The Organization of Petroleum Exporting Countries (OPEC) is an example of a cartel.
A cartel is a group of businesses or organizations that collaborate to control the price or supply of a particular product or service in order to increase their profits. OPEC is composed of 14 member countries, all of which are major oil-producing nations.
The organization seeks to control the supply of oil in order to stabilize and increase the price of petroleum throughout the world, with the aim of enhancing the economies of its member nations. OPEC has been accused of engaging in monopolistic practices, but it argues that it is a legitimate organization that operates in the interests of its member countries and the global economy.
For more such questions on cartel
https://brainly.com/question/8515693
#SPJ11
Proponents of NAFTA argued many would benefit from the movement of low-skilled, labor-intensive production to ______, which might have a competitive advantage in this area.
Proponents of NAFTA argued many would benefit from the movement of low-skilled, labor-intensive production to Mexico, which might have a competitive advantage in this area.
Labor-intensive refers to any activity or process that requires a significant amount of manual labor or physical work to complete. In a labor-intensive industry, the primary factor of production is human labor rather than machines or technology. This could include tasks such as farming, construction, mining, or manufacturing. In these industries, workers typically perform repetitive and physically demanding tasks that require a significant amount of effort and time.
Labor-intensive industries are often associated with lower levels of productivity, as the time and effort required to complete tasks are greater. However, labor-intensive industries can also provide employment opportunities for individuals with limited education or training. In developing countries, labor-intensive industries often provide a pathway out of poverty for individuals and families.
To learn more about labor-intensive visit here:
brainly.com/question/11178723
#SPJ4
What occurs when a secured party takes back collateral because the debtor has failed to make payments when due
When a secured party takes back collateral because the debtor has failed to make payments when due, the process is called repossession.
Repossession occurs when a borrower defaults on their loan, which can be due to missed payments, a violation of the loan agreement, or other circumstances outlined in the contract.
The steps involved in repossession are as follows:
1. Default: The debtor fails to make payments when due or breaches the loan agreement in another way.
2. Notice of default: The secured party may send a notice of default to the debtor, informing them of the missed payments and providing a grace period to rectify the situation.
3. Acceleration of the loan: If the debtor doesn't rectify the default within the grace period, the secured party can accelerate the loan, which means the entire outstanding balance becomes immediately due.
4. Repossession: If the debtor is still unable to make payments, the secured party has the legal right to take back the collateral. This may involve hiring a repossession agent to physically retrieve the asset.
5. Disposal of collateral: After repossession, the secured party may sell the collateral through a public or private sale to recover the outstanding loan amount.
6. Deficiency: If the sale of the collateral does not cover the outstanding loan balance, the debtor may still be responsible for the remaining debt, known as the deficiency.
Repossession is a last resort for secured parties, as it can be costly and time-consuming. However, it allows them to recover some or all of the outstanding debt by taking back the collateral and selling it.
The debtor may face negative credit consequences, and it's essential for both parties to understand their rights and obligations in such situations.
To know more about repossession refer here
https://brainly.com/question/31534246#
#SPJ11
Riki, the owner of Simply Sushi, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization
It also comes with the disadvantage of personal liability for the business's debts and liabilities, as well as the difficulty in raising capital.
As a sole proprietor, Riki is the sole owner and manager of Simply Sushi. The main characteristic of this form of business organization is that Riki has complete control over all aspects of the business, including decision-making and profits. Additionally, Riki is personally responsible for all of the business's debts and liabilities. This means that if Simply Sushi goes bankrupt, Riki's personal assets can be used to pay off the business's debts. One of the main advantages of being a sole proprietor is that Riki has complete control over the business. This means that Riki can make decisions quickly without having to consult with others, which can be advantageous in a fast-paced industry like the restaurant business. Additionally, Riki is able to keep all of the profits earned by Simply Sushi. However, there are also several disadvantages to being a sole proprietor. Riki is personally responsible for all of the business's debts and liabilities, which can be risky if Simply Sushi incurs large debts or is sued. Additionally, it can be difficult for Riki to raise capital for the business, as lenders and investors may be hesitant to invest in a sole proprietorship.
Learn more about liability here
https://brainly.com/question/25687338
#SPJ11
The production budget shows expected sales of 34,000 units. Beginning balance for finished goods is 5,200 units. Required production is 37,500 units. What is the desired ending balance for the finished goods units
The desired ending balance for the finished goods units is 8,700 units. This means that at the end of the production cycle, there should be 8,700 units of finished goods in inventory.
To determine the desired ending balance for finished goods units,
Desired Ending Balance = Required Production - Expected Sales + Beginning Balance
The desired ending balance will be:
Desired Ending Balance = 37,500 - 34,000 + 5,200
Desired Ending Balance = 8,700 units
Therefore, the desired ending balance for the finished goods units is 8,700 units. This means that at the end of the production cycle, there should be 8,700 units of finished goods in inventory. This is important for ensuring that there is enough inventory to meet customer demand while also minimizing excess inventory that could lead to storage costs and waste. By using a production budget and tracking inventory levels, businesses can better manage their resources and ensure that they are meeting their sales goals while also operating efficiently.
For more such questions on production
https://brainly.com/question/14293417
#SPJ11
n determining the appropriate discount rate for an individual project, the financial manager will be most influenced by the Multiple Choice expected value. internal rate of return. standard deviation. coefficient of variation.
The financial manager will be most influenced by the internal rate of return (IRR) when determining the appropriate discount rate for an individual project.
When determining the appropriate discount rate for an individual project, the financial manager considers various factors. The discount rate represents the minimum rate of return required to justify the investment. Here's an explanation of the options mentioned:
1. Expected value: The expected value is a measure of the average outcome of an investment, but it does not directly influence the choice of discount rate.
2. Internal rate of return (IRR): The IRR is the discount rate that makes the net present value (NPV) of an investment equal to zero. It is a crucial metric for evaluating the feasibility and profitability of a project. The financial manager compares the IRR to the required rate of return or the company's cost of capital to make investment decisions.
3. Standard deviation: Standard deviation measures the dispersion of possible returns around the expected value. While it is important for assessing risk, it is not specifically used to determine the discount rate.
4. Coefficient of variation: The coefficient of variation (CV) is the standard deviation divided by the expected value, expressing risk per unit of return. Although it provides a relative measure of risk, it does not directly determine the discount rate.
Among the options provided, the internal rate of return (IRR) is the most influential factor in determining the appropriate discount rate for an individual project. The IRR helps the financial manager assess the project's profitability and decide whether the expected return exceeds the required rate of return.
Learn more about investment here:
https://brainly.com/question/17252319
#SPJ11
A cross-functional team is useful in solving recurring problems because they are a(n) ______ integrating mechanism
A cross-functional team is useful in solving recurring problems because they are a coordinating or integrating mechanism.
Cross-functional teams bring together employees from different functional areas of an organization to work together on a specific project or problem. They provide a means of coordination and integration between different departments or functions, helping to break down silos and promote collaboration.
By working together, cross-functional teams can draw on the diverse expertise and perspectives of team members to develop more effective solutions to recurring problems.
To know more about Cross-functional teams refer here
https://brainly.com/question/13369885#
#SPJ11
The management of Gibraltar Brokerage Services anticipates a capital expenditure of $23,000 in 3 years for the purchase of new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 2%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund. (Round your answer to the nearest cent.)
The size of each equal quarterly installment to finance the purchase of new computers is approximately $1,872.55.
To determine the size of each quarterly installment for Gibraltar Brokerage Services' sinking fund, we need to use the formula for the future value of an ordinary annuity:
FV = PMT * [(1 + i)^n - 1] / i
Where FV is the future value of the annuity, PMT is the quarterly installment, i is the interest rate per period, and n is the number of periods.
Given the information, the future value (FV) is $23,000, the annual interest rate is 2%, and the sinking fund will be set up for 3 years, with interest compounded quarterly.
First, we need to find i (interest rate per period) and n (number of periods). Since interest is compounded quarterly, we divide the annual interest rate by 4:
i = (2% / 4) / 100 = 0.005 (0.5% per quarter)
Next, we find the total number of periods by multiplying the number of years by the number of compounding periods per year:
n = 3 years * 4 quarters/year = 12 quarters
Now, we can plug these values into the formula to find the quarterly installment PMT:
$23,000 = PMT * [(1 + 0.005)^12 - 1] / 0.005
$23,000 = PMT * [1.0614 - 1] / 0.005
$23,000 = PMT * 0.0614 / 0.005
$23,000 = PMT * 12.2788
Now, we divide the future value by 12.2788 to find the quarterly installment PMT:
PMT = $23,000 / 12.2788
PMT ≈ $1,872.55
Learn more about installment here
https://brainly.com/question/11468274
#SPJ11
When a certain monopoly sets its price at $10 it sells 64 units. When the monopoly sets its price at $11 it sells 62 units. The marginal revenue for the firm over this range is
The marginal revenue for the monopoly over the given price range is -$21.
Marginal revenue (MR) is the additional revenue that a firm earns by selling one more unit of its product. It is calculated as the change in total revenue (TR) divided by the change in quantity sold (Q).
In this case, we can calculate the marginal revenue for the monopoly over the given price range as follows:
When the price is $10, the monopoly sells 64 units. Total revenue (TR) at this price is:
TR = Price x Quantity = $10 x 64 = $640
When the price is $11, the monopoly sells 62 units. Total revenue at this price is:
TR = Price x Quantity = $11 x 62 = $682
The change in total revenue between these two prices is
ΔTR = $682 - $640 = $42
ΔQ = 62 - 64 = -2
Note that the change in quantity sold is negative because the quantity sold decreases as the price increases.
Therefore, the marginal revenue over this price range is:
MR = ΔTR / ΔQ = $42 / (-2) = -$21
The negative sign indicates that the marginal revenue is decreasing as the price increases. This is because the monopoly has to lower its price in order to sell more units, which reduces the additional revenue earned from each additional unit sold.
For more such questions on monopoly visit:
https://brainly.com/question/7217942
#SPJ11
In an economy with no taxes or imports, if the marginal propensity to consume increases, the marginal propensity to save will _____. decrease not change increase by the same factor as the marginal propensity to consume increase by ½
The relationship between the marginal propensity to consume and the marginal propensity to save is inverse.
This means that if the marginal propensity to consume increases, the marginal propensity to save will decrease. This is because the sum of the marginal propensity to consume and the marginal propensity to save always adds up to 1. Therefore, if one of them increases, the other must decrease.
In an economy with no taxes or imports, the marginal propensity to consume refers to the proportion of each additional dollar earned that is spent on consumption. The marginal propensity to save, on the other hand, refers to the proportion of each additional dollar earned that is saved instead of being spent on consumption.
So, if the marginal propensity to consume increases, it means that people are spending a larger portion of their income on consumption, leaving less money to be saved. Therefore, the marginal propensity to save will decrease. It is important to note that this change in the marginal propensity to save will not be by the same factor as the marginal propensity to consume. It may be greater or smaller depending on the exact values of the marginal propensities involved.
Learn more about marginal propensity
brainly.com/question/29035456
#SPJ11
If the government saw that consumer confidence was excessive, what step could it take to shift the AD to the left
If the government saw that consumer confidence was excessive, it could take steps to shift the aggregate demand (AD) curve to the left, which would help reduce inflationary pressures in the economy.
One way to achieve this is through contractionary fiscal or monetary policy. For example, the government could decrease its spending on goods and services or increase taxes, which would reduce consumer spending and shift the AD curve to the left. Alternatively, the central bank could increase interest rates, which would increase the cost of borrowing and reduce consumer spending, also shifting the AD curve to the left. Another approach is to use a combination of fiscal and monetary policy to achieve the desired result.
Learn more about inflationary here:
https://brainly.com/question/31055481
#SPJ11
Recently, policy makers have debated whether an increase in the federal minimum wage, currently at $7.25 an hour, would be good for the economy. Determine how each of the given scenarios affects the Phillips curve.
An increase in the federal minimum wage would shift the Phillips curve to the right. This is because higher wages would increase production costs for businesses, leading to higher prices and potentially causing inflation.
However, the exact extent of the shift would depend on other factors, such as the level of unemployment and the overall strength of the economy. If the economy is already at full employment, an increase in the minimum wage may have a larger impact on inflation.
On the other hand, if the economy is operating below its potential, the shift in the Phillips curve may be less pronounced. Ultimately, policy makers need to consider the potential trade-offs between higher wages for workers and potential inflationary pressures on the economy.
To know more about production costs, refer to the link:
https://brainly.com/question/29383456#
#SPJ11
pricing, a firm sets a very low price for one or more of its products with the specific intent to drive its competition out of
In content loaded pricing, a firm sets a very low price for one or more of its products with the specific intent to drive its competition out of the market.
This pricing strategy is used to gain a competitive advantage by undercutting the prices of rival companies, making the firm's products more attractive to consumers.
The main goal of this approach is to force competitors to either lower their prices, which can lead to decreased profitability for them, or to exit the market altogether.
As a result, the firm employing content loaded pricing can increase its market share and solidify its position in the industry.
There are several steps a company may follow when implementing content loaded pricing:
1. Identify target competitors: The firm should determine which competitors it wants to outperform and focus its pricing strategy on those companies.
2. Analyze competitors' pricing: Understanding competitors' pricing structures will help the firm set its own prices at a level low enough to attract consumers but high enough to maintain profitability.
3. Set low prices: The firm should set its prices significantly lower than those of its targeted competitors to make its products more appealing to consumers.
4. Monitor the market: The company should constantly evaluate market trends and competitors' reactions to adjust its pricing strategy as needed.
5. Be prepared for potential consequences: Content loaded pricing can result in a price war, which may lead to decreased profit margins for all companies involved. The firm should be prepared to adapt its strategy if necessary.
By using content loaded pricing, a firm aims to drive its competition out of the market by offering products at a lower price.
However, this strategy can be risky, as it can lead to price wars and reduced profitability for all parties involved. It is essential for companies to carefully consider the potential outcomes before implementing this pricing approach.
To know more about specific intent refer here
https://brainly.com/question/8960858#
#SPJ11
Question Number 2) According to Sylvia Taylor, the goal of ________ is getting the right people in the right jobs
According to Sylvia Taylor, the goal of ________ is getting the right people in the right jobs is Human resource management.
Human resource management is the field of managing and organizing employees within a company or organization. Sylvia Taylor believes that the ultimate goal of human resource management is to ensure that the right people are placed in the right jobs, with the right skills and qualifications to perform their duties effectively.
This involves various aspects such as recruitment, training and development, compensation and benefits, performance management, and employee relations. By achieving this goal, companies can maximize their human capital and ultimately achieve their business objective.
Human management refers to the process of identifying, attracting, developing, and retaining skilled employees to meet the organization's objectives.
. By ensuring that the right people are placed in the right positions, companies can optimize their performance and achieve their goals more efficiently.
To know more about Human resource management refer to
https://brainly.com/question/23428372
#SPJ11
Economic growth can be stimulated by Group of answer choices an increase the cost of energy. a decrease in the money supply. a decrease in the factors of production. an increase in deficit spending.
Economic growth can be stimulated by an increase in deficit spending.
This is because deficit spending involves the government spending more money than it collects in revenue, which can lead to increased investment in infrastructure, education, and other areas that can boost economic activity. This can lead to job creation, increased consumer spending, and overall economic growth.
On the other hand, an increase in the cost of energy can actually slow economic growth by increasing production costs for businesses and reducing consumer spending power. Similarly, a decrease in the factors of production (such as labor, capital, and natural resources) can also hamper economic growth by reducing the ability of businesses to produce goods and services.
A decrease in the money supply can also potentially slow economic growth by limiting the availability of credit and reducing consumer and business spending. In summary, while all of these factors can have an impact on economic growth, an increase in deficit spending is typically seen as the most effective way to stimulate economic growth in the short term.
Learn more about deficit spending:
brainly.com/question/30687122
#SPJ11
XYZ Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products: Standard Super Budgeted sales in units 2,160 540 Budgeted selling price $500 $1,500 Budgeted contribution margin per unit $80 $250 Actual contribution margin per unit $75 $220 Actual sales in units 1,820 980 Actual selling price $550 $1,400 The favorable total sales-mix variance in terms of the contribution margin is ____
The favorable total sales-mix variance in terms of the contribution margin is -$44,300.
To calculate the total sales-mix variance, we first need to calculate the budgeted total contribution margin and the actual total contribution margin.
Budgeted total contribution margin = (Budgeted sales of Standard x Budgeted contribution margin per unit of Standard) + (Budgeted sales of Super x Budgeted contribution margin per unit of Super)
= (2,160 x $80) + (540 x $250)
= $172,800 + $135,000
= $307,800
Actual total contribution margin = (Actual sales of Standard x Actual contribution margin per unit of Standard) + (Actual sales of Super x Actual contribution margin per unit of Super)
= (1,820 x $75) + (980 x $220)
= $136,500 + $215,600
= $352,100
The sales-mix variance is the difference between the budgeted and actual total contribution margin. If the actual sales mix is different from the budgeted sales mix, the sales-mix variance can be broken down into a favorable or unfavorable sales-mix variance.
Favorable total sales-mix variance = Budgeted total contribution margin - Actual total contribution margin
= $307,800 - $352,100
= -$44,300
For more about contribution margin:
https://brainly.com/question/29534784
#SPJ4
In the Solow growth model, ________ measures the labor input in terms of the physical number of workers and the knowledge and skills embodied in those workers.
In the Solow growth model, the labor input is measured in terms of both the physical number of workers and the knowledge and skills embodied in those workers.
This measure is commonly known as "effective labor." Effective labor recognizes that the productivity of workers is not only determined by the quantity of labor, but also by the quality of that labor.
For instance, workers with advanced education and training tend to be more productive than those without such qualifications.
In the Solow model, the growth rate of effective labor is an important determinant of long-term economic growth. This is because sustained growth in effective labor is essential for generating technological progress and increasing the productivity of the economy.
To know more about Solow growth model refer here: https://brainly.com/question/16243862#
#SPJ11
Assume the $13,624 Treasury bill, 5% for 10 weeks. Calculate the effective rate of interest. (Use calendar year. Round your answer to the nearest hundredth percent.)
The effective rate of interest for the Treasury bill is 5.61% when using calendar year.
To calculate the effective rate of interest, we first need to find the simple interest earned on the Treasury bill.
Simple interest = Principal x Rate x Time
Principal = $13,624
Rate = 5% per 10 weeks = 0.05/10 = 0.005 per week
Time = 10 weeks
Simple interest = $13,624 x 0.005 x 10 = $681.20
Next, we need to convert the simple interest to an annual rate.
52 weeks in a year / 10 weeks = 5.2 (number of periods in a year)
Effective rate of interest = (1 + Simple interest / Principal) ^ (number of periods in a year) - 1
Effective rate of interest = (1 + $681.20 / $13,624) ^ 5.2 - 1 = 0.0561 or 5.61%
Therefore, the effective rate of interest for the Treasury bill is 5.61% when using calendar year.
For more such questions on Treasury bill visit:
https://brainly.com/question/28042988
#SPJ11
Phillips developed a curve which shows the trade-off between the: Group of answer choices Full-employment and interest rates. Unemployment and inflation rates. Full-employment rate and the natural rate of unemployment. Natural rate of unemployment and exchange rates.
A curve created by Phillips illustrates the trade-off between unemployment and inflation rates. The Phillips Curve, as it is called, indicates that as unemployment declines, inflation rises and vice versa. Option 2 is Correct.
The curve suggests that while enacting economic reforms, authorities must choose between inflation and unemployment. A.W. Phillips created the curve in 1958, and economists have subsequently improved and built upon it.
The Phillips curve illustrates the inverse relationship between inflation and unemployment rates. Inflation will be low if unemployment is high, and high if unemployment is low. The components of the Phillips curve and the aggregate demand are comparable. Option 2 is Correct.
Learn more about unemployment visit: brainly.com/question/305041
#SPJ4
Correct Question:
Phillips developed a curve which shows the trade-off between the: Group of answer choices
1. Full-employment and interest rates.
2. Unemployment and inflation rates.
3. Full-employment rate and the natural rate of unemployment.
4. Natural rate of unemployment and exchange rates.
Strawberry Mansion Company sells its special strawberry pie for $23. The total cost to produce the pie is $10. Of this amount, $3 per unit is selling costs. The total variable cost is $6. The desired profit is $7 per unit. Determine the markup percentage on product cost. a.143% b.1.43% c.43% d.70%
The markup percentage on product cost is 100%. The correct answer is not provided in the given options.
To determine the markup percentage on product cost, we first need to calculate the total cost per unit.
Total cost per unit = Cost of production per unit + Selling costs per unit
Total cost per unit = $10 + $3 = $13
Next, we need to calculate the target selling price per unit.
Target selling price per unit = Total cost per unit + Desired profit per unit
Target selling price per unit = $13 + $7 = $20
Now we can calculate the markup percentage on product cost.
Markup percentage on product cost = (Target selling price per unit - Cost of production per unit) / Cost of production per unit x 100%
Markup percentage on product cost = ($20 - $10) / $10 x 100%
Markup percentage on product cost = $10 / $10 x 100%
Markup percentage on product cost = 100%
Therefore, the correct answer is not provided in the given options. The markup percentage on product cost is 100%. This means that the selling price is double the cost of production, and the company is making a profit of 100% on each unit sold.
For more such questions on product cost
https://brainly.com/question/28294479
#SPJ11
Alan, Drew, and Kendra all pay $12,000 in taxes. However, their salaries are very different. Based on this information, what kind of tax system is employed in this society
Based on this information, the kind of tax system employed in this society is proportional tax system.
It is given that Alan, Drew, and Kendra are all paying $12,000 in taxes, despite having different salaries. This indicates that a proportional tax system is employed in this society. In a proportional tax system, also known as a flat tax system, all individuals pay the same amount of tax, regardless of their income level. This differs from progressive and regressive tax systems, where the tax rate varies based on income.
Hence, the tax system in this society is proportional, as Alan, Drew, and Kendra all pay $12,000 in taxes despite having different salaries.
Learn more about Tax system:
https://brainly.com/question/29238265
#SPJ11
Economy A decides to increase production of capital resulting to an increase of level of capital per person. This is considered Group of answer choices physical capital human capital capital deepening captial gains
The scenario here described, where Economy A decides to increase production of capital, resulting in an increase of the level of capital per person, is known as capital deepening.
Capital deepening refers to the process by which an economy increases its stock of capital assets, such as machinery and equipment, to enhance the productivity of its workforce. This often leads to higher economic growth and improved living standards.
In this context, physical capital refers to tangible assets like buildings, machinery, and equipment, which are used in the production process. Human capital, on the other hand, represents the skills, knowledge, and experience possessed by individuals, which contribute to economic productivity.Capital deepening focuses on increasing the amount of capital available to each worker, thus enabling them to be more productive and generate more output. This is different from capital gains, which refer to the increase in the value of an asset, such as stocks or real estate, over time.In summary, the situation you described where Economy A increases its production of capital and raises the level of capital per person is an example of capital deepening. This process can lead to higher economic growth and improved living standards by enhancing the productivity of the workforce through increased access to physical and human capital.know more about the Capital deepening
https://brainly.com/question/30880353
#SPJ11
If there were 45,000 pounds of raw materials on hand on April 1st, 70,000 pounds are desired for inventory at April 30th, and 350,000 pounds are required for April production, how many pounds of raw materials should be purchased
375,000 pounds of raw materials should be purchased.
To determine the amount of raw materials that should be purchased, we need to calculate the total amount of raw materials needed for April production and subtract the amount of raw materials already on hand.
Total amount of raw materials needed for April production = 350,000 pounds
Raw materials on hand on April 1st = 45,000 pounds
Therefore, the amount of raw materials that should be purchased is:
70,000 pounds (desired inventory) + 350,000 pounds (April production) - 45,000 pounds (raw materials on hand on April 1st) = 375,000 pounds
Thus, 375,000 pounds of raw materials should be purchased.
Learn more about raw materials
https://brainly.com/question/13160417
#SPJ4
Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's return on equity ratio for 2017 is _________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)
Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's return on equity ratio for 2012 is 26.5%. The correct option is 26.5%.
To calculate the return on equity (ROE) ratio for Flathead Lake Manufacturing Company in 2012, we need to use the formula:
ROE = Net Income / Average Equity
From the given financial statements, we can find the following information:
Net Income = $225,000
Equity in 2011 = $800,000
Equity in 2012 = $900,000
To calculate the average equity, we will take the sum of the equity values from 2011 and 2012, and then divide it by 2:
Average Equity = (Equity in 2011 + Equity in 2012) / 2
Average Equity = ($800,000 + $900,000) / 2
Average Equity = $1,700,000 / 2
Average Equity = $850,000
Now, we can calculate the ROE:
ROE = Net Income / Average Equity
ROE = $225,000 / $850,000
ROE = 0.2647 (rounded to four decimal places)
To convert this to a percentage, multiply by 100:
ROE = 0.2647 * 100
ROE = 26.47% (rounded to two decimal places)
So, the firm's return on equity ratio for 2012 is approximately 26.5%.
The complete question is:
The Financial Statements Of Flathead Lake Manufacturing Company Are Shown Below:
Flathead Lake Manufacturing Income Statement 2012 $9,300,000 Sales Cost of Goods Sold 5,750,000 Depreciation Expense 550.000 $3,000,000 Gross Profit Selling and Administrative Expenses 2,200,000 EBIT 800,000 Interest Expense 200,000 600,000 Income before Tax 375,000 Taxes Net Income 225.000 Flathead Lake Manufacturing Comparative Balance Sheets 2012 2011 Cash 50,000 40,000 Accounts Receivable 570,000 600,000 460.000 Inventory 530,000 Total Current Assets 1,150,000 1,100,000 Fixed Assets 2,050,000 1,400,000 Total Assets 3,200,000 $2,S00,000 Accounts Payable 320,000 300,000 Bank Loans 480,000 400,000 Total Current Liabilities 800,000 700,000 Long-term Bonds 1,500,000 1.000.000 Total Liabilities 2,300,000 1,700,000 Common Stock (200,000 shares) 200,000 200,000 700,000 600,000 Retained Earnings Total Equity 900,000 800,000 Total Liabilities and Equity S 3,200,000 $2,500,000
Note: The common shares are trading in the stock market for $15 per share
Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's return on equity ratio for 2012 is _________. (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)
a) 38%
b) 26.5%
c) 33.4%
d) 6.5%
For more about equity ratio:
https://brainly.com/question/28391877
#SPJ11
If the state government gave you the exclusive right to sell cement to municipalities, your monopoly would result from: location. government restrictions to entry. economies of scale. sunk costs.
If the state government granted me the exclusive right to sell cement to municipalities, my monopoly would result from government restrictions to entry.
This is because the state government has limited the number of companies that can sell cement to municipalities, making it difficult for competitors to enter the market. This restriction is a form of government regulation that aims to protect the interests of the state and its citizens.
Economies of scale and sunk costs may also play a role in cement production, but they are not the primary drivers of a monopoly in this case. Economies of scale refer to the cost advantages that come with producing large quantities of a product. While this may benefit a company in the cement industry, it does not necessarily create a monopoly.
Sunk costs, on the other hand, are costs that a company incurs in the production of a good or service that cannot be recovered. These costs may include investments in infrastructure, equipment, and research and development. While they can be a barrier to entry for potential competitors, they are not the primary cause of a monopoly in this scenario. The correct option is government restrictions to entry.
For more about government restrictions:
https://brainly.com/question/28505668
#SPJ11
oyota's investment in the new plant causes Part 4 A. an increase in the current account balance in the United States. B. an increase in the financial account balance in Japan. C. an increase in the financial account balance in the United States. D. no change in the financial account balance in either country.
Oyota's investment in the new plant causes C. Toyota's investment in the new plant will lead to an increase in the financial account balance in the United States.
This is because the investment will involve a transfer of funds from Japan to the United States, which will increase the US dollar reserves held by Japanese investors. This, in turn, will increase the US financial account balance as it records transactions involving the purchase or sale of financial assets between residents of the United States and foreigners. It should be noted that this investment will not affect the current account balance in the United States as it only records transactions involving goods and services, while the financial account records transactions involving financial assets. The investment will also not affect the financial account balance in Japan since it involves a transfer of funds from Japan to the United States.
To learn more about investment, visit:
https://brainly.com/question/30529793
#SPJ11
An employer's failure to act in a reasonably prudent manner, such as performing background checks on all new employees, may lead to accusations of ______________ regarding the employer's behavior. A. discrimination B. negligence C. fraud D. retaliation
An employer's failure to act in a reasonably prudent manner, such as performing background checks on all new employees, may lead to accusations of negligence regarding the employer's behavior.
Negligence is a failure to take reasonable care to prevent harm or injury to others. In the case of employers, they have a duty of care to their employees and customers to create a safe and secure workplace.
By failing to perform background checks on new employees, the employer may be putting their employees and customers at risk of harm. If an incident were to occur due to the employer's negligence, they could be held liable for damages.
Therefore, it is important for employers to take reasonable precautions such as performing background checks to prevent potential harm.
For more questions like Injury click the link below:
https://brainly.com/question/28450125
#SPJ11
The application of modern measurement technologies to understand, quantify, and optimize marketing spending is referred to as marketing response evaluation. marketing ROI (return on investment). situation analysis. marketing ROA (return on assets). strategic marketing analysis.
Marketing response evaluation refers to using advanced measurement technologies to measure, analyze and improve the return on investment (ROI) of marketing expenditures(A).
In today's digital age, it is essential to measure the effectiveness of marketing campaigns and optimize them for better ROI. Marketing response evaluation involves using various tools and techniques to track and measure consumer behavior, including web analytics, social media analytics, and customer surveys.
By analyzing this data, businesses can determine the effectiveness of their marketing campaigns and make informed decisions on how to allocate their marketing budget for maximum ROI.
Overall, marketing response evaluation is a critical aspect of modern marketing strategies, allowing businesses to optimize their spending and achieve higher returns on their marketing investments.Hence A is correct option.
For more questions like Investment click the link below:
https://brainly.com/question/15105766
#SPJ11
True or false: When actual results are compared to a flexible budget, and variances in revenues and variable costs result from differences between standard and actual per-unit amounts
True. When actual results are compared to a flexible budget, it is possible to identify variances in revenues and variable costs that result from differences between standard and actual per-unit amounts.
Flexible budgets are designed to adjust for changes in the level of activity or production, and they provide a benchmark against which actual performance can be measured.
By comparing actual results to a flexible budget, managers can see where they have overperformed or underperformed, and they can identify the root causes of any variances.
This information can then be used to make adjustments and improve future performance, leading to greater efficiency and profitability for the business.
To know more about flexible budget refer here: https://brainly.com/question/16017304#
#SPJ11
The acronym EDLP stands for __________. Group of answer choices estimated discount leveling policy everyday low pricing extended discounts for leading products either (free) delivery or lower prices
The correct option is B, The acronym EDLP stands for "Everyday Low Pricing".
EDLP stands for "Everyday Low Price," which is a pricing strategy used by retailers to offer consistently low prices on their products. This strategy is in contrast to other pricing strategies that involve frequent sales, discounts, and promotions. With EDLP, retailers aim to attract and retain customers by offering products at a lower cost compared to their competitors, without sacrificing quality or profitability.
This approach helps to build customer loyalty and can be particularly effective for retailers that sell essential products or everyday items. EDLP can also simplify pricing and inventory management for retailers, as they don't have to constantly adjust prices or run frequent promotions. However, retailers may need to ensure that they have a competitive pricing structure and effective cost-management strategies to ensure that their business remains profitable.
To learn more about EDLP visit here:
brainly.com/question/31451647
#SPJ4
On January 2, 2023, Konrad Corporation acquired equipment for $722,000. The estimated life of the equipment is 5 years or 19,000 hours. The estimated residual value is $17,000. If Konrad Corporation uses the units of production method of depreciation, what is the book value on December 31, 2024, assuming that the equipment was used 4,000 hours in 2023 and 7,700 hours in 2024
The book value of the equipment on December 31, 2024, is $473,220.
To calculate the book value using the units of production method of depreciation, follow these steps:
1. Determine the total depreciable cost:
Total cost - Residual value = $722,000 - $17,000 = $705,000
2. Calculate the depreciation rate per hour:
Depreciable cost / Estimated hours = $705,000 / 19,000 hours = $37.11 per hour
3. Determine the depreciation for each year:
- 2023: 4,000 hours * $37.11 = $148,440
- 2024: 7,700 hours * $37.11 = $285,747
4. Calculate the accumulated depreciation by the end of 2024:
Accumulated depreciation = Depreciation (2023) + Depreciation (2024) = $148,440 + $285,747 = $434,187
5. Calculate the book value on December 31, 2024:
Book value = Total cost - Accumulated depreciation = $722,000 - $434,187 = $473,220
To know more about Depreciation visit :
https://brainly.com/question/20333142
#SPJ11