Answer:
$253,372
Explanation:
Face Value = 3,400,000
Issue Price = 3,619,600
Bond Premium = 219,600
Jan 01, 2019
Balance in Bond Payable = 3,400,000
Book Value of Bonds = 3,619,600
Balance in Bond Premium = 3,619,600 - 3,400,000 = $219,600
30 June, 2019
Interest Payment = Balance in Bond Payable Jan 1 * 16%/2 = 3,400,000 * 14%/2 = $272,000
Interest expenses = Book Value of Bonds Jan 1 * 14%/2 = 3,619,600 * 14%/2 = $253,372.
Thus, the interest expense for the six months ending July 1, 2019 is $253,372
One effective way to manage credit card debt is to:
A. exaggerate your income when applying for a credit card.
B. spend your entire credit limit before making any payments.
C. replace high-interest credit cards with low-interest options.
D. always pay only the minimum payment required each month.
Answer:
C. replace high-interest credit cards with low-interest options.
Explanation:
A credit card provides a secure and convenient way to pay for goods and services even when they do not have money. The credit card gives the user access to instant credit every time they use it. The user does not incur any charges should they pay the amount due before its due date.
Credit card interest rate charges are among the highest in the industry. If the user is late in their payment, the interest fee and other charges accumulate real quick. Shifting to cards with lower interest is one way of managing credit card debts.
For the past year, Momsen, Ltd., had sales of $45,212, interest expense of $3,386, cost of goods sold of $15,609, selling and administrative expense of $11,196, and depreciation of $5,545. If the tax rate was 35 percent, what was the company's net income?
Answer:
$11,704
Explanation:
Given the above information, we will use the formula below to calculate the net income.
Net income= (Sales - cost of goods sold - selling and administrative expenses - interest - depreciation expense - depreciation) - tax + depreciation.
Sales
$45,212
COGS
($15,609)
Gross profit
29,603
Less:
Selling and administrative expense
($11,196)
Interest expense
($3,386)
Depreciation
($5,545)
EBT
$9,476
Tax $9,476 × 35% = ($3,317)
Depreciation
$5,545
Net income
$11,704
Effective teams have confidence in themselves and believe they can succeed. This confidence is called ________.
A) social facilitation
B) goal congruence
C) social loafing
D) team efficacy
E) self-serving bias
Answer:
D) team efficacy
Explanation:
Team efficacy can be defined as the joint or collective beliefs that the members of a team have in its capacity to effectively execute a specific project or task, accomplish its organizational set goals and objectives through the use of team efforts and skills.
Hence, effective teams have confidence in themselves and believe they can succeed. This confidence is called team efficacy because all the members of the team bring their own skills, viewpoints, experience, knowledge to achieve success.
If the general level of interest rates in the economy moves up, then investors will require a _____ rate of return on securities, and, in general, stock prices should _____ , ceteris paribus.
A. lower, increase
B. higher, decline
C. higher, increase
D. lower, decline
Answer:
B. higher, decline
Explanation:
Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.
If the general level of interest rates in the economy moves up, then investors will require a higher rate of return on securities such as bonds, and, in general, stock prices should decline because they are less volatile, ceteris paribus (all things being equal).
Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond?
a. the price of the bond will fall
b. the price of the bond will raise
Answer: a. the price of the bond will fall.
Explanation:
If one buys a 7% coupon, 20-year bond today when it’s first issued and the interest rates suddenly rise to 15%, the value of the bond will decrease.
This is because there's an inverse relationship between price and interest rates, that is, the increase in one variable will lead to the decrease in the other variable. When there is a rise in the inters rate, it should be noted that the payments on fixed coupon are worth less.
Therefore, the price of the bond will fall.
It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $1,000. Assuming an interest rate of 4% compounded annually, determine the capitalized cost for maintaining the statue.
Answer:
$24,630.54
Explanation:
Calculation to determine the capitalized cost for maintaining the statue
First step is to calculate the Effective interest rate
Effective interest rate = (1+.04/4) ^4 -1
Effective interest rate= 0.04060
Last step is to calculat the capitalized cost for maintaining the statue using this formula
Capitalized cost =Annual maintenance cost /Effective interest rate
Let plug in the formula
Capitalized cost = ($1,000/0.04060)
Capitalized cost = $24,630.54
Therefore the capitalized cost for maintaining the statue will be $24,630.54
A $10,000 bond with 18%/year, compounded semi-annually (interest is paid every six month) is available in the market. The bond matures in 10 years. The closest PW of this bond if the purchaser can earn 12%/year, compounded quarterly is:_____.
Answer:
present value = 13313.50
Explanation:
given data
bond = $10,000
interest = 18% per year = 9% per semi annual period
bond matures = 10 years = 20 semi annual period
purchaser can earn = 12% per year compounded quarterly = 3% per quater
so efftive semi annual rate is
efftive semi annual rate = (1+3%)² - 1
efftive semi annual rate = 6.09%
and
we get here coupon paymnet that is
coupon payment = 9% × $10,000
coupon payment = $900
so present value is
present value = 900 (P/A,6.09%,20) + 10000 (P/F,6.09%,20)
present value = 900 × 11.3865 + 10000 × 0.3065
present value = 13313.50
Compute the standard cost for one hat, based on the following standards for each that:_______. Standard material: 3/4 yard of fabric at $5.00 per yard Standard labor: 2 hours at $5.75 per hour Factory overhead: $3.20 per direct labor hourRound your answer to two decimal places. Total standard cost $______
Answer:
$21.65
Explanation:
Computation for the Total standard cost
Using this formula
Total standard cost = Material cost + Labor cost + Overhead cost
Let plug in the formula
Total standard cost = 3/4*5 + 2*5.75 + 3.2*2
Total standard cost= $21.65
Therefore the Total standard cost will be $21.65
XYZ Corporation, whose common stock is currently selling for $40 per share, is having a rights offering. The terms of the offering require 10 rights plus $35 to subscribe to one share of stock. Compute the theoretical value of a right before the ex-rights date.
Answer:
$0.45
Explanation:
Computation for the theoretical value of a right before the ex-rights date
Using this formula
Theoretical value=(Common stock-Required offering subscription shares)÷(Offering require right+1)
Let plug in the formula
Theoretical value= ($40 ‒ $35) ÷ (10+1)
Theoretical value= $5.00 ÷ 11
Theoretical value=$0.45
Therefore the theoretical value of a right before the ex-rights date will be $0.45
The human resources department at a major high tech company recently conducted an employee satisfaction survey of 100 of its 3000 employees.Data were collected on such variables as age,gender,marital status,current salary,level of overall satisfaction on a scale from 1 to 5,number of years with the company,and job title.Which of the variables listed are considered to be ratio level data?A) Age and years with the companyB) Gender and marital statusC) Job titleD) None of the variables is ratio level.
Answer: Gender and marital status and Job title.
Explanation:
Ratio scale simply refers to a form of quantitative variable measurement scale whereby differences can be compared by the researcher.
Of the options given among variables listed are considered to be ratio level data are gender, marital status and Job title.
The Extreme Reaches Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $3.00, $5.00, $7.50, and $10.00 a share over the next four years, respectively. After that the dividend will be a constant $2.50 per share per year forever. A) What is the market price of this stock if the market rate of return is 15 percent? Also estimate the dividend yield over the first year.
B) Continue from the previous problem. What is the market price of this stock in one year? What is the capital gains yield over the first year?
Im looking for help on part B, I have already completed part A but it would be helpful to check my answer. ($26.57/share)
Answer:
a)
Div₁ = $3
Div₂ = $5
Div₃ = $7.50
Div₄ = $10
Div₅ = $2.50
the terminal value at year 4 = $2.50 / 15% = $16.67
P₀ = $3/1.15 + $5/1.15² + $7.50/1.15³ + $26.67/1.15⁴ = $2.61 + $3.78 + $4.93 + $15.25 = $26.57
dividend yield over the first year = $3 / $26.57 = 11.29%
b)
P₁ = $5/1.15 + $7.50/1.15² + $26.67/1.15³ = $4.35 + $5.67 + $17.47 = $27.49
capital gains yield = ($27.49 - $26.57) / $26.57 = 3.46%
What's the future value of $55,000 after 20 years if the appropriate interest rate is 3%, compounded semiannually?
Answer:
$99,771
Explanation:
future value = present value x (1 + interest rate)ⁿ
present value = $55,000interest rate = 3% / 2 = 1.5% semiannualn = 20 years x 2 = 40 semiannual periodsfuture value = $55,000 x (1 + 1.5%)⁴⁰ = $55,000 x 1.81402 = $99,771
When interest is compounded semiannually, the effective interest rate is slightly higher than when it is compounded annually.
effective interest rate = (1 + 3%/2)² - 1 = 3.0225%
Suppose that instead of paying per hour, a moving company offers a flat rate of $1,200 for movers plus a truck for an eight hour day. If you hired this moving company and used them for the entire eight hours, how much consumer surplus would you gain?
Answer:
the first part of the question is missing, so I looked for a similar one (see attached image):
the cost of hiring a moving crew for 8 hours = $250 per hour x 8 hours = $2,000
the competing company offered you a deal worth $1,200
since you expect to use the moving crew during the whole 8 hours, you will gain = $2,000 - $1,200 = $800 in consumer surplus
Consumer surplus is the difference between what a consumer (in this case you) are willing to pay for a good or service and the actual price of the good or service. Consumer should be willing to consumer a good or service as long as the consumer surplus is ≥ 0.
800 dollars of consumer surplus would be earned.
We can arrive at this answer as follows:
You must calculate the cost of hiring the team. This will be done with the following calculation:[tex]250*8=2,000[/tex]
In this case, we can consider that the cost of hiring the team for eight hours of work will be [tex]2,000[/tex] dollars.
Then, we can calculate the difference between the team's hiring price and the $1,200 that the competitor offered. This will be done with the following calculation:
[tex]2,000-1,200=800[/tex]
With that, we can say that the consumer surplus is equal to 800 dollars.
The question above is incomplete. The full question is in the attached image.
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Yukelson Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows:
Cost when acquired $ 396,000
Accumulated depreciation (based on straight-line depreciation, an estimated life of 50 years, and a $36,000 residual value) 72,000
During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $30,000 (from $36,000)). The depreciation method will not change.
Required:
1. Compute the annual depreciation expense prior to the change in estimates.
2. Compute the annual depreciation expense after the change in estimates.3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?
Answer:
1. Compute the annual depreciation expense prior to the change in estimates.
annual depreciation = ($396,000 - $36,000) / 50 = $7,200 per year
2. Compute the annual depreciation expense after the change in estimates.
annual depreciation = ($324,000 - $30,000) / 20 = $14,700 per year
3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?
Any changes in an asset's useful life are reported prospectively, this means that they do not affect any past records, only future records are affected. In this case, the depreciation expense per year will increase form $7,200 to $14,700, so net income will be negatively affected by it. Cash flows will not be affected, since depreciation expense is a non-cash expense. P,P&E on the balance sheet will be affected because the net value of the building will decrease faster.
What are some types of performance that a manaer would have to control for a home health care agency? A. A health insurance companyB. A primary care clinicC. An outpatient surgery facilityD. A mental health counseling center E. A medical supply store
Answer:
A. A health insurance company
B. A primary care clinic
E. A medical supply store
Explanation:
Management control can be defined as how the role of various individuals and groups within an organization are being monitored, controlled, and regulated to perform specific actions and avoid other non-essential activities to accomplish the organization's goals.
For a health care agency, some types of performance the manager would have to control for a home health care agency are:
A health insurance company:
Their role is to ensure that high health care cost is made affordable to individuals.
They must also ensure that a top-notch health service is being provided to the patients.
A primary care clinic:
They are responsible for the prevention of disease outbreaks and counseling their clients about how to take good care of their health conditions.
A medical supply store:
They serve as an inventory supply unit that are liable for the distribution of medical supplies to the individuals.
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in August. The company’s flexible budget for August appears below:
Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q) 7,200
Revenue ($4.20q) $30,240
Expenses:
Packing supplies ($0.35q) 2,520
Oyster bed maintenance ($3,300) 3,300
Wages and salaries ($2,000 + $0.35q) 4,520
Shipping ($0.65q) 4,680
Utilities ($1,290) 1,290
Other ($460 + $0.01q) 532
Total expense 16,842
Net operating income $13,398
The actual results for August were as follows:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,200
Revenue $27,200
Expenses:
Packing supplies 2,690
Oyster bed maintenance 3,160
Wages and salaries 4,930
Shipping 4,410
Utilities 1,100
Other 1,152
Total expense 17,442
Net operating income $9,758
Required:
Compute the company’s revenue and spending variances for August.
Answer:
Quilcene Oysteria
Computation of revenue and spending variances for August:
Flexible Actual Variance
For the Month Ended August 31
Actual pounds (q) 7,200 7,200 None
Revenue ($4.20q) $30,240 27,200 $3,040 U
Expenses:
Packing supplies ($0.35q) 2,520 2,690 -170 U
Oyster bed maintenance ($3,300) 3,300 3,160 140 F
Wages and salaries ($2,000 + $0.35q) 4,520 4,930 -410 U
Shipping ($0.65q) 4,680 4,410 270 F
Utilities ($1,290) 1,290 1,100 190 F
Other ($460 + $0.01q) 532 1,152 -620 U
Total expense 16,842 17,442 -600 U
Net operating income $13,398 $9,758 -3,640 U
Explanation:
Quilcene Oysteria 's budget comparison with actual performance shows that there is an unfavorable variance of $3,640 arising from the less than impressive sales revenue and excessive spending incurred during August. The firm realized less revenue than budgeted and incurred more expenses than budgeted. The result is this unfavorable variance of $3,640.
Match each balance sheet item to its correct category.
Categories: Assets, Liabilities, Equity
Balance sheet items: Cash, Rent, Loan, wages payable, retained earnings, computers, furniture, owners personal investment
Answer:
See below
Explanation:
Assets, Liabilities, and Equity form the basis for preparing the balance sheet. They make the accounting equation of Assets= Liabilities + Equity.
Assets are the valuables a business owns. They can be in the form of cash, money in the banks, financial instruments, properties, machines, or motor vehicles.
Assets will be
Cashcomputers,furnitureLiabilities are what the business owes to third parties and supplies. Liabilities are usually in the monetary form, such as loans, rent, and accounts payable.
Liabilities
Rent, Loanwages payable,Equity is the owner's contribution to the business. They include capital and retained earnings.
Equity
retained owners personal investment earnings,Dusty Corporation began business on January 1, 2020. The corporate charter authorizes issuance of 100,000 shares of .01 par value common stock and 10,000 shares of $1 par value, 10% cumulative preferred stock. On July 1, 2020, Dusty issued 30,000 shares of common stock in exchange for three years of rent on a retail location. The cash rental price is $4,200 per month and the rental period begins July 1. How should Dusty adjust its financial statement for the issuance of the shares on July 1?
a. Increase cash by $151,200, and increase prepaid rent by $151,200.
b. Increase prepaid rent by $151,200, and increase common stock by $151,200.
c. Increase prepaid rent by $151,200, increase common stock by $300 and increase additional paid-in capital by $150,900.
d. Increase prepaid rent by $151,200, increase common stock by $150,900, and increase additional paid-in capital by $300.
Answer:
The answer is "Option c".
Explanation:
Dr. Cr.
Prepayment of rent 151,200
Popular stock 300
Extra capital expenditures 150,900
Dusty Corporation should adjust its financial statement to record the issuance of the shares on July 1, 2020 as follows:
c. Increase prepaid rent by $151,200, increase common stock by $300, and increase additional paid-in capital by $150,900.
Data and Calculations:
Authorized share capital:
100,000 shares, Common Stock at $0.01 par value = $1,000 ($100,000 x $0.01)
10,000 shares, 10% Cumulative Preferred Stock at $1 par value = $10,000 (10,000 x $1)
Analysis of Issuance:
30,000 shares, Common Stock at $0.01 par value = $300 (30,000 x $0.01)
Rental cost = $151,200 ($4,200 x 36 months)
Prepaid Expense $151,200 Common Stock $300 Additional Paid-in Capital $150,900 ($151,200 - $300)
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Parker is a highly skilled sales person at Byberry, which is a 30-year-old company that has grown significantly in terms of revenue and product offerings. It sponsors a pension plan that provides a benefit of 2% times the years of participation times the average of the final three years of salary. Parker has worked for Byberry for the last 30 years and earned $200,000 two years ago, $150,000 last year, and $250,000 this year. If he is retiring this year, how much should he expect to receive as a pension benefit?
Answer:
$120,000
Explanation:
The retirement benefit that Parker expects is
2% x number of years worked( 30 ) x {($200,000 +$150,000 +$250,000) /3}
=2/100 x 30 x (600,000/3)
=0.02 x 30 x $200,000
=0.6 x $200,000
=$120,000
Mounts Corporation produces and sells two products. In the most recent month, Product I05L had sales of $32,000 and variable expenses of $10,880. Product P42T had sales of $45,000 and variable expenses of $18,380. And the fixed expenses of the entire company were $46,070. The break-even point in sales dollars for the entire company is closest to
A. $75,330
B. $74,306
C. $30,930
D. $46,070
Answer:
B. $74,306
Explanation:
First, we need to calculate contribution margin for both.
Product 105L
Sales $32,000
Less variable expenses ($10,880)
Contribution margin $21,120
Contribution margin ratio = Contribution margin ÷ Sales
= $21,120 ÷ $32,000
= 66%
Product P42T
Sales $45,000
Less variable expenses ($18,380)
Contribution margin $26,620
Contribution margin ratio = Contribution margin ÷ Sales
= $26,620 ÷ $45,000
= 59.2%
Total sales for both products $77,000
Less Total variable expenses ($29,260)
Total contribution margin $47,740
Total contribution margin ratio $47,740 ÷ $77,000 = 62%
Fixed expenses for both companies = $46,070
Therefore,
Break even point in sales for both companies = Total fixed expenses ÷ Contribution margin ratio
= $46,070 ÷ 62%
= $74,306.45
When benchmarking measures against the best levels of performance, these best levels may be found:A. inside the organization.B. outside the organization.C. inside and outside the organization.D. None of these is correct.
Answer:
C. inside and outside the organization
Explanation:
Benchmarking is the process in which the company compared its products and processes with the other companies to measure its performance.
But for the best performance level here we have to considered it for both internal and outside organization that involves the customers, competitors, suppliers, etc
Therefore the correct option is c
And, the same is to be considered
Milner Company is working on two job orders. The job cost sheets show the following. Assign costs to work in process.
Job 201 Job 202
Direct materials $7,200 $9,000
Direct labor 4,000 8,000
Manufacturing overhead 5,200 9,800
Required:
Prepare the three summary entries to record the assignment of costs to Work in Process from the data on the job cost sheets.
Answer:
Full Question "(a) (To assign materials to jobs.) (b) (To assign labor to jobs.) (c) (To assign overhead to jobs.)"
No Date Account Title and Explanation Debit Credit
a Work in process inventory $16,200
($7,200+$9,000)
Raw material inventory $16,200
(To assign materials to jobs)
b. Work in process inventory $12,000
($4,000+$8,000)
Factory labour $12,000
(To assign labour to job)
c. Work in process inventory $15,000
($5,200+$9,800)
Manufacturing overhead $15,000
(To assign overhead to jobs)
the BE in units for CompuTech in 2021?
Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during
the year?
Question Completion:
Assuming the following: (i) the sales price for each CompuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is $45,000.
Q1: What is the BE in units for CompuTech in 2021?
Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year?
Answer:
CompuTech
Answer 1: The BE (Break-even Point) in units for CompuTech in 2021 is:
1,800 units.
Answer 2: If the variable cost of materials rose by 10%, the BE will increase to:
2,000 units.
Explanation:
a) Data and Calculations:
Selling price per unit = $50
Direct material cost per unit = $25
Contribution per unit = $25
Fixed Cost = $45,000
Break-even point = Fixed Cost/Contribution per unit
= $45,000/$25
= 1,800 units
b) BE if the variable cost of materials rose by 10% during the year:
Selling price per unit = $50
Direct material cost per unit =$27.50 ($25 * 1.1)
Contribution per unit = $22.50
Fixed Cost = $45,000
Break-even point = Fixed Cost/Contribution per unit
= $45,000/$22.50
= 2,000 units
c) The break-even point in units represents the quantity at which the costs of production equal the revenues for the goods. It is the point where no profit is made, but all the costs, including fixed costs, are covered by the revenues.
Scubapro Corporation currently has 500,000 shares of common stock outstanding and plans to issue 200,000 more shares in a seasoned equity offering. The current shareholders have pre-emptive rights on any new issues of common stock by Scubapro Corporation. How many shares would an investor who currently has 20,000 shares, have the right to buy if she exercises her pre-emptive right?A) 200,000 shares.
B) 120,000 shares.
C) 20,000 shares.
D) 12,000 shares.
E) 8,000 shares.
Answer:
Scubapro Corporation
The investor who currently has 20,000 shares has the right to buy this number of shares, if she exercises her preemptive right:
E) 8,000 shares.
Explanation:
Data and Calculations:
Outstanding common stock = 500,000
Planned issue of additional shares = 200,000
Proportion of new issue to outstanding = 0.40 (200,000/500,000)
For an investor with 20,000 shares, she has the right to buy 8,000 (20,000 * 0.40) additional shares.
Simon has net investment income of $38,000 and MAGI of $223,000 and files as a single taxpayer. Simon's additional Medicare tax is:______________
Answer:
$874
Explanation:
Calculation for Simon's additional Medicare tax
Based on the information given we were told Simon has a MAGI of the amount of $223,000 in which part of it is for wages income of the amount of $185,000 ($223,000 -$38,000)
while the amount of $38,000 is the net investment income which means that Samson MAGI is below the threshold limit of the amount of $200,000, therefore tax rate of 3.8% tax will be applied.
Now let calculate the additional Medicare tax
Additional Medicare tax = ($38,000-$15,000)*3.8%
Additional Medicare tax =$23,000*3.8%
Additional Medicare tax = $874
Therefore Simon's additional Medicare tax is:874
Suppose Shaan invested just $10,000 of his own money and had a $90,000 mortgage with an interest rate of 8.5 percent. After three years, he sold the property for $120,000.
(a) What is his gross profit?
(b) What is his net profit or loss? (Input the amount as a positive value.)
(c) What is the rate of return on investment? (Negative amount should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places.)
Answer:
a. $20,000
b. -$2,950
c. -29.50%
Explanation:
The computation is shown below:
a. Gross Profit is
= Sale value of Property - Invested amount - Mortgage amount
= $120,000 - $10,000 - $90,000
= $20,000
b. Net Profit
= Gross profit - number of years × mortgage amount × rate of interest
= $20,000 - 3 × $90,000 × 8.5%
= -$2,950
And,
c) Rate of return is
= Net profit ÷ invested amount
= -$2,950 ÷ $10,000
= -29.50%
The relevant production range for Challenger Trailers, Inc. is between 120,000 units and 190,000 units per month. If the company produces beyond 190,000 units per month:__________. A. the fixed costs and the variable cost per unit will not change B. the fixed costs may change, but the variable cost per unit will remain the same C. the fixed costs will remain the same, but the variable cost per unit may change D. both the fixed costs and the variable cost per unit may change
Answer: D. both the fixed costs and the variable cost per unit may change
Explanation:
It is said that Fixed costs do not change regardless of production level but this is not entirely true. Fixed costs usually do not change for a production range but if the range is passed, the fixed costs might then increase and a new fixed cost for the new relevant range will be charged.
Variable costs are variable because they change with production so if the company is producing more units, they will be incurring more variable costs.
In conclusion therefore, if the company produces more units than its relevant production range, it risks both fixed and variable costs changing.
First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually.If you made a $64,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 9 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Answer:
$13,341.39
Explanation:
The computation is shown below:
For First city bank,
The Future value is
= $64,000 + $64,000 × 7%× 9
= $64,000 + $40,320
= $104,320
And for Second city bank,
Given that
NPER = 9,
RATE = 7%,
PV = $64,000
PMT = $0
The formula is shown below:
=-FV(RATE;NPER;PMT;PV;TYPE)
After applying the above formula, the future value is $117,661.39
Now finally
More money would be
= $117,661.39- $104,320
= $13,341.39
You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7. The beta of the resulting portfolio is:_____
a. 1.08
b. 0.8
c. 1.40
d. 1.15
e. 0.36
Answer:
The answer is D). 1.15, hope this helps, have a great day/night, stay safe, happy thanksgiving!
Donna runs an inn and charges $300 a night for a room, which equals her cost. Sam, Harry, and Bill are three potential customers willing to pay $500, $325, and $250, respectively. When the government levies a tax on innkeepers of $50 per night of occupancy, Donna raises her price to $350. The deadweight loss of the tax is:________
a. $25
b. $50
c. $100
d. $150
Answer:
a. $25
Explanation:
According to the given situation, the computation of deadweight loss of the tax is shown below:-
Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)
Or, Deadweight Loss = 1 ÷ 2 × ($50)
Or, Deadweight Loss = $25
Therefore the correct option is a. $25
We simply considered the above values so that the deadweight loss of the ta could come
The deadweight loss of the tax is :
According to the given situation, the computation of deadweight loss of the tax is shown below:-
Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50) Deadweight Loss = 1 ÷ 2 × ($50) Deadweight Loss = $25The deadweight loss of the tax is $25.
Thus, the correct answer is a.
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