Answer:
The real interest rate is "3%".
Explanation:
Given:
Nominal interest rate,
n = 5%
Inflation rate,
i = 3%
As we know,
⇒ [tex](1+n) = (1+r)\times (1+i)[/tex]
or,
⇒ [tex](1+r)=\frac{(1+n)}{(1+i)}[/tex]
By substituting the values, we get
[tex](1+r)=\frac{1+0.05}{1+0.03}[/tex]
[tex](1+r)=\frac{1.05}{1.03}[/tex]
[tex](1+r)=1.029[/tex]
[tex]r=1.029-1[/tex]
[tex]=0.029[/tex]
or,
[tex]=3[/tex]%
Identify the following is structural, frictional, cyclical and seasonal employment.
a. Andrew recently lost his job as an accountant for a large firm because he only knows how to perform the job using a general ledger (paper and pencil), and has been unwilling to learn how to use newly invented accounting software provided by the company.
b. Sam recently lost his job as an accountant for a large firm because he only knows how to perform the job a using a general ledger and has been unwilling to learn how to use newly invented accounting software provided by the company.
c. Teresa just graduated from college and is looking for a full time position with an investment banking firm.
d. A recent recession has reduced the number visitors to a local theme park. The park has had to lay off many of its employee, including Beth.
Answer:
Frictional unemployment occurs when people decided to leave their jobs and look for another or people join the labor force for the first time.
Structural unemployment arises from a situation where there is a mismatch between the skills needed in an economy and the skills possessed by people. Happens a lot when employees need to adapt to new technology.
Cyclical unemployment happens as a result of the economy either growing or shrinking.
a. Andrew recently lost his job as an accountant for a large firm because he only knows how to perform the job using a general ledger (paper and pencil), and has been unwilling to learn how to use newly invented accounting software provided by the company. ⇒ STRUCTURAL UNEMPLOYMENT.
b. Sam recently lost his job as an accountant for a large firm because he only knows how to perform the job a using a general ledger and has been unwilling to learn how to use newly invented accounting software provided by the company. ⇒ STRUCTURAL UNEMPLOYMENT.
c. Teresa just graduated from college and is looking for a full time position with an investment banking firm. ⇒ FRICTIONAL UNEMPLOYMENT.
d. A recent recession has reduced the number visitors to a local theme park. The park has had to lay off many of its employee, including Beth. ⇒ CYCLICAL UNEMPLOYMENT.
If a bank has a required reserve ratio of 25 percent and there is $10,000 in deposits, what is the maximum amount of loans that can be made by this bank
Answer: $40,000
Explanation:
Based on the information given in the question, the maximum amount of loans that can be made by this bank will be calculated as:
= Deposit × 1/Reserve ratio
= $10000 × 1/25%
= $10000 × 1/0.25
= $10000 × 4
= $40000
Therefore, the maximum increase in money supply is $40000.
Joe is currently selling 873 hamburgers per month at $5 per hamburger for total monthly sales of $4,365. The restaurant manager feels that a $1,000 monthly advertising budget would increase monthly sales by $3,000 to a total of 1,473 hamburgers. Should Joe add advertising
Answer:
Yes
Explanation:
Yes, as long as Joe is able to recover the money that he has spent on advertising and still increase his profit, then he should advertise. In this scenario, he wants to spend a fixed $1000 monthly on ads. If these ads generate an increase monthly sales of $3,000 as expected, then this means that Joe's restaurant will increase their total profits by $2,000 after recovering what they spent on the ads. This is what ads are for.
Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 32,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $557,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $679,453 and its actual total direct labor was 32,500 hours.
Required:
Compute the company’s plantwide predetermined overhead rate for the year.
Answer:
Predetermined manufacturing overhead rate= $19.41 per direct labor hour
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (557,000 / 32,000) + 2
Predetermined manufacturing overhead rate= $19.41 per direct labor hour
f pressure is put on the government to maintain a balanced budget during a recession. In this scenario, government would need to _____ taxes, which would cause aggregate demand to ____. Group of answer choices
Answer:
Increase
fall
Explanation:
A recession occurs when the gross domestic product of a country for two consecutive quarters is negative.
Annually balanced budget is a budget where at the end of every year, revenue must equal expenditure.
If in a recession, a government is under pressure to maintain a balanced budget, the government would need to increase taxes. this is because income would be less than government expenditure as a result of the recession. In order to maintain a balanced budget, the government can either increases taxes are reduce expenditure.
When taxes are increased, disposable income falls and this causes aggregate demand to fall
Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $1,400,000 of 4-year, 7% bonds at a market (effective) interest rate of 6%, receiving cash of $1,449,138. Interest is payable semiannually on April 1 and October 1.
Required:
A. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles.
1. Issuance of bonds on April 1.
2. First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.)
B. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000.
Answer:
A1.Apr.1
Dr Cash $1,449,138
Cr Premium on Bonds Payable $49,138
Cr Bonds Payable $1,400,000
A2. Oct. 1
Dr Interest Expense $24,431
Dr Premium on Bonds Payable $24,569
Cr Cash $49,000
B. The BONDS was paying HIGHER INTEREST RATE of 7% to the MARKET INTEREST RATE of 6%.
Explanation:
A1. Preparation of the journal entry to record Issuance of bonds on April 1Apr.1
Dr Cash $1,449,138
Cr Premium on Bonds Payable $49,138
($1,449,138-$1,400,000)
Cr Bonds Payable $1,400,000
(To record Issuance of bonds)
A2. Preparation of the journal entry to record First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method.
Oct. 1
Dr Interest Expense $24,431
($49,000-$24,569)
Dr Premium on Bonds Payable $24,569
[($1,449,138-$1,400,000)4*2]
Cr Cash $49,000
( $1,400,000 x 7% x 6/12)
(To record First interest payment and amortization of bond premium )
B. Based on the information given the reason
WHY the company was able to issue the bonds for $20,811,010 RATHER THAN for the FACE AMOUNT of $20,000,000 was because the BONDS was paying HIGHER INTEREST RATE of 7% to the MARKET INTEREST RATE of 6%.
1. Ranghu started business with cash $80,000, goods $40,000 and furniture $20,000.
2. Sold goods to Anna of the list price $2000 at trade discount of 10%.
3. Paid rent $800, Trade expenses $400and Travelling expenses $500.
4. Deposited to AC bank for opening a current account $25,000.
5. Bought goods from Kamal for $20,000 at a trade discount of 10% and Cash discount of 2%. Paid 60% amount immediately.
Answer:
1.Raghu start the business with three things i. e cash, goods, furniture etc. Something that come in the business is debited. All these things are done by the properitor. Hence all these things are goes to Capital account. JOURNAL ENTRY WILL BE!!!! Cash a / c . Dr. 80,000 Purchase a / c . Dr. 40,000 Furniture a / c . Dr 20,000 ..To Capital a/c........... 1,40,000 (being started business with cash, goods and furniture.)
2.The answer will be Rs.1800 Explanation: 2000^ * 10\%=200 2000-200=18003.Answer will be $7004.250005.5000 please mark as brainliestIf fixed costs are $288,000, the unit selling price is $75, and the unit variable costs are $49, the old and new break-even sales (units), respectively, if the unit selling price increases by $5 are a.3,840 units and 11,077 units b.11,077 units and 3,840 units c.11,077 units and 9,290 units d.5,878 units and 8,790 units
Answer:
Results are below.
Explanation:
Giving the following information:
Fixed costs= $288,000
Selling price= $75
Unitary variable costs= $49
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 288,000 / (75 - 49)
Break-even point in units= 11,077
Now, if the selling price is $80:
Break-even point in units= 288,000 / (80 - 49)
Break-even point in units= 9,290
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 48,000 48,000
Accounts
Receivable 18,000 18,000
Supplies 6,000 6,000
Equipment 57,000 57,000
Accumulated Depreciation 18,000 18,000
Accounts Payable 25,000 25,000
Wages Payable 6,000 6,000
Common Stock 30,000 30,000
Retained Earnings 3,000 3,000
Dividends 3,000 3,000
Fees Earned 155,000 155,000
Wages Expense 63,000 63,000
Rent Expense 27,000 27,000
Depreciation
Expense 15,000 15,000
Totals 237,000 237,000 105,000 155,000 132,000 82,000
Net Income (Loss) 50,000 50,000
155,000 155,000 132,000 132,000
The entry to close Dividends would be:_____.
a. debit Retained Earnings, $3,000; credit Common Stock, $3,000.
b. debit Common Stock, $3,000; credit Retained Earnings, $3,000.
c. debit Dividends, $3,000; credit Retained Earnings, $3,000.
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.
Answer:
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.
Explanation:
The journal entry to close the dividend account should be
Retained earnings Dr $3,000
To Dividend $3,000
(being the closing of the dividend account is recorded)
here the retained earning is debited as it decreased the stockholder equity and dividend is credited as it is closed
Suppose Sam and Teresa are playing a game in which both must simultaneously choose the action Let Or Right. The payoff matrix that follows shows the payoff each person Will earn as a function Of both Of their choices. For example, the lower-right cell shows that if Sam chooses Right and Teresa chooses Right, Sam will receive a payoff of S and Teresa will receive a payoff of 1.
Teresa
Left Right
Sam Left 8, 4 4, 5
Right 5, 4 6, 5
The only dominant strategy in this game is for __________ to choose____________ . The outcome reflecting the unique Nash equilibrium in this game is as follows: Sam chooses _____________ and Teresa chooses ______________.
Answer:
The only dominant strategy in this game is for Teresa to choose Right. The outcome reflecting the unique Nash equilibrium in this game is as follows: Sam chooses Right and Teresa chooses Right.
Explanation:
Given:
Teresa
Left Right
Sam Left 8, 4 4, 5
Right 5, 4 6, 5
A dominant strategy is one that makes a player in a game better off regardless of the choice of strategy of his opponent.
An examination of the payoff matrix above shows that when Sam plays Left, Teresa will play Right because 5 > 4. When Sam plays Right, Teresa will still play Right because 5 > 4. This is an indication that Teresa will always play Right no matter what Sam plays. Therefore, the dominant strategy for Teresa is Right.
On the other hand, when Teresa plays Left, Sam will also play Left because 8 > 5. And when Teresa plays Right, Sam will also play Right because 6 > 4. This implies that Sam does not have any unique strategy that make him better off. Therefore, Sam does NOT have a dominant strategy.
Therefore, we have:
The only dominant strategy in this game is for Teresa to choose Right. The outcome reflecting the unique Nash equilibrium in this game is as follows: Sam chooses Right and Teresa chooses Right.
An accounting system that provides information that management can use to evaluate the performance of a department's activities is a:______.
A. Service accounting system.
B. Standard accounting system.
C. Revenue accounting system.
D. Departmental accounting system.
E. Cost accounting system.
Answer: D. Departmental accounting system.
Explanation:
As the term implies, Departmental accounting system engages in accounting for individual departments. The financial information of the department of interest will be recorded as well as other activities.
Management will then use this information to analyze and understand how well the department is doing. The information will also tell them if the department is being cost efficient and profitable.
If a company is operating in a developing or less-developed country, which type of challenge can arise that would affect the shipping and movement of physical goods in a country
Answer: b. an infrastructure challenge
Explanation:
Developing countries are not as infrautructurally advanced as developed countries. They do not always have good roads, airports in many areas or adequate railway networks.
When goods are being shipped therefore, these pose a problem to the company doing the shipping as they would have to surmount these challenges in order to get their products from point A to be. For instance, as a result of bad roads, more money would have to be spent maintaining trucks that get damaged.
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,160,000 in cash immediately. 2. Pay $461,000 immediately and the remainder in 10 annual installments of $94,000, with the first installment due in one year. 3. Make 10 annual installments of $156,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,730,000 five years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 8% interest rate. (Round your final answers to nearest whole dollar amount.)
Answer:
Option-2 is best alternative
Explanation:
Option-1
Present value of lumpsum amount -1160000
Option-2
Annual paymentt for 10 yrs -94000
Annuity for 10 yrs at 8% 6.7101
Present value of outflowws -630749
Add: Initial amount paid -461000
Present value of outflowws -1091749
Option-3
Annual paymentt for 9 yrs -156000
Annuity for 10 yrs at 8% 6.24689
Present value of outflowws -974515
Add: Initial amount paid -156000
Present value of outflowws -1130515
Option-4
Amount paid after 5 yrs -1730000
PVF at 5 yrs at 8% 0.680583
Present value -1177409
Option-2 is best alternative
Spanolia LLC is estimating its WACC. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for 1,000 USD. The firm's marginal tax rate is 40 percent. What is the after-tax cost of debt? Answer in % terms to 2 decimal places w/o the % sign.
Answer:
Spanolia LLC
The after-tax cost of debt is:
= 7.20%.
Explanation:
a) Data and Calculations:
Coupon interest rate of bonds = 12%
Maturity period = 20 years
Selling price = $1,000
Firm's marginal tax rate = 40%
After-tax cost of debt = Coupon interest rate * (1 - tax rate)
= 12% * (1 - 0.4)
= 12% * 0.6
= 7.20%
b) Spanolia's after-tax cost of debt is derived by multiplying the cost of debt by the after-tax rate. The after-tax cost of debt represents the interest that Spanolia LLC pays on the bonds less the income tax savings that it gains because interest expenses are tax-deductible.
Carstow uses the periodic inventory method. (In the periodic method it is assumed that all sales occur the last day of the accounting period - or after all purchases during the period.) Carstow had the following inventory transactions in May, of the current year. On May 1, Carstow had 250 units in inventory that cost $8 each. On May 14, Carstow purchased 800 units at $10 each. On May 20, Carstow purchased 60 units at $13 each. On May 24, Carstow purchased 110 units at $14 each. Carstow sold 840 units on May 28th for $28 each. Do a computation for items 1-6 in the left column. Then, match the computations to the description. There may be extra choices in the right column that will not be used. Round the weighted average cost per unit to the nearest penny for those computations. (Final answer should be rounded to the nearest dollar.)
1. Sales revenue
2. Total cost of goods available for sale during the period
3. Cost of goods sold under FIFO
4. Cost of goods sold under LIFO
5. Cost of ending inventory under LIFO
6. Cost of goods sold under weighted average
A. $3,300
B. $3,838
C. $4,420
D. $7,900
E. $8,484
F. $9,020
G. $12,320
H. $23,520
Answer:
Carstow Inc.
1. Sales revenue = H. $23,520
2. Total cost of goods available for sale during the period = G. $12,320
3. Cost of goods sold under FIFO = D. $7,900
4. Cost of goods sold under LIFO = F. $9,020
5. Cost of ending inventory under LIFO = A. $3,300
6. Cost of goods sold under weighted average = E. $8,484
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total
May 1 Beginning inventory 250 $8 $2,000
May 14 Purchase 800 $10 8,000
May 20 Purchase 60 $13 780
May 24 Purchase 110 $14 1,540
May 28 Total units/costs 1,220 $12,320
May 28 Sales 840 $28
May 28 Ending inventory 380
Sales revenue = $23,520 (840 * $28)
FIFO:
Cost of goods sold = $7,900 (250 * $8 + 590 * $10)
Ending inventory = $4,420 ($12,320 - $7,900)
LIFO:
Ending inventory = $3,300 ($250 * $8 + 130 * $10)
Cost of goods sold = $9,020 (12,320 - $3,300)
Weighted average costs:
Cost of goods available for sale = $12,320
Total units available for sale = 1,220
Unit cost of goods = $10.10 ($12,320/1,220)
Cost of goods sold = $8,484 (840 * $10.10)
Cost of occupancy, general management and salesforce management are considered ______________.
a) full costs
b) indirect costs
c) contribution accounting
d) All of the above
e) None of the above
Answer:
B) indirect costs
Explanation:
Indirect costs can be regarded as costs incurred whereby this cost are not directly assigned to a cost object specifically. Indirect costs can comes as a fixed cost, it can also come as variable cost. Some of Indirect costs are; personnel as well as
administration and security costs. They are costs that are not regarded as been directly related to production.
It should be noted that Cost of occupancy, general management and salesforce management are considered indirect costs.
A strategy that attempts to reduce the overall risk of an entire investment portfolio by investing in a variety of assets is called
Answer:
Portfolio diversification
Explanation:
Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio
Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.
to diversify assets in the portfolio should have zero correlation
A newscaster earns $26600 and wants to invest 10% of his/her monthly salary to save for retirement in 28 years. if he/she invests this money at 4.2% compounded monthly, how much money will he/she have at retirement?
a) How much will be saved each year?
b) What will be the monthly deposit?
c) What will be the amount in the account after 28 years?
Answer:
Results are below.
Explanation:
Giving the following information:
Annual salary= $26,600
Number of periods= 28*12= 336
Interest rate= 0.042/12= 0.0035
First, we need to calculate the annual savings:
Annual saving= 26,600*0.1= $2,660
Now, the monthly deposit:
Monthly deposit= 2,660/12= $221.67
Finally, the future value of the investment:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {221.67*[(1.0035^336) - 1]} / 0.0035
FV= $141,535.3
A firm that operates outside of a trading bloc will likely face the improved position of competitors within the trading bloc. True False
Answer:
True
Explanation:
In the case when the firm operated outside for a trading bloc due to which it improved the position of the competitors so this should be true as the trading bloc should be the economic integration and it can shape the pattern of thw world trade that protect from non-members imports
So, the given statement is true
Dake Corporation's relevant range of activity is 3,500 units to 8,500 units. When it produces and sells 6,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of product costs incurred to make 6,000 units is closest to:
Answer:
$89,100
Explanation:
Direct material = $6.6
Direct labor = $3.6
Variable manufacturing overheads = $1.35
Fixed manufacturing overheads = $3.3
Total production cost per unit = $6.6 + $3.6 + $1.35 + $3.3
Total production cost per unit = $14.85
Total amount of product cost incurred for 6000 unit:
= $14.85 * 6,000 units
= $89,100
what the modern era quantiteve approach manegmet
Answer:
The quantitative approach to management makes some suggestions to solve different problems facing the managers. It tells the managers to solve their problems with the help of the mathematical and statistical formulas. Some special formulas have been prepared to solve managerial problems.
Explanation:
If unit sales prices are $7 and variable costs are $5 per unit, how many units would have to be sold to break-even if fixed costs equal $8,000?
Answer: 4,000 units
Explanation:
The breakeven point of sales can be calculated by the formula:
= Fixed costs / Contribution margin
Contribution margin = Sales price - Variable cost
= 7 - 5
= $2
Breakeven point in sales:
= 8,000 / 2
= 4,000 units
The marginal product of labor in the production of computer chips is chips per hour. The marginal rate of technical substitution (MRTS) of hours of labor for hours of machine capital is . What is the marginal product of capital? The marginal product of capital is nothing chips per hour. (Enter your response as an integer.)
Answer: 500 chips per hour
Explanation:
Marginal rate of technical substitution is calculated by the formula:
= Marginal product of labor / Marginal product of capital
0.20 = 100 / marginal product of capital
Marginal product of capital * 0.20 = 100
Marginal product of capital = 100 / 0.20
= 500
If the substitution effect of the real interest rate on saving is larger than the income effect of the real interest rate on saving, then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving, for someone who's a lender.
Answer:
rise, fall
Explanation:
In the case when the subsitution effect with respect to the real rate of interest should be saved and more than the income effect on the real rate of interest so if there is an increased in the real rate of interest so there is an increase in the consumption also there is the fall in the savings
Also, if there is a more income effect, the consumption should rise and the savings would decline
Therefore the rise and fall should be considered to fill the blanks
SmartCorp sells 500 units, resulting in $75,000 of sales revenue, $32,000 of variable costs, and $20,000 of fixed costs. The number of units that must be sold to achieve $41,000 of operating income is: (Round intermediary calculations to two decimal places, and your final answer up to the nearest whole number.)
Answer: 709
Explanation:
selling price per unit will be:
= $75000/500
= $150
Variable cost per unit:
= $32000/500
= $64
Contribution margin per unit = $150 - $64 = $86
Number of units to be sold will now be:
= ($20000 + $41000) / $86
= $61000/$86
= 709
Use the following information for a manufacturer to compute cost of goods manufactured and cost of goods sold:
(Click the icon to view the information.)
First, compute cost of goods manufactured.
Schedule of Cost of Goods Manufactured
Beginning Work-in-Process Inventory $42,000
Direct Materials Used:
Beginning Direct Materials $28,000 Purchases of Direct Materials 70,000
Direct Materials Available for Use 98,000 Ending
Direct Materials (30,000)
Direct Materials Used $68,000
Direct Labor 86,000
Manufacturing Overhead 38,000
Total Manufacturing Costs Incurred during the Year 192,000
Total Manufacturing Costs to Account For 234,000
Ending Work-in-Process Inventory (35,000)
Cost of Goods Manufactured $199,000
Now compute cost of goods sold.
Cost of Goods Sold Direct Materials Available for Use 98000 Cost of Goods Manufactured 199000
Cost of Goods Available for Sale
Total Operating Costs
Cost of Goods Sold
Answer:
Results are below.
Explanation:
First, we need to calculate the cost of goods manufactured using the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 42,000 + (28,000 + 70,000 - 30,000) + 86,000 + 38,000 - 35,000
cost of goods manufactured= $199,000
Now, the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
We do not have information regarding the beginning and ending finished goods inventory. But, suppose the beginning inventory equals $45,000 and the ending inventory $30,000:
COGS= 45,000 + 199,000 - 30,000
COGS= $214,000
Rick has met with the Small Business Administration, which analyzed his entrepreneurial skills and provided him with a summary of the results. Out of these findings of the SBA, what might challenge Rick in his quest to become a successful entrepreneur? a) Rick is conscientious and emotionally stable. b) Rick has some tolerance for ambiguity because he knows he is trying to do things that haven't been done before. c) Rick has an external locus of control. d) Rick is comfortable with a moderate level of risk, and he has the confidence to act decisively. e) Rick has a high nec Rick has a high need for autonomy and wants to shape his own destiny
Answer:
c) Rick has an external locus of control.
Explanation:
What can challenge Rick in his quest to become a successful entrepreneur is that he has an external locus of control, which occurs when an individual relates events related to their failures or successes to external variables that are not their responsibility, such as fate, luck or bad luck.
The external locus of control can pose a challenge for Rick in the sense that an entrepreneur's success is related to his own personal control and personal efforts to make the business viable and successful in the market. It is necessary for the entrepreneur to understand that there are risks inherent to the business and that a business can work according to their efforts, learning and planning, that is, the entrepreneur and their control and management actions will be responsible for the success or failure of the business, and not just external factors like fate or bad luck.
Marigold Company had the following operating data for the year for its computer division: sales, $650000; contribution margin, $147000; total fixed costs (controllable), $96000; and average total operating assets, $287000. What is the controllable margin for the year?
A. $51000.
B. $147000.
C. 15%.
D. 51%
Gantner Company had the following department information about physical units and percentage of completion: Physical Units Work in process, May 1 (60%) 60000 Completed and transferred out 180000 Work in process, May 31 (40%) 50000 If all materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May
Answer:
200,000 units by Weighted Average Cost Method
164,000 units by FIFO Method
Explanation:
1. Where Weighted Average Cost Method is used.
Assuming that Gantner Company uses the Weighted Average Cost Method, the total number of equivalent units for materials during May can be determined as follows :
Completed and transferred out (180000 x 100) 180,000
Ending Work In Process (50000 x 40%) 20,000
Total equivalent units for materials 200,000
1. FIFO Method is used.
Assuming that Gantner Company uses the FIFO Cost Method, the total number of equivalent units for materials during May can be determined as follows :
To Complete Opening Work in Process (60000 x 40%) 24,000
Completed and transferred out (180000 - 60,000) x 100% 120,000
Ending Work In Process (50000 x 40%) 20,000
Total equivalent units for materials 164,000
Using the probability approach to determine an inventory safety stock and wanting to be 95 percent sure of covering inventory demand, which of the following is the number of standard deviations necessary to have the 95 percent service probability assured?A) 1.28B) 1.64C) 1.96D) 2.00E) 2.18
Answer:
B) 1.64
Explanation:
Given that there is 95% service probability i.e. assured
So here the company applied the approach in normally that sets the probability for not stocking out the 95 percent
So it would have the approx 1.64 standard deviation with respect to the safety stock
Therefore the option c is correct