Answer:
The law of decreasing marginal utility states that the actual utility obtained from carrying out some specific activity decreases as you perform that activity more often. E.g. you are very thirsty and decide to drink a glass of Coke. The first glass will yield a very high number of utils. If you are still thirsty, you might drink a second glass, but this time the second glass will yield a lower amount of utils. If you keep drinking more Coke, eventually you will be full and will not even enjoy drinking it.
The opposite happens with the marginal cost of carrying out an activity. For example, you like to bike outdoors. Biking outdoors one day per week will cost you X amount (including actual costs of biking plus opportunity costs). But if you decide to do it 2 times per week, your opportunity costs will increase. If you decide to do it 3 or more times per week, you better be good enough to become a professional or have a very tolerant boss. Opportunity costs of biking outdoors more days per week will keep increasing.
In a market economy resources tend to be allocated optimally. Discuss how the interaction of consumers and producers makes this happen
Answer:
In a market economy resources tend to be allocated optimally is discussed below in detail.
Explanation:
In a market economy, resource allocation is circumscribed by the supply and request forces. In other speeches, the allocation of resources is determined using the payment mechanism. The resource allocation in a projected economy, on the other hand, is circumscribed by management or a central administration.
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40hours each per week, the BBBC production process usually produces 2 comma 600uniforms per week at a standard cost of $125each. 72 employees work the first shift and 32the second. The contract price is $240per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production six days per week. When each of the two shifts works 72hours per week, production increases to 3 comma 800 uniforms per week but at a cost of $152 each.
a. Did the multifactor productivity ratio increase, decrease or remain the same? If it changed, by what percentage did it change?
b. Did the labor productivity ratio increase decrease or remain the same? If it changed, by what percentage did it change?
c. Did weekly profits increase decrease, or remain the same?
Answer:
first we must calculate the original value of the goods produced = $240 x 2,600 = $624,000
original cost = $125 x 2,600 = $325,000
original amount of labor used = (72 + 32) x 40 = 4,160 hours
value of goods after change = 3,800 x $240 = $912,000
cost after change = 3,800 x $152 = $577,600
labor used after change = (72 + 32) x 72 = 7,488 hours
a) original multifactor productivity = $624,000 / $325,000 = $1.92 per dollar spent
multifactor productivity after change = $912,000 / $577,600 = $1.58 per dollar spent
multifactor productivity decreased by 17.71%
b) original labor productivity = $624,000 / 4,160 hours = $150 per labor hour
labor productivity after change = $912,000 / 7,488 hours = $121.79 per labor hour
labor productivity decreased by 18.81%
c) change in weekly profits = ($912,000 - $577,600) - ($624,000 - $325,000 = $35,400 increase
A long year-end status report for work is 138 pages long. You need to print 13 copies for a meeting next week. How much is the paper going to cost for those reports
Answer:
The paper that cost for those reports is $3.59
Explanation:
The computation of the paper that cost for those reports is shown below:
= (Number of pages in long × number of copies printed) ÷ (paper sold in ream)
= (138 pages × 13 copies) ÷ (500 pages)
= 1,794 ÷ 500 pages
= $3.59
Hence, the paper that cost for those reports is $3.59
The same is to be relevant
On April 1, Garcia Publishing Company received $2,448 from Otisco, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Garcia Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period
Answer:
the amount of revenue recorded for the first year is $612
Explanation:
The computation of the amount of revenue recorded for the first year is shown below:
= Amount received × given months ÷ total number of months
= $2,448 × 9 months ÷ 36 months
= $612
The 9 months are considered from April 1 To December 31
hence, the amount of revenue recorded for the first year is $612
Manufacturing overhead was applied to production at 60 percent of the direct labor cost of $10,000. The entry under perpetual inventory procedure is
Answer:
Dr Work in Process Inventory for $6,000
Cr Manufacturing $6,000
Explanation:
Preparation of The journal entry under perpetual inventory procedure
Based on the information given if the Manufacturing overhead was applied to production at 60% of the direct labor cost of the amount of $10,000 which means that The journal entry under perpetual inventory procedure is :
Dr. Work in Process Inventory for $6,000
Cr Manufacturing $6,000
(60%*$10,000)
What is policy vacuum? Why is it difficult to fill policy vacuums?
Answer:
A policy vacuums is said to exist when there is no sufficiently standard policy to govern a given situation
Explanation:
filling policy vacuums is not a simple process of applying known lows and principles to entities that can be subsumed under them ... to fill policy vacuums created by computer and information technology with traditional norms may prevent the creation of new ways of doing things
Indirect labor includes: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply labor of employees working directly on the product.unanswered labor of the maintenance employees.unanswered labor of the clerical staff.
Answer:
labor of the maintenance employees
labor of the clerical staff.
Explanation:
As we know that the labor cost would be classified into two cost i.e.
1. Direct labor cost where the cost is directly include in the production process like payment made to assembly worker
2. The indirect labor cost where the cost is not directly include in the production process like salaries made to admin staff
So the above represents the answer
6. Last month seven homes sold in the 91106 zip code and the median home price was $725,000. Did a home actually sell for $725,000
Answer:
Yes
Explanation:
As we know that the median is the middle value so there is 7 months
Now the mid value would be
= (7 + 1) ÷ 2
= 8 ÷ 2
= 4th home
Also the median would be the actual price of the house
So in the given case, the home would be actually sell for the $725,000
Hence, the given statement is true
Beth and Bob Martin have total take-home pay of $5,000 a month. Their monthly expenses total $4,360. Calculate the minimum amount this couple needs to establish an emergency fund.
Answer:
the minimum amount that required to create an emergency fund is $13,080
Explanation:
The computation of the minimum amount that required to create an emergency fund is as follows:
= Monthly expenses × minimum months
= $4,360 × 3 months
= $13,080
hence, the minimum amount that required to create an emergency fund is $13,080
The same is relevant and considered too
The percentage of accounts receivable method multiplies the current accounts receivable balance by the estimated uncollectible percentage to arrive at ________.
Answer: Adjusted allowance for bad debts
Explanation:
The Percentage of Accounts receivable method estimates the allowance for bad debt in a period by multiplying the current receivable balance by an uncollectible percentage which is estimated by the business based on its history with bad debts.
This allowance is then posted to the Allowance for doubtful debt accounts and removed from the Accounts receivable.
Chilly Company is considering investing $110,000 in a new refrigerator, designed to keep food extra crispy. The refrigerator will have a useful life of 10 years, a salvage value of $10,000, and is expected to generate an annual after tax net income of $15,000 in each year of its useful life. Chilly will use the straight-line method of depreciation. What is the accounting rate of return
Answer:
25%
Explanation:
depreciation expense per year = ($110,000 - $10,000) / 10 = $10,000
average annual investment = $60,000 (carrying value after the end of year 5 or half the life of the project)
average net profit per year = $15,000
accounting rate of return = average net profit per year / average investment = $15,000 / $60,000 = 0.25 = 25%
BE6.10 (LO 4) Henry Quincy wants to withdraw $30,000 each year for 10 years from a fund that earns 8% interest. How much must he invest today if the first withdrawal is at year-end
Answer:
$201,302
Explanation:
Calculation for How much must he invest today if the first withdrawal is at year-end
First step is to calculate (FVF-OAn,i) using financial calculation
R = 30,000
n = 10
i = 8%
(FVF-OAn,i)=(6.71008)
Now let calculate the amount to be Invested today using this formula
Investment today = R (FVF-OAn,i)
Let plug in the formula
Investment today= 30,000 (6.71008)
Investment today = $201,302
Therefore the amount he must invest today if the first withdrawal is at year-end is $201,302
Which of the following statements best describes the difference between net income and gross profit?
a. Gross profit considers operating expenses while net income does not
b. Net income considers operating expenses while gross profit does not.
C.Gross profit deducts taxes while net income does not
d. Net income deducts taxes while gross profit does not.
Answer:
Option B
Explanation:
Gross profit is only gotten after subtracting cost of goods and distribution while net income is a company's profits after deducting all its expenses from revenue
A stock sells for $10 per share. You purchase 100 shares for $10 a share (i.e., for $1,000), and after a year the price rises to $17.50. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement
Answer:
300% returns
150% returns
100% returns
Explanation:
given data
stock sells = $10 per share
purchase = 100 shares
price rises = $17.50
solution
Profit per share is =17.5 - 10 = 7.5
Total profit is = 100 × 7.5 = 750
if here margin requirement is 25%
then here you invest = 100 ×10 × 25% = $250
Percent of return = Profit ÷ Capital
return % = (750 ÷ 250) × 100
and get return = 300%
and
if here margin requirement is 50%
then here you invest = 100 ×10 × 50% = $500
Percent of return = Profit ÷ Capital
return % = (750 ÷ 500) × 100
and get return = 150%
and
if here margin requirement is 75%
then here you invest = 100 ×10 × 75% = $750
Percent of return = Profit ÷ Capital
return % = (750 ÷ 750) × 100
and get return = 100%
In a market economy, why must the government play a primary role in dealing with pollution, vaccinations, and medical research
Answer:
Explanation:
The government needs to be on top of these situations because each of these factors plays a huge role in the wellness and size of a population. A market economy needs a certain healthy and large population in order to function correctly. The population needs to produce the products and services while at the same time purchasing those products and services from one another in order for the market cycle to function. If such factors as disease and pollution make people sick it will severely cripple the market economy.
Describe the philosophy and practice of integrated marketing communications (IMC) and the five key features of IMC.
Answer: Profile the identified target market, Using relevant media channels,
Achieve communication synergy–this is speaking with a single voice, Influence target market’s behaviour, Build customer relationships
Explanation:
1. Profile the identified target market. IMC starts with profiling and understanding customer (‘outside-in’) needs, wants, opinions, interest, purchase behaviours and media habits to determine those communication methods that will best serve the customers’ information needs and motivate them to purchase the brand.
2.Using relevant media channels.
That is, carefully select those toolsthat are most appropriate for the communications objective at hand
and relevant to your brand’s target audience.
3 Achieve communication synergy–this is speaking with a single voice.
All brand elements must strive to present the same message and convey that message consistently across diverse message channels, or points of contact.
4.Influence target market’s behaviour.
Marketing communications must do more than just awareness but rather try to move people to action
5.Build customer relationships.
Successful relationships betweencustomers and brands lead to repeat purchasing and perhaps evenloyalty toward a brand. One way to build brand/customer relationships is the use of frequency, loyalty, or ambassador programs.
slader When you decided to start your consulting company, you were previously earning $ 50,000/year working forthe large private consulting company Accenture. When you started the business it cost $ 100,000 to rent anoffice building, purchase computers, furniture and other office equipment. What was your opportunity costof opening your own consulting company
Answer:
Opportunity cost refers to value of sacrifice one make for making a particular decision. Here, the cost of opportunity of leaving a job to start a business will be = Salary lost due to starting a business + Money initially spend on setting up of business + interest lost on initial investment (which you could have otherwise earned had you invested the money elsewhere) - potential profit from the business
Calculating the annual opportunity cost
Salary lost per year = $50,000
Money initially spend = $100,000
Let us assume the interest rate to be 2% and at this rate as i have not spend the money on starting the business. So interest per year = 100,000 * 2 * 1 / 100 = $2000
Thus, opportunity cost = $50,000 + $100,000 + $2000 - potential profit from the business. So therefore, Opportunity Cost is $152,000 - potential profit from the business per year.
can frictional unemployment by itself explain the fact that the late 2010s saw more job openings than unemployed workers
Answer:
Frictional unemployment cannot by itself explain the fact that the late 2010s saw more job openings than unemployed workers.
Instead, frictional unemployment points to the fact that some people are unemployed because they are just entering the labor market for the first time after a long period of absence.
Explanation:
As a part of natural unemployment, frictional unemployment arises when workers search for new jobs or transition from one job to another. During economic recession, there is no increase in frictional unemployment. Typical examples of frictional unemployment are caused by graduating students who join the labor force and are unemployed until they find work and parents who rejoin the workforce after taking sometime to stay at home and raise their children.
You are offered an investment opportunity in which you will receive $25,000 in one year in exchange for paying $23,750 today. Suppose the risk-free interest rate is 6% per year. Should you take this project
Answer:
It is more profitable to receive $23,750 today than $25,000 in one year.
Explanation:
Giving the following information:
Future Value= $25,000
Present Value= $23,750
Risk-free interest rate= 6%
We need to calculate the future value of $23,750. If it is higher, it is more convenient to receive $23,750 today.
FV= PV*(1+i)^n
FV= 23,750*(1.06^1)
FV= $25,175
It is more profitable to receive $23,750 today than $25,000 in one year.
When are winner-take-all markets good for consumers?
At the beginning of the year, Rocket Racer Company's liabilities equal $149,000. During the year, assets increase by $35,000, and at year-end assets equal $215,000. Liabilities decreased $50,000 during the year. What are the beginning and ending amounts of Stockholders’ Equity? Group of answer choices
Answer:
Beginning Equity is $31,000
Ending Equity is $116,000
Explanation:
First, we need to determine the available value
Beginning company's liabilities = $149,000
Ending Company's Asset = $215,000
Increase in Asset during the year = $35,000
Decrease in liabilities during the year = $50,000
Now we need to determine the beginning Assets value
Ending Company's Asset = Beginning company's Assets + Increase in Asset during the year
$215,000 = Beginning company's Assets + $35,000
Beginning company's Assets = $215,000 - $35,000
Beginning company's Assets = $180,000
Now calculate the beginning equity of the company
Beginning Equity = Beginning company's Assets - Beginning company's Liabilities = $180,000 - $149,000 = $31,000
Now calculate the ending comapnies liabilities
Ennding comapnies liabilities = Beginning company's Liabilities - Decrease in liabilities during the year = $149,000 - $50,000 = $99,000
Now calculate the ending equity of the company
Ending Equity = Ending Company's Asset - Ennding comapnies liabilities = $215,000 - $99,000 = $116,000
A corporation's earnings are taxed as corporate earnings and as dividends to the stockholders. This is known as:
Answer:
Double taxation.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
There are three (3) types of taxation used by the government, these are;
1. Progressive taxation: it involves charging individuals having higher incomes a higher percentage of their total income.
- For instance, John pays 30% on $70,000 and Joyce pays 10% on $45.000.
2. Proportional taxation: it involves charging both lower and higher income earners equally in proportion to their income.
- For instance, John pays 20% on $50,000 and Joyce pays 20% on $36,000.
3. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.
- For instance, John pays 15% on $60,000 and Joyce pays 20% on $36,000.
In this scenario, a corporation's earnings are taxed as corporate earnings and as dividends to the stockholders. This is known as double taxation.
Double taxation can be defined as a phenomenon in which an individual or business entity pays income tax twice on the same income source such as corporate earnings and as dividends to their stockholders.
Carmen Company has an asset that cost $5,000 and currently has accumulated depreciation of $2,000. Suppose the firm sold the asset for $2,500 and is subject to a 30% income tax rate. The loss on disposal would be: $500. $350. $2,500. None, because the transaction produced a gain. $650.
Answer:
The loss on disposal would be: $500
Explanation:
The computation is shown below;
= Cost of the asset - accumulate depreciation - sale value
= $5,000 - $2,000 - $2,500
= $500
This $500 represent the short term capital loss
So the $500 would be loss on disposal
Hence, the first option is correct
And, the same is relevant
Apart from the extent of the re-engineering, the principal factors that affect re-engineering costs are: The quality of the software to be re-engineered. The tool support available for re-engineering. The extent of data conversion required. The availability of expert staff. Select one: a. Only 1, 2 are Correct b. Only 2, 3, 4 are Correct c. All 1, 2, 3, 4 are Correct d. All 1, 2, 3, 4 are Incorrect
Answer:
C. All of 1, 2, 3, 4 are correct
Explanation:
Software reengineering can be defined as examining and altering a system so as to reconstitute it to be in a newer form.
The cost factors which are to be considered here are:
1. Quality of this software which is going to be reengineered.
2. Consideration on whether expert staffs are available
3. Tool support availability
4. The extent of the required data conversion.
Therefore all the options are correct
0 1 2 3 $600 $1,200 $1,800 At an annual interest rate of 7%, the present value of this timeline in year 0 is closest to:
Answer:
Total PV= $3,078.22
Explanation:
Giving the following information:
Cash flows:
Cf1= $600
Cf2= $1,200
Cf3= $1,800
Interest rate= 7%
To calculate the present value, we need to apply the following formula to each cash flow:
PV= Cf/(1+i)^n
PV1= 600/1.07= 560.75
PV2= 1,200/(1.07^2)= 1,048.13
PV3= 1,800/(1.07^3)= 1,469.34
Total PV= $3,078.22
The present value of the cash flows at an interest rate of 7% is approximately $3,080.
What is the present value?Present value is the concept that states the amount of money today is worth more than the amount of money in the future. The formula to calculate the present value of cash flows is:
[tex]\rm PV = FV\dfrac{1}{(1+r)^n}[/tex], where PV is the present value, FV is the future value, r is the rate of return and n is the number of periods.
The present value of $600 at the end of first year is:
[tex]\rm PV = 600\dfrac{1}{(1+0.07)^1}\\\\PV = 600\dfrac{1}{(1.07)^1}\\\\PV = \$512.82[/tex]
The present value of $1,200 at the end of the second year is:
[tex]\rm PV = 1,200\dfrac{1}{(1+0.07)^2}\\\\PV = 1,200\dfrac{1}{(1.07)^2}\\\\PV = \$1,048.13[/tex]
The present value of $1,800 at the end of the third year is:
[tex]\rm PV = 1,800\dfrac{1}{(1+0.07)^3}\\\\PV = 1,800\dfrac{1}{(1.07)^3}\\\\PV = \$1,469.34[/tex]
Therefore the total present value of the cash flows is:
[tex]\rm Total\:PV= \$560.75+\$1,048.13+\$1,469.34\\\\\rm Total\:PV= \$3,078.22[/tex]
Therefore the correct option is $3,080.
Learn more about present value here:
https://brainly.com/question/7331341
37.Ralph is known throughout the company as being an old curmudgeon. But, he is without a doubt the most knowledgeable person in the fraud analysis department. The system project you are working on has to have an interface to various fraud applications. How should you prepare for an interview with Ralph
Answer:
Make Ralph understand WHY he needs to be interviewed. Make sure he understands the business value of the proposed system and why his input is vital. Send him questions in advance; talk to somebody who knows him so you can understand him more.
Explanation:
In the given scenario Ralph was described as an old curmudgeon. This means he is an ill tempered person that generally expresses no joy.
However he is without a doubt the most knowledgeable person in the fraud analysis department.
In preparation to interview him there is a need to make him understand why there needs to be an interview. When he sees the need for the interview he will be more engaged.
This can be done by explaining business value of the proposed system and why his input is vital.
Also questions can be sent to him ahead of the interview songs can better prepare
year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. Is the
Answer:
1.84 %
Explanation:
Given,
Forward rate of British pound = $1.60
Spot rate of British pound= $1.63
We have to find forward discount.
Now,
The spot rate is greater than the forward rate then it is forward discount.
Forward discount= [tex]\dfrac{1.63-1.60}{1.63}[/tex]
= 1.84 %
Hence, forward discount percent is 1.84%.
The question is incomplete. The complete question is :
The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. The forward ________ is _______ percent.
Solution :
The future yield of any bond is known as the Forward Rate. It is the interest rate that is applicable to any financial transaction which will occur in the future.
According to the question,
The forward rate of the British pound for one year is = $ 1.60
The spot rate of the British pound is = $ 1.63
Therefore,
[tex]$=\frac{\text{Forward rate}}{\text{spot rate}}-1$[/tex]
[tex]$=\frac{1.60}{1.63}-1$[/tex]
= 0.98 - 1
= -0.018
Thus it is forward discount and the percentage is 1.8 %
Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2009 2008 Total sales 610.1 578.3 Cost of sales (500.2) (481.9) Gross profit 109.9 96.4 Selling, general, and administrative expenses (40.5) (39.0) Research and development (24.6) (22.8) Depreciation and amortization (3.6) (3.3) Operating income 41.2 31.3 Other income --- --- Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) (25.1) (15.8) Pre-tax income 16.1 15.5 Taxes (5.5) (5.3) Net income 10.6 10.2 Price per share $16 $15 Shares outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Stockholders' Equity 126.6 63.6 Total Liabilities and Stockholders' Equity 533.1 386.7 Luther's Operating Margin for the year ending December 31, 2008 is closest to:
Answer:
the operating margin for the year ended is 5.4%
Explanation:
The computation of the operating margin for the year ended is shown below;
Operating Margin = Operating Income ÷ Sales
= $31.3 / $578.3
= 5.4%
By dividing the operating income or earning before interest and taxes from the sales we can get the operating margin
hence, the operating margin for the year ended is 5.4%
g A bank offers to lend you for 1 year on a loan contract that calls for you to make interest payments of at the end of each month and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan
Answer: 12.68%
Explanation:
First find the nominal interest rate per month:
= Interest payment/Loan
= 100/ 10,000
= 1%
Effective annual rate is:
= (1 + Interest rate per quarter)^no. of compounding periods - 1
= (1 + 1%)¹² - 1
= 12.68%
What term is used to refer to the decision about whether to report an item in the financial statements
Answer:
Recognition.
Explanation:
Recognition is a term used to refer to the decision about whether to report an item in the financial statements.
The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.
For instance, company XYZ purchases a property worth $90,000 in June, it was then sold in July for $250,000. Based on the expense recognition principle, the $90,000 cost shouldn't be recognized by company XYZ as an expense until July, when the related revenue would be recognized also. Else, if recognized, its expenses would be overstated by $90,000 in June, and consequently understated to the tune of $250,000 in July.
Additionally, the expense recognition principle helps business owners to calculate their taxes and profits or losses properly.