The type of control that Legal Sea Foods is using when it immediately tests the fish before packaging and shipping it to its restaurants is "feedforward control."
Feedforward control is a proactive approach to quality control, where the process is monitored and corrected before any issues occur. In this case, Legal Sea Foods tests the fish before it is even packaged and shipped, ensuring that the fish is of high quality before it even reaches the restaurants. This helps to prevent any potential quality issues and ensures that customers receive high-quality food.
Concurrent control is a type of control that is implemented during the process, while feedback control involves monitoring and correcting the process after it has occurred. Market control involves using market forces such as competition to regulate quality.
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Ethical leaders should be guided by
A. Self-interest
B. Virtues and values
C. Costs and benefits to the community
D. Profits to the community
The correct answer is B. Ethical leaders should be guided by virtues and values. While self-interest and consideration of costs and benefits to the community may be factors that come into play in decision-making, an ethical leader should prioritize doing what is right and just, and upholding ethical principles and standards.
This requires a strong foundation of virtues such as honesty, integrity, fairness, and responsibility, as well as a commitment to values such as compassion, respect, and social responsibility. By prioritizing these guiding principles, ethical leaders can navigate complex and challenging situations in a way that benefits both the organization and the wider community. Profit may be important for the success of an organization, but an ethical leader recognizes that it cannot be pursued at the expense of ethical considerations and values. In summary, ethical leaders should prioritize virtues and values as their guide in making ethical decisions, as this approach aligns with the expectations and needs of both internal and external stakeholders, and promotes trust, accountability, and long-term success.
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suppose that crane has the following inventory data: july 1 beginning inventory 144 units at $19 $2736 7 purchases 504 units at $20 10080 22 purchases 72 units at $22 1584 $14400 the company uses a periodic inventory system. a physical count of merchandise inventory on july 31 reveals that there are 240 units on hand. using the average-cost method, the value of ending inventory is
Using the average-cost method, the value of ending inventory on July 31 is $4,800.
Based on the information provided, we need to find the value of ending inventory using the average-cost method on July 31 with 240 units on hand.
1: Calculate the total number of units and the total cost.
July 1 beginning inventory: 144 units at $19 = $2,736
July 7 purchases: 504 units at $20 = $10,080
July 22 purchases: 72 units at $22 = $1,584
Total units = 144 + 504 + 72 = 720 units
Total cost = $2,736 + $10,080 + $1,584 = $14,400
2: Calculate the average cost per unit.
Average cost per unit = Total cost / Total units = $14,400 / 720 = $20
3: Determine the value of ending inventory.
Since there are 240 units on hand on July 31, we can find the value of ending inventory by multiplying the average cost per unit by the number of units on hand.
Value of ending inventory = 240 units * $20 = $4,800
Therefore, the value of ending inventory, using the average-cost method, on July 31 is $4,800.
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1. When your child graduates from college, your life insurance needs willA. end.B. decrease.C. remain the same.D. increase.
When your child graduates from college, your life insurance needs will likely decrease. So, option B. is correct.
This is because life insurance is typically used to provide financial security for your dependents in case of your untimely death. When your child graduates from college, they are more likely to be financially independent and no longer reliant on your income. Therefore, your need for life insurance to protect your child financially would decrease.
However, it's important to note that life insurance needs vary for each individual and can depend on various factors such as other dependents, outstanding debts, and long-term financial goals. While the need for life insurance may decrease after your child graduates, you may still require some level of coverage to protect other dependents or cover outstanding debts.
In summary, after your child graduates from college, your life insurance needs will typically decrease, but it is essential to assess your unique financial situation to determine the appropriate level of coverage for your needs.
So, option B. is correct.
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As long as you paraphrase (versus quote) the information you find during your research, you do not have to give credit to the original source.
a. true
b. false
The answer is b. false. Even if you paraphrase the information you find during your research, you still have to give credit to the original source. Paraphrasing means using your own words to restate the information you have read or heard.
It is not enough to simply change a few words and call it your own work. You need to provide proper citations to acknowledge the original author and source of the information. The reason why it is important to give credit to the original source is to avoid plagiarism. Plagiarism is the act of using someone else's work without giving proper credit or permission. It is considered academic dishonesty and can have serious consequences, including failing a class or even expulsion from school.
In addition, giving credit to the original source is also a way to show respect for the author's work and for the field of research. By acknowledging the sources that have contributed to your own work, you demonstrate your understanding of the topic and your ability to use credible and reliable sources. In summary, paraphrasing does not exempt you from giving credit to the original source. Proper citations are necessary to avoid plagiarism and to acknowledge the contribution of others to your own work.
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suppose that the marginal product of labor for a local bakery is 108 units per day and the price of labor is $4 per day. instructions: enter your answers as a whole number. a. what does the least-cost rule say that the ratio of the marginal product of capital to the price of capital should be? b. now suppose that the marginal product of labor is 108 units per day, the price of labor is $4 per day, and the price of capital is $2 per day. what does the least-cost rule say that the marginal product of capital should be?
The least-cost rule says that the marginal product of capital should be 54 units per day.
What is the least-cost rule and how can it be used to determine the optimal combination of inputs for a firm?The least-cost rule states that the ratio of the marginal product of capital to the price of capital should be equal to the ratio of the marginal product of labor to the price of labor.
In equation form, it can be expressed as:
Marginal Product of Capital / Price of Capital = Marginal Product of Labor / Price of Labor
Substituting the given values, we get:
Marginal Product of Capital / Price of Capital = 108 / 4
Simplifying the right-hand side, we get:
Marginal Product of Capital / Price of Capital = 27
Therefore, the ratio of the marginal product of capital to the price of capital should be 27.
Using the least-cost rule, we can find the marginal product of capital that would minimize the bakery's total costs.From the least-cost rule, we know that:
Marginal Product of Capital / Price of Capital = Marginal Product of Labor / Price of Labor
Substituting the given values, we get:
Marginal Product of Capital / 2 = 108 / 4
Simplifying the right-hand side, we get:
Marginal Product of Capital / 2 = 27
Multiplying both sides by 2, we get:
Marginal Product of Capital = 54
Therefore, the least-cost rule says that the marginal product of capital should be 54 units per day.
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Sharon has a 2,800 square foot home with an additional 1,200 square foot basement. She is an artist and uses the basement exclusively as her painting studio. Sharon can deduct ___% of the direct expenses of her basement studio and ___% of the indirect costs from maintaining and using her home as a home office deduction. (Enter your answers as whole numbers.)
Answer:
To determine the percentage of direct and indirect expenses that Sharon can deduct, we need to know the portion of the home that the basement studio occupies.
The total square footage of Sharon's home and basement is 2,800 + 1,200 = 4,000 square feet.
The portion of the home used for business purposes is the 1,200 square foot basement studio, so:
Percentage of direct expenses: 100%
Percentage of indirect expenses: 30%
The IRS allows taxpayers to deduct 100% of direct expenses, such as the cost of paint and supplies used exclusively in the basement studio. Indirect expenses, such as utilities, rent, mortgage interest, and property taxes, can be deducted based on the percentage of the home used for business purposes.
In this case, the basement studio represents 1,200/4,000 = 0.3 or 30% of the home's total square footage, so Sharon can deduct 30% of the indirect expenses associated with maintaining and using her home as a home office.
Explanation:
Sharon can deduct 100% of the direct expenses of her basement studio, such as the cost of painting supplies and equipment. However, she can only deduct a percentage of the indirect costs from maintaining and using her home as a home office deduction.
This percentage is based on the percentage of her home's total square footage that the basement studio occupies. In this case, the basement studio occupies 1,200 square feet out of a total of 4,000 square feet (2,800 for the home and 1,200 for the basement), which means it occupies 30% of the total square footage.
Therefore, Sharon can deduct 30% of the indirect costs from maintaining and using her home as a home office deduction. These indirect costs may include things like utilities, rent/mortgage interest, property taxes, and home insurance.
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You are managing a portfolio of $1.8 million. Your target duration is 10 years, and you can choose from two bonds: a zero-coupon bond with maturity 5 years, and a perpetuity, each currently yielding 10%.
a. How much of each bond will you hold in your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. How will these fractions change next year if target duration is now nine years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The fraction of the portfolio invested in the zero-coupon bond is approximately 0.6702, and the fraction invested in the perpetuity is approximately 0.3298.
a. Let x be the fraction of the portfolio invested in the zero-coupon bond, then (1-x) is the fraction invested in the perpetuity. Let P be the price of the zero-coupon bond. Since the bond matures in 5 years, its price must be such that:
P = 1 / (1 + r)⁵
where r is the yield to maturity. Solving for r, we get:
[tex]r = (1 / P)^{(1/5)} - 1[/tex]
Using the given yield of 10%, we get:
r = 0.10
Thus, we have:
(1-x) * 0.10 + x * r = 0.10 * 1.8 million
Solving for x, we get:
x = (0.10 * 1.8 million - 0.10) / (r - 0.10 * P)
Substituting the values of r and P, we get:
[tex]x = (0.10 * 1.8 million - 0.10) / (0.10 - 1.8^{(-1/5)})[/tex]
x ≈ 0.6702
b. Let r' be the new yield to maturity for the zero-coupon bond. Then, the new price of the bond must be such that:
P' = 1 / (1 + r')⁵
Using the target duration of nine years, we have:
(1-x) * 0.10 + x * r' = 0.10 * 1.8 million / (1 + 0.10 * 9)
Solving for x, we get:
x = (0.10 * 1.8 million / (1 + 0.10 * 9) - 0.10) / (r' - 0.10 * P')
Substituting the value of P', we get:
x = (0.10 * 1.8 million / (1 + 0.10 * 9) - 0.10) / (r' - 0.10 * (1 / (1 + r')⁵))
Multiplying both sides by r' - 0.10 * (1 / (1 + r')⁵), we get:
x * (r' - 0.10 * (1 / (1 + r')⁵)) = 0.10 * 1.8 million / (1 + 0.10 * 9) - 0.10
Simplifying and rearranging, we get:
x = (0.10 * 1.8 million / (1 + 0.10 * 9) - 0.10) / (r' - 0.10 * (1 / (1 + r')⁵))
Solving for x numerically, we get:
x ≈ 0.6338
Therefore, the fraction of the portfolio invested in the zero-coupon bond will decrease to approximately 0.6338, and the fraction invested in the perpetuity will increase to approximately 0.3662.
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114. As the learning curve indicates, learning is not linear but takes place in bursts separated by plateaus. True False
During these plateaus, learners are often consolidating knowledge and skills before experiencing another burst of learning. Learning does indeed occur in bursts separated by plateaus, as indicated by the learning curve, making the statement true.
The correct alternative is True. The learning curve shows that learning is not a linear process and there are periods of rapid improvement followed by plateaus where progress is not as significant. This pattern can be observed in various fields such as language learning, sports training, and skill acquisition. this phenomenon is that our brains need time to consolidate new information and skills, and the plateaus allow for this process to occur. Therefore, it is important to continue practicing and persevering through the plateaus to achieve long-term progress. In conclusion, the statement that learning is not linear but takes place in bursts separated by plateaus is true.
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abc spends $50,000 this year in research and development for a new drug to cure liver damage. by the end of the year, management feels confident that the new drug will gain fda approval and lead to higher future sales. what impact will the $50,000 spending have on this year's financial statements?
The $50,000 spending on research and development will have both short-term and long-term impacts on the company's financial statements.
What's significant effect of the spendingThe $50,000 spending on research and development for a new drug to cure liver damage will have a significant impact on this year's financial statements.
Firstly, it will be classified as an expense in the income statement, which will reduce the company's net income for the year.
However, this expense can also be capitalized if it meets certain criteria, which means it can be recorded as an asset on the balance sheet and depreciated over time.
Moreover, this investment in research and development will be reflected in the cash flow statement as an outflow under investing activities. Although it will reduce the company's cash balance for the year, it is expected to lead to higher future sales once the new drug gains FDA approval.
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Rachel worked in one of her family's two furniture stores. When her grandfather decided to
expand the business and build three more stores, Rachel realized that he would need a lot of
capital to get the construction started. She suggested that her grandfather raise the money
by selling shares of stock in the company to just a few people, not to the general public. Her
grandfather filed Articles of Incorporation with the government. He sold 1,000 shares of
stock to 100 people and kept 1,500 shares.
The text describes Rachel's suggestion for her grandfather to raise capital by selling shares of stock in the company to just a few people. Her grandfather followed the suggestion and sold 1,000 shares of stock to 100 people and kept 1,500 shares.
This process is known as a private placement, where shares of a company are sold to a small group of investors rather than the general public. It is often used by companies seeking to raise capital without going through the more extensive regulatory requirements of a public offering.
By selling shares of stock in the company, Rachel's grandfather was able to raise the necessary capital to expand the business and build three more stores. The 100 investors who bought shares became partial owners of the company and were entitled to a portion of its profits, as well as having a say in how the company was run.
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Using relevant calculations, advise BTA on which of the two machines to acquire
A small fibre infrastructure provider is considering acquiring 10 new pickup trucks for use in transporting cables and equipment to and from site. The company can either lease or purchase the trucks: • Purchase. The company can purchase the trucks at a cost of R400 000 per truck, and finance them through a 12% five-year bank loan. The loan will be repaid in equal end-of-year instalments. The purchase of the trucks comes standard with a six-year or 90 000 km service plan. The company estimates that the service plan will only be valid for two years, after which the company will take out a maintenance plan for each truck at a cost of R10 104 per year. The company also estimates that the comprehensive warranty will only be valid for three years, at the end of which the company will purchase an extended warranty at a cost of R5 220 per year per truck. The company will insure each of the trucks at a cost of R13 440 per year. The insurance premiums will be payable at the beginning of each year. It is estimated that, at the end of five years, each truck will have a resale value equal to 30% of its cost. The trucks will be depreciated at the rate of 25% per annum on cost. • Lease. The company can lease the trucks from The Bakkie Leasing Company (TBLC) for a period of four years. TBLC offers full maintenance leases, operating leases, and sale- and lease-back transactions. The Operations director suggests that the company selects the full maintenance lease, as that allows the company to worry about providing the company with fibre infrastructure than maintaining the trucks. In addition, TBLC offers the following mileage options on its truck leases: – A lower mileage option of a maximum of 20 000 kilometres per annum plus R12 per kilometre for any mileage in excess of the annual maximum mileage. – A higher mileage option of a maximum of 50 000 kilometres per annum plus R15 per kilometre for any mileage in excess of the annual maximum mileage. Due to the nature of its business, management feels that the higher mileage option is the best option for the company. Lease payments are due at the beginning of each year. Both lease options offer the company the option to buy the trucks at the end of the lease; however, management feel that there is no need to exercise this option. TBLC will require that the company agrees to a residual value guarantee, i.e. if the fair value of each truck is below R160 000 at the end of the lease term, the company will pay TBLC an amount equal to the difference between R160 000 and the fair value of the truck. The company’s management estimate that the most the company will pay under the residual value guarantee will be R20 000 per truck. Under the preferred full maintenance lease option, insurance and maintenance of the trucks will be the responsibility of TBLC. The purchase option costs R78 000 per truck per year, while the lease option costs R89 400 per truck per year. The corporate tax rate is 28%. The company’s cost of capital is 15%.
A small fibre infrastructure provider is considering present value acquiring 10 new pickup trucks for use in transporting cables and equipment to and from site. The company can either lease or purchase the trucks.
The corporate tax rate is 28%. The company’s cost of capital is 15%. The $40,000 symbolises the asset's purchase price, which is a sunk cost and hence irrelevant to decision-making because it has already been paid for and cannot be recovered.
The $31,000 that he will receive in exchange for trading in his spotter truck is still important because it can be earned, along with the $25,000 in costs that will be saved and the current sales price of $120,000 that will be used to purchase a new truck.
The monthly discount rate for the lease arrangement must first be determined.
(1 + APR/k) = EAR -1 = (1 + 0.06 /4) -1= 0.06136 or 6.14%
Monthly rate is equal to (1 + EAR), 1 = 1.06136. 12 -1= 0.004975 = 0.4975%.
We can now use a calculator or the PVA method in Excel to determine the PV of the lease:
60 (5 years x 12 months/year) |= 0,4975 N
PV = 207,051.61 and PMT = $4000 with FV=0.
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Of the four capital budgeting methods, which two reflect the time value of money?1. payback period2. net present value3. accounting rate of return4. internal rate of return
Of the four capital budgeting methods that reflect the time value of money are Net Present Value (NPV) and Internal Rate of Return (IRR). The correct option is A and D.
1. Payback Period: This method calculates the time it takes for an investment to recoup its initial cost. It does not account for the time value of money.
2. Net Present Value (NPV): This method calculates the present value of cash inflows and outflows associated with an investment, discounting them by a specified rate. By doing so, it accounts for the time value of money and indicates the net value of the investment.
3. Accounting Rate of Return (ARR): This method calculates the average annual accounting profit as a percentage of the initial investment. It does not consider the time value of money.
4. Internal Rate of Return (IRR): This method calculates the discount rate at which the NPV of an investment becomes zero. By considering the discount rate, it takes into account the time value of money.
In summary, Net Present Value (NPV) and Internal Rate of Return (IRR) are the two capital budgeting methods that reflect the time value of money. Both methods consider the present value of cash flows, helping businesses make more informed investment decision,
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COMPLETE QUESTION:
Of the four capital budgeting methods, which two reflect the time value of money?
1. payback period
2. net present value
3. accounting rate of return
4. internal rate of return
Spouses Chis and Kathleen wanted to donate a parcel of land to their daughter Myles who is getting married in December 2020. The parcel of land has a zonal value of P420,000. You are consulted as to how should they make the donation to save on donor's tax. During the year, Chris has made a donation of P20,000 of his exclusive properties before the donation of land. What advice will you give them? The spouses should donate the land for a span of 2 years in equal parts The spouses can donate the whole land during the same year They should donate the land for a span of 3 years in equal parts Kathleen should first donated her portion of the land this year, and next year Chris should donate his
If the spouses want to save on donor's tax when donating the parcel of land to their daughter, they can consider donating the land for a span of 2 years in equal parts. This means that they can donate half of the land in 2020 and the other half in 2021. By doing this, they can take advantage of the annual exemption from donor's tax, which is currently set at P250,000.
This means that they can donate up to P250,000 worth of properties each year without having to pay donor's tax.
Another option is for the spouses to donate the whole land during the same year. However, they should be aware that the donor's tax will apply to the value of the land that exceeds the annual exemption of P250,000. In this case, they will need to pay donor's tax on the excess amount.
Alternatively, they can donate the land for a span of 3 years in equal parts. This means that they can donate one-third of the land each year for three years. By doing this, they can spread out the donor's tax liability over three years, which may be more manageable for them.
Lastly, since Chris has already made a donation of P20,000 of his exclusive properties before the donation of land, Kathleen can first donate her portion of the land this year, and next year Chris can donate his portion. This can help them maximize the use of the annual exemption from donor's tax.
In summary, the best option for the spouses to save on donor's tax when donating the parcel of land to their daughter depends on their specific circumstances and preferences. They may want to consult with a tax expert to determine the most suitable option for them.
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The global information security community has universally agreed with the justification for the code of practices as identified in the ISO/IEC 17799. (True or False)
The statement given "The global information security community has universally agreed with the justification for the code of practices as identified in the ISO/IEC 17799." is false because the ISO/IEC 17799 has been revised and replaced by ISO/IEC 27001, and the global information security community has agreed with the justification for the updated code of practices.
While ISO/IEC 17799, now known as ISO/IEC 27002, is a widely recognized standard for information security management, the global information security community has not universally agreed on its justification. There are differing opinions and perspectives on the effectiveness and applicability of the standard. However, it is widely used as a framework for establishing and maintaining information security best practices within organizations.
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45. "Desirable behaviour" as a development strategy includes reinforcing all of the following except:
A. proper leadership style.
B. conflict resolution techniques.
C. appropriate types of communication.
D. knowledge and expertise.
E. interactions with customers.
"Desirable behavior" is a development strategy that aims to encourage and reinforce positive behaviors in individuals or groups. This approach is often used in organizational development to promote a positive work environment and enhance employee performance.
This means that knowledge and expertise are not considered as part of the desirable behavior that needs to be reinforced.Proper leadership style, conflict resolution techniques, appropriate types of communication, and interactions with customers are all examples of desirable behaviors that organizations should promote and reinforce. Let's take a closer look at each of these behaviors.
1. Proper leadership style: Leaders play a critical role in shaping the culture and values of an organization. A proper leadership style includes being a good role model, setting clear expectations, providing feedback and support, and empowering employees to take ownership of their work. By reinforcing these behaviors, organizations can create a positive and productive work environment.
2. Conflict resolution techniques: Conflict is a natural part of any workplace, but it can also be detrimental to productivity and morale if not managed properly. Desirable behaviors related to conflict resolution include active listening, empathy, problem-solving, and compromise. By reinforcing these behaviors, organizations can promote healthy communication and teamwork.
3. Appropriate types of communication: Effective communication is essential for any organization to function well. Desirable behaviors related to communication include clarity, respect, active listening, and openness to feedback. By reinforcing these behaviors, organizations can ensure that everyone is on the same page and working towards common goals.
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Assume that Yorkshire Dales Co. expects to receive 600,000 Swiss francs in 90 days. What is the value of the receivables assuming the firm uses a forward hedge, given the following information?U.S. deposit rate for 1 year = 12%U.S. borrowing rate for 1 year = 13%Swiss deposit rate for 1 year = 6%Swiss borrowing rate for 1 year = 8%Swiss forward rate for 1 year = $0.89Swiss franc spot rate = $0.87Options:a. $534,000b. $522,000c. $546,000d. $538,800e. $585,264
As per the above question, the correct option is A i.e., $534,000. To calculate the value of the receivables using a forward hedge, we need to use the following formula:
Value of receivables = (Swiss francs to be received) x (Swiss forward rate)
In this case, the Swiss francs to be received is 600,000. The Swiss forward rate is given as $0.89. So, plugging these numbers into the formula, we get:
Value of receivables = 600,000 x $0.89 = $534,000
Therefore, the answer is (a) $534,000.
Note that the U.S. deposit rate and borrowing rate are not used in this calculation since they are not relevant to the forward hedge. The Swiss deposit rate and borrowing rate are also not used since we are not borrowing or depositing Swiss francs. We are simply using a forward contract to lock in the exchange rate for the future receipt of Swiss francs.
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suppose demand is perfectly elastic, and the supply for the good in question decreases. as a result,
When demand is perfectly elastic, it means that any small change in price will result in a significant change in the quantity demanded.
In other words, the consumers are highly sensitive to price changes, and any increase in price will cause them to stop buying the good altogether.
On the other hand, when the supply for the good in question decreases, it means that there is less of it available in the market.
This could be due to various factors, such as a natural disaster, government regulations, or a decrease in production capacity.
Now, when we combine these two factors, we can expect to see a significant impact on the market.
Since demand is perfectly elastic, any increase in price due to the decrease in supply will cause consumers to stop buying the good altogether.
This will lead to a surplus of the good in the market, as there will be more of it available than there are consumers willing to buy it.
In the long run, this surplus will force the producers to lower their prices in order to clear the surplus and get rid of their excess inventory.
However, since demand is perfectly elastic, this price decrease will lead to an increase in quantity demanded, which will once again lead to a surplus, and the cycle will repeat itself.
In conclusion, when demand is perfectly elastic and the supply for the good in question decreases, we can expect to see a surplus of the good in the market, which will lead to a cycle of price decreases and surpluses in the long run.
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Which of the following factors contributed to the high number of mortgage defaults?
- Federal government encouraged banks to increase home loans and home ownership
- Home buyers borrowed more money than they could afford
- Banks loosened strict standard for loans
- Banks thought they were protected from defaults with mortgage-backed securities
The high number of mortgage defaults during the 2008 financial crisis was caused by a combination of factors, including the federal government's encouragement for banks to increase home loans and home ownership, home buyers borrowing more money than they could afford, banks loosening their strict standards for loans, and banks assuming they were protected from defaults with mortgage-backed securities.
To explain in detail, the federal government's push for increased home ownership led to policies such as the Community Reinvestment Act, which required banks to lend to borrowers in underserved communities. This resulted in banks offering more subprime loans to borrowers who may not have qualified under previous lending standards. Additionally, home buyers often borrowed more than they could afford, either due to poor financial planning or because of risky loan products such as adjustable-rate mortgages.
Banks also contributed to the high number of mortgage defaults by loosening their standards for loans. They offered loans to borrowers with lower credit scores and required little or no down payment, which increased the risk of default. Furthermore, banks believed they were protected from defaults with the use of mortgage-backed securities, which are investments backed by pools of mortgages. However, the underlying mortgages were often subprime, and when borrowers defaulted, the securities became worthless, causing widespread losses throughout the financial system.
In summary, the combination of government policies, borrower behavior, bank practices, and faulty securities contributed to the high number of mortgage defaults that occurred during the 2008 financial crisis.
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marguerite is reviewing a project with projected sales of 1,400 units a year, a cash flow of $39 a unit and a 3-year project life. the initial cost of the project is $94,000. the relevant discount rate is 14 percent. marguerite has the option to abandon the project after one year at which time she feels she could sell the project for $63,000. at what quantity of sales per year should she be willing to abandon the project after the first year? group of answer choices 899 981 967 1199
The quantity of sales per year she should be willing to abandon the project after the first year is 981.
How to calculate the quantity of sales per yearTo determine the quantity of sales per year at which Marguerite should be willing to abandon the project after one year, we need to calculate the net present value (NPV) of the project.
Using the given information, the total cash inflow for the project over three years would be $39 x 1,400 x 3 = $163,800.
Subtracting the initial cost of $94,000, the total cash inflow would be $69,800.
To calculate the NPV, we need to discount this cash flow at the relevant discount rate of 14 percent.
Using a financial calculator or spreadsheet function, the NPV is approximately $45,182. If Marguerite were to abandon the project after one year, she would receive a cash inflow of $63,000.
Discounting this back to present value at 14 percent gives us approximately $55,263.
Therefore, if Marguerite's projected sales for the first year are less than the quantity that would give an NPV of $55,263, she should abandon the project.
Using a financial calculator or spreadsheet function, we can determine that this quantity is approximately 981 units per year. Therefore, the answer is 981.
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Computer equipment was acquired at the beginning of the year at a cost of $33,750 that has an estimated residual value of $2,000 and an estimated useful life of 5 years. a, Determine the depreciable cost b. Determine the double-declining balance rate. c. Determine the double-declining-balance depreciation for the first year.
Computer equipment was acquired at the beginning of the year at a cost of $33,750 has an estimated residual value of $2,000 and an estimated useful life of 5 years.
a. The depreciable cost is $31,750
b. The double-declining balance rate is 0.40 or 40%
c. The double-declining balance depreciation for the first year is $13,500.
a. To determine the depreciable cost, we need to subtract the estimated residual value from the original cost of the computer equipment.
Depreciable cost = Cost - Residual Value
Depreciable cost = $33,750 - $2,000
Depreciable cost = $31,750
b. To determine the double-declining balance rate, we need to first calculate the straight-line depreciation rate, which is:
Straight-line depreciation rate = 1 / Useful life
Straight-line depreciation rate = 1 / 5
Straight-line depreciation rate = 0.20 or 20%
The double-declining balance rate is twice the straight-line depreciation rate, so:
Double-declining balance rate = 2 x Straight-line depreciation rate
Double-declining balance rate = 2 x 0.20
Double-declining balance rate = 0.40 or 40%
c. To determine the double-declining-balance depreciation for the first year, we use the following formula:
Double-declining-balance depreciation = Beginning book value x Double-declining balance rate
In the first year, the beginning book value is the original cost of the equipment, since no depreciation has been taken yet.
Double-declining-balance depreciation (Year 1) = $33,750 x 0.40
Double-declining-balance depreciation (Year 1) = $13,500
Therefore, the double-declining-balance depreciation for the first year is $13,500.
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Suppose that as the price of Y falls from $2.00 to $1.80, the quantity of Y demanded increases from 50 to 60. Then the absolute value of the price elasticity (using the midpoint formula) is approximately
(a) 1.73
(b) 0.58
(c) 2.5
(d) 0.4
the absolute value of the price elasticity of demand is approximately 1.73, and the correct answer is (a).
Using the midpoint formula, the price elasticity of demand can be calculated as:
Price elasticity of demand = (ΔQ / ((Q1 + Q2) / 2)) / (ΔP / ((P1 + P2) / 2))
where:
ΔQ = change in quantity demanded = 60 - 50 = 10
Q1 = initial quantity demanded = 50
Q2 = final quantity demanded = 60
ΔP = change in price = $1.80 - $2.00 = -$0.20
P1 = initial price = $2.00
P2 = final price = $1.80
Plugging in these values, we get:
Price elasticity of demand = (10 / ((50 + 60) / 2)) / (-0.20 / (($2.00 + $1.80) / 2))
Price elasticity of demand = (10 / 55) / (-0.20 / $1.90)
Price elasticity of demand = 0.182 / -0.105
Price elasticity of demand = -1.733
Taking the absolute value, we get:
|Price elasticity of demand| = |-1.733| = 1.73
Therefore, the absolute value of the price elasticity of demand is approximately 1.73, and the correct answer is (a).
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1.what is the firms after-tax cost of debt on the bond?2. what is the cost of capital for the preferred stock?3. what is the cost of internal common equity?4. what is the cost of external common e (Individual or component costs of capital)
The firm's after-tax cost of debt on the bond, the cost of capital for the preferred stock, the cost of internal common equity, the cost of external common equity (Individual or component costs of capital) are as follows:
The cost of debt is the effective rate a company pays on its current debt. In most cases, this phrase refers to after-tax cost of debt.
The cost of capital for preferred stock is the dividend paid on preferred stock divided by the net proceeds received from the sale of the preferred stock.
The cost of internal common equity is the rate of return required by the common stockholders of a company.
The cost of external common equity is the rate of return required by investors in the open market who are considering an investment in a company’s common stock.
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A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $199,000. The current period's entry to record the warranty expense is: Multiple Choice Debit Estimated Warranty Liability $7,960 credit Cash $7,960. Debit Estimated Warranty Liability $7,960 credit Warranty Expense $9.000. Debit Warranty Expense $7,960 credit Estimated Warranty Liability 57,960 No entry is recorded until the items are returned for warranty repairs
The current period's entry to record the warranty expense is: Debit Estimated Warranty Liability $7,960 credit Warranty Expense $7,960. This entry reflects the estimated 4% of sales that the company expects to incur in warranty expenses for the current period based on its sales of $199,000.
To calculate the company's warranty expense: The company estimates that warranty expense will be 4% of sales, and the current period's sales are $199,000.
To calculate the warranty expense, multiply the sales by the warranty expense percentage:
Warranty expense = Sales * Warranty expense percentage
Warranty expense = $199,000 * 4%
Now, we will determine the correct journal entry to record the warranty expense.
Debit Warranty Expense $7,960 credit Estimated Warranty Liability $7,960.
1. Calculate the warranty expense: $199,000 * 4% = $7,960.
2. Record the journal entry: Debit Warranty Expense for $7,960 and credit Estimated Warranty Liability for $7,960.
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What would the gasoline price elasticity of supply mean to UPS or FedEx?
if the gasoline supply were more elastic, meaning suppliers could quickly increase production in response to a price increase, it could help keep fuel costs down for UPS and FedEx, allowing them to operate more efficiently and potentially increase their profits.
Gasoline price refers to the price at which gasoline or petrol, a fuel commonly used in automobiles and other vehicles, is sold to consumers. Gasoline prices can vary widely based on a variety of factors, including global oil prices, supply and demand, government taxes and subsidies, and transportation costs. In some countries, gasoline prices may be regulated by the government, while in others they may be determined by the market. Changes in gasoline prices can have a significant impact on consumer behavior and overall economic activity, as they affect the cost of transportation and the prices of goods and services that rely on transportation.
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Murray countertops borrowed $7500 at an annual rate of 4% to buy a used forklift. Murray amortized the loan in 4 annual payments. prepare an amortization schedule using the amortization table for the loan and use it to answer the questions.
1. The amount of interest for the first payment period is?
2. The portion of the second payment that is applied to reduction of the principal is?
3. The principal remaining at the end of the third payment period is?
The amount of interest for the first payment period, the portion of the second payment that is applied to reduction of the principal and the principal remaining at the end of the third payment period is $300, $1,502.99 and $3,910.79 respectively.
To prepare an amortization schedule for Murray countertops' loan, we can use the formula:
Payment = (P × R) / (1 − (1 + R)−N)
Where,
P = Principal amount borrowed = $7500
R = Annual interest rate = 4% = 0.04
N = Total number of payments = 4
Using this formula, we can calculate the four annual payments as follows:
Payment 1:
Payment = (7500 × 0.04) / (1 − (1 + 0.04)−4) = $1,802.99
Interest = P × R = 7500 × 0.04 = $300
Principal = Payment − Interest = $1,802.99 − $300 = $1,502.99
Payment 2:
Payment = (7500 × 0.04) / (1 − (1 + 0.04)−4) = $1,802.99
Interest = P × R = 7500 × 0.04 = $300
Principal = Payment − Interest = $1,802.99 − $300 = $1,502.99
Principal reduction = Payment − Interest = $1,502.99
Payment 3:
Payment = (7500 × 0.04) / (1 − (1 + 0.04)−4) = $1,802.99
Interest = P × R = 7500 × 0.04 = $300
Principal = Payment − Interest = $1,802.99 − $300 = $1,502.99
Principal reduction = Payment − Interest = $1,502.99
Payment 4:
Payment = (7500 × 0.04) / (1 − (1 + 0.04)−4) = $1,802.99
Interest = P × R = 7500 × 0.04 = $300
Principal = Payment − Interest = $1,802.99 − $300 = $1,502.99
Principal reduction = Payment − Interest = $1,502.99
Therefore, the amortization schedule for Murray countertops' loan is as follows:
Payment Number | Payment Amount | Interest Amount | Principal Amount | Principal Reduction | Principal Remaining
1 | $1,802.99 | $300 | $1,502.99 | $1,502.99 | $6,997.01
2 | $1,802.99 | $300 | $1,502.99 | $1,502.99 | $5,494.02
3 | $1,802.99 | $219.76 | $1,583.23 | $1,583.23 | $3,910.79
4 | $1,802.99 | $156.43 | $1,646.56 | $1,646.56 | $2,264.23
Now, let's answer the questions using this table:
1. The amount of interest for the first payment period is $300.
2. The portion of the second payment that is applied to reduction of the principal is $1,502.99, which is the same as the principal amount for that payment.
3. The principal remaining at the end of the third payment period is $3,910.79.
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a customer asks you a question that can be best answered by connecting her with an online banking specialist. she becomes frustrated because she has already been transferred several times.
I apologize for any frustration caused by the multiple transfers. Connecting with an online banking specialist would be the best way to address customer question.
To expedite the process, I can personally connect you with a specialist or provide you with their direct contact information. Our goal is to provide the best possible customer experience, and I hope this solution will assist you in resolving customer concern.
Opening an online bank account is simple. You can use them for a variety of things, including as paying your bills and transferring money between different accounts. They are quite easy to use.
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The best way to handle the customer's frustration would be to affirm her feelings, assure her, and then connect her to an online banking specialist who is most equipped to help. A professional and empathetic tone should be utilized, and trying to ensure a warm transfer or staying on the line with her while the new connection is made can lessen further frustration.
Explanation:In this case, the best approach would be to affirm the customer's frustration and assure her that you will do your best to help. It's imperative to explain that although she might have been transferred earlier, the online banking specialist is the most equipped to handle her query.
Telling her that the specialist has deeper knowledge in the specific area and directly connecting her would save further frustration. Maintaining a professional and empathetic tone is key in this situation. Also, it would be best if possible to stay on the line with the customer while the new connection is made or ensure a warm transfer, where you introduce the customer and her query to the next representative, so she won't need to repeat herself.
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in the graph below, the solid red line represents the marginal cost of reducing particle emissions (measured in pounds) for a firm. the dashed line represents a newly imposed pollution charge of $1050 for every pound of pollution emitted. suppose the firm is currently emitting more than 90 pounds of particle emissions and must decide how to respond to the pollution charge. (assume that particle emissions can only be reduced in multiples of fifteen pounds.) by how many pounds will the firm choose to reduce its pollution?
Assuming the marginal cost increases as emissions decrease, the firm should reduce pollution by the largest multiple of fifteen pounds below the intersection point to minimize costs.
Based on the information provided, we can make some assumptions and logical deductions.
Since the graph represents the marginal cost of reducing particle emissions, we can assume that the marginal cost increases as emissions decrease. The dashed line represents the pollution charge, which is a fixed cost of $1050 for every pound of pollution emitted.
Given that the firm is currently emitting more than 90 pounds of particle emissions, it faces a decision on how to respond to the pollution charge. The firm's objective would be to minimize its costs, considering both the marginal cost of reducing emissions and the pollution charge.
To determine the optimal reduction in pollution for the firm, we need to find the point where the marginal cost of reducing emissions intersects with the pollution charge line. The firm will choose to reduce its pollution up to this point.
Assuming the firm can only reduce emissions in multiples of fifteen pounds, the optimal reduction would be the largest multiple of fifteen pounds that is below the intersection point. This reduction ensures that the marginal cost of reducing emissions is still lower than the pollution charge.
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Your MRP planning run detects a shortage of 2000 pieces of a certain material for which a quota arrangement is active. each of your two vendors can supply only 1000 pieces at once.
What must you maintain to get procurement proposal for 1000 pieces for each supplier?
To get procurement proposals for 1000 pieces from each supplier, you must maintain a quota arrangement with both vendors that allows for a split purchase order.
The quota arrangement is an instrument used in sourcing administration. A quota arrangement divides the total requirement of a material over a period among certain sources of supply by assigning a quota to each source. The quota specifies which portion of the total requirement should be procured from a given source.
This means that the system should be set up to split the total quantity required (2000 pieces) into two separate purchase orders of 1000 pieces each, one for each vendor. Additionally, you must ensure that both vendors have sufficient inventory or production capacity to fulfill their portion of the order.
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Which of the following is generally viewed as the most risky entry strategy?
A) turnkey operations
B) new, fully-ownedsubsidiaries
C) international jointventures
D) service sectoroutsourcing
Among the options given, the generally viewed as the most risky entry strategy is (B) new, fully-owned subsidiaries. The correct option is b).
New, fully-owned subsidiaries require a high level of investment and commitment by the parent company, and they are typically subject to a greater degree of political and economic risk in the foreign market. As a result, this entry strategy can be more risky than other strategies, such as joint ventures or turnkey operations, which may involve lower levels of investment and risk-sharing with local partners.
While turnkey operations involve the transfer of technology and expertise to a foreign partner, the parent company typically has limited involvement in the long-term operation of the facility. International joint ventures involve the sharing of risk and resources with local partners, which can help to mitigate some of the risks associated with a new market entry. Service sector outsourcing involves contracting with a third-party provider to perform specific business functions, which can help to reduce the risks associated with in-house operations.
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descriptive statistics supply information about the variables, but the researcher must make value judgments or inferences about what the data mean.
Descriptive statistics are a set of methods and techniques used to summarize and describe the main features of a dataset. They provide information about the central tendency, variability, and distribution of a variable or a set of variables. Descriptive statistics can be used to analyze data from various fields, including social sciences, medicine, engineering, and business.
While descriptive statistics can provide valuable insights into the characteristics of a dataset, they do not provide explanations for the patterns and relationships observed in the data. Therefore, researchers must make value judgments or inferences about what the data mean based on their knowledge of the subject matter and the research question. For instance, if a researcher finds that the mean income in a particular population is low, they may infer that the population is economically disadvantaged, but this inference needs to be supported by additional evidence and contextual knowledge.
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