Answer:
Calculating Herfindahl-Hirschman Index and Four-Firm Concentration Ratio:
a. Herfindahl-Hirschman index (HHI) = 3,814
b. The four-firm concentration ratio (C4) = 1
c. If the two firms with sales of $355,000 and $435,000 merged, the resulting HHI would increase by 1,723 to 5,537. The post-merger HHI now exceeds that allowed under the Guidelines (2,500). The increase in HHI is more than that permitted under the Guidelines (200), the merger is likely to be blocked by the Department of Justice.
Explanation:
a) Data and Calculations:
Sales of three firms in an industry:
Sales Industry Share
Firm A sales = $355,000 22% ($355,000/$1,615,000 * 100)
Firm B sales = 825,000 51% ($825,000/$1,615,000 * 100)
Firm C sales = 435,000 27% ($435,000/$1,615,000 * 100)
Total sales = $1,615,000
Herfindahl-Hirschman index (HHI) = 3,814 (22² + 51² + 27²)
Four-firm concentration ratio (C4) = Sales of the four largest firms/Industry sales = $1,615,000/$1,615,000
If the two firms with sales of $355,000 and $435,000 were to merge, the new Herfindahl-Hirschman index (HHI) = 5,537(49² + 51²)
Increase in HHI as a result of the merger = 1,723
An example of a good that is excludable is: _________
a) an outdoor sculpture visible from the street.
b) a television set.
c) broadcast television.
d) an aerial fireworks display.
Answer:
b) a television set
Explanation:
Excludable goods can be regarded as a s private goods, unlike non-excludable goods which are public goods. Instance of this is that
everyone can utilize public road, but going to cinema cannot be for everyone the way they please, this is because, ticket need to be bought to get access, as ticket is bought, this can excludes somebody else since there is because limited seat. It should be noted that good can be regarded as a excludable, in situation whereby supplier of that good successfully prevent individual that do not pay from consuming it. An example of a good that is excludable is television set
A south sea island produces only coconuts. In 2015, the price of a coconut is $1.00 and the quantity produced is 250 . In 2019 , the price of a coconut is $0.50 and the quantity produced is 200 . 2015 is the base year. What is real GDP in 2019 ?
Answer:
the real GDP in 2019 is $200
Explanation:
The computation of the real GDP is shown below;
= Base year price × quantity produced in 2019
= $1 × 200
= $200
Hence, the real GDP in 2019 is $200
The above should be used to determine the real GDP in 2019 and the same should be relevant
GHI Corporation, a California corporation, has a six-person board. At a regular board meeting, only two directors attend. No notice was sent to any of the directors. The two attending call directors Alice and Bob and put them on a conference call. The four talk about the corporation buying Blackacre and then all agree to a resolution for GHI to buy Blackacre from Third Party. The Bylaws of GHI state that an action of the board requires the consent of a majority of the directors present at a meeting, and that a quorum is a majority of the authorized directors.
Select one:
a. the purchase is authorized because a quorum was present and a majority of those present approved the action.
b. the purchase is not authorized, since all real estate transactions require shareholder approval
c. the purchase is not authorized because prior written notice must be sent to each director
d. the purchase is not authorized because a quorum was not present at the board meeting
e. Two of the above are correct.
Answer:
a. the purchase is authorized because a quorum was present and a majority of those present approved the action.
Explanation:
going by the bye laws of GHI state, board action requires that majority of the members of the board are present and give consent in the meeting. here in this question, we have a 6 member board. Although only two of the board members are physically present, through conference call Alice and Bob increased the number to 2 when they joined in. Therefore the number of board members at this meeting is 4, then the requirement has been met. So since this 4 agreed to the purchase, it is authorized and valid since a quorum was present and a majority of them agreed to the action. option a is correct
The correct statement is a. the purchase is authorized because a quorum was present and, a majority of those present approved the action.
The quorum required by the Bylaws of GHI is for a majority of directors to be present, and in this case, four directors were present (two physically and two by conference call).
The Bylaws of GHI specify that every action of the directors should be supported by a majority present at a meeting. We can conclude that the purchase is authorized by the majority (100%).
Thus, the purchase of Blackacre by GHI is authorized.
Learn more about board of directors, quorum, and majority votes here: https://brainly.com/question/7985365
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $34,000 (original cost of $86,000 less accumulated depreciation of $52,000) and $45,000, respectively. Assume Calaveras paid $6,000 in cash and the exchange lacks commercial substance. At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange?
Answer:
1. $51,000
2.$11,000 Gain
Explanation:
(1) Calculation to determine At what amount will Calaveras value the pickup trucks
Using this formula
Trucks value =Fair value + Cash paid
Let plug in the formula
Trucks value=$45,000+$6,000
Trucks value=$51,000
Therefore Calaveras value the pickup trucks at $51,000
(2) Calculation to determine How much gain or loss will the company recognize on the exchange
Using this formula
Gain or loss on exchange =Fair value - Book value
Let plug in the formula
Gain or loss on exchange=$45,000-$34,000
Gain or loss on exchange=$11,000 Gain
Therefore the company will $11,000 GAIN recognize on the exchange
Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of an Annuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
A. $(22,101).
B. $(36,345).
C. $22,101.
D. $54,919.
E. $36,345.
Answer: E. $36,345
Explanation:
Net present value = Present value of inflows - Cost of equipment
The inflow is an annuity as it is a constant amount so is calculated as:
Present value of inflows = Inflow * Present value interest factor of an annuity, 10%, 4 years
= 39,700 * 3.1699
= $125,845.03
Net present value = 125,845.03 - 89,500
= $36,345.03
Kỳ hạn ghép lãi 3 tháng, lãi xuất công bố 12%/năm. Hỏi lãi xuất bao nhiêu %/kỳ 3 tháng?
Answer:
Mỗi loại hình dịch vụ gửi tiết kiệm mà ngân hàng có công thức tính lãi suất khác nhau. Mức lãi suất tiết kiệm thông thường sẽ do ngân hàng đưa ra và tuân thủ theo các quy định của ngân hàng Nhà Nước. Cùng tìm hiểu cách tính lãi suất ngân hàng và công thức lãi kép nhanh nhất.
Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces. a. Invest $360.00 and receive $788.17 in 11 years. b. Invest $3 comma 000.00 and receive $11 comma 499.87 in 17 years. c. Invest $31 comma 542.31 and receive $140 comma 000.00 in 22 years. d. Invest $32 comma 895.12 and receive $1 comma 100 comma 000.00 in 40 years.
Answer:
7.38%
8.23%
7.01%
9.17%
Explanation:
Rate of return = (future value / amount invested)^(1/n) - 1
n = number of years
a. (788.17 / 360)^(1/11) - 1 = 7.38%
b. (11.499.87 / 3000) ^(1/17) - 1 = 8.23
c. (140,000 / 31,542.31)^(1/22) - 1 = 7.01
d. (1,100,000 / 32895.12)^(1/40) - 1 = 9.17
describe the term marginal cost?
Answer:
In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.
Answer:
The cost of production is marginal. Fixed and variable costs included. With regard to fixed costs, this is only calculated at the marginal cost of production is to be expanded. In contrast, marginal costs always include variable costs.
Explanation:
THE IMPORTANCE OF MARGINAL COST:
In economics, marginal costs are important as they help companies to maximize profits. When marginal costs are equal to marginal income, we have so-called profit maximization. In this respect, the cost of producing a further product is exactly the same as the sales of the company. That is, the company does not make money at that point anymore.
As seen from the below marginal costs curve, marginal costs begin to decrease as the company benefits from scale savings. Marginal costs can however increase with businesses declining in productivity and suffering from scale disadvantages. Costs are increasing and they ultimately receive marginal income.
It could be because the company becomes too big and inefficient, or because the management problem gets less productive and demotivated. Whatever the reason, companies may have to face up to rising costs and stop production if their income is identical to the marginal price.
Checking accounts at a local bank carry an average balance of $3000. The bank turns over its balance 3 times a year. On average, how many dollars flow through the bank each month?
Answer:
75,000
Explanation:
I think? not shure
Julio is in the 32% tax bracket. He acquired 9,000 shares of stock in Gray Corporation seven years ago at a cost of $20 per share. In the current year, Julio received a payment of $135,000 from Gray Corporation in exchange for 4,500 of his shares in Gray. Gray has E & P of $1,000,000. What income tax liabil-ity would Julio incur on the $150,000 payment in each of the following situations? Assume that Julio has no capital losses.
a. The stock redemption qualifies for sale or exchange treatment.
b. The stock redemption does not qualify for sale or exchange treatment.
c. How would your answer to parts (a) and (b) of Problem 49 differ if Julio were a corporate shareholder rather than an individual shareholder and the stock ownership in Gray Corporation represented a 25% interest?
Answer:
example below
Explanation:
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
a. Cash balance according to the company's records at August 31, $19,140.
b. Cash balance according to the bank statement at August 31, $19,950.
c. Checks outstanding, $3,890. Deposit in transit not recorded by bank, $3,120.
d. A check for $340 in payment of an account was erroneously recorded in the check register as $430.
e. Bank debit memo for service charges, $50.
Required:
Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.
Answer:
Looking at the data, there are only a few entries that increase and decrease cash.
The entry that increases cash is:
A check for $340 in payment of an account was erroneously recorded in the check register as $430.This increases cash because the payment was higher than it should be so when we adjust it, the cash will increase to reflect that more of it was spent than it should have been.
The increase is:
= 430 - 340
= $90
Date Account Title Debit Credit
August 20Y6 Cash $90
Accounts Payable $90
The entry that decreases cash is:
Bank debit memo for service charges, $50.Bank is charging us for its services. This is an expense that reduces the cash balance.
Date Account Title Debit Credit
August 20Y6 Bank charges $50
Cash $50
______contains journal vouchers of past periods for audit trail
Answer:
Journal voucher history file
A five-year note payable would appear on the balance sheet as a(n) a.disclosure in the notes only. b.long-term liability for the entire amount owed. c.current liability for any portion due within one year. d.intangible asset.
Answer: current liability for any portion due within one year
Explanation:
Notes payable are referred to as the written agreements whereby one party agrees to pay the other party a certain amount of money.
It should be noted that on the balance sheet, notes payable will appear as liabilities. In a situation when the amount is due within a year, then it's considered to be current liabilities while it's regarded as a long-term liability when it's more than a year,
It should be noted that a five-year note payable would appear on the balance sheet as current liability for any portion due within one year.
This year, Sigma Inc. generated $639,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months:
Initial Basis Acc. Depr Sale Price
Marketable securities $144,000 0 $64,000
Production equipment 93,000 $76,000 30,000
Business realty:
Land 165,000 0 180,000
Building 200,000 58,300 210,000
Required:
a. Compute Sigma’s taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured.
b. Recompute taxable income assuming that Sigma sold the securities for $150,000 rather than $64,000.
Answer:
Sigma Inc.
a. Sigma's Taxable Income:
Business income = $639,000
Capital gains = 16,300
Total taxable income $655,300
b. Sigma's Taxable Income:
Business income = $639,000
Capital gains = 102,300
Total taxable income $741,300
Explanation:
a) Data and Calculations:
Business income = $639,000
Capital gains:
Initial Basis Acc. Depr Sale Price Gain/(Loss)
Marketable securities $144,000 0 $64,000 ($80,000)
Production equipment 93,000 $76,000 30,000 13,000
Business realty:
Land 165,000 0 180,000 15,000
Building 200,000 58,300 210,000 68,300
Net capital gains $16,300
Capital gains recomputed:
Initial Basis Acc. Depr Sale Price Gain/(Loss)
Marketable securities $144,000 0 $150,000 $6,000
Production equipment 93,000 $76,000 30,000 13,000
Business realty:
Land 165,000 0 180,000 15,000
Building 200,000 58,300 210,000 68,300
Net capital gains $102,300
In a newsvendor model where the demand has normal distribution, if Co < Cu, i.e., the overage cost is lower than the underage cost, then the optimal ordering quantity (i.e., the Newsvendor ordering quantity) will be:_______.
Answer:
maximum
Explanation:
The newsvendor model may be defined as the mathematical model which is characterize by the fixed prices as well as the uncertain demand for the perishable products. This model is mainly used to determine the optimal inventory level.
According to the newsvendor model, there is only one opportunity to order. The cost of buying large quantities of the products may result in disposing them or selling the products at a lower price.
The optimal ordering quantity is maximum when the underage cost is higher than the overage cost.
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $1,000 per unit, of which $680 is product cost and $320 is selling and administrative expenses. In addition, the total cost of $1,000 is made up of $570 variable cost and $430 fixed cost. The desired profit is $200 per unit.
Required:
Determine the markup percentage on total cost.
Answer:
the markup percentage on total cost is 20 %
Explanation:
Mark up = Profit / Total Cost x 100
where,
Total Cost = $1,000
Profit = $200
therefore,
Mark up = $200 / $1,000 x 100 = 20 %
thus,
the markup percentage on total cost is 20 %
A company's beginning Work in Process inventory consisted of units that were 90 % complete with respect to direct labor A total of were finished during the period and remaining in Work in Process inventory were 40 % complete with respect to direct labor at the end of the period . Using the weighted average method the equivalent units of production with regard to direct labor were :
Answer: 109,800 units
Explanation:
Equivalent Units of Production with respect to Direct Labor can be calculated as:
= Units completed during the period + Equivalent ending Work in Process Inventory (1)
Equivalent ending Work in Process Inventory = 32,000 ending units * 40% completion with respect to direct labor
= 12,800 units
EUP direct labor = 97,000 + 12,800 (1)
= 109,800 units
The following is a list of account titles and amounts (in millions) reported at December 27, 2015, by Hashey, Inc. a leading manufacturer of games, toys, and interactive entertainment software for children and families:
Accounts Receivable $1,119 Equipment $496
Accumulated Amortization 751 Goodwill 601
Accumulated Depreciation 506 Inventories 356
Allowance for Doubtful Accounts 35 Land 10
Buildings 246 Licensing Rights 1,841
Cash and Cash Equivalents 686 Prepaid Rent 361
Required:
Prepare the asset section of a classified balance sheet for Hashey, Inc.
Answer and Explanation:
The preparation of the asset section of the classified balance sheet is presented below;
ASSETS
Current assets:
Cash and cash equivalents $686
Accounts receivable $1,119
Less: Allowance for doubtful accounts ($35)
Accounts receivable (net) $1,084
Inventory $356
Prepaid rent $361
Total current assets $2,487
Property, Plant and Equipment:
Land $10
Buildings $246
Equipment $496
Property, Plant and Equipment (at cost) $752
Less: Accumulated depreciation ($506)
Total Property, Plant and Equipment (net) $246
Other assets
Licensing rights $1,846
Goodwill $601
Less: Accumulated amortization ($751)
Other assets (Net) $1,691
Total assets $4,424
The Pizza Company is considering a new three-year expansion project. The key data are shown below:
The company hired a consulting firm to help evaluate the project and paid the consulting fee of $60,000. The company owns the space. If company did not invest in the project, it can receive after-tax rental fee for $300,000 per year for 3 years. However, if the
company invested in the project, it will use the space for the project.
The fixed cost to produce pizza is required at $150,000 per year.
It is estimated that 50,000 units will be sold in the first year and that 40,000 units and 30,000 units will be sold in the second and third years respectively.
Each pizza is expected to sell for $25 and the production cost will be $15 per unit.
The sales price and variable cost should increase with inflation. Expected inflation rate per year is 5%.
The project requires an initial investment in working capital of $500,000, which will be required in each year at 10% of revenue in the following year.
The purchase of the machinery at the start of the project is $1,000,000. The shipping and installation cost are $200,000. The machinery will be depreciated straight-line to zero. It is estimated that the machinery can be sold at the end of the project for $250,000.
To finance the project, the company would need to take a one-million dollar loan at 8% interest rate p.a. from HSBC over the life of the project. Annual interest expense is $80,000.
The corporate tax rate is 34%.
The Pizza Company is evaluating its cost of capital under alternative financing arrangements. In consultation with the consulting firm, the Pizza Company expects to be able to issue new Debt at Par with a coupon rate of 8% (coupons paid annually) and to issue new preferred stock with a $4 per share dividend at $32 a share. The common stock of the Pizza Company is currently selling for $22 a share while its book value is $6. The Pizza Company expects to pay a total
dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock
a. What is the cost of capital (WACC) of the Pizza Company?
b. Calculate the NPV of the project using the cost of capital calculated in part (a).
Should the project be accepted?
Answer:
dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock
a. What is the cost of capital (WACC) of the Pizza Company?
b. Calculate
Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,000 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,000 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $600 + $0.35 per mile.
Required:
1. Determine how many miles Russell needs to drive to break even k-Even Miles Miles.
2. Assume Russell drove 1,800 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.
3. Determine how many miles Russell must drive to earn $1,000 in profit.
Answer:
Russell Preston
1. The miles Russell needs to drive to break even is:
= 1,500 miles.
2. If Russel drove 1,800 miles last month, he earned a profit.
3. To earn a profit of $1,000, the miles Russell must drive are:
= 4,000 miles
Explanation:
a) Data and Calculations:
Selling price per mile driven = $0.75
Average operating cost for driving 3,000 miles = $0.55 per mile
Total operating cost for 3,000 miles = $1,650 ($3,000 * $0.55)
Average operating cost for driving 4,000 miles = $0.50 per mile
Total operating for 4,000 miles = $2,000 (4,000 * $0.50)
Total cost function = $600 + $0.35 per mile using the high-low method
Variable cost per mile = $0.35
Fixed cost per month = $600
Contribution margin per mile = $0.40 ($0.75 - $0.35)
Contribution margin ratio = 0.5333
To break-even, Russel must drive = $600/$0.40 = 1,500 miles
At this mileage, his total costs = $1,125 ($600 + $0.35 * 1,500)
At this mileage, his total revenue = $1,125 ($0.75 * 1,500)
To earn a profit of $1,000, Russell must drive = ($600 + $1,000)/$0.40
= 4,000 miles
The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects (S300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resources requirement and the estimated profit for each project.
Project Expense Management Estimated Profit
($1,000s) Scientists required (1,000,000s)
1 50 6 0.30
2 105 8 0.85
3 56 9 0.20
4 45 3 0.15
5 90 7 0.50
6 80 5 0.45
7 78 8 0.55
8 60 5 0.40
Formulate the integer programming model for this problem and solve it using the computer.
Answer:
Answer
Explanation:
The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects (S300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resources requirement and the estimated profit for each project.
Project Expense Management Estimated Profit
($1,000s) Scientists required (1,000,000s)
1 50 6 0.30
2 105 8 0.85
3 56 9 0.20
4 45 3 0.15
5 90 7 0.50
6 80 5 0.45
7 78 8 0.55
8 60 5 0.40
Formulate the integer programming model for this problem and solve it using the computer.
Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $54. Ortega would like a profit of $14 per drive. What target cost Ortega should set to accomplish this objective
Answer:
$40
Explanation:
Target cost is the cost per unit arrived at after having deducted the required profit margin from the competitive market price.
It is a management technique that makes management think about ways to achieve a set target cost rather than forcing their actual cost plus profit margin on customers.
In this case, the competitive market price is $54 per unit of hard drive whereas the company expects to achieve a total profit of $14 per unit
Profit margin per unit=$14
competitive market price=$54
Target cost=competitive market price-profit margin per unit
Target cost=$54-$14
Target cost=$40
You have decided to invest in two bonds. Bond X is an n-year bonod with semiannual coupons, while bond Y is zero-coupon bond, which is re- deemable in 2 years. The desired yield rate is the same for both bonds. You also have the following information:
Bond X:
Par value is 1000.
The ratio of the semi-annual bond rate to the desired semi-annual yield rate, that is is r/i 1.03125.
b. The present value of the redemption amount is 381.50.
Bond Y:
Redemption value is the same as that of bond X.
Price to yield is 647.80.
What is the price of bond X?
Answer:
The price of the bond X is 1055.09.
Explanation:
The price of Bond X can be determined as follows:
Let:
R = Present value of the Redemption amount of X and Y
i = yield of both Bond X and Bond Y
For Bond X, we have:
381.5 = R / (1+i)n ………………… (1)
For Bond Y, we have:
647.80. = R/(1+i)(n/2) ……………….. (2)
Use equation (2) to divide equation (1), we have:
381.5/647.8 = 1/ (1+i)(n/2) ……………………….. (3)
0.588916332201297= 1/ (1+i)(n/2)
(1+i)(n/2) = 1 / 0.588916332201297
(1+i)(n/2) = 1.69803407601573
647.80 = R / 1.69803407601573
R = 647.80 * 1.69803407601573 = 1,099.99, or 1,100
Now, also let:
r = coupon rate of Bond X
P= present value of Cash flows of Bond X
Therefore, we have:
P = 1000 * (r/2) / (1+i)0.5 + 1000*(r/2)/ (1+i)1+....+1000 * (r/2) /(1+i)n+ 1100/(1+i)n
It can be observed that we have 2n terms indicating present value of 2n semiannual coupon payments and last term is present value of Redemption amount.
Applying GP formula, we have:
P = 1000 *(r/2) * (1- (1+i)-n) / ((1+i)(1/2) -1) + 1100 * (1+i)-n
Looking at equation (3), we it can be observed that we can have:
(1+i)-(n/2) = 381.5/647.8 = 0.588916
Therefore, we have:
(1+i)-n = 0.5889162= 0.346822
By employing the Binomial approximation, we have:
(1+i)(1/2)= 1+i/2+... very small terms = 1 + i/2
This indicates that:
(1+i)(1/2)-1 = i/2
If we substitute this into the price equation, we will have
P = 1000 *(r/2) * (1-0.346822) / ( i/2) + 1100 * 0.346822 = 1000 * (r/i) * 0.653178 + 381.504
Since r/i = 1.03125, we have:
P = 653.178 * 1.03125 + 381.504 = 1055.09
Therefore, the price of the bond X is 1055.09.
Suppose that Musashi, an economist from an AM talk radio program, and Rina, an economist from a university in Massachusetts, are arguing over health insurance. The following dialogue shows an excerpt from their debate:
Rina: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits.
Musashi: I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese.
Rina: I disagree. I think government funding of health insurance is useful to ensure basic fairness.
The disagreement between these economists is most likely due to:
a. Differences in scientific judgments
b. Differences in Values
c. Differences between perception VS. reality
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Lawyers make up an excessive percentage of elected officials.
b. Minimum wage laws do more to harm low-skilled workers than help them.
c. Tariffs and import quotas generally reduce economic welfare.
Answer:
b. Differences in Valuesc. Tariffs and import quotas generally reduce economic welfare.Explanation:
Economists are known to disagree with each other a lot especially when they adhere to different economic theories such as the Neoclassic or Keynesian theories. In this case, these economists having opposing viewpoints in relation to what the government is doing in regards to health insurance is most probably due to different economic values they hold.
Regardless of the values they subscribe to however, most economists usually support certain propositions and one of them is free trade. They believe that the presence of tariffs and import quotas serve to reduce economic welfare as there are deadweight losses and things are more expensive for consumers.
Flexible Budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. Round your labor rate to nearest cent.
$
Flexible Budgeting
At the beginning of the period, the Grinding Department budgeted direct labor of $159,600 and property tax of $56,000 for 7,600 hours of production. The department actually completed 9,500 hours of production.
Determine the budget for the department, assuming that it uses flexible budgeting.
$
Answer and Explanation:
The calculation is given below:
Fabricating department
The budgeted cost is
= $9,280 ÷ 640 hours × 600 hours + $2,300
= $8,700 + $2,300
= $11,000
Grinding department
= $159,600 ÷ 7,600 hours × 9,500 hours + $56,000
= $199,500 + $56,000
= $255,500
In this way the budgeted cost should be determined
Exercise 9-15A (Static) Using the current ratio to make comparisons LO 9-7 The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills
Answer:
a. 1.5 and 1.8
b. Montana
Explanation:
Below is the calculation for the current ratio:
a. Formula used, Current ratio = Current assets / Current liabilities
Current ratio of Kansas = 59000 / 40000 = 1.5
Current ratio of Montana = 78000 / 43000 = 1.8
b. The company that has a higher current ratio will have a greater likelihood to pay bills so Montana is the correct answer.
WHAT IS THE SUPPLY CHAIN FRAMEWORK'S IN OKADA? WHAT IS THE MODEL ?
Consider a $6500 piece of machinery, with a 5-year depreciable life and an estimated $1200 salvage value. The projected utilization of the machinery when it was purchased, and its actual production to date, are as follows:
Year Projected Production (Tons) Actual Production (Tons)
1 3500 3000
2 4000 5000
3 4500 [Not]
4 5000 Yet
5 5500 [Known]
Compute the depreciation using :
a. straight line
b. sum of years digits
c. double declining balance
d. Unit of production (for the first 2 years only)
e. Modified accelerated cost recovery system
Answer:
Hence the answer is given as follows,
Explanation:
The difference between the actual labor rate multiplied by the actual labor hours worked and the standard labor rate multiplied by the standard labor hours is the:_________.
a. labor price variance.
b. total labor variance.
c. labor efficiency variance.
d. labor quantity variance.
Answer:
c. labor efficiency variance.
Explanation:
The labor efficiency variance can be regarded as variance that is been based on the quantity of labor hours that is been used in production. It is the difference that exist between actual number of direct labor hours that one worked as well as the budgeted direct labor hours that is required to have worked based on the standards.
It should be noted that the difference between the actual labor rate multiplied by the actual labor hours worked and the standard labor rate multiplied by the standard labor hours is the labor efficiency variance.
Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 4 percent 3 years ago. The bond currently sells for 108 percent of its face value. The company’s tax rate is 22 percent.
Answer:
Pretax cost of debt = 3.48%
Aftertax cost of debt = 2.71%
Explanation:
Missing word "What is the pretax cost of debt and aftertax cost of debt"
Coupon rate = 4%
YTM = 22
Nper = YTM*2 = 44
PMT = 1000*4%/2 = 20
FV = 1000
PV = 1080
Rate = rate(nper, pmt, -pv, fv)
Rate = rate(44, 20, -1080, 1000)
Rate = 0.0174
Rate = 1.74%
Pretax cost of debt = Rate * 2
Pretax cost of debt = 1.74% * 2
Pretax cost of debt = 3.48%
Aftertax cost of debt = [3.48% * (1 - 0.22)]
Aftertax cost of debt = 3.48% * 0.78
Aftertax cost of debt = 0.0348 * 0.78
Aftertax cost of debt = 0.027144
Aftertax cost of debt = 2.71%