Answer:
it tells the other side of the trade you know what to do with the product and to fullfill the other sides expections
Explanation:
Because in many industries the cost of generating new ideas is so high, firms must charge a price ________ cost.a. equal to the marginalb. higher than the marginalc. lower than the marginald. equal to the average fixede. lower than the average fixed
Answer:
B. higher than the marginal
Explanation:
Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.
Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.
Because in many industries the cost of generating new ideas is so high, firms must charge a price higher than marginal cost in order to maximize profits or increase the amount of profits generated.
Steady Company’s stock has a beta of 0.20. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate of Steady Company’s cost of equity?
Answer:
the estimation of the cost of equity is 7.4%
Explanation:
The computation of the estimation of the cost of equity is shown below:
Here we used the Capital Asset Pricing model formula i.e.
Cost of equity = Risk free rate + Beta × market risk premium
= 6% + 0.20 × 7%
= 6% + 1.4%
= 7.4%
Hence, the estimation of the cost of equity is 7.4%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Daily demand for a product is 200 units. the production lead time is 2 days. a 1-day safety stokc is kept. how many kanban containers will be needed if one container holds 100 units?
Answer:6 kanban containers are needed
Explanation: Using the formula
Number of kanban containers =( dL + S)/C
Where
Average demand, d = 200
Lead time, L = 2 days
Safety stock is 1 day, S = 200 units
Quantity in containers, C = 100
Number of kanban containers = dL + S/C
= (200 x 2 + 200)/ 100 =400+200/100
= 600/100 = 6
Therefore 6 kanban containers are needed
Leia just read that the national debt owed by the federal government is at an all-time high. (Explain any possible impact on the federal government from unexpected inflation.)
Answer:
If the government of the country where Leia is from has a national debt at an all-time high, and at the same time, unexpected high inflation hits, the situation for the government can become extremely dire.
This is because high inflation will lower the value of the domestic currency, which is probably not the currency in which most of of the debt is owed. The proportion of the national debt that is owed in foreign currency will then become more expensive, because more units of domestic currency will be needed to exchange for the foreign currency, rendering the cost of the national debt a lot higher.
Your uncle repays a $300 loan from Tenth National Bank (TNB) by writing a $300 check from his TNB checking account. Assume these funds are the
only loans and deposits available for your uncle and the bank.
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July’s activities: On July 1:
Beginning inventories 850 units, 60% complete
Direct materials cost $5,000
Conversion costs $4,000
During July:
Number of units started 15,000
Direct materials added $155,000
Conversion costs added $83,520
On July 31:
Ending inventories 1,600 units, 40% complete
Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was:_________
Answer:
$227,270
Explanation:
The computation of the cost of goods completed and transferred out is shown below
Particulars Direct materials Conversion costs
Beginning inventories 0 340
(850 × 40%)
Units started
and completed 13400 13400
(15,000 - 1,600)
Ending inventories 1600 640
(1,600 × 40%)
Equivalent units 15000 14380
Current costs $155000 $83520
Cost per Equivalent unit $10.3333 $5.8081
Cost of goods completed and transferred out is
= ($5000 + $4000) + (340 × 5.8081) + 13400 × (10.3333 + 5.8081)
= $227,270
Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $250,000; land improvements are appraised at $75,000; and a building is appraised at $175,000.
Required:
a. Allocate the total cost among the three assets.
b. Prepare the journal entry to record the purchase.
Answer:
a. The cost of each of the assets will be proportional based on their individual costs.
Total individual costs = 250,000 + 75,000 + 175,000
= $500,000
Cost of land = 250,000/500,000 * 342,225 = $171,112.50
Cost of land improvements = 75,000/500,000 * 342,225 = $51,333.75
Cost of building = 175,000/500,000 * 342,225 = $119,778.75
b.
DR Land $171,112.50
Land Improvements $51,333.75
Building $119,778.75
CR Cash $342,225
To prevent everyone from passively agreeing with each other in quarterly department meetings, one person will now be required to openly point out all the possible things that could go wrong with each new project.
2. HomeSafe sells and installs wireless home security systems in 5 districts across the Midwest. HomeSafe has about 20 sales reps in each district. At the end of each year, the top sales rep from each district wins an extra week of paid vacation time to use in the following year.
3. Your organization is in a rut. Everyone is doing the same things they’ve always done and there’s nothing creative or groundbreaking happening. You have two employees retiring soon and decide to replace them with people from completely different industries to bring in novel perspectives and keep everyone on their toes.
4. People in your office seem to be afraid to try new things, so the company sets up a monthly brainstorming session where employees can safely present wild and innovative new ideas. The sessions happen after work hours, but everyone who attends and contributes at least one new idea gets to take the last Friday of the month off of work.
5. Some of your employees want to bring the company’s training program entirely online (option 1), while others think it’s best to keep a face-to-face component in addition to offering a few online sessions (option 2). Due to resource constraints, the company can only choose one option. The executives decide to assign one upper manager to argue for option 1 and another to argue for option 2. This will help them to gather the necessary facts to make a final call.
Question Completion:
Managers are constantly confronted with conflicts—both functional and dysfunctional-while trying to reach organizational goals. This activity is important because effective management requires the ability to stimulate functional conflicts.
The goal of this exercise is to challenge your knowledge of the techniques for stimulating functional conflict.
Select the most appropriate technique for stimulating functional conflict for each of the items listed below.
Options:
Spur competition among employees
Change the organization's culture and procedures
Bring in outsiders for new perspectives
Use programmed conflict
Answer:
1. Change the organization's culture and procedures
2. Spur competition among employees
3. Bring in outsiders for new perspectives
4. Spur competition among employees
5. Use programmed conflict
Explanation:
Functional workplace conflicts are purposeful conflicts that spur healthy, constructive, and problem-solving disagreements between functional groups or individuals. They help to identify problems early, as these regulated conflicts trigger some actions that may expose other underlying problems. They also improve productivity by galvanizing the workforce to improve their individual insights, relationships with others, and commitment to the achievement of organizational success. Functional conflicts should be encouraged by management, while efforts should be exerted to reduce dysfunctional conflicts through appropriate mediations.
When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.
Answer:
True.
Explanation:
When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.
Basically, structuring an organization typically involves making strategic decisions between choosing decentralization or centralization decision-making policy.
Hence, structuring an organization includes making strategic decisions with respect to span of control such as stating or deciding on how many employees will report to a manager, functions of each managers and the departmentalization of each department in the organization so as to successfully achieve its aims, goals and objectives.
Do mountains last forever?
Answer:
no eventually they die
Answer:
no mountains do not last forever..
Explanation:
the reaseon for that is root wedging and weathering of rocks
If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry, what impact would this have on the supply and demand in the market for airline service, assuming no other changes take place in this market?
Answer:
Salaries are an important input in any industry, including airlines, so a decrease in the cost of inputs should result in a rightward shift of the supply curve, decreasing equilibrium price and total quantity supplied. But this shift in the supply curve will not shift the demand curve, the equilibrium point will change but following the existing demand curve.
Which situation best illustrates an effect of the law of demand?
A. A car company increases sales when incomes rise in a city.
B. More children go to a theme park after a competing park shuts
down.
C. Customers stop going to a restaurant after it raises its prices.
D. A shop orders more computers when their selling price increases.
The correct answer is C
Answer: C. Customers stop going to a restaurant after it raises its prices
Explanation: (apx)
A political leader suggesting that an economic downturn will be cushioned by nondiscretionary fiscal policy is referring to:______. A) Tax policy and spending policy B) A progressive income tax and a welfare state C) Interest rates and the money supply D) Interest rates and tax rates
Answer:
Option A is the correct approach.
Explanation:
This is indeed a connection to compulsory tax and government expense stabilizers which weren't at the discretion including its government. Throughout the event of a recession, expenses are cut, rising discretionary income to something like the extent that the economic depression is pacified. Unemployment insurance, as well as other social programs, are consequently expanded without the clear intervention of the governmentThe other options offered are also not relevant to the scenario presented. So, the solution above is the right one.
Income taxes are taxes levied based on the income you earn. In the U.S., income taxes are progressive, which means that people with higher incomes pay a higher percentage of their income in taxes. Some lawmakers advocate a flat tax, in which every income earner pays the same percentage of income in taxes. A flat tax would significantly reduce the paperwork and rules and regulations associated with the income tax. However, changing the tax rules would cause much disruption in the economy as people changed their economic behavior in response to the change in the tax law.
a. True
b. False
Answer: a. True
Explanation:
Generally when tax rules are changed especially so drastically, people will indeed change their economic behavior in response and this will cause disruption in the economy.
In this scenario for instance, a flat tax would be more damaging to the rich that to the poor so a lot of the poor might lose their incentive to work knowing that so much of their earnings are being taken. They may also find ways to avoid paying taxes in general.
Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. Date Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $ 250 $ 5,000 March 5 Sale ($400 each) 15 March 9 Purchase 10 270 2,700 March 17 Sale ($450 each) 8 March 22 Purchase 10 280 2,800 March 27 Sale ($475 each) 12 March 30 Purchase 9 300 2,700 $ 13,200
Answer:
the information regarding the sales was missing, so I looked for similar questions:
The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.
Date Transactions Units Unit Cost Total Cost
March 1 Beginning inventory 20 $ 250 $ 5,000
March 5 Sale ($400 each) 15
March 9 Purchase 10 270 2,700
March 17 Sale ($450 each) 8
March 22 Purchase 10 280 2,800
March 27 Sale ($475 each) 12
March 30 Purchase 9 300 2,700 $ 13,200
Cost of good sold under specific identification:
March 5 sale = $250 x 15 = $3,750
March 17 sale = 8 x $270 = $2,160
March 27 sale = 12 x $280 = $3,360
total COGS = $9,270
Ending inventory = $13,200 - $9,270 = $3,930
Suppose that real gdp per capita in italy is $33,500. if real gdp per capita is growing at a rate of 1.6% per year, how many years will it take for real gdp per capita to reach $67,000?
Answer:
45 years
Explanation:
The computation of the number of years to reach the $67,000 real GDP per capita is shown below:
Here we use the rule of 72 that doubles the real gdp per capita
= 72 ÷ growth rate
= 72 ÷ 1.6%
= 45 years
In 45 years the real GDP per capita would be doubled that means from $33,500 to $67,000 it would be reached in 45 years
We simply applied the above formula so that the correct value could come
And, the same is to be considered
The following information is available for Randall Inc.
Accounts receivable $2,400
Cash $6,250
Accounts payable 3,700
Supplies 3,760
Interest payable 580
Unearned service revenue 850
Salaries and wages expense 4,500
Salaries and wages payable 745
Notes payable 31,500
Depreciation expense 670
Common stock 50,700
Equipment (net) 108,200
Inventory 2,840
Using the information above, prepare a balance sheet as of December 31, 2022. (Hint: Solve for the missing retained earnings amount after first determining total assets and total liabilities.) (List assets in order of liquidity.)
Answer:
Retained earning $35,375
Explanation:
Randall Inc.
Balance sheet as of December 31, 2022.
Current assets
Cash $6,250
Accounts receivables $2,400
Inventory $2,840
Supplies $3,760
Fixed asset
Equipment(net) $108,200
Total assets $123,450
Liabilities and Stockholders' equity
Liabilities
Notes payable $31,500
Accounts payable $3,700
Unearned service revenue $850
Salaries and wages payable $745
Interest payable $580
Total liabilities $37,375
Stockholders' equity
Common stock $50,700
*Retained earnings $35,375
Total stockholder's equity $86,075
Total liabilities and stockholder's equity $123,450
*Note: The value for retained earning is gotten by;
Retained earning = Total assets - [Common stock + Total liabilities]
Retained earnings = $123,450 - [$50,700 + $37,375]
Retained earnings = $35,375
Retained earning $35,375
Randall Inc.
Then Balance sheet as of December 31, 2022.
the Current assets are:
Cash $6,250
Accounts receivables $2,400
Inventory $2,840
Supplies $3,760
Fixed assetEquipment(net) $108,200
Total assets $123,450
also, Liabilities and Stockholders' equity
Liabilities
Notes payable $31,500
Accounts payable $3,700
Unearned service revenue $850
Salaries and wages payable $745
Interest payable $580
Then the Total liabilities is $37,375
Stockholders' equity
Common stock $50,700
*Retained earnings $35,375
Then the Total stockholder's equity is $86,075
After that the Total liabilities and stockholder's equity is $123,450
*Note that: The value for retained earning is gotten by;
Then Retained earning is = Total assets - [Common stock + Total liabilities]
After that Retained earnings = $123,450 - [$50,700 + $37,375]
Thus, Retained earnings = $35,375
Find out more information about fixed asset here:
https://brainly.com/question/15568817
Which of the jobs listed is likely to be the most influenced by creativity and the creative process?A) Warehouse workerB) ProgrammerC) ReceptionistD) Office manager
Answer:
C) Programmer
Explanation:
Creative process could be regarded as
a process of unconscious and conscious mind, it is a simple term of inspiration. It involves critical thinking and ability to solve problems with one skills. According to Graham Wallas who model a creative process, in the book of " The Art of Thought" told us about the stages involves in the creative process which are;
✓preparation (or saturation)
✓incubation
✓ illumination
✓ verification (or implementation).
Out of the given options only programming can be regarded as a creative process.
Answer:programmer
Explanation:
The general ledger of Pop's Fireworks includes the following account balances in 2021:
Accounts Debit Credit
Cash $21,200
Accounts Receivable 41,500
Allowance for Uncollectible Accounts $2,200
Supplies 6,700
Notes Receivable (8%, due in 2 years) 10,000
Land 85,000
Accounts Payable 12,300
Common Stock 106,000
Retained Earnings 29,900
Service Revenue 124,800
Salaries Expense 70,900
Utilities Expense 24,200
Supplies Expense 15,700
Totals $275,200 $275,200
In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above:
June 3 Provide additional services on account for $7,000. All services on account include terms 2/10, n/30.
June 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $5,000.
November 15 Write off customer accounts of $1,500 as uncollectible.
Required:
Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
June 3
Account Receivable $7,000 (debit)
Service Revenue $7,000 (credit)
June 8
Cash $4,500 (debit)
Discount allowed $500 (debit)
Accounts Receivables $5,000 (credit)
November 15
Bad Debt $1,500 (debit)
Accounts Receivables $1,500 (credit)
Explanation
The above transactions must be adjusted as they affect our transactions at the reporting date. Remember to grant the cash discount on early settlement of the payment made on June 8. The policy of sales on account is on the terms of 2% cash discount on payments made within 10 days.
Why do you think setting goals can influence an employee's safety-related actions in the workplace?
Answer in 200 words
Answer:
Setting goals helps with knowing what to focus on and what to do at work
This helps the employee do better at work because they know exactly what they are going for
Explanation:
Just write a bunch of things about the things I said above like try to go into more detail about them I tried helping but I don’t think I can write 200 words worth of explanation on here
Answer:
well there realy inportant
Explanation:
identify three of the many shared ethical standards among businesses that are incorporated in codes of ethics
Answer:
c. Social responsibility, fair pricing and truth in advertising.
Explanation:
The ethical standards shared by organizations that are incorporated into codes of ethics are: Social responsibility, fair price, truth in advertising.
A company needs to be ethical and transparent, this includes all its internal and external processes and systems. A company's social ethics can be demonstrated through responsibility to its stakeholders, which means that the company must promote the development of its employees, society and the environment.
The fair price refers to fair competition and the practice of prices consistent with its products and services, acting as a promoter to improve the quality of life of the population and enabling economic strengthening.
The truth in advertising corresponds to organizational transparency in promoting products and services consistent with what they offer in terms of price, quality, benefits, etc.
A company that complies with such ethical standards is much better positioned in the market and has a higher level of reliability by investors and consumers.
Answer: C. Social responsibility, fair pricing and truth in advertising.
Explanation:
Countries belonging to a ________ maintain whatever policies they see fit against nonmember countries.a) economic union.b) customs union.c) common market.d) free trade area.
Answer:
d) free trade area.
Explanation:
A free trade area refers to a region which comprises of a group of countries that have signed a free trade agreement to eliminate or reduce (limit) tariffs and non-tariffs or quotas among them.
A trade agreement can be defined as a pact or treaty signed between two or more countries to encourage the free flow (import and export) of goods and services among its members, as well as eliminating or reducing trade barriers such as quotas, tariffs on goods traded.
Trade agreements can cause jobs to go to countries that provide those jobs efficiently because all business entities or firms want to have competitive advantage over its rivals. Thus, business owners who have signed a treaty with other countries would tend to outsource or recruit workers from countries that provide their services efficiently.
Hence, countries belonging to a free trade area maintain whatever policies they see fit against nonmember countries
You have been texting with your friends trying to make plans for this evening. Your best friend Jocelyn is not sure if she will finish her homework in time to come out, but if she does, she wants to go to a new restaurant on the north end of town that you've both been wanting to try. Another group of friends is going to a restaurant on the south end of town, but you've already been to this restaurant and it was only okay. Overall, you would prefer to go to the restaurant with Jocelyn. But if Jocelyn isn't coming out, you would rather hang out with your friends than stay home. No one is returning your calls, but you need to get on the subway and head into town if you want to do anything this evening. You have to decide whether to head north or south. What can we say about a potential dominant strategy in this game?
Answer:
go north.
Explanation:
The potential dominant strategy in this game is to go north. This can be stated through the concept of dominant strategy, which means that the chosen strategy will be the most appropriate according to someone's perspective, that is, the strategy that will be most beneficial and useful.
In the case of the scenario above, it is possible to affirm that the dominant strategy is to go north because the statement provides information that the general, you prefer to go to the northern restaurant with Jocelyn, so this is configured as the correct option, regardless if the Jocelyn may or may not go, because in a dominant strategy what matters is to choose the most useful option for you, regardless of the actions of third parties.
Red Sun Rising just paid a dividend of $2.52 per share. The company said that it will increase the dividend by 30% and 25 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.8%. If the required return is 11.8%, what is the stock price today?a. $45.44.b. $42.51.c. $47.08.d. $25.00.e. $48.72.
Answer: e. $48.72.
Explanation:
Dividend next year is = 2.52 * (1 + 30%) = $3.276
Dividend in two years = 3.276 * ( 1 + 25%) = $4.095
Then calculate the terminal value at year 2;
= (Dividend * (1 + growth rate))/ (Required return - growth rate)
= (4.095 * (1 + 3.8%)) / (11.8% - 3.8%)
= $53.132625
Add their present values up;
= (3.276/( 1 + 11.8%)) + (4.095 / (1 + 11.8%)) + (53.132625 / ( 1 + 11.8%))
= $48.72
Some recent financial statements for Smolira Golf Corp. follow:
SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets
Assets Liabilities and Owners' Equity
2014 2015 2014 2015
Current assets Current liabilities
Cash $ 24,056 $ 24,200 Accounts payable $ 23,284 $ 27,200
Accounts receivable 12,548 15,300 Notes payable 12,000 10,900
Inventory 25,592 27,200 Other 11,671 15,900
Total $62,196 $ 66,700 Total $ 46,955 $ 54,000
Long-term debt $ 90,000 $103,000
Owners' equity
Common stock and
paid-in surplus $42,000 $42,000
Accumulated retained
earnings 208,936 233,000
Fixed assets
Net plant and
equipment $325,695 $365,300 Total $250,936 $275,000
Total assets $387,891 $432,000 Total liabilities and
owners' equity $387,891 $432,000
SMOLIRA GOLF CORP.
2015 Income Statement
Sales $336,329
Cost of goods sold 231,000
Depreciation 21,600
Earnings before interest and taxes $ 83,729
Interest paid 14,400
Taxable income $ 69,329
Taxes (35%) 24,265
Net income $45,064
Dividends $21,000
Retained earnings 24,064
1. The company's profit margin is __________ percent.
2. The total asset turnover is __________ times.
3. The equity multiplier is __________ times.
4. Using the Du Pont Identity, the company's ROE is __________ percent.
Answer:
1. The company's profit margin is 13.4% percent.
profit margin = net income / net sales = $45,064 / $336,329 = 13.4%
2. The total asset turnover is 0.82 times.
asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82
3. The equity multiplier is 1.7 times.
equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70
4. Using the Du Pont Identity, the company's ROE is 18.68% percent.
ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%
Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own. Unfortunately, owing to space limitations, Anna is unable to carry all varieties of kits originally assembled and must choose between two basic packages.
The Basic Kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Anna $16 and sells for $30. The second kit, called Stage 2, includes cut reeds that have already been dyed. With this kit the customer need only soak the reeds and weave the basket. Anna produces the Stage 2 kit by using the materials included in the Basic Kit. Because she is more efficient at cutting and dying reeds than her average customer, Anna is able to produce two Stage 2 kits in one hour from one Basic Kit. (She values her time at $18 per hour.) The Stage 2 kit sells for $36.
Prepare an incremental analysis for Anna's basket weaving studio.
Answer:
Stage 1 kit Stage 2 kit Differential amount
Selling price $30 $36 $6
Materials cost ($16) ($16) $0
per unit
Additional labor $0 $18/2 = ($9) ($9)
cost per unit
Contribution margin $14 $11 ($3)
per unit
Anna will lose $3 for every Stage 2 kit that she sells. Only if he is able to sell a much higher quantity of Stage 2 kits would it be worth it, but under current conditions Anna should focus on selling Stage 1 kits.
In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that of _____________. a. resource allocator b. resource controller c. a flexible resource d. an advocator of the status quo
Answer: c. Flexible resource
Explanation:
In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that of a flexible resource.
A flexible manager helps the employees achieve their potential as he or she tailors them in the right direction. They also help the workers to work productively which will be vital in the accomplishment of the goals of the organization.
Answer:
c. a flexible resource
Explanation:
A flexible resource use is the process by which businesses make changes to adapt to different circumstances in order to maintain competitive edge in the industry.
This method emphasises efficiency by use of available resources.
Resources employed include working tools and human resources.
This creates an environment where employees can achieve their potential as they move the organization towards its goals.
As new changes are made new roles are created that will lead to staff growth
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct material: 5 pounds at $8.00 per pound $40.00 Direct labor: 2 hours at $14 per hour28.00 Variable overhead: 2 hours at $5 per hour 10.00 Total standard variable cost per unit $78.00.The company also established the following cost formulas for its selling expenses:Fixed Cost per Month Variable Cost per Unit Sold Advertising $200,000 Sales salaries and commissions$100,000 $12.00Shipping expenses $3.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and incurred the following costs:Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. Total variable manufacturing overhead for the month was $280,500. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively.
1. What raw materials cost would be included in the company's flexible budget from March?
2. What is the raw materials quantity variance from March?
Answer:
1. $1,200,000
2. -$80,000 U
Explanation:
1. What raw materials cost would be included in the company's flexible budget from March.
= Units produced and sold × Direct materials
= 30,000 units × 5 pounds × $8 per pound
= $1,200,000
2. What is the raw materials quantity variance from March.
=(Standard quantity for actual production - Actual quantity for actual production) × Standard price.
Standard quantity = 5 pounds × 30,000 units = 150,000 units
Actual quantity = 160,000 units
Standard price = 8
= (150,000 - 160,000) × $8
= -$80,000 U
The risk-free rate of return is 7.5%, the expected rate of return on the market portfolio is 14%, and the stock of Xyrong Corporation has a beta coefficient of 2.8. Xyrong pays out 40% of its earnings in dividends, and the latest earnings announced were $25 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 16% per year on all reinvested earnings forever.What is the intrinsic value of a share of Xyrong stock?if the market price of a share is currently $67, and you expect the market price to be equal to the intrinsic value one year from now, calculate the price of the share after one year from now.What is your expected one-year holding-period return on Xyrong stock?
Answer:
The intrinsic value of a share of Xyrong stock = $68.075.
the expected one-year holding-period return on Xyrong stock = 0.27716.
Explanation:
Without mincing words, let's dive straight into the solution to the question above:
The intrinsic value of a share of Xyrong stock can be calculated as given below;
The intrinsic value of a share of Xyrong stock = [ (1 + growth rate) × G° ] ÷ (cost of equity - growth rate). -------------------(1).
=> Where, growth rate = 16%( 1 - 0.4) = 9.6% = 0.96.
=> Cost of equity = 2.8( 14 - 7.5) + 7.5 = 25.7% = 0.257.
Thus, slotting in the values into the equation (1) above, we have;
The intrinsic value of a share of Xyrong stock = [ (1 + growth rate) × G° ] ÷ (cost of equity - growth rate).
The intrinsic value of a share of Xyrong stock = [( 1 + 0.96) × 10] ÷ (0.257 - 0.96) = $68.075.
Hence, the expected one-year holding-period return on Xyrong stock = G° × ( 1 + growth rate) + [ (The intrinsic value of a share of Xyrong stock) × (1 + growth rate )] - market price of share ÷ market price of share.
= [ 10 × ( 1 + 0.96) + {$68.075 × (1 + 0.96)} - 67] ÷ 67 = 0.27716.
Which of the following best shows how the farmer’s records can help develop an accurate yield estimate in the scenario below?
A farmer has been keeping a complete crop nutrient management plan (CNMP) for the past decade.
A.)the CNMP provides previous years’ best timing, indicating optimal planting and harvest times
B.)the CNMP provides the farmer information on what inputs have been effective previously
C.)the CNMP records exact information regarding property and prior yield, allowing precise estimates
D.)the CNMP records prior estimated crop yields, allowing the farmer to average previous estimates
Answer:
A
Explanation: