Answer:
Explanation:
The risk-free rate is the interest that an investor will typically expect from an investment over a period of time.
From the question, the risk free price will be the current futures price which has been given as 118.65 cents per pound.
Therefore, since the farmer is ready for harvest and sale as 150,000 pounds of orange juice in 33 months time, he will have a price of:
= 150,000 × $118.65
= $17,797.5
In a duopoly game we observe the following payouts: if the two firms collude they will each earn $50,000. If one firm cheats then he earns $60,000 and the other firm earns -$10,000. If both firms cheat then they each earn zero economic profit. In this game what is the Nash equilibrium?
Answer:
the Nash equilibrium for both players is to collude
Explanation:
A duopoly is when there are two firms operating in an industry.
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
the Nash equilibrium for both players is to collude because it is the best outcome for both players. if, a player cheats, there is a chance that the other player would cheat and both firms would end up earning a zero economic profit
Based on the various payoffs to be made, the Nash Equilibrium for this game would be that both firms should collude.
The Nash Equilibrium is the outcome that would be most beneficial for both firms to stay in. If either of them leave, they would incur losses.
If both firms decide to collude and one cheats, the other firm would cheat as well to avoid making a loss which would lead to both of them making zero economic profit.
Both firms will therefore collude so as to make $50,000 a piece.
In conclusion, the Nash Equilibrium is collusion between the two firms.
Find out more at https://brainly.com/question/7141724.
Stu deposited $400 in an account three years ago. Last year, he deposited $250 and plans to deposit $300 next year. The rate is 3 percent. Which one of these correctly states a portion of the formula needed to compute the future value five years from today
Answer and Explanation:
Future value = Present value x (1+i)^n, where
n = number of years
I = interest rate
From the question n = 8 years for the amount $400 ,
n= 7years for $250 ,
n=4years for $300
interest = 3%= 0.03
Future value of $400 = 400 (1 + 0.03)^8 = $506.71
Future value of $ 250 = 250 (1+0.03)^7 = $307.47
Future value of $ 300 =300(1+0.03)^4 = $337.65
Suppose the price level and value of the U.S. Dollar in year 1 are 1 and $1, respectively. Instructions: Round your answers to 2 decimal places. a. If the price level rises to 1.55 in year 2, what is the new value of the dollar
Answer: $0.65
Explanation:
The Price Level and the value of a currency are inversely related because inflation erodes the value of the currency. Therefore if the price level increases, the value of the currency drops. The reverse is true.
The formula therefore is is;
New Value = [tex]\frac{1}{Price Level}[/tex]
New Value = [tex]\frac{1}{1.55}[/tex]
New Value = 0.6452
New Value = $0.65
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 675,000 $ 450,000 $ 225,000 Variable expenses 405,000 315,000 90,000 Contribution margin 270,000 135,000 135,000 Traceable fixed expenses 150,000 75,000 75,000 Segment margin 120,000 $ 60,000 $ 60,000 Common fixed expenses 65,000 Net operating income $ 55,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.
Answer:
Piedmont Company
1. Computation of the Companywide break-even point:
Break-even point = Fixed Cost/Contribution per margin
= $215,000/$27 = 7,963 units
2. Computation of the break-even point in dollar sales for the North region:
Break-even point in dollar sales = Fixed Costs/Contribution margin percentage
= $107,500/30% = $358,333
3. Computation of the break-even point in dollar sales for the South region:
= $107,500/60% = $179,1667
Explanation:
a) Data
Piedmont Company Contribution format segmented income statement as shown:
Total Company North South
Sales $ 675,000 $ 450,000 $ 225,000
Variable expenses 405,000 315,000 90,000
Contribution margin 270,000 135,000 135,000
Traceable fixed expenses 150,000 75,000 75,000
Segment margin 120,000 $ 60,000 $ 60,000
Common fixed expenses 65,000 32,500 32,500
Net operating income $ 55,000 $27,500 $27,500
NB: The common fixed expenses must be shared in some way to calculate the break-even points.
b) Total fixed costs:
Company-wide = $215,000 ($150,000 + 65,000)
North = $107,500 ($75,000 + 32,500)
South = $107,500 ($75,000 + 32,500)
c) We assume that the sales unit of 5,000 each for the two regions. Total units = 10,000
d) Contribution per margin:
Company-wide = $270,000/10,000 = $27
North = $135,000/5,000 = $27
South = $135,000/5,000 = $27
e) Contribution margin percentage:
= Contribution/Sales x 100
Company-wide = $270,000/$675,000 x 100 = 40%
North = $135,000/$450,000 x 100 = 30%
South = $135,000/$225,000 x 100 = 60%
f) The break-even point is the quantity of sales that must be achieved for the fixed costs to be fully covered and no profit or loss is recorded. It is the point at which fixed costs are equal to the contribution. The contribution is the difference between the sales value and the variable costs.
Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1000,20 years to maturity, and a coupon rate of 6.6 percent paid annually.
If the yield to maturity is 8.9 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Price of bond = $786.86
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond would be worked out as follows:
Step 1
Calculate the PV of interest payments
Annual interest payment
= 6.6% × 1,000× 1/2= 33
PV of interest payment = A ×(1- (1+r)^(-n))/r
r- semi-annual yield = 8.9%/2 = 4.45 %
n- 20× 2= 40
PV of interest payment= 33 × (1-(1.0445^(-40)/0.0445 = 611.611
Step 2
PV of redemption Value
PV = RV × (1+r)^(-n)
PV = 1,000 × (1.0445)^(-40) = 175.25
Step 3
Price of bond
Price of bond= 611.611 + 175.25 = 786.862
Price of bond = $786.86
Through which strategy do you believe Lockheed Martin would be most profitable to pursue diversification?
Answer: Related diversification
Explanation:
Here is the complete question:
Lockheed Martin has been a recognized brand in technology for aeronautics and space systems fordecades. The U.S. government is Lockheed Martin’s main customer. Recently, as large-scale military actions have decreased across the globe, the government has been consuming less of Lockheed Martin’sofferings.
As a top of executive of Lockheed Martin, you’ve been asked to consider the opportunities to diversify into new markets in order to remain competitive and continue to increase profits.
Through which strategy do you believe Lockheed Martin would be most profitable to pursue diversification?
Related diversification occurs when a business or an organization expands its activities into similar product lines that to the ones it currently offers.
An example of related diversification is when a computer manufacturer starts making calculators.
By pursuing related diversification, Martin is exploring innovative products which are still within aeronautics scope.
Consider a fast food café of your choice. Apply 4 V’s of Operation. Describe each V as ‘High’, ‘Low’ or ‘Moderate’ with one liner reason.\
Answer:
The classification of the particular question is outlined in the following segment including its clarification.
Explanation:
For both the data analysis, the "Jack throughout the Box" Fast foodservice Business throughout Florida, the US should be regarded. The 4Vs including its cafe's business seem to be about the volume, variety, differences, as well as accessibility including its brand operational activities. The 4V high meaning is large, small to medium-sized in terminology.
Volume: The amount including its corporation that has made the drinks sector profitable in designed to offer the sector people good of profits. In such a product, the need for another quantity is strong regarding the market pricing and therefore profits.Variety: Again for F and B platforms the range of foods the company has seems to be of significant importance. Taking into consideration the need for other sales on either the road carrier as well as selecting the enterprise must have ample choices in their beverages.Variation: Variations throughout the numerous perspectives including its deal in the reduced variety establishments need modifications that fit the Florida information of the product. For a company like Jack throughout the Box, this varying want is medium through business objectives.Visibility: The visibility of something like the company for something like the coffee shop on the roadside that is created to give the company's productivity. The prominence including its company is important for its somewhat cafe, which then in terms of improvement is taken into consideration to have been medium.The American car battery industry boasts that its recycling rate now exceeds 95%, the highest rate for any commodity. However, with changes brought about by specialization and globalization, parts of the recycling system are moving offshore. This is particularly true of automobile batteries, which contain lead. The Environmental Protection Agency (EPA) is contributing to the offshore flow with newly implemented standards that make domestic battery recycling increasingly difficult and expensive. The result is a major increase in used batteries going to Mexico, where environmental standards and control are less demanding than they are in the U.S. One in five batteries is now exported to Mexico. There is seldom difficulty finding buyers because lead is expensive and in worldwide demand. While U.S. recyclers operate in sealed, mechanized plants, with smokestacks equipped with scrubbers and plant surroundings monitored for traces of lead, this is not the case in most Mexican plants. The harm from lead is legendary
The correct answer to this open question is the following.
The question is incomplete. There are parts of the question missing. Indeed, there is no question posted, it is just a statement.
However, we can do research and comment on the following.
We are facing two scenarios here. Both, ethical dilemmas that need to be solved.
1) as an independent auto repair shop owner that tries to safely dispose of a few old batteries each week. (Your battery supplier is an auto parts supplier who refuses to take your old batteries.)
In this case, I would check the original agreement with the supplier to see if there is a clause on old batteries management. If not, I would ask it to help me solve this issue because I am his client and has to take care of me and the environment. Otherwise, I would have to contemplate the option of changing supplier.
2) I am the manager of a large retailer responsible for the disposal of thousands of used batteries each day.
In this other case, I would follow the Environmental Department rules and regulations to comply with the correct procedures. This means to ask for support and orientation to get all the revisions to work properly. Because I know all the consequences of not recycling correctly or the damage done to humans and the environment. So although it could be more money, and would modernize my equipment to better manage the disposal of batteries. It would be an investment, not an expense.
Kiley Corporation had these transactions during 2017 Analyze the transactions and indicate whether each transaction is an operating activity, investing acivity, financing activity, ar noncash investing and financing activity
(a) Purchased a machine for $30,000, giving a long term note in exchange
(b) Issued $50,00D par value common stock for cash. 38%
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
(d) Declared and paid a cash dividend of $13,000.
e) Sold a long-term investment with a cost of $15,000 for $15,000 cash
(f) Collected $16,000 from sale of goads.
(g) Paid $18,00D to suppliars.
Answer:
Operating Activities in a business's Cash-flow statement involve activities that have to do with the core business of firm which include the provision of its goods or service to the market. An example would be Revenue.
Investing Activities involve activities related to long term assets as well as securities related to other company's such as ownership of other company stocks and bonds.
Financing Activities refer to how the business raises cash to conduct its operations and this includes Equity transactions (including dividends) and Debt.
Non-cash investing and financing activity are Investing or Financing activities that are done by exchanging one for the other devoid of the use of cash.
A) Purchased a machine for $30,000, giving a long-term note in exchange. - Non-cash Investing and Financing activity
B) Issued $50,000 par value common stock for cash. - Financing Activities
C) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. - Non-cash Investing and Financing activity
D) Declared and paid a cash dividend of $13,000. - Financing Activities
E) Sold a long-term investment with a cost of $15,000 for $15,000 cash. - Investing Activities
F) Collected $16,000 from sale of goods. - Operating Activities
G) Paid $18,000 to suppliers. - Operating Activities
Assume ExxonMobil's price dropped to $35 overnight. Given the dividend growth rate of ExxonMobil of 8.00% and the last annual dividend of $1.70, what is the implied required rate of return necessary to justify the new lower market price of $ 35? What is the implied required rate of return necessary to justify the new lower market price of $ 35?
Answer:
Re = 13.26%
Explanation:
we can use the dividend growth model:
P₀ = Div₁ / (Re - g)
P₀ = $35Div₁ = $1.70 x 1.08 = $1.836g = 8%Re = cost of equity or required rate of return = ?$35 = $1.836 / (Re - 0.08)
Re - 0.08 = $1.836 / $35 = 0.0526
Re = 0.0526 + 0.08 = 0.1326 = 13.26%
Lindon Company is the exclusive distributor for an automotive product that sells for $34.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $193,800 per year. The company plans to sell 21,600 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $91,800 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.40 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $91,800?
Answer:
1. $23.80
2. Break even Point (units) = 19,000 units and Break even Point (dollars) = $646,000
3. Unit sales to attain a target profit = 28,000 units and Dollar sales to attain a target profit = $952,000
4. Break even Point (units) = 28,500 units, Break even Point (dollars) = $969,000 and Dollar sales to attain a target profit = $1,428,000.
Explanation:
Variable Cost % = 100% - 30%
= 70%
Thus, variable expenses per unit = $34.00 × 70%
= $23.80
Break even Point is the level of activity where a firm makes neither a profit nor a loss.
Break even Point (units) = Fixed Cost / Contribution per unit
= $193,800 / ($34.00 ×30%)
= $193,800 / $10.20
= 19,000 units
Break even Point (dollars) = Fixed Cost / CM Ratio
= $193,800 / 0.30
= $646,000
Unit sales to attain a target profit = (Fixed Cost + Target Profit) / Contribution per unit
= ($193,800 + $91,800) / $10.20
= 28,000
Dollar sales to attain a target profit = (Fixed Cost + Target Profit) / CM Ratio
= ($193,800 + $91,800) / 0.30
= $952,000
When variable expenses reduce by $3.40 per unit.
Break even Point (units) = Fixed Cost / Contribution per unit
= $193,800 / ($34.00 - $23.80 - $3.40 )
= $193,800 / $6.80
= 28,500 units
Break even Point (dollars) = Fixed Cost / CM Ratio
= $193,800 / ($6.80/ $34.00)
= $969,000
Dollar sales to attain a target profit = (Fixed Cost + Target Profit) / CM Ratio
= ($193,800 + $91,800) / 0.20
= $1,428,000
The desired reserve ratio is 3 percent. Robert deposits $3,000 in Bank America. Bank America keeps its minimum desired reserves and lends the excess to Fredrica. How much does Bank America lend to Fredrica?
Answer: $2,910
Explanation:
Bank America is required by law to keep 3% of all deposits as reserves and they can lend the rest which they did to Fredrica.
The amount they lent to Fredrica therefore is;
= 3,000 (1 - 3%)
= 3,000 * 97%
= $2,910
Pell Corporation is a company that manufactures computers. Assume that Pell: allocates manufacturing overhead based on machine hours estimated 9,000 machine hours and $ 90, 000 of manufacturing overhead costs actually used 15,000 machine hours and incurred the following actual costs: (click the icon to view the actual costs.) The company allocated manufacturing overhead of $150, 000 using a predetermined overhead rate of $ 10.00 per machine hour. The total actual manufacturing overhead costs are $84. What entry would Pell make to adjust the manufacturing overhead account for overallocated or underallocated overload?
Answer:
Adjusting entry is given below
Explanation:
DATA
Estimated Overhead = $150,000
Actual Overhead = $84,000
Under/Over allocated =?
Solution
Under/Over allocated Overhead = Estimated Overhead - Actual Overhead
Under/Over allocated Overhead = $150,000 - $84,000
Under/Over allocated Overhead = $66,000
We had over-allocated manufacturing overhead with $66,000
To adjust manufacturing Overhead account we should make the following entry
Entry DEBIT CREDIT
Manufacturing Overhead $66,000
Cost of goods sold $66,000
Crystal Apple Sales Company began 2014 with cash of $2,000, inventory of $3,600 (200 crystal apples that cost $18 each), $2,500 of common stock, and $3,100 of retained earnings. The following events occurred during 2014.
1. Crystal Apple purchased additional inventory twice during 2018. The first purchase consisted of 800 apples that cost $20 each, and the second consisted of 1,200 apples that cost $24 each. The purchases were on account.
2. The company sold 2,040 apples for cash at a selling price of $40 each.
3. The company paid $44,800 cash on accounts payable for inventory purchases.
4. Crystal Apple paid $26,000 cash for operating expenses.
5. Assume an income tax rate of 30 percent. Crystal Apple paid income tax expense in cash.
Required:
a. Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.
b. Prepare an income statement, a balance sheet, and a statement of cash flows under each of the three cost flow assumptions.
Answer and Explanation:
a. The computation of ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average is shown below:-
Cost of goods sold = (200 × $18) + (800 × $20) + (1,040 × (2,040-200-800)
= (200 × $18) + (800 × $20) + (1,040 × $24)
= $3,600 + $16,000 + $24,960
= $44,560
Ending Inventory Under FIFO = (1,200 - 1,040) × (2,040-200-800)
= 160 × $24
= $3,840
Under LIFO method
Cost of goods sold is
= (1,200 × $24) + (800 × $20) + (40 × $18)
= $28,800 + $16,000 + $720
= $45,520
Ending Inventory Under LIFO is
= (200 - 40) × $18
= 160 × $18
= $2,880
Weighted Average cost flow Assumption
Weighted Average cost per apple = Cost of Beginning inventory and purchase ÷ Total apple available
Cost of Beginning inventory and purchases is
= (200 × $18) + (800 × $20) + (1,200 × $24)
= $3,600 + $16,000 + $28,800
= $48,400
Total apples available is
= 200 + 800 + 1,200
= 2,200
Weighted Average cost per apple is
= $48,400 ÷ 2,200
= $22
Cost of goods sold is
= 2,040 × $22
= $44,880
Ending Inventory is
= 160 × $22
= $3,520
b. The Preparation of income statement, a balance sheet, and a statement of cash flows under each of the three cost flow assumptions is prepared below:-
Income Statement Amount
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($44,560)
Gross Profit $37,040
Less: Operating Expenses ($26,000)
Income before income taxes $11,040
Less: Income tax (30% × $11,280) ($3,312)
Net Income $7,728
Balance Sheet
Assets
Cash $9,488
Inventory $3,840
Total Assets $13,328
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,828
Total Liabilities and Equity $13,328
Working note
cash = (opening + Sales - Purchases - Operating expenses - Income tax expenses )
= $2,000 + $81,600 - $44,800 - $26,000 - $3,312
= $9,488
Retained earning = (Opening + Net Income)
= $3,100 + $7,728
= $10,828
Statement of Cash Flow
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,312)
Net Increase in cash and
cash equivalents $7,488
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and cash equivalents $9,488
LIFO cost flow Assumption
Income Statement
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($45,520)
Gross Profit $36,080
Less: Operating Expenses ($26,000)
Income before income taxes $10,080
Less: Income tax (30% × $10,080) ($3,024)
Net Income $7,056
Balance Sheet
Assets
Cash $9,776
Inventory $2,880
Total Assets $12,656
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,156
Total Liabilities and Equity $12,656
Working note:-
Cash = (opening + Sales - Purchases payment - Operating expenses -Income tax expenses)
= $2,000 + $81,600 - $44,800 - $26,000 - $3,024
= $9,776
Retained earning = (Opening + Net Income)
= $3,100 + $7,056
= $10,156
Statement of Cash Flows
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,024)
Net Increase in cash and
cash equivalents $7,776
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and cash equivalents $9,776
Weighted Average cost flow Assumption
Income Statement
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($44,880)
Gross Profit $36,720
Less: Operating Expenses ($26,000)
Income before income taxes $10,720
Less: Income tax (30% × $10,720) ($3,216)
Net Income $7,504
Balance Sheet
Assets
Cash $9,584
Inventory $3,520
Total Assets $13,104
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,604
Total Liabilities and Equity $13,104
Working note
Cash = opening + Sales - Purchases payment - Operating expenses - Income tax expenses )
= $2,000 + $81,600 - $44,800 - $26,000 - $3,126
= $9,584
Retained earning = (Opening + Net Income)
= $3,100 + $7,504
= $10,604
Statement of Cash Flows
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,216)
Net Increase in cash and
cash equivalents $7,584
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and
cash equivalents $9,584
Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to
Answer:
$53,700
Explanation:
Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced
=($5.20 + $3.75) * 6,000 units
=$8.95 * 6,000
=$53,700
The total amount of direct manufacturing cost incurred is closest to $53,700
If Treasury bills are currently paying 6.5 percent and the inflation rate is 1.3 percent, what is the approximate and the exact real rate of interest
Answer:
the approximate real interest rate = nominal rate - inflation rate = 6.5% - 1.3% = 5.2%
the exact real interest rate is calculated using the following formula:
(1 + nominal interest rate) = (1 + real interest rate) (1 + expected rate of inflation)
(1 + 0.065) = (1 + real interest rate) x (1 + 0.013)
1 + real interest rate = (1 + 0.065) / (1 + 0.013) = 1.065 / 1.013 = 1.05133
real interest rate = 1.05133 - 1 = 0.05133 = 5.13%
Danaher Woodworking Corporation produces fine furniture. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead $ 36,400 Capacity of the lathe 400 hours Actual results: Actual total fixed manufacturing overhead $ 36,400 Actual hours of lathe use 380 hours Required: a. Calculate the predetermined overhead rate based on capacity. b. Calculate the manufacturing overhead applied. c. Calculate the cost of unused capacity.
Answer:
a. Calculate the predetermined overhead rate based on capacity.
$91 per lathe hourb. Calculate the manufacturing overhead applied.
$34,580c. Calculate the cost of unused capacity.
$1,820Explanation:
Estimated total fixed manufacturing overhead $36,400
Capacity of the lathe 400 hours
predetermined overhead rate per lathe hour = $36,400 / 400 = $91
actual results:
Actual total fixed manufacturing overhead $36,400
Actual hours of lathe use 380 hours
applied overhead = $91 x 380 lathe hours = $34,580
cost of unused capacity = $36,400 - $34,580 = $1,820
The negotiated ________ agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures.
Answer:
labor-management
Explanation:
Labor-management agreement is when the leaders and the employees of a company make an agreement that has the goal of protecting the rights of the parties involved and define aspects like salaries and working conditions of the employees. According to this, the answer is that the negotiated labor-management agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures because this agreement between employees and employers establishes the conditions the employees will receive for their services to avoid disputes and protect the rights of the parties.
Journalize the following transactions assuming a perpetual inventory system:
May 5
Purchased merchandise from Archie Co., $6,000, terms FOB shipping point, 2/10, n/30.
Prepaid freight costs of $100 were added to the invoice.
May 12
Issued a debit memo to Archie Co. for $2,500 of merchandise returned from purchase on May 5.
May 14
Paid Archie Co. for invoice of May 5, less debit memo of May 12.
Answer:
May 5
Merchandise Inventory $6,000 (debit)
Freight Charges $100 (debit)
Accounts Payable : Archie Co. $6,000 (credit)
Cash $100 (credit)
May 12
Accounts Payable : Archie Co. $2,500 (debit)
Merchandise Inventory $2,500 (credit))
May 14
Accounts Payable : Archie Co. $3,500 (debit)
Discount Received $70 (credit)
Cash $3,430 (credit)
Explanation:
May 5
Recognize the Assets of Merchandise and a Liability : Accounts Payable : Archie Co. as a result of purchase.
Also Recognize the Freight Expenses since this is a F.O.B delivery
May 12
De-recognize the Liability : Accounts Payable - Archie Co. and the Merchandise Inventory asset to the extend of Merchandise returned to Archie Co.
May 14
De-recognize the Liability : Accounts Payable : Archie Co. of $3,500 and the Cash assets to the extend of Payment made to Archie Co less cash discount of $3,430 .
Pinkin Inc. needs to determine a price for a new phone model. Pinkin desires a 20% markup on the total cost of the phone. Pinkin expects to sell 43,000 phones. Additional information is as follows:
Variable product cost per unit $82
Variable administrative cost per unit $66
Total fixed overhead $110,000
Total fixed administrative $90,000
Using the total cost method what price should Pinkin charge?
a. $178.08
b. $190.00
c. $152.08
d. $170.92
e. $188.75
Answer: $183.18
Explanation:
Pinkin aims to make a 20% markup on the total cost of selling the product.
Costs
Fixed Cost Per Unit
= (Total fixed overhead + Total fixed administrative) / no. of units
= (110,000 + 90,000)/43,000
= $4.65
Variable Costs Per Unit
= Variable product cost per unit + Variable administrative cost per unit
= 82 + 66
= $148
Total Cost per unit = 4.65 + 148
= $152.65
Price Pinkin should charge
= Total Cost ( 1 + Markup)
= 152.65 ( 1 + 20%)
= $183.18
Note; Answer is not in the options. Either Options are for another question or question has wrong details.
Southland Company is preparing a cash budget for August. The company has $16,300 cash at the beginning of August and anticipates $124,200 in cash receipts and $133,800 in cash payments during August. Southland Company wants to maintain a minimum cash balance of $10,000. The preliminary cash balance at the end of August before any loan activity is:
A bond has a $1,000 par value, 20 years to maturity, and pays a coupon of 5.5% per year, annually. The bond is callable in ten years at $1,075. If the bond’s yield to maturity is 5.89% per year, what is its yield to call? Question 13 options: A) 5.87% B) 6.57% C) 6.11% D) 6.43% E) 6.68%
Answer:
6.68% , option E is correct
Explanation:
The price of the bond can be computed using the below formula for bond price calculation:
bond price=face value/(1+r)^n+coupon*(1-(1+r)^-n)/r
face value is $1000
r is the yield to maturity which is 5.89%
coupon=face value*coupon rate=1000*5.5%=55
n is the number of coupons the bond would pay which is 11 coupons over 20 years
bond price=1000/(1+5.89%)^20+55*(1-(1+5.89%)^-20)/5.89%
bond price=$ 954.87
The yield on the call can be determined using excel rate function as further explained below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupons the bond would pay before being called in ten years' time i.e 10 coupons
pmt is the is the amount of annual coupon=$1000*5.5%=$55
pv is the current price of $954.87
fv is the call price which is $1,075
=rate(10,55,-954.87,1075)=6.68%
According to the Keynesian transmission mechanism, an increase in the money supply causes a(n) __________ in the interest rate and a(n) __________ in investment, which in turn causes a(n) __________ in total expenditures and aggregate demand.
Answer: lower; rise; raises.
Explanation:
According to the Keynesian transmission mechanism, when there is an increase in money supply which is an expansionary policy, this will result into a reduction in the interest rate.
Since the interest rate has been reduced, this will lead to an increase the in investment as investors will be willing to borrow loan for investment opportunities and this will also lead to a rise in the total demand and expenditure.
Some companies resort to questionable means to enforce computer use policies. They use surveillance software to monitor employees' IT use. Every activity on the employee's computer is simultaneously tracked and recorded. Everything that the employee sees on their monitor can also be seen on the monitor of the person tracking them. The same software is used to monitor children's online activities and monitor spouses suspected on infidelity. Should employees be treated as undisciplined children of cheating spouses
Answer:
Its appropriate because the company monitors its employee's use of IT system during office time not their personal devices.
Explanation:
If the company is monitoring closely its own IT systems then it is appropriate as the company is keen in increasing the employee productivity during office time. This is also appropriate if the employee is told about the close monitoring because he will not access his personal things which includes payments of utilities and other item using online banking. So this is appropriate as it is not meant to harm the employee and is part of improving employee performance.
The price level increases. The short-run aggregate supply curve will Choose one: A. shift to the right. B. shift to the left. C. remain unchanged.
Answer:
Option C, remain unchanged, is the right answer.
Explanation:
Option C is correct because the increase in the price level will result in the movement along with the given supply curve but in the question, option A says shifts to the right and in option B it says the shift to the left. Therefore these options are wrong. However, the supply curve remains the same because due to an increase in the price level the supply curve does not shift. Therefore option C will be the right option.
You invest a single amount of $14,800 for 7 years at 15 percent. At the end of 7 years you take the proceeds and invest them for 14 years at 17 percent. How much will you have after 21 years
Answer:
Value of investment after 21 years = $354,608.11
Explanation:
The value of an amount invested at a certain rate of return for certain number of years where interest compounded annually is known as the future value.
The future value of an investment can be determined using the future value formula. This formula is stated below:
FV = PV × (1+r)^(n)
FV - Future Value , PV- Present Value, r-rate of return, n- number of years
For the first round of investment 15% for 7 years, future value would be:
FV = 14,800 × (1.15)^(7) = 39,368.29
Second round of investing 17% for 14 year, future value would be
FV = 39,368.29 × (1.17)^(14)= 354,608.11
Future Value =$354,608.11
Value of investment after 21 years = $354,608.11
Principal-principal conflicts occur within one class of principals, such as a disagreement among certain majority stockholders and other majority stockholders.
a. True
b. False
Answer: False
Explanation:
The principal to principal conflict typically exists between the two main categories of shareholders, which are the controlling shareholders and the second one which is the minority shareholders
Therefore, the analysis in the question that the principal-principal conflicts occur within one class of principals, such as a disagreement among certain majority stockholders and other majority stockholders is not true.
"In order to be classified as a _______________, a firm must be owned by the people who run it on a day-to-day basis and cannot have publicly issued stock."
Answer:
private company
Explanation:
a private company is a company whose shares are not sold publicly - they are not traded on the public stock exchange. they also owned by the people who run them and not by managers.
Private firms are not bound by the Securities and Exchange Commission's (SEC) filing requirement.
Under the constant-money-growth-rate rule, the annual money supply will be constant at the average annual growth rate of:________.
Answer:
real GDP
Explanation:
The above rule was proposed by Milton Friedman that the money supplied by the central bank be increased by constant percentage on annual basis. In other words, constant money growth rate rule suggested money supply growth rate be equal to GDP growth rate annually.
According to Friedman, monetary policy contributes to fluctuation in an economy. He suggested that the best way to stabilize a fluctuating economy is to allow the central bank increase money supply in the long run by a targeted amount annually irrespective of the situation of the economy.
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: White divisionGrey division Sales (net)$270,000 $540,000 Salary expense37,800 64,800 Cost of goods sold135,000 202,500 The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Gross profit for the White and Grey Divisions is: WhiteGrey A.$97,200 $272,700 B.$232,200 $475,200 C.$135,000 $337,500 D.$72,200 $247,700 E.$97,200 $247,700
Answer:
White Division Gross Profit = $72,200
Grey Division Gross Profit = $247,700
Explanation:
White Division Grey division
Sales (net) $270,000 $540,000
Less: Cost of goods sold $135,000 $202,500
Gross Margin $135,000 $337,500
Less: Salary Expenses $37,800 $64,800
Rent $25,000 $25,000
Gross Profit $72,200 $247,700
The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Hence, the rent expenses will be shared equally. Rent = $50,000 hence, both division will pay $25,000 each for rent