Answer:
Income will increase by $5 per unit
Explanation:
The income effect in case of the order accepted is presented below:
As we know that
Additional sales per unit $32
Direct material per unit $12
Direct labor per unit $9
And, the incremental variable overhead cost is $6 per unit
Since the fixed cost is the same so it does not affect the effect on income
So, the income effect would be
= $32 - $12 - $9 - $6
= $5 per unit
Since the answer comes in positive which means there is an increase in income
The effect on income when accepting an additional order is that the profit above variable cost will be $4800 with a 4% price change and a new quantity of 960 units.
Your current profit above variable cost is $4800.
Your price will change by 4 percent.
Your new quantity is 960 units.
If you raise the price, the profit above variable cost will remain at $4800.
Bello, Inc., has a total debt ratio of .31.
a. What is its debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is its equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The debt-equity ratio and equity multiplier can be calculated using the given debt ratio of Bello, Inc.
Explanation:The debt ratio is a financial ratio that measures the proportion of a company's total assets that are financed by debt. It is calculated by dividing total debt by total assets. In this case, Bello, Inc. has a total debt ratio of 0.31.
To find the debt-equity ratio, we can subtract the debt ratio from 1. The debt-equity ratio is a measure of the proportion of a company's financing that comes from debt compared to equity. Therefore, the debt-equity ratio for Bello, Inc. is 1 - 0.31 = 0.69.
The equity multiplier is another measure of leverage and is calculated by dividing total assets by total equity. To find the equity multiplier for Bello, Inc., we can divide 1 by the debt ratio (1/0.31 = 3.23).
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Which of the following statements is correct?
A. The demand for flat-screen computer monitors is more elastic than the demand for monitors in general.
B. The demand for grandfather clocks is more elastic than the demand for clocks in general.
C. The demand for cardboard is more elastic over a long period of time than over a short period of time.
D. All of the above are correct.
Answer:
D) All of the above are correct
Explanation:
In general terms, luxurious, or non-necessary items that have many substitutes are more elastic than daily necessities such as food or gasoline.
Flat-screen computer monitors are a luxury item, and a regular-screen monitor works just as well, therefore, if the price of them rises a lot, people can always buy regular monitors. The demand for this product is very elastic.
Same is true for grandfather clocks, which not only are expensive, but also niche, in the sense that they likely only appeal to a small segment of people.
As for cardboards, this product also has substitutes, and the demand for it in the long-term is more elastic because people will have more time to look for those substitutes.
A company produces 1 comma 0001,000 packages of dog treats per month. The sales price is $ 6.00$6.00 per pack. Variable cost is $ 1.50$1.50 per unit, and fixed costs are $ 1 comma 800$1,800 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will increase from $ 1.50$1.50 to $ 1.70$1.70 per unit, and fixed costs will increase by 2020%. At what sales price for the new product will the two alternatives (sell as is or process further) produce the same operating income? (Round your answer to the nearest cent.)
Final answer:
The new sales price that will result in the same operating income after increasing the variable and fixed costs is $6.56 per package, rounded to the nearest cent.
Explanation:
To calculate the new sales price that will yield the same operating income after adding a vitamin supplement to dog treats, we need to consider the change in both variable costs and fixed costs. Currently, the operating income is the difference between the total revenue and total costs (which is the sum of variable and fixed costs).
The company sells 1,000 packages at $6.00 each, so the total revenue is $6,000. The variable costs are $1.50 per unit, amounting to $1,500 in total, and fixed costs are $1,800. After the changes, variable costs will rise to $1.70 per unit, totaling $1,700, and fixed costs will increase by 20%, making the new fixed costs $2,160.
For the two alternatives (original and new products with added vitamins) to yield the same operating income, the increase in total costs (due to increased variable and fixed costs) must be matched by an increase in total revenue, which is achieved by adjusting the sales price accordingly. The formula to find the new sales price is:
New sale price = (Total revenue with original costs + Increase in variable costs + Increase in fixed costs) / Number of units
Substituting the numbers in:
New sale price = ($6,000 + $200 + $360) / 1,000
This results in a new sale price of $6.56 per package, rounded to the nearest cent.
The table below shows some hypothetical data on the costs associated with the use of a liter of gasoline in a European country.
Refining, distributing, and selling of gasoline all take place within this European country.
1. In euros, what is the private cost for an individual of a liter of gasoline in Europe (Ex: If your answer is 3.25 Euros then enter 3.25)?
2. What is the social cost, in euros, of a liter of gasoline?
Cost Euros
Cost of imported oil................................................ 0.5
Cost of refining oil to gasoline............................... 1
Cost of distributing and selling gasoline............... 0.75
Government tax....................................................... 2.5
Cost of pollution from one liter of gasoline........... 2
Answer:
1. 4.75
2. 4.25
Explanation:
1. Private cost is a supplier's or producer's cost of providing goods and services without any external cost.
Private cost:
= Cost of imported oil + Cost of refining oil to gasoline + Cost of distributing and selling gasoline + Government tax
= 0.50 + 1 + 0.75 + 2.50
= 4.75
2. Social cost is private cost plus external cost.
Social cost:
= Cost of imported oil + Cost of refining oil to gasoline + Cost of distributing and selling gasoline + Cost of pollution from one liter of gasoline
= 0.5 + 1 + 0.75 + 2
= 4.25
The stock of Top of the Muffin currently pays a dividend of $2.85. The dividend is expected to grow by 30% per year for the next three years. In year 4 it will increase by $2.40 over the previous year, and after that point it will grow at 2% per year for the foreseeable future. If you require an 10.8% return for investing in this stock, what is a share of the stock worth to you today?
Answer:
Consider the following calculation
Explanation:
Year 1 dividend = 2.85 (1 + 30%) = 3.705
Year 2 dividend = 3.705 (1 + 30%) = 4.8165
Year 3 dividend = 4.8165 (1 + 30%) = 6.26145
Year 4 dividend = 6.26145 + 2.4 = 8.66145
Year 5 dividend = 8.66145 (1 + 2%) = 8.834679
Value at year 4 = D5 / required rate - growth rate
Value at year 4 = 8.834679 / 0.108 - 0.02
Value at year 4 = 8.834679 / 0.088
Value at year 4 = 100.39408
Share price = Present value of cash inflows
Share price = 3.705 / (1 + 0.108)1 + 4.8165 / (1 + 0.108)2 + 6.26145 / (1 + 0.108)3 + 8.66145 / (1 + 0.108)4 + 100.39408 / (1 + 0.108)4
Share price = $84.23
A description of the processes you use to ensure that results meet the specified quality standards is a _____.
a. quality standards plan
b. quality control plan
c. quality process plan
d. quality assurance plan
Answer:
d. quality assurance plan
:
Quality assurance plan is meant to ensure that the final products are matching to required quality. There are four basic steps of the quality assurance process: Plan, Do, Check, and Act.
quality assurance plan
Explanation:
Your firm is considering a project that will cost $ 4.548 million up front, generate cash flows of $ 3.50 million per year for 3 years, and then have a cleanup and shutdown cost of $ 6.00 million in the fourth year.
a. How many IRRs does this projecthave?
b. Given a cost of capital of 10.0 % should this project be accepted?
Answer:
(a) It will have multiple IRRs
(b) The MIRR calculated is 10.18% . Going by MIRR result , this project will only generate returns that is equal to cost of capital(10%) .If there are other avaible more viable projects, it should be rejected ( Please see attached computation).
Explanation:
(a) The multiple IRRs occurs when cash flows change sign and result in more than one value for the IRR.
Application of IRR to value an investment is only suitable when the project has normal cash flows, i.e a negative initial cash flow (i.e initial investment) followed by a series of positive cash flows.
In this scenario, we have negative cash flow of $6m in year 4 which occured after positive cash flow of $3.5m per year from year 1 to 3. This typically make IRR unreliable. To overcome this limitation , we can use Modified Internal Rate of Return (MIRR)
(b) Please see attached for more details.
Final answer:
To calculate the number of IRRs, sign changes in the project's cash flow must be analyzed, potentially leading to multiple IRRs. The project should only be accepted if the IRR exceeds the firm's 10% cost of capital. For multiple IRRs, additional analysis is needed.
Explanation:
The question from your firm concerns the evaluation of a project with specific cash flows, costs, and a cleanup at the end of the project. The Internal Rate of Return (IRR) and the appropriateness of the project given a cost of capital are in question.
To determine how many IRRs this project has, we would need to look at the sign changes in the cash flow. However, this scenario has two changes in cash flow sign (initial outflow to inflows to a final outflow), which can result in multiple IRRs. A more thorough evaluation using a financial calculator or IRR software may be necessary to find the exact number.
For the second part, assessing whether the project should be accepted, we compare the project's IRR to the firm's cost of capital. Assuming the cost of capital is 10%, if the single IRR (if there is only one) is above 10%, the project should be accepted, as it would offer a return greater than the cost of capital. Otherwise, it is to be rejected. If there are multiple IRRs, the decision is more complex and requires additional analysis.
You are a consulting firm intern and your job is to help a client choose investment projects. Your client, RealEstate, is a young and growing commercial and residential real estate firm. After reading through all the related information of those projects, you have compiled the following cash flow projections:
Col1 CF0 CF1 CF2 CF3
Col2 project 1 100 50 50 50
Col3 project 2 -80 40 45 50
Col4 project 3 -70 30 40 50
Col5 project 4 -60 30 40 60
Col6 project 5 -50 25 30 70
CF0 denotes the initial investment. CF1 is the cash flow at the end of the first year. CF2 is the cash flow at the end of the second year, and so on. The units are millions of dollars.
If RealEstate accepts projects with payback periods of 2 years or less, which project should you reject?
(a)Project 1
(b)Project 2
(c)Project 3
(d)Project 4
(e)Project 5
(f)None
Answer:
(f)None
Explanation:
Pay back period is the no of years in which cost of investment is recovered in the form of cash flow.
Project with cash back period of two years is acceptable .
Project 1
initial outlay of fund = 100 million dollar
cash flow in first two years = 50+50 = 100 million dollar
so it is acceptable because it recovers the project cost in first two years .
Project 2
initial outlay of fund = 80 million dollar
cash flow in first two years = 40+45 = 95
so it is acceptable because it recovers the project cost in first two years .
Project 3
initial outlay of fund = 70 million dollar
cash flow in first two years = 30+40 = 70
so it is acceptable because it recovers the project cost in first two years .
Project 4
initial outlay of fund = 60 million dollar
cash flow in first two years = 30+40 = 70
so it is acceptable because it recovers the project cost in first two years .
Project 5
initial outlay of fund = 50 million dollar
cash flow in first two years = 30+25 = 55
so it is acceptable because it recovers the project cost in first two years .
So none will be rejected
Final answer:
Based on the criterion of a two-year payback period, Project 5 should be rejected as it fails to provide a full recovery of the initial investment within this timeframe.
Explanation:
You have asked which investment project RealEstate should reject, if it accepts projects with payback periods of 2 years or less. To evaluate this, we need to calculate the payback period for each project. The payback period is the amount of time it takes for the initial investment to be recovered from the cash flows of the project.
Project 1 has an initial cost of 100 million dollars and provides cash flows of 50 million dollars each year. It takes two years to recover the initial investment, so it meets the criteria.Project 2 starts with a cost of 80 million dollars and generates 40 million dollars in the first year and 45 million dollars in the second year. By the end of the second year, the cumulative cash flow is 85 million dollars, so the initial investment is recovered in less than two years.Project 3 has an upfront cost of 70 million dollars with cash flows of 30 million dollars and 40 million dollars in the first and second years, respectively. The total cash flow after two years is only 70 million dollars, which just breaks even with the initial cost and thus, meets the requirements precisely.Project 4 starts with a cost of 60 million dollars with returns of 30 million dollars in the first year and 40 million dollars in the second. The payback period is less than two years as the cumulative cash flow by the end of the second year is 70 million dollars.Project 5 requires an initial outlay of 50 million dollars and yields 25 million dollars in the first year and 30 million dollars in the second year. With only 55 million dollars of cumulative cash flow after two years, the payback period exceeds two years. Therefore, this project should be rejected.Considering the payback period criterion set by RealEstate, Project 5 should be rejected as it does not provide a full recovery of the initial investment within the two-year period.
U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 will be made one year from now. What will the account balance be three years from now if the account pays 4.85 percent interest, compounded annually?
Final answer:
The account balance three years from now will be the sum of the future values of three separate deposits, each calculated using the formula for compound interest with an annual rate of 4.85%, and accounting for the different times each deposit will have been compounding.
Explanation:
Calculating Compound Interest for Multiple Deposits
To determine the account balance three years from now with given details on multiple deposits and annual compound interest, we'll treat each deposit separately and sum the future values.
First deposit: $3,200, made two years ago, will have compounded for a total of 3 years at 4.85% interest when we reach the 3-year mark from now. Its future value (FV) is calculated using the formula FV = P(1 + r)^n, where P is the principal amount, r is the annual interest rate, and n is the number of compounding periods.
FV for the first deposit = $3,200 * (1 + 0.0485)^3
Second deposit: $5,000, made today, will have compounded for 3 years at 4.85% interest. Its future value is:
FV for the second deposit = $5,000 * (1 + 0.0485)^3
Third deposit: $3,500, will be made one year from now, and will have compounded for 2 years at 4.85% interest. Its future value is:
FV for the third deposit = $3,500 * (1 + 0.0485)^2
Adding the future values of all three deposits will give us the total account balance three years from now.
___ integrity tests indirectly estimate employee honesty by measuring psychological traits.
Answer:
Personal Based
Explanation:
The integrity of individuals can be tested by employers' pre-employment inspection. Integrity tests are used to assess whether a potential candidate's integrity is acceptable in terms of theft and ineffective business behavior. These tests can focus on recent staff decisions.
Personality based integrity tests include items that assess personality traits that are associated with ineffective business behavior. The test items are looking for reliability, social consistency, excitement and conscience. Honesty, the largest identifier of personality traits, seems to be helping to predict identity in employment.
The Prime Minister of Richlandia hires you as an economic consultant. He is concerned that the output level in Richlandia is too low and that this will cause unemployment to rise. He feels that it is necessary to increase output by $20 billion. He tells you that the MPC in Richlandia is 0.75. Which of the following would be the best advice to give to the Richlandian Prime Minister?
A) increase government purchases in Richlandia by $15 billion
B) reduce taxes in Richlandia by $10 billion
C) increase government purchases in Richlandia by $5 billion
D) reduce taxes in Richlandia by $4 billion
Answer:
A
Explanation:
The best advice given to the Richlandian Prime Minister is to increase government purchases in Richlandia by $5 billion. Option (c) is correct.
What do you mean by Output?
Any data that a computer or other electronic device processes and sends out is referred to as output.
Richlandia needs to pursue an expansionary fiscal strategy because it is struggling with unemployment and wants to boost its output by $20 billion. This can be done, for example, by increasing government purchases. Government spending boosts the economy's ability to produce goods and services, which facilitates the creation of jobs. This results in a multiplier effect, which causes the economy's income level to increase several times over. This can be represented mathematically as follows:
Given:
MPC = 0.75
Targeted change in income = $20 billion.
Government expenditure multiplier = Change in Income/ Change in government expenditure = 1/(1-MPC)
Change in Income = Change in Government Expenditure × 1/ (1-0.75)
$20 = Change in Government Expenditure × 1/0.25 $20 = Change in Government Expenditure × 4
Change in Government Expenditure = $20/ 4 = $5 billion.
Therefore, Option (c) is correct. The government expenditure must increase by $5billion in order to increase the income/ output in the economy by $20 billion.
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ABC Manufacturing produces a product that includes four tasks: cutting, drilling, sanding and painting. The production supervisor wants to know the cost of each task for this months production run of 1,000 units. She has identified several costs that must be allocated to these tasks including: $50,000 of depreciation on manufacturing equipment, $40,000 of utilities, $30,000 of rent and $2,000 of supplies. She has chosen to distribute all these costs to the four tasks based on machine hours. Cutting these 1,000 units required 900 hours, drilling them required 300 hours, sanding 800 hours and painting 400 hours. What is the weight of base?
Answer:
2400
Explanation:
Data provided in the question:
Cost allocated to Depreciation on manufacturing equipment = $50,000
Cost allocated to Utilities = $40,000
Cost allocated to Rent = $30,000
Cost allocated to supplies = $2,000
Required machine hours for cutting = 900
Required machine hours for drilling = 300
Required machine hours for sanding = 800
Required machine hours for painting = 400
Now,
Since the distribution is based on the machine hours
Therefore,
Weight of base = Total machine hours required
= 900 + 300 + 800 + 400
= 2400
Rework problem 27 in section 1 of Chapter 7 of your textbook, about the greenhouse operator, using the following data. Assume that each Type 1 layout uses 36 tulips, 24 daffodils, and 8 flowering shrubs; that each Type 2 layout uses 12 tulips, 42 daffodils, and 7 flowering shrubs; and that each Type 3 layout uses 22 tulips, 52 daffodils, and 5 flowering shrubs. Assume also that the greenhouse operator has on hand 1110 tulips, 890 daffodils, and 94 flowering shrubs. Assume also that the profit on each Type 1 layout is $85.00, the profit on each Type 2 layout is $40.00, and the profit on each Type 3 layout is $90.00.
How many layouts of each type of should the greenhouse operator plant in order maximize its profit?
Answer:
one of the first
then sixteen of the third.
none of the second
Explanation:
We can solve by hand using legrande multiplier
and derivate or we can use the solver tool of excel:
1) we build up a table on excel with the data for each layout
Then, we use solver.
We declare the quantity of each unit as out variable
the total profit as our goal to maximize
we stablish the restrictions based on our inventory at hand
And excel determinates that 16 of the third layout and one of the first layout will yield the greater profit
SOLVER
Q tulips daffodils flowerings PROFIT per layout
1 36 24 8 84
0 12 42 7 40
16 22 52 5 90
Totals 388 856 88
used (16 x 22 + 36) (16 x 52 + 24) ( 16 x 5 + 8)
Total profit: 1524
(16 x 90 + 84)
After conducting a market research study, Magnificent Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $270. The annual target sales volume for interior doors is 29,000. Magnificent has target operating income of 40% of sales
Answer:
Target sales revenue = $7,830,000
Explanation:
given data
target price = $270
annual target sales volume = 29,000
target operating income = 40%
to find out
Target sales revenue
solution
we will get here Target sales revenue that is express as
Target sales revenue = target price × annual target sales volume .................1
put here value we get
Target sales revenue = $270 × 29000
Target sales revenue = $7,830,000
At the beginning of the year, you invest $10,000 in an S&P 500 index fund. This fund charges an annual fee of 0.1% of your end-of-year assets at the end of the year. Your friend invests $10,000 in an actively managed fund that charges 1.4% of end-of-year assets at the end of the year. Before fees are taken into account, the index fund is up 9.0% at the end of the year while the actively managed fund is up 9.5%. After fees, how does your performance compare to your friend’s?
Answer:
we can say that we are are $92.40 richer
Explanation:
given data
invest = $10,000
annual fee = 0.1%
index fund = 9.0%
friend invests = $10,000
charges = 1.4%
actively managed fund = 9.5%
to find out
how does your performance compare to your friend’s
solution
we get here both performance and than compare by subtract them by each other
first we get here our performance that is = $10,000 × (1 + 9%) × (1-0.1%) .....1
and friend performance that is $10,000 × (1 + 9.5%) × (1 - 1.4%) ..............2
now subtract equation 1 by 2
= $10,000 × (1 + 9%) × (1-0.1%) - $10,000 × (1 + 9.5%) × (1 - 1.4%)
= $92.40
so we can say that we are are $92.40 richer
Qualcomm, a high-tech company headquartered in San Diego, owns the rights to several of the key components that permit cell phones to work. Instead of selling cell phones itself, Qualcomm grants permission to many companies to use specific forms of its intellectual property in exchange for monetary compensation. Qualcomm in engaging in an external growth strategy referred to as_______________.
Qualcomm in engaging in an external growth strategy referred to as licensing.
Explanation:
External development (or inorganic growth) approaches include growing the output or scope of companies through capital and capabilities that the organisation itself does not build internally. Instead, the merger with / acquiring or partnership with other companies generates these resources.
These assets are then purchased by merging/acquiring or partnering with other businesses. Therefore, external expansion approaches can be divided up between the M&A (M&A) and Strategic Alliance (e.g. partnerships) strategies.
Qualcomm is engaging in an external growth strategy referred to Licensing. Qualcomm uses a strategy called licensing by allowing other companies to use its intellectual property for monetary compensation. This approach helps Qualcomm expand its reach without directly selling products.
Qualcomm, a high-tech company headquartered in San Diego, engages in an external growth strategy referred to as licensing. By granting permission to other companies to use specific forms of its intellectual property in exchange for monetary compensation, Qualcomm utilizes this strategy to expand its influence and revenue without directly selling cell phones.Licensing allows Qualcomm to capitalize on its technological advancements and patents while leveraging other companies' manufacturing and distribution capabilities. This strategic move not only provides a steady income stream from royalties but also maintains Qualcomm's presence and importance in the cell phone industry.In A Knight's Tale, three friends are deciding what to do with 15 silver coins they won in a jousting tournament. They can spend their winnings immediately and live the good life for a while, or they can spend the money on training for the next tournament. They ultimately decide to spend most of the winnings on training for the next tournament. What does their decision represent? More than one choice may be correct. Correct Answer(s) Drag appropriate answerfs) here the only possible decision investment trade-off of present for future benefits consumption of consumer goods Incorrect Answer(s)
Answers:
Correct answer:
1. Investment
2. Trade-off of present for future benefit
Incorrect answers:
1. The only possible decision
2. The consumption of consumer goods.
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:
Growth rate = 12.75%
Next year earnings = $38,425,200
Explanation:
Data provided in the question:
Earnings = $34.08
Firm’s return on equity = 17%
Retention rate = 75%
Now,
Growth rate = [ Retention rate ] × [ Return on equity ]
= 0.75 × 0.17
= 0.1275
or
= 0.1275 × 100%
= 12.75%
Next year earnings = Earnings × ( 1 + Growth rate )
= $34.08 million × ( 1 + 0.1275 )
= $38.4252 million
= $38,425,200
In a status report, executives want to know not only where we are today, but also where we will end up. Calculating where we will end up financially is not as easy as it sounds. Selecting the wrong formula can leave the executives and customers with a faulty impression. There are several formulas available for the calculation of the estimated cost at completion (EAC). For simplicity, consider the following three formulas:
EAC = (ACWP/BCWP) x (budget at completion)
EAC = ((ACWP/BCWP) x (BCWS for work completed and in progress)) +
(planned or revised planned costs of work packages not yet begun)
EAC = (actual to date) + (all remaining work, including work in progress,
to be completed at the planned or budgeted costs)
a. Using the table below, determine the value of EAC for each of the three formulas. Assume that A, B, and C are the only work packages in the project, and BCWS(Total) is the total value for PV for each work package rather than PV for the reporting period. Use the following formula for calculating EV:
EV = (% Complete) x BCWS(Total)
Activity % Complete BCWS(Total) ACWP
A 100 1000 1100
B 50 1000 800
C 0 1000 0
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
A company is planning to spend up to $10,000 on advertising. It costs $3,000 per minute to advertise on television and $1,000 per minute to advertise on radio.
If the company buys x minutes of television advertising and y minutes of radio advertising, its revenue in thousands of dollars is given by:
f(x,y) = -2x^2 - y^2 + xy + 8x + 3y
Find the values of x and y that maximize the firms revenue while staying within its advertising budget.
Answer:
The company should hire 2 min in television and 3 min in radio.
Explanation:
This is a maximization problem. The first thing to do is to set the main equation given and to define the constrainsts. In this case the constraints are: 3x+1y ≤ 10, x ≥ 0, y ≥ 0 x and y are integers (since you only can hired entire minutes). An interation process with possible x,y combinations is the proper approach. If you do not use solver (Excel microsoft), you have to prove every x,y possible combination and visually identify the max outcome for revenues
To find the values of x and y that maximize the firm's revenue while staying within the advertising budget, we can solve the quadratic revenue function subject to the advertising budget constraint. The constraint can be rewritten as an equation and expressed in terms of y. The derivative of the revenue function can be set to zero to find the optimal values of x and y.
Explanation:To maximize the firm's revenue while staying within its advertising budget, we need to find the values of x and y that maximize the revenue function f(x, y) = -2x^2 - y^2 + xy + 8x + 3y subject to the constraint 3000x + 1000y ≤ 10000. This is an optimization problem that can be solved using calculus and the method of Lagrange multipliers.
First, let's write the constraint as an equation: 3000x + 1000y = 10000. We can rearrange this to simplify: 3x + y = 10. We can then solve this equation for y: y = 10 - 3x.
Next, we substitute this expression for y into the revenue function. We get a quadratic function in terms of x: f(x) = -2x^2 - (10 - 3x)^2 + x(10 - 3x) + 8x + 3(10 - 3x).
Now, we can take the derivative of f(x) with respect to x, set it equal to zero, and solve for x. By substituting this value of x back into the equation y = 10 - 3x, we can find the corresponding value of y. These values of x and y will represent the maximum revenue while staying within the advertising budget.
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Kevin is the CEO of MegaVision Inc. He has a vision for the company's future. To start, he has to admit that keeping a product with few options while charging prices higher than the competition was a mistake. Instead, he needs to convince employees that they need to adapt to the current market by increasing product options while offering more price tiers. Kevin plans to give a group of employees the responsibility of redesigning the product. Kevin is a leader who is acting as a:
a. personal compact.
b. change agent. c. spiritual guru.
d. negotiator.
Answer: B - Change Agent
Explanation:
A change agent any person or group of persons within or outside an organisation that facilitates a change in the way things are done to effect a positive impact on that organization.
A change agent motivates, coordinate and acts as a catalyst for change in an organization.
A change agent must be patient, a leader, be knowledgeable and must have a clear vision of the kind of change to be effected.
Gonda, Herron, and Morse is considering possible liquidation because partner Morse is personally insolvent. The partners have the following capital balances: $60,000, $70,000, and $40,000, respectively, and share profits and losses 30%, 45%, and 25%, respectively. The partnership has $200,000 in noncash assets that can be sold for $150,000. The partnership has $10,000 cash on hand, and $40,000 in liabilities. What is the minimum that partner Morse's creditors would receive if they have filed a claim for $50,000? Please show the work.
A. $0.
B. $27,500.
C. $45,000.
D. $47,500.
E. $50,000.
Answer:
B. $27,500.
Explanation:
The computation of the minimum amount Morse receive is shown below:
= Morse capital balance - claim amount filed × his share
= $40,000 - $50,000 × 25%
= $40,000 - $12,500
= $27,500
Simply we deduct his share of claim amount form the liabilities amount so that the correct amount can come
All other information which is given is not relevant. Hence, ignored it
The following information relates to last year's operations at the Legumes Division of Gervani Corporation:
Minimum required rate of return 12 %
Return on investment (ROI) 15 %
Sales $ 900,000
Turnover (on operating assets) 3 times
What was the Legume Division's net operating income last year? Multiple Choice
a. $108,000
b. $135,000
c. $36,000
d. $45,000
Answer:
The Legume Division's net operating income last year was d. $45,000
Explanation:
Turnover (on operating assets) = Total Sales/ Operating assets
From the formula,
Operating assets = Total Sales/Turnover (on operating assets) = $900,000/3 = $300,000
Return on investment (ROI) is calculated by using following formula:
ROI = Net income/Total investment
Net Income = ROI x Total investment
At the Legumes Division of Gervani Corporation, Total investment = Operating assets = $300,000
Net Income = 15% x $300,000 = $45,000
The Legume Division's net operating income last year was $45,000. This was found by using the formula for ROI and rearranging for net operating income, which we determined to be 5% of the total sales ($900,000).
Explanation:To answer the question about the Legume Division's net operating income last year, we need to use the given Return on Investment (ROI) and data about sales and turnover. ROI is calculated as net operating income divided by total assets. However, we also know in this case that turnover (the ratio of sales to operating assets) is 3 times.
Given that
ROI = Net operating income / Total Assets,Turnover = Sales / Total Assets,we can say that ROI = Turnover × Margin, where Margin is the net operating income as a proportion of sales. In this question, we know that ROI = 0.15 and Turnover = 3. So, we can solve for margin:
0.15 = 3 × Margin.
Which shows that Margin = 0.15 / 3 = 0.05. Hence, to find the net operating income, we multiply the Margin by Total Sales:
Net Operating Income = 0.05 × $900,000 = $45,000, which corresponds to answer choice (d).
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The __________________ is a formal affair that promotes fellowship and esprit de corps and celebrates the conclusion of an important event.
Answer:
graduation ball
Explanation:
Throughout the course the student committee prepares the theme and organization of the event. Prom is a gala party that is usually attended as a couple. Normally the girls get ready for the occasion, take care of the makeup, the hairstyle and dress long. The boys wear tuxedos, suits or jackets with accessories that match the color of the girl's suit.
The boys go to pick up their partners in their homes and they give them a flower that they will wear on their wrist all night. Once the photos are taken, they leave for the party in a limousine shared with other friends of the school.
Before the dance, a group of friends usually goes to dinner at a good restaurant from which they go to the dance that is normally held in the hall of a hotel or in the sports center of the school.
During the party catering is offered with food and drinks, the punch is famous and very popular. Years ago it was customary to hire bands to put live music, now it is normal to have a dj.
The graduation ball serves as formal affair that promotes fellowship and esprit de corps.
What is graduation ball?Graduation balls is the event in the student calendar, which involves celebration of the end of your final year exams .
It is an event that is used to celebrates the conclusion of an important deed.
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Multiple Choice Question 91 Equipment was purchased for $147000. Freight charges amounted to $4000 and there was a cost of $19000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $34000 salvage value at the end of its 5-year useful life. Depreciation Expense each year using the straight-line method will be ____ .
Answer:
$27,200
Explanation:
Data provided in the question:
Purchasing cost = $147,000
Freight charges = $4,000
Foundation and installation charges = $19,000
Salvage value = $34,000
Useful life = 5 years
Now,
Total cost of the equipment
= Purchasing cost + Freight charges + Foundation and installation charges
= $147,000 + $4,000 + $19,000
= $170,000
using the straight line method of depreciation,
we have
Annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $170,000 - $34,000 ] ÷ 5
= $27,200
(a) If the demand equation is pq=k for a positive constant k, compute the elasticity of demand.
(b) What does your answer to part (a) mean in terms of the revenue function?
Choose all that apply.
1. All prices are critical points of the revenue function.
2. Revenue is increased by lowering the price.
3. Revenue is increased by raising the price.
4. Revenue does not change with changes in the price.
Answer:
a.Elasticity of demand is p = k/q (an inverse relationship between the price and quantity)
b.My answer in part (a) means that an increase in the price of the item will lead to a decrease in its demand, hence the following applies
1.All prices are critical points of the revenue function.
2.Revenue is increased by lowering the price
Sophie made pies and sold them from her food trailer at businesses. This is an example of a(n)A. direct marketing channel.B. distribution center.C. simplified transaction.D. wholesale operation.E. indirect marketing channel.
Answer:
Letter A is correct. Direct marketing channel.
Explanation:
A distribution channel is the most effective way a company decides to get its products to the end consumer at the right place at the right time. Intermediaries or business chains can be used to get the good to the customer. Some examples of distribution channels are: manufacturer, internet, retailers and shipping centers. Distribution channels can be direct or indirect.
In the case of the above question, Sophie's sales occurred through a direct distribution marketing channel, because this is configured as the one where the consumer can purchase the product or service direct from the manufacturer, there are no intermediaries for the product to reach the final customer. And proper transportation or logistics teams are also used to effectively deliver directly.
Which employee labor rate is typically used to produce a project budget?Select an answer:A. salariesB. billable ratesC. burdened ratesD. salaries plus bonus
The correct answer is C. burdened rates, which include salaries and additional costs such as benefits and taxes, providing a comprehensive view of employee costs for accurate project budgeting.
Explanation:The question asks which employee labor rate is typically used to produce a project budget. The correct answer is C. burdened rates. Burdened rates include not only the salaries of employees but also additional costs associated with employment, such as benefits, taxes, and other overhead expenses. When budgeting for a project, it's critical to consider these complete costs to ensure the budget accurately reflects the true cost of utilizing labor.
This is because the burdened rate gives a more comprehensive picture of what an employee costs an organization beyond just their salary or hourly wage. Including these costs in project budgets helps businesses understand the full financial impact of their labor force on specific projects, ensuring more accurate planning and resource allocation.
Brothers Breads has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 daysa. 31 daysb. 34 daysc. 38 daysd. 42 dayse. 46 days
Answer:
Option (D) is correct.
Explanation:
Given that,
Inventory conversion period = 50 days
Average collection period = 17 days
Payables deferral period = 25 days
Cash Conversion cycle:
= Inventory Conversion Period + Average collection Period - Payables deferral Period
= 50 days + 17 days - 25 days
= 42 days
Therefore, the firm's cash conversion cycle is 42 days.
Currie Company borrowed $13,000 from Sierra Bank by issuing a 10% three-year note. Currie agreed to repay the principal and interest by making annual payments in the amount of $4,321. Based on this information, what is the amount of the interest expense associated with the second payment? (Round your answer to the nearest dollar.)
To find the interest expense of the second payment, calculate the remaining balance after the first payment, then apply the 10% interest rate. Approximately $998 of the second payment is interest expense.
To calculate the interest expense associated with the second payment, we need to establish the balance of the loan after the first payment. Currie Company borrowed $13,000 at a 10% annual interest rate, and agreed to make annual payments of $4,321.
Here's a step-by-step breakdown of how we calculate the interest expense for the second payment:
First, calculate the interest for the first year by multiplying the principal by the interest rate: $13,000 times 10% = $1,300.
Subtract the first year's interest from the first annual payment to find out how much of the payment is applied to the principal: $4,321 - $1,300 = $3,021.
Subtract the principal repayment from the original loan amount to get the remaining balance: $13,000 - $3,021 = $9,979.
Calculate the second year's interest by multiplying the remaining balance by the interest rate: $9,979 times 10%
(approximately $998, but this amount will vary slightly depending on how exactly the bank rounds the cents in their calculation).
The second payment will again include this interest expense, so approximately $998 of the second annual payment of $4,321 will be interest expense.
Therefore, the interest expense for the second payment is approximately $998, rounded to the nearest dollar.