Answer:
All the given statements except first statement are true.
Explanation:
If the Fed injects a huge amount of money into the markets, inflation is expected to decline and long-term interest rates are expected to rise
If the fed injects a huge amount of money into markets, then aggregate demand levels in the future are expected to rise and thereby inflation is also expected to rise not decline. To control the rising inflation, the Fed will increase the interest rates thereby implying an increase in longer term interest rates. Hence, the above statement is false.
Foreign investments fuel growth in a country. However, this investment is based on factors that affect the business environment and increase riskiness, such as macroeconomic policies, political changes, labor issues, tax rates and regulations
If the policies at the government (fiscal) and central bank (monetary) level are supportive of growth considering inflation, pro-business political changes, tax rates are progressive and other regulations support the economic system, then foreign investors would surely be attracted to invest in the country. Vice-versa will be the case if all the above mentioned factors go in another direction and unemployment level is higher. Hence, the above statement is true.
Countries with strong balance sheets and declining budget deficits tend to have lower interest rates
True.
The countries with stronger balance sheets, have lower interest rates as the monetary policy is investment supportive which boosts the GDP.
Declining budget deficits will involve lower deficit financing, which has a direct relation with inflation. Hence lower deficit financing implies lower inflation and lower interest rates thereby.
When the economy is weakening, the Fed is likely to decrease short-term interest rates
True. When the economy is weakening, the Fed would like to follow a monetary easing policy. This implies, it will lower the interest rates to boost investment and growth in the economy. Hence, interest rates are likely to decline in the shorter term thereby due to the weakening economy.
A charter is being drafted for a newly formed internal auditing department. Which of the following best describes the appropriate organizational status that should be incorporated into the charter?
A: The director of internal auditing should report to the chief executive officer but have access to the board
of directors.
B: The director of internal auditing should be a member of the audit committee of the board of directors.
C: The director of internal auditing should be a staff officer reporting to the chief financial officer.
D: The director of internal auditing should report to an administrative vice president.
Answer:
A: The director of internal auditing should report to the chief executive officer but have access to the board of directors
Explanation:
Identify two characteristics of utilitarianism, two characteristics of virtue ethics, and two characteristics of deontology. Write one complete sentence for each characteristic identified.
Then, take the position that Starbucks is guided by utilitarianism and analyze how the notion of the moral good in utilitarianism leads to a unique approach to ethical problems. The way to do this is as follows:
First, present an ethical problem confronted by Starbucks.
Then, apply the characteristics of utilitarianism that you identified for this discussion in the attempt to solve this problem.
After this, analyze how the notion of the moral good present in utilitarianism, and the characteristics that you identified in particular, shape the approach to solving this problem..
Answer:
Explanation:
One claim of unethical practice done by Starbucks is that they do not give a chance for small coffee-shops and try to cease them out by acquairing them or competing aggressively. However in the case of buying the coffeeshops they evaluate the price of the shop generously.
In terms of utilitarianism, the action of buying out small shops through generous offer is considered not unethical, because if Starbucks sets up their business nearby the small shop, it will most likely suffer and by purchasing them it is actually a favor for coffeeshops.
The characteristics of utilitarianism is:
The end result of an action should be the most positive outcome for all the parties concerned
The action that leads to the end result is not as important as the result itself
Even though discussed issue is ethical in temrs of utilitarianism view, it is unethical in terms of deontology. Starbucks is causing the shut down of the local business and also discouraging its growth.
The characteristics of deontological ethics is :
The action is the most important focus of the ethical consideration
The result may not be the best but the entity/person in charge should take an ethical action
The third part is the virtue ethics. As per the virtue ethics, we cannot say that the action is ethical. This is not the only blame that Starbucks faces. They face allegation of exploiting coffee farmers, damaging the environment and mistreating their employees.
The characteristics of virtue ethics is
The moral value of the person/organization is more important than action or the result
Even if the action is unethical or the result is unethical, the moral of the person/company can still be correct.
Final answer:
Utilitarianism, Virtue Ethics, and Deontology characteristics explained in the context of Starbucks' ethical decision-making.
Explanation:
Utilitarianism assesses the moral worth of an action based on its consequences, specifically aiming for the greatest good for the greatest number.
Utilitarianism
Consequentialist: Considers outcomes to determine morality.Greatest Good: Focuses on actions that result in the greatest good for the greatest number.Virtue Ethics
Character-Centered: Emphasizes that right action stems from cultivating good character traits.Self-Perfection: Involves the development of virtues to become a good person.Deontology
Duty-Based: Centers on obligations and rules to guide actions.Absolute Duties: Defines actions as right or wrong based on adherence to moral rules.Analysis: Starbucks, guided by utilitarianism, would prioritize decisions that maximize overall happiness and well-being for the majority when faced with an ethical dilemma. This approach shapes Starbucks' actions by emphasizing the importance of considering consequences and aiming for the greatest benefit to society.
Farrell wants to retire in six years. To have sufficient assets to fund retirement, Farrell needs to accumulate an additional $400,000 between today and retirement. As his planner, you assume that inflation will average 5 percent. You are also confident that you can build a portfolio that will generate an 8 percent compounded annual after-tax return. What serial payment should Farrell invest at the end of the first year to fund this goal?
Answer:
$73,070.5
Explanation:
Inflation erodes the value of money. It makes more quantity of money to required to buy the same basket of food and services in the future.
With inflation, to calculate the the quantity of Dollars needed in n years time, we use the formula;
Inflated amount = h × (1 + f)^n
h= amount required today, f - inflation rate, n- number of years
So if Farrell needs $400,000 in 6 years time in real terms, with an inflation of 5% per year, he would need to have a quantity of money equal to
1.05^6 × 400,000 = $536,038.3.
To provide for $536,038.3 in 6 years time, he would need to contribute into a sinking fund on a yearly basis, an equal amount denoted as "A" in the formula below:
FV = A × ((1+r)^n - 1)/r
FV - 536,038.3, r - 8%, n = 6
536,038.3 = A × ((1+0.08 )^(6) - 1)/0.08)
536, 038.3 = A × 7.3359
536,038.3/7.3359 = A
$73,070.5 = A
Farrell should invest at the end of every year
$73,070.5
Consider the Hotelling model of the competition between two firms discussed in class. Select ALL that apply.
a. If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position.
b. In the Nash Equilibrium in pure strategies firms will localize together anywhere along the line.
c. If Firm localize at the same point along the line, they will each sell to 50% of the consumers.
d. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line.
Answer: The corrects answers are: "a. If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position.", "c. If Firm localize at the same point along the line, they will each sell to 50% of the consumers." and "d. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line.".
Explanation: According to the Hotelling model of the competition between two firms:
a. If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position. - If this were the case, it would be indifferent for customers to go to either.
c. If Firm localize at the same point along the line, they will each sell to 50% of the consumers. - This happens because each consumer will go to the nearest one.
d. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line. - This happens because the strategy chosen is not suitable for either company.
A study that relies primarily on quantitative data and uses qualitative data to follow up is considered an example of a(n) ________ approach to mixed methods design.
Answer:
The correct answer is letter "D": Explanatory.
Explanation:
Explanatory research typically is carried out when preliminary research was not made successfully, is unclear or vague. Explanatory research is based on factual data -mainly numerical- that allows the researcher to support the detailed descriptions that must be reported as conclusions of the study.
A study that relies primarily on quantitative data with qualitative follow-up is an example of a quantitative-dominant mixed methods design.
A study that primarily relies on quantitative data and uses qualitative data for follow-up is considered an example of a quantitative-dominant mixed methods design. This approach effectively combines both statistical analysis and detailed contextual understanding, reflecting the evolving landscape of research methodologies that emphasize the importance of triangulation in research. Such designs demonstrate how quantitative analysis can be enriched and contextualized with qualitative insights, providing a more comprehensive understanding of the research topic.
By employing a quantitative-dominant mixed methods approach, researchers can utilize the strengths of both quantitative and qualitative data to address complex research questions. This blend allows for robust testing of theories or hypotheses with quantitative data, while qualitative data provide a deeper insight into participant experiences, adding texture and meaning to the statistical findings.
George works at the Springfield Nuclear Plant as a nuclear technician. The plant is located 15 miles from the town of Springfield. George likes to eat his lunch at the plant's cafeteria because he is required to be available for nuclear emergencies during his shift. Unsurprisingly, there are no other eating establishments located near the plant. George estimates the value of the meals he was provided during the current year as $1,300. He estimates the cost for him to have prepared those lunches for himself as about $560. The cost of the meals to the power company was $470. How much income does George need to recognize from the meals?
Answer:
$0
Explanation:
Given that
Estimated value of the meals = $1,300
Preparing cost of lunch = $560
Cost of the meals to the power company = $470
The income that is recognized from the meals should be zero as he took the lunch from the office premises only which is to be excluded while computing the gross income
Plus, he also likes to eat his lunch at the plant cafeteria due to nuclear emergencies
Final answer:
George's income from employer-provided meals may not be considered taxable if they are for the employer's convenience and on the business premises. However, without clear IRS guidance in the scenario, it's difficult to state a specific figure. Consulting a tax professional is recommended for an accurate determination.
Explanation:
George needs to recognize income from the employer-provided meals based on their fair market value (FMV). The value he places on the meals is $1,300, while his out-of-pocket cost if he prepared the meals himself would be $560. However, the IRS generally requires one to include in their income the amount their employer paid for the meals unless they are furnished for the employer's convenience and on the employer's business premises. In George's case, since he must be available for nuclear emergencies during his shift, it appears the meals are provided for the convenience of the employer, and thus may not be considered taxable income. To determine the exact amount of income George needs to recognize, one would need to refer to current IRS regulations or consult with a tax professional.
If Roten Rooters, Inc., has an equity multiplier of 1.45, total asset turnover of 1.33, and a profit margin of 8.50 percent. What is its ROE?
Answer:
ROE is 0.164 or 16.4 %
Explanation:
In corporate finance, return on common equity (ROE) is an index of return on equity. It constitutes one of the most concise indices of the company's economic results. It is a percentage index for which the net income (NI) produced in a year is compared to the equity (Eq): the net capital, or equity of the year , that is to the production condition of direct relevance.
ROE=NI/Eq
If we have the characteristics of profit margin, total asset turnover and equity multiplier we can arrange new formula to calculate it as well. The equity on the first formula will be transformed to the nominator instead of denominator. The net income will also equal to the multiple of profit margin(PM) and total asset turnover(TAT). Then the new formula will be:
ROE= Eq Multiplier x PM x TAT= 1.45 * 1.33 * 0.85=0.164 or 16.4 %
An executive conference center has the theoretical physical ability to handle a maximum of 1,100 participants. However, conference management personnel believe that only 1,000 participants can be handled effectively for most events. The last event resulted in the attendance of 950 participants. Referring to Scenario 2 above, assume that conference management personnel wish to earn additional revenue. Thus, they are willing make effective capacity be the same as design capacity (i.e., they now wish to operate at the design capacity of 1,100 participants). Assume now that the last event still resulted in the attendance of 950 participants. What is the new efficiency of the conference facility?
Answer:
86.36%
Explanation:
The efficiency of the conference facility is given by the number of people who attended the event divided by the effective capacity. If the effective capacity is considered to be the design capacity of 1,100, the efficiency of the conference facility for an attendance of 950 participants is:
[tex]E=\frac{950}{1,100}=0.8636=86.36\%[/tex]
The new efficiency is 86.36%
Approximately what percentage of total health care spending goes toward hospital care?
(A) One-tenth.
(B) One-fifth
(C) One-fourth
(D) One-third
(E) One-half
Answer:
D
Explanation:
According to an article published on modernhealthcare.com on Feb-2019, around 33% of total health care spending goes to hospital care. 33% calculates as to one-third of total health care spending portion.
Suppose we observe the following rates: 1R1 = 13 percent, 1R2 = 16 percent, and E(2r1) = 10 percent. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2, L2?
a)8.7 percent
b)9.1 percent
c)9.7 percent
d)10.0 percent
Answer:
b)9.1 percent
Explanation:
Data provided in the question:
1R1 = 13 percent,
1R2 = 16 percent3
E(2r1) = 10 percent
Now,
The liquidity premium theory is given as:
1 + 1R2 = [tex][ ( 1 + 1R1)\times(1 + E(2r1) + L2 )]^{\frac{1}{n}}[/tex]
for year 2, n = 2
Thus,
1 + 0.16 = [tex][ ( 1 + 0.13)\times(1 + 0.10 + L2 )]^{\frac{1}{2}}[/tex]
or
1.16² = [ 1.13 × ( 1.10 + L2)]
or
1.191 = 1.10 + L2
or
1.191 - 1.10 = L2
or
L2 = 0.091
or
L = 0.091 × 100% = 9.1%
b)9.1 percent
Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five years.
a. Calculate the present value for Investment X and Y if the discount rate is 5 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)b. Calculate the present value for Investment X and Y if the discount rate is 15 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer:
PVxa = $27,132.00, PVya = $26,413.00,
Explanation:
Present value (PV) is the value of the future expected cash flow. PV rests on the idea that the worth of a cash received is more than that of the cash promised to be received in the future. To calculate PV a stream of incomes to be received a number of period in the future, the following formula is used:
[tex]PV = C[\frac{1-(1+r)^{-n} }{r} ][/tex]
Where PV = present value
C = cash flow amount from the investment
r = discount rate
n = number of period, in this case years, to receive the cash flow.
The PV formula above is therefore employed to answer the question as follows:
Answer to question (a)
For Investment X in question (a)
PVxa = $4,200 * {[1-(1+r)^-n]/r}
PVxa = $4,200 * {[1-(1+0.05)^-8]/0.05}
PVxa = $4,200 * 6.463212759
PVxa = $27,145.49
For Investment Y in question (a)
PVya = $6,100*{[1-(1+r)^-n]/r}
PVya = $6,100*{[1-(1+0.05)^-5]/0.05}
PVya = $6,100 * 4.329476671
PVya = $26,409.81
Answer to question (b)
For Investment X in question (b)
PVxb = $4,200 * {[1-(1+r)^-n]/r}
PVxb = $4,200 * {[1-(1+0.15)^-8]/0.15}
PVxb = $4,200 * 4.487321508
PVxb = $18,846.75
For Investment Y in question (b)
PVyb = $6,100*{[1-(1+r)^-n]/r}
PVyb = $6,100*{[1-(1+0.15)^-5]/0.15}
PVyb = $6,100 * 3.352155098
PVyb = $20,448.15
Where PVxa, PVya, PVxb and PVyb represents PV for X and Y in questions (a) and (b).
Decisions:
1. In question (a) part where the PV of $27,145.49 of X is greater than $26,409.81 of investment Y, it is better to invest on investment X.
2. In question (b) part where the PV of $20,448.15 of Y is now greater than $18,846.75 of investment X, it is better to invest on investment Y.
The present value of Investment X at a 5% and 15% discount rate is $28,353.03 and $17,276.08 respectively, while Investment Y at the same rates is $26,320.73 and $18,716.64. The chosen discount rate significantly influences these present values.
Explanation:The subject of this question is present value calculation for investments, which falls under business, specifically financial management or economics. We start by using the present value formula for an annuity: PV = Pmt *[1 - (1 + r)^-n] / r, where PV is the present value, Pmt is the payment received each period, r is the discount rate, and n is the number of periods.
Part a: If the discount rate is 5%, the present value for Investment X is 4200 *[1 - (1 + 0.05)^-8] / 0.05 = $28,353.03 and for Investment Y is 6100 *[1 - (1 + 0.05)^-5] / 0.05 = $26,320.73.
Part b: If the discount rate is 15%, the present value for Investment X is 4200 *[1 - (1 + 0.15)^-8] / 0.15 = $17,276.08 and for Investment Y is 6100 *[1 - (1 + 0.15)^-5] / 0.15 = $18,716.64.
In conclusion, different discount rates will affect the present value of investments. A higher discount rate will result in a lower present value, all else being equal.
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Loggers are much_______- likely to supply wood to the market if property rights are not enforced.In the presence Of market failures, public policy can improve economic efficiency. Classify the source of market failure in each case listed. A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons.a. Market Power b. Externality A single grocery store is the only source of food in a small town, giving the store the ability to influence the price of food. a. Market Power b. Externality
Answer:
less;
A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. b. Externality
A single grocery store is the only source of food in a small town, giving the store the ability to influence the price of food. a. Market power
Explanation:
Property rights are usually imposed on individuals who are able to control the resources which are of public value. When the society gets affected by the practices of those individuals or entities, property rights made by a government or regulatory body come into the picture. Therefore, those individuals need to be regulated and incentivized by property rights, or they will be less likely to conform to the market needs.
These rights protect the market from market failures, which is their main purpose.
The most common types of market failures include externalities and market power. The first example is an externality as the unwanted smoke represents the cost (or benefit) which cannot be influenced by a specific party.
The other example is typical market power, as the monopolist (grocery store) can control the price of goods, which is an essential market determinant.
The person smoking in a restaurant causing harm to others through second-hand smoke exemplifies an 'externality' as other individuals, not involved in the action, are affected. The case of a single grocery store being the only food source in a town and thus being able to influence the price of food is an example of 'market power', where a single entity determines the price or quantity of a commodity.
Explanation:In context of economic theory, the given scenarios classify two distinct forms of market failures: externality and market power.
The first scenario, where a person smoking in a restaurant creates second-hand smoke affecting other patrons, is an example of an externality. Externalities are costs or benefits that affect a third party not directly involved in the transaction. Here, the third parties (other restaurant patrons) are negatively affected by the smoker's actions, thus creating a negative externality.
In the second case, a single grocery store monopolizing food supply in a small town, indicates market power. Market power refers to the ability of a firm to control the market price or quantity of a good or service. In this scenario, the single grocery store has the power to influence the price of food, a characteristic of market power.
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When the Consumer Price Index falls from 110 to 100a. there is inflation of 9.1% and the value of money decreases.b. there is deflation of 9.1% and the value of money increases.c. there is deflation of 10% and the value of money increases.d. there is inflation of 10% and the value of money decreases.
Answer:
Option (b) is correct.
Explanation:
Inflation rate refers to the rate at which the prices of goods and services are increased.
Inflation rate:
= Percentage Change in Consumer Price Index
= (100 - 110) ÷ 110
= - 10 ÷ 110
= - 0.0909, or - 9.09%
So, this is a Deflation of 9.09% (9.1%), and a deflation means that value of money has increased.
The Loann Le Milling Company is going to purchase a new piece of testing equipment for $28,000 and a new machine for $53,000. The equipment falls in the three-year property class, and the machine is in the five-year class.
What annual depreciation will the company be able to take on the two assets?
Answer:
Equipment = 33.33% (1/3)
Machine = 20.00% (1/5)
Explanation:
Final answer:
The Loann Le Milling Company can take an annual depreciation of $9,333.33 on the testing equipment and $10,600 on the machine.
Explanation:
The annual depreciation on an asset is calculated using the straight-line depreciation method, which involves dividing the cost of the asset by its useful life. The testing equipment has a cost of $28,000 and falls in the three-year property class, so the annual depreciation can be calculated as $28,000 / 3 = $9,333.33. The machine has a cost of $53,000 and falls in the five-year property class, so the annual depreciation can be calculated as $53,000 / 5 = $10,600.
On July 1, Morris Company paid $17,400 for two years of insurance in advance. Morris debited Prepaid Insurance. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on?
Answer:
The effect shall be an understatement of expenses and overstatement of net income. The impact shall be $ 4,350.
Explanation:
The expired portion of prepaid insurance i.e 6 months from July 01 to year end needs to be adjusted. The adjustment amount shall be $ 4,350. calculated as under:
Prepaid Insurance $ 17,400
Period of benefit 24 months.
Adjustment for prepayment : 17400/24*6 = $ 4,350
The effect of not passing the entry would be an understatement of expenses and overstatement of net income
Suppose you bought a 15-year $1,000 face-value bond for $945 one year ago. The annual coupon rate is 7% and interest payments are paid annually. If the price today is $995, the yield to maturity must have changed from _____________ to ______________.
a. 8.12%; 6.94%
b. 7.12%; 8.11%
c. 7.63%; 7.06%
d. 9.11%; 9.35%
e. None of the above
Answer:
c. 7.63%; 7.06%
Explanation:
First we need to find the yield to maturity when we first bought the bond, the face value was 1,000 the present value was 945, the coupon payments were (0.07*1000)=70 and number of years to maturity were 15. We input the following into a financial calculator.
FV= 1,000
PV= 945
PMT= 70
N=15
Compute I= 7.63%
Now we need to find the ytm after one year of holding the bond, the future value is 1,000, the pv is 995, the number of years to maturity is 14 years and the payments are still 70,
FV= 1,000
PV=995
PMT=70
N=14
Compute I = 7.06%
The YTM changed from 7.63% to 7.06%
The manager at Tom's Taxidermy expects to sell 1,000 units at $70 each unit. In order for the manager to breakeven, the manager must sell100 units.
What is the margin of safety in dollars?
A.$63,000
B.$75,900
C.$70,000
D.$ 77,000
Answer:
A.$63,000
Explanation:
The margin of safety is defined as the difference between the actual sales volume and the breakeven volume.
In this case, Tom's Taxidermy expects to sell 1,000 units at $70 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:
[tex]MS = (1,000-100)*\$70\\MS=\$63,000[/tex]
The answer is A.$63,000.
An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which allows for 3 separate 8 hour shifts. a. If a worker can produce 10 parts/hour, how many workers are needed on each shift? b. If each shift has 100 workers, what is the productivity of an individual worker? c. If material costs are $10/part, capital costs are $100,000 and labor costs are $10/hour, what is the multifactor productivity of the plant from part A?
Answer:
Part A:
Workers Needed=20.833≅21
Part B:
Productivity of individual worker=2.0833 parts/hour
Part C:
Multifactor productivity=0.0832 Parts/$
Explanation:
Part A:
Total parts =100,000
Workers needed= Total parts/(Parts per hour* hours per shift*Total Shifts)
[tex]Worker\ needed=\frac{100000}{10\ Parts/hour*8\ hours/shift*60\ shifts/worker} \\Workers\ needed= 20.833[/tex]
Workers needed=20.833≅21
Part B:
Productivity of individual worker:
[tex]Productivity\ of\ individual\ worker=\frac{100000}{100\ workers*8\ hours/shift*60\ shifts/worker} \\Productivity\ of\ individual\ worker=2.0833\ parts/hour[/tex]
Part C:
Total cost of material= $10*100,000=$1,000,000
Capital Costl= $100,000
Total labor Cost=[tex]21\ workers*8\ hours/shift*60\ shifts/worker*\$10/hour[/tex]
Total labor Cost=$100,800
Multifactor productivity=Total Parts/(Total cost of material+capital cost+Total labor Cost)
[tex]Multifactor\ productivity=\frac{100000}{\$1,000,000+\$100,000+\$100,800} \\ Multifactor\ productivity=0.08324\ Parts/\$[/tex]
The industrial plant needs approximately 21 workers per shift to meet its demand of 100,000 parts per month. An individual worker's productivity, if the shift consists of 100 workers, is 80 parts per worker-hour. The multifactor productivity, considering material, capital, and labor costs, is 0.048 parts per dollar.
Explanation:In order to answer the questions related to the industrial plant's operations, we'll need to do a few calculations. For question a, we know that there are 20 workdays in a month and that each day consists of 3 shifts of 8 hours each. That is a total of 480 hours in a month. If the plant needs to produce 100,000 parts per month and a worker can produce 10 parts per hour, we'll need 100,000 / 10 = 10,000 worker hours. Thus, since there are 480 hours in a month, the plant would need 10,000 / 480 ≈ 21 workers per shift (rounded up).
For question b, if each shift has 100 workers, and each worker can produce 10 parts per hour for 8 hours, then each worker produces 80 parts in a shift, and the 100 workers together produce 8,000 parts per shift. If we again presume 60 shifts in a month (3 shifts per day for 20 days), then 60 shifts would produce 480,000 parts, which means the productivity of an individual worker is 480,000 parts per month divided by 6,000 worker hours, or 80 parts per worker hour.
Lastly, for question c, multifactor productivity represents the output per unit of combined inputs. The combined costs of material, capital, and labor here are (10 × 100,000) + 100,000 + (10 × 21 workers × 8 hours × 20 days × 3 shifts) = 2,104,000. Therefore, the multifactor productivity is 100,000 parts / 2,104,000 = 0.048 parts per dollar.
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According to the Porter (1996) article on Strategy, managers are so caught up in the race to make decisions on strategic fit, many do not understand the need for operational effectiveness.
a. True.
b. False.
Answer:
(b). False
Explanation:
In his article, Michael Porter discussed the co-existence of both strategy and operational effectiveness.
Operational effectiveness as per Porter refers to performing activities which are similar to rivals in a better way and outperforming the rivals.
Strategic fit refers to that strategy with which an organization aligns its resources and capabilities with that of the opportunities prevalent in the business environment.
As per Porter, managers get caught up in a bid to improve operational effectiveness that they overlook the importance of a strategy.
Thus, the given statement is false.
Appraise the results of operations of Prestige Data Service. Is the subsidiary really a problem to Prestige Telephone Company? Consider carefully the differences between reported costs and cost relevant for decisions that Daniel Rowe is considering.
Solution:
Reducing hours would reduce demand for commercial revenue hours by 20%, from 138 hours to 110 hours. At that level, the total contribution would be:
110 hours x ($800 - $71.5) = $80,135 or $20,398 less than at present.
Raising the cost to $1,000 per hr for commercial clients would less demand by 30%. In March, the request had been for 138 hrs and a loss of 30% will also end up leaving 97 hrs of demand (138 hrs x 70 = 96.6 hrs).
Demand x Contribution per hour = Contribution 97 hours x ($1,000 - $71.50) = $90,064.5
Compare to present:
138 hours x ($800 - $71.50) = $100,533
The monthly contribution to fixed costs and income at $800 is greater by $10,469 than the contribution expected at $1,000. Therefore, the income will be higher if we retain the $800/hour price.
Identify whether each of the following is a flow variable or a stock variable.
The total value of all of a company's outstanding bonds
The number of Canadian immigrants living in the United States
The amount a company borrows in any given year by issuing bonds
The value of a rare coin
The number of Canadians who emigrate to the United States each year
The amount by which a rare coin increases in value each year
Answer:
Stock : 1, 2, 4 and Flow : 3, 5 ,6
Explanation:
Stock is a variable that is measured at a particular point of time. Eg: Wealth at a point of time, Capital at a point of time.
Flow is a variable that is measured for a particular period of time. Eg: Income for a period of time, Investment for a period of time.
Total value of company's outstanding bonds : Stock
The number of Canadian immigrants living in US : Stock
The company's borrowings in given year by bonds : Flow
The value of a rare coin : Stock
The no. of canadians emigrating US each year : Flow
The amount by which rare coin value increases each year : Flow
Flow variables are measured over a period of time, while stock variables are measured at specific points in time. In the provided examples, the total value of a company's outstanding bonds, the number of Canadian immigrants in the US, and the value of a rare coin are stock variables. The amount a company borrows in a year, the number of Canadians emigrating to the US each year, and the increase in a coin's value annually are flow variables.
Explanation:To understand whether these are flow variables or stock variables, we need to identify whether the data is measured at one specific point in time (stock) or over an interval of time (flow).
The total value of all of a company's outstanding bonds is a stock variable because it represents a quantity at a specific point in time.The number of Canadian immigrants living in the United States is a stock variable as it is a measure at a specific point in time.The amount a company borrows in any given year by issuing bonds is a flow variable, as it's measured over a period of time.The value of a rare coin is a stock variable because it is measured at a specific point in time.The number of Canadians who emigrate to the United States each year is a flow variable, as it is measured over an interval of time.The amount by which a rare coin increases in value each year is a flow variable since this is a measurement that occurs over a duration of time.Learn more about Flow and Stock Variables here:https://brainly.com/question/34403239
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The WeBuild Construction Company sold $13 million of buildings in its first year of operations. The company received payments of $8.50 million for these buildings. The company's income statement would report Multiple Choice Accounts Receivable of $8.50 million Sales Revenue of $13 million Expenses of $4.50 million Sales Revenue of $8.50 million
Answer:
The company's income statement would report Sales Revenue of $13 million
Explanation:
The journal entry for the transaction will be
==================================================================
Particulars Debit Credit
==================================================================
Cash $8.50 million
Accounts receivable $4.50 million
( 13.5 million - 8.50 million)
Sales revenue $13 million
==================================================================
hence,
The company's income statement would report Sales Revenue of $13 million
Final answer:
Under the accrual basis of accounting, the WeBuild Construction Company would report Sales Revenue of $13 million for the buildings sold and Accounts Receivable of $4.50 million for the yet-to-be-received payments on the income statement.
Explanation:
The question is about how to report transactions on an income statement under the accrual basis of accounting. When WeBuild Construction Company sold buildings totaling $13 million and received payments of only $8.50 million, the correct approach is to report Sales Revenue of $13 million. This is because under the accrual accounting method, revenue is recognized when earned, regardless of when cash payments are received. The remaining $4.50 million, which is the difference between sales and payments received, would be reported as Accounts Receivable, indicating the amount of cash that is expected to be collected in the future.
Accounts Receivable represents the money owed to a company by its customers for products or services provided on credit. In this case, the correct choice for the income statement would be Sales Revenue of $13 million as this figure represents the total amount of sales made by the company.
Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company’s monthly fixed expense is $5,500.Required:1. Solve for the company’s break-even point in unit sales using the equation method.2. Solve for the company’s break-even point in sales dollars using the equation method and the CM ratio.3. Solve for the company’s break-even point in unit sales using the formula
Answer:
Explanation:
(SP-VC)*Q
$(8-6)Q = $5500
Q=5500/2
Break even quantity = 2750 units per month
2. Sales = $8 x 2750 = $ 22,000
If the unit sales price is $12, variable costs are $6 per unit, and fixed costs are $36,000, what sales volume (in dollars) is necessary to break-even?
Answer:
72000
Explanation:
Break even formula:
Break even in units=Fixed cost/Contribution margin per unit
= $ 36,000 / $ 6
= 6,000 Units
[Contribution margin=Sales price-Variable cost=12-6]
Break Even in Dollars = Break Even in Units * Selling Price Per Unit
= 6,000 Units * $ 12 Per Unit = $ 72,000
We try to determine if we can use educational background, interests, and gender to predict an individual's economic status (poor, average, high), which test should we use?
Answer:
The correct answer is letter "D": Multiple regression.
Explanation:
Multiple regression is a mathematical model used when one value is to be related to two or more variables. The value is independent and is typically the reason for the study and the variables are dependent and represent the factors of the value that must be tested and why the analysis is taking place.
Consider the cash flows seen here. The Internal Rate of return on the cash flows in the screenshot below (rounded to the nearest 1%) is ____________. (Note that date is in MM/DD/YYYY format.)
Answer:
IRR = 25%
Explanation:
See the image below to get your answer.
Explanation: The question has a missing information for which Internal rate of return might change.
There was a cash flow in 2012 and then there was a cash flow in 2014. So, there was no cash flow in 2013. Whenever we have to find the IRR or NPV, we need each year's cash flow. Therefore, we have added 2013 cash flow as "0". With the help of excel, it is easy to find Internal rate of return. Just follow the image, you will find it easier.
The best indicator of how well a company's strategy is working is whether the company is
Answer:
attaining its objectives
Explanation:
The organization objectives are tangible and explain clearly the activities necessary to accomplish a mission. Objectives define the strategies that your company will use to attain commercial success, quality of customer care, promotional incentives and any other tangible goals.
In other phrases, a company objective is a consequence a corporation is trying to accomplish. It also involves the techniques individuals will need to get to this place. A business goal typically includes a time period and profiles the existing resources.
The vigor of IPR protection is highly related to a country's stage of ________.A) economic developmentB) cultural heterogeneityC) natural resource developmentD) standardization of patent regulations
Answer:
The correct answer is letter "A": economic development.
Explanation:
The Intellectual Property Rights (IPR) are the grants typically a government provides to individuals over their creations for a specific period. The provision promotes innovation within countries that have usually developed economies. These rights cover all tangible and intangible created within a territory and that could be subject to exploitation.
Consider the market for corn.
Indicate whether each of the following events will cause a shift in the supply curve or a movement along the curve. If it will cause a shift, specify the direction.
a. A drought hits corn-growing regions, cutting the supply of corn.
b. The government announces a new subsidy for biofuels made from corn.
c. A global recession reduces the incomes of consumers in poor countries, who rely on corn as a staple food (assuming corn is a normal good).
d. A new hybrid variety of corn seed causes a 15 percent increase in the yield of corn per acre.
e. An advertising campaign by the beef producers' association highlights the health benefits of corn fed beef.
Answer:
(a) This will shift the supply curve of corn leftwards because a lot of corn would be destroyed from the drought.
(b) This will increase the demand and price for corn and hence, this will cause a movement along a supply curve.
(c) Reduction in the income level of the consumers will lead to reduce the demand and prices of the corn. Therefore, there is a movement along a supply curve.
(d) Increase in the productivity will cause a rise in the production of corn and hence, this will shift the supply curve rightwards.
(e) By advertising campaign, there is an increase in the demand for beef and therefore, this will increase the price of beef. Hence, cause a movement along a supply curve.
Events such as droughts or new farming technologies cause shifts in the supply curve for corn, while changes in consumer demand or government policies may lead to movement along the curve or shifts in the demand curve.
When analyzing the market for corn, various events can either cause a shift in the supply curve or a movement along the curve.
a. Drought in corn-growing regions: This will cause a leftward shift in the supply curve as it cuts the supply, indicating that less corn is available at any given price due to decreased production.
b. New subsidy for biofuels made from corn: This event can potentially increase the demand for corn, causing a rightward shift in the demand curve. However, it can also prompt a rightward shift in the supply curve for biofuels made from corn specifically, as producers are incentivized to increase production. For just the corn market, this is less direct and may not shift the supply of corn itself.
c. Global recession reduces incomes: This leads to a leftward shift in the demand curve for corn as a normal good, assuming that with lower incomes, the demand for corn falls. This represents a decrease in consumer demand, not a change in supply.
d. New hybrid corn seed increases yield: This causes a rightward shift in the supply curve because of increased productivity and thus more corn is available at any given price.
e. Advertising campaign highlights health benefits: This may increase demand for corn-fed beef, possibly leading to a movement along the supply curve for corn as more is demanded, rather than causing the curve itself to shift.
Overall, these examples illustrate the difference between changes in the conditions of supply (which lead to shifts in the supply curve) and changes in demand (which lead to movements along the supply curve or shifts in the demand curve).
True or False: An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.
Answer:
The statement is False
Explanation:
Generally speaking, the statement is false considering the demand and supply curve. In this curve, when there is increase in demand, its implies that the consumers of the notebook still derived satisfaction on it and as such the producer of the notebook produces more and supply to the market will increase so that equilibrium point will be achieved. Until when law of diminishing return set in, and the people are not deriving satisfaction again, that is when the product may not be readily available.
Again if the supply curve is vertical, that is the producer is producing and supplying at fixed rate without putting into consideration the demands in the market, there will not be corresponding increase in supply with demands which can make statement to true.
The given statement is false.
The following information should be considered:
When the demand for notebook increased so the demand should be shifted to rightward. The quantity supplied should be increased.Therefore, we can conclude that the given statement is false.
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