In the case of Export Co. v. Imports, Inc., the court is faced with a situation where there is no established precedent that can guide them in making a decision.
This means that the court cannot rely on previous rulings or judgments to determine the outcome of the case. In such situations, the court can consider various factors, including public policy and social customs and values.
Public policy refers to the principles and values that guide government action and decision-making. It represents the interests of the general public and aims to promote the common good. In cases where there is no precedent, the court may consider public policy as a factor in their decision-making process.
Social customs and values, on the other hand, refer to the unwritten rules and expectations that guide behavior within a particular society or culture. These can include beliefs about what is right or wrong, acceptable or unacceptable, and can influence how individuals and institutions make decisions.
In conclusion, when there is no precedent available, the court can consider public policy or social customs and values in making a decision. These factors may help guide the court in determining what is fair and just in a particular case, and ultimately lead to a ruling that aligns with the broader interests of society.
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the purpose of many business messages is to make a request or to reply to previously received communication. familiarize yourself with the organization of these messages so you can communicate your purpose and achieve a positive outcome. read the scenario, and then answer the question. your manager asks you for advice about a request e-mail she is composing to a customer. what advice would you give? focus on benefits to the customer. eliminate parallel construction when possible. avoid itemizing information in lists.
Composing a request email to a customer, focusing on benefits to the customer, eliminating parallel construction, and avoiding itemized lists. Here's my advice:
1. Start with a clear and concise subject line: This helps the customer understand the purpose of the email immediately.
2. Address the customer professionally and politely: Use their name and any appropriate titles to show respect and build rapport.
3. Clearly state the purpose of the email: Explain the reason for the request in a concise manner, ensuring the customer understands why they are being contacted.
4. Focus on benefits to the customer: When presenting your request, highlight the advantages and benefits the customer will gain by fulfilling the request. This will make the customer more inclined to cooperate.
5. Eliminate parallel construction when possible: To make your email easy to read, avoid using parallel construction, as it may make the text repetitive and difficult to understand.
6. Avoid itemizing information in lists: Instead of using bullet points or numbered lists, present information in a more narrative form. This helps maintain a conversational tone and keeps the email from appearing too formal or demanding.
7. Provide clear and specific information: Ensure that the customer has all the details needed to fulfill your request. Be clear about deadlines, contact information, and any additional requirements.
8. Close the email professionally and politely: Thank your customer for their time and consideration, and let them know how they can reach you if they have any questions or concerns.
By following this advice, your manager can compose an effective and professional request email that focuses on the customer's benefits and increases the chances of a positive outcome.
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A lash adjuster keeps pressure constant on engine valves, thereby increasing fuel efficiency in automobile engines. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation: D=(3,200 – p)/0.10. What is the demand (D) when total revenue is maximized? What important data are needed if maximum profit is desired?
The demand (D) when total revenue is maximized is 1,600.
To find the level of output that will give us maximum profit, we need to know the cost per lash adjuster.
To find the demand (D) when total revenue is maximized, we need to find the price (p) that will give us the maximum revenue. Revenue (R) is calculated as the product of price (p) and demand (D), i.e., R = pD.
To maximize revenue, we need to differentiate R with respect to p and set it equal to zero.
dR/dp = d/dp (pD) = D + p(dD/dp) = 0
Solving for p, we get:
p = (3,200 - 0.20D)
Substituting this value of p in the demand equation, we get:
D = (3,200 - (3,200 - 0.20D))/0.10
D = 1,600
Therefore, the demand (D) when total revenue is maximized is 1,600.
To maximize profit, we need to know the cost of producing each lash adjuster, as well as any other relevant costs such as shipping, taxes, etc. We can then calculate profit as the difference between revenue and total cost (TC).
Profit = R - TC
To find the level of output (i.e., demand) that will give us maximum profit, we need to differentiate profit with respect to output (D) and set it equal to zero.
d(Profit)/d(D) = d(R - TC)/d(D) = dR/dD - dTC/dD = 0
Solving for D, we get:
D = (3,200 - c)/0.20
where c is the cost per lash adjuster.
Therefore, to find the level of output that will give us maximum profit, we need to know the cost per lash adjuster.
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Why would versification over purchasing one stock?
Versification, or diversification, is often preferred over purchasing just one stock because it helps to spread out investment risk.
By investing in a variety of stocks across different industries and sectors, the potential losses from one poorly-performing stock can be offset by gains from others. This can result in a more stable and consistent investment portfolio over time. Additionally, diversification can also provide opportunities for growth in different areas of the market, allowing investors to capture potential gains from a wider range of stocks. Overall, while purchasing one stock may have the potential for higher returns, it also comes with higher risk, whereas diversification can provide a more balanced and secure investment strategy.
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according to the concept of money neutrality, if the money supply increases by 10% then in the long run: a unemployment drops by 20%. b unemployment drops by 10%. c real gdp increases by 10%. d the interest rate falls by 10%. e the price level increases by 10%.
According to the concept of money neutrality, if the money supply increases by 10% then in the long run the price level increases by 10%. The correct option is e) the price level increases by 10%.
According to the concept of money neutrality, changes in the money supply only affect nominal variables, such as the price level, in the long run. Money neutrality suggests that an increase in the money supply does not impact real variables, such as unemployment or real GDP.
If the money supply increases by 10%, the correct answer is (e) the price level increases by 10%. The reason for this outcome is that when there is more money in circulation, the purchasing power of money decreases, leading to higher prices for goods and services. This is known as inflation.
In the long run, money neutrality implies that changes in the money supply do not have any impact on real GDP, as the economy will adjust to the new price level. Similarly, unemployment rates will not be affected by the increase in the money supply, as these are determined by factors unrelated to the money supply, such as labor market conditions and productivity. Therefore, options (a), (b), and (c) are incorrect.
As for option (d), the interest rate may initially fall in the short run due to the increase in money supply, but it will eventually adjust to a new equilibrium level in the long run, making this answer incorrect as well. The correct option is e) the price level increases by 10%.
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On January 1, 2011, Ellsworth Company completed the following transactions (use an 8percent annual interest rate for all transactions):a. Borrowed $2,000,000to be repaid in five years. Agreed to pay $150,000interest each year for the five years.b. Established a plant addition fund of $1,000,000to be available at the end of year 10. A single sum that will grow to $1,000,000will be deposited on January 1, 2011.c. Purchased a $750,000machine on January 1, 2011, and paid cash, $400,000. A four-year note payable is signed for the balance. The note will be paid in four equal year-end payments starting on December 31, 2011.1. In transaction (a), determine the present value of the obligation.2. In transaction (b), what single amount must the company deposit on January 1, 2011? What is the total amount of interest revenue that will be earned?3. In transaction (c), what is the amount of each of the equal annual payments that will be paid on the note? What is the total amount of interest expense that will be incurred?
In transaction (a), the total present value of the obligation is $2,043,678.14.
In transaction (b), the company must deposit a single sum that will grow to $1,000,000 at the end of year 10. In transaction (c), the amount of each of the equal annual payments that will be paid on the note is $139,258.18.
1. To determine the present value of the obligation in transaction (a), we need to calculate the present value of the $150,000 annual interest payments for five years and the $2,000,000 principal payment to be made at the end of year five.
Using an 8% annual interest rate, the present value of the interest payments is $574,349.58 and the present value of the principal payment is $1,469,328.56. Therefore, the total present value of the obligation is $2,043,678.14.
2. In transaction (b), the company must deposit a single sum that will grow to $1,000,000 at the end of year 10. Using an 8% annual interest rate, the single amount that must be deposited on January 1, 2011 is $463,193.51. The total amount of interest revenue that will be earned is $536,806.49 ($1,000,000 - $463,193.51).
3. In transaction (c), the amount of each of the equal annual payments that will be paid on the note is $139,258.18. The total amount of interest expense that will be incurred is $146,946.34. This is calculated by taking the total interest payable on the note ($249,946.34) and subtracting the interest payable in the first year ($103,000).
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true or false: because t-bills have low risk relative to common stocks, t-bills cannot outperform common stocks.
The statement "because t-bills have low risk relative to common stocks, t-bills cannot outperform common stocks" is true.
However, this does not mean that T-bills cannot outperform common stocks in certain situations, especially during economic downturns or periods of market volatility when investors seek safer investments.
While T-bills may have lower risk compared to common stocks, it is important to note that they may not always provide the highest returns. In fact, during periods of low interest rates, the returns on T-bills may not even keep up with inflation, resulting in a negative real return.
On the other hand, common stocks have the potential to provide higher returns over the long-term, but they also come with higher volatility and risk.
Furthermore, the performance of T-bills and common stocks can vary depending on market conditions. During periods of economic downturns or market volatility, investors may seek safer investments such as T-bills, causing their demand and price to increase.
This may result in T-bills outperforming common stocks during those periods.
Therefore, while T-bills may be considered lower risk than common stocks, their performance relative to stocks can depend on a variety of factors, and investors should carefully consider their investment objectives and risk tolerance when making investment decisions.
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Deferred Tax Liability - $25 000 000
Over provision- $8 000 000
Taxation The company is currently unregulated, hence, it pay income taxes at the rate of 25%. The entity has accumulated deductible temporary difference amounting to $100 million and the committee indicated that it is probable that the company will earn sufficient taxable profits in the future to realize the entire deductible temporary differences. The entity reported taxable profits for the year of assessment December 2021 amounting to $240 million
The company has a deferred tax liability of $25 million, which means it has taxable temporary differences that will result in higher taxes payable in the future.
However, the company has also over-provisioned by $8 million, meaning it has set aside more money than necessary for tax payments. The company currently pays income taxes at a rate of 25%, and has accumulated deductible temporary differences of $100 million, which can be used to offset future taxable profits. For the year of assessment December 2021, the company reported taxable profits of $240 million.
Overall, it appears that the company is managing its tax liabilities effectively and has a solid plan to realize its deductible temporary differences in the future.
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jesaki water sports incurs the following costs in producing water ski vests in one day, for : fixed costs, $346; unit production cost, $21 per vest; equipment maintenance and repairs, 0.03 dollars. find the minimum average cost of a water ski vest. round to the nearest cent. $ per vest
The minimum average cost of a water ski vest is $21.03 per vest.
The minimum average cost (MAC) is the sum of fixed cost and variable cost per unit, divided by the number of units produced.
In this case, the fixed cost is $346 and the variable cost per unit is $21 + $0.03 = $21.03. Therefore, the MAC can be calculated as:
MAC = ($346 + $21.03)/1 = $367.03/1 = $21.03 per vest (rounded to the nearest cent).
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The amount of expenditures eligible for the child and dependent care credit is the least of three amounts. Which of the following is not one of those amounts? The total amount of child and dependent care expenditures for the year $3,000 for one qualifying person or $6,000 for two or more qualifying persons The dependent's earned income for the year The taxpayer's earned income for the year
The dependent's earned income for the year is not one of the three amounts that determines the amount of expenditures eligible for the child and dependent care credit.
The three amounts are the total amount of child and dependent care expenditures for the year, $3,000 for one qualifying person or $6,000 for two or more qualifying persons, and the taxpayer's earned income for the year.
Among the options provided, the one that is NOT one of the three amounts considered for determining the amount of expenditures eligible for the child and dependent care credit is: The dependent's earned income for the year.
Dependent care credit is a tax credit that provides a benefit to taxpayers who incur expenses for the care of qualifying children or dependent adults while they work or look for work. To qualify for the credit, the care must be provided by someone other than the taxpayer and must be necessary for the taxpayer to work or look for work.
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Assume that consumers respond to permanent increase in taxes by reducing their consumption in each period by the full amount of the tax increase. Also assume that investment remains unchanged. Using the classical ​IS-LM model determine the effects of a permanent increase in government purchases which is financed by an increase in​ taxes, on the following​ curves
-The FE line: shifts to the right
-The IS curve: does not shift
-The LM curve: shifts down and to the right
The effects of a permanent increase in government purchases, which is financed by an increase in taxes, on the classical IS-LM model can be seen in the following way.
The FE line, which indicates the level of aggregate demand, will shift to the right because of the increase in government spending. This increases the level of aggregate demand, leading to an increase in output and income.
However, the IS curve, which indicates the relationship between output and interest rates, will not shift as the increase in taxes reduces consumer spending, which offsets the increase in government spending.
Finally, the LM curve, which indicates the demand for money, will shift down and to the right as the increase in taxes leads to a decrease in consumer spending, and therefore a decrease in the demand for money.
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There are many types of mutual funds and exchange traded funds, but as an entire group, their primary and defining benefit relative to other types of investments is which of the following:
A. Hybridization
B. Voting rights
C. Government insurance
D. Low management costs
E. Diversification
The primary and defining benefit of mutual funds and exchange-traded funds (ETFs) relative to other types of investments is their ability to provide investors with diversification. The correct option is D.
By investing in a mutual fund or ETF, investors can gain exposure to a wide variety of stocks, bonds, and other assets, thereby reducing their overall risk. This is in contrast to individual stocks or bonds, which can be much riskier investments since they rely on the performance of a single company or entity. Additionally, mutual funds and ETFs typically have lower management costs than other types of investments, making them an attractive option for investors who want to maximize their returns.The correct answer is D.Learn more about diversification: https://brainly.com/question/18647091
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The SPDR S&P 500 ETF Trust (SPY) is a widely used ETF that offers investors a way to gain exposure to the performance of the S&P 500 index, providing diversification, market performance, and liquidity. ETF stands for Exchange Traded Fund. One example of an ETF is the SPDR S&P 500 ETF Trust (SPY). SPY is a popular ETF that tracks the performance of the S&P 500 index, which represents the largest publicly traded companies in the United States.
1. Description: SPY aims to replicate the performance of the S&P 500 index, providing investors with exposure to a diversified portfolio of large-cap stocks.
2. Ticker: SPY
3. Market value: The market value of an ETF represents the total worth of all the shares outstanding. As of September 2021, the market value of SPY is approximately $450 billion.
4. Share Price: The share price of SPY is determined by dividing the market value by the number of outstanding shares. As of September 2021, the share price of SPY is around $440.
5. Strategy: SPY uses a passive investment strategy, meaning it seeks to closely replicate the performance of the S&P 500 index by holding the same stocks in the same proportions as the index.
Investors may choose to purchase SPY for several reasons:
- Diversification: SPY provides exposure to a broad range of large-cap stocks, spreading the investment risk across multiple companies.
- Market Performance: By tracking the S&P 500 index, investors can participate in the overall performance of the U.S. stock market.
- Liquidity: SPY is highly liquid, allowing investors to easily buy or sell shares on the stock exchange.
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what is the minimum subsidy needed to get boeing to enter the market?
The minimum subsidy needed to get Boeing to enter the market will depend on various factors such as the level of competition in the market, the potential profitability of the industry, and the cost of production.
Boeing, being a major player in the aerospace industry, is likely to have high production costs, and therefore, may require a substantial amount of subsidy to enter a market. Additionally, the level of competition in the market will also affect the amount of subsidy needed. If the industry is highly competitive with several players already established, Boeing may require a higher subsidy to overcome the market barriers.
Conversely, if the market has limited competition and high profit potential, Boeing may require a lower subsidy. Ultimately, the amount of subsidy needed will depend on a careful analysis of the industry and the specific market conditions.
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At the beginning of the year, ABC's Accounts Receivable balance was $93,300. During the year ABC sold $9,881,000 to its customers on credit. At the end of the year the firm's Accounts Receivable balance was $12,300. How much did ABC receive in payments from its customers over the course of the year? $9.962,000 $9.949.000 $9.970,000 $9.958,000 Unanswered Question 4 0/1 pts In its most recent financial statements, ABC reported 96.000 of net income and 285.000 of retained earnings. The retained earnings at the end of the previous year were 274,000. How much in dividends was pald to shareholders during the year? red Question 5 0/1 pts ABC started the year with 3,208,000 of net fixed assets and ended the year with 2,836,000 of net fixed assets. Depreciation expenses during the year were 445,000. How much gross fixed assets did ABC buy or sell during the year? (If they sold assets, be sure and put a negative sign in front of the answer), At the beginning of the year, ABC's Accounts Payable balance was $97.000. During the year ABC purchased $9,113,000 and at the end of the year the firm's Accounts Payable balance owed was $194,000. How much did ABC pay to its suppliers for its credit purchases over the course of the year? $9,016,000 59.013,000 59.024.000 $9.012,000 Incorrect Question 8 0/1 pts During the year, ABC purchased $9.820,000 of goods from its suppliers on credit. ABC paid its suppliers $9,875,000 and at the end of the year the firm's Accounts Payable balance owed was $24,000. What was the firm's Accounts Payable balance at the beginning of the year? 579.000 $82,000 $87,000 $83.000 The Balance Sheet: 1 x is a value shox + m/courses/12711/quizzes/68549 answered Question 9 * 0/1 pts XYZ Corporation started the year with 77,858 of inventory. During the year, the company purchased 392,135 of additional inventory, and at the end of the year, total inventory stood at 96,914. Given this information, what was XYZ's Cost of Goods Sold during the year? Incorrect Question 11 0/1 pts At the beginning of the year, ABC's Inventory balance was $51,700. During the year ABC reported the cost of Goods Sold was $6,031,000. At the end of the year the firm's reported inventory was $110.100. How much inventory did the firm purchase over the course of the year? 56,099 400 56.092.400 $6.097400 $6.103.400 Incorrect Question 12 0/1 pts DEF Company is expected to have net income of $250,000 this year. The company traditionally pays out 40 percent of its net income as a dividend DEF started the year with retained earnings of $490,500. What is their expected retained earnings at the end of the year? 640,500 880.500 340.500 20.500
a. ABC received $9,970,000 in payments from its customers over the course of the year.
b. The firm's Accounts Payable balance at the beginning of the year was $87,000.
c. XYZ's Cost of Goods Sold during the year was $426,079.
a. To calculate the payments received from customers, we need to subtract the ending Accounts Receivable balance from the sum of beginning Accounts Receivable balance and credit sales. Therefore, $9,881,000 + $93,300 - $12,300 = $9,970,000.
b. To calculate the beginning Accounts Payable balance, we need to subtract the change in Accounts Payable from the ending balance. Therefore, $194,000 - ($9,113,000 - $97,000) = $87,000.
c. To calculate the Cost of Goods Sold, we need to subtract the ending inventory from the sum of beginning inventory and inventory purchases. Therefore, $51,700 + $392,135 - $96,914 = $426,079.
Note: The other questions do not have enough information to solve them.
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Southern Fried Chicken bought equipment on January 2, 2024, for $18,000. The equipment was expected to remain in service for four years and to operate for 3,750 hours. At the end of the equipment's useful life, Southern estimates that its residual value will be $3,000. The equipment operated for 375 hours the first year, 1,125 hours the second year, 1,500 hours the third year, and 750 hours the fourth year. Read the requirements. ... Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. Begin by preparing a depreciation schedule using the straight-line method.
Straight-line: yearly depreciation expense of $4,500, accumulated depreciation of $4,500 for each year, book value of $13,500 for each year. Units-of-production: depreciation rate of $4.80 per hour, depreciation. Double-declining-balance: depreciation rate is 50%.
Depreciation is the process of allocating the cost of a long-term asset over its useful life. Straight-line, units-of-production, and double-declining-balance are three common methods used to calculate depreciation expense.
In this scenario, Southern Fried Chicken bought equipment for $18,000 that is expected to remain in service for four years and operate for 3,750 hours. At the end of its useful life, the equipment is expected to have a residual value of $3,000.
To prepare a schedule of depreciation expense, accumulated depreciation, and book value per year, we need to use each of the three depreciation methods. The straight-line method assumes that the asset depreciates evenly over its useful life.
The units-of-production method assumes that the asset's depreciation is based on the number of units it produces. The double-declining-balance method assumes that the asset depreciates at a faster rate in the early years of its life.
Using the straight-line method, the depreciation expense is calculated by dividing the cost of the asset ($18,000) by the useful life in years (4), resulting in a yearly depreciation expense of $4,500.
The accumulated depreciation is the sum of the yearly depreciation expense, resulting in $4,500 for each year. The book value per year is calculated by subtracting the accumulated depreciation from the cost of the asset, resulting in $13,500 for each year.
Using the units-of-production method, the depreciation expense is calculated by dividing the cost of the asset ($18,000) by the estimated number of units it will produce over its useful life (3,750 hours), resulting in a depreciation rate of $4.80 per hour.
The depreciation expense for each year is calculated by multiplying the depreciation rate by the number of hours the equipment operated that year. The accumulated depreciation and book value per year are calculated in the same way as with the straight-line method.
Using the double-declining-balance method, the depreciation rate is twice the straight-line rate, or 50%. The depreciation expense for each year is calculated by multiplying the book value at the beginning of the year by the depreciation rate.
The accumulated depreciation and book value per year are calculated in the same way as with the other two methods.
Overall, the different depreciation methods result in different amounts of depreciation expense, accumulated depreciation, and book value per year. It is important for businesses to consider which method is most appropriate for their assets and financial reporting purposes.
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floor covering inc. maintains inventory records using a perpetual costing system and a fifo cost flow assumption. data for june 2018, is as follows: june 1 balance 90 units at $10 june 10 purchase 110 units at $12 june 15 sale 120 units at $20 june 17 purchase 130 units at $13 june 27 sale 100 units at $20 the journal entry for the sale on june 27 will include a:
The journal entry for the sale on June 27 will include a debit to Cost of Goods Sold for $1,520 and a credit to Inventory for $1,300.
Floor Covering Inc. uses a perpetual costing system and a first-in, first-out (FIFO) cost flow assumption. This means that the cost of the first units purchased are the first to be assigned to goods sold.
On June 27, 100 units were sold at a price of $20 each, resulting in total revenue of $2,000. The cost of goods sold is calculated by multiplying the number of units sold (100) by the cost of the oldest units in inventory (the 90 units purchased on June 1 at $10 per unit and the 10 units purchased on June 10 at $12 per unit).
This gives a cost of goods sold of $1,300.
The journal entry to record the sale on June 27 will include a debit to Cost of Goods Sold for $1,520 (the calculated cost of goods sold plus the cost of the 20 units remaining in inventory) and a credit to Inventory for $1,300 (the cost of the units sold).
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which of the following sentences most appropriately describe why the pain of losing $3,000 is greater than the joy of winning $3,000 for individuals who are risk averse? check all that apply.
Risk-averse people overestimate the probability of losing money. The utility function of a risk-averse person exhibits the Iaw of diminishing marginal utility. The more wealth that risk-averse peopie have, the more satisfaction they receive from an additional dollar. The more weaith that risk-averse people have, the less satisfaction they receive from an additional dollar.
for risk-averse individuals, the pain of losing $3,000 is greater than the joy of winning $3,000 because their utility function follows the law of diminishing marginal utility, and they receive less satisfaction from each additional dollar as their wealth increases.
The sentences that most appropriately describe why the pain of losing $3,000 is greater than the joy of winning $3,000 for individuals who are risk averse are:
1. "The utility function of a risk-averse person exhibits the law of diminishing marginal utility."
2. "The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar."
1. The law of diminishing marginal utility states that as an individual consumes more of a good or service, the marginal utility they gain from each additional unit decreases. For risk-averse individuals, the pain of losing money is more significant than the joy of winning the same amount, as the marginal utility of each dollar gained is less than the marginal utility of each dollar lost.
2. The second sentence highlights that risk-averse individuals value each additional dollar less as their wealth increases. This means that while they may still experience some satisfaction from winning $3,000, it will be less significant than the dissatisfaction they feel from losing $3,000, due to the diminishing marginal utility.
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Government wants to maximize its tax revenue and it can only place a $2 per unit tax on one of two goods. It should place the tax (on the production) of the good whose demand curve has the a. shorter length b. lower price elasticity of demand. c higher price elasticity of demand. d. greater length
The government should place the tax on the production of the good whose demand curve has the lower price elasticity of demand. The correct answer is option b.
Price elasticity of demand measures the responsiveness of demand to changes in price. When the price elasticity of demand is low, it means that consumers are relatively insensitive to changes in price, and a tax is less likely to cause a significant decrease in demand.
Therefore, the government can place a higher tax on the production of the good with a lower price elasticity of demand without significantly reducing the demand for that good.
On the other hand, if the demand curve has a higher price elasticity of demand, it means that consumers are more sensitive to changes in price, and a tax is more likely to cause a significant decrease in demand.
Therefore, the government may not be able to generate as much tax revenue by placing a tax on the production of a good with a higher price elasticity of demand.
The length of the demand curve is not directly related to the price elasticity of demand, so it is not a determining factor in deciding where to place the tax.
The correct answer is option b.
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Dundee Co. reported the following for the current year:
Net sales $ 92,800
Cost of goods sold $ 76,000
Beginning balance of total assets $131,000
Ending balance of total assets $101,000
compute total assets turnover
The total assets turnover ratio for Dundee Co. for the current year is 0.8.
The total assets turnover ratio measures how efficiently a company is using its assets to generate revenue. It is calculated by dividing the net sales by the average total assets of the company.
The formula for the total assets turnover ratio is:
Total assets turnover ratio = Net sales / Average total assets
To calculate the average total assets, we need to add the beginning and ending total assets and divide by 2.
Average total assets = (Beginning total assets + Ending total assets) / 2
Average total assets = ($131,000 + $101,000) / 2
Average total assets = $116,000
Now we can calculate the total assets turnover ratio:
Total assets turnover ratio = Net sales / Average total assets
Total assets turnover ratio = $92,800 / $116,000
Total assets turnover ratio = 0.8.
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A medical equipment company wants to create a budget that is practical and that will enable its managers to make more accurate comparisons between actual costs and budgeted costs. thus, the company creates a budget that is developed over a range of possible sales levels and is designed to show the appropriate budgeted level of costs for each different level of sales. given this information, which budgets has the company created?
The medical equipment company has created a flexible budget that allows for variations in sales levels and shows the appropriate budgeted costs for each level of sales.
This type of budget is practical and enables managers to make accurate comparisons between actual and budgeted costs, helping them to monitor performance and make informed decisions.
Based on the information provided, the medical equipment company has created a flexible budget. A flexible budget is developed over a range of possible sales levels and is designed to show the appropriate budgeted level of costs for each different level of sales.
This enables managers to make more accurate comparisons between actual costs and budgeted costs, making it a practical choice for the company.
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fill in the blank. after struggling with the accounting training, aaron is unsure whether he can complete the end-of-year financial reporting with no errors in the time allotted. in this case, aaron is low on the___element of expectancy theory.
After struggling with the accounting training, Aaron is unsure whether he can complete the end-of-year financial reporting with no errors in the time allotted. In this case, Aaron is low on the "expectancy" element of expectancy theory.
Expectancy theory is a motivational theory that suggests that people are motivated by the belief that their effort will lead to high performance, and high performance will lead to desired outcomes or rewards. The theory is based on three key elements: expectancy, instrumentality, and valence. Expectancy is the belief that effort will lead to high performance, instrumentality is the belief that high performance will lead to desired outcomes, and valence is the value a person places on the outcomes or rewards.In Aaron's case, he is low on the expectancy element because he is unsure whether his effort will lead to high performance.
He has struggled with the accounting training, and this has reduced his confidence in his ability to complete the end-of-year financial reporting with no errors in the time allotted. As a result, he may not be motivated to put in the necessary effort to complete the task, and he may not believe that his effort will lead to high performance.To increase Aaron's motivation and improve his expectancy, it may be helpful to provide him with additional training or support.
This could include one-on-one coaching, additional resources or tools, or more time to complete the task. By improving his skills and confidence, Aaron will be more likely to believe that his effort will lead to high performance, and he will be more motivated to complete the task with no errors in the time allotted.
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one reason a monopoly forms is because market demand is such that it takes one firm to produce the quantity necessary to realize low unit costs. this is known as
The situation where a monopoly forms due to market demand that requires a single firm to produce the necessary quantity to achieve low unit costs is known as natural monopoly.
Natural monopoly occurs when the economies of scale of production are so significant that they create a barrier to entry for other firms trying to enter the market.
As a result, the single firm that is able to achieve low unit costs due to economies of scale can maintain its dominance in the market and prevent competition.
For example, consider the market for electricity distribution. The cost of building and maintaining the infrastructure required for electricity distribution is very high, and it requires a significant amount of capital investment.
The high fixed costs involved in this industry create a natural monopoly, as it is not financially feasible for multiple firms to enter the market and duplicate the same infrastructure.
In this scenario, the single firm that is able to achieve low unit costs due to economies of scale can maintain its dominant position in the market, resulting in a natural monopoly.
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Investors expect to receive a dividend yield, , plus a capital gain, g, for a total expected return. In (-Select- recessions, equilibrium, upturn) this expected return is also equal to the required return. It's easy to calculate the dividend yield; but because stock prices fluctuate, the yield varies from day to day, which leads to fluctuations in the DCF cost of equity. Also, it is difficult to determine the proper growth especially if past growth rates are not expected to continue in the future. However, we can use growth rates as projected by security analysts, who regularly forecast growth rates of earnings and dividends.
Which method should be used to estimate rs? If management has confidence in one method, it would probably use that method's estimate. Otherwise, it might use some weighted average of the three methods. Judgment is important and comes into play here, as is true for most decisions in finance.
Quantitative Problem: Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D1, to be $2.00 and it expects dividends to grow at a constant rate g = 4.4%. The firm's current common stock price, P0, is $27.00. The current risk-free rate, rRF, = 4.8%; the market risk premium, RPM, = 6.1%, and the firm's stock has a current beta, b, = 1.3. Assume that the firm's cost of debt, rd, is 8.17%. The firm uses a 4.1% risk premium when arriving at a ballpark estimate of its cost of equity using the bond-yield-plus-risk-premium approach. What is the firm's cost of equity using each of these three approaches? Round your answers to two decimal places.
CAPM cost of equity: %
Bond yield plus risk premium: %
DCF cost of equity: %
What is your best estimate of the firm's cost of equity?
(-Select-The best estimate is the highest percentage of the three approaches., The best estimate is the average of the three approaches., The best estimate is the lowest percentage of the three approaches.)
The best estimate is the average of the three approaches.
To estimate the cost of equity, three approaches can be used: the CAPM, bond yield plus risk premium, and the DCF model.
The CAPM formula is ke = rRF + (RPM x beta), where rRF is the risk-free rate, RPM is the market risk premium, and beta is the stock's volatility relative to the market.
The bond yield plus risk premium approach estimates the risk premium based on the difference between the company's bond yield and the risk-free rate.
The DCF model estimates the cost of equity by discounting future cash flows to the present.
Using the given values, the CAPM cost of equity is 12.37%, the bond yield plus risk premium approach cost of equity is 11.99%, and the DCF cost of equity is 12.32%. The best estimate of the firm's cost of equity would be the average of the three approaches, which is 12.23%.
In conclusion, to estimate the cost of equity, various approaches can be used, and the best estimate can be calculated by taking an average of the estimates or using judgment based on the management's confidence in a particular method.
To calculate the cost of equity using the three approaches, we need to use the given information:
1. CAPM cost of equity:
rs = rRF + (RPM × b)
rs = 4.8% + (6.1% × 1.3)
rs = 4.8% + 7.93%
rs = 12.73%
2. Bond yield plus risk premium:
rs = rd + premium
rs = 8.17% + 4.1%
rs = 12.27%
3. DCF cost of equity:
Dividend yield = D1 / P0
Dividend yield = $2 / $27
Dividend yield = 0.0741 (7.41%)
rs = Dividend yield + g
rs = 7.41% + 4.4%
rs = 11.81%
Now that we have the cost of equity for each approach, we can determine the best estimate.
The best estimate is the average of the three approaches:
Best estimate = (12.73% + 12.27% + 11.81%) / 3
Best estimate = 36.81% / 3
Best estimate = 12.27%
The best estimate is the average of the three approaches.
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carlson's (a sole proprietor) general business credit for the current year is $84,000. his net income tax is $190,000, tentative minimum tax is $175,000, and net regular tax liability is $185,000. he has no other tax credits. determine the amount of carlson's general business credit for the year. carlson's general business credit allowed for the year is $fill in the blank 1 and his unused general business credit of $fill in the blank 2 may be carried back or forward.
Carlson's general business credit allowed for the year is $84,000 and his unused general business credit of $0 may be carried back or forward.
The general business credit is a non-refundable tax credit that can be used to reduce a taxpayer's regular tax liability and alternative minimum tax (AMT) liability. In this case, Carlson's net income tax liability of $190,000 is greater than his tentative minimum tax liability of $175,000, so he does not have to pay AMT.
His net regular tax liability is $185,000, which can be reduced by the general business credit of $84,000. Since the credit is non-refundable, any unused portion cannot be refunded but can be carried back one year or forward for up to 20 years to reduce future tax liabilities.
Since Carlson has no unused general business credit, he cannot carry it forward or backward.
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The seller is to performance obligation as the buyer is to
A) the transfer of control over goods or services.
B) the obligation to pay the transaction price.
C) an enforceable right to receive consideration.
D) the enforcement of the contract.
The Correct option is A) the transfer of control over goods or services.
In accounting, a performance obligation is an obligation that a company has to transfer goods or services to a customer. When a seller fulfills its performance obligation, it transfers control of the goods or services to the buyer.
Therefore, the answer is A) the transfer of control over goods or services. In contrast, the buyer's obligation is typically to pay the transaction price, which is the amount agreed upon in the contract between the buyer and the seller. This is not the same as a performance obligation. While the buyer may have an enforceable right to receive consideration, this is not necessarily the same as their obligation in the transaction. The enforcement of the contract is also not the same as the buyer's obligation.
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24. Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of accretion. true or false
The statement "Costs of normal shrinkage and normal continuous losses in a process costing environment are handled by the method of accretion" is false because the method of accretion is not used to handle costs of normal shrinkage and normal continuous losses in a process costing environment.
In a process costing environment, the costs of normal shrinkage and normal continuous losses are typically handled by the method of proration, not accretion. Proration involves allocating the costs of the lost units to the remaining units in the process, which helps to distribute the expenses fairly and accurately among the produced units.
Accretion refers to the gradual increase in the value of an asset, which is not related to handling shrinkage or continuous losses in process costing.
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a(n) resume emphasizes a candidate's skills and capabilities, but many employment professionals are suspicious of this type.
A functional resume emphasizes a candidate's skills and capabilities rather than their work experience. While it can be helpful in highlighting relevant skills, many employment professionals are suspicious of this type of resume.
This is because it often lacks a clear chronological work history, making it difficult for employers to assess a candidate's career progression and experience. Additionally, some employers may see it as an attempt to hide gaps or inconsistencies in a candidate's employment history.
Ultimately, it's important for job seekers to carefully consider the pros and cons of using a functional resume and to tailor their approach based on the specific job and industry they are targeting.
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based on recent history, an investor would have a lower risk level with a portfolio consisting of:group of answer choicesall bonds
Based on recent history, an investor would have a lower risk level with a portfolio consisting of all bonds. Bonds are considered to be less risky investments compared to stocks.
This is because bonds represent a debt obligation of a company or government entity, whereas stocks represent an ownership stake in a company. In the event of a company's bankruptcy, bondholders are paid before stockholders. Additionally, bonds typically provide a fixed rate of return, which makes them a more predictable investment.
Furthermore, during times of market volatility and economic uncertainty, investors often flock to bonds as a safe haven investment. This can lead to an increase in demand for bonds, which can drive up their prices and lower their yields. As a result, investors who hold bonds may see less volatility in their portfolio and more stable returns.
However, it's important to note that no investment is entirely risk-free. Even bonds carry some level of risk, such as the risk of default or inflation risk. Therefore, investors should carefully consider their risk tolerance and investment objectives before constructing a portfolio consisting solely of bonds.
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dell computer has 10% of a $250 billion market. dell is the low-cost leader and realizes a 20% margin on sales, and marketing, sales and administrative expenses equaling 10% of sales. what is dell's net marketing contribution?
To calculate Dell's net marketing contribution, we need to consider the information given in the question.
1. Dell has 10% of a $250 billion market, which means its market share is 10% of the total market value. So, Dell's market share is $250 billion * 10% = $25 billion.
2. Dell realizes a 20% margin on sales, which means that 20% of the sales revenue is profit. To calculate the sales revenue, we can divide Dell's market share by the profit margin:
Sales Revenue = Market Share / Profit Margin
Sales Revenue = $25 billion / 20% = $125 billion
3. Marketing, sales, and administrative expenses equal 10% of sales. To calculate the total expenses, we can multiply the sales revenue by the expense percentage:
Expenses = Sales Revenue * Expense Percentage
Expenses = $125 billion * 10% = $12.5 billion
4. Finally, the net marketing contribution can be calculated by subtracting the expenses from the sales revenue:
Net Marketing Contribution = Sales Revenue - Expenses
Net Marketing Contribution = $125 billion - $12.5 billion = $112.5 billion
Therefore, Dell's net marketing contribution is $112.5 billion.
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which of the following ratios compares the net income to the average total assets? group of answer choices earnings per share
The ratio that compares net income to average total assets is called return on assets (ROA).
ROA is a measure of a company's profitability and is calculated by taking the net income divided by the average total assets. It is a measure of how efficiently a company is using its assets to generate net income, which is the net profit after all expenses are taken into account.
This ratio is important because it measures the effectiveness of a company in generating profits from its assets.
It is also a key metric used by investors to evaluate the performance of a company, as it can help investors determine if the company is using its assets efficiently and effectively.
Ratios compares the net income to the average total assets is return on assets (ROA).
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The ratio that is used to compare net income to the average total assets is called Return on Assets (ROA). Here option C is the correct answer.
ROA is a financial ratio that measures how efficiently a company uses its assets to generate profits. It is calculated by dividing net income by the average total assets of a company over a specific period.
ROA is an important indicator of a company's profitability and financial health. It tells investors how much profit a company is generating for every dollar of assets it owns. A high ROA indicates that a company is using its assets effectively to generate profits, while a low ROA suggests that the company may not be using its assets efficiently.
Comparing ROA between companies in the same industry can help investors identify which companies are more profitable and efficient in their use of assets. It is important to note that ROA should not be used in isolation but should be considered along with other financial ratios and metrics to get a more comprehensive understanding of a company's financial health.
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Complete question:
Which of the following ratios is used to compare net income to the average total assets?
A) Return on Equity
B) Return on Investment
C) Return on Assets
D) Gross Profit Margin
A way to gather consumers' opinions of concepts is _____, where consumers in shopping centers are approached and asked to evaluate rough ads via questionnaires, rating scales, and/or rankings.
A. laboratory testing
B. Delphi groups
C. focus groups
D. mall intercepts
E. consumer juries
The answer to the question is E. consumer juries. Consumer juries are a type of research technique that involves gathering consumers' opinions of concepts by presenting them with rough ads or product prototypes and asking them to evaluate them using questionnaires, rating scales, and/or rankings.
The consumers in this case are approached in shopping centers or other public places and are asked to participate in the study. Consumer juries are typically composed of a small group of individuals who are representative of the target market for the product or service being evaluated.
They are given the opportunity to evaluate the concepts and provide feedback on what they like and dislike about them. This feedback is then used to refine the concept or product before it is launched in the market.
Consumer juries are a useful tool for companies to gain insights into the preferences and opinions of their target consumers and to develop products and services that meet their needs and expectations.
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