Answer:
d) Net present value
Explanation:
The net present value is the value that shows the difference between the initial investment present value and the cash flows present value. If the present value cash flows is more than the initial investment present value so the project should be accepted else rejected
So here in the given situation, the net present value would be effected in the case when the discount rate would be raised in order to present the start up company risk
Hence, the option d is correct
Alexa Inc. purchased equipment in 2018 for $50,000 with no residual value. On December 31, 2020, accumulated depreciation using the straight-line method for financial reporting was $15,000. For tax purposes, Alexa uses MACRS depreciation resulting in $35,600 in accumulated depreciation for tax purposes on December 31, 2020. Taxable income was $100,000 for 2020 and the company's tax rate is 25%.
Required:
a. Determine the GAAP basis of equipment (net) on December 30, 2020.
b. Determine the tax basis of equipment on December 30, 2020.
Answer:
a. $35,000
b. $14,400
Explanation:
The computation is shown below;
a. GAAP basis of equipment (net) is
Purchase equipment $50,000
Less: accumulated depreciation for finnacial reporting -$15,000
Equipment (net) $35,000
b. Tax bais of equipment is
Purchase equipment $50,000
Less: accumulated deprecation for tax purposes - $35,600
Equipment net $14,400
The above should be considered and relevant too
Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:
Junior Pro Striker
Production budget 7,400 units 18,600 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming Department Assembly Department
Junior 0.2 hour per unit 0.4 hour per unit
Pro Striker 0.35 hour per unit 0.7 hour per unit
The direct labor rate for each department is as follows:
Forming Department $14 per hour
Assembly Department $12 per hour
Required:
Prepare the direct labor cost budget for July.
Answer and Explanation:
The preparation of the direct labor cost budget for July month is as follows:
Particulars Forming Dept Assembly Dept
Production 7,400 units 18,600 units
Hours required junior 1,480 2,960
(7,400 units × 0.2) (7,400 units × 0.4)
Hours required pro 6,510 13,020
(18,600 units × 0.35) (18,600 units × 0.7)
Total hours 7,990 15,980
Total hours rate $14 $12
Total direct labor cost $111,860 $191,760
The grouping of living things according to similar characteristics is
Answer:
see the explanation
Explanation:
A species can be defined as a group of organisms with similar features, and these organisms are capable of breeding and produce fertile offspring. You are probably aware of the fact that horses and donkeys belong to the same kingdom, phylum, class, order, family as well as genus but they are from different species.
A year-end review of accounts receivable and estimated uncollectible percentages revealed the following: Category Accounts Receivable Uncollectible percentages 1-30 days $40,000 1.5% 31-60 days $10,000 8.0% 61-90 days $6,000 15.0% The beginning balance of Allowance for Doubtful Accounts is $400 (credit). Based on this information, the bad debt expense for the year is:
Answer:
$1,900
Explanation:
Calculation to determine what the bad debt expense for the year is:
Accounts Receivable Uncollectible percentages 1-30 days $40,000* 1.5% =$600
31-60 days $10,000 *8.0% =$800
61-90 days $6,000 *15.0% =$900
Total $2,300
Bad debt expense =$2,300-400
Bad debt expense =$1,900
Therefore Based on this information, the bad debt expense for the year is:$1,900
Superior Inc. is starting a new project. It plans to develop an online platform that allows for 3D printing of online purchases. This would effectively reduce the online purchases' delivery times to minutes. It expects this new product to be a great success and bring rapidly growing profits in the first few years. After that, it expects the competition to kick in which will reduce the growth of annual profits. The dividends on Superior Inc.'s shares will be growing accordingly. Here is the exact schedule of expected future dividends:
Most recently paid dividend is $4.
Expected annual growth rate of dividends for the first 3 years is 50%.
Expected annual growth rate of dividends after that is 10%.
Discount rate for this company is 15%.
Required:
Calculate the price per share of stock of Superior Inc.
Answer:
P0 = $216.18147448015 rounded off to $216.18
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on g is the constant growth rate in dividends r is the discount rate or required rate of return
P0 = 4 * (1+0.5) / (1+0.15) + 4 * (1+0.5)^2 / (1+0.15)^2 +
4 * (1+0.5)^3 / (1+0.15)^3 + [(4 * (1+0.5)^3 * (1+0.1) / (0.15 - 0.1)) / (1+0.15)^3]
P0 = $216.18147448015 rounded off to $216.18
Yuri owns just one ship, he calls it Previt. The ship is worth $25 million dollars. If the ship sinks, Yuri loses $25 million. The probability that it will sink is .02. Yuri's total wealth, including the value of the ship is $50 million. He is an expected utility maximizer with utility U(W) equal to W2. What is the maximum amount that Yuri would be willing to pay in order to be fully insured against the risk of losing his ship
Answer:
$745,000
Explanation:
Calculation to determine the maximum amount that Yuri would be willing to pay in order to be fully insured against the risk of losing his ship
First step is to calculate the Expected Utility (√W)
Expected Utility = (98% x √$25,000,000) + (2% x √$0)
Expected Utility = $4,900
Second step is to calculate the Fair premium of insurance policy using this formula
Fair premium of insurance policy = Probability of loss x Size of loss
Let plug in the formula
Fair premium of insurance policy = 2% x $25,000,000
Fair premium of insurance policy = $500,000
Third step is to calculate the Maximum premium using this formula
Maximum premium = Maximum utility - Expected Utility²
Let Plug in the formula
Maximum premium = $25,000,000 - $4,900²
Maximum premium = $25,000,000 - $24,010,000
Maximum premium= $990,000
Now let calculate the Maximum amount willing to pay using this formula
Maximum amount willing to pay = (Fair premium + Maximum premium) / 2
Let plug in the formula
Maximum amount willing to pay= ($ 500,000 + $990,000) / 2
Maximum amount willing to pay=$1,490,000/2
Maximum amount willing to pay= $745,000
Therefore the maximum amount that Yuri would be willing to pay in order to be fully insured against the risk of losing his ship is $745,000
A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is _____________ and ___________. Thus, the visual appearance would be classified as a public good.
Suppose the college administrators estimate that the beautification initiative will cost $2,040. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 420 students, asking each of them their willingness-to-pay for the beautification project. The average willingness-to-pay, as revealed by the survey, is $12.
The benefit of the beatification initiative, as suggested by the survey, is $ __________ Because the estimated benefit is ____________ than the
cost, the college administrators ______________ undertake the beautification in initiative.
The calculation of the benefit of the beatification initiative relied on the ability of the administrators to accurately capture the true willingness-to-pay of each student.
Which of the following scenarios would cause the survey used by the college administrators to yield misleading willingness-to-pay data? Check all that apply.
a. Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere.
b. An equal number of male and female students were surveyed.
Answer:
non rival, non excludable
$5040
greater
will
a. Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere.
Explanation:
A public good is a good that is non excludable and non rivalrous.
Because a student is enjoying the visual appearance of the campus, another student is not prevented from enjoying the visual appearance of the campus. This means that the beautification initiative is non rivalrous
There is no way to prevent any student from viewing the initiative. This means it is non excludable
Benefit can be calculated using the willingness to pay of student
the price a student is willing to pay would be dependent on the amount of benefit she expects to derive from the project
benefit = 420 x $12 = $5040
The beautification initiative generates a positive externality
A good or initiative has positive externality if the benefits to third parties not involved in production is greater than the cost
Because the good generates positive externality, the initiative should be carried out
If . Students believe that if the initiative does not happen, the funds for the initiative Will not be spent elsewhere, they would quote a lower willingess to pay
Use the following information to answer question. Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for $100 each. It costs Madelyn $20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested $100,000 in her factory and equipment: $50,000 from her savings and $50,000 borrowed at 10 percent (assume that she could have loaned her money out at 10 percent, too). Madelyn can work at a competing pottery factory for $40,000 per year.
Required:
The economic profit at madelyn's pottery factory is:_________
Answer:
$30,000
Explanation:
According to the scenario, computation of the given data are as follows,
Total number of pieces per year = 1,000
Selling price per piece = $100 per piece
So, Total revenue = $100 × 1,000 = $100,000
Raw material = $20,000
Investment = $100,000
So, interest on investment = 10% × $100,000 = $10,000
Opportunity cost = $40,000
So, we can calculate the economic profit by using following formula,
Economic profit = Total revenue - Raw material - interest on investment - Opportunity cost
By putting the value, we get
Economic profit = $100,000 - $20,000 - $10,000 - $40,000
= $30,000
Use the following information to answer Questions 12 - 15. Below is selected data for Gertup Corporation as of 12/31/05: Gertup has maintained the same inventory levels throughout 2005. If end of year inventory turnover was increased to 12 through more efficient relationships with suppliers, how much cash would be freed up (pick closest number)
Answer:
the cash that should be freed up is $267
Explanation:
The computation of the cash that would be freed up is shown below:
As we know that
The inventory turnover is
= Cost of goods sold ÷ average inventory
12 = $14,800 ÷ average inventory
So, the average inventory is 1,233
Now the cash that should be freed up is
= 1,500 - 1,233
= $267
hence, the cash that should be freed up is $267
Stephanie Robbins is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this product is 5,000 units; carrying cost is $50 per unit per year; order costs for her company typically run nearly $30 per order; and lead time averages 10 days. (Assume 250 working days per year.) a) The economic order quantity is b) The average inventory is c) The optimal number of orders per year is d) The optimal number of working days between orders is e) The total annual inventory cost (carrying costordering cost) is f) The reorder point is
Solution :
Given :
The annual demand, [tex]$D=5000$[/tex] units
Ordering cost, [tex]$S=\$30$[/tex]
Carrying cost, [tex]$H=\$50$[/tex]
Lead time, L = 10 days
Number of days per year = 250 days
So, average demand is d = [tex]$\frac{D}{250}$[/tex] days
= [tex]$\frac{5000}{250}$[/tex] = 20 units
a). The economic order quantity, Q = [tex]$\sqrt{\frac{2DS}{H}}$[/tex]
[tex]$=\sqrt{\frac{2\times 5000 \times 30}{50}}$[/tex]
= 77 units
b). Average inventory = [tex]$\frac{Q}{2}$[/tex]
[tex]$=\frac{77}{2}$[/tex]
≈ 39 units
c). Number of orders per year = [tex]$\frac{D}{Q}$[/tex]
[tex]$=\frac{5000}{77}$[/tex]
= 65 units
d). Time between orders = [tex]$\frac{Q}{D}$[/tex] x number of days per year
[tex]$=\frac{77}{5000} \times250$[/tex]
= 3.85
e). Annual ordering cost = [tex]$\frac{D}{Q} \times S$[/tex]
[tex]$=\frac{5000}{77} \times 30$[/tex]
= $ 1948.05
Annual carrying cost = [tex]$\frac{Q}{2} \times H$[/tex]
[tex]$=\frac{77}{2} \times 50$[/tex]
= $ 1925
Total annual cost of inventory = $ 1948.05 + $ 1925
= $ 3873.05
f). Reorder point = [tex]$d \times L$[/tex]
[tex]$=20 \times 10$[/tex]
[tex]$=200$[/tex] units
A bicameral legislature is made up of how many bodies?
O one
O two
O three
O four
Answer:
two
Explanation:
A bicameral legislature is made up of two bodies. Thus, option B is the correct option.
What is a bicameral legislature?A bicameral legislature, which is distinguished by having two distinct assemblies, chambers, or houses, is one that practices bicameralism. Unicameralism, in which all members discuss and vote as a single body, is distinct from bicameralism. Bicameralism will be used by about 40% of national legislatures throughout the world as of 2022, compared to 60% at the national level and significantly more at the subnational level for unicameralism.
The techniques used to elect or choose the members of the two chambers sometimes varied from jurisdiction to jurisdiction. This frequently results in the membership of the two chambers being significantly different. Primary legislation frequently has to be approved by majorities in both houses of the legislature in order to be passed. If this is the case, the legislature may be seen as the epitome of bicameralism.
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The net income reported on the income statement for the current year was $225,000. Depreciation recorded on plant assets was $38,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $1,000 and $11,000 respectively. How much cash was provided by operating activities
Answer:
The amount of cash provided by operating activities is $243,000.
Explanation:
The amount of cash provided by operating activities can be calculated as follows:
Cash provided by operating activities = Net income + Depreciation - Increase in accounts receivable - Increase in inventory + Decrease in prepaid expenses - Decrease in accounts payable
Cash provided by operating activities = $225,000 + $38,000 - $2,000 - $8,000 + $1,000 - $11,000
Cash provided by operating activities = $243,000
Therefore, the amount of cash provided by operating activities is $243,000.
The closing process is also known as which of the following?
A. Project completion
B. Project postmortem
C. Project wake
D. Project parity
Answer:
A. Project completion is the answer
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Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,770,000 installed. CP borrows 48% of all capital needed, and the borrowing rate is 13.4%. In the 1st year, 25% of the principal borrowed will be paid back. The throughput rate for in-process test samples has increased the capacity of the lab, saving a net of $X per year. In this 1st year, depreciation is $362,000 and taxable income is $329,000.
Required:
a. What is the gross income or annual savings?
b. Determine the income tax for the 1st year assuming a marginal tax rate of 40%.
c. What is the after-tax cash flow for the 1st year?
Answer:
Chevron Phillips (CP)
a. The gross income or annual savings is:
= $804,846.
b. The income tax for the 1st year assuming a marginal tax rate of 40% is:
= $131,600.
c. The after-tax cash flow for the 1st year is:
= $559,400.
Explanation:
a) Data and Calculations;
Cost of new laboratory equipment = $1,770,000
Borrowed capital = $849,600 ($1,770,000 * 48%)
Borrowing rate = 13.4%
Borrowing interest expense for the first year = $113,846
Depreciation = $362,000
Taxable income = $329,000
Gross savings = $X
$X = $804,846 ($113,846 + $362,000 + $329,000)
Income tax for the 1st year:
Marginal tax rate = 40%
Taxable income = $329,000
= $131,600 ($329,000 * 40%)
After-tax Cash Flows for the 1st year:
Gross savings = $804,846
Interest expense 113,846
Depreciation 362,000
Taxable income $329,000
Income tax 131,600
Net income $197,400
Cash Flows:
Net income $197,400
Depreciation 362,000
After-tax cash flow $559,400
if a bond with a $1,000 par value, 20 years to maturity, and a coupon interest rate of 10% was selling for $1100, then the yield to maturity on that bond is: A. is less than 10% B. is greater than 10% C. is 10% D. cannot be determined g
Answer:
a
Explanation:
the yield to maturity of a bond is the total return on a bond if the bond is held to maturity. it is the equivalent of the internal rate of return.
If the yield to maturity is greater than the bonds coupon rate the bond is selling at a discount
If the yield to maturity is less than the bonds coupon rate the bond is selling at a premium
If a bond’s coupon rate is equal to its yield to maturity, then the bond is selling at par.
the bond is selling at a premium as 1100 is greater than 1000. Thus, the ytm is less than 10%
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, 2021 $ 340 January 1, 2021: Projected benefit obligation 2,450 Accumulated benefit obligation 2,150 Plan assets (fair value) 2,550 Prior service cost—AOCI (2021 amortization, $40) 340 Net gain—AOCI (2021 amortization, $6) 360 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 275 Benefit payments to retirees, December 31, 2021 300 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Answer:
1. Pension expense $291
2.A. Pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO $512
B. Gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Explanation:
1. Calculation to determine the Pension Expense
PENSION EXPENSE
Service cost (given) $340
Add Interest cost $172
Less Expected return on plan assets ($255)
Add Prior service cost $40
Less Net gain or (loss) (6))
PENSION EXPENSE $291
2. Preparation of the journal entries to record
(a) pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO (service cost + interest cost)$512
($340+$172)
b. gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Working :
Projected benefit obligation ($2,450) x Discount rate (.07) = $172 Interest cost
Plan assets (fair value) ($2,550) x Expected return on plan assets (.10) = $255
Plan assets (fair value) ($2,550) x Actual return on plan assets (.09) =$230
Gain or (loss on plan assets) $255-$230 = ($25) loss
Service cost (given) =$340
Prior service cost (given)= 40
Benefit payments to retirees, December 31, 2013= $300
Cash contributions to pension fund, December 31, 2021 (given)= 275
Net gain or (loss) (given) = (6)Net gain–AOCI (2021 amortization
Match the terms with their corresponding descriptions.
a. Firms' costs associated with changing their prices
b. When workers respond, not to the purchasing power of their wage, but to the face value of their wage or salary
c. An event that changes the existing productivity and therefore changes the extent to which economic growth occurs
d. Given flexible prices and the existing factors of production, a measure of how much the economy grows
e. Variations in the growth rate from the long-run rate of economic growth real shock business fluctuations
1. Menu Cost
2. Transaction
3. Real
4. Natural Rate of Unemployment
5. Nominal Wage
6. Business Fluctuations
7. Slow Growth Rate
8. Purchasing power Discrepancies
Answer:
a. Menu cost.
b. Nominal wage of confusion.
c. Real shock.
d. Solow Growth Rate
e. Business Fluctuations.
Explanation:
a. Menu cost: Firms' costs associated with changing their prices.
b. Nominal wage of confusion: When workers respond, not to the purchasing power of their wage, but to the face value of their wage or salary.
c. Real shock: An event that changes the existing productivity and therefore changes the extent to which economic growth occurs.
d. Solow Growth Rate: Given flexible prices and the existing factors of production, a measure of how much the economy grows.
The Solow Growth Model, developed by Robert Solow, a Nobel Prize winning economist. It was the first neoclassical growth model which was was built upon the Keynesian Harrod-Domar model. The modern theory of economic growth is given by the Solow Model.
The equation below gives us the change in capital stock per worker with population growth at rate n;
Δk = sf(k) – (δ + n)k.
Where k: capital stock per worker in period t
s: savings rate
δ: rate of depreciation of capital
n: labor or number of workers
sf(k): savings per capita multiplied by a fraction of income saved.
e. Business Fluctuations: Variations in the growth rate from the long-run rate of economic growth real shock business fluctuations.
Suppose that an initial $20 billion increase in investment spending expands GDP by $20 billion in the first round of the multiplier process. Also assume that GDP and consumption both rise by $18 billion in the second round of the process. Instructions: Round your answers to 1 decimal place. a. What is the MPC in this economy
Answer: 0.9
Explanation:
The marginal propensity to consume (MPC) is calculated by using the formula:
= Change in consumption / Change in income
where,
Change in consumption = $18 billion
Change in income = $20 billion
MPC = Change in consumption / Change in income
= $18 billion / $20 billion
= 0.9
Therefore, MPC is 0.9.
Third World Gamer Inc. manufactures components for computer games within a relevant range of 500,000 to 1,000,000 disks per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 (d) (j)
Total fixed costs 600,000 (e) (k)
Total costs $1,200,000 (f) (l)
Cost per unit:
Variable cost per unit (a) (g) (m)
Fixed cost per unit (b) (h) (n)
Total cost per unit (c) (i) (o)
Complete the cost schedule above. Round costs per unit to the nearest cent.
Answer:
Third World Gamer Inc.
Cost Schedule
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 900,000 1,200,000
Total fixed costs 600,000 600,000 600,000
Total costs $1,200,000 $1,500,000 $1,800,000
Cost per unit:
Variable cost per unit $1.20 $1.20 $1.20
Fixed cost per unit $1.20 $0.80 $0.60
Total cost per unit $2.40 $2.00 $1.80
Explanation:
a) Data and Calculations:
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 (d) (j)
Total fixed costs 600,000 (e) (k)
Total costs $1,200,000 (f) (l)
Cost per unit:
Variable cost per unit (a) (g) (m)
Fixed cost per unit (b) (h) (n)
Total cost per unit (c) (i) (o)
Variable cost per unit = $1.20 ($600,000/500,000)
Bob lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Bob’s costs as either an implicit cost or an explicit cost of selling guitars.
a. The wholesale cost for the guitars that Bob pays the manufacturer
b. The wages and utility bills that Bob pays
c. The salary Bob could earn if he worked as a financial advisor
d. The rental income Bob could receive if he chose to rent out his showroom
Answer and Explanation:
The identification of each transaction as an explicit cost or implicit cost is as follows
a. It is an explicit cost as the cost would be paid to the factors of production
b. It is also an explicit cost as the cost would be paid to the factors of production
c. It is an implicit cost as it is considered to be the hidden cost
d. It is also an implicit cost as it is considered to be the hidden cost
A warranty guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.
t or f
Answer:
True
Explanation:
A warantee is a written assurance that some product or service will be provided or will meet certain specifications.
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When the quantity of coal supplied is measured in kilograms instead of pounds, the demand for coal becomes
Answer:
the quantity of coal becomes more elastic
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In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it.
a.
central services
b.
peripheral services
c.
tertiary services
d.
core services
An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: has a facility that is below optimum operating level and should build a larger facility. has a facility that is above optimum operating level and should reduce facility size. is suffering from diseconomies of scale. has utilization higher than efficiency. has expected output higher than rated capacity
Answer:
has a facility that is below optimum operating level and should build a larger facility.
Explanation:
In the case when the organization whose capacity should be on the average unit cost curve where it would be decline when the output rises so this means that it has a facility i.e. lower than the optimal level of operation and should established the larger facility
Hence, the first option is correct
And, the other options would be incorrect
In 1993, Sheffield Company completed the construction of a building at a cost of $2,340,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $69,600 at the end of that time.
Early in 2004, an addition to the building was constructed at a cost of $585,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $23,400.
In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.
Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places)
Annual depreciation expense—building ___________
Answer:
Annual depreciation expense is $23,547
Explanation:
In the year 2022 the cost of the building will be written down value.
Using straight line depreciation method : (Cost - Salvage value ) / Useful life
Depreciation in 1994 = ( 2,340,000 - 69,600 ) / 40 years = 56,760
There is addition construction in year 2004 the carrying value of the building will be :
2,340,000 - ( 56,760 * 20 ) = 1,204,800
Depreciation in 2004 : ( 1,204,800 + 585,000 ) - 23,400 / 30 years = 58,880
Carrying value on 2022 :
1,789,800 - ( 58,880 * 18 years) = 729,960
Depreciation expense in 2022:
729,960 / 31years = $23,547
Which of the following statement(s) is (are) true regarding the variance/standard deviation of a portfolio of two risky securities? I. The lower the coefficient of correlation between securities, the greater the reduction in the portfolio variance. II. There is a linear relationship between the securities' coefficient of correlation and the portfolio variance. III. The standard deviation of the portfolio decreases at an increasing rate as more stocks are added to the portfolio
Answer:
The degree to which the portfolio variance is reduced depends on the degree of correlation between securities
Explanation:
The variance of a portfolio of 2 risky assets can be equal to zero if the association or connection between the two securities is equal to minus one likewise the investment opportunity set of 2 risky assets shows that all risk-return is an association or combinations of any portfolio of the two securities.
The variance of a portfolio of risky securities is usually said to be the weighted sum of the securities' variances and covariances.
The standard deviation of a portfolio of risky securities is commonly defined as the square root of the weighted sum of the securities' variances and covariances.
The expected return of a portfolio of risky securities is said to be a weighted average of the securities' returns.
Oriole Company has issued three different bonds during 2022. Interest is payable annually on each of these bonds. 1. On January 1, 2022, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2022, were issued at face value. 2. On July 1, $854,000, 9%, 5-year bonds dated July 1, 2022, were issued at 101. 3. On September 1, $281,000, 7%, 5-year bonds dated September 1, 2022, were issued at 99. Prepare the journal entry to record each bond transaction at the date of issuance.
Answer:
Transaction 1
Debit : Cash ($1,000 x 1,000) $1,000,000
Credit : Bond Payable $1,000,000
Transaction 2
Debit : Cash ($854,000 x 101.30%) $865,102
Credit : Bond Payable $865,102
Transaction 3
Debit : Cash ($281,000 x 99%) $278,190
Credit : Bond Payable $278,190
Explanation:
On each issuance date recognize a cash inflow and a liability - Bond Payable to the extent of the amount paid on issue.
what more, could starbucks have done, to maximize it's chances of success with laboulange
Answer:
It probably felt like the end of the line last year when Starbucks announced plans to close all 22 La Boulange pastry shops. This was the very same croissant-creating brand that Starbucks CEO Howard Schultz once publicly praised as a key to boosting the quality of Starbucks baked goods.
But for La Boulange founder Pascal Rigo, the store closure wasn’t the end. It was a new beginning. At 56, Rigo is in the midst of making one of fast-casual’s most widely watched reinventions. In Humpty Dumpty-like fashion, he is gluing the broken pieces together again and has opened five stores in the San Francisco Bay Area—with two more on the way—under the name, La Boulangerie de San Francisco.
His grand plans: to reassemble La Boulangerie as a fast-casual powerhouse by opening up some 20 to 40 locations. He also plans to enlarge its 40,000-foot baked goods facility in San Francisco that attracts business from such high-profile retail clients as Costco and, reportedly, Trader Joe’s. While it may not be quite the magnitude of what Chipotle CEO Steve Ells accomplished after buying back Chipotle from McDonald’s, the guy who founded La Boulange has a nice chunk of it back from Starbucks.How is Starbucks diversifying itself by purchasing La Boulange? y increasing its product offerings to include bakery items. How does Starbucks' current market power increase its chances for success in expanding its product offerings to include bakery items?
have a good day/night
may i please have a branlliest
sorry if it wrong
During the year, Walt who is self-employed travels from Seattle to Tokyo, Japan, on business. His time was spent as follows: two days travel (one day each way), two days business, and two days personal. His expenses for the trip were as follows (meals and lodging reflect only the business portion): Airfare $3,000 Lodging 2,000 Meals 1,000 Presuming no reimbursement, Walt's deductible expenses are: a.$3,500. b.$6,000. c.$4,500. d.$5,500.
Answer:
d.$5,500.
Explanation:
The computation of the deductible expense is shown below:
= Airfare + lodging + 50% of meals
= $3,000 + $2,000 + 50% of $1,000
= $3,000 + $2,000 + $500
= $5,500
hence, the deductible expense is $5,500
Here we take 100% of airfare & lodging but we took 50% for the meals
hence, the option d is correct
The supply of aged cheddar cheese is inelastic, and the supply of flour is elastic. Both goods are considered to be normal goods by a majority of consumers. Suppose that a large income tax increase decreases the demand for both goods by 10 percent. The change in equilibrium quantity will be:________
a. greater in the aged cheddar cheese market than in the flour market.
b. greater in the flour market than in the aged cheddar cheese market.
c. the same in the aged cheddar cheese and flour markets.
d. unknown without more information.