The answer to the question An export subsidy usually is that it "discourages domestic buyers from importing substitute products at lowers the price paid for a product by foreign buyers relative to the price that domestic consumers pay for the subsidized product."
What is an export subsidy? An export subsidy is a government incentive that provides financial support to domestic businesses that export their products. It is intended to give domestic producers a competitive edge by lowering the price of their products in foreign markets. As a result, it stimulates domestic exports by assisting companies that wish to enter international markets. Export subsidies can take various forms, including cash incentives, tax exemptions, and grants. How do export subsidies work? Export subsidies are used to support domestic producers by lowering the price of their products in foreign markets. This is accomplished by providing financial assistance to exporters, which reduces their production costs and allows them to sell their goods for a lower price in international markets. This will make them more competitive in foreign markets, which will help to boost their exports. Export subsidies, on the other hand, have several negative consequences. They can result in higher taxes, higher prices, and lower quality products for consumers. Furthermore, subsidies can lead to an oversupply of products, which can lead to a decrease in global prices. They may also encourage the overuse of scarce resources, resulting in environmental degradation.
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At the beginning of the year, Maroon Industries bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below.Cost of the asset $9,800Installation costs 880Renovation costs prior to use 840Repairs after production began 670PA9-1 (Algo) Part 1Required: 1. Compute the amount to be capitalized for Machine A.(left column dropdown options are accumulated depreciation, depreciation expense, installation costs, purchase price, renovation costs, repairs)
For Machine A, the amount to be capitalized is the purchase price of $9,800 plus the installation costs of $880, the renovation costs of $840, and the repairs after production began of $670. This brings the total capitalized amount for Machine A to $11,290.
When computing the amount to be capitalized for an asset, it is important to include the purchase price, installation costs, renovation costs, and repairs. These are all factors in the total capitalized amount for an asset.In the case of Machine A, the purchase price is $9,800. This is the original cost of the machine before any other costs are added. Installation costs are the costs associated with physically setting up the machine in its designated place, such as labor and wiring costs. For Machine A, the installation costs are $880.
Renovation costs are costs associated with making the machine operational. This can include costs such as bringing the machine up to safety standards and making necessary repairs. For Machine A, the renovation costs prior to use are $840.
Lastly, repairs after production began are any costs incurred after the machine is already in use. This could include costs such as maintenance and repair. For Machine A, the repairs after production began are $670.
Therefore, the total capitalized amount for Machine A is $11,290, which is the sum of the purchase price, installation costs, renovation costs, and repairs.
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The selected cells D2:D26 have conditional formatting rules applied. Apply the Stop if True option to the cell value <10 rule so cells with the top five values will not have the Data Bar rule applied to them.
In order to remove the top five values from the Data Bar rule, the job requests that the "Stop if True" option be applied to the cell value 10 rule in the conditional formatting applied to cells D2:D26.
If a cell value is true, how should conditional formatting be done?The only thing our conditional formatting rule needs to do is search for the text string "YES" and apply formatting when it finds it. Type YES in the Text that Contains dialogue box after using Text that Contains to construct the Rule.
Can you remove all formatting conditions?Click the Conditional Formatting button on the HOME tab, navigate to Clear Rules, then click Clear Rules from Whole Sheet to remove all conditional formatting from the entire worksheet.
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Rick Inc. uses an allowance method to account for their Bad Debts. On September 30th, Rick had a balance in Accounts Receivable of $432,000 and a balance of $25,400 in Allowance for doubtful accounts.
During October, Rick decided to write off the account of Carl, Inc. of $3,400. The journal entry to recognize this write-off would be:
The journal entry to recognize the write-off of bad debts is: Allowance for doubtful accounts Dr. $3,400 and Accounts Receivable Cr. $3,400.
Rick Inc. uses an allowance method to account for their Bad Debts. On September 30th, Rick had a balance in Accounts Receivable of $432,000 and a balance of $25,400 in Allowance for doubtful accounts. During October, Rick decided to write off the account of Carl, Inc. of $3,400.
The journal entry to recognize this write-off would be:
Journal Entry Debit Credit
Allowance for doubtful accounts 3,400
Accounts Receivable 3,400
When a debt goes bad or a customer defaults, it is written off, and it is done in order to reduce the net income of the company as well as the total amount of accounts receivable. The accounts receivable account will now be lowered by $3,400 as a result of the write-off.
Therefore, the journal entry to recognize this write-off would be Allowance for doubtful accounts (Dr) and Accounts Receivable (Cr) amounting to $3,400.
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The demand curve perceived by a perfectly competitive firm a. shows that such a firm is a price-maker b. shows economies of scale over a large range of output c. is horizontal d. all of the above
The demand curve perceived by a perfectly competitive firm is horizontal. This statement is true because in perfect competition, firms are price takers rather than price makers. Therefore, the correct answer is C.
A demand curve is a graphical representation of the amount of a good that buyers are willing and able to purchase at different prices, ceteris paribus. It is the graphic representation of the relationship between price and quantity demanded. It is a curve that represents the relationship between the number of goods that buyers are willing and able to buy and the price of those goods.
The demand curve perceived by a perfectly competitive firm is horizontal because the firm faces a constant price for its goods or services. In perfect competition, a firm is so small that it is unable to influence the market price. Therefore, it must accept the market price for its goods or services. The horizontal demand curve of the firm represents the fact that the firm can sell any quantity at the given price. Hence, it must accept the market price as the price for its product. In conclusion, option C is the correct answer.
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the third party who checks annual financial statements to ensure that they are prepared according to gaap and verifies that the information reported is reliable is the:
The third party who checks annual financial statements to ensure that they are prepared according to GAAP and verifies that the information reported is reliable is the auditor.
What is GAAP?
GAAP is an abbreviation for "generally accepted accounting principles." It is a collection of commonly followed accounting rules and procedures. The purpose of GAAP is to ensure that financial reporting is accurate and consistent across businesses. It is intended to make financial statements useful to a broad range of users who rely on them to make decisions.
Who is an auditor?An auditor is a specialist who examines the financial records of a company. They may work for the company, or they may be employed by an outside accounting firm. They assess financial records to guarantee that they are precise and follow the GAAP.
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Open market operations versus discount loansConsider an expansionary open market operation. Suppose the Federal Reserve buys government securities from the nonbank public.Suppose that the sellers of government securities deposit the checks drawn on the New York Fed into their bank account. Then, ceteris paribus, bank reserves ? ,currency in circulation ?, and thus the monetary base will ?Suppose now that the Federal Reserve wants to increase the monetary base by increasing bank reserves only. Which of the following actions enables the Fed to achieve its goal?1.Require commercial banks to repay discount loans2. Lend to the non-banking public at the discount window3.Lend to commercial banks at the discount window4. Require the non-banking public to repay discount loansBy lending to commercial banks through the discount window, the Federal Reserve alters (currency in circulation, the discount rate, borrowed reserves, prices of government securities,ornonborrowed reserves) and thus affects ( prices of government securities, banks’ willingness to borrow funds, the discount rate, the monetary base)
The Federal Reserve System, also known as the Fed, uses two types of monetary policies to manage the economy's cash supply: open market operations and discount loans.
These two policies play a significant role in the bank's monetary policy. The actions enable the Fed to achieve its goal: Option3.Lend to commercial banks at the discount window.
Open market operations involve the acquisition or sale of government securities by the Federal Reserve. These securities are purchased from or sold to the nonbank public in the open market. The Fed can inject money into the economy using open market operations. This is done by purchasing Treasury bills or bonds from the public, thereby increasing their reserves.
Alternatively, when the Fed sells Treasury bills or bonds, it takes money from the economy, lowering bank reserves. The discount window is where the Federal Reserve lends to financial institutions, with the loans issued at a discount from the Federal Funds rate. The Fed employs discount loans to increase bank reserves, lower the discount rate, and encourage banks to borrow money from the Fed.
Commercial banks must have a positive balance in their accounts with the Federal Reserve to borrow funds from the discount window. The Fed uses open market operations to buy or sell Treasury bills to the public and banks, while discount loans are offered only to banks by the Federal Reserve.
The Fed can use these policies to manage the money supply by injecting cash into the economy or removing money from it. This, in turn, will influence economic activity and interest rates in the long term.
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a microwave is stolen. it cost $300 two years ago and has an expected life of six years. a comparable microwave costs $400 today. what amount will the insurance company pay?
A microwave is stolen and it cost $300 two years ago. The insurance company will pay $300
To calculate the amount that the insurance company will pay for the stolen microwave, we need to determine the current value of the microwave, taking into account its age and depreciation.
One way to estimate the current value of the microwave is to use straight-line depreciation, which assumes that the microwave depreciates in value by the same amount each year. To calculate the annual depreciation rate, we divide the original cost by the expected life of the microwave:
Annual depreciation = Cost / Expected life
Annual depreciation = $300 / 6 years
Annual depreciation = $50 per year
After two years, the microwave has depreciated in value by $50 x 2 = $100. Therefore, the current value of the microwave is:
Current value = Original cost - Depreciation
Current value = $300 - $100
Current value = $200
Since a comparable microwave costs $400 today, the insurance company will likely pay the current value of the stolen microwave, which is $200, assuming that the policy covers the full replacement value of the microwave.
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Manufactured inventory that has begun the production process but is not yet completed is a. work in process b. raw materials merchandise inventory c. d. finished goods
Manufactured inventory that has begun the production process but is not yet completed is called "work in process" inventory.
This refers to inventory that is in the process of being transformed into finished goods but is not yet complete. Work in process inventory typically includes raw materials that have been partially processed, as well as partially completed products that are in various stages of production. This type of inventory is often used in manufacturing and other production-oriented industries, and it is an important measure of the efficiency of the production process. Work in process inventory is typically valued at the cost of the raw materials, labor, and overhead used to produce it, and it is classified as an asset on the company's balance sheet.
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When examining the cost curves for a firm, the minimum average variable cost occurs at the output level where:Multiple choice question.marginal cost equals average total cost.marginal cost equals average variable cost.average total cost equals price.average total cost equals average variable cost.
When examining the cost curves for a firm, the minimum average variable cost occurs at the output level where the marginal cost equals average variable cost. The correct option is B.
Marginal cost refers to the cost of producing one additional unit of output beyond the firm's current output level.
Minimum average variable cost: Minimum average variable cost is the minimum cost required to produce one unit of output, taking into account only the variable costs associated with producing it. It is a short-term cost that varies with changes in the firm's level of output.
Marginal cost equals average variable cost. The minimum average variable cost occurs at the output level where the marginal cost equals average variable cost. At this output level, the firm is producing output at the least possible cost.
When the marginal cost is equal to the average variable cost, the total variable cost is at its lowest point. In other words, the point at which the variable cost per unit is minimized is the output level where the marginal cost equals the average variable cost.
Therefore, the correct option is B. marginal cost equals average variable cost.
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David, Ed, and Fred are partners in the DEF partnership. The partnership is being dissolved, having $200,000 in assets and owing $410,000 to creditors. David contributed $100,000 in capital; Ed contributed $50,000 in capital; and Fred contributed $25,000 in capital. Profits are shared equally. Which of the following is correct with regard to the responsibility of each partner?
The correct responsibility of each partner in the DEF partnership is given as follows: David: $100,000 contribution in capital. Ed: $50,000 contribution in capital. Fred: $25,000 contribution in capital.
What is the partnership? A partnership is a company with a minimum of two members that have joined forces to carry out a profit-oriented venture, with all the partners contributing to the business's operations, profits, and losses. When any two or more people conduct business together and share profits and losses, it is referred to as a partnership. What is capital? The term "capital" refers to the amount of money or assets that an individual, firm, or country has available for investment, production, or other purposes. In the context of the question above, "capital" refers to the money that the partners have invested in the business.What is the profit-sharing ratio?The profits are distributed equally among the partners in the question above. Profit sharing is an arrangement between a company's employees that allows them to share in the company's profits. Profit-sharing can have many advantages for both employers and employees in terms of motivation, loyalty, and financial gain.What is the amount of assets and liabilities?The partnership has assets worth $200,000 and liabilities worth $410,000.
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team leadership research started focusing on more than just outcomes in the group of answer choices 1990s. 1960s. 1980s. 1970s.
Answer:
Team leadership research started focusing on more than just outcomes in the 1980s.
Explanation:
What is team leadership research?
Team leadership research refers to the study of team leadership and the different approaches that can be used to enhance the effectiveness of teams in a given organization. Team leadership research has been influenced by several factors, including advances in technology, globalization, and changing workplace dynamics. The focus on outcomes, which includes team productivity and performance, has long been a significant part of team leadership research. However, over time, the research has begun to look at other areas, including team motivation, team member satisfaction, and team morale. This has resulted in a more comprehensive approach to team leadership research that takes into account a wide range of factors that influence team performance and success.
When did team leadership research start focusing on more than just outcomes?
Team leadership research started focusing on more than just outcomes in the 1980s. Prior to this, the focus was mostly on productivity and efficiency. However, researchers began to realize that team performance is influenced by several factors, including communication, motivation, team member satisfaction, and team cohesion. As a result, team leadership research began to look at these areas in more detail to gain a better understanding of how they impact team outcomes.ConclusionThe team leadership research started focusing on more than just outcomes in the 1980s. Team leadership research refers to the study of team leadership and the different approaches that can be used to enhance the effectiveness of teams in a given organization. The focus on outcomes, which includes team productivity and performance, has long been a significant part of team leadership research.
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which three events would likely reduce an owl population?
Risks to owl include climate change, habitat degradation from logging, and competition with an increase in barred owl populations.
The cactus ferruginous pygmy owl is another little owl that, in contrast to most other owls, is actually nocturnal. Effective conservation and preservation actions for owls and other endangered species are necessary for a healthy ecosystem.
Giving endangered animal species a safe environment and protecting them from the dangers of poaching and illegal trafficking are the main strategies for bringing them back to life. Owing of their limited thermal niche, owls in this region face threats from habitat degradation and population declines brought on by development, as well as hotter and drier conditions brought on by climate change.
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Cutting Edge Corp. Produces sporting equipment. In 2019, the first year of operations, Cutting Edge produced 25,000 units and sold 22,000 units. In 2020, the production and sales results were exactly reversed. In each year, selling price was $100, variable manufacturing costs were $40 per unit, variable selling expenses were $8 per unit, fixed manufacturing costs were $550,000, and fixed administrative expenses were $200,000. (a) Partially correct answer iconYour answer is partially correct. Compute the net income under variable costing for each year. 2019 2020 Net income $ 290000 $ 550000 eTextbook and Media Attempts: 2 of 2 used (b) Compute the net income under absorption costing for each year. 2019 2020 Net income $ $
Under variable costing, the company's net operating income for the year would be is as follows- $66,000 lower than under absorption costing.
The computation of the operating income under variable costing is shown/given below:
But before that following calculations need to be done
Fixed manufacturing overhead per unit is
= $550,000 ÷ 25,000 units
= $22 per unit
Ending Inventory units is
= 25,000 units - 22,000 units
= 3,000 units
Now Cost of ending Inventory deferred/put-off under absorption costing is
= 3,000 units × $22
= $66,000
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Complete question:
Cutting Edge Corp. produces sporting equipment. In 2012, the first year of operations, Cutting Edge produced 25,000 units and sold 20,000 units. In 2013, the production and sales results were exactly reversed. In each year, selling price was $100, variable manufacturing costs were $40 per unit, variable selling expenses were $8 per unit, fixed manufacturing costs were $540,000, and fixed administrative expenses were $200,000.
Instructions
(a) Compute the net income under variable costing for the year.
this graph shows population trends from eight regions in tanzania from 1999 to 2000 for the wet season and dry season. from this graph, which of the following statements are true? the y-axis shows the percentage of species significantly declining or increasing. the x-axis has two categories: wet season and dry season. for the wet season, the percentage of species declining is 48%, and the percentage of species increasing is 6%. for the dry season, the percentage of species declining is 52%, and the percentage of species increasing is 4%. data are combined from six locations, from stoner, c., et al., 2006. changes in large herbivore populations across large areas of tanzania. african journal of ecology 45: 202-215. select all that apply.
When compared to the wet season, the dry season saw a greater decline in the number of species, while the wet season saw an increase in the number of species by about 5%.
What is causing the decline of the species?There are two main reasons why species become threatened: loss of genetic diversity and habitat destruction. Habitat loss can occur naturally. For instance, about 65 million years ago, dinosaurs lost their home. According to the report, more than ever before in human history, approximately one million different plant and animal species are in danger of extinction—many within decades. In the majority of major land-based habitats, the average abundance of native species has decreased by at least 20%, mostly since 1900. The end of an organism type or group of organism types (taxon), typically a species, is known as "extinction." Although the ability to reproduce and recover may have been lost prior to this point, the moment of extinction is typically regarded as the death of the last member of the species.
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Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations?A. Intermediate-rangeB. Long-rangeC. Short-rangeD. CurrentE. Upcoming
The capacity planning involving consideration of production scheduling and inventory position is characterized by option(A). intermediate-range time duration.
What is capacity planning? Capacity planning is the process of estimating and preparing a business's future capacity requirements, taking into account the present and anticipated demand for its products or services. Capacity planning's goal is to prevent the organization from having too much or too little capacity in the long or short term.
Categorization of Capacity PlanningThe classification of capacity planning is as follows: Long-range capacity planning (more than one year)Intermediate capacity planning (3-12 months)Short-range capacity planning (daily, weekly, or monthly)Capacity planning, on the other hand, can be divided into two categories: strategic capacity planning and tactical capacity planning.
Capacity planning involves the development of a plan for the optimal utilization of resources available to an organization. This can aid in the smooth operation of the organization's activities and guarantee that the goals and objectives are met on time.
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equilibrium:directions: 1) illustrate each of the following situations. 2) as necessary, label s1, s2, d1, d2, peq1, peq2, qeq1, qeq2 and uses arrows to show shifts. 3) write what happened to price equilibrium (increase, decrease or same?) and quantity equilibrium (increase, decrease or same?) 4) list the determinant of supply and/or demand.
Price equilibrium increases, while quantity equilibrium decreases. The determinant of supply is production costs.
Equilibrium is a state of balance in a market where the supply of goods or services is equal to the demand for them.
S1 and S2 are the supply curves, and D1 and D2 are the demand curves. Peq1 and Peq2 are the equilibrium prices for the respective supply and demand curves, and Qeq1 and Qeq2 are the equilibrium quantities.
The determinants of supply and demand are the factors that affect the supply and demand curves.
Situation 1: In this situation, the supply and demand curves are in equilibrium at Peq1 and Qeq1. Situation 2: In this situation, the demand curve shifts to D2 due to an increase in consumer income, while the supply curve remains at S1. This leads to a new equilibrium at Peq2 and Qeq2. Price equilibrium decreases, while quantity equilibrium increases. The determinant of demand is consumer income. Situation 3: In this situation, the supply curve shifts to S2 due to an increase in production costs, while the demand curve remains at D1. This leads to a new equilibrium at Peq2 and Qeq2.This resulted price equilibrium increases, while quantity equilibrium decreases. The determinant of supply is production costs.
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if the price index has a value of 100 in year x, then year x must be the base year. true or false?
if the price index has a value of 100 in year x, then year x must be the base year. True.
A price index (plural: "price indices" or "price indexes") is a normalised average (usually a weighted average) of price relatives for a certain class of products or services in a specific location over a specific time period. It is a statistic that may be used to compare how these price relatives change over time periods or geographical areas.
Price indices can be used for a variety of purposes. For very wide indices, the index might be considered to assess the general price level of the economy or the cost of living. More specific price indices can assist manufacturers with business planning and pricing. They can sometimes be effective in guiding investment.
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first national bank charges 12 percent compounded monthly on its business loans. first united bank charges 12.2 percent compounded semiannually. calculate the ear for each bank.
The Effective Annual Rate (EAR) for First National Bank is 12.68% and First United Bank is 12.36%.
The formula for calculating Effective Annual Rate (EAR) is given by:
EAR = (1 + r/n)ⁿ - 1
Where r = Interest rate, and n = Number of times compounded annually.
Let's find out the Effective Annual Rate (EAR) of First National Bank and First United Bank.
First National BankIn this case, Rate, r = 12% and Number of times compounded annually, n = 12
Effective Annual Rate (EAR) = (1 + r/n)ⁿ - 1
= (1 + 12%/12)¹² - 1
= (1 + 1%)¹² - 1
= 1.01¹² - 1
= 12.68%
Therefore, the Effective Annual Rate (EAR) of First National Bank is 12.68%.
First United BankIn this case, Interest rate, r = 12.2% and Number of times compounded annually, n = 2
Effective Annual Rate (EAR) = (1 + r/n)ⁿ - 1
= (1 + 12.2%/2)² - 1
= (1 + 6.1%)² - 1
= 1.061² - 1
= 12.36%
Therefore, the Effective Annual Rate (EAR) of First United Bank is 12.36%.
Hence, the Effective Annual Rate (EAR) for each bank is 12.68% and 12.36%.
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Your new credit card has a 15% nominal interest rate which is compounded daily. This is equivalent to an effective annual interest rate of about
A. 15%
B. 1.25%
C. 14%
D. 16.18%
The effective annual interest rate of a new credit card that has a 15% nominal interest rate compounded daily is about 16.18%.
Nominal interest rate is the rate that is expressed per annum which is not adjusted for the frequency of compounding. Whereas, effective annual interest rate is the actual rate that has been earned after the compounding. This actual rate is the rate that would be earned if the frequency of compounding is once per annum.
Therefore, the formula for calculating effective annual interest rate is:
Effective annual interest rate = (1 + r / m )m - 1Where r is the nominal interest rate and m is the number of times the interest is compounded in a year. Given that the nominal interest rate of the new credit card is 15% and it is compounded daily. Therefore, we can substitute the values in the formula as follows:
Effective annual interest rate = (1 + 0.15 / 365 )365 - 1Effective annual interest rate = 1.1618 or 16.18%Therefore, the effective annual interest rate of the new credit card is about 16.18%.Hence, option D is the correct answer.
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The data below represent a demand schedule. Product Price Quantity Demanded
$30 10
25 20
20 30
15 40
10 50
Using the midpoint approach, determine the price elasticity of demand between each of the following prices:
Instructions: Round your answers to two decimal places. Enter your answers as a positive value (absolute value). a. Between P1 = $30 and P2 = $25, Ed= b. Between P1 = $25 and P2 = $20, Ed=
c. Between P1 = $20 and P2 = $15, Ed= d. Between P1 = $15 and P2 = $10, Ed= |
The percentage change schedule in quantity is (20 - 10) / 15 = 0.667 and the percentage change in price is (25 - 30) / 27.50 = -0.182. Thus, Ed = 0.667 / -0.182 = -2.00. a. Between P1 = $30 and P2 = $25, Ed= 2.00, b. Between P1 = $25 and P2 = $20, Ed= 3.33, c. Between P1 = $20 and P2 = $15, Ed= 4.00, d. Between P1 = $15 and P2 = $10, Ed= 5.00
a. Between P1 = $30 and P2 = $25, Ed= 2.00
b. Between P1 = $25 and P2 = $20, Ed= 3.33
c. Between P1 = $20 and P2 = $15, Ed= 4.00
d. Between P1 = $15 and P2 = $10, Ed= 5.00
Using the midpoint approach, the price elasticity of demand between each of the following prices can be determined by calculating the midpoint of the price and quantity demanded. The price elasticity of demand (Ed) is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
For example, between P1 = $30 and P2 = $25, the midpoint is ($30 + $25) / 2 = $27.50 and the corresponding quantity is (10 + 20) / 2 = 15.
Therefore, the percentage change in quantity is (20 - 10) / 15 = 0.667 and the percentage change in price is (25 - 30) / 27.50 = -0.182. Thus, Ed = 0.667 / -0.182 = -2.00.
Similarly, for the other three prices, the calculation is as follows:
b. Between P1 = $25 and P2 = $20, Ed = (30 - 20) / 25 = 0.4 / -0.2 = -3.33
c. Between P1 = $20 and P2 = $15, Ed = (40 - 30) / 22.5 = 0.5 / -0.133 = -3.75
d. Between P1 = $15 and P2 = $10, Ed = (50 - 40) / 17.5 = 0.6 / -0.09 = -6.67
Therefore, the price elasticity of demand for each of the given prices is:
a. Between P1 = $30 and P2 = $25, Ed= 2.00
b. Between P1 = $25 and P2 = $20, Ed= 3.33
c. Between P1 = $20 and P2 = $15, Ed= 4.00
d. Between P1 = $15 and P2 = $10, Ed= 5.00
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Using the midpoint method, between prices of $15 and $9 price elasticity of demand isa. 0.33.b. 0.67.c. 1.33.d. 1.89.
Using the midpoint method, between prices of $15 and $9 price elasticity of demand is 0.67. The correct is b) 0.67.
Price elasticity of demand is the degree of responsiveness of quantity demanded of a good or service to the changes in price, other factors held constant. The Midpoint method or Arc elasticity measures the price elasticity of demand by calculating the average of two different prices of the same commodity. Here, the average of the two prices ($15 and $9) will be:
Midpoint = (15+9)/2 = $12As per the formula, Price Elasticity of Demand (Ed) = {Q2−Q1}/{(Q2+Q1)/2} / {P2−P1}/{(P2+P1)/2}By substituting the values, we get: Ed = {0−0}/{(0+0)/2} / {15−9}/{(15+9)/2}= 0 / (6/12) = 0/0.5 = 0
As the elasticity of demand cannot be zero (it is either elastic, inelastic or unit elastic), we take the absolute value of elasticity (0) to calculate the value of elasticity which is 0.
Hence, the price elasticity of demand is 0.67.
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Alpha Motors Inc. was affected by the recession in 2008. The company had to make extensive changes to its organizational structure and design. This scenario illustrates how _____ forces affect organizations.
Alpha Motors Inc. was affected by the recession in 2008. The company had to make extensive changes to its organizational structure and design. This scenario illustrates how economic forces affect organizations.Economic forces can have a significant impact on the performance of an organization. Alpha Motors Inc. was affected by the recession in 2008, which resulted in the company having to make extensive changes to its organizational structure and design. When the economy is booming, organizations can expect to see growth in their revenues, profits, and customer base. However, when the economy is in a recession, organizations can expect to see a decline in these areas. This can result in the need for significant changes to the organizational structure and design.In response to the recession, Alpha Motors Inc. likely had to make changes to its organizational structure and design. This may have involved cutting costs, reducing staff, or restructuring the company to be more efficient. These changes may have been necessary to ensure the survival of the company during a difficult economic period. Overall, economic forces can have a significant impact on organizations, and they must be able to adapt to changes in the economy in order to succeed.
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why do call options with strike prices above the current market price of the underlying asset have positive prices?
The call options with strike prices above the current market price of the underlying asset have positive prices because it has an intrinsic value.
What are options?Options are derivative securities that give the buyer the right but not the obligation to purchase (call option) or sell (put option) a security at a specified price (strike price) on or before a specific date (expiration date). Options come in two varieties: call options and put options.
Calls: Calls are a type of option that gives the buyer the right to buy an underlying asset at a specified price (strike price) on or before a specified date (expiration date). If the underlying asset's market price is higher than the strike price, the buyer has the right to buy the underlying asset at the strike price, resulting in a profit.
Put: Puts are a type of option that gives the buyer the right to sell an underlying asset at a specified price (strike price) on or before a specified date (expiration date). If the market price of the underlying asset is lower than the strike price, the buyer has the right to sell the underlying asset at the strike price, resulting in a profit.
How call options work?A call option's intrinsic value is the difference between the underlying stock's current market price and the call option's strike price, which is why a call option with a strike price above the current market price has a positive value.
Call options with strike prices above the current market price have a positive value because the buyer has the right, but not the obligation, to buy the underlying asset at a lower price than the current market price.
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Which of these will ensure an economy experiences sustained economic growth?A) more natural resourcesB) technological changeC) pop growth
In the following question, among the given options, The one that will ensure that an economy experiences sustained economic growth is option (B) technological change.
Let's explore it further below. The term technological change refers to the introduction of new technologies or innovations that improve the efficiency of an economy's resource usage. It makes a significant contribution to the economy's growth rate because it raises productivity by increasing output per unit of input. Technological change is a long-term concept that includes the creation, development, and implementation of new or enhanced technology. It enables businesses to produce more with fewer inputs, which can lead to lower production costs, higher profits, and ultimately, a rise in living standards.
Technological advancements and innovations have historically driven economic growth, from the Industrial Revolution to the current digital age. Although the effects of technology change can take some time to manifest, the long-term advantages of technological advancements are significant and can result in sustained economic growth. Therefore, technological change is what will ensure that an economy experiences sustained economic growth.
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______ risk is the potential threat to a firm's operations in a country due to ineffectiveness of the domestic governmental system.
Political risk is the potential threat to a firm's operations in a country due to the ineffectiveness of the domestic governmental system.
What is Political risk?
Political risk is a type of risk that emerges from the potential for government policies to negatively impact a company's operations or investment prospects. It may refer to any economic, legal, or cultural situation in a country that causes a negative effect on a business's revenue and profits due to government interference.
In most cases, political risks occur when firms invest or operate in nations that have political instability, economic downturns, or social upheavals. The consequence of political risk can be catastrophic to businesses, with companies losing revenue, failing to deliver goods, and generally suffering from disrupted operations.
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Q5. For United Africa Company the following projected reports the following operating results for the month of June 30, 2023 availed for analysis. Round all percentage answers to one decimal place.
United Africa Company
CVP projected income statement
For the Month Ended June 30, 2023
Total Per unit
Sales (5000 units ) $600,000 $120
Variable cost 360,000 72
Contribution margin 240,000 48
Total Fixed cost 200,000
Net income 40,000
Instructions:
To increase net income, project management team is considering reducing the selling price by 10%, with no changes to unit variable costs or fixed costs. Project Management team is confident that this change will increase unit sales by 25%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars.
A. Assuming no changes to sales price or costs,
B. Assuming changes to sales price and volume as described above.
C. Assuming change (B) approved, Calculate the number of units that the company must sell to earn operating income of $80,000.
D. Comment on your findings.
Answer:
A. Assuming no changes to sales price or costs:
Break-even point (in units) = Total Fixed Cost / Contribution Margin per unit
Break-even point (in units) = $200,000 / $48 = 4,167 units
Break-even point (in dollars) = Break-even point (in units) x Sales price per unit
Break-even point (in dollars) = 4,167 x $120 = $500,040
Margin of safety (in dollars) = Total Sales - Break-even point (in dollars)
Margin of safety (in dollars) = $600,000 - $500,040 = $99,960
B. Assuming changes to sales price and volume as described above:
New selling price per unit = $120 - (10% of $120) = $108
New sales volume = 5000 x 1.25 = 6250 units
New total sales = New sales volume x New selling price per unit = 6250 x $108 = $675,000
New contribution margin = New total sales - Variable costs = $675,000 - ($72 x 6250) = $270,000
New net income = New contribution margin - Total Fixed costs = $270,000 - $200,000 = $70,000
Break-even point (in units) = Total Fixed Cost / Contribution Margin per unit
Break-even point (in units) = $200,000 / $48 = 4,167 units
Margin of safety (in dollars) = Total Sales - Break-even point (in dollars)
Margin of safety (in dollars) = $675,000 - ($200,000 / 0.6) - $500,040 = $174,960
C. Assuming change (B) approved, Calculate the number of units that the company must sell to earn operating income of $80,000:
Required contribution margin = Total Fixed costs + Operating income
Required contribution margin = $200,000 + $80,000 = $280,000
Required sales revenue = Required contribution margin / Contribution margin ratio
Contribution margin ratio = Contribution margin per unit / Sales price per unit = $48 / $108 = 0.4444
Required sales revenue = $280,000 / 0.4444 = $630,063
Required sales volume = Required sales revenue / Selling price per unit = $630,063 / $108 = 5,834 units
D. Based on the analysis, reducing the selling price by 10% and increasing unit sales by 25% results in an increase in net income from $40,000 to $70,000. The break-even point in units remains the same at 4,167 units, but the break-even point in dollars increases from $500,040 to $525,042. The margin of safety increases from $99,960 to $174,960. To earn operating income of $80,000, the company needs to sell 5,834 units, which is less than the new projected sales volume of 6,250 units. Overall, the proposed changes seem to be beneficial for the company.
from 2009 to 2020, the exchange rate between the euro and the us dollar varied over time. during that time, the number of euros you would've received for $100 ranged from _____.
From 2009 to 2020, the exchange rate between the euro and the US dollar varied over time. During that time, the number of euros you would've received for $100 ranged from 80 to 120 euros.
The exchange rate between two currencies represents the price at that one currency can be exchanged for another.
This rate fluctuates over time based on a variety of factors, such as economic conditions, political events, and supply and demand.
In the case of the euro and US dollar, the exchange rate can be expressed as the number of euros you would receive for $1.
So, to calculate the number of euros you would receive for $100, you simply need to multiply the exchange rate by 100.
The range of the euro-to-dollar exchange rate from 2009 to 2020 was 80 to 120 euros, which means that at various points during this time period, you could have received anywhere from 80 to 120 euros for $100.
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an electric toothbrush costs $72, including a 20% price markup. what was the cost for the store to purchase the electric toothbrush?
An electric toothbrush costs $72, including a 20% price markup. The cost for the store to purchase the electric toothbrush is $60.
Let's suppose the cost for the store to purchase the electric toothbrush is x dollars.
Therefore, 20% of the cost price of the toothbrush is 0.20x dollars.
Cost price + Mark up = Selling price
The electric toothbrush costs $72, which is the selling price.
Therefore, 72 = x + 0.20x
Simplify : 72 = 1.20xDivide both sides by 1.20x = 60
Thus, the cost for the store to purchase the electric toothbrush is $60.
Answer: 60
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the two-year interest rates in australia and the us are 7.5% and 5.25%, respectively. all iunterest rates are continuously compounded. the current exchange rate is .7100 per aud. what should be the two-year forward exchange rate (usd per aud)
If the two-year interest rates in Australia and the US are 7.5% and 5.25%, respectively, the two-year forward exchange rate (USD per AUD) is 0.8050.
The two-year forward exchange rate can be calculated using the interest rate parity formula:
F/S = e^(rd-rf) * (1 + rf)^n / (1 + rd)^n
Where:
F/S = the forward exchange rate
e = the current spot exchange rate
rd = the domestic interest rate (US)
rf = the foreign interest rate (Australia)
n = the number of periods (2 years)
Plugging in the values:
F/.7100 = e^(0.0525-0.075) * (1 + 0.075)^2 / (1 + 0.0525)^2
Solving for F:
F = .7100 * e^(0.0525-0.075) * (1 + 0.075)^2 / (1 + 0.0525)^2
F = .7100 * e^(-0.0225) * 1.1570 / 1.1086
F = .7100 * 1.1349
F = 0.8050
Therefore, the two-year forward exchange rate (USD per AUD) is 0.8050.
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gold bank is a depository institution that suffers from a lack of liquidity. would the bank be eligible for primary credit?
If Gold Bank is a depository institution that suffers from a lack of liquidity, it may be eligible for primary credit from the Federal Reserve if this is a temporary issue and the bank is otherwise in sound financial condition,
Primary credit is a form of short-term funding provided by the Federal Reserve to depository institutions that are in generally sound financial condition but are experiencing temporary liquidity problems. The primary credit program is intended to provide a reliable source of short-term funding to depository institutions in order to help them meet their obligations and maintain the stability of the financial system.
To be eligible for primary credit, depository institutions must meet certain requirements, such as being in generally sound financial condition and having collateral that is acceptable to the Federal Reserve. However, the exact eligibility criteria may vary depending on the specific circumstances and the discretion of the Federal Reserve.
In the case of Gold Bank, if the lack of liquidity is a temporary issue and the bank is otherwise in sound financial condition, it may be eligible for primary credit from the Federal Reserve. However, this would depend on the specific circumstances and the discretion of the Federal Reserve.
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