The Price of the bond is $54,055.43.
Given in the Question:
Face value : $50,000
state rate : 10%
term : 5 years, semi-annual
market rate : 8%
Price of Bond = (Present value of face) + (Present value of coupons)
Present face value = 50,000/1.04¹⁰
Present face value = $33,778.20
Coupon payments:
Coupon payments is given as
annual payment = 10% of 50,000 = $5,000
semi - annual payment = ¹/₂ × $5,000 = $2,500
Present value of coupons = 2,500/0.04(1 - 1/1.04¹⁰}
Present value of coupons = $20,277.23
Price of Bond = (Present value of face) + (Present value of coupons)
= $33,778.20 + $20,277.23
= $54,055.43
Hence, the price of bond is $54,055.43
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a sales manager notices that all the accounts in one particular geographic territory have reduced their orders by 15%. she researches the issue and discovers that government funding in that state has been cut by 15%. when the manager begins to look for a way to increase sales despite the funding cuts, she is engaging in which managerial activity?
So we've discovered an issue, and we need to figure out how to solve it through increasing revenue. So seeking for a strategy to solve a problem is the core managerial function.
Revenue is the money created by routine business activities, computed as the average sales price multiplied by the number of units sold. It is the top line (or gross income) figure from which costs are reduced to determine net income. On the income statement, revenue is sometimes referred to as sales. Revenue, often known as sales or the top line, is the money earned through routine corporate operations. Operating income is defined as revenue less operating expenses. Non-operating revenue is derived from secondary sources and is occasional or nonrecurring.
Non-commercial entities such as governments, nonprofits, and individuals also declare revenue, albeit the formulas and sources differ. Revenue is simply the selling profits, whereas income or profit includes the expenses incurred in order to create revenue and declare net earnings.
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n a perpetual inventory system, a return of defective merchandise by a purchaser is recorded by crediting a. purchases b. purchase returns and allowances c. purchase discounts d. inventory
A return of faulty items by a purchaser is documented in a perpetual inventory system by crediting inventory. Thus, the right option is (d.) inventory.
What is perpetual inventory?In business and accounting, a perpetual inventory system or continuous inventory system refers to inventory systems in which inventory amount and availability information is updated on a continuous/real-time basis as part of doing business. In most cases, this is achieved by linking the inventory system with order entry and, in the case of retail, the point of sale system. In this situation, book inventory would be identical to, or nearly identical to, real inventory.
Perpetual inventory systems are nonetheless subject to mistakes owing to overstatements or understatements caused by theft, breakage, scanning errors, or untracked inventory movements, resulting in chronic replenishment problems.
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a supervisor should forecast group of answer choices what type of employees will be needed to staff the department in the future. the direction of the organization. the future economic trends. how the electronic record will affect the department in 15 years.
A supervisor should forecast what type of employees will be needed to staff the department in the future.
Operational efficiency is primarily a measure of how effectively profits are generated in relation to operating expenses. The profitability of a business or investment increases with operational efficiency. For the same or less money than an alternative, the entity can produce more income or returns.
When transaction costs and fees are reduced in the financial markets, operational efficiency happens. Alternatively referred to as an "internally efficient market," a market that is operationally efficient.
Investment transaction costs are typically the focus of operational efficiency in the financial markets. The operational effectiveness of the financial markets is comparable to the operational effectiveness of business procedures for manufacturing. When a transaction has a high margin, it is operationally efficient, meaning that an investor will pay the least amount of money and make the most money.
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technology companies, software companies, and internet-based companies are good illustrations of organizations with multiple choice achievement-oriented cultures. integrative cultures. diverse cultures. adaptive cultures. inwardly focused cultures.
Companies in the technology, software, and internet sectors are excellent examples of firms with adaptable cultures. The right response in this case is option C.
A corporate culture that is adaptable enables an organization to change in response to demand from both inside and outside the company. The employees will be more resistant to stress if the business culture constantly fosters a pleasant psychological environment.
Cultural adaptation can take many forms, such as learning the greetings of the new culture, picking up phrases and words from the new culture, understanding clothing rules in the new culture, and learning how to use the goods and services available in the new society.
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When responding to a message, what should a professional always do? choose 2 answers. question 3 options: end on a positive note. respond within 24 hours. throw the company under the bus only if they are guilty. answer the most important questions.
When responding to a message, a professional always does these: answer the most important questions, and end on a positive note. The most important questions always come first and have to be the first attention because that's the reason someone is messaging you. A positive note is to show that you are an attentive and positive professional.
Responding messagesResponding to messages as a professional is really important to maintain a good relationship with the clients. In detail, you can respond to a message with a salutation as the opening, followed by the body of the message and closed by conclusion in a positive note.
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kava botanicals, a boutique retailer that sells high-end makeup and accessories, is owned by two makeup manufacturers. kava botanicals is an example of which type of strategic alliance?
Two makeup companies own kava botanicals, a boutique store that sells high-end cosmetics and accessories. An illustration of a joint venture-style strategic collaboration is kava botanicals.
What exactly Is a Joint Venture (JV)?A joint venture (JV) is a type of business partnership wherein two or more parties concur to combine their resources in order to finish a specific task. This work could mark the beginning of a brand-new project or any other kind of business venture.
All members of a JV share in the profits, losses, and expenses associated with the JV. But the venture exists independently of the participants' other business ventures. A JV can be established using any legal structure, including corporations, partnerships, limited liability companies (LLCs), and other business entities, despite the fact that it is a partnership in the traditional sense.
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ignoring taxes and all else held constant, on the , the market value of a stock should decrease by the amount of the dividend.
The market value of a stock should drop by the dividend amount on the dividend declaration date, with taxes and other factors held constant.
Which of the following is a defense of the company's low dividend policy?Until the gain is realized, the tax on capital gains is delayed. A low dividend tax will be preferred by the stockholders.
The constant dividend payment ratio has which of the following issues?The issue with the constant dividend payout ratio is that the dividend's monetary value changes year over year. One possible justification for dividend payments is that they indirectly lead to a closer monitoring of management's investment activity, which reduces agency costs.
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assume the following scenario: the price of the product is $20/unit. the marginal cost is also $20. the average variable cost is $25, while the average total cost is $27. what would you recommend this perfectly competitive firm to do? question 7 options:
A firm's average variable cost (AVC) in economics is calculated by dividing its variable costs by the volume of output it produces.
What is average variable cost:
The entire variable cost per unit of production is known as the average variable cost (AVC). Total output is subtracted to get the total variable cost. Total variable cost (TVC) refers to all expenses, including labor and supplies, that change depending on output. The simplest method to tell if a cost is variable is to look at if it varies as the output does.
The AVC will be used by businesses that aim to maximize profits to decide whether to halt short-term manufacturing. Given the production they are creating, if the price they receive for the good exceeds the AVC, they are at least paying all variable costs and some fixed costs. Fixed costs are expenses incurred that are fixed at a specific price regardless of how much is produced; they do not change with production. The rent on the building where the commodity or service is produced or rendered is the finest illustration. The rent will always be the same, regardless of how many units you generate or clients you service.
You would be better off continuing production as long as the price is higher than the AVC and covers some of the fixed costs. The company might opt to halt production in the short term if the price falls below the AVC because it no longer covers any fixed expenses or all variable costs. Therefore, the company would like to only pay the fixed costs rather than incur any variable expenditures.
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question content area ending inventory is made up of the oldest purchases when a company uses a.last-in, first-out b.retail method c.weighted average cost d.first-in, first-out
When a company uses b. Last-in, first-out (LIFO) ending inventory is made up of the oldest purchases. It is because the assumption in LIFO is the most recent products in a company's inventory have been sold first.
FIFO (First In First Out) and also LIFO (Last in, first out) accounting generally can be described as a methods used in financial and managing inventory matters involving the amount of money a company has to have tied up within inventory of feedstocks, produced goods, components, raw materials, and also parts.
Last in, first out or known as LIFO generally can be described as a method used to account for inventory. The inventory that records in the LIFO is the most recently produced items as sold first. There are assumption in the last in first out or LIFO, it is assumes that those costs is used instead and the most recent products in a company's inventory have been sold first.
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economic profit is the difference between a. total revenue and the opportunity cost of all of the resources used in production. b. total revenue and the implicit costs of using owner-supplied resources. c. accounting profit and the opportunity cost of the market-supplied resources used by the firm. d. accounting profit and explicit costs.
An economic profit or loss is the difference between the revenue received from the sale of an output and the costs of all inputs used, as well as any opportunity costs.
The difference between the revenue generated by the sale of a product and the prices of all inputs used, as well as any opportunity costs, is known as an economic profit or loss. Opportunity expenses and explicit costs are subtracted from earned revenues to determine economic profit. Opportunity costs are a type of hidden expenses that are decided by management and change depending on various events and viewpoints.
Accounting profit and economic profit are frequently examined together in analyses. The profit a corporation displays on its income statement is known as accounting profit. Accounting profit is a component of the necessary financial transparency for a corporation and measures actual inflows versus outflows. Contrarily, economic profit is not disclosed on a company's financial statements.
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preferred products has issued preferred stock with an annual dividend of $7.26 that will be paid in perpetuity. a. if the discount rate is 11%, at what price should the preferred sell? (round your answer to 2 decimal places.) b. at what price should the stock sell 1 year from now? (round your answer to 2 decimal places.) c. what are the (i) the dividend yield; (ii) the capital gains yield; (iii) the expected rate of return of the stock? (enter your answers as a whole percent.)
Preferred products have issued preferred stock with an annual dividend of $7.26 that will be paid in perpetuity are:
a. Current price = DIV1 / r
= $7.26 / 0.11
= $66
b. Future price
= $7.26 / 0.11
= $66
c. Dividend yield = Annual dividend / Stock price
= DIV1 / P0
= $7.26 / $66
= .11, or 11%
Capital gains yield
= (P1 − P0) / P0
= ($66 − $66) / $66
= .00, or 0%
Expected rate of return
= Dividend yield + Capital gains yield
= 11% + 0%
= 11%
A perpetuity duration applies to destiny pursuits in assets (that is, interests that do not take effect right away) which are issued to the guideline against perpetuities. The perpetuity period can be A prescribed statutory duration of a hundred twenty-five years, beneath the Perpetuities and Accumulations Act 2009.
In exercise, on the cease of that perpetuity period, the trustees' dispositive powers quit, then consider comes to a quit and the considered assets are held according to the default provisions i.E. The future interests vest.
The purpose of the rule in opposition to perpetuities was and is to save your property pursuits from being tied up for generations after a trustor's dying. As a consequence, a provision in a considers that offers a property interest to a person who could be born several generations within the future will commonly be invalid below the rule.
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the graph below illustrates a binding price ceiling in both the long and short run. we can see that the shortage caused by the binding price ceiling is larger in the long run than it is in the short run. another effect of binding price ceilings is the emergence of a black market. the price of the good in the black market can be found using a supply and demand diagram. first find the black-market price in the short run for this market. then find the black-market price in the long run for this market. what happens to the black-market price between the short run and the long run?
Greater over the long term because demand and supply tend to be more flexible over time.
Is there a shortage caused by a binding price ceiling?When a price ceiling is set below the market equilibrium price, this creates a binding price ceiling. Because there is more demand than there is supply at the price ceiling, there will be a shortage as a result of a binding price ceiling.
What long-term effects does a price ceiling have?While price caps make staples more affordable for consumers in the short term, they frequently come with long-term drawbacks like product shortages, additional costs, or lower quality. Price ceilings, according to economists, reduce an economy's deadweight and make it less efficient.
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If nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on?.
If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on market share.
In the field of business, market share can be described as the particular percentage that a company makes in generating revenue for a certain product amongst all of the market for that product. It is a comparison of the output that a company has made by selling a product in comparison to other companies.
In the scenario above, Nabisco has made a market share objective to be the person who sells one out of three crackers in the whole worldwide market.
Although a part of your question is missing, you might be referring to this question:
If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on?
-marker revenue
-market share
-GDP
-market output
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three years ago, you purchased a corporate bond that pays 4.30 percent. the purchase price was $1,000. what is the annual dollar amount of interest that you receive from your bond investment?
The annual interest earned on the bond is $43
A sort of financial product sold to investors is a corporate bond, which is issued by a business. The investor receives a predetermined amount of interest payments at either a fixed or variable interest rate in exchange for providing the firm with the money it requires. The bond "reaches maturity" when it stops making payments and the initial investment is refunded. High-quality corporate bonds are regarded as a conservative and generally safe investment. Bonds are frequently included in portfolios being built by investors to balance out riskier investments like growth stocks.
Computation of interest earned per annum:
Interest earned per annum = Face value of the bond*Interest rate
= 1000*4.3%
= $43
So, interest earned is $43 per annum
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apple used informative television ads to highlight the benefits of its iphone over rival cell phones that used the android operating system. what type of advertising was this?
Apple used informative television ads to highlight the benefits of its iPhone over rival cell phones that used the android operating system. Competitive advertising was shown here.
Companies utilize competitive advertising to set themselves apart from rivals. In this strategy, two brands are placed next to one another to demonstrate to consumers how they differ. Some businesses specifically mention the rival, while others merely refer to them as "the major competitor" or "brand X."
Comparative advertising, also known as combative advertising, refers to a type of advertisement in which a certain product or service directly names a rival in order to demonstrate why the rival is inferior to the product naming it.
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if a company failed to make the end-of-period adjustment to move the amount of revenue that was earned from the unearned revenue account to the revenue account, this omission would cause:
If a company failed to make the end-of-period adjustment to remove from the unearned management fees account the amount of management fees that were earned, this omission would cause an overstatement of liabilities.
Liabilities are owing debts or legal responsibilities to another individual or business. Liabilities, then, are future forfeitures of economic gains that an entity must make to other entities as a result of previous occurrences or previous transactions.So,if a company failed to make the end-of-period adjustment to remove from the unearned management fees account the amount of management fees that were earned, this omission would cause an overstatement of liabilities.
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the operating expense ratio: question 1 options: a) shows the percentage of potential gross income consumed by operating expenses b) should reflect the cost of mortgage financing c) highlights the relationship between net operating income and operating expenses d) expresses operating expenses as a percent of effective gross income.
The operating expense ratio expresses operating expenses as a percent of effective gross income.
The operational expense ratio (OER), which is used in real estate, is a calculation of a property's running costs in relation to its income. It is determined by dividing the operating expense of a property (less depreciation) by the total operating income.
OER is used to compare the costs of properties with similar characteristics. Red flags that can prevent an investor from buying a certain property include greater running costs, maintenance costs, or utility costs.
The optimal OER ranges from 60% to 80%. (although the lower it is, the better).
Because it indicates that expenses are being kept to a minimum in relation to revenue, a lower operating expense ratio (OER) is more appealing to investors.
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as a result of the rapid pace of innovation: product life cycles have become shorter. product development cycles have become significantly longer. market segmentation has reduced. product obsolescence has slowed down.
As a result of the rapid pace of innovation, Option(a) the product life cycles have become shorter.
Explain product life cycle.The product life cycle is the period of time that elapses between the day a product is first introduced to the market and the day it is removed from the market. There are four stages in a product's life cycle: introduction, growth, maturity, and decline.
In addition to determining advertising schedules, price points, expanding to new product markets, and redesigning packaging, product life cycles assist management and marketing professionals in deciding how to create new products. Product life cycle management refers to these strategic methods of supporting development. New products can also determine when older ones should be replaced by updated ones.
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At the wholesale club, one can buy toothpaste at a lower unit price if one buys six tubes of toothpaste at once. This is an example of ____, which ____ producer surplus.
At the wholesale club, one can buy toothpaste at a lower unit price if one buys six tubes of toothpaste at once. This is an example of imperfect price discrimination, which increases producer surplus.
In the field of business, price discrimination can be described as a value or cost of a product that is changed by the producer based on his terms or understandings. An imperfect price discrimination can occur if a producer lowers the price of a product on the condition that the consumer buys more or a fixed number of product rather than purchasing just one.
A producer surplus can be described as the profit that is gained by the producer after selling a product. If through imperfect price discrimination, more products are sold, then the producer surplus will increase.
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your first job is in hotel management and recently you were promoted to hotel manager for a large convention hotel in downtown new orleans. answer the following questions given the information below for one day. what is the total contribution to profit and overhead?
$41,000 is the total contribution to profit and overhead for one day in hotel in downtown new orleans.
given,
Contribution by Business Hotel Customers is
= Sales - variable cost
= (100-25) ×280
= $21,000
Now
Contribution by Convention Association Hotel Customers = (Sales - variable cost)*400
= (75 - 25)× 400
= $20,000
Total contribution to profit and overhead is
= $21,000 + $20,000
= $41,000
$41,000 is the total contribution to profit and overhead.
the complete question is:
Your first job is in hotel management and recently you were promoted to Hotel Manager for a large convention hotel in downtown New Orleans. Answer the following questions given the information below for one day. What is the total contribution to profit and overhead?
Characteristic/Variable Business Hotel Customers (B) Convention Association Hotel Customers (C)
Customers for this day (D) 280 room nights rented (DB) 400 room nights rented (DC)
Average price/room night (VC) $100 (PB) $75 (PC)
Variable cost/room night (VC) $25 $25
Maximum price/room night (called the rack rate) $150 $110
Maximum number rooms available for sale this day 300 room nights available 700 room nights available
a. $39,500
b. $44,170
c. $38,750
d. $41,000
e. $34,567
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denise has asked you to recommend the addition of a benefit that could help minimize employee turnover. which type of benefit do you suggest? check all that apply.
We can suggest, first Motivates them, Providing compensation to employee. High compensation makes workers feel satisfied with their work and motivates them to work more.
How can compensation motivate employees?Employees receive a wage as payment for completing all duties and as a reliable source of income. They are encouraged to accomplish and surpass their goals by the incentive, which can be a bonus for some people and commission for salespeople, and it also gives them the chance to earn more money.Motivated workers increase the value of a position. Greater job satisfaction, or workers who are pleased in their positions and are less likely to change occupations, can be the result of fair salary and benefits.Benefits and compensation are crucial components of human resource management because they support employee retention.To learn more about compensation refer to:
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what is the total amount of high-quality energy available after the energy needed to make it available is subtracted?
Net energy is the total amount of high-quality energy available after the energy needed to make it available is subtracted.
A facility's or technology's net energy is the difference between the energy it produces and the energy needed to build and run it. The energy needed to generate all inputs, such as steel, concrete, etc., is included in the required energy.
Energy required minus energy produced equals positive net energy, which is larger than 1. The latter is also known as the energy return on investment or net energy ratio.
Analysis of net energy makes it possible to compare various energy sources and track changes over time as we access farther-flung, more complex sources of energy.
Though generally simple to understand, the conceptual and bookkeeping aspects of net energy analysis are complex (e.g., how to compare various forms of energy like liquid fuels and electricity, or whether to add the energy needed to support research and development?).
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the packing in a cooling tower that cools condensing water for a power plant progressively deteriorates and results in gradually rising costs due to reduced plant efficiency. these costs are treated as lump sums at the end of the year, as shown in fig. the cost is zero for the first year and then increases $1000 per year until the packaging is 16 years old, when replacement is mandatory. at a point, 8 years into the life of the packing (just after the $7000 annual cost has been assessed), a decision is to be made on the plan for the next 8 years, i.e., whether to replace the packing or to continue with the existing packing. money can be borrowed at 9 percent interest, compounded annually. what is the maximum amount that could be paid for the packing in order to justify its replacement?
$ 44278.55 is the maximum amount that could be paid for the packing in order to justify its replacement.
After replacement at EOY 8, annual costs
will begin at 1000 again from EOY 10
and then keep increasing
The maximum amount to be paid = Present
value of savings at EOY 8 = 8000 * (P/A,
9%,8) + 1000 * (P/G, 9%,8) - 1000 * (P/G,
9%, 8)
= 8000 * 5.534819
= 44278.55 ~ 44279
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true or false: under the currency board in place in hong kong, the government is limited in its ability to print money.
The statement is True. Under the currency board in place in hong kong, the government is limited in its ability to print money.
Government formation is the system in a parliamentary device of choosing a high minister and cupboard contributors. If no birthday party controls a majority of seats, it could also involve identifying which parties might be part of a coalition government.
There are numerous distinctive forms of government for the duration of the sector. The main kinds of authorities include autocracy, aristocracy, and democracy. The autocracy-One individual holds absolute strength within the united states.
In precis, proper governance pertains to the political and institutional methods and results that are essential to gain the goals of improvement. The genuine take look at 'suitable' governance is the degree to which it provides the promise of human rights: civil, cultural, economic, political, and social rights.
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Advertising a low-priced product in order to lure customers into buying a high-priced product is called what?.
Advertising a low-priced product in order to lure customers into buying a high-priced product is called Bait and switch
An ethically dubious sales strategy known as "bait and switch" entices clients with promises of high quality or low pricing on products that ultimately prove to be out of stock in order to upsell them on a more expensive, similar alternative. Despite the fact that it also occurs in other situations, it is regarded as a type of retail sales fraud. When a seller makes an alluring but phony offer to sell a good or service that the seller does not truly plan to sell, it is known as "baiting and switching."
A Potential Bait and Switch: Warning Signs
If a business provides you with a good or service at a significant discount and without any conditions.If a seller inquires about payment information too soon.If a vendor starts offering justifications for why a product that has been marketed is unavailable or costs more than stated.Learn more about Bait and switch here:
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stock valuation and pe the dahlia flower co. has earnings of $3.64 per share. the benchmark pe for the company is what stock price would you consider appropriate? what if the benchmark pe were 21?
The stock price will be $76.44 when the benchmark PE is given as 21.
What is PE?Private equity (PE) is the term for capital investments made in privately held businesses. Successful PE managers can make millions of dollars a year, and the majority of PE firms accept certified investors and those who are regarded as high-net-worth individuals.For the benefit of the fund's investors, private equity firms invest the money they raise by often acquiring controlling shares in businesses. The private equity firm then collaborates with corporate executives to increase the value of the companies, known as portfolio companies, in order to sell them at a profit in the future.Here given,
PE = 21 .
EPS = $ 3.64
We know that ,
PE = Price / EPS
By substituting the values,
21 = Price / 3,64
Price = 21 x 3.64
Price = $76.44 .
The price will be $76.44 when the benchmark PE is 21.
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discuss and name two actual standards numbers/descriptions required for the auto industry supply chain
Two actual standard numbers required for the auto industry supply chain are IATF 16949 and AEC-Q100.
Manufacturers must adhere to strict industry standards throughout the production and testing processes in order for a component to be certified for use in automobiles. IATF 16949, AEC-Q100, and AEC-Q200 are three important standards. The quality management system benchmark for the entire automotive industry.
The IATF 16949-certified facilities are typically expected to manufacture, assemble, and test parts for the automotive industry. The standard tests for active components, such as switches and power amplifiers, are defined by AEC-Q100.
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11. When businesses sponsor
community events they are largely
fulfilling their
responsibility to:
a charity sells 140140 benefit tickets for a total of \$2001$2001. some tickets sell for full price (a whole dollar amount), and the rest sells for half price. how much money is raised by the full-price tickets?
782 dollars is the answer Let's multiply the price of each ticket by $2, making the half-price an integer. In this case, the charity raised $4002 by selling tickets for $140 each. There are 140-h full price tickets available if $280-2h is the number of tickets at half price.
$140-h full price tickets are equivalent to $280.00 half price tickets in price. As a result, we can calculate that the price of a half-price ticket is $h+(280-2h) = 280-h . A single half-price ticket would then cost $frac4002280-h$, where $frac is an integer. Therefore, $4002 must have a divisor of $280-h. We are seeking for a divisor between $140 and $280, inclusive, keeping in mind that $0leq hleq 140$.
In terms of prime factors, $4002 is factored as $4002=2.3.23.29. We can quickly locate reveals that $2.3.29 = 174$ is the sole divisor of $4002$ that falls inside the stated range.
As a result, there were $h=106$ half-price tickets and $140-h = 34$ full-price tickets, for a total of $280-h=174$.
The cost of a half-price ticket in our modified scenario (with prices doubled by $2) is $frac4002174 = 23$. This is the cost of a full-priced ticket in the original configuration. Hence The full price tickets raise $23. 34 =782 dollars.
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the law of diminishing marginal returns is caused by part 2 a. poor quality fixed inputs. b. insufficient amounts of the variable input. c. some workers performing poorly on the job. d. the existence of a fixed input that must be combined with increasing amounts of the variable input.
the law of diminishing marginal returns is caused by part the existence of a fixed input that must be combined with increasing amounts of the variable input.
An economic theory known as the law of diminishing marginal returns states that once an optimal level of capacity is reached, adding more factors of production will really only lead to smaller improvements in output.
For instance, a factory hires workers to produce its goods, and eventually the business performs at its best. If you increase the number of employees beyond this point, operations will become less efficient even if all other production factors remain constant.
The idea of declining marginal utility is connected to the law of diminishing returns. Economies of scale can be used to contrast it.
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