greater accountability and traceability in the supply chain.

Sources:

"Blockchain: What it is, how it works, and why it matters.""Blockchain in Supply Chain Management: Benefits, Challenges, and Future Trends." International Journal of Information Management."How Blockchain is Transforming Supply Chain Management." Harvard Business Review.

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(Dividend policies) Final earnings estimates for Chilean Health Spa & Fitness Center have been prepared for the CFO of the company and are shown in the following table: BE. The firm has 7,700,000 shares of common stock outstanding.
As assistant to the CFO, you are asked to determine the yearly dividend per share to be paid depending on the following possible policies
a.A stable dollar dividend targeted at 50 percent of earnings over a 5-year period.
b.A small, regular dividend of $0.70 per share plus a year-end extra when the profits in any year exceed $21,000,000.

Answers

The yearly dividend per share to be paid would depend on the policy that the company decides to implement - either $0.97 per share for policy (a) or $1.09 per share for policy (b).

For policy (a), to determine the yearly dividend per share to be paid, we need to calculate the average earnings over the 5-year period and take 50% of it as the targeted dividend per share. Let's assume the average earnings over the 5-year period is $15,000,000. Then, the targeted dividend per share would be:

Dividend per share = 50% x Average earnings / Number of shares Dividend per share = (0.5 * $15,000,000) / 7,700,000 Dividend per share = $0.97

For policy (b), we need to determine the year-end extra dividend when the profits in any year exceed $21,000,000. Let's assume that the profits for the current year are $24,000,000. Then, the year-end extra dividend per share would be:

Year-end extra dividend per share = (Profit - Threshold) / Number of shares Year-end extra dividend per share = ($24,000,000 - $21,000,000) / 7,700,000 Year-end extra dividend per share = $0.39

The regular dividend per share is given as $0.70. Therefore, the total dividend per share for policy (b) would be:

Total dividend per share = Regular dividend per share + Year-end extra dividend per share Total dividend per share = $0.70 + $0.39 Total dividend per share = $1.09

So, the yearly dividend per share to be paid would depend on the policy that the company decides to implement - either $0.97 per share for policy (a) or $1.09 per share for policy (b).

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jim's company has recently opened branch offices in several countries where they had not been located in the past. what technique might best help those reading jim's report on the company's growth to quickly grasp this progress?

Answers

The technique that might best help those reading Jim's report on the company's growth to quickly grasp this progress is the use of visual aids.

Visual aids are a great way to represent data and information so that it can be easily understood by the readers. It involves the use of images, graphs, charts, diagrams, and videos to present information in a more effective manner. In Jim's report, he can use graphs to represent the growth of the company in each of the new locations where they have opened their branches.

The graph could represent the number of customers, revenue generated, and profits from each branch in the various countries where they have opened branches. Jim could also use images to show the locations of each branch, so readers can quickly get a better idea of the countries where the branches were opened.

In conclusion, the best technique that might best help those reading Jim's report on the company's growth to quickly grasp this progress is the use of visual aids.

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Sam Tuckerton sells for Fair Designs, Inc. He is on a 4. 5% straight commission with a $1,800 drawing account. If he is paid the draw at the beginning of the month and then sells $125,000 during the month, how much commission is owed to Sam?

Answers

$5,625 will be the commission owed to Sam at on a 4. 5% straight commission with a $1,800 drawing account.

Sam's commission is calculated based on his sales for the month. Since he is on a straight commission of 4.5%, his commission can be calculated by multiplying his sales by 4.5%.

First, let's calculate Sam's draw:

$1,800

Next, let's calculate his total commissionable sales for the month:

$125,000

Now, let's calculate his commission on his sales:

Commission = Commission rate x Sales

Commission = 0.045 x $125,000

Commission = $5,625

An account is a record of financial transactions between parties. It can be used to track assets, liabilities, income, expenses, and equity. Accounts can be kept manually or using accounting software. Properly maintained accounts are important for accurate financial reporting, tax compliance, and making informed business decisions.

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1. An oyster bar serves an average of 1,000 oysters per day. The purchase cost is roughly $2 each. Because oysters must be kept on ice and there is heavy spoilage over night, the daily inventory holding cost is estimated to be 45% (i.e., it costs on average $0.9 to keep an oyster in storage for a whole day). The delivery cost per order is $50. How many deliveries per day are optimal for the oyster bar to minimize total costs?
2. Suppose the oyster bar operates 10 hours a day and thus the average consumption rate is 100 oyster per hour, however due to demand fluctuation the bar determines it should keep a safety stock of 30 oyster. Suppose the oyster supplier's lead-time (from order to delivery) is 1.5 hours. If the inventory is constantly monitored, when the inventory drops to what level (reorder point) should the oyster bar makes another order? If the demand becomes more variable over time (but unchanged on average), should the reorder point become higher or lower?

Answers

1. The number of deliveries per day that are optimal for the oyster bar to minimize total costs is 25. 2. Reorder point (inventory level) is 180 and effect of variability on reorder point is that it should be higher.

1. In the given problem, the following things are given: Average consumption of oysters per day: 1000, Purchase cost: $2, Cost of keeping oysters in storage for a day: 45% of $2, Delivery cost per order: $50. Let the optimal number of deliveries per day be d. We know that,

Total cost = Purchase cost + Cost of keeping in storage + Delivery cost / Number of deliveries per day

Therefore,

Total cost = (1000/d)*2 + (0.45*2*1000) + 50d

To minimize total costs, let's differentiate the above expression with respect to d.

(d/1000)*2 - 50 = 0

(d/1000)*2 = 50

d = 25

Therefore, the optimal number of deliveries per day is 25.

2. Let the reorder point be r. As given in the problem, Consumption rate = 100 oysters per hour, Safety stock = 30 oysters, Lead time (order to delivery) = 1.5 hours.

Therefore, the usage during lead time would be 100*1.5 = 150 oysters

We need to consider the safety stock while calculating the reorder point. Therefore,

Reorder point = Usage during lead time + Safety stock

Reorder point = 150 + 30

Reorder point = 180

If the demand becomes more variable over time (but unchanged on average), then the reorder point should be higher.

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The product development department of a technology company estimates that the variable cost of manufacturing a new electronic tablet will be
$75
per unit. Based on market research, the selling price of this product will be
$150
. The fixed costs applicable to the new tablet are
$1,500,000
per month and the maximum production capacity per month is 50,000 units. Given this information, answer the following questions. a) Compute the break-even volume and show your calculator entries below.
FC=
VC=
P=
PFT
=
Q=
b) If sales were at
10%
of capacity, would there be a profit or loss, and of what amount? Profit or loss? Amount
=
c) If they reduced the price to
$120
because the variable costs were reduced by
20%
per unit, calculate the new break-even volume. Show your calculator entries below.
FC=

Answers

The product development department of a technology company estimates that the variable cost of manufacturing a new electronic tablet .   FC = $1,500,000, VC = $75, SP = $150 Maximum production capacity per month, Q = 50,000 units.

a) Calculation of Break-Even Point:

PFT = 0 (i.e., profit at the Break-Even Point is zero)$P \times Q = FC + VC \times Q\\150 \times Q = 1,500,000 + 75 \times Q\\150 Q - 75 Q = 1,500,000\\75 Q = 1,500,000\\Q = \frac{1,500,000}{75} = 20,000Therefore, the break-even volume is 20,000 units.

b) Calculation of profit or loss:

profit or loss at 10% of capacity: At 10% of capacity, Q = 10% of 50,000 = 5000 units Let's calculate Profit/Loss: Total Sales Revenue = P × Q= $150 × 5000= $750,000Total Fixed Cost = FC = $1,500,000Total Variable Cost = VC × Q= $75 × 5000= $375,000Total Cost = Total Fixed Cost + Total Variable Cost= $1,500,000 + $375,000= $1,875,000As the total revenue is less than the total cost, there will be a loss. Profit or Loss Amount = Total Revenue – Total Cost= $750,000 – $1,875,000= –$1,125,000Therefore, the amount of loss is $1,125,000. Below is the calculation.

c) Calculation of Break-Even Point after reducing the price: New Variable Cost per unit= 75 − 20% of 75= 75 − 15= $60Therefore, new Selling Price per unit = $120Calculation of new Break-Even Volume: PFT = 0 (i.e., profit at the Break-Even Point is zero)$P \times Q = FC + VC \times Q\\120 \times Q = 1,500,000 + 60 \times Q\\120 Q - 60 Q = 1,500,000\\60 Q = 1,500,000\\Q = \frac{1,500,000}{60} = 25,000Therefore, the new break-even volume is 25,000 units. Below is the calculation.

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