How many dollars must you invest now at an APR of 4.6% with monthly compounding to have $8000 in six years? Round your answer to the nearest dollar.

Answer and Explanation:

A. The computation of variable cost per unit is shown below:-

Variable cost = Variable material cost + Variable labor cost

= $10.70 + $6.30

= $17

B. The computation of total costs for the year is shown below:-

Total cost = Variable cost + Fixed cost

= $280,000 × $17 + $660,000

= $5,420,000

C. The computation of cash break-even point and accounting break-even point is shown below:-

Contribution = Selling price - Variable cost

= $44.50 - $17

= $27.5

Cash break even point = Fixed cost ÷ Contribution per unit

= $660,000 ÷ $27.50

= 24,000 units

Break even point = (Fixed cost + Depreciation) ÷ Contribution per unit

= ($660,000 + $460,000) ÷ $27.5

= $1,120,000 ÷ $27.5

= 40,727.27 units

or

= 40,728 units

Answer:

variance of the underlying asset return

Explanation:

The Black-Scholes is the most widely used model to predict the value of call/put options. It is mostly used for European style options and only works for stocks that do not pay dividends. It is based on five variables that must be inputted in the formula:

Answer: Display

Explanation: Display advertising is a form of commercial solicitation that is made to sell some commodity, service or similar and is typically designed as an image or a photo. As such, it employs the use of visuals like images, copy, illustrations or photos, headlines, coupons, videos and other visual components on the networks of publishers.

Answer: $21,150

Explanation:

The company pays 45% of the purchases amount in the month after the purchase. This will therefore apply to October for the month of September.

Cash Disbursement in October for September Purchase = 45% * September purchases

= 45% * 47,000

= $21,150

Answer:

Question is written again to add options:

A. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous.

B.  Average inventory is more than one-half of the production order quantity.

C. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory.

D. All else equal, the smaller the ratio of demand rate to production rate, the smaller is the production order quantity.

E. None of these is false.

The correct answer is option B "Average inventory is more than one-half of the production order quantity."

Explanation:

With an inventory, it is possible to separate parts of the production process , to separate assets from goods are yet to be produced or are already produced that could serve as a source of income for a company.

An average inventory is less than one-half of the production order quantity.

The production order quantity model doesn't make it possible for the ordered quantity to be received at one time.

The production order quantity model helps a company on how to manage inventory holding costs and the average fixed ordering cost, thereby making it possible for a company to check and minimize its inventory cost and to have a guide on what quantity to produce at every point in time.

Answer:

part a.

Cash $450,000 (debit)

Common Stock $300,000 (credit)

Share Premium $150,000 (credit)

part b.

Cash $400,000 (debit)

Preferred Stock $320,000 (credit)

Share Premium $80,000 (credit)

part c.

Cash $500,000 (debit)

Bonds Payable $500,000 (credit)

part d.

Dividend Declared - common stock $50,000 (debit)

Dividend Declared - preferred stock $20,000 (debit)

Shareholders for Dividends $70,000 (credit)

Explanation:

For par value stock, any price paid in excess of the par value of that stock is accounted for in the share premium reserve of that stock.

When a dividend  is declared, recognize the equity element - dividend declared for the class of equity that is entitled to the dividend to the extent of the stocks outstanding on the date the dividend is declared.Also recognize a liability - Shareholders for Dividends arising from the obligation that the entity has created (through the declaration) to its stockholders

Answer:

Only the net present value method

Explanation:

The net present value is the lies between the initial amount and the present value of cash inflows after considering the discount factor

If the initial investment is more than the present value of all year cash inflows so it comes in negative due to which the project is not accepted else the project should be accepted

Therefore in the given case, it only applied to the net present value method

Answer:

$20,000

Explanation:

Based on the information given about Amble Inc the amount that Amble should record the truck received should be $20,000 because the book value is the amount of $12,000.

Secondly since we were told that the exchange has commercial substance which means that the amount of $20,000 which is the fair value of the truck which the buyer is willing to buy from the seller should be the amount that Amble should record the truck received .

Therefore Amble should record the truck received at the amount of $20,000

Answer:

Health Maintenance Organizations or HMOs

How different from the indemnity insurance system?

D. Taking responsibility for both financing and delivering health care services to a defined group of beneficiaries.

Explanation:

HMOs are healthcare maintenance organizations which coordinate the provision of health services and care to registered patients.  They provide health insurance services to their patients for a monthly fee.  They ensure cost-effectiveness in healthcare delivery through their coordination efforts.

On the other hand, indemnity insurance system involves some contractual agreements in which one party (the insurer or insurance company) guarantees compensation for actual or potential losses or damages sustained by another party (the insured).

Answer:

12.5%

Explanation:

A portfolio has $2,800 invested in stock A

$3,900 is invested in stock B

The expected return of stock A is 9%

= 9/100

= 0.09

The expected return of stock B is 15%

= 15/100

= 0.15

The first step is to calculate the total value

= $2,800+$3,900

= $6,700

Therefore, the expected return on the portfolio can be calculated as follows

= (2,800/6,700)×0.09 + (3,900/6,700)×0.15

= 0.4179×0.09 + 0.5820×0.15

= 0.03761 + 0.0873

= 0.1249×100

= 12.5%

Hence the expected return on the portfolio is 12.5%

Answer:

Convert the bonds into 20 common stocks.

Explanation:

the investor has 3 options:

the option that yields the highest return is to convert the bonds into common stocks.

Answer and Explanation:

Learning of a snow storm on the day of the ballet will definitely affect ticket sales. Economists should consider the distance, history of attendance and demographics of people attending (young, old or married people) in analyzing turn out for the ballet. Influencing the ticket sales in this situation could also be helped by lower prices for tickets and aggressive promotion and campaigning. This are all under assumption that people will react positively to adverts/promotions and lower prices

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Answer:

d. $5,204

Explanation:

Interest expenses up to December 31, 2020 = (Total present value of lease payment - Lease payment on July 2021) * 8% * 6/12

= $61,600 - $8,500 * 8% * 6/12

= $53,100 * 8% * 6/12

= $2,124

Depreciation Expenses up to December 31, 2021

= Fair value of equipment / Useful life * 6/12

= ($61,600 / 10) *6/12

= $6,160 * 6/12

= $3,080

Therefore, the total decrease in earnings (Pretax) in Larlas December 31, 2021 Income statement would be

= Interest expenses + Depreciation Expenses

= $2,124 + $3,080

= $5,204

Answer:

True

Explanation:

According to Keynes, if aggregate income is too high (i.e, an inflationary gap is developing) the government should use contractionary fiscal policy.

Fiscal policy in economics deals with government expenditure and income.

Therefore, c fiscal policy is a monetary measure which involves a reduction in government spending or an increase in tax. It is used to reduce the rates of monetary expansion by putting limits on the flow of money in the economy.

Contractionary fiscal policy is used to control inflation in an economy.

Expansionary fiscal policy is the opposite of contractionary fiscal policy. Expansionary fiscal policy is the increase in government spending and a decrease in tax. It is used to control deflationary gap.

Answer:

Reason : To ensure constant flow of cash

Explanation:

Accrual Basis of accounting records transactions when they meet definition and recognition criteria of Assets, Liabilities,Equity, Expense and Incomes.

This is different from cash-basis accounting which records transactions at the receipt or payment of cash.

Because of timing difference, the cash transactions (cash basis) can happen a late than the day of recognition of the elements (accrual basis).

Hence Revenue services demand that income tax be calculated on accrual basis to ensure a constant flow of cash whenever an entity transact.

Answer:

persuasion.

Explanation:

Persuasion is an influence tactic used to convince someone to do something.

In the workplace it can be a very effective tool for managers and salespeople.

Therefore, to be effective, your content must be aligned to your audience. It is necessary that the agent who will carry out the persuasion knows his audience to then identify what are his main characteristics and then develop an appropriate message.

For a manager, making a persuasive speech can convince employees to accept changes implemented in the organization, but the speech must be well thought out and delivered in a way that contains elements that justify the reason for what is being explained, in addition to being a clear communication and honest.

For salespeople, a persuasive speech can convince the customer to buy a product or service offered according to their rational and emotional motivations, if the persuasion agent knows how to analyze them and shape their speech according to the customer.

Answer:

D) sales promotions.

Explanation:

Since Luke seeks options available to him to promote an energy drink, Turbozade, that has decreasing sales volumes after having peaked some time back. The marketing communications tool that Luke should focus marketing efforts on to keep the sales volume up is the use of sales promotions.

A sales promotion can be defined as a marketing strategy which is used by manufacturers to promote a product through the application of various short-term attractive incentives, in order to stimulate the demand and purchase of such products. Basically, it involves all short-term techniques and tactics developed by a manufacturer used to persuade customers into buying its products and consequently boosting the sales of such products.

Hence, Luke should initiate a sales promotions so as to keep the sales volume up.

Answer:

The natural rate of unemployment = frictional unemployment + structural unemployment. it doesn't include cyclical unemployment because the natural rate of unemployment can only occur when the economy is growing while the cyclical unemployment happens when the economy stops growing or falls in a recession.

The factors that affect the natural rate of unemployment are imperfections in the labor market (e.g. minimum wages or taxes associated to employment), or employees that cannot adjust to changes in the economy, the labor market or even our normal daily lives (e.g. it is extremely difficult for someone that doesn't know how to use a computer to find a job nowadays, and this is a permanent change that applies almost everywhere).

There is no such thing as 0 unemployment, because people are always looking for better jobs and the skills necessary for performing certain jobs keep changing. Some abnormal events like the current health pandemic also increase the natural rate of unemployment, at least temporarily. Other factors that may decrease the natural rate of unemployment are wars, e.g. with WWII there was a labor shortage.  

Answer:

1. Pat is Middle Level.

Pat is trying to implement the strategic goals of the company which are set by Top Management. That would make Pat a Middle level manager.

2. Rick is Top Level.

Rick is developing the policies for the entire company which would place Rick at Top Manager level.

3. Daisy is a First-line Manager

Daisy is responsible for the loading products such that it is done effectively. This is an operational duty which would place Daisy at First-line level.

4. Ruth is a First-Line Manager

Ruth directs art staff who are non-managers which would make Ruth a first-line manager

5. Gary is Top Level

By developing projections on long term growth, that means Gary contributes to strategic decisions thereby making Gary top level.

6. Greg is Middle Level

Greg is in charge of first line managers which places him directly on top of them which means he is a middle level manager.

7. Mike is a Team Leader

Mike is in charge of the team which is the textbook role of a team leader.

8. Nancy is a Team leader

The members of the team go to Nancy when they need to resolve conflict or when they want to coordinate their activities. As the team leader is in charge of team coordination, Nancy must therefore be a team leader.

Answer:

e. increasing relative costs.

Explanation:

The law of increasing relative costs is a principle in economics which states that, the opportunity cost of producing a good would always increase as more of the product is being produced.

Hence, when the opportunity cost of producing a good rises as you produce more of it, you experience increasing relative costs because the factors of production (capital, labor and land) are now at a maximum level of output.

Furthermore, the opportunity cost, also known as the alternative forgone, can be defined as the value, gains or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, gains or value associated with the alternative forgone or best alternative choice available.

Answer: $‭49,120‬

Explanation:

Given the collection strategy listed, the total cash received in April would be

= Cash sales for April + (30% * March credit sales) + ( 62% of April credit sales)

= 39,000 + ( 0.3 * 11,000 ) + ( 0.62 * 11,000)

= 39,000 + 3,300 + ‭6,820‬

= $‭49,120‬

Answer:

a. Facility Level

b. Facility Level

Explanation:

Facility level costs are costs incurred to maintain the company in its entirety. It is not directly ascribable to any specific products or product lines.

In the case of the Airport store, the off-airport warehouse will be used to store all their storable products so this relates to an activity that benefits the entire store.

For the individual bottle of water, this is also a facility level cost as the off-airport warehouse will be used to store a number of bottles and as such is for the benefit of the entire company producing the bottles.

Answer:

a. The intrinsic value of a share of Xyrong stock is $90.91.

b. Your expected 1-year holding-period return on Xyrong stock is 5.82%.

Explanation:

Given in the question are the following:

rf = risk-free rate of return = 8%, or 0.08

rm = expected rate of return on the market portfolio = 15%. or 0.15

b = beta = 1.2

dp = Dividend payout ratio = 40%, or 0.40

e = latest earnings = $10

ROE = Return on equity = 20%, or 0.20

We therefore proceed as follows:

a. What is the intrinsic value of a share of Xyrong stock ? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

This can be calculated using the formula for calculating the intrinsic value of a share as follows:

Intrinsic value = (e * dp) / [rf + b * (rm - rf) - ROE * (1 - dp)] .......... (1)

Substituting the values into equation (1), we have:

Intrinsic value = ($10 * 40%) / [8%+ 1.2 * (15% - 8%) - 20% * (1 - 40%)]

Intrinsic value = $4 / [8% + 1.2 * 7% - 20% * 60%

Intrinsic value = $4 / (8% + 0.084 - 12%)

Intrinsic value = $4 / 0.044

Intrinsic value = $90.91

Therefore, the intrinsic value of a share of Xyrong stock is $90.91.

b. If the market price of a share is currently $100, and you expect the market price to be equal to the intrinsic value one year from now, what is your expected 1-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

To do this, we first calculate the price of the share after one year from now as follows:

p1 = Intrinsic value * (1 + ROE * (1 - dp)) ............................ (2)

Where p1 denotes the price of the share after one year from now.

Substituting the relevant values into equation (2), we have:

p1 = 90.91 * (1 + 20% * (1-40%))

p1 = 90.91 * (1 + 20% * 60%)

p1 = 90.91 * 1.12

p1 = 101.8192

We can now calculate the expected 1-year holding-period return on Xyrong stock as follows:

Expected 1-year holding-period return = (p1 + e * dp) / 100 - 1 ............ (3)

Substituting the relevant values into equation (3), we have:

Expected 1-year holding-period return = [(101.8192 + 10 * 40%) / 100] - 1

Expected 1-year holding-period return = [105.8192 / 100] - 1

Expected 1-year holding-period return = 1.058192 - 1

Expected 1-year holding-period return = 0.058192, or 5.82%

Therefore, your expected 1-year holding-period return on Xyrong stock is 5.82%.

Answer:

If Division X refuses to accept the $19 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:_________.

c. worse off by $28,600 each period.

Explanation:

The $28,600 loss the company incurs is from the lost contribution that Division Y's purchase of Division X's parts could have brought to the company if it buys parts inhouse.  This is calculated as follows:

Division X's variable cost per unit = $17

Division X's selling price to outside customers = $23

Division Y's offered buying price = $19

The contribution = $2 ($19 - $17)

Answer: $17800

Explanation:

The opening balance of Retained earnings = $24,100

Net Income for the year = $19,900

Closing balance of Retained earnings = $ 26,200

The, the amount of dividends declared during the year = (opening balance) +(Net Income) -( Closing balance)

= $ (24100+19900-26200)

= $17800

Hence, the amount of dividends declared during the year  is $17800.

Answer:  Internal rate of return

Explanation:

The Internal Rate of Return is a financial analysis measure that yields a net present value of zero for an investment. In so doing it can be used to determine the financial viability of a project.

It does this by telling the company which required rate of return will return a positive NPV because the logic is that if the Required Rate of Return for the project is lower than the IRR, it will yield an NPV greater than 0 which is what the IRR was able to yield because it would discount the cashflows less.

Answer:

A.  Pam buys a new 40-inch television at Walmart.

Explanation:

Gross Domestic Product is the sum monetary value of goods and services purchased in a country within a specific length of time. It can be calculated on an annual or quarterly basis. It helps economists in making decisions. The GDP has to be recorded so that it can be accounted for. The GDP is calculated based on income, expenditure, or production.

From the options given, only Pam has performed an activity that can be rightly included in GDP. This is because she purchased an item (expenditure) that would be recorded by the supermarket and eventually accounted for in the country's GDP.

Answer: inflation

Explanation: Inflation is an increase in the general level of prices or in the cost of living and is not a part of the major components of a time series which is defined as a set of data points, each of which represents the value of the same variable at different times, normally at uniform intervals. It consists of: seasonal variations (repeats over a specific period), trend variations (moves up or down in a reasonably predictable pattern), cyclical variations (corresponds with economic cycles or which sometimes follow their own peculiar cycles), and random variations that do not fall under any of the above classes.

Answer and Explanation:

(1) Decrease in investment = Decrease in money supply / Investment multiplier

= $60 billion / 5 = $12 billion

Real planned investment will decrease by $12 billion

The Federal Reserve decreased money supply by 60 billion and we wish to determine by how much this would affect real planned investment. We have therefore applied the investment multiplier to determine decrease in real planned investment. This is based on Keynes' theory of investment multiplier

Answer:

D.

It enforces that each group member's compensation depends in part on the group's overall productivity.

Explanation:

Zappos is an online company that retails shoes and clothes. They have an extremely flat organisational structure that promotes employee involvement in major business decisions.

For example it allows its customer service employees attend to customers in their own way rather than following a script.

One way Zappos has maintained organisational control is by each group member's compensation depending in part on the group's overall productivity.

This strategy ties the employee compensation to the company's performance, so they are motivated to put in their best.