Suppose there are two coffee shops in your college town, Laughing Monkey Latte and Kelly's Coffee Krush, and they decide to operate collusively as a cartel. If both shops abide by the cartel's agreement, each will earn $80000 in profit. If both shops cheat on the cartel's agreement, both will earn $15000 in profit. If one shop cheats and the other abides by the agreement, the cheater will earn a profit of $120000, while the shop that abides will have a loss of $7500. The Nash equilibrium between Laughing Monkey Latte and Kelly's Coffee Krush occurs when Choose one: O A. both shops abide by the cartel's agreement. B. both shops cheat on the cartel's agreement. C. Laughing Monkey Latte cheats on the agreement and Kelly's Coffee Krush abides by the agreement. D. There is no Nash equilibrium for Laughing Monkey Latte and Kelly's Coffee Krush.

The journal entry on January 2, 2017, should be the debiting of Accounts Receivable for $410,000 and the crediting of Sales for $370,000 and Unearned Revenue for $40,000. In terms of revenue recognized in the first quarter of 2017, it should be only the revenue from the sale of the goods, totaling $370,000, as the installation service is not yet completed.

The question relates to the topic of revenue recognition. In this scenario, Shaw Company has two distinct performance obligations: the delivery of goods and the installation service. The total transaction price of $410,000 should be allocated between these two obligations based on their standalone selling prices (in proportion to their relative standalone selling prices).

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Answer:

a. The firm will look at the demand curve to find out what it could charge for that quantity of output.

Explanation:

The monopolistic competition market has a large number of competing vendors and producers. In this type of market, firms compete by producing substitute (differentiated) goods that can replace each other, not homogeneous goods, while competing. The production of differentiated goods gives this market a competitive and monopolistic character, but because there are many vendors in the market, prices cannot be determined by a small number of companies. What is important in the monopolistic competition market is that the goods are attractive, preferable and indispensable. Characteristics of monopolistic competition:

1) Many sellers.

2) Differentiated products, products are not exactly the same as in the competitive market. Firms are not the determinants of the price.

3) Companies can enter and exit the market without restrictions. This traffic continues until the profit of the firms is worthless.

A profit-maximizing monopolistic competitor will have a target of the quantity in that case, marginal revenue should be equal to marginal cost and then he monopolistic competitor will start generate that level of output and finally, will decide charge the price which is indicated by the firm's demand curve. That demand curve will not be flat but downward sloped.

Answer:

A

Explanation:

The European segment will demand more unit because of high management and development

The student's question requires future market demand projections for various segments, which cannot be accurately addressed without specific data and a clear methodology for the projections. The given data offers no direct correlation to the demand units for the year 2027.

To determine which statement is true regarding market demand in the year 2027, we must analyze the provided data. This involves interpreting growth trends, demographic shifts, consumption patterns, and other economic indicators within the given context. The statements given appear to be concerned with future projections for various segments within the automotive industry or a related market, potentially utilizing forecasting methods such as linear extrapolation or compounded growth rates.

However, without access to specific figures or a clear methodology for projection (such as historical data or trend analysis), it is impossible to verify which statement is true for the year 2027. Note that the provided data does not contain any direct information relating to future demand numbers for the mentioned regions or segments.

Answer:

g.- LIFO as the cost of good sold will be based on the lattest unit thus, the more expensive under inflationary environment.

3.- FIFO as will declare cost the oldest unit (cheapest) and keep under inventory the newest (more expensive) units

4.- It should minimize holding and order cost using the economic quantity order

Then it will have to match their payment cycle with the collection cycle.

It will be better to pay just before 30 days so it pays nominal but after 30 days it will benefit from the inflation thus, it will be like 2% or 3% cheap as inflation per month is abotu that. I would be like paying with discount

Is important to do not led the invoice outdate as the supplier will charge high interest to compensate the inflation (inlation premium )

Explanation:

Answer:

The correct answer is letter "A": If tax cuts are not evenly distributed across income groups.

Explanation:

Fiscal policy refers to the combined governmental decisions regarding a country's taxing and spending. The term fiscal policy is associated with British economist John Maynard Keynes (1883-1946) who believed governments should influence macroeconomic productivity levels. Though, it could be a trap if it is not allocated correctly among different income groups. Economies such as Brazil, for instance, have allocated higher taxes for low-income people creating economic disparity.

Answer: A. December 31, 2018

Explanation: RMD also known as required minimum distribution is a withdrawal one has to take from his or her retirement plan once he or she attains the age of 70and a half years old.

According to IRAs, once a person attains the age of 70.5 which is six months after the person's 70th birthday, the individual is entitled to take his or her RMD by the 31st of December following his or her 70.5 birthday.

According to the above question, Walter is entitled to take his RMD on the 31st of Dec, 2018.

Answer:

A. $8,640.

Explanation:

Formula:  Units of Production Depreciation

Annual Depreciation=Depreciable Value×Units produced during the year/Estimated total production

Annual Depreciation = $24,000 *36,000/100,000= $ 8640

Depreciable Value = Original cost – Scrap value= $26,000- $ 2000= $ 24000

Answer:

WACC = 9.76%

Explanation:

First lets calculate the Market value of a firms equity and debt.

Market value of Equity = 963,000 * 3.07 = $2,956,410

Market value of Debt = 441,000 * 3.07 = $1,353,870

WACC =

Weight of equity * return on equity + weight of debt * return on debt * (1 - tax rate)

This gives us,

=[(2956410/(2956410 + 1353870))*0.127]+[(1353870/(2956410+1353870)*0.056] * (1 - 0.40)

WACC = 0.087 + 0.0106 = 0.0976 or 9.76%

Hope that helps.

Answer:

Base year.

Explanation:

Price indices is the percentage change in the price of goods in the particular year compared to the price in the base year. Base year is taken as standard year. Price indices are used to measure inflation rate and cost of living, which may vary region to region. Vaughan is considered as inventor of price indeces.

Answer:

The least important is the Option A "The price of a competitor's output". It has no influence in the decision of the manager about the inputs in the production process. The choice of inputs will depend on the technology, prices of the inputs and their marginal productivities.

Explanation:

The least important is the Option A "The price of a competitor's output". It has no influence in the decision of the manager about the inputs in the production process. The choice of inputs will depend on the technology, prices of the inputs and their marginal productivities.

Option B: The technology of the production process could affect the decision about the inputs employed because they are closely related.

Option C: The marginal productivity affect the decision about the inputs because it determines how the productivity can be maximized.

Option D: The prices of the inputs affect the decision because low price inputs (related with their marginal productivity) will be prefer to the high price inputs.

The technology of the production process would have the least amount of influence on a manager's choice of which inputs to employ.

The correct answer is B. The technology of the production process. A manager's choice of which inputs to employ in a production process is usually influenced by several factors, such as the price of a competitor's output, the marginal productivity of the inputs, and the prices of the inputs. However, out of the given options, the technology of the production process would have the least amount of influence on a manager's choice. This is because the technology determines how the inputs are used but does not directly affect the selection of inputs.

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Increase the promotion budget to gain greater awareness

Explanation:

With the decrease in the supply of the hogs in the market, there was an excess demand due to which the price of hogs in the market rose from the previous level.

Explanation:

In the year 2014, the price of the hogs in the market of the United States of America was 58 cents per pound. But with the decrease in the supply of the hogs in the market of the country, the supply curve of the same shifted towards the left side.

This created a situation of excess demand in the country because the supply in the market could not fulfill the supply of the hogs in the market. So this led to the price of the hogs rise. In the year 2015, there fore the price of hogs in the market was 81 cents per pound. This was higher than the price compared to the previous year.

Answer:

Option (B) is correct.

Explanation:

Annual Subscription:

= 6000 × $125

= $750,000

Since, the payment was received for 1 Year, we will recognize 4 months revenue (1 September till 31st December) in the given year:

= $750,000 × (4/12)

=  $250,000

Unearned Revenue as on 31st December:

= Total Payment Received - Revenue Recognized for 4 months

= $750,000 - $250,000

= $500,000

The unearned revenue for Vista newspapers as of December 31 is $500,000, which is the correct choice. This is found by calculating the monthly revenue from the total annual subscriptions and then multiplying it by the remaining eight months of the subscription period.

The question pertains to the accounting concept of unearned revenue, which is relevant when a company receives payment for goods or services that have not yet been delivered or rendered. In this scenario, Vista newspapers sold 6,000 annual subscriptions at $125 each, totaling $750,000 in revenue on September 1. Since subscriptions cover an entire year, as of December 31, four months of the service will have been provided, leaving eight months unearned.

To calculate the unearned revenue as of December 31, we divide the total revenue by 12 months to get the monthly revenue and then multiply by the 8 months of service that will remain unprovided at that date:

Therefore, option b, $500,000, is the correct amount of unearned revenue that will exist as of December 31.

Answer:

With a discounted rate of 10%, the payback period of the project is closest to three years.

Explanation:

To calculate this a Net Present Value (NPV) formula is needed. With a discounted rate of 10%, the NPV is calculated for different project's length (from year 6 to year 1, with the initial investment in year zero). The closest to value zero in NPV will correspond to the year where project payback is achieved. In this case, year 3 is the closest NPV to zero

Answer:

The Sehrish's boss has leadership style of

b. relationship-oriented

Explanation:

Answer:

The correct answer is letter "E": Derived demand.

Explanation:

Derived demand implies the quantity requested to manufacture a good is directly related to the supply requested from the market. If the demand for the good increases, it means the quantity of the materials needed to manufacture that good will increase as well.

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.  

In a medium-run equilibrium, expected and actual inflation rates are equal. Therefore, inflation rates would follow the values assigned to expected inflation. If the interest sensitivity parameter x in the IS relation increases, this will shift the IS curve and alter output levels in the medium run.

In a medium-run equilibrium, the expected inflation rate is equal to the actual inflation rate. Therefore, in scenario a where expected inflation is formed as pe equals p1-12, inflation in the medium-run equilibrium would be the same as this expected rate. Similarly, in scenario b, if the level of expected inflation is pQ, the level of actual inflation in the medium-run equilibrium would again equal this expected rate pQ.

For the IS relation Y = C1Y - T2 + I1Y, r + x2 + G, if the real policy interest rate rn is 2% and x increases from 3 to 5%, the overall interest rate effect on output would increase, leading to a shift in the IS curve and altering the output level in the medium run. This shifts because of the change in x, a parameter affecting the interest rate.

The concepts here echo the notion from the great economist Milton Friedman, who suggested that there exists a temporary trade-off between inflation and unemployment, but no permanent trade-off. This corresponds to the vertical long-run Phillips curve, where the unemployment rate remains consistent with the natural rate of unemployment at various inflation rates.

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Answer:

Option (B) is correct.

Explanation:

Consumer surplus refers to the benefit or surplus that a consumer get from purchasing the product. It is the difference between consumer's willingness to pay and the selling price of the product.

If the outcome of this difference is positive then there will be a consumer surplus and if the outcome of this difference is negative then there will be no consumer surplus.

Total consumer surplus:

= consumer surplus for Jung + consumer surplus for Eddie

= ($85 - $70) + $0

= $15

Eddie has zero consumer surplus because selling price is higher than his willingness price for the jacket.

Answer:

An index fund manager is expected to generate a return that matches the particular index he has chosen.

Explanation:

An index fund manager is required to generate a return that matches a chosen index so as to cover all the expenses relating to the index he is managing.

Answer:

Letter B is correct. Work whenever and wherever they wish, as long as they complete projects on time.

Explanation:

A Results Only Work Environment (ROWE)  is a strategy devised by Jody Thompson and Cali Ressler, which is configured as human resources management whose central objective is that the monetary reward for the work of employees is performed according to their production and not according to the amount of hours worked in a period.

This is a current trend for organizational human resource management, because of the benefits of flexible job making, which gives employees more autonomy and motivation to work from anywhere and organize in the way that suits them, as long as the results are presented. This strategy also benefits the company from reducing overall office maintenance costs.

To record the sale of 3,500 units by Evans Products, you calculate the total cost of goods sold (COGS) by multiplying the number of units sold by the unit cost, resulting in a COGS of $77,000. The journal entry would involve debiting the Sales account and crediting Revenue for the total sales amount, and debiting COGS and crediting Inventory for $77,000.

The question involves the accounting process of recording the sale of goods in a company that uses a process costing system. The unit costs incurred by the Mixing Department are $4.00 per unit, and the costs transferred to the finished goods warehouse are $22 per unit. Since work-in-process inventories are reduced to zero each month, and the sale involves 3,500 units, to record the sale, you'd first need to calculate the total cost of the goods sold (COGS) which would be 3,500 units x $22/unit. Then, you would debit the Sales account and credit the Revenue account for the total sales amount, and debit the COGS account and credit the Inventory account for the total COGS.

Using accounting equations:

Total COGS = Number of units sold x Cost per unit

Total COGS = 3,500 units x $22/unit

Total COGS = $77,000

The journal entry would be:

Debit Sales (for the total sales amount)

Credit Revenue (for the total sales amount)

Debit COGS (for $77,000)

Credit Inventory (for $77,000)

Evans Products records the sale of units by debiting Accounts Receivable or Cash and crediting Sales Revenue for the total sales amount. It additionally debits Cost of Goods Sold and credits Finished Goods Inventory for the cost associated with the number of units sold, in this case, 3,500 units at $22 each.

The subject of this question involves understanding process costing in the manufacturing industry, specifically within a company named Evans Products. The student is asked about the accounting entry related to sales in the context of a company that has a process costing system with two processing departments.

In this scenario, Evans Products has no remaining work-in-process inventories at the end of the month, and the unit costs after processing in the Mixing Department and Finishing Department sum up to $22 per unit. For the sale of 3,500 units, the total cost of goods sold (COGS) will be 3,500 units multiplied by $22, which is $77,000. Assuming the sales revenue per unit is greater than or equal to COGS, the entry to record sales would include a debit to Accounts Receivable or Cash (depending on whether the sale was on credit or for cash), and a credit to Sales Revenue for the total sales amount. Additionally, a debit to Cost of Goods Sold and a credit to Finished Goods Inventory would be recorded for $77,000.

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.  

Answer:

Total= $202,500

Explanation:

Giving the following information:

Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.

To calculate the August cash disbursement, we need to use the following formula:

Cash= total August cash required + cash from July

Cash for August:

August= 210,000*0.75= 157,500

From July= 180,000*0.25= 45,000

Total= $202,500

Answer:

total rate of return on the Bond = 9.40%

Explanation:

given data

coupon bonds  = 5.8%

bonds price =  $1,030

maturity time = 14 year

required return on the bonds = 5.1 percent

solution

we know here market price of the bond is Present Value of Coupon Payments + Present face Value  

so that face Valueof  bond = $1,000

and here annual Coupon Amount will be

annual coupon amount = $1000 × 5.80%

annual coupon amount = $58

and here Market Price of the Bond will be

Market Price of Bond = Present Value of Coupon Payments + Present face Value    ......................1

here Present Value of Coupon Payments  at PVIFA 5.10% and 14 Years

Present Value Annuity Inflow Factor (PVIFA) =  [tex]\frac{1-(1/(1+r)^t}{r}[/tex]  ....2

Present Value Annuity Inflow Factor =  [tex]\frac{1-(1/(1+0.0510)^14}{0.0510}[/tex]

Present Value Annuity Inflow Factor = 9.83566

and

Present Value Inflow Factor (PVIF) 5.10%, 14 Years= [tex]\frac{1}{(1+r)^t}[/tex]   ...........3

Present Value Inflow Factor (PVIF) = [tex]\frac{1}{(1+0.0510)^14}[/tex]

Present Value Inflow Factor = 0.49838

so

Market Price of Bond = ( $58 × 9.83566 ) + ( $1,000 × 0.49838 )

Market Price of Bond = $1,068.85

so total rate of return on the Bond will be

total rate of return on the Bond = [ { Annual Coupon Amount + ( Change in Bond Price ) } ÷ Current Price]  ...............4

total rate of return on the Bond = [tex]\frac{58+(1068.85-1030)}{1030}[/tex]

total rate of return on the Bond = 9.40%

Answer: 2) As per your verbal instruction, changes to your account will post on Tuesday.

Explanation: This sounds the most professional and businesslike.

Hope this helps!   :)

Answer:

3) The changes to your account will post on Tuesday.

Explanation:

The sentence “The changes to your account will post on Tuesday” is short, simple, and to the point. It is written to express, not to impress. The other two options are wordy and unclear. To improve clarity, apply the KISS (keep it short and simple) formula to writing business messages.

Answer:

Option (b) $12,960

Explanation:

Data provided in the question:

Cost = $90,000

Salvage value = $3,600

Useful life = 120,000 miles

Number of miles driven in 2012 = 18,000

Number of miles driven in 2013 = 32,000

Now,

Using the straight line method of depreciation

Rate of annual depreciation = [ Cost - Salvage value ] ÷ Useful life

= [ $90,000 - $3,600 ] ÷ 120,000

= $0.72 per mile

Therefore,

The depreciation expense for 2012

= Rate of annual depreciation × Number of miles driven in 2012

= $0.72 per mile × 18,000

= $12,960

Hence,

Option (b) $12,960

Answer:

B. is able to accumulate tax-free interest earnings on cash values.

Explanation: whole life insurance policy also known as permanent life insurance,is an insurance policy where people who buy the policy are deferred from paying tax,this policy ensure that you pay the same amount of premium throughout the policy,it is a policy that is not termed and it doesn't expire it can last up to 120years.

Answer:

Yes the company should you pursue the project.

Explanation:

This problem requires us to tell whether we should pursue the project or not. The IRR of the project is given in the question and WAAC is required to be calculated. The company should accept the project if IRR (10%) is greater than or equal to company's WAAC.

So let calculate waac first.

WAAC = 80%* 8.5% (100% -21%) + 20% * 11%

          = 5.4% + 2.2 %

          = 7.6%

based on above mentioned rule the company should pursue the project.

Answer:

Option (D) is correct.

Explanation:

It was given that video game is a normal good. We know that there is a positive relationship between the demand for a normal good and income of the consumer, hence, if there is an increase in the income level of the consumer then as a result the demand for a normal good increases which shifts the demand curve for normal good rightwards.

Therefore, this will lead to increase both equilibrium price and equilibrium quantity in the market for video games.

Final answer:

If the income of video game players increases, d) both the equilibrium price and quantity in the market for video games will increase.

Explanation:

Equilibrium price and quantity refer to the point in a market where the demand for a good or service equals its supply, establishing a balance between buyers and sellers. At this equilibrium, the market-clearing price and quantity are determined, ensuring that all units offered by producers are bought by consumers. Changes in demand or supply can shift the equilibrium, leading to adjustments in price and quantity.

In the market for video games, if the income of video game players increases, it will result in an increase in demand for video games. This can be seen as a shift in the demand curve to the right. As a result, both the equilibrium price and quantity will increase.

Xia should make the part because it would be more cost-effective compared to buying the part.

The relevant costs for Xia to make or buy the part include the direct materials, direct labor, overhead, and incremental overhead. Xia believes that making the part would require $7.20 per unit of direct materials, $1.05 per unit of direct labor, and an incremental overhead rate of $0.75 per unit. To calculate the overhead cost, Xia uses a predetermined overhead rate of 245% of direct labor cost.

Therefore, the relevant costs for Xia to make the part would be -

$7.20 (direct materials) + $1.05 (direct labor) + (245% * $1.05) (overhead) + $0.75 (incremental overhead). On the other hand, if Xia were to buy the part, the relevant cost would be $10 per unit.

Comparing the relevant costs, Xia should make the part if the cost of making is lower than the cost of buying. In this case, the cost of making the part is $9.508125 (rounded to 2 decimal places) per unit, while the cost of buying the part is $10 per unit. Therefore, Xia should make the part, as it would be more cost-effective.