Answer:
a)$32
b)$18
c)$14
d) 46,875 units
e) 56,250
Explanation:
a) calculate the average selling price for a ticket sold
the formula = Total tickets sold / The total number of tickets sold
= 2,400,000/ 75,000= $32
b) Calculate average variable cost per ticket sold
the formula = The total variable cost / the total number of tickets sold
= 1,350,000/75,000= $18
c) Calculate the average contribution margin per ticket sold
the formula= The selling price of tickets - the variable cost of the tickets
= $32-$18 = $14
d) Estimate the break-even point
The formula = the total fixed costs/ the derived contribution per unit
=656,250/14 = 46,875 units
e) Calculate the number of tickets to be sold to earn $131,250 profit
This is an estimation of target units based on target profit
Target Unit= (fixed costs + expected or target profit) / the Contribution per unit
=(656,250 + $131,250) / $14
=56,250 units need to be sold to arrive at the target profit
Final answer:
This response provides calculations for average selling price, average variable cost, average contribution margin, break-even point, and the number of tickets needed for a specific operating profit in a business scenario.
Explanation:
To calculate various indicators of Anu's Amusement Center's performance, we need to perform several financial analyses based on the provided data.
a. Average Selling Price for a ticket: Selling price per ticket = Total revenues / Total tickets sold. In this case: $2,400,000 / 75,000 = $32 per ticket.
b. Average Variable Cost per ticket: Variable cost per ticket = Total variable costs / Total tickets sold. $1,350,000 / 75,000 = $18 per ticket.
c. Average Contribution Margin per ticket: Contribution margin per ticket = Selling price per ticket - Variable cost per ticket. $32 - $18 = $14 per ticket.
d. Break-even point: Break-even point in tickets = Fixed costs / Contribution margin per ticket. $656,250 / $14 = 46,875 tickets.
e. Number of tickets for $131,250 operating profit: Extra tickets needed = (Fixed costs + Target profit) / Contribution margin per ticket. ($656,250 + $131,250) / $14 = 50,000 tickets.
Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: YEAR Miles Operating Costs
YEAR Miles Operating Costs
2013 55000 195000
2014 70000 210000
2015 50000 180000
2016 65000 205000
2017 85000 225150
What is the best estimate of total operating expenses for 2018 using the high-low method based on total expected miles of 60,000?
A. $192,900
B. $195,000
C. $196,000
D. $201,000
Answer:
A. $192,900
Explanation:
In order to compute the total operating expenses for 2018, first, we have to calculate the variable cost per miles and the fixed cost which is shown below:
Variable cost per miles = (High Operating cost - low operating cost) ÷ (High miles - low miles)
= ($225,150 - $180,000) ÷ (85,000 miles - 50,000 miles)
= $45,150 ÷ 35,000 miles
= $1.29 per miles
Now the fixed cost equal to
= High operating cost - (High miles × Variable cost per miles)
= $225,150 - (85,000 miles × $1.29)
= $225,150 - $109,650
= $115,500
Now the estimated operating expenses would be
= Fixed cost + expected miles × variable cost per miles
= $115,500 + 60,000 × 1.29
= $115,500 + $77,400
= $192,900
Estimated OC for Really Fast Delivery Services is $192,900
Variable cost as per miles = (High OC - Low OC) / (High miles - Low miles)
Variable cost as per miles = [225,150 - 180,000] / [85,000 - 50,000]
Variable cost as per miles = 45,150 / 35,000
Variable cost as per miles = $1.29 per miles
Fixed cost = High OC - (High miles × VC per miles)
Fixed cost = $225,150 - (85,000 × $1.29)
Fixed cost = $115,500
Estimated OC = Fixed cost + [Expected miles × VC per miles]
Estimated OC = $115,500 + [60,000 × 1.29]
Estimated OC = $115,500 + $77,400
Estimated OC = $192,900
So, Option "A" is the correct answer to the following question.
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The endpoints (horizontal and vertical intercepts) of the budget line: A) measure the rate at which a consumer is willing to trade one good for another. B) represent the quantity of each good that could be purchased if all of the budget were allocated to that good. C) measure its slope. D) measure the rate at which one good can be substituted for another. E) indicate the highest level of satisfaction the consumer can achieve.
Answer:
The correct answer is letter "B": represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
Explanation:
The budget line portraits in a graphic the combinations of two products consumers can pay for with their income at a specific level of price. According to this approach, consumers will give up on one product to acquire more of the other good. In the graphic, the endpoint of the vertical and horizontal axis represents the maximum quantity of the good that can be acquired by the consumers if all their income goes towards it.
Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $30,000 to purchase equipment. The equipment will have a residual value at the end of its life of $2,000. The useful life of the equipment is 4 years. The new project is expected to generate additional net cash inflows of S24 000 per year for each of the four years. o nes required rate of return is 14% The net present value of this project is closest to: EEB (Click the icon to view the present value of $1 table.) EEB (Click the icon to view the present value of annuity of $1 table.) A. $41,120. B. $39,936 C. $53,360. D. $20,450
Answer:
A. $41,120.
Explanation:
Year Description Cash flow Present value@14%
0 Equipment cost ($30,000) ($30,000)
1-4 Additional CF $24,000 $69,929.10
4 Residual value $2,000 $1,184.16
Present value total $41,113.26
Based on the above calculation, the answer shall be A. $41,120.
After scanning the environment, PepsiCo discovered consumers’ desire for healthier food options. The company then thought about how this environmental factor related to the possible actions the company would take. Managers at PepsiCo likely depicted these relationships by
(A) completing an environmental scan
(B) listing the threats and opportunities.
(C) creating a cognitive map.
Answer:
(A) Completing an environmental scan
Explanation:
Pepsi has done through environmental scan where they have analysed all the trends and attitudes of different consumers, in addition, they have also investigated their competitors, they what they are going to do in the near future as well as what their current products are and what direction they are going on which in return will decides their intentions. Therefore, Pepsi has conducted an environmental scan where they have found consumer's increasing behavior towards organic and healthy products besides opting for the Green Marketing, that's the reason why they have conducted this environmental scan in order to fulfill their consumer's stated and unstated needs and demands more efficiently and effectively.
If you’re not sure how to answer a question, or if you think there’s an error or inaccuracy in the question, click the "Question Help/_________" button, which appears in the bottom right corner of the screen. (Try it now!)
Answer:
Challenge Button
Explanation:
The question above is related to the "Visual Guide in using the Inquizitive Activity." In order to complete the activities, you have to follow a set of rules. Part of this is the "how to's" when facing some troubles.
So, in the situation above, it is best to use the "Question Help" button, which is also known as a "Challenge" button when you're not sure how to answer the question or the question seems incorrect. This will allow the question to be reported to the Norton editors. They will then correct it, provided that it really has a problem.
Thus, this explains the answer.
The above question is about "How to Use the Inquisitive Activity Visually." You must follow a series of rules in order to accomplish the activities.
Part of this includes "how to's" for dealing with problems. So, in the circumstance described above, it's preferable to use the "Question Help" button, also known as a "Challenge" button, if you're unsure how to respond to the questions or if the question appears to be erroneous.
The question will then be reported or forwarded to the Norton editors. They will then remedy it, assuming it is indeed an issue.
As a result, the solution is clear, i.e., the challenge button.
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Management accountants need a wide variety of skills for their roles in organizations. These skills can be classified as either technical or nontechnical For each of the following skills, indicate whether it is a technical competency or a nontechnical competency for a management accountant. a. Planning, budgeting, and forecasting b. Leadership c. Financial statement analysis d. Adaptability e. Strategic thinking f. Change management g. Investment decision making h. Cost management i. Technology j. Internal financial reporting k. Collaboration I. Process improvement m. Performance management n. Customer service o. Enterprise risk management p. Decision analysis q. Communication r. Ethics s. Internal controls t. Business acumen
Answer:
See explanation section
Explanation:
See the image to get the appropriate answer
Management accountants require both technical and non-technical competencies. Technical competencies include skills such as planning, budgeting, financial statement analysis, investment decision making, cost management, and internal controls. Non-technical competencies include leadership, adaptability, strategic thinking, change management, collaboration, process improvement, performance management, customer service, enterprise risk management, decision analysis, communication, ethics, and business acumen.
Explanation:Technical CompetenciesPlanning, budgeting, and forecasting: This is a technical competency as it involves the use of financial data and analysis to create plans, budgets, and forecasts.Financial statement analysis: This is a technical competency as it involves the analysis and interpretation of financial statements to assess the financial health and performance of an organization.Internal financial reporting: This is a technical competency as it involves the preparation and presentation of financial reports for internal use within an organization.Investment decision making: This is a technical competency as it involves the analysis and evaluation of investment options to make informed decisions.Cost management: This is a technical competency as it involves the use of accounting techniques and cost analysis to control and manage costs within an organization.Internal controls: This is a technical competency as it involves the design, implementation, and monitoring of internal control systems to safeguard assets, ensure accuracy of financial records, and prevent fraud.Non-Technical CompetenciesLeadership: This is a non-technical competency as it involves the ability to guide and motivate others towards the achievement of organizational goals.Adaptability: This is a non-technical competency as it involves the ability to adjust and respond positively to changes and challenges in the work environment.Strategic thinking: This is a non-technical competency as it involves the ability to think critically and strategically, and make long-term plans to achieve organizational objectives.Change management: This is a non-technical competency as it involves managing and facilitating change within an organization, including communication, training, and stakeholder engagement.Collaboration: This is a non-technical competency as it involves working effectively with others, fostering teamwork, and building relationships to achieve common goals.Process improvement: This is a non-technical competency as it involves analyzing and improving business processes to increase efficiency and effectiveness.Performance management: This is a non-technical competency as it involves setting and monitoring performance goals, providing feedback and coaching to improve performance.Customer service: This is a non-technical competency as it involves understanding and meeting customer needs and expectations.Enterprise risk management: This is a non-technical competency as it involves identifying, assessing, and managing risks that could impact an organization's ability to achieve its objectives.Decision analysis: This is a non-technical competency as it involves using data and analytical techniques to analyze and evaluate options and make informed decisions.Communication: This is a non-technical competency as it involves effectively conveying information and ideas to others through various communication channels.Ethics: This is a non-technical competency as it involves acting with integrity, honesty, and ethical principles in all professional activities.Business acumen: This is a non-technical competency as it involves understanding and applying business knowledge and insights to make informed decisions and drive organizational success.Actions, attire, grammar usage, and proofreading all affect the ________ of an employee.
Answer:
The most appropriate answer is professionalism.
Explanation:
The professionalism of an employee can be seen by the action he does in working, attire he wears at work, grammar usage in emails and letters written by him and many more other things.
A person who takes care of the action, attire, grammar usage, proofreading seems to be more professional as compared to the person who doesn't care about these things.
Hence the most appropriate answer is professionalism.
Greenfield ventures, like all market entry strategies, can pose serious problems to achieving foreign market entry success. What is NOT deemed a barrier to success?
Answer:
Greenfield ventures, like all market strategy requires managerial experts who have a track record of bringing in new business, with a focus of growing the subsidiary firms.
Explanation:
Greenfield are a common market entry strategy used by large cooperation, where managerial talents are used in growing a new subsidiary business.
Final answer:
Option D, which states that Greenfield ventures are the fastest entry route to a sizeable market share, is not a barrier but a potential advantage. The other options identify real challenges and barriers to the success of such ventures in foreign markets.
Explanation:
Greenfield ventures, a market entry strategy, can face various obstacles that impede success in foreign markets. However, one option listed does not represent a barrier but rather a potential outcome. Among the listed items, option D stands out as it states that such ventures are the fastest entry route to achieve a sizeable market share. This statement does not present a barrier itself but describes a potential advantage if executed properly.
On the contrary, the other options (A, B, C, and E) identify challenges that can deter the success of Greenfield ventures, such as the need for capital investments, the risk of diverting resources from existing business, the dependence on strong markets, and the necessity for legal protections which are often needed due to various barriers to entry such as economies of scale, legal restrictions like patents, established brands, government regulation, and existing firms' strategies to maintain their market position.
For a single-server queuing system, the average number of customers in the waiting line is one less than the average number in the system. Group of answer choices True False
Answer:
False
Explanation:
This is not the case in case of single-server queuing system
Final answer:
The statement about the average number of customers in the queue being one less than the average number in the system is true for a single-server queuing system.
Explanation:
The statement that the average number of customers in the waiting line is one less than the average number in the system is True. In a single-server queuing system, we typically define two quantities: the average number of customers in the system (L) and the average number of customers in the queue (Lq).
The relationship between these two is given by L = Lq + 1, assuming the server is busy and there is always one customer being served. Customers arriving at the back of the line contribute to Lq, and as they move to the front of the line and receive service, they contribute to L without affecting Lq.
If on average, one customer arrives every two minutes, it does take indeed six minutes on average for three customers to arrive. This can be derived using the theory of queuing systems, which focuses on the analysis of the arrival process and the service mechanism.
The model used here assumes that arrivals are spaced out evenly over time (one every two minutes), a simplification which could be challenged by real-life variances such as peak times or group arrivals.
The ________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.
Answer:
The correct word for the blank space is: product life cycle.
Explanation:
The product life cycle is the period of time during which a product is conceived and developed, brought to market and late removed from the market. The cycle includes four (4) stages: research and introduction, promotion and growth, maturity, and decline.
Lean practices Include those which are designed to ellminate waste while still satistying the customer. Examples of lean practices include all of the following: Check all that apply. A. continuous improvement B. service focusC. just-in-time manufacturing tD. raditional manufacturing E. total quality management
Answer:
The correct answer is letter "A", "C", and "E": continuous improvement; just-in-time manufacturing; total quality management
Explanation:
Lean practices involve several activities companies can engage to reduce inefficiency at work. Organizations achieved this by eliminating wasteful practices among employees to improve the output quality and keep consumers preference, thus making a profit. That improvement must be continuous and imply managers will seek constantly perfection.
For instance, manufacturing companies can eliminate waste by keeping tight deadlines and delivering their products just in the time the suppliers or final consumers expect.
Davos Inc. makes fiberglass ski-boards in Switzerland. Identify the correct matching of terms.
Fiberglass is factory overhead
Plant real estate taxes are a period cost
Depreciation on delivery trucks is a product cost
Payroll taxes for workers in the Packaging Department are direct labor
None of the above
Answer:
The matching term for the making the fiber glass is that, it is the factory overhead.
Explanation:
Factory overhead is the cost or an expense which will be incurred during the process of manufacturing, and it does not involve the cost of the direct materials and the direct labor.
It is usually the total into the cost pools and allocated to the units produced during the year.
So, in order to make the fiber glass ski boards, the fiber glass is the factory overhead as it is the expense which is incurred during the process of manufacturing.
The correct matching of terms is that payroll taxes for workers in the Packaging Department are direct labor, as these workers are directly involved in creating the final product. The other matchings are incorrect because fiberglass is a direct material, not factory overhead, and plant real estate taxes and depreciation on delivery trucks are part of factory overheads, not period costs.
Explanation:The correct match would be 'Payroll taxes for workers in the Packaging Department are direct labor'. Here's why:
Fiberglass used by Davos Inc. to make ski-boards is a direct material and not a factory overhead. Factory overheads involve indirect costs such as depreciation on equipment or utilities.
Plant real estate taxes and depreciation on delivery trucks are not period costs but rather part of factory overheads because they are related to the production process. Finally, the payroll taxes for workers in the Packaging Department are part of direct labor as these workers are directly involved in the creation of the final product.
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12. If your disposable income falls from $55,000 to $50,000 and your consumption falls from $40,000 to $38,000, your marginal propensity to save is:
Answer:
Marginal Propensity to save=0.6
Explanation:
In order to calculate Marginal Propensity of save, we have to find the marginal Propensity to consume.
Marginal Propensity to consume=Consumption Change/Income change
Marginal Propensity to consume=[tex]\frac{\Delta\ Consumption}{\Delta\ income}[/tex]
Change in Consumption=$40,000-$38,000
Change in Consumption=$2000
Change in income=$55,000-$50,000
Change in income=$5,000
Marginal Propensity to consume=[tex]\frac{2000}{5000}[/tex]
Marginal Propensity to consume= 0.4
Now,
Marginal Propensity to consume + Marginal Propensity to save=1
0.4 + Marginal Propensity of save=1
Marginal Propensity of save=1-0.4
Marginal Propensity to save=0.6
Answer:
I believe you MPS is now 0.6
Explanation:
A salesperson can create an express warranty to which his/her company is legally bound.
Answer:
The statement is: True.
Explanation:
An express warranty is a protection on a product given by a salesperson to consumers indicating they will be in charge of repairs or refunds in front of failures. Usually, this type of promise is given to consumers so the buyer can accept the sale. If the product is higher than $15, the warranty must also be given written according to the Magnuson-Moss Warranty Act of 1975. In all moments, the company the salesperson works for is liable for accomplishing the warranty if necessary.
Assume there is no leakage from the banking system and that all commercial banks are loaned up. Suppose the reserve ratio is 25%. When the Fed buys $40m of bonds from the public who then deposit the proceeds into the banking system,
A. bank reserves increase by $40 million and money supply could increase by a maximum of $40 million.
B. bank reserves increase by $40 million and the money supply could increase by a maximum of $160 million.
C. bank reserves decrease by $40 million and money supply could decrease by a maximum of $40 million.
D. bank reserves decrease by $40 million and money supply could decrease by a maximum of $160 million.
Answer:
B. bank reserves increase by $40 million and the money supply could increase by a maximum of $160 million.
Explanation:
In this case there will multiplier effect in the economy. Central bank will pay $40 million by buying bond and it will be deposited in the bank. Bank would its reserves increase by $40 million and of that 25% will locked as reserve requirement but remaining will be circulated in the economy.
Multiplier = Deposit / Reserve Requirement
= 40/0.25
= 160
Therefore, The bank reserve will increase by $40 million and money supply will increase maximum by $ 160 million.
Blythe, an accountant for Credits & Debits, acquires a negotiable instrument from Eton by promising to pay its face value in thirty days. Blythe acquires the status of an HDC when she
a. acquires possession of the negotiable instrument.
b. agrees with Eton to buy the negotiable instrument.
c. pays the face value due on the instrument.
d. transfers the instrument to another party.
Answer:
c. pays the face value due on the instrument.
Explanation:
Holder In Due Course (HDC) is a legal term that describes a person given a negotiable instrument e.g. check, for an exchange of service without any doubt in it's legitimacy.
Blythe acquires the status of an HDC when she pays the face value due on the instrument.
Gross monthly income = $3,500 After-tax monthly income = $2,870 Total debt = $86,000 Total monthly debt payments = $402 Total assets = $113,000 Based on the information given above, what is the debt ratio?
Answer:
Debt ratio = 0.76
Explanation:
The debt ratio is known as total debt to total asset ratio. The debt ratio suggests that the percentage of assets has been employed with the liabilities. It can be calculated as total debt divided by the total assets.
Formula:
Debt ratio = [tex]\frac{Total debt}{total assets}[/tex]
Given,
Total debt = $86,000
Total assets = $113,000
Putting the value in the formula,
Debt ratio = $86,000 ÷ $113,000
Debt ratio = 0.76
76% of total assets has been employed through the liabilities.
If it is true that whenever a manager encounters a particular situation (such as motivating employees to work harder), and a single approach exists (such as raising pay) that will lead to the desired outcome, which perspective on organizational behavior is being supported?
a. The universal perspective
b. The human relations perspective
c. The situational perspective
d. The interactionalism perspective
Answer:
b. The human relations perspective
Explanation:
The human relations perspective, identifies the manager as one who is supportive to subordinate, such that he or she motivates employees' to work harder. The human relations perspective do not believe in managers oppressing subordinates.
The Application Development Security domain focuses on _____. Group of answer choices sound and secure application development techniques who may access a system single sign-on technologies and their risks specific attacks and countermeasures
Answer:
The Application Development Security domain focuses on security vulnerabilities hiding in an application and at different times in the software life cycle.
Keesha Co. borrows $165,000 cash on November 1, 2017, by signing a 180-day, 11% note with a face value of $165,000. On what date does this note mature? Assume a 365 day year.
Answer:
Explanation:
Principal amount $165000
Rate - 11%
time - 180
Interest = 165000*0.11=$18150
Total Maturity = 165000*0.11*180/365= 8950.68
Interest Expense for year 2017 = 165000*0.11*61/365 = 3033
Interest Expnese for year 2018 = 165000*0.11*119/365 = 5917
Ans. April 28, 2018
Last year Marla purchased 100 shares of stock for $8 per share. She paid a flat $75 to purchase the shares. Since making her purchase, she has received $200 in dividends. Marla is concerned that the stock price will fall below its current FMV of $7. Calculate her holdingperiod return if she sells today and pays a $75 commission.
Answer:
For Marla,
Number of shares purchased is 100 @ $8 per share
Initial Position = 100 * 8 = $800
Dividends Received = $200
Brokerage Paid = 75 + 75 = $150
Current Value of Stock = $7
Current Position for 100 shares @ $7 per share
Current Position = $700
Holding Period Return = Profit/Initial Investment
Holding Period Return = ((700 - 800) - 150 + 200)/800
Holding Period Return = -6.25%
An asset has an average historical rate of return of 10.1 percent and a variance of 0.0116751. What is the upper percentage range of returns would you expect to see approximately two-thirds of the time?
Answer:
20.91%
Explanation:
Provided information
Average historical rate of return = 10.1 %
Variance = 0.0116751
By considering the above information, the standard deviation would be
= Square root of Variance
= 10.81%
So the upper percentage range of return would be
= Standard deviation + standard deviation
= 10.81% + 10.1%
= 20.91%
Since we have to find out the upper percentage so we added it otherwise we have to deduct it
A company reports total assets of $910,000 and stockholders' equity of $530,000. Calculate the debt ratio.
The Davidson Corporation's balance sheet and income statement are provided below. Please answer the following questions:
a. Construct the statement of stockholders’ equity for December 31, 2016. No common stock was issued during 2016.
b. How much money has been reinvested in the firm over the years?
c. At the present time, how large a check could be written without it bouncing?
d. How much money must be paid to current creditors within the next year?
PLEASE SHOW ALL OF YOUR WORK and FORMULAS FOR HOW YOU ARRIVED AT YOUR ANSWERS.
Balance Sheet as of December 31, 2016 (Millions of Dollars)
Assets
Liabilities and Equity
Cash and equivalents
$15
Accounts payable
$120
Accounts receivable
515
Accruals
280
Inventories
880
Notes payable
220
Total current assets
$1,410
Total current liabilities
$620
Net plant and equipment
2,590
Long-term bonds
1,520
Total liabilities
$2,140
Common stock (100 million shares)
260
Retained earnings
1,600
Common equity
$1,860
Total assets
$4,000
Total liabilities and equity
$4,000
Income Statement for Year Ending December 31, 2016 (Millions of Dollars)
Sales
$6,250
Operating costs excluding depreciation and amortization
5,230
EBITDA
$1,020
Depreciation and amortization
220
EBIT
$800
Interest
180
EBT
$620
Taxes (40%)
248
Net income
$372
Common dividends paid
$146
Earnings per share
$3.72
To assist the student, the statement of stockholders' equity is constructed by adjusting retained earnings with net income and dividends. Retained earnings reflect the money reinvested. The firm can write a check up to its cash balance, and the amount due to current creditors is equal to the total current liabilities.
Explanation:The student is requesting assistance with an exercise related to the preparation of financial statements and analysis from given financial data. Here are the responses to each part of the question:
Statement of Stockholders' Equity: Since no common stock was issued during the year and given the net income and dividends paid, the statement would reflect an opening balance in retained earnings, add net income, and subtract dividends to arrive at the retained earnings at the end of the period.Money reinvested refers to the retained earnings, which is part of shareholders' equity, representing profits kept in the company rather than paid out as dividends.The largest check without bouncing would be equal to the cash and cash equivalents balance.Money payable to creditors within the next year is represented by the total current liabilities.Here's how calculations should be done based on the provided balance sheet:
To calculate statement of stockholders’ equity: Begin with retained earnings at the beginning of the year (assumed to be the same as the end of the last year), add net income, and subtract dividends paid.Money reinvested: This is simply the total retained earnings.Check size without bouncing: Equals cash and equivalents.Money to current creditors: Equals total current liabilities.Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Option 2 pays you and your heirs $6,000 per year forever (first payment at the end of this year.) If you are required return is 11%, which option should you choose?
1. How much is the value for alternative 1?
2. How much is the value of alternative 2?
Answer:
Option 1 is more convenient.
Explanation:
Giving the following information:
The annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Option 2 pays you and your heirs $6,000 per year forever
The present value of option 1 is:
PV= 6*100,000= $600,000
To calculate the present value of option 2 we need to use the present value formula of a perpetual annuity:
PV= Cash flow/i
PV= 6,000/0.11= $54,545
There is no doubt that option 1 is better.
During the month of April, direct labor cost totaled $13,055 and direct labor cost was 35% of prime cost. If total manufacturing costs during April were $79,700, the manufacturing overhead was:
Answer:
$42,400
Explanation:
Given that,
Direct labor cost = $13,055
Direct labor cost was 35% of prime cost
Total manufacturing costs during April = $79,700
Prime cost = Total direct labor cost ÷ 35%
= $13,055 ÷ 35%
= $37,300
Manufacturing overhead:
= total manufacturing costs - Prime cost
= $79,700 - $37,300
= $42,400
Therefore, the manufacturing overhead was $42,400.
The manufacturing overhead for the month of April is calculated to be $42,400 by subtracting the prime cost from the total manufacturing costs.
Explanation:The question asks us to calculate the manufacturing overhead. Direct labor cost of $13,055 accounts for 35% of the prime cost. So, we first calculate the total prime cost by dividing the direct labor cost by 35% which results in $37,300. The total manufacturing costs are given as $79,700. The manufacturing overhead is calculated by subtracting the prime cost from the total manufacturing cost. So, the manufacturing overhead is $79,700 - $37,300 which equates to $42,400.
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A product’s embodied energy in a cradle-to-gate LCA analysis describes: Select one:
(A) the energy needed to heat a house built with this product.
(B) the energy expended to produce, use, and dispose of the product.
(C) the amount of water used to produce the product.
(D) the energy expended to produce the product.
Answer:
the answer's D, the energy expended to produce the product.
Explanation:
At an annual growth rate of 3.5%, approximately how long does it take for real GDP per capita to increase from $30,000 to $60,000 in a country?
a. 5 years
b. 10 years
c. 15 years
d. 20 years
Answer:
d. 20 years
Explanation:
Rule 72 can be used calculate number of years that will be required to double GDP.
Number of Years = 72/ 3.5
= 22.5
on the given choices, the closest number of years is 20 years.
Which of the following goals use action verbs and have a much greater chance of being understood and accomplished?
a. Vague goals
b. Specific goals
c. Generalized goals
d. Measurable goals
Answer:
The correct answer is letter "B": Specific goals.
Explanation:
The SMART criteria is a set of practices that aims to help organizations to come up with clear objectives. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-Constrained. Specific goals are those using action verbs specifying what, why, who, where, and which questions.
Which of the following correctly describes an external benefit resulting from an individual's purchase of flu shots from a doctor
Doctors earn income by charging for flu shots.
Flu shots are less expensive than catching the flu.
Flu shots reduce the likelihood of others catching the flu.
Flu shots reduce sick days, allowing those who get flu shots to earn more income.
Answer:
Flu shots reduce the likelihood of others catching the flu.
Explanation:
Any transaction has benefits & costs to some members of society.
Eg: An individual's purchase of flu shots from a doctor - patient benefits from treatment for which its pays the monetary cost to the doctor, which is latter's income benefit.
However, these both are patient's & doctor's private benefit & costs.
Externalities may cause extra harm or benefit to other uninvolved parties, without any monetary exchange for that harm or benefit. Beneficial are positive externalities, harming are negative externalities.
In this case, treatment is the positive externality : It has extra benefit for other people who are less probable to catch the flu, without having paid for that prevention (eg vaccination) or any other way.
The external benefit of purchasing a flu shot is that it reduces the likelihood of others catching the flu. Other options are not external benefits as they only affect the individual or doctor, not society.
Explanation:An external benefit is an advantage or positive outcome that affects others or society as a whole, which is not taken into account by the individual making the decision. In this case, the external benefit resulting from an individual's purchase of flu shots from a doctor is that flu shots reduce the likelihood of others catching the flu. When more people get vaccinated, the chances of the virus spreading in the community decrease. This is sometimes referred to as herd immunity. Moreover, the other options are not external benefits because they only affect the individual receiving the flu shot or the doctor administering it, not the society as a whole.
Learn more about External Benefit here:https://brainly.com/question/31647948
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