Cost-volume-profit (C-V-P) analysis is a useful tool for businesses to understand how changes in costs, volume, and pricing affect their profits. It is particularly relevant in absorption costing, which is a method of cost accounting that allocates all manufacturing costs to the units produced.
In C-V-P analysis, the contribution margin is calculated by subtracting the variable costs from the sales price. The contribution margin per unit can then be used to determine the break-even point, which is the point where the total revenue equals the total costs. This analysis can help businesses determine the sales volume needed to cover their fixed costs and achieve a target profit.
In absorption costing, C-V-P analysis can be applied by calculating the contribution margin per unit based on the full manufacturing cost, including both variable and fixed costs. This analysis can help businesses make informed decisions about pricing and volume levels to maximize profits.
For example, if a business has high fixed costs, they may need to sell a higher volume of units to break even or achieve a target profit. Alternatively, if they have a high contribution margin per unit, they may be able to charge a higher price and sell fewer units to achieve the same profit.
Overall, C-V-P analysis can provide valuable insights into the relationship between costs, volume, and profits in absorption costing and help businesses make informed decisions about pricing and volume levels.
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Peter has a housing loan with UOB Bank before the COVID19 pandemic broke out. The details of the loan are as follows: Principal: $1,000,000 Interest rate: 4% per annum Tenure: 25 years Repayment: Amortization with monthly repayment. The lives of many were affected with jobs lost and businesses declining by the pandemic. Peter was adversely affected, too, and was unable to service his loan. Many banks, UOB included, showed compassion by allowing homeowners to defer full loan repayments by paying interest only for 18 months as a relief. When this was announced, Peter had just paid the 120th instalment of his housing loan. Compute the monthly repayment before the pandemic broke out?
Peter's monthly repayment before the pandemic broke out was $5,381.63. So, the answer is $5,381.63
To calculate the monthly repayment:To compute the monthly repayment before the pandemic broke out, we can use the formula for amortization:
Monthly Repayment = [P x R x (1+R)^N] / [(1+R)^N - 1]
Where:
P = Principal = $1,000,000
R = Monthly Interest Rate = 4% / 12 months = 0.00333
N = Total Number of Payments = 25 years x 12 months per year = 300
Plugging in the values, we get:
Monthly Repayment = [1,000,000 x 0.00333 x (1+0.00333)^300] / [(1+0.00333)^300 - 1]
Monthly Repayment = $5,381.63
Therefore, Peter's monthly repayment before the pandemic broke out was $5,381.63.
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Weston Corporation just paid a dividend of $1.73 a share (i.e., D0 = $1.73). The dividend is expected to grow 2.33% a year for the next 3 years and then at 4.20% a year thereafter. Calculate the expected dividend per share for each of the next 5 years.
To calculate the expected dividend per share for each of the next 5 years for Weston Corporation, we will apply the given growth rates to the initial dividend of $1.73 a share.
Year 1: D0 * (1 + g1) = $1.73 * (1 + 0.0233) = $1.77
Year 2: Year 1 dividend * (1 + g1) = $1.77 * (1 + 0.0233) = $1.81
Year 3: Year 2 dividend * (1 + g1) = $1.81 * (1 + 0.0233) = $1.85
For years 4 and 5, we will use the 4.20% growth rate (g2):
Year 4: Year 3 dividend * (1 + g2) = $1.85 * (1 + 0.0420) = $1.93
Year 5: Year 4 dividend * (1 + g2) = $1.93 * (1 + 0.0420) = $2.01
So, the expected dividend per share for the next 5 years is as follows:
Year 1: $1.77, Year 2: $1.81, Year 3: $1.85, Year 4: $1.93, and Year 5: $2.01.
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Starbucks wants to launch its new cold-brewed coffee, but they are not sure what will be the reaction of usual customers. They decided to conduct an experiment in which 1000 Starbucks cardholder (or app holders) are randomly assigned to two groups. The first group is given free sample of the new cold-brewed coffee. Both groups are sent gift rewards to redeem at participating Starbucks stores. The Starbucks computer system showed that 240 of sent reward were redeemed by the group that tried the free samples, and 200 were redeemed by the group that did not. a. Draw the design of this field experiment diagrammatically. (5 marks) b. What are threats to internal validity of this experiment? (5 marks)
a. The diagram for the field experiment would look something like this:
Random Assignment
|
V
Group 1 (Free Cold-Brewed Coffee) <--- Gift Rewards Sent --> 240 Rewards Redeemed
|
V
Group 2 (No Free Coffee) <--- Gift Rewards Sent --> 200 Rewards Redeemed
b. There are several threats to internal validity in this experiment, including:
1. Selection bias: Although the participants were randomly assigned to groups, there could still be differences between the two groups that affect the results. For example, one group might be more likely to redeem the rewards regardless of whether they tried the new coffee or not.
2. Hawthorne effect: Participants might change their behavior simply because they know they are being observed or because they received a free sample. This could affect the validity of the results.
3. Sampling bias: The experiment only includes Starbucks cardholders or app holders, which might not be representative of the general population. This could limit the generalizability of the results.
4. Confounding variables: There might be other factors that affect whether participants redeem their rewards, such as their location, time of day, or whether they are with friends or alone. These variables could affect the validity of the results.
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The current bid and ask price quotes for a non-dividend paying common stock are observed as $9.75 and $10.00, respectively, and the continuously compounded risk-free rate is 4.0% per year for lending and 4.5% per year for borrowing over a nine-month horizon. Based on these inputs, determine the range of nine- month futures prices over which the no-arbitrage condition in the stock market would not be violated.
To determine the range of nine-month futures prices over which the no-arbitrage condition in the stock market would not be violated, we need to use the cost-of-carry model.
The cost-of-carry model states that the futures price of a stock should be equal to the spot price plus the cost of carry, which is the interest earned on the spot price minus the interest paid on the futures price.
Using this formula, we can calculate the cost of carrying as follows:
Cost of carry = (r + s - q) x T
Where r is the risk-free rate for lending, s is the storage cost (which is assumed to be zero for a non-perishable asset like a stock), q is the dividend yield (which is assumed to be zero for a non-dividend paying stock), and T is the time horizon (in years).
Plugging in the given values, we get:
Cost of carry = (0.04 - 0 - 0) x (9/12) = 0.03
Now we can calculate the futures price using the cost-of-carry model:
Futures price = Spot price + Cost of carrying
Futures price = $10.00 + 0.03
Futures price = $10.03
So the futures price should be $10.03 to satisfy the no-arbitrage condition.
However, we need to determine the range of futures prices over which the no-arbitrage condition would not be violated. To do this, we can use the following formula:
Futures price = Spot price x e^(rT)
Where e is the exponential function and r is the risk-free rate for borrowing.
Plugging in the given values, we get:
Futures price = $10.00 x e^(0.045 x (9/12))
Futures price = $10.16
So the upper limit of the range of futures prices is $10.16.
To calculate the lower limit, we can use the same formula but with the risk-free rate for lending:
Futures price = $10.00 x e^(0.04 x (9/12))
Futures price = $10.13
So the lower limit of the range of futures prices is $10.13.
Therefore, the range of nine-month futures prices over which the no-arbitrage condition in the stock market would not be violated is between $10.13 and $10.16.
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Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or $180.If both firms bid the same price,the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero).The non-cooperative outcome in this situation is one firm bids $100,the other firm bids $180. Oboth firms bid $90 Oboth firms bid $180 O both firms bid s50. Oboth firms bid $100
The best outcome for both firms, In the given prisoner's dilemma problem would be if they both bid $100 and cooperate with each other, to maximize their chances of winning the contract, which is the non-cooperative outcome. So, the correct option is "both firms bid $100."
In the given prisoner's dilemma example involving 2 firms making sealed bids on a contract, the non-cooperative outcome is both firms bid $100. Here's the step-by-step explanation:
1. If both firms bid $100, they share the job equally and each earns $50 (half of their bid).
2. If both firms bid $180, they also share the job equally, but each earns $90 (half of their bid).
3. If one firm bids $100 and the other bids $180, the lower bidder (the one that bid $100) wins the contract and earns the full value of its bid ($100), while the other firm earns zero.
In a non-cooperative situation, both firms would try to maximize their individual profit without considering the other firm. If one firm chooses to bid $180, the other firm would rationally choose to bid $100 to win the contract. As a result, both firms will eventually bid $100 to maximize their chances of winning the contract, which is the non-cooperative outcome.
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Previous Page Next Page Page 3 of 13 Question 3 (1 point) A ________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds. a) unit investment trust b) equity fund c) hedge fund d) commingled fund e) money market fund
A hedge fund is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds.
What do you mean by hedge fund?
A hedge fund is a type of investment fund that pools money from accredited individuals or institutional investors to invest in a wide range of assets, such as stocks, bonds, commodities, currencies, and derivatives, with the aim of generating high returns. Hedge funds are typically structured as limited partnerships or limited liability companies, and they are managed by professional portfolio managers who use a variety of investment strategies, including long and short positions, leverage, and derivatives, to achieve their investment objectives. Hedge funds are known for their flexibility, agility, and ability to generate high returns, but they also carry higher risk and are typically only available to wealthy and sophisticated investors.
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_____, an approach to advertising execution, offers an imaginative look at how it might be if a customer purchases a product.
a. Musical
b. Humor
c. Endorser
d. Slice of life
e. Fantasy creation
The approach to advertising execution that offers an imaginative look at how it might be if a customer purchases a product is e. Fantasy creation.
In this approach, the advertising portrays a dream-like scenario where the customer is transported to a magical world where the product is the answer to all their problems. This approach is particularly effective in creating an emotional connection with the customer, as it taps into their deepest desires and aspirations. By using fantasy elements, the advertising is able to evoke a sense of wonder and awe in the customer, making them more likely to engage with the brand and ultimately make a purchase. Overall, the fantasy creation approach is a powerful tool for advertisers looking to create a memorable and impactful campaign that resonates with their target audience.
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Many companies believe they have a role in promoting ______ ______ that goes beyond simply "giving back"
Many companies believe they have a role in promoting social responsibility that goes beyond simply "giving back."
Social responsibility refers to the idea that businesses have an obligation to act in the best interest of society, including its employees, customers, and the broader community, and to address issues related to sustainability, social justice, and ethical behavior.
This can involve implementing sustainable business practices, supporting diversity and inclusion initiatives, and taking an active role in addressing social and environmental issues. By promoting social responsibility, companies can help to create a more just and sustainable world while also improving their own bottom line and reputation.
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Given the following information, calculate the effective borrowing cost (rounded to the nearest tenth of a percent). Loan amount: $166,950, Term: 30 years, Interest rate: 8 %, Monthly Payment: $1,225.00, Discount points: 2, Other Closing Expenses: $3,611.
A. 7.7%
B. 8.2%
C. 8.5%
D. 9.1%
To calculate the effective borrowing cost, we need to consider the loan amount, term, interest rate, monthly payment, discount points, and other closing expenses.
Here's a step-by-step explanation:
1. Calculate the total discount points cost:
Loan amount × Discount points percentage = $166,950 × 0.02 = $3,339.
2. Calculate the total closing costs:
Discount points cost + Other closing expenses = $3,339 + $3,611 = $6,950.
3. Adjust the loan amount to account for closing costs:
Loan amount - Total closing costs = $166,950 - $6,950 = $160,000.
4. Calculate the total interest paid over the term of the loan:
(Monthly payment × Number of payments) - Adjusted loan amount = ($1,225 × 360) - $160,000 = $441,000.
5. Calculate the average annual interest paid:
Total interest paid ÷ Term = $441,000 ÷ 30 = $14,700.
6. Calculate the effective borrowing cost:
(Average annual interest paid ÷ Adjusted loan amount) × 100 = ($14,700 ÷ $160,000) × 100 ≈ 9.2%
The effective borrowing cost is approximately 9.2%, which is closest to option D (9.1%).
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Widers Company has a balance in its Accounts Payable control account of 59.390 on January 1, 2012. The sudary ledger contain the counter Hate Company balance 52710 Janith Company balance 51.580 and Valdet Company During January, the following payable related transactions occurred Purchase Payments Returns Hale Company $6.460 $5.950 50 Janish Company 5.560 1.580 2550 Vile Company 6025 6.790 0 What is the January 1 balance in the Valdet Company subsidiary account Balance in the e in the Valdez Company subsidiary accounts e Textbook and Media What is the January 31 balance in the control account? Balance in the in the control account 5 eTextbook and Media Compute the balances in the subsidiary accounts at the end of the month Hale $ Janish 5 Valders Textbook and Media Which January transaction would not be recorded in a specialjournal
To solve this problem, we need to prepare a schedule of accounts payable for January and use it to update the accounts payable subsidiary ledgers and control accounts.
Schedule of Accounts Payable:
Beginning Balance Purchases Payments Returns Ending Balance
Hale - $6,460 $5,950 $50 $520
Janish 51,580 $5,560 $1,580 $2,550 $52,010
Valdet - $6,025 $6,790 $0 $ 235
Total 59,390 $18,045 $14,320 $2,600 $52,765
(a) The January 1 balance in the Valdet Company subsidiary account is $0 since there was no balance at the beginning of the month.
(b) The January 31 balance in the control account can be calculated as the sum of the ending balances in the subsidiary accounts:
Accounts Payable Control Account Balance = Hale Company Subsidiary Balance + Janish Company Subsidiary Balance + Valdet Company Subsidiary Balance
Accounts Payable Control Account Balance = $520 + $52,010 + $235
Accounts Payable Control Account Balance = $52,765
(c) The balance in the subsidiary accounts at the end of the month are:
Hale Company: $520
Janish Company: $52,010
Valdet Company: $235
(d) The transaction that would not be recorded in a special journal is the returns made by Hale Company and Janish Company. Returns are not a common transaction and are usually recorded separately as a debit to Accounts Payable and a credit to Purchases Returns.
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A firm total revenue curve is given by TR=aQ-2Q2. Is it perfect competitive firm? explain why or why not
TR=aQ-2Q2 represents a firm's total revenue curve. This isn't a fully competitive company.
The TR curve of a PC is linear and upward sloping. As a result, this curve cannot be associated with a competing firm.
Another way to look at it is that price = AR = TR /Q = a - 2Q.
This implies that P = a - 2Q, implying that price is a function of output, which cannot be true for the PC firm because pricing is the same at all output levels.
A perfectly competitive market is one in which all businesses sell the same product and where entering and exiting the market is simple since there are no barriers.
In the previous example, if you were beginning your own firm in a fully competitive market, you would need to sell a product that is identical to the items sold by other businesses in order to join the market more readily.
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Prairie Airlines purchased a 747 aircraft on January 1, 2016, at a cost of $30,000,000. The estimated useful life of the aircraft is 20 years, with an estimated residual value of $4,000,000. On January 1, 2018 the airline revises the total estimated useful life to 15 years with a revised residual value of $3,000,000. (20 Marks) Instructions: 1. Calculate the depreciation and carrying amount at December 31, 2018 using (a) the straight-line method. Depreciable Depreciation Annual Accumulated Carrying Year Cost Rate Depreciation Depreciation
The annual depreciation expense with carrying amount at December 31, is $22,100,000.
Depreciable cost = Cost - Residual value
Depreciable cost = $30,000,000 - $4,000,000
Depreciable cost = $26,000,000
Annual depreciation rate = Depreciable cost / Useful life
Annual depreciation rate = $26,000,000 / 20 years
Annual depreciation rate = $1,300,000 per year
Therefore, the depreciation and carrying amount at December 31, 2018 using the straight-line method are:
Depreciation expense for 2016 = $1,300,000
Depreciation expense for 2017 = $1,300,000
Depreciation expense for 2018 = $1,300,000
Total accumulated depreciation at December 31, 2018 = $3,900,000
Carrying amount at December 31, 2018 = Cost - Accumulated depreciation - Residual value
Carrying amount at December 31, 2018 = $30,000,000 - $3,900,000 - $4,000,000
Carrying amount at December 31, 2018 = $22,100,000
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Business Manager Megan Caldwell expects her employees to be displeased or even hostile when she announces a new work schedule that will become effective next month. An effective organizational strategy for Megan is to __________.
An effective organizational strategy for Megan is to communicate the reasons for the new work schedule and the benefits it will bring to the company and the employees. She should also be open to feedback and suggestions from her employees and involve them in the decision-making process as much as possible.
This will help to build trust and collaboration and reduce the likelihood of hostility or resistance. Additionally, she should provide training and support to help employees adjust to the new schedule and ensure that it is implemented fairly and consistently across the organization.
An effective organizational strategy for Megan is to proactively address employees' concerns by providing clear communication, offering support, and involving them in the decision-making process.
Step 1: Clearly communicate the reasons for the change in the work schedule, including any benefits for the employees and the organization as a whole.
Step 2: Offer support, such as training or resources, to help employees adapt to the new schedule and address any challenges they may face.
Step 3: Involve employees in the decision-making process by soliciting their feedback and considering their input on the new schedule. This can help employees feel more engaged and included in the process, reducing potential hostility or displeasure.
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Peer to peer lending is only for people who cannot get a loan from a bank. True O False
The statement "Peer-to-peer lending is only for people who cannot get a loan from a bank" is False. P2P lending platforms connect borrowers directly with individual investors, providing an alternative method of obtaining loans.
People choose this option because they prefer the ease and convenience of an online platform, or because they believe they can get a better interest rate from individual investors. Peer-to-peer lending is an alternative way of obtaining loans and is not exclusively for those who cannot get loans from banks. It is an online platform that connects borrowers directly with lenders, often resulting in lower interest rates and easier access to credit for a variety of individuals, including those who might have difficulty obtaining loans from traditional banks.
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In class, we saw that commercial banks are particularly important intermediaries in the financial system. Provide some reasons for the importance of commercial banks. (12.5 points) ii) Provide arguments in favor and against central bank independence. If you had to vote in favor or against the independence of the Fed, what would you vote for and why?
Commercial banks play a crucial role in the financial system as they serve as intermediaries between borrowers and lenders. There are a number of debates in favor of central bank independence which include insulation from political influence, credibility, and long-term perspective while debates against the same include points like lack of accountability, economic inequality, and capture by special interests.
Commercial banks are important because -
1. Mobilization of savings: Commercial banks are responsible for mobilizing savings from individuals and businesses and channeling them towards productive investments. This helps in the efficient allocation of resources in the economy.
2. Credit creation: Commercial banks can create credit by extending loans and advances to borrowers. This facilitates economic growth and development by providing businesses and individuals with the necessary funds to carry out their activities.
3. Payment system: Commercial banks provide a means for individuals and businesses to make payments and transfer funds to one another. This helps in facilitating transactions in the economy.
4. Financial stability: Commercial banks help in maintaining financial stability by managing risks and ensuring the safety of depositors' funds.
Moving on to central bank independence, there are arguments both in favor and against it.
Arguments in favor of central bank independence include -
1. Insulation from political influence: Central bank independence helps in insulating monetary policy decisions from political influence, which can be detrimental to the economy.
2. Credibility: An independent central bank is likely to be more credible in its actions and decisions, which can help in anchoring inflation expectations and maintaining price stability.
3. Long-term perspective: An independent central bank can take a long-term perspective in its decision-making, which can help in promoting sustainable economic growth.
Arguments against central bank independence include -
1. Lack of accountability: An independent central bank may lack accountability to the public and elected officials, which can undermine democratic principles.
2. Economic inequality: Central bank policies may exacerbate economic inequality, and an independent central bank may not be held accountable for its role in this.
3. Capture by special interests: An independent central bank may be susceptible to capture by special interests, which can lead to policies that benefit a few at the expense of the many.
If I had to vote in favor or against the independence of the Fed, I would vote in favor of independence. This is because an independent central bank can make decisions based on economic considerations rather than political pressures, which can lead to better outcomes for the economy in the long run. Additionally, the Fed has a strong track record of maintaining price stability and promoting economic growth, which further strengthens the case for independence.
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149. An investment in training should require a cost - benefit analysis. True False
An investment in training should require a cost - benefit analysis. True. Conducting a cost-benefit analysis can help organizations determine whether the benefits of training outweigh the costs.
The analysis involves identifying the costs associated with training, such as course fees, materials, and instructor salaries, and then estimating the benefits that the organization will receive from the training, such as increased productivity, improved quality, and reduced turnover. If the benefits are expected to exceed the costs, then the investment in training can be justified. However, if the costs outweigh the benefits, then the organization may need to reconsider its training plans or look for alternative solutions. A cost-benefit analysis can help organizations make informed decisions about how to allocate their resources and prioritize their investments in training and development.
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John Sanders, MP, ___ any involvement in the scandal when asked about it yesterday
When asked about his involvement in the scandal yesterday, John Sanders, MP, denied any involvement. He made it clear that he had no knowledge of the scandal and was not involved in any way. Mr. Sanders stated that he was shocked and disappointed by the scandal and he hoped that those responsible would be brought to justice.
He emphasized that his focus was on serving his constituents and he would continue to work hard to represent them in parliament. Mr. Sanders also assured the public that he would cooperate fully with any investigation into the scandal and would be happy to answer any questions that the authorities may have. Overall, it appears that John Sanders, MP, is committed to maintaining his reputation and credibility as a public servant and is taking the allegations seriously. It remains to be seen how the scandal will unfold and whether any further information will come to light.
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anagers or teams of managers at the lower levels of an organization normally develop strategic plans, but top managers do most of the tactical planning.
True/False
The given statement "managers or teams of managers at the lower levels of an organization normally develop strategic plans, but top managers do most of the tactical planning." is false because top-level managers develop strategic plans, while lower-level managers are responsible for tactical planning in an organization.
Strategic plans involve setting long-term goals and objectives for the organization, as well as determining the overall direction and vision. These plans are crucial for the success of the organization, as they set the foundation for all other activities and decisions.
Top-level managers or executives, such as the CEO, CFO, and board of directors, are responsible for developing strategic plans because they have a comprehensive understanding of the organization's goals, resources, and competitive landscape.
On the other hand, tactical planning focuses on the short-term goals and activities that help the organization achieve its strategic objectives. This type of planning involves creating detailed action plans, allocating resources, and setting specific performance metrics for teams and individuals.
Lower-level managers or teams of managers are responsible for tactical planning because they are closer to the daily operations of the organization, and thus have a better understanding of the specific actions needed to achieve the strategic objectives.
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Gutierrez Company makes various electronic products. The company is divided into a number of autonomous divisions that can either sell to internal units or sell externally. All divisions are located in buildings on the same piece of property. The Board Division has offered the Chip Division $21 per unit to supply it with chips for 40,000 boards. It has been purchasing these chips for $22 per unit from outside suppliers. The Chip Division receives $22.50 per unit for sales made to outside customers on this type of chip. The variable cost of chips sold externally by the Chip Division is $14.50. It estimates that it will save $4.50 per chip of selling expenses on units sold internally to the Board Division. The Chip Division has no excess capacity.
(a) Calculate the minimum transfer price that the chip division should accept
Minimum transfer price $18.00
(b) Suppose that the Chip Division decides to reject the offer. What are the financial implications for each division, and for the company as a whole, of this decision?
Overall, the rejection of the offer may result in lower profits for the company as a whole, as well as a missed opportunity for the Chip Division to generate additional revenue and for the Board Division to save costs.
If the Chip Division more rejects the offer from the Board Division, it will continue to sell chips externally for $22.50 per unit. However, it will miss out on the opportunity to sell 40,000 chips internally to the Board Division, which would have generated a revenue of $21 per unit.
The Board Division will have to continue purchasing chips from outside suppliers at a cost of $22 per unit, resulting in an additional cost of $1 per unit compared to the offer made to the Chip Division.
For the company as a whole, the rejection of the offer means that there will be no internal transfer of chips, and the company will continue to purchase chips from outside suppliers for the Board Division. This will result in an additional cost of $1 per unit compared to the offer made to the Chip Division.
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if the price of movies increases, fewer consumers go to see movies. four different graphs all in the first quadrant labeled panel a. panel b. panel c. and panel d. panel a has a negatively sloped line. pabel b has a perfectly vertical line. panel c has a positively sloped line and panel d has a perfectly horizontal line. which panel's graph best describes this situation?
The panel that best describes the situation where "if the price of movies increases, fewer consumers go to see movies" would be Panel A.
Panel A has a negatively sloped line, which represents a negative relationship between the price of movies and the number of consumers who go to see them. As the price increases (moving along the x-axis), the number of consumers decreases (moving along the y-axis), which is consistent with the given scenario. This is the most suitable graph among the options.
Panel B has a perfectly vertical line, which would indicate that the number of consumers does not change with changes in the price of movies. Panel C has a positively sloped line, which would imply that as the price of movies increases, more consumers go to see them, contradicting the given scenario. Lastly, Panel D has a perfectly horizontal line, which would indicate that the number of consumers remains constant regardless of the price.
Hence, the correct answer to describe scenario is Panel A.
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True/False :When marketers use the internet to sell goods and services, they are participating in retailing.
True. When marketers use the internet to sell goods and services, they are participating in retailing. Online retailing, also known as e-commerce, is a component of the retail industry that involves selling products and services directly to consumers through digital platforms.
Retailing refers to the process of selling goods and services directly to the end consumer for personal or household use. When marketers use the internet to sell goods and services, they are engaging in the process of retailing, as they are directly selling to the end consumer.
E-commerce has become an increasingly popular method of retailing in recent years, with many businesses using online platforms to sell their products and services to consumers. Online retailing offers several advantages, such as a wider reach, lower overhead costs, and the ability to provide personalized recommendations and customer experiences. As such, it has become an important part of many companies' overall retail strategies.
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Answer:
electronic
Explanation:
Exercise 7-49 (Algorithmic) Depreciation Methods Clearcopy, a printing company, acquired a new press on January 1, 2019. The press cost $171,600 and had an expected life of 8 years or 4,500,000 pages and an expected residual value of $15,000. Clearcopy printed 649,500 pages in 2019. Do not round intermediate calculations. If required, round your answers to the nearest whole dollar. Required: 1. Compute 2019 depreciation expense using the: 2019 Straight-line method a b Double-declining-balance method Units-of-production method C. 2. What is the book value of the machine at the end of 2019 under each method? Book Value $ Straight-line method Double-declining-balance method $ Units-of-production method
Accumulated depreciation at the end of 2019 = $22,840.40 Book value = Cost - Accumulated depreciation Book value = $171,600 - $22,840.40 = $148,759.60
1a. Straight-line method depreciation expense for 2019 can be calculated as:
depreciation expense = (Cost - Residual value) / Expected life
Depreciation expense = ($171,600 - $15,000) / 8
Depreciation expense = $19,200
b. Double-declining-balance method depreciation expense for 2019 can be calculated as:
Depreciation rate = 2 / Expected life
Depreciation rate = 2 / 8
Depreciation rate = 0.25
Depreciation expense = Book value x Depreciation rate
Book value = Cost - Accumulated depreciation
Book value = $171,600 - $0 = $171,600
Depreciation expense = $171,600 x 0.25 = $42,900
c. Units-of-production method depreciation expense for 2019 can be calculated as:
Depreciation rate = (Cost - Residual value) / Expected total units
Depreciation rate = ($171,600 - $15,000) / 4,500,000
Depreciation rate = $0.0352 per page
Depreciation expense = Depreciation rate x Actual units produced in 2019
Depreciation expense = $0.0352 x 649,500 = $22,840.40
2.a. Book value at the end of 2019 using the straight-line method can be calculated as:
Book value = Cost - Accumulated depreciation
Accumulated depreciation = Depreciation expense x Years used
Accumulated depreciation = $19,200 x 1
Accumulated depreciation = $19,200
Book value = $171,600 - $19,200 = $152,400
b. Book value at the end of 2019 using the double-declining-balance method can be calculated as:
Book value = Cost - Accumulated depreciation
Accumulated depreciation = Depreciation expense x Years used
Accumulated depreciation = $42,900 x 1
Accumulated depreciation = $42,900
Book value = $171,600 - $42,900 = $128,700
c. Book value at the end of 2019 using the units-of-production method can be calculated as:
Depreciation expense per unit = (Cost - Residual value) / Expected total units
Depreciation expense per unit = ($171,600 - $15,000) / 4,500,000
Depreciation expense per unit = $0.0352 per page
Depreciation expense for 649,500 pages printed in 2019 = $0.0352 x 649,500 = $22,840.40
Accumulated depreciation at the end of 2019 = $22,840.40
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In the last decade, free cash flow has been associated with special financial activities such as:
FCF is an important financial metric that has been associated with various special financial activities in the last decade, such as mergers and acquisitions, stock buybacks, dividend payments, and debt reduction. These activities can signal a company's financial health and affect its attractiveness to investors.
Over the last decade, free cash flow (FCF) has become increasingly important in financial analysis and has been associated with various special financial activities. FCF represents the cash generated by a company that is available for distribution to its stakeholders after accounting for reinvestment in the business.
One key activity associated with FCF is mergers and acquisitions (M&A). Companies with strong FCF may use it to fund acquisitions or merge with other businesses to boost growth and market share. High FCF can signal a healthy financial position, making a company an attractive target for M&A.
Another financial activity related to FCF is stock buybacks. When a company has excess FCF, it may choose to buy back its own shares from the market, thereby reducing the number of outstanding shares and increasing the value of the remaining shares. This strategy can lead to higher earnings per share and can be appealing to investors.
Dividend payments are also linked to FCF. A company with sufficient FCF can afford to pay dividends to its shareholders, which can help attract and retain investors. A steady or growing dividend payout is often seen as a sign of a company's financial health and commitment to returning value to shareholders.
Debt reduction is another activity associated with FCF. Companies with ample FCF may choose to pay down their debt, which can help improve their credit ratings and reduce interest expenses. This action can lead to a more stable financial position and enable future borrowing at more favorable terms.
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Suppose the risk-free retum is 3.1% and the market portfolio has an expected retum of 8.8% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.28. What is its expected return?
The expected return of Johnson & Johnson Corporation stock is approximately 4.7%.
To calculate the expected return of Johnson & Johnson Corporation stock, you'll need to use the Capital Asset Pricing Model (CAPM) formula, which takes into account the risk-free return, the stock's beta, and the market portfolio's expected return and standard deviation.
The CAPM formula is as follows:
Expected Return = Risk-Free Return + Beta × (Market Portfolio Expected Return - Risk-Free Return)
Given the information provided, you can plug in the values:
Risk-Free Return = 3.1%
Market Portfolio Expected Return = 8.8%
Beta of Johnson & Johnson Corporation stock = 0.28
Now, calculate the expected return using the formula:
Expected Return = 3.1% + 0.28 × (8.8% - 3.1%)
Expected Return = 3.1% + 0.28 × 5.7%
Expected Return = 3.1% + 1.596%
Expected Return ≈ 4.7% (b)
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Sale The company sold equipment for 16,000$. the cost of the equipment is 60,000$, it's accumulated depreciation is 49,000$. Record the sales transaction
The sales transaction:
Debit: Cash or Accounts Receivable (depending on how the customer paid) for $16,000
Credit: Equipment for $60,000
Credit: Accumulated Depreciation for $49,000
Credit: Gain on Sale of Equipment for $5,000
The credit to Equipment and Accumulated Depreciation is to remove the equipment from the balance sheet, as it has been sold. The credit to Gain on the Sale of Equipment is to record the profit made on the sale of the equipment. The total of the credits should equal the total amount of the debit.
When a company sells equipment, there are a few accounts that need to be adjusted to reflect the transaction. In this case, the company sold equipment for $16,000, and the cost of the equipment was $60,000, with accumulated depreciation of $49,000.
To record the sales transaction, we need to make the following journal entry:
Debit: Cash or Accounts Receivable (depending on how the customer paid) for $16,000
This debit increases the cash or accounts receivable account, depending on how the customer paid for the equipment. Since the company received $16,000 for the equipment, this amount is debited to either the cash or accounts receivable account.
Credit: Equipment for $60,000
This credit decreases the equipment account on the balance sheet. Since the equipment was sold, it is no longer owned by the company and should be removed from the balance sheet.
Credit: Accumulated Depreciation for $49,000
This credit decreases the accumulated depreciation account on the balance sheet. Accumulated depreciation represents the total amount of depreciation that has been charged against the equipment since it was acquired. When the equipment is sold, the accumulated depreciation associated with it needs to be removed from the balance sheet.
Credit: Gain on Sale of Equipment for $5,000
This credit records the gain made on the sale of the equipment. Since the equipment was sold for $16,000, but its cost was only $60,000 - $49,000 = $11,000, a gain of $5,000 was made on the sale. This gain is credited to the Gain on Sale of Equipment account, which is an income statement account that records gains or losses made on the sale of assets.
In summary, the journal entry records the cash received from the sale of the equipment, removes the equipment and its accumulated depreciation from the balance sheet, and records the gain made on the sale of the equipment.
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: (b) Given that nothing else is borrowed in the near future, the length of time it will take a government to completely eliminate its stock of debt will be entirely dependent on how much more annual repayments exceed the annual interest expenses. The interest expense portion of the debt is a function of the present stock of debt, y, and is given by i(y) = y - y2 The amount of money that the government repays to reduce its debt stock is assumed to be a fraction, a, of the present stock of debt. Repayment is done at the end of each financial year. (i) Solve for the present stock of debt, y, as a function of t. (ii) What will happen to government debt as t → 00? Justify your response.
Given that nothing else is borrowed in the near future, the length of time it will take a government to completely eliminate its stock of debt will be entirely dependent on how much more annual repayments exceed the annual interest expenses. The interest expense portion of the debt is a function of the present stock of debt, y, and is given by i(y) = y - y2. The amount of money that the government repays to reduce its debt stock is assumed to be a fraction, a, of the present stock of debt. Repayment is done at the end of each financial year.
To solve for the present stock of debt, y, as a function of t, we can use the following formula:
y(t) = (a / (1 + r)) * [1 - (1 + r) ^ (-t)] * y0
Where:
y0 is the initial stock of debt
r is the interest rate
a is the fraction of the present stock of debt that is repaid each year
t is the number of years
To find out what will happen to government debt as t → 0, we can take the limit of y(t) as t approaches 0:
lim y(t) = y0
This means that as time approaches 0, the present stock of debt will approach its initial value.
Please note that this is just an example and actual calculations may vary depending on the specific details of the government’s debt repayment plan.
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All of the following terms are associated with international trade EXCEPT:
A. Absolute advantage
B. Balance of payments
C. Balance of trade
D. Discount rate
E. Comparative advantage
The term that is not associated with international trade from the options provided is D. Discount rate. Discount rate is a term used in finance and monetary policy, and refers to the interest rate used to discount future cash flows in order to calculate their present value.
In contrast, A. Absolute advantage, B. Balance of payments, and C. Balance of trade are all terms commonly used in international trade. Absolute advantage refers to a country's ability to produce a particular good or service more efficiently than another country. Balance of payments refers to the record of all economic transactions between a country and the rest of the world over a given period of time. And balance of trade refers specifically to the difference between a country's exports and imports of goods. Finally, E. Comparative advantage is also a term associated with international trade, and refers to a country's ability to produce a good or service at a lower opportunity cost than another country.
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What is the most important factor to consider in a sites decision to participate in competing clinical trials?
A) Clinical trial business is competitive so it is acceptable to participate in as many trials as possible.
B) There is an imminent risk for struggle in prioritizing study-related activities when a site is involved in similar clinical trials for different sponsors.
C) The sponsor will be disappointed with a site's level of engagement if it turns down an opportunity to participate.
D) Competing studies are more financially rewarding to the site.
B) There is an imminent risk for struggle in prioritizing study-related activities when a site is involved in similar clinical trials for different sponsors. When a site participates in competing clinical trials, it becomes challenging to prioritize study-related activities.
The most important factor to consider in a site's decision to participate in competing clinical trials is B) There is an imminent risk for struggle in prioritizing study-related activities when a site is involved in similar clinical trials for different sponsors. Participating in multiple competing trials can lead to conflicts in scheduling, resources, and overall management. It is essential for sites to prioritize their study-related activities and ensure that they can adequately manage the workload. While sponsors may want a site to participate in their trial, it is ultimately up to the site to decide if they can effectively manage the workload and prioritize their responsibilities. Financial rewards should not be the primary consideration when deciding to participate in competing trials. Balancing the needs and expectations of different sponsors can be difficult, and this may impact the quality of the research. Thus, it is crucial to consider the potential struggle in prioritizing when deciding to participate in competing clinical trials.
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which of the following is a reason why the employment of a resource is inversely related to its price? as the price of a resource rises, the prices of the goods the resource helps produce will rise as well. thus, consumers will turn to cheaper substitute goods, increasing the amount of the resource needed to produce the more expensive good. as the price of a resource rises, the prices of the goods the resource helps produce will rise as well. thus, consumers will turn to cheaper substitute goods, reducing the amount of the resources needed to produce the more expensive good. as the price of a resource rises, the prices of the goods the resource helps produce will fall. thus, consumers will demand fewer of these goods, decreasing the amount of the resource needed to produce the cheaper good. as the price of a resource rises, the price of the goods the resource helps to produce will fall. thus, consumers will demand more of these goods, increasing the amount of the resource needed to produce the cheaper good.
The employment of a resource is inversely related to its price as the price of a resource rises, the prices of the goods the resource helps produce will also rise. Thus, consumers will turn to cheaper substitute goods, reducing the resources needed to produce the more expensive good.
This is because when the price of a resource increases, the cost of producing goods that require that resource also increases.
As a result, consumers may choose to purchase substitute goods that are cheaper, which decreases demand for the more expensive goods.
This decrease in demand for the more expensive goods results in a decrease in the resources needed to produce those goods. Therefore, the employment of a resource is inversely related to its price.
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production is efficient if the economy is producing at a point question 17 options: on the production possibilities frontier. outside the production possibilities frontier. on or inside the production possibilities frontier. inside the production possibilities frontier.
Production is efficient if the economy is producing at a point on or inside the production possibilities frontier.
The production possibilities frontier (PPF) represents the maximum amount of goods and services that an economy can produce with its given resources and technology.
Points on the PPF represent efficient production because all available resources are being used to produce goods and services. Points inside the PPF represent inefficient production because resources are being underutilized, and the economy could produce more goods and services without additional resources or technology.
On the other hand, points outside the PPF are unattainable with the current level of resources and technology, and represent production levels that can only be achieved by increasing resources or improving technology.
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