Answer:
The company should hire 2 min in television and 3 min in radio.
Explanation:
This is a maximization problem. The first thing to do is to set the main equation given and to define the constrainsts. In this case the constraints are: 3x+1y ≤ 10, x ≥ 0, y ≥ 0 x and y are integers (since you only can hired entire minutes). An interation process with possible x,y combinations is the proper approach. If you do not use solver (Excel microsoft), you have to prove every x,y possible combination and visually identify the max outcome for revenues
To find the values of x and y that maximize the firm's revenue while staying within the advertising budget, we can solve the quadratic revenue function subject to the advertising budget constraint. The constraint can be rewritten as an equation and expressed in terms of y. The derivative of the revenue function can be set to zero to find the optimal values of x and y.
Explanation:To maximize the firm's revenue while staying within its advertising budget, we need to find the values of x and y that maximize the revenue function f(x, y) = -2x^2 - y^2 + xy + 8x + 3y subject to the constraint 3000x + 1000y ≤ 10000. This is an optimization problem that can be solved using calculus and the method of Lagrange multipliers.
First, let's write the constraint as an equation: 3000x + 1000y = 10000. We can rearrange this to simplify: 3x + y = 10. We can then solve this equation for y: y = 10 - 3x.
Next, we substitute this expression for y into the revenue function. We get a quadratic function in terms of x: f(x) = -2x^2 - (10 - 3x)^2 + x(10 - 3x) + 8x + 3(10 - 3x).
Now, we can take the derivative of f(x) with respect to x, set it equal to zero, and solve for x. By substituting this value of x back into the equation y = 10 - 3x, we can find the corresponding value of y. These values of x and y will represent the maximum revenue while staying within the advertising budget.
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Suppose that Taggart Transcontinental currently has no debt and has an equity cost of capital of 10%. Taggart is considering borrowing funds at a cost of 6% and using these funds to repurchase existing shares of stock. Assume perfect capital markets. If Taggart borrows until they achieved a debt -to-value ratio of 20%, then Taggart's levered cost of equity would be closest to:A) 8.0%B) 9.2%C) 10.0%D) 11.0%
Answer:
Option (D) is correct.
Explanation:
We have to use MM proposition that cost of equity will change itself in such a manner so that it can take care of its debt.
Cost of equity:
= WACC of all equity firm + (WACC of all equity - Cost of debt ) × (Debt -to-equity ratio)
At the beginning, when there was no debt,
WACC = cost of equity = 10%
Levered cost of equity:
= 10% + ( 10% - 6%) × 0.2
= 10.8%
Therefore, Taggart's levered cost of equity would be closest to 11%.
Under perfect capital markets, Taggart's levered cost of equity after borrowing at a 6% interest rate with a debt-to-value ratio of 20% would be 11%. This result is obtained using the Modigliani-Miller theorem, which adjusts the unleveraged cost of capital with the debt-induced financial risk.
Explanation:The levered cost of equity represents the returns required by equity investors after considering the financial risk associated with the firm's debt. To calculate the new levered cost of equity after borrowing at a certain interest rate, the Modigliani-Miller theorem is usually used.
The formula is Relevered = Reunlevered + (Reunlevered - Rd) *(Debt/Equity). In this case, Reunlevered (unleveraged cost of capital) is 10%, the borrowing cost (Rd) is 6%, and Debt/Equity ratio is 0.25 (because Debt/Asset ratio given is 20%, hence in a scenario with perfect capital markets, Debt/Equity becomes 20%/80%, which equals 0.25).
Applying these values to the formula gives Relevered = 10% + (10% - 6%) * 0.25 = 11%. Therefore, the levered cost of equity is 11% making the correct choice D) 11.0%.
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Prices for many goods are higher in the city of Shenzhen on the mainland of China than in the city of Hong Kong. An article in the Economist notes that "individuals can arbitrage these differences through what effectively amounts to smuggling." Source: "Restrictions on Travel to Hong Kong by Shenzhen Residents," Economist, April 13, 2015. The article means that individuals canA. A buy the product in Hong Kong and sell it in Shenzhen so eventually the price in Shenzhen will decrease and the price in Hong Kong will increase. B. buy the product in Shenzhen and sell it in Hong Kong so eventually the price in Hong Kong will decrease and the price in Shenzhen will increase C. rely on differences in demand for the product to even out the price changes. D. buy the product elsewhere in the world and sell t in these two markets Ultimately, you would expect the result of individuals engaging in this arbitrage to be similar
Answer:
A) buy the product in Hong Kong and sell it in Shenzhen so eventually the price in Shenzhen will decrease and the price in Hong Kong will increase
Explanation: when the price of the product in Shenzhen reduces due to the low priced product being sold in same place the high priced is sold, this would even out the demands and the price of that in Shenzhen would be dragged down to be able to compete with that of the low priced.
An acceptance is valid if:
Select one:
a. The intent is subjectively manifested
b. There are material changes from the offer
c. The acceptance is properly communicated to the buyer
d. The communication by nonauthorized means is effective when received
Answer:
The correct answer is A
Explanation:
Acceptance is the term which is defined in the law as the act or a promise on the part of the offeree, that indicating or stating the willingness to be bound by the terms and conditions (legally) mentioned in the offer.
For acceptance to be valid or essential, the requirement is that both the parties had a subjective perspective involved in performing the manifesting their assent.
Therefore, it will be valid is the intent is subjectively manifested.
The Lotus Point Condo Project will contain both homes and apartments. The site can accommodateup to 10,000 dwelling units. The project must contain a recreation project: either a swimming-tenniscomplex or a sailboat marina, but not both. If a marina is built, then the number of homes in theproject must be at least triple the number of apartments in the project. A marina will cost $1.2 million,and a swimming-tennis complex will cost $2.8 million. The developers believe that each apartment willyield revenues with a net present value of $48,000, and each home will yield revenues with a net presentvalue of $46,000. Each home (or apartment) costs $40,000 to build. Formulate an integer program tohelp Lotus Point maximize profits.
The Lotus Point Condo Project can be interpreted as an integer programming problem for maximizing profits. The problem can be modeled with variables representing homes, apartments, and the decision to build either a marina or a swimming-tennis complex. The resulting linear equation and constraints represent the profit and the project requirements respectively.
Explanation:The problem can be understood as a linear integer programming problem. In this type of problem, we are aiming to maximize or minimize a linear function, subject to certain linear constraints. Our function in this case is the profit, which we aim to maximize.
The variables for this integer program could be defined as follows:
H: Number of homes to be built in the project A: Number of apartments to be built in the project M: Binary decision variable for building marina (1 if yes, 0 if no) S: Binary decision variable for building swimming-tennis complex (1 if yes, 0 if no)
The objective function, which represents the profit, can be represented as follows:
Maximize Z = 46,000H + 48,000A - 40,000(H + A) - 1,200,000M - 2,800,000S
The constraints can be defined as follows:
H + A <= 10,000: The total number of dwelling units cannot exceed 10,000. H >= 3A*M: If a marina is built, the number of homes must be at least triple the number of apartments. M + S = 1: Either a marina or a swimming-tennis complex must be built, but not both.Learn more about Integer Programming here:
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Doyle’s Candy Company is a wholesale distributor of candy. The company services groceries, convenience stores and drugstores in a large metropolitan area. Small but steady growth in sales has been achieved over the past few years while candy prices have been increasing. The company is formulating I its plans for the coming fiscal year. Presented below are the data used to project the current year’s after-tax net income of $264960.Average Selling Price $9.60 per boxAverage Variable Cost:Candy Production $4.80 per boxSelling expense .96 per boxTotal $5.76 per boxAnnual fixed costs:Selling $384,000Administrative 672,000Total 1056000Expected annual sales volume 390,000 boxesTax Rate 40%Manufactures of candy have announced that they will increase prices of their products an average 15 percent in the coming year due to increaseIn raw materials (sugar, cocoa, peanuts, etc.) and labor costs. Doyle’s candy company expects that all other costs will remain at the same rates or levels as the current year.
Required:
A. What is Doyles Candy Company’s break-even point in boxes of candy for the current year?B. What selling price per box must Doyle’s Candy Company change to cover the 15 percent increase in variable production costs of candyAnd still maintain the current contribution margin percentage?C. What volume of sales in dollars must Doyle’s Candy Company achieve in the coming year to maintain the same net income after taxes as projected for the current year if the selling price of candy remains at $9.60 per box and the variable production costs of candy increase 15 percent?
Answer:
a) 275,000 boxed per year
b) sales price of $ 11.04
c) sale volume in dollars 4.830.967,74
Explanation:
selling price: $ 9.60
Variable cost: $ 5.76
Contribution: $ 3.84
Contribution Ratio: 3.84 / 9.60 = 40%
[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
1,056,000 / 3.84 = 275,000
If Variable cost increase by 15%
To keep contribution ratio at 40% then selling price should be:
(X - 5.76 x 1.15) / X = 0.40
X = $ 11.04
To keep the same income but without changing price:
current income: (sales x contribution less fixed cost)
(390,000 x 3.84 - 1,056,000) = 441,600
contribution: (9.60 - 5.76 x 1.15) / 9.60 = 0.31
[tex]\frac{Fixed\:Cost + Target \: Income}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
(1,056,000 + 441,600)/ 0.31 =
1.497.600 / 0.31 = 4.830.967,74
For the current year, Doyle’s Candy Company's break-even point is 184,211 boxes. In order to cover a 15% increase in variable production costs while maintaining the current contribution margin percentage, the selling price per box would need to be $9.20. The company would need to significantly increase its sales volume within the coming year to maintain the same after-tax net income if costs increase.
Explanation:A. The break-even point is determined by the equation Total Fixed Costs / (Selling Price per unit - Variable Cost per unit). In this case, it would be calculated as $1,056,000 / ($9.60 - $5.76) resulting in 184,210.53 boxes. However, as it is not feasible to sell a fractional box, we would round up to 184,211 boxes.
B. To maintain the current contribution margin percentage while covering a 15 percent increase in variable production costs, we need to firstly determine the new variable cost which is $4.80 * 115% = $5.52. Then, the new selling price would be calculated as $5.52 / (1 - Current Contribution Margin %), where Current Contribution Margin % = ($9.60 - $5.76) / $9.60 = 40%. Therefore, the new selling price = $5.52 / 0.6 = $9.20.
C. To maintain the same net income after taxes, Doyle's Candy Company would need to achieve higher pre-tax income due to the increased cost of goods sold. This means that they would need to sell more boxes even if the selling price stays the same. The new volume of sales, in dollar terms, would be calculated as follows: (Total Fixed Costs + Desired After-tax Net Income / (1 - Tax Rate)) / (Selling Price - New Variable Cost).
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When a good with a perfectly inelastic demand is taxed, the incidence of the tax is borne:
A. by consumers and producers equally.
B. mostly by producers.
C. entirely by consumers.
D. mostly by consumers.
E. entirely by producers.
Answer:
Option (C) is correct.
Explanation:
The goods with a perfectly inelastic demand with any changes in the prices of the commodities are generally have no effect on the demand for a good. This means that if there is an imposition of tax on the good with a perfectly inelastic demand then this will lead to increase the price level by the full amount and therefore, the incidence of this tax is fully borne by the consumers.
Higher rates of real per capita gross domestic product (GDP) are negatively correlated with:
Answer:
unemployment
Explanation:
Okun' law is an association that describes unemployment in a country based on the observation of a decline in Real GDP in the country. According to the interval and related model, every 1% increase in unemployment leads to a 2% deviation from the country's GDP potential. The difference model explains the relationship between unemployment and real GDP changes in the quarters. The law was named Arthur Okun in 1962, recognizing these relations. Arthur Okun, who examines the growth Real GDP and unemployment figures of the American economy, has found that unemployment rates have declined in those years when the real growth rate is high, and, on the contrary, the rise in unemployment rates has been low or even negative. This means the negative correlation between them. Arthur Okun's statement of the link between real growth and unemployment in a formula has led to this idea being later called Okun's law. Okun's law is that when real growth rates exceed 2.25%, increasing real incomes by more than 2.25% will result in a 0.5% drop in unemployment. For example, in a year when national income increased by 5.25%, unemployment declined by 1.5% (5.25% to 2.25% = 3% and 3% / 2% = 1.5%).
Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion.
a. If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity to consume (MPC) to be?
b. Now suppose the economists allow for crowding out. Would their new estimate of the MPC be larger or smaller than their initial one?
Answer:
Consider the following calculations
Explanation:
a. MPC = dC/dY =30-10/30 =2/3
b. MPC will be smaller because the MPC relies heavily upon the real (inflation-adjusted) rate of interest.And crowding out causes increase in interest rate. A high rate of interest causes spending in the future to become increasingly attractive due to the intertemporal substitution effect on consumption.
Because a rate increase primarily decreases the present value of lifetime wealth, the consumer relies on becoming a lender to offset this effect. In a two period model, as S(1+r) increases with the interest rate, so does future income[C= -(1+r)c +we(1+r)]. Therefore, every dollar of current income spent by the consumer is 1(1+r) dollars the consumer will not be able to spend in the second period.
Crane Company has 504000 shares of $10 par value common stock outstanding. During the year Crane declared a 16% stock dividend when the market price of the stock was $34 per share. Three months later Crane declared a $0.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by
Answer:
$3,092,544
Explanation:
The computation of the decreased in retained earning is shown below:
= (Number of shares × stock dividend percentage × market price of the stock) + (Number of shares × current year dividend × cash dividend)
= (504,000 × 0.16 × $34) + (504,000 × 1.16 × $0.60)
= $2,741,760 + 350,784
= $3,092,544
Simply we added the two amount based on before 3 months later and after 3 months later
The 1.16 is computed below:
= 1 + 0.16
= 1.16
Jones Industries received $800,000 from issuing shares of its common stock and $700,000 from issuing bonds. During the year, Jones Industries also paid dividends of $90,000. How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
A newspaper publisher uses roughly 950 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead time is 7 workdays. What is the appropriate reorder point quantity, given that the company desires a service level of 90 percent, if that stockout risk for various levels of safety stock is as follows: 1,500 feet, .10; 1,600 feet, .05; 2,400 feet, .02; and 2,600 feet, .01?
Answer:
Consider the following calculation
Explanation:
Given daily demand d= 870 feet
Lead time L = 6 days
Reorder point = Demand during lead time + Safety stock
Demand during lead time = dL = 870*6 = 5220
Safety stock = 1900 as service level ois 95 percent. So stockout risk = 1-0.95 =0.05.Given at stockout risk 0.05
safety stock = 1900
Reorder point = 5220 + 1900 = 7120
The appropriate reorder point quantity is calculated by considering the lead time and desired service level, as well as the stockout risk and safety stock levels. The calculations for the given scenario result in different reorder point quantities based on the chosen safety stock level and its associated stockout risk.
Explanation:To determine the appropriate reorder point quantity, we need to consider the lead time and the desired service level. The reorder point is the level at which we should place an order to replenish our stock. It is calculated by multiplying the average demand during the lead time by the desired service level and adding the safety stock.
In this case, the average demand during the lead time is 950 feet per day multiplied by 7 days, which gives us 6650 feet. Given the stockout risk for various levels of safety stock and their corresponding probabilities, we can calculate the appropriate reorder point quantity.
If the safety stock is 1,500 feet with a stockout risk of 0.10, the reorder point quantity would be 6650 + 1500 = 8150 feet.If the safety stock is 1,600 feet with a stockout risk of 0.05, the reorder point quantity would be 6650 + 1600 = 8250 feet.If the safety stock is 2,400 feet with a stockout risk of 0.02, the reorder point quantity would be 6650 + 2400 = 9050 feet.If the safety stock is 2,600 feet with a stockout risk of 0.01, the reorder point quantity would be 6650 + 2600 = 9250 feet.Based on these calculations, the appropriate reorder point quantity would vary depending on the desired stockout risk and the corresponding safety stock level.
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An investment banker has recommended a $100,000 portfolio containing assets B, D, and F. $20,000 will be invested in asset B, with a beta of 1.5; $50,000 will be invested in asset D, with a beta of 2.0; and $30,000 will be invested in asset F, with a beta of 0.5. The beta of the portfolio is ________.
Answer:
1.45
Explanation:
Investment:
Stock B = $20,000
Stock D = $50,000
Stock F = $30,000
Total investment = $20,000 + $50,000 + $30,000
= $100,000
Weight:
= Investment ÷ Total investment
Therefore,
Weight of Stock B:
= $20,000 ÷ $100,000
= 0.2
Weight of Stock D:
= $50,000 ÷ $100,000
= 0.5
Weight of Stock F:
= $30,000 ÷ $100,000
= 0.3
Beta of the portfolio:
= (Weight of Stock B × Beta) + (Weight of Stock D × Beta) + (Weight of Stock F × Beta)
= (0.2 × 1.5) + (0.5 × 2.0) + (0.3 × 0.5)
= 0.30 + 1 + 0.15
= 1.45
To compute the portfolio beta, multiply the beta of each asset by its proportion of the total investment, then sum the values. In this instance, the beta for the investment portfolio containing assets B, D, and F is 1.45.
Explanation:The beta of a portfolio is the average of the betas of the individual investments proportionate to their respective share of the total investment. To calculate the beta for the combination of assets B, D, and F, we multiply the beta of each asset by its proportion of the total investment (!20,000/$100,000 for asset B, $50,000/$100,000 for asset D, and $30,000/$100,000 for asset F), and sum these values.
The calculations would look like this:
Asset B: (1.5 * 20,000/100,000) = 0.3Asset D: (2.0 * 50,000/100,000) = 1Asset F: (0.5 * 30,000/100,000) = 0.15Adding these together, the beta of this investment portfolio would be 0.3 + 1 + 0.15 = 1.45
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Cybertron Inc. was accused of deceptive pricing. Which of the following explains what most likely occurred? A. Cybertron refused to advertise sale prices in the local paper. B. Cybertron sold only defective products at the advertised price. C. Cybertron advertised a large price reduction from a phony high retail list price. D. Cybertron misrepresented a product's features in an ad. E. Cybertron used misleading labeling..
Answer:
The aanwser is !!!!!!study nimrod!!!!!
Explanation:
go freaking study instead of partying and getting or reciving bj's
ps iknow i cant spell its a finger thing
Cybertron Inc. most likely advertised a large price reduction from a phony high retail list price which constitutes deceptive pricing, prohibited by the FTC which ensures the truthfulness of advertising claims and protects consumers from economic injury.
The student's question revolves around the likely scenario in which Cybertron Inc. was accused of deceptive pricing. Among the provided options, C. Cybertron advertised a large price reduction from a phony high retail list price is the one that most accurately describes what likely occurred if Cybertron Inc. was involved in deceptive pricing. This scenario aligns with known deceptive practices where sellers inflate the original prices of products to make discounts seem more substantial than they are, which can mislead consumers.
Deceptive pricing can significantly impact consumer trust and violates advertising standards set by regulatory bodies such as the Federal Trade Commission (FTC). The FTC requires all factual claims about product performance to be truthful and substantiated, and it prohibits advertisements that are untrue or lead to economic injury for consumers. Engaging in such deceptive practices can have serious legal repercussions for a company.
Louise owned a house next to Robert's house. Robert made a contract with Midcity Painters to paint his house. The painters arrived to paint Robert's house, but mistakenly painted Louise's house. She saw the painters at work and made no comment. Later, Midcity Painters sent Louise a bill for painting her house. She claimed that she was not liable because she had not made any contract with them. Is this a valid defense?
Answer:
Louise's defense is not valid. She was involved in an Implied-in-fact contracts
Explanation:
Implied-in-fact Contracts
This is a contract that is legally enforceable as a result of an agreement made by conduct and from assumed intentions. These conducts and assumed intentions are derived from the relationship among the involved parties.
When Louise saw Midcity Painters painting her house and made no comments, she became involved a implied-in-fact contract. The conduct of Midcity to paint her house and her conduct to be quiet infact formed a legally enforceable contract.
Louise, therefore, liable. However, due to the lack of contractual terms such as payment for the job done, Louise will be liable for the nominally or typically acceptable rate for such a job done. For instance, if a normal house paint job costs $2000, Louise is liable to pay $2000 for the implied contract.
This situation involves the legal principle of Quasi Contracts. Although Louise did not formally agree to the contract, she may be held liable for payment, depending on the jurisdiction, her knowledge and the magnitude of the mistake made by Midcity Painters.
Explanation:From the legal perspective, this situation falls under the principle of Quasi Contract, or an implied contract. Although Louise did not formally agree to a contract with Midcity Painters, she took advantage of their services without objecting while the work was in progress. Therefore, the law might see her as unjustly enriched at the expense of Midcity Painters.
However, whether this defense is valid or not depends on the specific jurisdiction and the court's interpretation of the situation. Some jurisdictions hold that silence does not constitute acceptance, while others say that if Louise knew the work was being done mistakenly and did not prevent it, she could be held liable for payment.
Moreover, the court might consider the scope of the mistake made by Midcity Painters. If it was a minor mistake and Louise knew about it and let them continue, she may be held accountable. However, if it was a major mistake, the law might absolve her from liability.
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Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15 comma 000 units. Southeastern estimates its annual holding cost for this item to be $25.00 per unit. The cost to place and process an order from the supplier is $75.00. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) What is the economic order quantity? 300 units (round your response to the nearest whole number). b) What are the annual holding costs? $ 3750 (round your response to the nearest whole number). c) What are the annual ordering costs? $ 3750 (round your response to the nearest whole number). d) What is the reorder point? 100 units (round your response to the nearest whole number).
Answer:
a. 300 units
b. $3,750
c. $3,750
d. 100 units
Explanation:
a. The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
= [tex]\sqrt{\frac{2\times \text{15,000}\times \text{\$75}}{\text{\$25}}}[/tex]
= 300 units
The number of orders would be equal to
= Annual demand ÷ economic order quantity
= 15,000 ÷ 300 units
= 50 orders
And, The average inventory would equal to
= Economic order quantity ÷ 2
= 300 units ÷ 2
= 150 units
The total cost of ordering cost and carrying cost equals to
b. Carrying cost = average inventory × carrying cost per unit
= 150 units × $25
= $3,750
c. Ordering cost = Number of orders × ordering cost per order
= 50 orders × $75
= $3,750
d. The reorder point would be
= Annual demand ÷ number of days × lead time
= 15,000 ÷ 300 days × 2 working days
= 100 units
The Economic order quantity of the southern bell stocks is 300 units, the annual holding costs are $ 3,750, the annual ordering costs are $3,750 and the reorder point is 100 units.
What is EOQ?EOQ is a computation meant to identify the ideal order quantity for firms to minimize shipping expenses, warehousing space, excess inventory, and overstock charges. It is also known as the 'optimum lot size.'
EOQ = [tex]\sqrt{ \frac{2\times\, \rm\,Annual\,demand\times\, \rm\,ordering\, \rm\,cost}{ \rm\,Carrying\, \rm\,cost}[/tex]
In this case, we have to calculate EOQ, annual holding cost, annual ordering cost, and reorder point:
a. Economic Order Quantity =
= [tex]\sqrt \dfrac{2\times\,15,000\times\,75}{25}[/tex]
= 300 units.
b. Annual holding cost:
Average inventory =
[tex]\dfrac{ \rm\,EOQ}{2}\\\\= \dfrac{300}{2}\\\\= 150\\[/tex]
Annual holding cost = Average inventory × Carrying cost per unit
= 150 × $25
= $ 3,750
c. Annual ordering costs:
Number of orders:
[tex]\dfrac{\rm\,Annual \,demand}{\rm\,EOQ}\\\\= \dfrac{15000}{300}\\\\= 50 \, \rm\,Orders[/tex]
Annual ordering cost = Number of orders × ordering cost per order
= 50 × $75
= $ 3,750
d. Reorder point
= [tex]\dfrac{ \rm\,Annual\,demand}{\rm\,Number\,of\,days}\times\, \rm\,lead\,time[/tex]
= [tex]\dfrac{15,000}{300}\times\,2\\\\= 100\rm\,units\[/tex]
Hence, the answer for a. EOQ = 300 Units, b. Annual holding costs = $3,750, c. Annual ordering costs = $ 3,750 , d. Reorder point = 100 units.
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Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1,2017 at 96.1 plus accrued interest. The bonds were dated April 1, 2017 with interestpayable April 1 and October 1. Bond discount is amortized semiannually on astraight-line basis. On April 1, 2018, $1,200,000 of these bonds were converted into500 shares of $20 par value common stock. Accrued interest was paid in cash at thetime of conversion.
What should be the amount of the unamortized bond discounton April 1, 2018 relating to the bonds converted?
A. $46,800.
B. $43,200.
C. $23,400.
D. $44,400.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
When a negative externality exists and the government does not intervene, which point best identifies the market equilibrium?
Answer and Explanation:
When a negative externality exists, and the government does not intervene, then the market equilibrium is where Internal demand is equal to the internal cost and socially optimal equilibrium with negative externality exist where the internal demand is equal to the social cost.
An investment has the following characteristics:ATIRRP: After-tax IRR on total investment in the property: 9.0%BTIRRE: Before-tax IRR on equity invested: 17%BTIRRP: Before-tax IRR on total investment in the property: 12%t: Marginal tax rate: 0.40What would be the break-even interest rate (BEIR), at which the use of leverage neither favorable nor unfavorable? (A)(A) 15.0%(B) 20.0%(C) 22.5%(D) 28.3%
Answer:
Option (A) is correct.
Explanation:
Given that,
After-tax IRR on total investment in the property = 9.0%
Before-tax IRR on equity invested = 17%
Before-tax IRR on total investment in the property = 12%
t: Marginal tax rate = 0.40
Break Even Interest rate (neither favorable nor unfavorable):
= After tax IRR on total investment ÷ (1 - Tax rate )
= 9% ÷ (1 - 0.40)
= 9% ÷ 0.60
= 15%
Which of the following is NOT a valid condition for denying a patent application?Select one:
a.The "invention" sought to be patented is actually a living creature.
b. The invention was known or used by others in this country, or patented or described in a printed publication in this or a foreign country.
c. The inventor has abandoned the invention.
d. He did not himself invent the subject matter sought to be patented
The answer is option a, which states that an invention sought to be patented is a living creature. Since Diamond v. Chakrabarty, genetically modified organisms can be patented, making option a incorrect as a reason for denial.
The correct answer to the student's question about a valid condition for denying a patent application is option a: The "invention" sought to be patented is actually a living creature. After the 1980 Diamond v. Chakrabarty case, it became possible to patent genetically modified organisms, meaning that living creatures, if altered by humans, could be subject to a patent. This decision allowed for the patenting of genetically modified bacteria, plants, and even specific genes, as long as they met the criteria of being distinct, new, and not naturally occurring.
Options b, c, and d represent legally recognized reasons for denying a patent. In option b, if an invention was previously known or documented, it is not considered novel and therefore not patentable. Option c, abandonment, refers to a situation where the inventor stops pursuing the patent without a good reason, and in option d, one must be the true inventor to apply for a patent. However, none of these options represents a barrier to entry that is both a valid reason for denying a patent and directly government-enforced.
S'Round Sound, Inc. reported the following results from the sale of 24,000 units of IT-54:
Sales $528,000
Variable manufacturing costs 288,000
Fixed manufacturing costs 120,000
Variable selling costs 52,800
Fixed administrative costs 35,200
Rhythm Company has offered to purchase 3,000 IT-54s at $16 each. Sound has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost" of production is $17.
Which of the following correctly notes the change in income if the special order is accepted?
$3,000 decrease.
$3,000 increase.
$12,000 decrease.
$12,000 increase.
None of these.
The special order will result in an increase in income of $12,000. The cost calculation only considers the variable manufacturing costs since they change with production level. Fixed costs were not considered because they do not depend on the level of output.
Explanation:The special order should result in an increase in income, not a decrease. To calculate this, consider only the variable costs tied to production. When calculating the actual cost for making the IT-54, ignore the fixed costs since they do not change with the level of output. Here, variable manufacturing cost per unit is calculated by dividing total variable manufacturing cost by the number of units which is $288,000/24,000 = $12. Now, if we sell it for $16, the contribution margin per unit becomes $16 - $12 = $4. Since Rhythm Company wants to buy 3,000 units, the increase in income will be $4 * 3,000 = $12,000.
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3. A property that produces a first year NOI of $80,000 is purchased for $750,000. The NOI is expected to increase by 15% in the sixth year when some of the leases turnover. The resale price in year 10 is expected to be $830,000. What is the net present value of the property based on the 10-year holding period and a discount rate of 9.5%? (D)
Answer:
Net Present Value (NPV) = $ 115,998
Explanation:
Calculation of the Net Present Value
Net Present Value = Cash Inflows - Cash Outflows
NOI from 6th year = 80,000*115% = 92,000
NPV = 80000 (PVAF, 5 year) + 92,000 (PVAF, (105), 9.5%) + 830,000/(1.095)10 - 750,000
NPV = (80,000 x 3.839) + (92,000 x 2.439) + (830,000 x 0.403) - 750,000
= 307,120 + 224,388 + 334,490 - 750,000
The Net Present Value will be $ 115998
The net present value of the property is approximately $95,235.12.
Explanation:To calculate the net present value (NPV) of the property, we need to discount the cash flows from the property at the given discount rate. The formula to calculate NPV is:
NPV = CF0 + Σ(CFt / (1+r)t) - C0
In this case, CF0 is the initial purchase price (-$750,000), CFt is the expected cash flow in year t, r is the discount rate (0.095), and C0 is the expected resale price in year 10 (+$830,000). We need to calculate the present value of each year's cash flow and then sum them up to find the NPV.
The cash flows for each year can be calculated as follows:
Year 1: $80,000 (no discounting needed)Year 2-5: $80,000 × (1+0.15)t-1Year 6-9: $80,000 × (1+0.15)t-1 × (1+0.155)Year 10: $830,000 × (1+0.15)10Substituting these values into the formula and summing up the discounted cash flows, the net present value of the property is approximately $95,235.12.
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Suppose that a plant manager has taken MgtOp 340, and so she uses economic batch sizes for production of a product. Suppose further that the setup cost is $50, the holding cost per unit per year is $10, the annual demand is 30,000 units, the firm operates (and experiences demand) 300 days per year, and the production rate per day is 1000 units. What will be the maximum inventory level that this product ever reaches?
Answer:
Maximum inventory level is 520 units
Explanation:
Given,
C0 = $50
Ce = $10
D = 30,000 units
d = D / Days
= 30,000 / 300
= 100 units per day
p = 1,000 units
Computing the optimal order size with the formula as:
Qopt = √ 2 C0 D / Ce (1- d / p)
=√ 2 (50) (30,000) / $10 (1 - 100 / 1,000)
= 577.36
Computing the maximum inventory level as:
Maximum inventory level =Qopt ( 1 - d/ p)
= 577.36 ( 1- 100 / 1,000)
= 519.624 unit or 520 units
Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has occurred, Everly must restore the property (estimated fair value of the obligation is $80,000), after which it can be sold for $160,000. Everly estimates that 4,000 tons of coal can be extracted.
If 700 tons are extracted the first year, prepare the journal entry to record depletion. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Explanation:
The journal entry is shown below:
Inventory A/c Dr $73,500
To Accumulated depletion A/c $73,500
(Being the depletion is recorded)
The computation is shown below
First we have to compute the depletion per ton which is shown below:
= (Acquired cost of coal mine + Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)
= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)
= $105
Now if 700 are extracted in first year, so the depletion would be
= 700 × $105
= $73,500
Personal communications about a product between target buyers and neighbors, friends, family members, associates, and other consumers, are known as ________.
A) personal selling
B) direct marketing
C) public relations
D) buzz marketing
E) word-of-mouth influence
Answer:
E) word-of-mouth influence
Explanation:
Which of the following is an example of the gambler’s fallacy? Question 20 options: "I know the chances of winning the lottery are small, but someone has to win it and I could be the one!" "I’ve gotten a low number the last eight times I’ve rolled the dice, so a high number is coming up soon!" "There’s an equal chance for any team to win the league’s championship." "The best strategy at the horse races is to bet in the same way as the crowd is betting."
Answer:
THE LOTTERY ONE #IM 13 MY SISTERS IN COLLAGE
Explanation:
The Gambler's Fallacy assumes past outcomes in a random process can affect future ones. The statement "I’ve gotten a low number the last eight times I’ve rolled the dice, so a high number is coming up soon!" reflects this fallacy, wrongly asserting that a high number is imminent following a string of low numbers.
Explanation:The Gambler’s Fallacy involves the incorrect belief that past outcomes in a random process can influence future outcomes. This fallacy is often present in situations involving chance and probability. For instance, if you flip a fair coin and it lands on heads five times in a row, the gambler's fallacy would be to assume that the next flip is more likely to be tails, when in reality, the probability is still 50-50 for each flip.
From the given options, the statement that represents the gambler’s fallacy is: "I’ve gotten a low number the last eight times I’ve rolled the dice, so a high number is coming up soon!" This is a classic example of Gambler's Fallacy, as it incorrectly assumes that after a string of low numbers, a high number is due, when in reality, each roll of dice is independent and has an equal chance of resulting in low or high numbers.
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Assume a zero-coupon bond that sells for $270 and will mature in 25 years at $1,850. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. What is the effective yield to maturity? (Assume annual compounding. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer:
8.00%
Explanation:
Data provided in the question:
Selling price of the bond i.e current value = $270
Future value = $1,850
Maturity time, t = 25 years
Now,
Effective yield to maturity, r = [tex](\frac{\text{Future value}}{\text{Current value}})^{\frac{1}{t}}-1[/tex]
on substituting the respective values, we get
Effective yield to maturity, r = [tex](\frac{\$1,850}{\$270})^{\frac{1}{25}}-1[/tex]
or
Effective yield to maturity, r = 1.0800 - 1
or
Effective yield to maturity = 0.0800
or
= 0.0800 × 100% = 8.00%
You would like to invest $20,000 and have a portfolio expected return of 14 percent. You are considering two securities, M and N. M has an expected return of 20 percent and N has an expected return of 10 percent. How much should you invest in stock M if you invest the balance in stock N to achieve the 14 percent portfolio return?
Answer:
The amount invested in M = $8,000
The amount invested in N = $12,000
Explanation:
Data provided in the question:
Total amount invested = $20,000
Expected return on portfolio = 14%
Expected return on M = 20% = 0.20
Expected return on N = 10% = 0.10
Now,
Let the amount invested in M be 'x'
thus,
Amount invested in N will be = $20,000 - x
Thus,
According to the question
0.20(x) + 0.10($20,000 - x) = 0.14($20,000)
or
0.20x + $2,000 - 0.10x = $2,800
or
0.10x = $800
or
x = $8,000
Therefore,
Amount invested in N will be = $20,000 - $8,000
= $12,000
Hence,
The amount invested in M = $8,000
The amount invested in N = $12,000
Orlando Enterprises reports the following information at December 31, 2016:a. Requirement 1. What is the actual manufacturing overhead of Orlando Enterprises?The actual manufacturing overhead of Orlando Enterprises is_______$b. Requirement 2. What is the allocated manufacturing overhead?The allocated manufacturing overhead is________$c. Requirement 3. Is manufacturing overhead underallocated or overallocated? By how much?Manufacturing overhead is by_______$
Answer:
1) C=C1+C2...+Cn
2) A=A1+A2...+An
3) Explanation is in the description
Explanation:
First, we have that the information given is incomplete. We need the information of the manufacturing overhead of Orlando Enterprises. Then, we are going to work on the problem without any specific data and give a general answer that will serve for any such data.
The attached table shows a way to represent the information of the manufacturing expenses, where the left column represents the current costs and the right column the allocated costs.
1) Current manufacturing overhead is then given by:
C=C1+C2...+Cn
2) 2) The allocated manufacturing overhead is given by:
A=A1+A2...+An
3) Finally, to determine if manufactured overhead is underallocated or overallocated:
X=C-A
If x>0, the manufactured overhead is udercalled.
Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events?
A) sales promotionB) personal sellingC) direct and digital marketingD) public relationsE) advertising
Answer:
Public relation
Explanation:
Public relation is assumed to be one of the most efficient tool for making good healthy relation in market. it is practical tool that work firmly and efficiently with cost effective way to promote the business to the next level.
public relation make awareness among the potential customer in a short time period effectively.
A client invests in an equity indexed annuity that has a guaranteed rate of 3% annual return, a 10% cap and 80% participation. in a year when the reference index increases by 15%, the invester will be credited with interate at the rate of?
Answer:
10%
The investor will be credited with the interest at the rate of 10%.
Explanation:
Cap on interest rate which is going to be credited = 10%
Participation=80%
Increase in reference index = 15%
As the participation rate is 80% so the investor can credit the amount of 80% * 0.15= 12% (15% of 80%) but as it is given in the question, the cap of 10% is put on the interest rate credited so the investor will be credited with the interest at the rate of 10%.