A common bracket can be purchased in large quantities for $0.67. The company can make the bracket at a variable cost of $0.41 by buying a machine for $33,000. Demand over the next two years (the anticipated life of the product and machine) is estimated to be normally distributed with mean 100,000 units and a standard deviation of 10,000 units. Would you recommend making or buying this bracket?

Answers

Answer 1

Answer:

we recommnend to buy this bracket

Explanation:

The computation is shown below:

Given tyhat

Buying cost of the machine = $33,000 = x

x_1 = $0.67

And, x_2 = $0.41

Now the break even point is

X = x ÷ (x_1 - x_2)

= $33,000 ÷ ($0.67 - $0.41)

= 126,923 units

Therefore

Probability  (Demand > Break even point)

= 1 - [tex]\phi[/tex] ($126,923 - 100,000) ÷ 10,000

= 1 - [tex]\phi[/tex] (2.69)

= 0.36%

where

[tex]\phi[/tex] = function of cumulative distribution of N (0,1)

Therefore the probability is that it makes economically the items would be lesser

Thus, we recommnend to buy this bracket


Related Questions

Suppose there is perfect competition in the output market and the labor market and that the output price is $10 and the wage is $350 per hour. In this case, the demand for labor by the firm equals _____ hours.

Answers

Answer:

2 hours of labor

Explanation:

Labor is hired up to a point where the marginal product of labor * Price of the output = wage of the worker.

Thus, 35 * 10 = 350.

35 widgets are produced using 2 hours of labor.

Assuming that the mandate to a portfolio manager was to invest in a broadly diversified portfolio of U.S. stocks, which two or three indexes should be considered as an appropriate benchmark? Why?

Answers

Answer:

Indexes are used as a benchmark to evaluate portfolio performance. In this case, we must be sure the index is consistent with our investing universe. If we are investing worldwide, we should not judge our performance relative to the DJIA which is limited to 30 US Blue-chip stocks. The most widely followed stock on the Benchmark indexes NASDAQ composite, the Wilshire 5000, S&P 500 and the NYSE Composite.

These indexes would be appropriate for portfolio managers wishing to construct a broadly diversified portfolio. The benchmark chosen should be similar to other assets chosen by the investor. The ideal index would match the portfolio. Normally, a standard index is used.

Julie is looking to sell her flower shop. She should hire a(n) _____ to help her find a buyer and negotiate the sale.

a. business broker
b. real estate broker
c. investment broker
d. stock broker

Answers

Answer:

B is the answer for the question

In looking for who to help her with the sale of her flower shop, Julie should look for a a. business broker.

A business broker:

Helps facilitate the sale of a business Ensures that relevant legal requirements are met  Helps a business owner find others who want to buy businesses

Julie's flower shop is a business so if she wants to sell it, she should look for a  business broker to help her with the transaction.

In conclusion, Julie needs a business broker.

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Kahn Inc. has a target capital structure of 60% common equity and 40% debt to fund its $10 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 13%, a before-tax cost of debt of 10%, and a tax rate of 40%. The company’s retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year D1 is $3, and the current stock price is $35.
a. What is the company’s expected growth rate?
b. If the firm’s net income is expected to be $1.6 billion, what portion of its net income is the firm expected to pay out as dividends?

Answers

Answer and Explanation:

The computation is shown below

a. Given that

WACC = 13%

Before-tax cost of debt = 10%

As we know that

WACC = After tax Cost of debt × Weight of debt + Cost of equity × weight of equity

13% = 10% × (1 - 0.40) × 0.40 + X × 0.60

13% = 6% × 0.40 + X × 0.60

13% = 2.4% + X × 0.60

10.6% = X × 0.60

X = 17.67%

Now

Cost of equity = D1 ÷ Price + g

0.1767 = $3 ÷ 35 + g

g = 9.10%

Now

B) Growth rate = (1 - payout ratio) ×  ROE

.0910 = ( 1 - X) ×  0.2667

Payout ratio = 65.88

As we know that  

ROE = net income ÷ shareholders equity

= $1.6 billion ÷  $6 billion

= 26.67%

Now the portion of the net income for the dividend  would be

= 65.88 × $1.6 billion

= 1.054 billion

Garvin Enterprises' bonds currently sell for $1,150. They have a 6-year maturity, an annual coupon of $85, and a par value of $1,000. What is their current yield?

Answers

Answer:

7.39%

Explanation:

Calculation for What is their current yield

We are going to use Financial calculator to find their current yield

N represent Number of years=6 years

PV represent Present value=$1,150

PMT= $85

Face value represent FV= $1,000

Hence,

Current yield = 7.39%

Therefore What is their current yield is 7.39%

What term describes a steady flow of income that funds the services for a community?

A. Revenue Stream
B. Cost of living
C. Tax Return
D. Deficit

Answers

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An revenue stream alludes to a consistent progression of pay that subsidizes the administrations for a local area. In this way, choice (A) is precise.

It is the cash created through different sources, like expenses, charges, fines, awards, or different types of pay, that an administration or association gets to help its tasks and offer fundamental types of assistance to general society.

Revenue streams are critical for keeping up with and further developing framework, medical care, schooling, public security, and other fundamental administrations. A very much oversaw income stream guarantees the monetary soundness of a local area or association, empowering it to meet its commitments and put resources into projects that benefit the local area overall.

In this manner, choice (A) is right choice.

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review financial website or publications and three examples of a bond. for each bond gather the following information and complete the table coupon rate selling price maturity date​

Answers

Answer:

Company Coupon Rate Selling Price Maturity Date

Bombardier Inc. 7.5% $96.40 3/15/2025

NGL Energy Partners LP 6.875% $97.50 10/15/2021

Disney 2.150% $101.45 9/17/2020

Explanation:

from the Plato

The Coupon Rate, Selling Price and Maturity Date are important terms in a bond contract.

What are the bonds terms?

The coupon rate is the yield that determines the amount that an investor is expected to receive, the selling price is the present value of the cash amounts that will received by the bond owner and the maturity date is the date at which the bond will mature for full repayment.

The gathered information from the financial website includes:

Company                        Coupon Rate   Selling Price    Maturity Date

Bombardier Inc.                   7.5%                $96.40            3/15/2025

NGL Energy Partners LP     6.875%            $97.50            10/15/2021

Disney                                  2.150%             $101.45            9/17/2020

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Babytoy Corp. manufactures toys for children. A customer complained to the consumer forum claiming that the toy she bought from the
company had been painted with solvent hydrocarbon, which is toxic. How can the company protect itself from this situation with the help of
insurance?
OA
natural calamities insurance
OB. general liability insurance
oc property insurance
OD. business interruption insurance
Reset
Next

Answers

Answer:

Babytoy corp could use "General liability insurance"

Explanation:

because General liability insurance helps cover your costs to respond to a claim that your business caused property damage or bodily injury. It can help pay for: A customer or client's medical expenses if they slip and fall in your business. ... Legal costs to defend your business in a lawsuit.

Successful sales people?

Answers

I would presume the answer is B.

Buffalo Corporation reported net income of $415,720 in 2020 and had 208,000 shares of common stock outstanding throughout the year. Also outstanding all year were 40,500 options to purchase common stock at $11 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share $

Answers

Answer:

Buffalo Corporation

Diluted earnings per share is:

$1.67 per share.

Explanation:

a) Data and Calculations:

Reported net income = $415,720

Common Stock outstanding = 208,000 shares

Options outstanding = 40,500 shares

Total outstanding shares = 248,500 shares (208,000 + 40,500)

Option price per share = $11

Market price per share = $15

Earnings per share = Net Income/Common Stock outstanding

Computation of diluted earnings per share:

Diluted Earnings per share = Net Income/Total outstanding shares

= $415,720/248,500

= $1.67

b) Buffalo's diluted earnings per share uses the total outstanding shares (common stock plus options stock plus all convertible securities) to divide into the net income.  As the description implies, all convertible stocks are included in the calculation to arrive at the earnings per share.

Companies should kick-off sustainability efforts with diagnosis because: diagnosis is easier to understand than other aspects of change it helps focus employees on what needs to change sustainability requires employees to be compliant and that requires diagnosis all of the above none of the above

Answers

Answer: It helps focus employees on what needs to change

Explanation:

For change in anything to be implemented, there needs to be a recognition of what it is that is lacking that needs to be changed.

This is why diagnosis is very important. It shows the company what they need to change in order to be more sustainable and when the company is aware of these things, their employees will become more focused on those things with the view to change them.

You are 18 years old, opening your first savings account, and are considering three options: BANK A is not FDIC insured, has an interest rate of 5%, and a minimum deposit of $25. BANK B is FDIC insured, has an interest rate of 0.01%, and a minimum deposit of $50. Bank C is FDIC insured, has an interest rate of 0.02%, and a minimum deposit of $10,000. All three have fees competitive with other banks. Which bank is the best option?

Answers

Answer:bank b

Explanation:

All three have fees competitive with other banks, Bank B is the best option, Thus, option (b) is correct.

What is banks?

The term bank refers to the financial institution offering the services related to the term money. The bank is manage financial system to handling accounts and manage the cash. The bank is the based on the main motive to the cash transaction. The charged the interest on the loan.

According to case, a person is 18 years old, opening first savings account. Bank B was the better choice. BANK B is FDIC insured, has an interest rate of 0.01%, and a minimum deposit of $50. It was the lowest amount of the deposit interest rate is 0.01%.

As a result, the significance of the bank B are the best option are the aforementioned. Therefore, option (b) is correct.

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Your question is incomplete, but most probably the full question was.

You are 18 years old, opening your first savings account, and are considering three options: BANK A is not FDIC insured, has an interest rate of 5%, and a minimum deposit of $25. BANK B is FDIC insured, has an interest rate of 0.01%, and a minimum deposit of $50. Bank C is FDIC insured, has an interest rate of 0.02%, and a minimum deposit of $10,000.

All three have fees competitive with other banks. Which bank is the best option?

Bank A

Bank B

Bank C

All 3 banks are equally good options

A company wants to determine if its employees have any preference among 5 different health plans which it offers to them. A sample of 200 employees provided the data below. Calculate the chi-square test statistic to test the claim that the probabilities show no preference. Use alpha = 0.01.
Plan 1 2 3 4 5
Employees 30 55 18 32 65
a. 37.45
b. 55.63
c. 45.91
d. 48.91

Answers

Answer:

37.45

Explanation:

Given the data:

Plan 1 2 3 4 5

Employees (X) : 30 55 18 32 65

α = 0.01

Sample size (n) = 200

Preference among 5 different health plans

Expected value of data (E) :

Sum of employees / number of plans

= (30 + 55 + 18 + 32 + 65) / 5 = 40

Σ((X - E)^2 / E)

(((30 - 40)^2) / 40) + (((55 - 40)^2) / 40) + (((18 - 40)^2) / 40) + (((32 - 40)^2) / 40) + (((65 - 40)^2) / 40) = 37.45

Hence, the Chi square Test statistic = 37.45

what are the impact of tourism​

Answers

positive:

New facilities for the tourists also benefit locals, eg: new roads

Greater demand for local food and craft

negative:

Overcrowding and traffic jams

Prices increase in local shops as tourists are often more wealthy than the local population

Martin sells a stock investment for $26,000, on August 2, 2021. Martin's adjusted basis in the stock is $15,000. If Martin acquired the stock on November 15, 2019, calculate the amount and nature of the gain or loss.
If Martin had acquired the stock on September 10, 2020, calculate the amount and nature of the gain or loss.

Answers

The amount and nature of the gain or loss is $11,000 short term gain and the amount and nature of the gain or loss for 2020 is $11,000 long term capital gain.

Short term gain and long term gain

a. Gain or loss

Gain or loss = $26,000 -$15,000

Gain or loss = $11,000 (short term gain)

(Nov to August)

b. Gain or loss

Gain or loss = $26,000 -$15,000

Gain or loss = $11,000 (long term capital gain)

(Year 2017 to Year 2019)

Therefore the amount  is $11,000 for both and the nature for both is   short term and long term capital gain.

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Define the term packaging

Answers

Answer:  Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages

Explanation:

True or False: Under the average-cost pricing policy, the cable company has no incentive to cut costs.

Answers

Answer:

True.

Explanation:

The cable company will not have any incentive to cut costs.  This is because it knows that its costs will be averaged to determine the average cost to which a certain percentage is then added to arrive at the selling price.  Having the cost averaged in this way will not motivate the cable company to seek cost minimization strategies that it could use to increase its income.

What is inexpensive and designer clothing?

Answers

Rue La La. Rue La La offers designer brands at up to 70% off retail prices through “Boutique” sales - think flash sales by designer. ...

Neiman Marcus Last Call. ...

6PM. ...

Gilt. ...

Bluefly. ...

Nordstrom Rack.

Champion, it can also be worth more depending on where it’s sold and used to be much more expensive and now at walmart.

which economic system has no formal government ​

Answers

Market economic system

that forces the PV of its inflows to equal its cost. The IRR is an estimate of the project's rate of return, and it is comparable to the

Answers

Answer:

Discount rate

YTM

Explanation:

Here is the full question :

A project's internal rate of return (IRR) is the

-Select-

compound rate

discount rate

risk-free rate

that forces the PV of its inflows to equal its cost. The IRR is an estimate of the project's rate of return, and it is comparable to the

-Select-

YTM

coupon

gain

on a bond.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

A project should be chosen if it's IRR is greater than the discount rate.

Internal rate of return is one of the capital budgeting methods. Other methods are :

1. Net present value

2. Profitability index

3. Pay back method

4. Discounted pay back method

5. Accounting rate of return

Bateman Corporation sold an office building that it used in its business for $800,200. Bateman bought the building 10 years ago for $599,900 and has claimed $200,300 of depreciation expense. What is the amount and character of Bateman's gain or loss

Answers

Answer:

Gain= $400,600

Explanation:

First, we need to calculate the book value of the building:

Book value= purchase price - accumulated depreciation

Book value= 599,900 - 200,300

Book value= $399,600

If the selling price is higher than the book value, the company gain from the sale.

Gain/loss= selling price - book value

Gain/loss= 800,200 - 399,600

Gain= $400,600

On June 1, the company collected $16,800 cash, which is for services to be performed over the next 12 months. For the following two separate cases, prepare the adjusting entry and determine the balance of Deferred Service Revenue at year-end. Case A: $16,800 was credited to Service Revenue during the year. Case B: $16,800 was credited to Deferred Service Revenue during the year.

Answers

The preparation of the adjusting entry and the determination of the balance of the Deferred Service Revenue at year-end are as follows:

Case A Adjusting Entry:

Debit Service Revenue $7,000

Credit Deferred Service Revenue $7,000

To record the deferred revenue for next year.

Case B Adjusting Entry:

Debit Deferred Service Revenue $9,800

Credit Service Revenue $9,800

To record the service revenue for the year.

Transaction Analysis:

Case A: $16,800 was credited to Service Revenue during the year.

Service Revenue $7,000 Deferred Service Revenue $7,000 ($16,800 x 5/12)

June 1 to December 31 = 7 months; (12 - 7 = 5 months)

Case B: $16,800 was credited to Deferred Service Revenue during the year.

Deferred Service Revenue $9,800 Service Revenue $9,800 ($16,800 x 7/12)

Thus, Case A emphasized that the cash receipt of $16,800 was credited to Service Revenue, the adjustment is to Deferred Service Revenue, and vice versa for Case B.

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A patron of a sporting arena can purchase alcohol inside and take it out to the Parking lot true or false

Answers

If a patron of a sporting arena purchases alcohol inside, they can take it out to the parking lot so this is TRUE.

What are patrons of sporting arenas able to do?

Alcohol consumption rules state that a person who purchases alcohol from a licensed venue is allowed to take that drink anywhere within the premises.

The parking lot of a sporting arena still counts as the premises of the sporting arena so the patron can take the alcohol there.

In conclusion, it is true that a patron of a sporting arena can purchase alcohol inside and take it out to the parking lot.

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Sinclair is considering the acquisition of new machinery that will produce uniform benefits over the next five years. The following information is available: Annual savings in cash operating costs:$460,000 Annual depreciation expense:$360,000 If the company is subject to a 20% tax rate, what denominator should be used to compute the machinery's payback period

Answers

Answer:

The denominator (net annual cash flow) = $440,000

Explanation:

The denominator (net annual cash flow)

Particular                                 Amount

Saving in operating cost        $460,000

Less: Depreciation                 $360,000

Net additional income   $100,000

Income tax on above (20%)   $20,000

Savings after tax                   $80,000

Add: Depreciation                  $360,000

Net annual cash benefit   $440,000

The denominator (net annual cash flow) = $440,000

c
Which Energy career pathways work with renewable energy? Check all that apply.
Energy Conversion
Energy Generation
Energy Analysis
Energy Transmission
Energy Distribution

Answers

Answer:

bshahshshsjkdjdjxnx

Explanation:

energy analysis

energy distribution

energy conversion

Question 26
Using the following year-end information for Breanna Boutique, calculate the current ratio and acid-test ratio for the boutique:
lot yet
nswered
Cash.
$ 52,000
arked out of
.00
Short-term investment.
12,000
54,000
Flag question
Accounts Receivable.
325,000
17,500
Inventory
Prepaid expenses
Account payable.
Other current payables.
106,500
25,000

Answers

Answer:

3.50 and 0.90

Explanation:

Calculation for the current ratio and acid-test ratio for the boutique

Calculation of CURRENT RATIO

First step is to calculate the current assets and current liabilities

CURRENT ASSETS

Cash 52,000

Short-term investment 12,000

Accounts receivable 54,000

Inventory 325,000

Prepaid expenses 17,500

Total current assets $ 460,500

CURRENT LIABILITIES

Accounts payable$ 106,500

Other current payables $ 25,000

Total current liabilities $ 131,500

Using this formula

Current ratio=Current assets/Current Liabilities

Let plug in the formula

Current ratio=460,500/131,500

Current ratio=3.50

Therefore the Current ratio will be 3.50

Calculation for CURRENT ACID -TEST RATIO

Using this formula

Current acid-test ratio=Quick assets/Current Liabilities

Let plug in the formula

Current acid-test ratio=460,500-(325,000+17,500)/131,500

Current acid-test ratio=118,000/131,500

Current acid-test ratio=0.90

Therefore the Current acid-test ratio will be 0.90

A mirror should be centered on a wall. The mirror is 4 feet wide and the wall is 20 feet wide. Which equation helps determine the distance x on each side of the mirror?

Answers

Answer:

A).  x + 4 + x = 20

Multiple-choices

A).  x + 4 + x = 20

B).  4 + x + 4 = 20

C).  x = 20 + 4 + 4

D).  4 = 20 + x + x

Explanation:

The mirror will be in the middle of a wall which is 20 feet wide.

If the mirror is 4 feet, then 4 will be in the middle.

X will be on either side of the 4feet mirror.

Therefore:

x + 4 + x =20

Barra was to blame those she consulted with for decisions that turned out wrong, but York credit for decisions that turned out right, she would be suffering from the

Answers

If Barra was to blame those she consulted with for decisions that turned out wrong but took credit for decisions that turned out right, she would be suffering from the d) self-serving bias.

What is self-serving bias?

Self-serving bias refers to the common habit of taking credit for positive events or outcomes but blaming outside forces for negative outcomes.

Age, culture, clinical diagnosis, and more factors affect a person's self-serving bias.  Self-serving bias is widely popular.

In this case, Barra is not affected by actor/observer difference, stereotyping effect, self-fulfilling prophecy, or fundamental attribution error.

Thus, when Barra takes credit for the right outcomes but turns to blame outside forces when the outcome turned out wrong, she is suffering from self-serving bias.

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Outdoor Goods needs $3.8 million to modernize its production equipment. The underwriters set the stock price at $29.50 a share with an underwriting spread of 7.35 percent. This would be a firm commitment underwriting. The estimated issue costs are $272,000. How many shares of stock must be sold to finance this project?A) 148,984B) 188,917C) 152,311D) 186,299E) 162,400

Answers

Answer:

A.148,984 shares

Explanation:

Calculation for How many shares of stock must be sold to finance this project

First step is to calculate the Total value of issue

Total value of issue = ($3,800,000 + 272,000) / (1 - .0735)

Total value of issue = $4,072,000/ 0.9265

Total value of issue = $4,395035.08

Now let calculate the Number of shares needed

Number of shares needed = $4,395035.08 / $29.50

Number of shares needed= 148,984 shares

Therefore the number of shares of stock that must be sold to finance this project is 148,984 shares

It is important to gather as many accounting metrics as possible because they have intrinsic value and do not need a context in which to be understood.
A. True
B. False

Answers

Answer:

A. True

Explanation:

The intrinsic value is the value in which there is a worth of an asset.

It can be calculated as

Intrinsic value = Current price - Strike price

In the case when the accounting metrics are collected due to intrinsic value also there is no need of context for understand

So the given statement is true

hence, the correct option is A.

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