Answer:
Break even sales will be $2700
So option (b) will be correct option
Explanation:
We have given fixed cost = $1400
Sells per unit = $27 each
And variable cost per unit = $13 each
So contribution margin ratio [tex]=\frac{sales\ per\ unit-variable\ cost\ perunit}{sales\ per\ unit}=\frac{27-13}{27}=0.5185[/tex]
We know that break even sales is given by
Break even sales [tex]=\frac{fixed\ cost}{contribution\ margin\ ratio}=\frac{1400}{0.5185}=$2700[/tex]
So option (b) will be correct answer
Who is responsible for announcing StartEx and EndEx during an operations-based exercise?
Answer:
The senior controller is responsible for announcing StartEx and EndEx during an operations-based exercise.
Final answer:
The Exercise Director is usually responsible for announcing StartEx (start of the exercise) and EndEx (end of the exercise) in operations-based exercises. These announcements mark the official beginning and end of the scenario for the participants.
Explanation:
The individual responsible for announcing StartEx and EndEx during an operations-based exercise is typically the Exercise Director or the person in charge of the exercise control. StartEx marks the beginning of the exercise scenario, signaling to all participants that the exercise has commenced. EndEx is the announcement that signifies the end of the exercise, indicating to participants that the scenario has concluded and the operations should cease. It is very important for the smooth execution of the exercise that these announcements are clearly communicated to ensure that all participants are aware of the start and end times, allowing for accurate evaluation and feedback.
If some sellers exit a competitive market, how will this affect its equillibrium? Using the 3-point drawing tool, show the impact if some sellers enter a competitive market. Label your new curve appropriately. Using the point drawing tool, show the new equilibrium price and quantity. Label this point 'A'. Carefully follow the instructions above and only draw the required objects. According to your graph, when some sellers enter a competitive market, the equilibrium price_________ and the equilibrium quantity________.
Final answer:
When sellers enter a competitive market, the supply increases, causing the equilibrium price to decrease and the equilibrium quantity to increase. The new equilibrium point is indicated on the graph as point 'A'.
Explanation:
When sellers exit a competitive market, the supply curve shifts to the left, indicating a decrease in supply. This leads to a higher equilibrium price and a lower equilibrium quantity, as the point of intersection between supply and demand curves moves upwards along the demand curve. Conversely, when new sellers enter the market, the supply curve shifts to the right, indicating an increase in supply. This results in a lower equilibrium price and a higher equilibrium quantity, and the new intersection point on the graph is labeled as 'A'.
Following this analysis, when some sellers enter a competitive market, the equilibrium price decreases, and the equilibrium quantity increases. This is because the additional sellers cause more of the good to be available at each price, which, in turn, puts downward pressure on the price to the new equilibrium point.
Remember: The point where the supply curve (S) and the demand curve (D) cross is called the equilibrium, and the equilibrium price is the only price where the amount consumers are willing to buy is equal to the amount sellers are willing to sell, known as the equilibrium quantity.
Pearson Collections (PC) sells one-pound cans of coffee for $25 each. The variable cost to produce each can is $17.50, and fixed operating costs are $1,500. PC normally sells 30,000 pounds of coffee each year, has an interest expense equal to $300, and its marginal tax rate is 40 percent. Given this information, what is PC’s operating breakeven point?
Answer:
200 cans
Explanation:
Given that,
Selling price per can = $25
Variable cost = $17.50 each can
Fixed operating costs = $1,500
Marginal tax rate = 40 percent
Profit per unit = Selling price - Variable cost
= $25 - $17.50
= $7.50
PC’s operating break-even point:
= Fixed cost ÷ Profit per unit
= $1,500 ÷ $7.50
= 200 cans
Final answer:
Pearson Collections' operating breakeven point is reached when 200 one-pound cans of coffee are sold, which is calculated by dividing the total fixed costs by the difference between the price per unit and the variable cost per unit.
Explanation:
To calculate Pearson Collections' (PC) operating breakeven point, we need to find the level of output at which the company's total revenues equal its total fixed and variable costs, without considering interest expense or taxes, since operating breakeven focuses on operations alone. The formula for the operating breakeven in units is given by total fixed costs divided by the price per unit minus the variable cost per unit. In this case, the price per unit is $25, and the variable cost per unit is $17.50.
The calculation for PC's breakeven point would be:
Operating Breakeven Point in Units = Total Fixed Costs / (Price per Unit - Variable Cost per Unit)
Operating Breakeven Point in Units = $1,500 / ($25 - $17.50) = $1,500 / $7.50 = 200 Units
Therefore, PC needs to sell 200 one-pound cans of coffee to reach its operating breakeven point.
On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaints. Legal services total $10,700. In payment for the services, Whole Grain Bakery signs a 10% note requiring the payment of the face amount and interest to Terrell & Associates on September 1.
Required:For Terrell & Associates, record the acceptance of the note receivable on March 1 and the cash collection on September 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Final answer:
Terrell & Associates records the acceptance of a note receivable on March 1 by debiting Notes Receivable and crediting Legal Services Revenue. Upon collection on September 1, they debit Cash and credit Notes Receivable along with Interest Revenue for the principal amount and accrued interest.
Explanation:
On March 1st, Terrell & Associates accepts a note receivable in exchange for legal services provided to Whole Grain Bakery. The journal entry to record the acceptance of the note receivable would be a debit to Notes Receivable for the amount of the legal services provided, $10,700, and a credit to Legal Services Revenue for the same amount:
Debit Notes Receivable: $10,700Credit Legal Services Revenue: $10,700On September 1st, when the note is due, Whole Grain Bakery pays the face value plus interest. Over six months, the 10% annual interest rate accrues $535 on the principal ($10,700 * 10% * 6/12). The journal entry to record the cash collection would include a debit to Cash for the total amount received ($11,235), a credit to Notes Receivable for the principal amount ($10,700), and a credit to Interest Revenue for the interest earned ($535):
Debit Cash: $11,235Credit Notes Receivable: $10,700Credit Interest Revenue: $535Legal responsibility for someone else’s use of your possessions or someone else’s activity for which you are responsible is called __________.
a. negligence.
b. strict liability.
c. vicarious liability.
d. property risk.
e. pure risk
Answer:
The correct answer is letter "C": vicarious liability.
Explanation:
Vicarious liability may apply when a party is found responsible because of the acts of a third party and the first party is not able to take care of the responsibility. The party found responsible and the party responsible for the actions share responsibility in the acts.
Question 4: FastFit and Capital One are two very different organizations but both rely on information technology to enable business processes. What are the mission, goals, and representative strategies for these two organizations and how are they IT-enabled?
Answer and Explanation:
FastFit:
Mission: FastFit is an IT enabled company that thrives to meet quality and customer satisfaction
Goals:
To exceed customer satisfaction
Performing timely and quality services
Providing the best IT services. Ensuring complete compliance and privacy.
Representative Strategies: Use of internet medium to penetrate and reach customers
Capital One:
Mission: Capital One is an IT oriented company that provides quality service.
Goals:
Providing top performance and quality customer support.
Ensuring efficiency and providing detailed service information to users.
Providing support and privacy to clients.
Representative Strategies:
Using network based platform to engage with customers and suppliers.
Let's consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita both always consume equal amounts of rice and beans. In 2013, the price of beans was $1, and the price of rice was $3. Suppose that in 2014 the price of beans was $2 and the price of rice was $6. What was inflation? Was Bob better off, worse off, or unaffected by the changes in prices? What about Rita?
b. Now suppose that in 2014 the price of beans was $2 and the price of rice was $4. What was inflation? Was Bob better off, worse off, or unaffected by the changes in prices? What about Rita?
c. Finally, suppose that in 2014 the price of beans was $2 and the price of rice was $1.50. What was inflation? Was Bob better off, worse off, or unaffected by the changes in prices? What about Rita?
d. What matters more to Bob and Rita�the overall inflation rate or the relative price of rice and beans?
Inflation involves the rise in prices for goods or services over time. The relative effects of inflation on Bob and Rita depend on how their production and consumption are affected. More important to their individual economic conditions are the relative prices of beans and rice.
Explanation:The inflation rate is calculated by comparing the price increase of goods or services over a specified time period. To determine how inflation affects Bob and Rita, we should examine the price changes of beans and rice.
Inflation is 100% as price of both beans and rice has doubled. Bob and Rita are worse off as they have to spend more for the same amount of goods.For beans, inflation is 100%, while for rice it's 33%. Since Bob and Rita consume equal amounts of both, the overall effect of inflation depends on how the price changes affect their budgets. If they can't limit their consumption or find alternatives, they're worse off.With the price of beans doubling (100% inflation) and the price of rice decreasing (50% deflation), the impact on Bob and Rita depends on how much of each good they consume and their production. If they maintain equal consumption, Bob is better off since the price for his product has increased. Rita is possibly worse off, unless the reduced cost of beans allows her to increase her rice production without increasing costs.Relative prices tend to matter more than the overall inflation rate for Bob and Rita, as changes in the relative prices of rice and beans directly affect their economic situations. Inflation or deflation alone gives us an average, but individual experiences can vary greatly from the average.
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Final answer:
Inflation affects purchasing power, making goods and services cost more nominally. Bob and Rita, characters in a hypothetical two-person economy, are impacted differently depending on how the prices of beans and rice change relative to their incomes. The relative prices of goods consumed and income adjustments determine their economic well-being more than the overall inflation rate.
Explanation:
Understanding Inflation and Its Impact on Bob and Rita
When assessing the effects of inflation, it is crucial to consider both the nominal price and the real price. Inflation represents the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Consider the hypothetical economy with Bob, a bean farmer, and Rita, a rice farmer.
Scenario Analysis
In 2014, with bean prices at $2 and rice prices at $6, the inflation rate would be 100% for both beans and rice (since their prices doubled from 2013). Bob and Rita would both be worse off if their incomes did not double to compensate for these price increases.With bean prices at $2 and rice prices at $4 in 2014, the inflation rate for beans would still be 100%, but rice would see a lower inflation rate of about 33%. Bob would again be worse off unless his income increased by more than the inflation rate. Rita would be worse off if her income did not increase by at least 66% to match the weighted average inflation of beans and rice.If, in 2014, bean prices were $2 and rice prices were $1.50, inflation for beans would be 100%, but rice would experience deflation of -50%. Bob would be worse off due to the higher prices for his goods unless his income increased accordingly. Rita, on the other hand, might be better off if her income remained stable or increased, as the cost of her primary good, rice, has decreased.For both Bob and Rita, the relative prices of rice and beans and their changes are critical since they consume these goods in equal amounts. Therefore, the specialization and the relative prices matter more than the overall inflation rate to their individual economic statuses.In conclusion, inflation affects individuals based on their consumption patterns and income changes. The overall inflation rate is important, but for Bob and Rita, the relative price changes of beans and rice are more significant.
What internet business model would be appropriate for a company to follow in creating a website & why? The company is a hair salon. In what ways can the business beneft from a website? What functions should it perform for the company (e.g., marketing sales, customer support etc), In what other ways might the company use the internet for its own business? Prepare functional specification for the company's use of the Web and the internet. Include links to and from other sites in your design.
Answer:
The E-commerce business model
Explanation:
The E-commerce internet business model is the appropriate business model to follow for a company that is into hair salon.
Why?
Considering the type and nature of the business, the hair salon will probably be in the sales of fashion hair and making of hair. To achieve maximum sales and to be able to reach maximum potential client, an e-commerce website should be developed for the hair salon.
Function
This will allow the salon be able to make sales online, improve and have the ability to adopt different marketing strategy for the benefit of reaching a wider audience. Since the website is a technology that is internet based, customer feed back and customer support can be easily integrated and achieved on the website.
Other way the company can use the website and the internet is the ability to allow client book available time to walk into the salon to make their hair without waiting for so long. Additionally, the internet can be used for research purposes to acquire knowledge for the development of the company.
If a contractor is producing missiles for the Navy, and the contractor fails to deliver them on time, the Navy has the right to: [Contrast the difference between termination for convenience, termination for default, and termination for cause.]
A. Terminate the contract for default
B. Terminate the contract for convenience
C. Terminate the contract for cause
D. All of the answers are correct
Answer:
The correct answer is letter "A": Terminate the contract for default.
Explanation:
A termination for default takes place when one party on a contract is not able to fulfill the agreement conditions. The party who failed to fulfill the contract obligations can be sued and could be found liable for all the damages caused as a result of the breach of the agreement.
Single linkage is a measure of calculating dissimilarity between clusters by
a. considering the distance between the cluster centroids.
b. considering only the two most similar observations in the two clusters.
c. computing the average dissimilarity between every pair of observations between the two clusters.
d. considering only the two most dissimilar observations in the two clusters
Answer:
Single linkage is a measure of calculating dissimilarity between clusters by
b. considering only the two most similar observations in the two clusters.
Explanation:
Single Linkage:
It is a type of hierarchical clustering which is used to measure the dissimilarity between clusters by considering the only two observations that are closest in the clusters.
So, according to above point the option b is correct.The option a is not correct as we don't consider the distance between the cluster centroids.The option c is not correct as computing the average dissimilarity between every pair of observations between the two clusters is not done rather we consider the two closest similar observations in the cluster so that's why the option d is also incorrect.Final answer:
Single linkage measures dissimilarity between clusters by considering the distance between the two most similar observations in the two clusters.
Explanation:
Single linkage is a measure of calculating dissimilarity between clusters by b. considering only the two most similar observations in the two clusters. This method involves identifying the closest (or most similar) pair of observations where one member of the pair is from each cluster and calculating the distance between this pair as the measure of dissimilarity between the two clusters.
This approach is different from other clustering measures such as the centroid method (which considers the distance between cluster centroids) or the complete linkage method (which considers the distance between the most dissimilar observations in clusters). Single linkage can lead to a chaining effect where clusters may be joined together due to single close pairs, even though the remaining elements in the clusters may be far from each other.
Gavin tells Rod that he will pay him $400 to paint his house. Rod starts to paint, intending to accept. Halfway through his paint job, Gavin tells Rod that he wants to revoke the offer. Under this scenario:Select one:a. Gavin is not allowed to revoke because the contract is unilateralb. Gavin is allowed to revoke, but is liable to Rod for the reasonable value of painting half the house c. Gavin may not revoke because the contract is bilaterald. d. Gavin is allowed to revoke if he finds Rod's efforts half-hearted
Answer:
d. Gavin is allowed to revoke if he finds Rod's efforts half-hearted
Explanation:
Either he accepts, or he does not accept the offer. Even if he started to paint without accepting the offer, and Gavin does not like his work, the offer can be revoked.
So the correct answer is:
d. Gavin is allowed to revoke if he finds Rod's efforts half-hearted
In January 2001, the euro/dollar exchange rate was 1.10, and in January 2002, the euro/dollar exchange rate was 1.120. What happend to the exchange rate during this period?
A. Euro depreciated against the dollar
B. Euro appreciated against the dollar
C. Dollar appreciated against the euro
D. Both B and C
Answer:
B. Euro appreciated against the dollar
Explanation:
Depreciated means a decrease in value. Therefore, option A is incorrect. Since the exchange rate of Euro increases, the dollar cannot be appreciated at the same time. So, C cannot be the answer. If "C" is incorrect, both "B" and "C"; it means "D" is incorrect.
Hence, option "B" is correct because the foreign exchange rate of Euro increases relative to the exchange rate of the dollar in 2002. If there is an increase of a currency relative to others, the increased currency is said to be appreciated.
Cheetah Copy purchased a new copy machine. The new machine cost $140,000 including installation. The company estimates the equipment will have a residual value of $35,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 3,000 2 2,000 3 2,000 4 2,000 Required: 1. Prepare a depreciation schedule for four years using the straight-line method.
Answer:
Depreciation Expense for year 1 = $26,250
Depreciation Expense for year 2 = $26,250
Depreciation Expense for year 3 = $26,250
Depreciation Expense for year 4 = $26,250
Explanation:
Cheetah Cop use the straight-line method depreciation, Depreciation Expense each year is calculated by following formula:
Annual Depreciation Expense = (Cost of machine − Residual Value )/Useful Life = ($140,000 - $35,000)/4 = $105,000/4 = $26,250
Depreciation Expense for year 1 = $26,250
Depreciation Expense for year 2 = $26,250
Depreciation Expense for year 3 = $26,250
Depreciation Expense for year 4 = $26,250
The question deals with business accounting, focusing on the calculation of yearly depreciation for an asset using the straight-line method. In this case, Cheetah Copy should record $26,250 in depreciation for their new copy machine each year for 4 years.
Explanation:The subject you are asking about is depreciation in accounting for a business's equipment purchase. Depreciation is used to account for the reduction in value of an asset over time due to use, wear and tear, obsolescence etc.
Let's calculate the depreciation using the straight-line method:
Determine the initial cost of the asset. In this case, it's $140,000.Next, calculate its residual (salvage) value. For Cheetah Copy, this is $35,000.Determine the lifespan of the asset or how long it will be useful. Here, it's 4 years.Calculate the total depreciation over the lifespan of the asset by subtracting the residual value from the initial cost. That's $140,000 - $35,000 = $105,000 total depreciation.Depreciation per year (using the straight-line method) is equal to the total depreciation divided by the lifespan of the asset. Therefore, $105,000 / 4 = $26,250 annual depreciation.So, Cheetah Copy should record $26,250 in depreciation for their copy machine each year for 4 years.
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Suppose a firm has two types of customers but cannot tell which type of buyer a customer is before a purchase is made. One group of customers has an inverse demand of P = 100 – 10Q, while another group of customers has an inverse demand curve of P = 110 – 22.5Q. If the firm wanted to use a quantity discount pricing scheme, what prices should it set? Assume that the marginal cost of production is constant at $20.
A) The firm could charge $65 per unit for any quantity purchased or $60 per unit if buying 4 or more units.
B) The firm could charge $50 per unit for any quantity purchased or $40 per unit if buying 8 or more units.
C) The firm could charge $25 per unit for any quantity purchased or $20 per unit if buying 2 or more units.
D) The firm could charge $85 per unit for any quantity purchased or $75 per unit if buying 6 or more units.
I know the answer is A but do not understand how to get there. thanks!
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.
Market research indicates that a new product has the potential to make the company an additional $1.6 million, with a standard deviation of $2.5 million. If these estimates were based on a sample of 12 customers from a normally distributed data set, what would be the 95% confidence interval?a. (0.00, 3.69) b. (-0.13, 3.33) c. (-0.49, 3.69) d.(-0.09, 4.10)
Answer:
The 95% confidence interval would be given by (0.011;3.2188)
But on this case the most accurate option seems to be : a. (0.00, 3.69)
Explanation:
Previous concepts
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
Solution to the problem
The confidence interval for the mean is given by the following formula:
[tex]\bar X \pm t_{\alpha/2}\frac{s}{\sqrt{n}}[/tex] (1)
In order to calculate the critical value [tex]t_{\alpha/2}[/tex] we need to find first the degrees of freedom, given by:
[tex]df=n-1=12-1=11[/tex]
Since the Confidence is 0.95 or 95%, the value of [tex]\alpha=0.05[/tex] and [tex]\alpha/2 =0.025[/tex], and we can use excel, a calculator or a table to find the critical value. The excel command would be: "=-T.INV(0.025,11)".And we see that [tex]t_{\alpha/2}=2.201[/tex]
Now we have everything in order to replace into formula (1):
[tex]1.6-2.201\frac{2.5}{\sqrt{12}}=0.011[/tex]
[tex]1.6+2.201\frac{2.5}{\sqrt{12}}=3.188[/tex]
So on this case the 95% confidence interval would be given by (0.011;3.2188)
But on this case the most accurate option seems to be : a. (0.00, 3.69)
Fill in the blanks to complete the passage about the law of one price. Drag word(s) below to fill in the blank(s) in the passage. must According to the law of one price, identical goods sold sell for the same price, except for costs associated with Those costs reflect and the cost of shipping. According to the law of one price, if the price of a good in one location does not match the price of the same good in a different location, sellers will increase until prices in both locations are equal supply in the location where the good is in different locations less expensive at different times trade barriers production movement between locations currency exchange more expensive
Answer:
Consider the following explanation.
Explanation:
According to the law of one price, identical goods
sold IN DIFFERENT LOCATIONS must sell for the same
price, except for costs associated with MOVEMENT BETWEEN LOCATIONS.
Those costs reflect TRADE BARRIERS and the cost of shipping.
According to the law of one price, if the price of a good
in one location does not match the price of the same good in
a different location, sellers will increase supply
in the location where the good is MORE EXPENSIVE
until prices in both locations are equal.
Suppose the following data describe output in two different years:
Item Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price
Oranges 15,000 $ 0.20 20,000 $ 0.25
Computers 600 $750.00 700 $ 840.00
Video Games 8,000 $ 0.75 10,000 $ 1.00
Compute nominal GDP in year 2 (Enter as a numeric value e.g. 100000)
Answer:
$603,00
Explanation:
Nominal GDP is the addition of current year prices multipled by quantity produced.
Gross domestic product is the sum of all final goods and services produced in an economy within a given period.
Nominal GDP = ($20,000 × $ 0.25) + (700 × $ 840.00) + (10,000 $ 1.00) = $5,000 + $588,000 + $10,000 = $603,000
I hope my answer helps you
Bryant Co. reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
$26,000
Explanation:
Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
The computation of the cash flows from operations is shown below:
Cash flow from Operating activities
Net income $20,000
Adjustments made:
Add: Depreciation expense $7,000
Less: Gain on sale of machinery - $3,000
Add: Loss from the retirement of notes $2,000
Net Cash flow from Operating activities $26,000
Using the indirect method, Bryant Co.'s cash flow from operations is calculated by adjusting the net income with non-cash expenses and non-operating gains and losses. After calculating, the cash flow from operations is $26,000.
Explanation:The indirect method for calculating cash flows from operating activities starts with the net income and then adds or subtracts items to adjust to the cash amount. To compute cash flows from operations for Bryant Co., we start with a net income of $20,000. Then we add back depreciation expense, which is a non-cash expense, for $7,000. We then subtract the gain on the sale of machinery for $3,000 because it's a non-operating activity. Finally, we add back the loss from the retirement of notes because it's a non-cash loss. This gives us a total cash flow from operations of $26,000. Therefore, Bryant Co.'s operating cash flow, using the indirect method, is $26,000.
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Worthington Chandler Company purchased equipment for $12,000. Sales tax on the purchase was $800.
Other costs incurred were freight charges of $200, repairs of $350 for damage during installation, and installation costs of $225.
What is the cost of the equipment?
a. $12,000
b. $12,800
c. $13,225
d. $13,575
Answer:
d. $13,575
Explanation:
The entirety of the costs incurred during the purchase of the asset, that are used to make it functional are generally capitalized. This involves the freight expense paid to bring the asset to the premises of operation, the installation costs and all other costs that are paid for the asset to be functional and hence a total of $13,575 are capitalized in this case.
Total cost of equipment = 12,000 + 800 + 200 + 350 + 225 = $13,575
Hope that helps.
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):________a. Alternative cost.b. Sunk cost.c. Out-of-pocket cost.d. Differential cost.e. Opportunity cost.
Answer:
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as opportunity cost.
The correct answer is E
Explanation:
Opportunity cost is the potential lost as a result of selecting an alternative where alternative courses of action are involved. It is a relevant cost for decision-making.
Answer:
e. Opportunity cost
Explanation:
This is the perfect definition of opportunity cost.
Businesses mostly find themselves stuck in choosing between two different alternatives, especially when each alternative has a cost consequence. For example, as an employee I am faced with two alternatives, first, I can go on a one week holiday with my friends and chill (which would cost me $1500) but if I do so I would be loosing $200 (as my salary) daily for one week, the total of which would be $1400. If I choose to go with my friends on the holiday anyhow, the total cost of my holiday would not just be $1500 but the opportunity cost of $1400 would also be a part of my holiday cost because it's relevant and is being influenced by my decision.
So I would basically be loosing the potential benefits (salary in this case) if I choose to go on the holiday with my friends.
Alternative cost is the cost comparison of two alternatives aimed at choosing the most economically feasible option.
Sunk cost is cost that is already incurred and/or is committed to be incurred at a later date which can't be influenced by our decision.
Differential cost is the difference between the cost of two options.
Suppose the firm currently employs 500 workers at 40 hours per worker per week and that the following relationship holds. 9,000-15 ME 800 МЕ, MPР, H M MPI 6,000 400 Prove that the firm is not at an equilibrium mix of workers and hours by showing there is a window of opportunity for it to reduce its total cost
Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8,700, direct labor of $3,800, and applied overhead of $3,230. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on account) for $23,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July. July Product Costs Job 120 Job 121 Job 122 Total Direct materials $ 2,100 $ 6,400 $ 3,400 $ 11,900 Direct labor 2,300 4,200 2,300 8,800 Overhead applied ? ? ? ?
1. Prepare journal entries for the following in July.
2. Direct materials used in production.
3. Direct labor used in production.
4. Overhead applied. The sale of Job 120.
e. Cost of goods sold for Job 120. 2.
Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.)
Answer and Explanation:
Cost Schedule:
Product Costs Job 120 Job 121 Job 122 Total
Beginning WIP 15700 15700
Direct Materials 2100 6400 3400 11900
Direct Labor 2300 4200 2300 8800
Overhead 85% 1955 3570 1955 7480
of Direct Labor
Total 22055 14170 7655 43880
Jounral Entries
Work in Process Inventory 11900
Raw Materials Inventory 11900
To record materials in inventory
Work in Process Inventory 8800
Wages Payable 8800
To record Labor cost
Work in Process Inventory 7480
Applied Factory Overhead 7480
To record applied FOH
Accounts Receivable 23,500
Sales Revenue 23,500
To record Job sold on account
Cost of Goods Sold (Job 120) 22055
Finished goods 22055
To record cost of goods sold
Ending Work in Process account = 7655
Ending Finished Good account = 14170
MacKenzie Company sold $640 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 2.0% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made.The journal entry to record this sale transaction would be:A)Debit Cash of $640 and credit Sales $640.B)Debit Cash of $640 and credit Accounts Receivable $640.C)Debit Accounts Receivable $640 and credit Sales $640.D)Debit Cash $627.20; debit Credit Card Expense $12.80 and credit Sales $640.E)Debit Cash $627.20 and credit Sales $627.20.
Answer:
.D)Debit Cash $627.20; debit Credit Card Expense $12.80 and credit Sales $640
Explanation:
Sales = $640
To recognize this,
Debit Cash $640
Credit Sales $640
Being entries to recognize sale and cash received.
On this sale, the bank deducts 2% of the sales value
Amount deducted = 2% × $640
= $12.80
To recognize this,
Debit Credit Card Expense $12.80
Credit Cash $12.80
Being entries to recognize credit card expense incurred on sale.
As such, the net effect of the two entries
Debit Cash $627.20
Debit Credit Card Expense $12.80
Credit Sales $640
The right option is D)Debit Cash $627.20; debit Credit Card Expense $12.80 and credit Sales $640.
There isn’t a definitive relationship – more inventory could mean a lower or a higher in-stock probability What is the relationship between the average inventory and the in-stock probability?
a. The more inventory the lower the in-stock probability
b. There isn’t a definitive relationship – more inventory could mean a lower or a higher in-stock probability
c. The more inventory the higher the in-stock probability
Answer:
The correct answer is letter "C": The more inventory the higher the in-stock probability.
Explanation:
If a company inventory increases it implies it has bought more than what it has sold. When inventory increases the company can meet more demand, increasing the likelihood of satisfying all customers. Though, if the demand does not increase, the excess in supply could be reflected as negative in the balance sheet.
If your procurement budget request did not provide for buying a whole number of useable end items, this would be a violation of which funding policy?
Answer:
Full funding policy.
Explanation:
This would be a violation of Full funding policy.
Full funding strategy is a federal budgeting requirement implemented by Congress in the 1950s on the Department of Defense (DOD) that mandates all acquisition expenses of a weapons or piece of military equipment to be financed in the year the object is procured. Hence in the above example there is violation of Full funding strategy.
A manufacturer of industrial sales has production capacity of 1,000 units per day. Currently, the firm sells production capacity for $10 per unit. At this price, all production capacity gets booked about one week in advance. A group of customers have said that they would be willing to pay $15 per unit if capacity was available on the last day. About ten days in advance, demand for the high-price segment is normally distributed with a mean of 250 and a standard deviation of 100. How much production capacity should the manufacturer reserve for the last day
Answer:
The production capacity the manufacturer should reserve for the last day = 206.00 units.
Explanation:
Normal production = 1000 X $ 10
Normal production = $ 10,000
Spot production = 1,000 X $ 15
Spot production = $ 15,000
p* = 15,000 - 10,000 / 15,000
p* = 0.33
Q = norminv(0.33,250,100)
The production capacity the manufacturer should reserve for the last day = 206.00 units
Shawna finally made it big in Nashville. She never expected the lack of privacy, criticism and demands that would follow. She finds herself unable to cope. According to Albrecht's nine variables, which one is now outside her comfort zone?
Answer and Explanation:
The factors that are influenced in Shawna's usual range of familiarity as indicated by Albrecht's factors are the lucidity of expected set of responsibilities and assessment criteria, work status and human contact. She's getting analysis that perhaps she was not set up for, which makes the assessment criteria of her business to be flimsy and difficult for her to satisfy inevitably. The status of her activity is too influenced by the analysis and the requests, and the human contact quality that she's having a direct result of her activity is a long way from the ideal in light of her absence of security.
This is a shallow perception as indicated by the verifiable depiction of the issues that Shawna is having, however it's the most precise sentiment as per the factors.
Prairie Partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of January 1, 20X5. Prairie’s 20X5 ordinary business income was $152,000 before deducting any guaranteed payments to the partners. During 20X5, Prairie paid Mack guaranteed payments of $4,000 for deductible services rendered. During 20X5, each of the four partners took a distribution of $50,000. What is Mack’s tax basis in Prairie on December 31, 20X5?
Answer
Option D.
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 sample of 1500 computer chips revealed that 27% of the chips do not fail in the first 1000 hours of their use. The company's promotional literature states that 25% of the chips do not fail in the first 1000 hours of their use. The quality control manager wants to test the claim that the actual percentage that do not fail is different from the stated percentage. Is there enough evidence at the 0.02 level to support the manager's claim?
Final answer:
The question concerns a hypothesis test at the 0.02 significance level to ascertain if the actual percentage of computer chips not failing in 1000 hours is different from the company's claim. A two-tailed Z-test for proportions can be used to determine if there is enough statistical evidence to support the quality control manager’s claim, with the p-value indicating the strength of the evidence.
Explanation:
The question involves determining whether there is enough evidence at the 0.02 level to support the quality control manager's claim that the actual percentage of computer chips that do not fail in the first 1000 hours is different from the stated percentage by the company. This scenario calls for a hypothesis test of a proportion. The observed proportion of non-failing chips is 0.27, while the company claims a proportion of 0.25. We would use a two-tailed test because the manager's claim is that the actual percentage is different, not specifically higher or lower, from the claimed 25%.
To perform the hypothesis test, we would set the null hypothesis as the proportion of non-failing chips being 0.25, and the alternative hypothesis as the proportion not being 0.25. The test statistic could be calculated using the Z-test for proportions. Once the test statistic is calculated, it is then compared to the critical values for a 0.02 significance level (or a confidence level of 98%). If the test statistic falls outside the range of values that correspond to the central 98% of the standard normal distribution, we would reject the null hypothesis, showing that there is enough evidence to support the manager's claim.
In terms of evidence and hypothesis testing, the situation is similar to other problems where a p-value is used to determine the strength of the evidence against the null hypothesis. For example, a p-value of 0.0067 indicates strong evidence against the null hypothesis, as it is well below the threshold of 0.02, justifying the rejection of the null hypothesis.
Which of the following is a cognitive strategy protecting goal value and promoting self-control?
(A) Decreasing the value of temptations
(B) Both decreasing the value of temptations and increasing the value of goal-consistent stimuli
(C) None of the answers provided are correct
(D) Increasing the value of goal-consistent stimuli
Answer:
The correct answer is (B)
Explanation:
Self-control and goal value both are important to achieve motivation and satisfaction at work. According to cognitive strategy goal, value and promoting self-control helps to decrease the value of temptation, and it helps to increase the value of consistent goal stimuli. It helps to stay focus to achieve goals and objectives. Similarly, if a person is dedicated and build self-control he/she will resist temptation.