Here's an analysis of some typical family business employment policies and one that may not be as effective in preventing issues:
1. Clear job descriptions and responsibilities: This policy helps prevent confusion and conflict by outlining each family member's role in the business.
2. Formal hiring and promotion processes: Implementing objective, merit-based processes for hiring and promoting family members ensures that everyone is treated fairly and reduces potential favoritism.
3. Regular performance evaluations: Assessing each employee's performance, including family members, can identify areas for improvement and maintain a professional work environment.
4. Conflict resolution mechanisms: Having a well-defined process to resolve conflicts can help prevent misunderstandings from escalating and maintain a positive work environment.
5. Nepotism-based hiring: This policy, which involves favoring family members in hiring decisions, may not help prevent problems in employment policies.
Instead, it can lead to feelings of unfairness, resentment, and potential conflicts among employees, both within and outside the family.
In conclusion, nepotism-based hiring may not be effective in preventing problems in employment policies within family businesses, while the other mentioned policies
(clear job descriptions, formal hiring processes, regular performance evaluations, and conflict resolution mechanisms) can contribute to a more professional and conflict-free work environment.
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strategic management
Would a diversified firm typically pursue similar international strategies in its different businesses? Explain your answer. a
Strategic management involves making decisions about how to allocate resources to achieve the organization's goals and objectives, so it's possible that a diversified firm may pursue similar international strategies in its different businesses if they are aligned with the overall strategic direction of the firm.
It depends on the specific goals and objectives of the diversified firm.
However, it's also possible that the different businesses within a diversified firm may have unique market conditions and competitive dynamics that require different international strategies to be successful. Ultimately, the decision about whether to pursue similar or different international strategies in different businesses will depend on the specific circumstances of each business unit and the overall goals and objectives of the diversified firm.
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Peter Company manufactures a single product and uses process costing. The following activity was recorded in the cutting department during July: Production data: Units in process, July 1: materials 70% compete; conversion 30% complete 60,000 Units started in 550,000 production: 50,000 Units in process, July 31: materials 90% complete; conversion 40% complete Cost data Work in process inventory, July 1 Materials $28,000 Conversion $20,000 Cost added during July Materials $500,000 Conversion $400,000 The company uses the FIFO method. Required: Prepare a cost of production report - FIFO method
To prepare a cost of production report using the FIFO method, we need to calculate the equivalent units of production for both materials and conversion costs.
For materials, we take the units completed and the units in process at July 31 and multiply them by the percentage of completion to get the equivalent units of production. For conversion costs, we do the same but for the conversion costs added during the period.
Once we have the equivalent units of production, we can calculate the cost per equivalent unit by dividing the cost added during the period by the equivalent units of production. We then allocate the costs to the units completed and the units in process at July 31 based on their respective equivalent units of production.
Using this method, we can prepare a cost of production report that shows the cost per unit and the total cost of goods completed and in process. This report is useful for management to make decisions about pricing, inventory levels, and production efficiency.
The FIFO method assumes that the first units completed and sold are the oldest units in inventory, which may not always be accurate, but it is a widely used and accepted costing method.
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What type of research design should be adopted to investigatethe marketing research problem you have identified?
Based on the marketing research problem identified, a descriptive research design should be adopted.
This type of research design focuses on describing the characteristics of a population or phenomenon, which is essential in understanding consumer behavior, market trends, and preferences.
Descriptive research involves collecting and analyzing data through surveys, observations, and secondary sources to provide an accurate and comprehensive picture of the research problem.
It is particularly useful in investigating issues related to market size, segmentation, and customer satisfaction.
Descriptive research design helps businesses gain insight into customer needs and preferences, allowing them to make informed decisions in their marketing strategies.
It provides a detailed understanding of the market, which is essential in identifying opportunities and potential challenges, and to improve the effectiveness of marketing efforts.
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stock a has a price of $5 and stock b has a price of $10. an index has value weights in stock a of 60% and in stock b of 40%. if an authorized participant has acquired 60 shares of stock a and 20 shares of stock b to replicate the index, at what price will she sell a value-weighted index etf of these stocks if she wants to sell 200 shares?
The value-weighted index ETF at a price of $2.50 per share
To calculate the price at which the authorized participant should sell a value-weighted index ETF, we first need to determine the value of the stocks in the index. Stock A is priced at $5 and has a 60% weight in the index, while Stock B is priced at $10 and has a 40% weight.
The authorized participant has acquired 60 shares of Stock A ($5 x 60 = $300) and 20 shares of Stock B ($10 x 20 = $200). The total value of these stocks is $500.
To replicate the index, the ETF should also have a 60% weight in Stock A and a 40% weight in Stock B. This means that the value of the 200 shares of the ETF should be equal to the total value of the stocks, which is $500.
To determine the price per share of the ETF, we simply divide the total value by the number of shares: $500 / 200 = $2.50.
So, the authorized participant should sell the value-weighted index ETF at a price of $2.50 per share to replicate the index accurately.
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A Canadian firm has just signed a deal to sell 2,200,000 board feet of random length lumber to a U.S. based furniture producer on September 25, 2021 at the prevailing USS spot price of lumber on the date of the exchange. The current spot price of lumber is $999.50 per 1000 board feet and the current CADUSD exchange rate is $0.80 per Canadian dollar. Determine the number, direction, and the settlement dates of the futures positions the firm should take to optimally hedge the lumber price and exchange rate risks. (The hyperlinks take you to the contract specifications for each contract quoted on the CME)
To optimally hedge the lumber price and exchange rate risks, the Canadian firm should take two futures positions: one for lumber and one for the CADUSD exchange rate.
For the lumber futures position, the firm should take a short position in the CME Random Length Lumber Futures contract for the same amount of lumber (2,200,000 board feet) with a settlement date of November 2021.
This will allow the firm to lock in the prevailing spot price of lumber and eliminate the risk of any price fluctuations between now and the settlement date.
For the CADUSD exchange rate futures position, the firm should take a long position in the CME CADUSD Futures contract for the same amount of Canadian dollars that will be received from the lumber sale (CAD 1,760,000) with a settlement date of September 2021.
This will allow the firm to lock in the current exchange rate of $0.80 CADUSD and eliminate the risk of any exchange rate fluctuations between now and the settlement date.
By taking these futures positions, the Canadian firm will be able to optimize their hedging strategy and eliminate the risks of lumber price and exchange rate fluctuations. This will provide them with more certainty in their revenue streams and allow them to focus on their core business operations without worrying about market risks.
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Muller company sponsors a performance-based stock option plan. When the options are granted, Muller should recognize related compensation expense if the achievement of the performance-based condition is _______?
Muller company sponsors a performance-based stock option plan. When the options are granted, Muller should recognize related compensation expense if the achievement of the performance-based condition is probable.
This means that the achievement of the performance-based condition must be likely to occur for Muller to recognize the compensation expense.
In accounting, the recognition of compensation expense is based on the matching principle, which requires that expenses be recognized in the same period as the related revenue. In this case, the compensation expense is related to the stock options granted, and the revenue is related to the performance-based condition.
Therefore, the recognition of the compensation expense is contingent on the achievement of the performance-based condition, and it must be probable for the expense to be recognized. If the achievement of the performance-based condition is not probable, the compensation expense should not be recognized until it becomes probable.
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A trust has the following results for the current year: Capital gains $100,000 Capital losses 20,000 The trust has available net capital losses of $35,000 incurred in the previous year.
Determine the maximum amount that can be allocated to a beneficiary.
To determine the maximum amount that can be allocated to a beneficiary, we need to calculate the trust's taxable income for the current year.
The taxable income of a trust is calculated by subtracting any allowable deductions from the trust's total income. In this case, the trust's total income is the capital gains of $100,000, and its allowable deductions are the capital losses of $20,000 and the net capital losses of $35,000 from the previous year.
Therefore, the taxable income of the trust for the current year is:
$100,000 (capital gains) - $20,000 (capital losses) - $35,000 (net capital losses from the previous year) = $45,000
Assuming that the trust is distributing all of its income for the year, the maximum amount that can be allocated to a beneficiary is equal to the trust's taxable income of $45,000.
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Decision makers are often motivated to pour more resources into a failing project because of the large value of resources already put into the project. This problem is known as Multiple Choice intuition. Sunk costs effect. Prospect theory effect. Bounded rationality. Self-justification effect
The problem of decision makers being motivated to pour more resources into a failing project because of the large value of resources already put into the project is known as the sunk costs effect. Therefore, the correct answer is "Sunk costs effect."
The sunk costs effect refers to the tendency for decision makers to continue investing resources into a project or endeavor that is failing, due to the amount of resources already invested. This can be a result of the individual's desire to justify their past decisions and avoid feeling like they have wasted resources or made a poor decision. This can lead to a suboptimal outcome for the organization, as resources are being allocated inefficiently, and the project may not be salvageable.
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MANAGERIAL ACCOUNTING:
6. Ajman Pharmacy Inc. has the following sales budget for the first two quarters of next year:
January $250,000
February $200,000
March $230,000
April $220,000
May $245,000
June $198,000
Cash collections have been determined to follow the pattern below:
70 percent of sales collected in month of sales
20 percent of sales collected in month after sale
10 percent of sales collected two months after sale
What the total cash collections for March?
For managerial accounting, the total cash collection for March is $226,000.
To calculate the total cash collections for March, we need to consider the cash collections pattern provided:
- 70% of sales collected in the month of sales
- 20% of sales collected in the month after the sale
- 10% of sales collected two months after the sale
For March's total cash collections, we need to consider sales from January, February, and March. Here's the breakdown:
1. 70% of March sales:
$230,000 * 70% = $161,000
2. 20% of February sales:
$200,000 * 20% = $40,000
3. 10% of January sales:
$250,000 * 10% = $25,000
Now, let's sum up these amounts:
$161,000 + $40,000 + $25,000 = $226,000
So, the total cash collection for March is $226,000.
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part a. What is a contra asset account?
part b. Why do we use contra asset accounts?
part c.Give an example of a contra asset account as well as the adjusting entry that impacts the contra asset account. How does the adjusting entry impact asset value?
The questions asked are about meaning, purpose, examples and adjusting entries related to contra assets. The answers to the questions are as below.
A. A contra asset account is an account that has a credit balance and is used to reduce the balance of the corresponding asset account. In other words, it is an account that is used to offset the value of an asset account.
B. We use contra asset accounts for various reasons, but mainly to reflect the true value of the asset. For instance, when a company purchases an asset, it may not be in pristine condition, and some of its value may have been lost over time. This loss of value is reflected in the contra asset account, which in turn reduces the value of the asset account. By doing so, the company can more accurately reflect the true value of the asset on its financial statements.
C. An example of a contra asset account is accumulated depreciation, which is used to offset the value of property, plant, and equipment. The adjusting entry that impacts the accumulated depreciation account is a credit entry to reflect the depreciation expense. This credit entry reduces the value of the asset, which is reflected in the contra asset account.
The adjusting entry impacts the asset value by reducing it. This reduction is necessary to reflect the decrease in the value of the asset due to wear and tear or obsolescence. Without a contra asset account, the asset value would remain unchanged, which would not reflect the true value of the asset.
In summary, a contra asset account is an account that is used to offset the value of an asset account. We use contra asset accounts to reflect the true value of an asset, and an example of a contra asset account is accumulated depreciation. The adjusting entry that impacts the contra asset account is a credit entry, which reduces the value of the asset and reflects the decrease in value due to wear and tear or obsolescence.
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15 Question (2 points) See page 66 Visit museums or art galleries and you may live longer by Katie Hunt Visit museums or art galleries and you may live longer, new research suggests A trip to the theater, museum or art gallery could help you live longer. And the more often you get that culture fix the better, a new study suggests. Researchers from University College London (UCI) found that people who engaged in the arts more frequently -- every few months or more - had a 31% lower risk of dying early when compared to those who didn't. Even going to the theater or museum once or twice a year was linked with a 14% lower risk. They looked at data given by more than 6,000 adults in England age 50 years and older, who were taking part in a wider study on aging. "While other health behaviors like smoking, alcohol and exercise are undoubtedly bigger predictors of mortality, these leisure and pleasure activities that people don't think as a health related activity do support good health and longevity, said Daisy Fancourt, an associate professor at UCL's Research Department of Behavioural Science and Health, and an author of the study, published Wednesday in the BMI journal. How often an individual engaged in art activities, which also included exhibitions, concerts and opera but not cinema, was measured at the start of the study in 2004 to 2005. Participants were then followed up for an average of 12 years, during which time deaths were recorded using data from the UK's National Health Service (NHS) Based on the article, it can be determined that attendance and health. is a factor that explains part of the association between museum Part 2 (1 point) As it relates to frequency of engagement in art activities and longevity, the research highlighted in the article notes that the relationship is what? Choose one: O A. positive and causal O B. positive but not necessarily causal O C. negative and causal O D. negative but not necessarily causal
B. positive but not necessarily causal
The term "positive but not necessarily causal" is often used in statistics and research to describe a correlation between two variables, where an increase or decrease in one variable is associated with a corresponding increase or decrease in the other variable.
For example, let's say that a study found a positive correlation between the amount of exercise a person gets and their level of happiness. This means that as the amount of exercise a person gets increases, their level of happiness also tends to increase.
However, this does not necessarily mean that exercise directly causes happiness. It is possible that there are other factors at play, such as the social benefits of exercising with others or the self-discipline required to exercise regularly, that also contribute to the increase in happiness.
In general, a positive correlation suggests that there is some relationship between two variables, but it does not necessarily mean that one variable directly causes the other. Additional research, such as randomized controlled trials, may be needed to establish a causal relationship between the variables.
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Check my wo A review of the accounting records of Campbell Manufacturing Indicated that the company incurred the following payroll costs during the month of March Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,800. 2. Salary of the vice president of manufacturing-$15,800. 3. Salary of the chief financial officer-$18,000. 4. Salary of the vice president of marketing-$15,700 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$193,000, 6. Wages of production workers-$939,000. 7. Salaries of administrative secretaries-$107.000 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$185,000 9. Commissions paid to sales staff-$255,000 Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Campbell made 3,600 units of product and sold 2,520 of them during the month of March, determine the amount of payroll cost that would be included in cost of goods sold (Do not round intermediate calculations.) Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Campbell made 3,600 units of product and sold 2,520 of them during the month of March, determine the amount of payroll cost that would be included in cost of goods sold. (Do not round intermediate calculations.) a Payroll cost to be included in SG&A cost b. Payroll cost to be included in cost of goods sold
To determine the payroll cost to be included in SG&A (Selling, General, and Administrative) expenses, we need to add up the salaries of the company president, vice president of manufacturing, chief financial officer, vice president of marketing, administrative secretaries, and the commissions paid to sales staff.
Payroll cost included in SG&A expense = $32,800 + $15,800 + $18,000 + $15,700 + $107,000 + $255,000
Payroll cost included in SG&A expense = $444,300
b. To determine the payroll cost to be included in Cost of Goods Sold (COGS), we need to calculate the total manufacturing overhead cost and deduct the amount of overhead that is not related to the production process.
Manufacturing overhead cost = Salaries of middle managers in manufacturing plant + Wages of production workers + Salaries of engineers and other personnel responsible for maintaining production equipment
Manufacturing overhead cost = $193,000 + $939,000 + $185,000
Manufacturing overhead cost = $1,317,000
We can assume that all of these overhead costs are related to the production process, so we can include the entire amount in COGS.
Payroll cost included in COGS = Manufacturing overhead cost
Payroll cost included in COGS = $1,317,000
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The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:ParticularsMayJuneJulySales$86,000$90,000$95,000Manufacturing costs$34,000$39,000$44,000Selling and administrative expenses$15,000$16,000$22,000Capital expenditures$80,000The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (the second month following the sale). Depreciation, insurance, and property tax expense represent $3,500 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.Current assets as of May 1 include cash of $33,000, marketable securities of $40,000, and accounts receivable of $90,000 ($72,000 from April sales and $18,000 from March sales). Sales on account for March and April were $60,000 and $72,000, respectively. Current liabilities as of May 1 include $6,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $14,000 will be made in June. Sonoma's regular quarterly dividend of $5,000 is expected to be declared in June and paid in July. Management desires to maintain a minimum cash balance of $30,000.Required:Prepare a monthly cash budget and supporting schedules for May, June, and July 2014.
The cash budget helps the company to maintain a minimum cash balance, manage cash flow effectively, and plan for any necessary borrowing or investing activities.
To prepare a monthly cash budget for Sonoma Housewares Inc. for May, June, and July 2014, follow these steps:
1. Calculate cash collections from sales:
- Cash sales = 10% of monthly sales
- Collections from sales on account in the month following the sale = 70% of previous month's sales on account
- Collections from sales on account in the second month following the sale = 30% of sales on account two months prior
2. Calculate cash payments for manufacturing costs:
- Payments for current month's manufacturing costs (excluding depreciation, insurance, and property tax) = 80% of (total manufacturing costs - $3,500)
- Payments for previous month's manufacturing costs = 20% of previous month's (total manufacturing costs - $3,500)
3. Calculate cash payments for selling and administrative expenses, capital expenditures, income tax payment, and dividends.
4. Calculate cash surplus/deficit:
- Cash surplus/deficit = Cash collections - (Cash payments for manufacturing costs + Cash payments for selling and administrative expenses + Capital expenditures + Income tax payment + Dividends)
5. Calculate ending cash balance:
- Ending cash balance = Beginning cash balance + Cash surplus/deficit
6. Adjust ending cash balance if it falls below the minimum cash balance of $30,000 by borrowing funds or investing excess cash.
7. Create the cash budget with the following columns: beginning cash balance, cash collections, cash payments, cash surplus/deficit, ending cash balance, and adjustments for minimum cash balance.
By following these steps, you can create a cash budget and supporting schedules for May, June, and July 2014 for Sonoma Housewares Inc.
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_________ is a theory stating that the value of a resource is viewed relative to its potential to create competitive differentiation or customer value?
Resource-Based View is a theory stating that the value of a resource is viewed relative to its potential to create competitive differentiation or customer value.
In other words, a resource is valuable only when it is rare, difficult to imitate, and cannot be substituted easily by competitors. The RBV theory argues that firms should focus on developing unique resources that can create a competitive advantage, rather than relying on generic resources that are available to all firms.
By developing unique resources, firms can create a sustainable competitive advantage, which is difficult for competitors to replicate.
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how can consumers help protect themselves from product fraud? buying extended warranties working for the government researching potential purchases following social media influencers
Consumers can protect themselves from product fraud through several strategies.
Firstly, they should consider buying extended warranties, which can provide additional coverage and protection against faulty products. Secondly, conducting thorough research before making purchases is essential.
Consumers should read product reviews, compare prices, and investigate the reputation of the seller or manufacturer. Additionally, following credible social media influencers who offer unbiased product recommendations can help consumers make informed choices. It is crucial to verify the influencers' credibility and ensure they are not promoting fraudulent products.
Overall, a combination of extended warranties, research, and reliable sources of information can empower consumers to safeguard themselves from product fraud.
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other things the same, if the long-run aggregate supply curve shifts left, prices question 5 options: and output both increase. and output both decrease. increase and output decreases. decrease and output increases.
If the long-run aggregate supply curve shifts left, prices would increase and output would decrease.
The long-run aggregate supply curve represents the economy's potential output when all resources are fully utilized. A leftward shift in this curve would indicate a decrease in the economy's potential output, which would lead to a decrease in actual output in the short run. This decrease in output would put upward pressure on prices as the economy would be producing less than what is demanded.
The shift in the long-run aggregate supply curve could be caused by various factors such as a decrease in the availability of natural resources, a decrease in the quality of labor, or a decrease in the level of technological advancement. Whatever the cause may be, the result is a decrease in the economy's potential output, which would lead to an increase in prices and a decrease in output of the demand.
It is important to note that in the long run, the economy will adjust to the new potential output level and output will return to its natural level, but at a higher price level. However, in the short run, there will be a decrease in output and an increase in prices.
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youexpect to retire in 15 years after you retire you want to be ableto withdraw 4000 from your account each month for 20 years if youraccount earns 7% interest compounded monthly how much will you
You need to deposit $2,393.32 each month until retirement, assuming a 7% interest rate compounded monthly.
To determine the monthly deposit required to achieve your retirement goals, we need to first calculate the future value of the withdrawals you'll make during retirement and then calculate the monthly deposits needed to reach that future value.
Step 1: Calculate the future value of withdrawals during retirement
Use the Present Value of Ordinary Annuity formula:
[tex]PV = PMT \times \frac{1 - (1 + r)^{(-n)}}{r}[/tex]
Where:
PV = Present Value (amount needed in the account at the start of retirement)
PMT = Monthly withdrawal amount ($4,000)
r = Monthly interest rate (7% per year compounded monthly, 0.07 / 12 = 0.00583)
n = Number of withdrawals (20 years [tex]\times[/tex] 12 months = 240)
[tex]PV = \$4,000 \times \frac{1 - (1 + 0.00583)^{(-240)}}{0.00583} = \$659,959.88[/tex]
Step 2: Calculate the monthly deposits needed to reach the future value
Use the Future Value of Ordinary Annuity formula:
[tex]FV = PMT \times \frac{(1 + r)^{n - 1}}{r}[/tex]
Where:
FV = Future Value (amount needed at retirement, $659,959.88)
PMT = Monthly deposit (unknown)
r = Monthly interest rate (0.07 / 12 = 0.00583)
n = Number of deposits (15 years [tex]\times[/tex] 12 months = 180)
Solving for PMT:
[tex]PMT = FV / [\frac{1 + r^{n - 1}}{r} ] = \$659,959.88 / [((1 + 0.00583)^1^8^0 - 1) / 0.00583][/tex]
= $2,393.32 each month.
To achieve your retirement goals, you need to deposit $2,393.32 each month until retirement, assuming a 7% interest rate compounded monthly.
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Required Compute variances for the following items and indicate whether each varlance is favorable (F) or unfavorable (U): (Select "None" If there is no effect (.e., zero varlance).) Item Budget Actual Variance Effect
Sales price $ 660 $ 530 ___ ___
Sales revenue 585.000 610.000 ___ ___
Cost of goods sold 392.500 365.000 ___ ___
Material purchases at 5,000 pounds 280.000 287.500 ___ ___
Materials usage 187.500 183.000 ___ ___
Production volume 1000 units 925 units ___ ___
Wages at 4,000 hours 61.000 59.200 __ ___
Labor usage at $16 per hour 96.500 98.000 ___ ___
Research and development expense 27.000 32.500 __ __
Selling and administrative expenses 56.500 45.000 __ __
Analysis for computing the variances for the items listed and indicating whether each variance is favorable (F) or unfavorable (U).
1. Sales price variance:
Variance = Actual - Budget = $530 - $660 = -$130 (U)
2. Sales revenue variance:
Variance = Actual - Budget = $610,000 - $585,000 = $25,000 (F)
3. Cost of goods sold variance:
Variance = Actual - Budget = $365,000 - $392,500 = -$27,500 (F)
4. Material purchases at 5,000 pounds variance:
Variance = Actual - Budget = $287,500 - $280,000 = $7,500 (U)
5. Materials usage variance:
Variance = Actual - Budget = $183,000 - $187,500 = -$4,500 (F)
6. Production volume variance:
Variance = Actual - Budget = 925 units - 1000 units = -75 units (U)
7. Wages at 4,000 hours variance:
Variance = Actual - Budget = $59,200 - $61,000 = -$1,800 (F)
8. Labor usage at $16 per hour variance:
Variance = Actual - Budget = $98,000 - $96,500 = $1,500 (U)
9. Research and development expense variance:
Variance = Actual - Budget = $32,500 - $27,000 = $5,500 (U)
10. Selling and administrative expenses variance:
Variance = Actual - Budget = $45,000 - $56,500 = -$11,500 (F)
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Ahlia Co manufactures mobile phones. It has been extremely successful in the past, but the market has become extremely competitive. The company is considering a number of different strategies to improve its profitability. The most successful product is the BMW which is sold for $110. Weekly demand is currently 20,000 phones. Market research has revealed that if Ahlia Co reduced the price of the BMW by $5, demand would increase by 2,000 phones. The product has a constant variable cost per unit of $80. Instructions: a Determine the demand function. (4 marks) b. Determine the output level to maximize profit. (4 marks) c. Determine the price to be charged to maximize profit. (2 marks)
a. The demand function for the BMW is Q = 11,690,000.
b. The price to be charged to maximize profit is $105.
c. Therefore, the output level to maximize profit is 1,690,000.
a. The equation that relates the price of the BMW to its weekly demand. The demand function will be in the form of Q = aP, where Q is the weekly demand and P is the price of the BMW.
Since the price has been reduced by $5, we need to find the new quantity demanded (Qnew) that will result in the same total revenue (TR) as before the price reduction.
TR = P x Q
TR = $110 x Q
TR = $110 x (20,000 - 2,000)
TR = $110 x 18,000
New quantity demanded = 20,000 - 2,000 = 18,000
Qnew = 18,000 x 105
=1,690,000
Therefore, the demand function for the BMW is Q = 1,690,000 - 1,690,000 x 0.05 = 1,690,000.
b. The price that will result in the highest profit. We can use the profit equation, which is TR - CP, where TR is total revenue and CP is total cost.
Total cost = $80 x Q
Total cost = $80 x 1,690,000
Total cost = $135,200,000
Total revenue = $110 x Qnew
Total revenue = $110 x 1,690,000
Total revenue = $2,189,000,000
Profit = Total revenue - Total cost
Profit = 2,189,000,000−135,200,000
Profit = $1,953,800,000
Therefore, the output level to maximize profit is 1,690,000.
c. Price to be charged to maximize profit, we need to find the price that will result in the highest profit. We can use the profit equation, which is TR - CP, where TR is total revenue and CP is total cost.
Total cost = $80 x Q
Demanded (Qnew) and price (Pnew) from the previous answer, we get:
Total cost = $80 x 1,690,000
Total cost = $135,200,000
Total revenue = $110 x Qnew
demanded (Qnew) and price (Pnew) from the previous answer, we get:
Total revenue = $110 x 1,690,000
Total revenue = $2,189,000,000
Profit = Total revenue - Total cost
= 2,189,000,000−135,200,000
Profit = $1,953,800,000
Therefore, the price to be charged to maximize profit is $105.
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contributions to charitable organizations such as the american cancer socierty are tax deductible. what does this men
When you make a contribution to a charitable organization like the American Cancer Society, you may be able to deduct the donation on your tax return.
This means that you can reduce your taxable income by the amount of the donation, which can lower the amount of taxes you owe. However, there are limits to how much you can deduct and certain rules that must be followed. For example, you must donate to a qualified charitable organization and keep proper documentation of your donation.
It's important to consult with a tax professional or refer to the IRS guidelines to ensure you are following the correct procedures for deducting charitable contributions on your taxes.
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Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overhead budget for the Fabrication Department is $550,000, using 500,000 direct labor hours. The factory overhead budget for the Assembly Department is $400,000, using 80,000 direct labor hours. If a table lamp requires 2 hours of fabrication and 1 hour of assembly, the total amount of factory overhead that Kaumajet Factory will allocate to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours if 75,000 units are produced is a.$540,000 b.$475,000 c.$832,500 d.$368,250
First, we need to calculate the predetermined overhead rate for each department: The Correct option is A $540,000.
Fabrication department:
Predetermined overhead rate = Budgeted overhead / Budgeted direct labor hours
Predetermined overhead rate = $550,000 / 500,000 hours
Predetermined overhead rate = $1.10 per direct labor hour
Assembly department:
Predetermined overhead rate = Budgeted overhead / Budgeted direct labor hours
Predetermined overhead rate = $400,000 / 80,000 hours
Predetermined overhead rate = $5 per direct labor hour
Next, we can calculate the total amount of direct labor hours required to produce 75,000 units of table lamps:
Direct labor hours per unit = 2 + 1 = 3
Total direct labor hours = 75,000 units x 3 hours per unit = 225,000 direct labor hours
Finally, we can calculate the total amount of factory overhead allocated to table lamps:
Fabrication department overhead = $1.10 x 150,000 direct labor hours (2 hours per unit x 75,000 units)
Fabrication department overhead = $165,000
Assembly department overhead = $5 x 75,000 direct labor hours (1 hour per unit x 75,000 units)
Assembly department overhead = $375,000
Total factory overhead allocated = Fabrication department overhead + Assembly department overhead
Total factory overhead allocated = $165,000 + $375,000
Total factory overhead allocated = $540,000
Therefore, the answer is $540,000.
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Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $100. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement (Percent) 25 10 Simple Money Multiplier
The money multiplier and money supply for reserve requirements of 25% and 10% are: 4 and $400, and 10 and $1,000, respectively.
If the reserve requirement is 10% and the Fed wants to increase the money supply by $100, it will need to purchase $1,000 worth of U.S. government bonds through open-market operations.
An increase in the reserve ratio from 10% to 20% causes the money multiplier to decrease from 10 to 5, and the Fed would need to purchase $2,000 worth of U.S. government bonds in order to increase the money supply by $100.
The reason why the Fed cannot precisely control the money supply in the real world is that it cannot control the amount of money that households choose to hold as currency, it cannot prevent banks from lending out required reserves, and it cannot control whether and to what extent banks hold excess reserves.
The amount of currency held by households and the amount of excess reserves held by banks are outside of the Fed's direct control, and can have an impact on the money supply that is difficult for the Fed to predict or adjust for.
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Complete question:
Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $100. Determine the money multiplier and the money supply for each reserve requirement listed in the following table.
Reserve Requirement Simple Money Multiplier Money Supply
(Percent) (Dollars)
25
10
A lower reserve requirement is associated with a money supply.
Suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to worth of U.S. government bonds.
Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20%. This increase in the reserve ratio causes the money multiplier to to . Under these conditions, the Fed would need to worth of U.S. government bonds in order to increase the money supply by $100.
Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply? Check all that apply.
The Fed cannot control the amount of money that households choose to hold as currency.
The Fed cannot prevent banks from lending out required reserves.
The Fed cannot control whether and to what extent banks hold excess reserves.
Which one of the following statements is the most accurate?
a. A rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
b. For a given euro interest rate and constant expected exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
c. A rise in the interest rate offered by dollar deposits causes the dollar to depreciate.
d. A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar.
e. A rise in the interest rate offered by the dollar causes the euro to appreciate.
The most accurate statement among the given options is b. For a given euro interest rate and constant expected exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
When the interest rate on dollar deposits increases, it makes holding dollars more attractive for investors as they can earn higher returns. Consequently, the demand for dollars goes up. With a given euro interest rate and constant expected exchange rate, the increased demand for dollars will cause the dollar's value to appreciate relative to other currencies, such as the euro.
This appreciation of the dollar means that it takes fewer dollars to purchase one euro, and the exchange rate between the two currencies shifts in favor of the dollar.
In summary, when the dollar interest rate rises, and the euro interest rate and expected exchange rate remain constant, the increased demand for dollars leads to the appreciation of the dollar relative to the euro.
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rachel is purchasing a new camera that costs $2400 . rachel uses a credit card that has an apr of 19.11% . how much will she pay in total to pay off the purchase if she makes monthly payments of $70 ? round the number of monthly payments up to the nearest whole number. round your final answer to the nearest whole number, if necessary.
Rachel is purchasing a new camera for $2,400 using a credit card with an APR of 19.11%.
If she makes monthly payments of $70, we can calculate the total amount she'll pay by first determining the number of payments needed. To do this, we'll use the formula:
A = P(1 + r/n)^nt
Where A is the final amount, P is the principal ($2,400), r is the interest rate (0.1911), n is the number of times interest is compounded annually, and t is time in years. Since the payments are monthly, we'll divide the interest rate by 12 (r/12) and use 1 year (t=1) to find the amount after one payment.
A = 2400(1 + 0.1911/12)^(12*1)
A ≈ $2,538.93
Subtract the first payment of $70 from this amount:
$2,538.93 - $70 = $2,468.93
Continue this process, and it will take approximately 39 monthly payments to pay off the camera. To calculate the total amount paid, multiply the number of payments by $70 and round to the nearest whole number:
39 * $70 ≈ $2,730
Therefore, Rachel will pay approximately $2,730 in total to pay off her camera purchase.
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on september 1, 2012, southwest airlines borrows $40 million, of which $8 million is due next year. show how southwest airlines would record the $40 million debt on its december 31, 2012, balance sheet
On December 31, 2012, Southwest Airlines would record the $40 million debt under the "Liabilities" section of its balance sheet. The $8 million due within the next year would be recorded under the "Current Liabilities" subsection, while the remaining $32 million would be recorded under the "long-term debt" subsection.
This would increase the company's total liabilities by $40 million, and would need to be offset by an equal increase in assets or a decrease in equity to maintain the balance sheet equation of Assets = Liabilities + Equity. Assuming that the borrowing is a long-term debt, here's how Southwest Airlines would record the $40 million debt on its December 31, 2012, balance sheet: Southwest Airlines Balance Sheet December 31, 2012 Liabilities: Long-term debt $40,000,000 The $8 million that is due next year would be classified as a current liability on the balance sheet. However, since the question only asks for the recording of the $40 million debt, it is not necessary to show the $8 million portion in this answer.
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An economy is described by the following equations:
Desired consumption: C^d = 120+0.5(Y-T )-500r
Desired investment: Id =100-500r
Government purchase: G= 120
Government taxes: T = 90
Real money demand L =0.5Y-1,000r
Nominal Money supply M = 1,350
Full-employment output Y= 500
Assume that expected inflation is zero so that money demand depends directly on the real interest rate.
Find the equation for the IS curve (report your coefficients with one decimal place ):
Y = ___ −_____ r.
Find the equation for the LM curve
Y = ____ - ____/p
The IS-LM model is a standard tool in macroeconomics used to analyze the relationship between interest rates, output, and other macroeconomic variables. The IS curve represents the equilibrium in the goods market, while the LM curve represents the equilibrium in the money market.
To find the equation for the IS curve, we need to equate desired expenditure with output. Desired expenditure is given by C^d + I^d + G, where C^d is desired consumption, I^d is desired investment, and G is government purchases. Output, Y, is given by Y = C + I + G, where C is actual consumption and I is an actual investment. Since we are assuming that expected inflation is zero, actual and desired consumption are the same, so we can write C = C^d. Using this information, we can write the desired expenditure as follows:
C^d + I^d + G = Y
Substituting the expressions given in the problem and solving for Y, we get:
Y = 740 - 1,000r
Therefore, the equation for the IS curve is:
Y = 740 - 1,000r
To find the equation for the LM curve, we need to equate the demand for real money balances (L/P) with the supply of real money balances (M/P), where P is the price level. Using the expression for real money demand given in the problem, we can write:
0.5Y - 1,000r = M/P
Substituting in the expression given for nominal money supply and solving for Y, we get:
Y = 2,700r + 2,700
Therefore, the equation for the LM curve is:
Y = 2,700r + 2,700
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81. The process of socialization may be said to involve turning insiders into outsiders. True False
False, The process of socialization does not involve turning insiders into outsiders. Instead, socialization is the process by which individuals learn and internalize the norms, values, and beliefs of their culture and society, and become members of that society.
Socialization helps individuals develop a sense of self and a sense of belonging to their community or group, rather than isolating them from it. Socialization occurs throughout an individual's life, beginning in childhood and continuing throughout adulthood.
It is a complex process that involves interactions with various agents of socialization, such as family, peers, schools, media, and religion, among others. While socialization can result in some individuals or marginalized due to their differences, the overall goal is to create a cohesive society where individuals understand and respect each other's differences, rather than turning insiders into outsiders. Therefore, it is false to say that the process of socialization involves turning insiders into outsiders.
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True/False : When a firm establishes a single and promotional strategy that it can implement worldwide, it is creating a global advertising campaign.
True. When a firm establishes a single advertising and promotional strategy that can be implemented globally, it is creating a global advertising campaign. This type of campaign is designed to reach a global audience and convey a consistent message across multiple markets and regions.
A global advertising campaign is typically characterized by a standardized message and creative approach that is adapted to fit the cultural and linguistic differences of each region. By developing a global advertising campaign, firms can benefit from economies of scale and reduce costs associated with creating individual advertising campaigns for each market.
However, creating a successful global advertising campaign can be challenging, as cultural differences and consumer preferences can vary significantly across different regions. Therefore, it is crucial for firms to conduct extensive research and testing to ensure that their advertising message resonates with their target audience in each market.
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17. _____ are incentive programs based on group productivity. Employees share in the financial gains attributed to the increased productivity of their group.
The term that best describes this type of incentive program is "group-based incentive programs". In these programs, employees are rewarded based on the collective productivity and performance of their team or department.
This approach fosters a sense of teamwork and encourages employees to collaborate and support one another in achieving common goals. The financial gains from increased productivity are shared among the group, providing a sense of ownership and motivation to work harder and achieve better results.
The term you're looking for is "Gainsharing Programs." Gainsharing programs are incentive programs based on group productivity, where employees share in the financial gains attributed to the increased productivity of their group.
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112. Explaining the overall purpose of a job to trainees before explaining specific tasks is an example of transference as a learning principal. True False
The best alternative of the situation is True, explaining the overall purpose of a job to trainees before explaining specific tasks is an example of transference as a learning principle.
transference is the process of applying knowledge or skills learned in one context to another context. In the case of job training, this means that trainees are able to apply the knowledge and skills learned in the training to the actual job they will be performing. By explaining the overall purpose of a job before specific tasks, trainees are able to better understand how their individual tasks fit into the larger picture. This helps them to see the relevance of what they are learning and how it applies to the job as a whole. It also helps them to develop a better understanding of the job and the organization, which can improve their overall performance.
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