4)
What is a rational economic decision?
A)
One in which there are no opportunity costs.
One in which marginal benefits exceed marginal costs.
One in which marginal costs exceed marginal benefits.
D)
One in which the benefits are unknown, but costs are low.

Answer:

a) annual payment = PV of the loan / PV annuity factor

i = 14%

n = 3

PV annuity factor, 14%, 3 periods = 2.3216

annual distribution = $15,000 / 2.3216 = $6,461.06

b)

principal      cash payment      interest paid    principal paid       ending bal.  

15,000         6,461.06               2,100                4,361.06                10,638.94

10,638.94    6,461.06               1,489.45           4,971.61                 5,667.33

5,667.33      6,461.06               793.73             5,667.33                0

c) the interest portion declines with every payment because interest is charged over the principal's balance, and if the principal decreases, then the interest will be lower.

Answer:

c. Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.

Explanation:

Agency problem arises when the interest of shareholders and managers are at odds.

BY increasing the proportion of compensation from stock options, managers would be more interested taking actions that would increase stock value because if stock value increases, managers income would also increase.

Answer:

Investment X

Present value if discount rate is 7% = $50,167.29

Present value if discount rate is 21% = $30,071.84

Investment Y

Present value if discount rate is 7% = $43,462.09

Present value if discount rate is 21% = $31,015.43

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Investment X

Cash flow each year from year 1 to 9 = $7,700

Present value if discount rate is 7% = $50,167.29

Present value if discount rate is 21% = $30,071.84

Investment Y

Cash flow each year from year 1 to 5 = $10,600

Present value if discount rate is 7% = $43,462.09

Present value if discount rate is 21% = $31,015.43

Answer:

Explanation:

Worth of inventory on Dec 31 020 is $320600

Goods sold on consignment will also be included at historical cost and not on the basis of current price because ownership still lies with the company

Total inventory will be thus

320600 + 47700

= $368300 .

Goods to be received later than 31 Dec will not be included in the inventory.

Hence goods purchased worth 21200 will not be included .

Total worth of goods = $368300 .

labor form income property received by households

Answer:

The answer is Rental

Explanation:

Answer:

a) Calculate the payments on the original loan

monthly payment = principal / annuity factor

principal = $500,000

PV annuity factor, 300 periods, 0.52% = 151.59095

monthly payment = $500,000 / 151.59095 = $3,298.349934 ≈ $3,298.35

b) Calculate the current loan balance of the original loan

I prepared an amortization schedule on an excel spreadsheet. The balance after the 120th payment is $384,681.

c) Calculate the loan balance of the original loan 5 years from now.

the balance after the 180th payment = $293,760

d) Using the current, lower interest rate, calculate the present value of the remaining original loan payments

we can use the present value of an ordinary annuity formula to determine the present value of the remaining 60 payments (of $3,298.35 each) and the present value of $293,760.

PV of loan payments = $3,298.35 x 52.0404 (PV annuity factor, 0.479%, 60 periods) = $171,647.45

PV of principal = $293,760 / (1 + 5.75%)⁵ = $222,121.59

total = $393,769.04

e) Assume you refinance, taking out a new loan at the lower rate with an initial balance equal to the current balance of the original loan (i.e. the new loan amount is your answer from part b). Calculate the payments on this new loan.

monthly payment = principal / annuity factor

monthly payment = $384,681 / 142.43323 = $2,700.78

f) Calculate the loan balance of the new loan 5 years from now.

I prepared a second amortization schedule (modified amortization schedule). The principal balance after the 60th payment is $325,235

Answer: cultural preferences.

Answer: cultural preferences

Explanation: I just took the test

Answer:

The indifference point is 290 services.

Explanation:

Current location:

Rent and utilities= $5,093

Salies= $5,924

Insurance= $1,370

Total fixed cost= $12,387

Contribution margin per unit= 116 - 4= $112

New location:

Rent and utilities= $11,944

Salies= $6,992

Insurance= $2,427

Total fixed costs= $21,363

Contribution margin per unit= 151 - 8= $143

First, we need to structure the total income formula (y):

Current location:

y= 112x - 12,387

New location:

y= 143x - 21,363

x= number of services

Now, we equal both formulas and isolate x:

112x - 12,387 = 143x - 21,363

31x =8,976

x=  289.55 = 290 services

The indifference point is 290 services.

Prove:

y= 112*290 - 12,387= $20,093

y= 143*290 - 21,363= $20,107

The difference is due to round up.

Answer:

1) contribution format income statement

                                                       Product                            

                              White               Fragrant             Loonzain            Total

Actual sales        $208,000         $260,000           $182,000         $650,000

Variable exp.        $62,400 (0.3) $208,000 (0.8)    $100,100 (.55) $370,500

Con.  margin        $145,600 (0.7)   $51,200 (0.2)      $81,900 (.45)  $278,700

Fixed expenses                                                                                  $233,480

Operating income                                                                                $45,220

2) break even point in dollar sales = fixed expenses / CM ratio = $233,480 / ($278,700 / $650,000) = $544,535.34

Answer:

The question definition is outlined underneath in the overview section.

Explanation:

(1)

(2)

(3)

The answers are provided from the information given in the summary. Kindly follow the given answers below.

(1)

By identifying their construction companies as family members, the relatives appear to have an impact on the concept of the corporate community, especially when it comes to the Hayek family, which owns about or almost 40% of the Swatch Community. Workers should work together as a team, regardless of their employment status. This generates a robust organizational framework for the Swatch Group, which may be used in a variety of disciplines.

The worldwide culture of the company will be influenced by family ideas that influence the entire enterprise. National culture's improbabilities, on the other hand, have an impact on the lack of common ideals and significance. This hinders communication, trust, and informed contributors inside the digital economy.

(2)

The combination of technology and creativity that has planted the Swatch Culture through its product explains the major cultural monitoring.

The Swatch concept is based on reference implementation, automation, and assembly technologies, as well as possible improvements in branding and advertising. It all started with a high-tech but low-cost watch that those of us who could afford it could afford.

The Swatch Company's commercial success was largely due to its ability to provide cheap watches. The Swatch Group, on the other hand, is constantly inventing and marketing the commodity to technical data scientists. The Swatch Community has evolved from low-cost to high-end watches in every market group.

(3)

A monitor plays an important role in symbolizing a person. It can show a variety of things, like the amount of data accessible, a symbol of money, a fashion accessory, or even a clear signal of forthcoming meetings. When people realize they are late, the concept of time might mean the commercial phrase "time is money," regardless of where they are in relation to the election.

For more information about Swatches, refer below

https://brainly.com/question/14127941

Answer:

case

Explanation:

hope this helps

Answer:

C. rise.

Explanation:

Note: This question is not complete as some data are missing. The complete question is therefore provided before answering the question as follows:

The price elasticity of demand for gizmos is known to be 0.2 (disregarding the negative sign). If sellers of gizmos increase their prices, total revenue from gizmo sales will:

A. fall.

B. stay the same.

C. rise.

D. There is not enough information to determine the change in revenue.

The explanation to the answer is now given as follows:

The price elasticity of demand can be described as the degree of responsivess of quantity demanded of a commodity to a change in the price of that commodity.

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price.

The three major categories of price elasticity of demand and their effect on revenue are as follows:

a. Elastic: Price elasticity of demand is said to be elastic when its absolute value is greater than one (i.e. Ep > 1). This implies that the percentage change in quantity demanded is greater than the percentage in price. That is, the quantity demanded is more responsive to any change in price. As there is negative relationship between price and quantity demanded for a normal good, an increase in price will make the percentage fall in the quantity demanded to be higher than the percentage increase in price. This will therefore result in a fall in total revenue.

b. Unitary: Price elasticity of demand is said to be unitary when its absolute value is equal to one (i.e. Ep = 1). This implies that the percentage change in quantity demanded is equal the percentage in price. That is, the quantity demanded is equally responsive to any change in price. As there is negative relationship between price and quantity demanded for a normal good, an increase in price will make the percentage fall in the quantity demanded to be equal to the percentage increase in price. This will make the total revenue to remain the same.

c. Inelastic: Price elasticity of demand is said to be inelastic when its absolute value is less than one (i.e. Ep < 1). This implies that the percentage change in quantity demanded is less than the percentage in price. That is, the quantity demanded is less responsive to any change in price. As there is negative relationship between price and quantity demanded for a normal good, an increase in price will make the percentage fall in the quantity demanded to be less than the percentage increase in price. This will therefore result in a rise in total revenue.

Based on the explanation above, the price elasticity of demand for gizmos falls into category c. This implies that it is inelastic because its absolute value of 0.2 is less than 1. Therefore, the correct option is C. rise. That is, total revenue from gizmo sales will rise If sellers of gizmos increase their prices.

Answer:

17 percent of general revenue.

Explanation:

The government budgets the general fund with the legally adopted budgets. The operating accounts have budgetary counterparts and they are recorded in the respective accounts. The revenue from property tax usually totals to $526 billion which 1% of state owned tax and 17% of general tax revenue.

A discrete uniform probability distribution is one where each possible value of the random variable is the same. Therefore, the option C holds true.

A uniform probability distribution can be referred to or considered as a distribution wherein the possible outcomes in any form of a given observation are most likely to be equal to each other. Such a distribution can also be expressed with the help of graphical representation.

In a uniform probability distribution, there are chances that each possible value derived out of random variables in an observation turn out to be similar to each other. This is simply because the variables are 'uniform'.

Therefore, the option C holds true and states regarding the significance of uniform probability distribution.

Learn more about uniform probability distribution here:

https://brainly.com/question/14210034

#SPJ2

Answer:

1. schedule of cost of goods manufactured for 20x2

Beginning Work In Process Inventory                                            $ 0

Direct  Materials ($89,000 + $731,000 - $59,000 - $45,000) $716,000

Direct Labor                                                                                 $474,000

Applied manufacturing overhead                                              $577,500

Less Ending Work In Process Inventory                                    ($40,000)

cost of goods manufactured                                                    $1,727,500

2. schedule of cost of goods sold for 20x2.

Beginning Finished goods inventory                     $35,000

Add cost of goods manufactured                       $1,727,500

Less Ending Finished goods inventory                ($40,000)

Cost of Goods Sold                                             $1,722,500

Adjustment :

Less Under-applied Overheads                             ($2,500)

Adjusted Cost of Goods Sold                            $1,720,000

3. income statement for 20x2.

Sales revenue                                                    $2,105,000

Less Cost of Goods Sold                                 ($1,720,000)

Gross Profit                                                          $385,000

Less Expenses :

Selling and administrative expenses               ($269,000)

Net Profit Before tax                                             $116,000

Income tax expense                                            ($25,000)

Net Income after tax                                              $91,000

Explanation:

Calculation of Actual Overheads Incurred

Indirect labor                                                    $150,000

Property taxes on factory                                 $90,000

Depreciation on factory building                    $125,000

Indirect material used                                       $45,000

Depreciation on factory equipment                $60,000

Insurance on factory and equipment              $40,000

Utilities for factory                                             $70,000

Actual Overheads Incurred                            $580,000

Now,

Where Applied Overheads is $577,500 and Actual Overheads is $580,000, we have an underapplied situation of $2,500 ($580,000 - $577,500).

This under-applied amount is closed off to the cost of goods sold.

1. Computation of the cost of goods manufactured for 20x2

Direct Materials = Beginning Raw-material Inventory + Purchases of raw material -  Closing Raw-material inventory - Indirect material used

Direct Materials = $89,000 + $731,000 - $59,000 - $45,000

Direct Materials = $716,000

Particulars                                                               Amount

Beginning Work In Process Inventory                  $0

Add: Direct Materials                                             $716,000

Add: Direct Labor                                                   $474,000

Add: Applied manufacturing overhead                $577,500

Less: Ending Work In Process Inventory              ($40,000)

Cost of goods manufactured                                $1,727,500

2 .Computation of the cost of goods sold for 20x2

Actual Overheads Incurred = Indirect labor + Property taxes on factory + Depreciation on factory building + Indirect material used + Depreciation on factory equipment + Insurance on factory and equipment + Utilities for factory

Actual Overheads Incurred = $150,000  + $90,000  + $125,000 + $45,000  + $60,000 + $40,000 + $70,000

Actual Overheads Incurred = $580,000

Here, since the Applied Overheads is $577,500 and the Actual Overheads is $580,000, then, we have an under-applied value of $2,500 ($580,000 - $577,500)

Particulars                                                               Amount

Beginning Finished goods inventory                    $35,000

Add: Cost of goods manufactured                        $1,727,500

Less: Ending Finished goods inventory               ($40,000)  

Cost of Goods Sold                                                $1,722,500

Adjustment of Cost of Goods Sold

Cost of Goods Sold                                                 $1,722,500

Less: Under-applied Overheads                             ($2,500)

Adjusted Cost of Goods Sold                                 $1,720,000

3. Computation of the income statement for 20x2.

Particulars                                                             Amount

Sales revenue                                                    $2,105,000

Less: Cost of Goods Sold                                 ($1,720,000

Gross Profit                                                        $385,000

Less: Selling and administrative expenses      ($269,000)

Net Profit Before tax                                          $116,000

Less: Income tax expense                                  ($25,000)

Net Income after tax                                            $91,000

See similar solution here

brainly.com/question/16676412

Answer:

The tract of land should be purchased

Explanation:

To determine if the land should be bought, compare the present value of the income that would be derived from selling the lots to the cost of the land

Total cost of the land = $75,000 + $60,000 = $135,000

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 and 2 = 0

Cash flow in year 3 =  $70,000

Cash flow in year 4 =  $85,000

Cash flow in year 5 =  $68,000

I = 12%

Present value = $142,428.68

The tract of land should be purchased because the present value of the cash flows is greater than the cost of the land

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

Answer: See explanation

Explanation:

a. Predetermined overhead rate will be:

= Administrative costs/Number of users

= 739,500/25,500

= $29 per user

Administrative costs applied to Toot will be:

= Number of users x Predetermined overhead rate

= 8900 x 29

= $258100

Administrative costs applied to Tix will be:

= Number of users x Predetermined overhead rate

= 16600 x 29

= $481400

b. For Toot

Revenue: $1,450,000

Less: Engineering cost: $402,500

Less: Administrative cost: $258,100

Profit = $789400

For Tix:

Revenue: $1,200,000

Less: Engineering cost: $521,875

Less: Administrative cost: $481,400

Profit = $196725

Answer:

3.

DR Selling and Administrative Salaries               $240,000

      Manufacturing Overhead                                $150,000

      Work in Process                                                $600,000

CR Wages Payable                                                                      $990,000

4.

Manufacturing Overhead Applied

= 41,000 hours * 16.25

= $666,250

5. Total Manufacturing cost to be added = Raw Materials + Direct Labor + Manufacturing Overhead

= 480,000 + 600,000 + 666,250

= $1,746,250

6.

DR Finished Goods                                             $1,680,000

CR Work in Process                                                                $1,680,000

7.

Ending Balance = Beginning balance + Raw materials + Direct labor + Manufacturing Overhead - Cost transferred to Finished goods

= 18,000 + 480,000 + 666,250 + 84,250 - 1,680,000

= $84,250

9. Predetermined overhead cost - Actual cost = 666,250 - 650,000 = $16,250.

Overapplied as predetermined cost was more than Actual.

12. Finished goods = Beginning balance + Cost transferred from WIP - Cost of goods sold

= 35,000 + 1,680,000 - 1,690,000

= $25,000

13.

Adjusted Cost of Goods sold = Cost of goods sold - Overapplied

= 1,690,000 - 16,250

= $1,673,750

14. Gross Margin = Sales - Adjusted COGS

= 2,800,000 - 1,673,750

= $1,126,350

15. Net Operating Income

= Gross Margin - Selling and Administrative salaries - Selling and Administrative expenses

= 1,126,350 - 240,000 - 367,000

= $519,250

Answer:

$1603.97

Explanation:

We are to find the present value of the annuity

the formula for finding he present value of an annuity is :

A = FV / annuity factor

annuity factor = [(1 + r)^n - 1 ] / r

FV = Future value = $5340

r = interest rate = 10.6%

n = number of years = 3

(1.106)^3 - 1 / 0.106 = 3.329236

a = $5,340 /  3.329236 = $1603.97

Answer:

kindly check explanatio0n section.

Explanation:

PS: The joint probability distribution of the returns of the two assets is given in the attached picture. Also, both stocks are not independent.

So, let us delve straight into the solution to this particular question or problem. From the question, we are given two assets that is, Microsoft (M) stock and Starbucks (S) stock.

Thus, the expected return on Microsoft stock can be determined and the expected return on Starbucks stock can also be determined.

[1]. The expected return on Microsoft stock  = - 10 × 0.15 + 30 × 0.20 + 10 × 0.35 + 20 ×0.30 = 14%.

Using excel, Standard deviation on Microsoft stock = 12.4[ from [tex]\sqrt{(100 * 0.35 + 100 * 0.15 + 900 * 0.20 + 400 * 0.30}[/tex] - √[14]² ]

[2]. The expected return on starbucks stock= 20 × 0.15 + 20 × 0.10 + 20 × 0.2 = 12%.

Using excel, Standard deviation on Starbucks stock = √( 400 × 0.15 + 400 × 0.20 + 400 × 0.15 + 400 × 0.10) - √(12)²

= 9.8

Answer:

$2,145

Explanation:

For the computation of Net Operating Profit After Taxes (NOPAT) first, we need to compute the tax rate which is shown below:-

Tax rate = Tax expense ÷ Earnings before tax

= 700 ÷ 2,000

= 35%

Net Operating Profit After Taxes (NOPAT) = EBIT × (1 - tax rate)

= 3,300 × (1 - 35%)

= $2,145

Therefore for computing the Net Operating Profit After Taxes (NOPAT) we simply applied the above formula.

Answer:

Sheridan Company

Journal Entries:

March 2:

a) Debit Inventory $890,100

Credit Accounts Payable (Crane Company)

To record the purchase of merchandise,  terms 2/10, n/30.

March 6:

b) Debit Accounts Payable (Crane Company) $100,500

Credit Inventory $100,500

To record the record of merchandise.

March 12:

c) Debit Accounts Payable (Crane Company) $789,600

Credit Cash Discount $15,792

Credit Cash Account $773,808

To record the payment to Crane on account.

Explanation:

The amount ($773,808) that Sheridan Company paid to Crane Company is $890,100 minus the inventory return of $100,500 ($789,600) and the cash discount of $15,792 ($789,600 * 2%).

Answer:

Direct material used= $875,000

Explanation:

Giving the following information:

Raw materials inventory, January 1: $ 50,000

Raw materials inventory, December 31: $75,000

Raw materials purchase= $900,000

To calculate the cost of direct materials, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 50,000 + 900,000 - 75,000

Direct material used= $875,000

Answer:

$3.5

Explanation:

As per the situation the computation of earnings per share is shown below:-

Earnings per share = (Net income - Preferred dividends) ÷ Weighted average common shares outstanding

= ($800,000 - $100,000) ÷ 200,000

= $700,000 ÷ 200,000

= $3.5

Therefore for determining the earnings per shares we simply applied the above formula.

Answer:

Explanation:

1. Current contribution margin ratio

= (Selling price - Variable cost)/ Selling price

= (25 - 19.8) / 25

= 0.208

New Direct labor = 5.0 * ( 1 + 8%)

= $5.40

New variable cost = 19.8 + 0.4 = $20.20

To maintain 0.208

0.208 = (Selling price - 20.20) / Selling price

0.208 * Price = Price - 20.20

0.208Price - Price = -20.20

-0.792Price = -20.20

Price = -20.20/-0.792

Price = $25.50

2. Breakeven = Fixed Cost / Contribution Margin

Contribution Margin = Selling price - Variable cost

= 25 - 19.8

= $5.20

= 468,000/5.2

= 90,000 units

3. To earn $260,000;

= (Fixed Cost + 260,000) / Contribution margin

= (468,000 + 260,000) /5.2

= 140,000 units

Answer:

After tax cost of debt = 6.40%

Explanation:

Coupon rate = 5.54%

Years of maturity = 18

NPER = Years of maturity * 2 = 18 * 2 = 36

PMT = (Face value * Coupon rate) / 2 = (1,000 * 5.54%) / 2 = 27.7

Face value = $1,000

Price (PV) = $640

Rate (36, 27.2, -640, 1000) Using excel = 0.049246 = 4.92%

YTM = Rate * 2 = 4.92% * 2 = 0.098492 = 9.85%

Pre-tax csot of debt = 9.85%

After tax cost of debt = 9.85%* (1 - 0.35)

After tax cost of debt = 9.85% * 0.65

After tax cost of debt = 0.098492 * 0.65

After tax cost of debt = 0.0640198

After tax cost of debt = 6.40%

Answer:

External benefits are large. Since,

external benefits of education incorporate both

private, public and social benefits.

Explanation:

.........(◕ᴗ◕✿)...........