To determine the consumer surplus and producer surplus at the market's equilibrium price for Mikado miniature cameras, one must first find the equilibrium by setting the demand equation equal to the supply equation. Then, using the concepts of consumer and producer surplus in economic graphs, calculate the areas below the demand curve and above the supply curve to find the respective surpluses.
Explanation:The student has asked to find the consumer surplus and the producer surplus at the equilibrium price for Mikado miniature cameras. The equilibrium price is the point where the quantity demanded equals the quantity supplied, which can be found by equating the two given equations:
For demand: p = −0.2x² + 220
For supply: p = 0.1x² + 8x + 110
Once the equilibrium price and quantity are found, the consumer surplus is the area below the demand curve and above the market price while the producer surplus is the area above the supply curve and below the market price. These areas form triangular regions on the graph of demand and supply.
A firm is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 200,000 shares of stock outstanding. Under Plan II, there would be 150,000 shares of stock outstanding and $2.15 million in debt outstanding. The interest rate on the debt is 5 percent and there are no taxes. a. Use M&M Proposition I to find the price per share. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value of the firm under each of the two proposed plans?
Answer:
Consider the following calculation
Explanation:
For unlevered firm
Total Number of equity = 200,000
For levered firm
Total number of equity = 150,000
Value of debt = $2,150,000
Under M&M Proposition I, that is there is no rule of tax in economy. So there is not benefit of tax shield on the debt securities. So debt will be same as equity. Only deference between debt and equity M&M Proposition I is the debt has obligation to pay 5% interest per annum.
By using M&M Proposition I, price of equity is calculated below:
Price of equity = $2,150,000 / (200,000 – 150,000)
= $43.00
Hence, by using M&M Proposition I, price of equity is $43.40.
Value of firm under Unlevered firm = $43.00 × 200,000
= $8,600,000
Hence, value of unlevered firm is $8,600,000.
Value of levered firm = ($43 × 150,000) + $2,150,000
= $6,450,000 + $2,150,000
= $8,600,000
Hence, value of levered firm is $8,600,000
A major challenge in designing marketing communications is being able to grab the attention of the target audience in a crowded media field. Which of the following factor(s) contribute to creating this challenge?A. Fragmentation of mass mediaB. Proliferation of alternative ways to reach consumersC. Increasing skepticism of consumers in receiving marketers' messagesD. Desire of consumers to co-create the meaning of brandsE. All of the answers are correct.
Answer:
Letter E is correct. All of the answers are correct.
Explanation:
All of the alternatives cited correspond to marketing communications challenges.
What happens is that we are currently living in the information age, which was potentially established by the use of the internet. The communication relationship between consumer and organization has changed with the creation of new communication media, which generated greater proximity and interaction between the company and the consumer. This is a positive factor that facilitates a greater understanding of the needs of the target audience as well as faster problem solving response and feedback, but the challenges have also increased as marketers have a much larger job of investigating them. find the media most used by the public you want to reach through marketing communication.
The proximity and interaction of new consumer relations, has generated in the consumer a sense of greater participation in the decisions of a business, consumers want to relate to companies that are appropriate to their emotional and social parameters, so the ideal is for organizations to be open. greater dialogue with consumers and consumer trends so that their results are improved, as well as engaging content that engages and strengthens customer relationships, not just empty promotional messages that don't add value to the consumer. Recognizing the right media to establish marketing communication is also an essential parameter for strengthening the relationship with the consumer and, consequently, positive results related to communication.
Which OAuth URL parameter can be used to retain the originally requested page so that a user can be redirected correctly after OAuth authorization?
A. Universal Containers (UC) built integration for their employees to post, view, and vote for ideas in Salesforce from an internal Company portal.
B. When ideas are posted in Salesforce, links to the ideas are created in the company portal pages as part of the integration process.
C. The Company portal connects to Salesforce using OAuth.
D. Everything is working fine, except when users click on links to existing ideas, they are always taken to the Ideas home page rather than the specific idea, after authorization.
All options are correct.
Redirect_uri OAuth URL parameter can be used to retain the originally requested page so that a user can be redirected correctly after OAuth authorisation.
Explanation:
The open standard for token-based authentication on the Internet is OAuth (Open Authorization). OAuth, which is known as ' oh-auth, ' allows third-Party sites like Twitter to use account information on end users, without the user's password being revealed.
The redirect uri is an url used among OAuth services as a place to transmit the admin rights token by means of the redirect web browser.
Once the user authorises an application successfully, the approval manager must return the user to the client either with an authentication code or with an URL access token.
On July 1, 2017, Crane Inc. made two sales.
1. It sold land having a fair value of $915,830 in exchange for a 3-year zero-interest-bearing promissory note in the face amount of $1,252,520. The land is carried on Agincourt’s books at a cost of $597,600.
2. It rendered services in exchange for a 5%, 6-year promissory note having a face value of $402,550 (interest payable annually).
Crane Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 11% interest.
Record the two journal entries that should be recorded by Crane Inc. for the sales transactions above that took place on July 1, 2017. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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.
TJ Industries has 7 million shares of common stock outstanding with a market price of $20.00 per share. The company alsohas outstanding preferred stock with a market value of $10 million, and 100,000 bonds outstanding, each with face value$1,000 and selling at 95% of par value. The cost of equity is 12%, the cost of preferred is 10%, and the cost of debt is6.45%. If US tax rate is 34%, what is the WACC?A. 8.92%B. 9.76%C. 1259%D. 13.43%
Answer:
WACC = Ke(E/V) + Kp(P/V) + Kd(D/V)(1-T)
WACC = 12(140,000,000/159,500,000) + 10(10,000,000/159,500,000) + 6.45(9,500,000/159,500,000)(1-0.34)
WACC = 10.53 + 0.63 + 0.38
WACC = 11.54%
Market value of the company: $
Market value of common stocks (7,000,000 x $20) 140,000,000
Market value of preferred stocks 10,000,000
Market value of bonds (100,000 x $950) 9,500,000
Market value of the company 159,500,000
Explanation:
In this question, there is need to calculate the market value of the company, which is the sum of market value of common stocks, market value of preferred stocks and market value of bonds.
Cost of each stock is given in the question. Thus, WACC is calculated as the aggregate of cost of each stock an the proportion of market value of each stock to market value of the company.
Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500 in legal fees for drafting the LLC’s operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs. How much can Candlewood deduct as organizational expenses? As startup expenses?
Candlewood LLC can deduct $5,100 as organizational expenses and $1,700 as startup expenses.
Explanation:Candlewood LLC can deduct $5,000 as organizational expenses. Organizational expenses are the costs incurred to create a legal entity, such as legal and accounting fees for drafting agreements and obtaining tax advice. However, the deductible amount is limited to $5,000, with any excess costs being amortized over 180 months.
On the other hand, Candlewood can deduct $1,700 as startup expenses. Startup expenses include costs incurred before the business begins operations, such as advertising and employee training. This can be noted as -
LLC may deduct
($9,500 - $5,000)*4/180 $100
= ($5000 + $100)
= $5,100
Deduction for startup - -
= ($5,000 - $4,500)
= $54,000*4/180
= $1,200 + 500
= $1,700
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Purple Corporation makes a property distribution to its sole shareholder, Paul. The property distributed is a house (fair market value of $189,000; basis of $154,000) that is subject to a $245,000 mortgage that Paul assumes. Before considering the consequences of the distribution, Purple’s current E & P is $35,000 and its accumulated E & P is $140,000. Purple makes no other distributions during the current year. What is Purple’s taxable gain on the distribution of the house?
A. $0
B. $21,000
C. $35,000
D. $91,000
E. None of the above
Answer:
D. $91,000
Explanation:
Since the Distributed Property (House) is subject to a liability in excess of basis, the fair market value is treated as not being less than the amount of liability:
Purple has a gain of;
Liability - Basis
$245,000 - $154,000
$91,000
Hence the Taxable Gain would be of $91,000
Dexter Industries purchased packaging equipment on January 8 for $98,000. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $6,000. The equipment was used for 8,980 hours during Year 1, 6,930 hours in Year 2, and 4,090 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ended December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. (Note: For STRAIGHT-LINE ONLY, round the first two years to the nearest whole dollar, then round the third year as necessary. For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar.) 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the three-year life of the equipment?
The best production method based on the initial costs of labor ($100/unit) and capital ($400/unit) is Method 1, with a total cost of $9,000. Even after the cost of labor rises to $200/unit, Method 1 is still the most cost-effective option with a total cost of $14,000.
Explanation:Cost Calculation of Different Production Methods
When assessing the cost of production methods that require different amounts of labor and capital, it is important to calculate the total cost for each method based on the current costs of labor and capital. The cost of labor and capital are given as $100/unit for labor and $400/unit for capital, and the quantity of each required for the three methods is provided.
For Method 1: The total cost is calculated as 50 units of labor multiplied by $100/unit plus 10 units of capital multiplied by $400/unit, which equals $5,000 for labor and $4,000 for capital, resulting in a total cost of $9,000.
For Method 2: The total cost is 20 units of labor at $100/unit and 40 units of capital at $400/unit, amounting to $2,000 for labor and $16,000 for capital, with a total cost of $18,000.
For Method 3: It involves 10 units of labor at $100/unit and 70 units of capital at $400/unit, tallying up to $1,000 for labor and $28,000 for capital, amounting to a total cost of $29,000.
Thus, based on the costs provided, Method 1 is the most cost-effective, being the cheapest option. If the cost of labor rises to $200/unit, then:
Method 1 would cost 50 units of labor at $200/unit plus 10 units of capital at $400/unit, totaling $10,000 for labor and $4,000 for capital, resulting in a total cost of $14,000.
Method 2 would then cost 20 units of labor at $200/unit plus 40 units of capital at $400/unit, which equals $4,000 for labor and $16,000 for capital, yielding a total cost of $20,000.
Method 3 would be 10 units of labor at $200/unit plus 70 units of capital at $400/unit, resulting in $2,000 for labor and $28,000 for capital, which gives a total cost of $30,000.
Therefore, with the increase in labor costs, Method 1 still remains the cheapest and thus the best production method to use.
2014 2015 2016 2017 2018 Stock return 21.25% 14.45% 25.50% 35.70% 11.05% Given the preceding data, the average realized return on BLM’s stock is . The preceding data series represents of BLM’s historical returns. Based on this conclusion, the standard deviation of BLM’s historical returns is .
Answer: Average realized stock = 21.59%,
The preceding data series represents a sample
Standard deviation = 0.7522
Explanation:
Average realized stock = 21.25% + 14.45% + 25.50% + 35.70% + 11.05% = 1.07595/5 = 21.95%
Standard deviation =
21.25% - 21.95% = -7.14% (-7.14%)^2 = 0.509
25.50% - 21.95% = 3.91% (3.91%)^2 = 0.512
35.70% - 21.95% = 14.11% (14.11%)^2 = 1.990
11.05% - 21.95% = -10.54% (-10.54%)^2 = 1.110
_____
Sum = 3.761/5 = 0.7522
The average realized return on BLM’s stock is 21.59%.
The standard deviation of BLM’s historical returns is 0.753134.
What is the average realized return?The average realized stock return can be determined by adding the stock return and dividing it by the number of years.
Average realized stock return = (21.25% + 14.45% + 25.50% + 35.70% + 11.05%) / 5 = 21.59%
What is the standard deviation?
In order to determine the standard deviation, take the following steps:
Subtract the average realized stock return from the stock return for each year and square the result:
2014: (21.25% - 21.59)² = 0.001156
2015: (14.45 - 21.59)² = 0.509796
2016: (25.50 - 21.59)² = 0.152881
2017: (35.70 - 21.59)² = 1.990921
2018: (11.05 - 21.59)² = 1.110916
Add the squares together and divide by 5: 3.76567 / 5 = 0.753134
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The following data are available for a company's manufacturing activities:Beginning Work in Process inventory 5,000 units 75% completed as to direct laborUnits started and completed 15,000 Ending Work in Process inventory 6,000 units 50% completed as to laborIf materials are added when the production process begins and direct labor is applied uniformly throughout the process, what are the equivalent units for direct materials and for direct labor, respectively using the FIFO method of process costing?
Answer:
Equivalent units of Material = 21000
Equivalent units of Labor = 21750
Explanation:
Under the FIFO method, inventory which is purchased and/or processed at the beginning should be sold first and the closing and/or latest inventory remains to be sold for later sales. As far as process costing is concerned it's a costing method used to assign costs to units produced mostly of a similar nature. So the question is asking for the equivalent units for direct material and labor. Equivalent units are amount of partial units produced which are expressed in terms of fully completed units.
On the ending WIP inventory and units started & completed 100% material has been consumed so the equivalent units of direct material would be the total of beginning and ending inventory, see as follows;
Equivalent units of Material = 15000 + 6000
EUM= 21000
Whereas for labor, beginning inventory, units started & completed and ending inventory has consumed 75%, 100% and 50% of labor respectively. Therefor, the equivalent units of labor are as follows;
Equivalent units of Labor = (5000× 75%) + 15000 + (6000× 50%)
Equivalent units of Labor = 21750
On February 1, 2012, Nelson Corporation purchased a parcel of land as a factory site for $250,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2012. Costs incurred during this period are listed below:
Demolition of old building $ 20,000Architect's fees 35,000Legal fees for title investigation and purchase contract 5,000Construction costs 1,290,000(Salvaged materials resulting from demolition were sold for $10,000.)
Nelson should record the cost of the land and new building, respectively, as:
a. $275,000 and $1,315,000.
b. $260,000 and $1,330,000.
c. $260,000 and $1,325,000.
d. $265,000 and $1,325,000.
Answer:
d. $265,000 and $1,325,000.
Explanation:
The computation is shown below:
For land:
= Factory lite + Demolition of old building + Legal fees for title investigation and purchase contract - Salvaged materials resulting from demolition
= $250,000 + $20,000 + $5,000 - $10,000
= $265,000
For new building:
= Architect's fees + Construction costs
=$35,000 + $1,290,000
= $1,325,000
The Pell Grant program of the federal government provides financial aid to needy college students. If the average grant is slated to increase from $4050 to $5400 over the next 5 years "to keep up with inflation," what is the average inflation rate per year expected to be?
Answer:
The average inflation rate per year is expected to be 6,6%.
Explanation:
Inflation refers to the increase in the price of goods and services in a specific period of time. Considering that the statement says that the average grant is slated to increase from $4050 to $5400, you can calculate the average inflation rate per year by calculating the price increase percentage and then dividing that by 5:
($5400-$4050)/$4050= 0,33*100= 33%
33%/5= 6,6%
The newspaper reported last week that Bennington Enterprises earned $34.08 million this year. The report also stated that the firm’s return on equity is 17 percent. The firm retains 75 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What will next year's earnings be? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
Answer:
Consider the following calculation.
Explanation:
Sustainable growth rate =(Retention rate*Return on equity)
=(0.75*0.17)=.1275
=12.75%
Next year earnings =$34.08 million *112.75%
=$38.4252 million
=$384,25,200 .
Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $65.00 million in Year 5, and the FCF growth rate is expected to be a constant 6.5% beyond that point. The weighted average cost of capital is 12.0%. What is the horizon (or continuing) value (in millions) at t = 5?
a. $1,025
b. $1,259
c. $1,136
d. $1,196
e. $1,079
Answer:
d. approximately $1,196
Explanation:
Value of the firm= FCF÷(k−g)
where:
FCF =operating free cash flow
k=discount rate, in this case WACC
g=expected growth rate in FCF
Therefore the horizon value of Gupta Corporation will be
65/(0.12-0.065) = $1,182
For each transaction, indicate whether each account would be classified in the balance sheet as (a) an asset, (b) a liability, or (c) stockholders' equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders' equity as (f) a dividend.Account Classifications Accounts Rent expenseInterest1. _____ Rent expense Cost of rent.2. _____ Interest revenue Interest earned on saving accounts.3. _____ Dividends Cash payments to stockholders4. _____ Land Land used for operations5. _____ Accounts payable Amounts owned for supplier
Answer:
1. e
2. d
3. f
4. a
5. b
Explanation:
1. Rent expense - Cost of rent - It is an expense which is an expense that is incurred during the course of operations of the business.
2. Interest revenue - Interest earned on the saving accounts - It is a Revenue, which is the revenue or the profit that is earned during the course of operations of the business.
3. Dividends- Cash payment to stockholders - It will be classified as Dividend, this is dividend which is paid out of profits of the company to stockholders.
4. Land - Land used for operation - It is classified or recognized as the Asset, as it is a resource which is owned by the company or business and could expect future benefits for its use.
5. Accounts Payable - Amounts owned for supplier - It is acknowledged as the liability, because it is an obligation or liability owed by the business to creditors.
Rent expense is an income statement expense, interest revenue is income statement revenue, dividends are noted in the statement of stockholders' equity, land is a balance sheet asset, and accounts payable is a balance sheet liability.
Explanation:Each account can be classified into different sections of financial statements according to its nature. Here's how each account in the given list would be classified:
Rent expense: This would be classified as (e) an expense in the income statement.Interest revenue: This would be classified as (d) a revenue in the income statement.Dividends: These would be classified as (f) a dividend in the statement of stockholders' equity.Land: Land is an asset, so it would be classified as (a) an asset in the balance sheet.Accounts payable: This is a liability that the company owes, so it would be classified as (b) a liability in the balance sheet.The T-account is a useful tool in accounting to represent the balance between a firm's assets, liabilities, and net worth, where assets always equal liabilities plus net worth. On a personal balance sheet, deposits would typically be seen as assets and loans as liabilities, while for a bank, deposits are liabilities and loans are assets.
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Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its projected earnings are $2 per share. Investors expect a 14% rate of return on the stock.
a.
At what price and P/E ratio would you expect the firm to sell? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Price $
P/E ratio
b.
What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
Explanation:
a.)
First, find the growth rate using the ROE and the retention rate;
g = ROE + retention rate
g = 0.20 * 0.30
g = 0.06 or 6%
Next, find price using Dividend discount model (DDM);
Price = Div/ (r-g)
where Div = next year's dividend
r = required return
g = growth rate ,
Div = earnings * (1- plowback rate)
Div = $2* 0.70 = $1.4
Next, plug in the numbers to the formula above;
Price = 1.4/ (0.14 - 0.06)
Price = $17.50
Price earnings ratio; PE = Price/ earnings per share
PE = 17.50/ 2 = 8.75
b.) Present value of growth opportunities (PVGO)
Use PVGO formula to find the answer. It is as follows;
PVGO = Price - (E/r)
whereby, E= earnings per share = $2
r = investors required rate of return = 14%
Price = $17.50
PVGO = 17.50 + (2/0.14)
= 17.50 + 14.2857
= 31.7857
Therefore, Present value of growth opportunities is $31.79
Anemone Company produces picture frames. During the year, 200,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $3) $6.00 Direct labor (2 hours @ $12) $24.00 Anemone purchased and used 600,000 pieces of wood at $4.00 each, and its actual labor hours were 320,000 hours at a wage rate of $13. What is Anemone's labor rate variance? a.$660,500 F b.$450,000 F c.$320,000 U d.$445,000 U
Answer:
Labour rate variance
= (Standard rate - Actual rate) x Actual hours worked
= ($12 - $13) x 320,000 hours
= $320,000(U)
The correct answer is C
Explanation:
Labour rate variance is the difference between standard labour rate and actual labour rate multiplied by actual labour hours worked.
urrently sells for $69.57 per share and has a beta of .91. The market risk premium is 7.40 percent and the risk-free rate is 2.97 percent annually. The company just paid a dividend of $3.69 per share, which it has pledged to increase at an annual rate of 3.40 percent indefinitely. What is your best estimate of the company's cost of equity?
Answer:
Using Capital Asset Pricing Model
Ke= Rf +β(Market risk-premium)
Ke = 2.97 + 0.91(7.40)
Ke = 9.9%
Using Dividend Growth Model
Ke = Do(1 + g) + g
Po
Ke = $3.69(1 + 0.034) + 0.034
$69.57
Ke = $3.69(1.034) + 0.034
$69.57
Ke = 0.0548 + 0.034
Ke = 0.089 = 9%
The best estimate of the company's cost of equity is 9.9%
Explanation:
Cost of equity is a function of risk-free rate plus the product of beta and market risk-premium according to capital asset pricing model.
Using dividend growth model, cost of equity is a function of current dividend paid, subject to growth rate, divided by current market price plus growth rate.
Sales $484,000 Operating Income ? Total Assets ? Sales Margin (ROS) 10% Capital Turnover ? Return on Investment (ROI) 22% Target Rate of Return (Cost of Capital) ? Residual Income 4,400 Match the unknowns to the correct answer. Correct! Operating Income Correct! Total Assets Correct! Capital Turnover You Answered Target Rate of Return Correct Answer20.0% Other Incorrect Match Options: 100,000
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.
Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.
In the most recent month, 140,000 items were shipped to customers using 5,300 direct labor-hours. The company incurred a total of $15,900 in variable overhead costs.
Answer:
Predetermined overhead rate
= Variable overhead cost
Direct labour hours
= $15,900
5,300 hours
= $3 per direct labour hour
Explanation:
Predetermined overhead rate equals total variable overhead cost divided by direct labour hours, which is $3 per direct labour hour.
Pella Car Wash, Inc. expected to wash 2,000 cars during the month of August. Washing each car was expected to require 0.2 hour of labor. The company actually used 420 hours of labor to wash 1,880 cars. The labor usage variance was $880 unfavorable.Requireda. Determine the standard labor price.b. If the actual labor rate is $17.50, indicate whether the labor price variance would be favorable (F) or unfavorable (U).
Answer:
Standard labour rate = $19.6 (unfavourable).
Explanation:
The labour cost variance can be calculated as below:
Variance = Actual cost - Standard cost
= Actual labour rate x Actual hour of labour - Standard labour rate x Actual hour of labour
Putting all the number together, we get:
880 = 17.5 x 420 - Standard labour rate x 420. Solve the equation, we get: Standard labour rate = 19.6 (unfavourable)
Odell's Furniture has a manufacturing facility in Rigby, Idaho that has an effective capacity of 106 furniture pieces per day and produces 88 furniture pieces per day.What is the facility's efficiency rate?a. Write your answer as a percentage.b. Display your answer to two decimal placesWhat is the facility's utilization rate? a. Write your answer as a percentage.b. Display your answer to two decimal places
Answer:
a. 83.02%
b. 76.52%
Explanation:
The computations are shown below:
a. Facility's efficiency rate = Actual output × 100 ÷ Effective capacity
= 88 × 100 ÷ 106
= 83.02%
b. Facility's utilization rate = Actual output × 100 ÷ Design capacity
= 88 × 100 ÷ 115
= 76.52%
Wooten & McMahon Enterprises produces a product with the following per-unit costs: Direct materials $13.00 Direct labor 8.80 Manufacturing overhead 16.50 Last year, Wooten & McMahon Enterprises produced and sold 825 units at a sales price of $74.80 each. Total selling and administrative expense was $24,200. What was the cost of goods sold last year? (Note: Round answer to two decimal places.)
Calculate the cost of goods sold by adding up the total cost per unit, multiplying it by the number of units sold, and then adding the total selling and administrative expenses. thus answer is $55,812.50
The cost of goods sold last year for Wooten & McMahon Enterprises can be calculated as follows:
Calculate the total cost per unit: $13 (direct materials) + $8.80 (direct labor) + $16.50 (manufacturing overhead) = $38.30 per unit.Multiply the total cost per unit by the number of units sold: $38.30 x 825 units = $31,612.50.Add the total selling and administrative expenses to get the cost of goods sold: $31,612.50 + $24,200 = $55,812.50.Labor markets and government policies are both important factors that influence _
Answer:
The correct answer is: Social mobility.
Explanation:
Social mobility refers to the economic hierarchy movement of individuals or groups within a society. It mainly explains how due to changes in income allows people to move upwards, downwards or sideways within the social stratification. Availability for occupations and government laws are the main factors that influence in people going from one point of the hierarchy to another.
The King Corporation has ending inventory of $386,735, and cost of goods sold for the year just ended was $4,981,315. a. What is the inventory turnover?
Answer:
12.88
Explanation:
Given that,
Ending inventory = $386,735
Cost of goods sold for the year just ended = $4,981,315
The inventory turnover ration is determined by dividing the Cost of goods sold for the year just ended by the Ending inventory.
Inventory turnover:
= Cost of goods sold ÷ Ending inventory
= $4,981,315 ÷ $386,735
= 12.88
Therefore, the inventory turnover for the king corporation is 12.88
Final answer:
To calculate the inventory turnover for King Corporation, divide the cost of goods sold ($4,981,315) by the ending inventory ($386,735), resulting in an approximate turnover ratio of 12.88.
Explanation:
The question relates to the calculation of inventory turnover, which is a key metric in business and accounting. Inventory turnover indicates how many times a company's inventory is sold and replaced over a period, typically a year. To calculate inventory turnover, we divide the cost of goods sold by the average inventory. However, since the average inventory is not provided, we can use the ending inventory as an approximation. Therefore, the formula becomes:
Inventory Turnover = Cost of Goods Sold / Ending Inventory
Using the figures provided:
Inventory Turnover = $4,981,315 / $386,735
This calculation results in an inventory turnover ratio of approximately 12.88. However, for a more accurate figure, one should ideally use the average of the beginning and ending inventory for the period.
High Mountain Lumber (HML) has normal budgeted overhead costs of $115,150 and a normal capacity of 35,000 direct labor hours for the fourth quarter, which are evenly distributed between months. HML allows 0.5 direct labor hours per piece of lumber, and they produced 25,000 pieces of lumber in the second month of the quarter. This took them 13,000 labor hours. If HML had variable overhead costs of $21,000 and fixed overhead costs of $18,000 in the month, what is their total overhead variance?
A : $2,125 F
B : $3,718 U
C : $3,718 F
D : $2,125 U
Answer:
$
Standard total overhead cost (0.5 hr x 25,000 x $3.29) 41,125
Less: Actual total overhead cost ($21,000 + $18,000) 39,000
Total overhead variance 2,125(F)
Standard overhead application rate
= Budgeted overhead
Budgeted direct labour hours
= $115,150
35,000 hours
= $3.29 per direct labour hour
Explanation:
Total overhead variance is the difference between standard total overhead cost and actual total overhead cost. Standard total overhead cost is the product of standard hours per unit, standard overhead application rate and actual output produced. Actual total overhead cost is the aggregate of actual variable overhead cost and actual fixed overhead cost. Standard overhead application rate is the ratio of budgeted overhead to budgeted direct labour hours (normal capacity).
There are two polluting firms in an industry. Each firm is initially generating 200 tons of pollution each year. Each faces the following costs in reducing pollution. Cost of reducing pollution by one ton Firm A $20 Firm B $10 The government has recently set a goal of reducing industrial pollution in the industry by 50% and is considering two policies to achieve this. The first policy would require all firms in the industry to reduce pollution by 50%. The second policy would involve issuing 100 tradable permits to each firm. (With tradable permits, each permit would allow the firm owning it to produce one ton of pollution annually. Firms would be free to buy and sell these permits as they desired. It would be illegal for firms to produce more pollution than the amount of pollution covered by the permits they own.)
Answer:
Permits will be the best option
Explanation:
Assuming the cost per ton of polution reduction follows a linear progression and it can reach zero
The best option will be the permits:
As Firm B will eliminate their polution and sale his permis to Firm A
That occur as Firm B is more efficient in doing this will sale to Firm A
In the end Firm A will have all the permits and continue to produce 200 tons
but Firm B will produce none achieving the goal of 50% reduction with the least economic impact.
This is a market solution which little intervention from the Gvernment
Cost to eliminate 200 polution with permits:
200 x $10 = 2,000
If we force each company to reduce pollution Firm A higher cost will create deadweight-loss
100 x $20 = 2,000
100 x $10 = 1,000
3,000
You are the manager of a small U.S. firm that sells nails in a competitive U.S. market (the nails you sell are a standardized commodity; stores view your nails as identical to those available from hundreds of other firms). You are concerned about two events you recently learned about through trade publications: (1) the overall market supply of nails will decrease by 2 percent, due to exit by foreign competitors; and (2) due to a growing U.S. economy, the overall market demand for nails will increase by 2 percent.Based on this information, should you plan to increase or decrease your production of nails
Answer:
On the basis of given information, I'll increase my production of nails.
Explanation:
The reason for increase in production of nails are as follow:
The fact that overall market supply of nails will decrease by 2 % due to exit by the foreign competitors that means my competition will decrease and it will increase the market share for me.The fact that the overall demand of nails will increase by 2 % means that now I can increase my production in order to meet the supply and demand gap.These two facts show that it is good opportunity to increase the production as the demand has increased and competition has decreased.
Final answer:
Based on the information provided, it would be advisable to increase your production of nails.
Explanation:
Based on the information provided, the events of the decreasing market supply of nails by 2 percent and the increasing market demand for nails by 2 percent are both factors that affect the supply and demand of nails in the competitive U.S. market. With a decrease in market supply, it means that there will be fewer nails available in the market. On the other hand, an increase in market demand indicates that there will be a higher demand for nails.
Considering these two events, it would be advisable for you, as the manager of the small firm, to plan for increasing your production of nails. By increasing your production, you can meet the growing demand in the market and potentially capitalize on the exit of foreign competitors.
The alumni association for our college has gathered a large dataset on graduating seniors. Some of the variables in the data set are gender, major, GPA, and starting salary. They are interested in looking at relationships among these variables. For which of the following pairs of variables would a two sample t-test be appropriate to examine whether there is a relationship between the two variables?
a. GPA and gender
b. Major and salary
c. None of the above because two sample t-tests are for comparing numerical variables.
d. Gender and major
e. GPA and salary
Answer: The answer is a GPA and gender
Explanation:
statistics is a numerical science which deals with the process of collecting, classifying ,analysing and interpreting numerical data. It is based on the following elements which are
Data collection : This is the process of gathering raw data to be measured which can be collected by means of interviewing, observation, questionnaire.
Data classification : This is the process of arranging data into classes based on their relationship to each other.It includes the grouping of the data in order to establish the basis of the proposed studies.
Data Analysis : This is the method of getting out the essential facts from the collected data.this can be achieved through the use of frequency distribution tables, measures of dispersion, percentages, correlation coefficient, t- test and so on
Data interpretation : This is the process of interpreting the collected data in order to determine the kind of relationship that exist between two or more variables. It consists of those method by which judgement are formed one of them is the t- test which can be described as the method of determining the difference between the mean of two variables. While a two sample t - test is the method used to know the difference between the mean of two independent population. Therefore in terms of cases above the two sample t - test would be appropriate to examine the relationship between the two variables of GPA and gender
Final answer:
The two-sample t-tests require two numerical variables. From the given pairs, only GPA and starting salary would be appropriate for this test because both are numerical variables.
Explanation:
The two-sample t-test is a statistical method typically used to examine whether the means of two populations are different from each other. It requires two numerical variables. Therefore, the appropriate choice for the pairs of variables to use a two-sample t-test would be those that include two numerical variables. From the options provided:
GPA and gender would not work because gender is a categorical variable. Major and salary would not work because the major is a categorical variable. Gender and major would not work because both are categorical variables. GPA and salary would be appropriate as both are numerical variables and can therefore be compared using a two-sample t-test.Learn more about two-sample t-test here:https://brainly.com/question/32606144
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Which of the following is not a condition of price discrimination? a. The seller must be a price searcher. b. The seller must be able to distinguish between customers willing to pay different prices. c. It must cost the seller more to service some customers than others. d. Reselling the product must be extremely costly or must not be possible
Answer:
c. It must cost the seller more to service some customers than others.
Explanation:
Price discrimination is when a producer is able to differentiate prices and take advantage of its consumers' surplus.
A price searcher is someone who can influence their prices to change, price discrimination is not possible without being a price searcher.
The seller must also be able to distinguish between different customer groups if not individual customers, hence the distinguish is a must for price discriminators.
Reselling the product must be expensive and hard other wise economic agents would buy the products where there is a lower price and take advantage by selling where differentiated price is high.
However point C, is conditional and it may actually not cost the seller any additional costs to charge different prices.
Hope that helps.
Price discrimination criteria include market power, demand differences recognition ,, and prevention of product resale.
Price discrimination requires a firm to have market power, recognize differences in demand, and prevent resale of the product among consumers. The conditions necessary for price discrimination include being a price setter and segmenting customers with varying elasticities of demand.