The main answer is the futures price per unit above which there will be a margin call is $0.76. If the company does not meet the margin call, then the broker will close out the position in the market in order to bring the margin account back up to the maintenance level.
Explanation:A futures contract is a contract between two parties in which one party agrees to sell and the other party agrees to buy a particular commodity at some point in the future at a specified price.Short futures contractIn a short futures contract, the seller is obligated to sell the commodity at a future date for a predetermined price. Here, the company has entered into a short futures contract to sell 5,000 units of a commodity for 70 cents per unit.Initial margin and Maintenance marginThe initial margin is the amount of money required by the broker to be deposited by the buyer or seller of the futures contract in order to cover potential future losses.
The maintenance margin is the minimum amount of money required to be held in the account in order to keep the futures contract open.Margin callThe futures price per unit above which there will be a margin call can be calculated as follows:70 cents * 5,000 = $3,500 is the total amount of money that the seller will receive for selling 5,000 units of the commodity at 70 cents per unit.$4,000 - (5,000 * 70 cents) = $1,500 is the amount of money available for potential future losses.$1,500 / 5,000 = $0.30 is the maximum amount per unit that the futures price can fall before a margin call is triggered.The futures price per unit above which there will be a margin call is $0.76 ($0.70 + $0.06).If the company does not meet the margin call, then the broker will close out the position in the market in order to bring the margin account back up to the maintenance level.
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Ford is trading at a stock price today of $13.58. It's recent
annual earnings totaled $11,565,000,000 [that is, $11.565 billion].
Ford has 4,121,000,000 shares of common stock outstanding. Honda's
ear
If Honda's P/E multiple also applies to Ford where the Ford's stock price is $13.58 and Honda's stock price is $25.34, then it is advisable to buy the ford stock. The correct answer is option A.
To determine whether to buy or sell Ford stock based on the P/E multiple of Honda, we need to compare the P/E ratios of both companies.The P/E ratio (Price-to-Earnings ratio) is calculated by dividing the stock price by the earnings per share (EPS). It is a measure of the market's valuation of a company's earnings.
Let's calculate the P/E ratios for both Ford and Honda:
For Ford:
Earnings = $11,565,000,000
Shares outstanding = 4,121,000,000
Earnings per share (EPS) = Earnings / Shares outstanding
EPS = $11,565,000,000 / 4,121,000,000
EPS ≈ $2.8046
For Honda:
Earnings per share (EPS) = $3.14 (given)
Now, we can calculate the P/E ratios for both companies:
For Ford:
P/E ratio = Stock price / EPS
P/E ratio = $13.58 / $2.8046
P/E ratio ≈ 4.83
For Honda:
P/E ratio = Stock price / EPS
P/E ratio = $25.34 / $3.14
P/E ratio ≈ 8.08
Based on the P/E ratios, we can see that Honda has a higher P/E ratio (8.08) compared to Ford (4.83). If you believe that Honda's P/E multiple should also apply to Ford, it suggests that Ford may be undervalued relative to Honda.
Therefore, based on this comparison, you may consider buying Ford stock i.e. option A.
The complete question must be:
Ford is trading at a stock price today of $13.58. It's recent annual earnings totaled $11,565,000,000 [that is, $11.565 billion]. Ford has 4,121,000,000 [that is, 4.121 billion] shares of common stock outstanding. Honda's earnings per share is currently $3.14. Honda's stock price is currently $25.34. If you thought that Honda's P/E multiple should also apply to Ford what should you do?
Buy Ford Stock
Sell Ford Stock
Cannot determine with this information
No answer text provided.
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With no concern on the legality, if you are given a choice, which market structure (either perfect competition or monopoly or oligopoly or monopolistic competition) that will you choose? Explain the r
If given a choice with no concern for legality, I would choose a monopoly market structure.
A monopoly market structure refers to a situation where a single firm has exclusive control over the supply of a product or service in the market. In such a scenario, the monopolistic firm enjoys significant market power and can set prices and output levels to maximize its own profits.
By operating as a monopoly, the firm can potentially achieve economies of scale and efficiency in production. With no competition, the monopolist can also charge higher prices, leading to increased profitability. Additionally, monopolies often have the ability to invest heavily in research and development, driving innovation and technological advancements.
However, it is important to note that in a real-world context, monopolies can have negative consequences, such as reducing consumer choice, distorting market efficiency, and potentially exploiting their market power. Competition is generally considered beneficial for consumers as it leads to lower prices, increased variety, and improved quality of goods and services. Therefore, the choice of a monopoly market structure, while potentially advantageous for the firm, may not be socially optimal.
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ronald purchased a computer on march 4, 2022 for $3,200 for use in his accounting practice. how much can he deduct in 2022?$3,200$1,600$640$0
The amount Ronald can deduct in 2022 for the computer purchase is $3,200 if he qualifies for the Section 179 deduction.
The allowance for the acquisition of the PC in 2022 will rely upon the relevant expense rules for deterioration of business resources.
On the off chance that Ronald fits the bill for the Part 179 allowance under the U.S. charge code, he might have the option to deduct the full $3,200 in 2022. The Part 179 derivation permits private companies to discount the expense of qualifying resources in the time of procurement.
In any case, in the event that Ronald doesn't fit the bill for the Part 179 allowance or decides not to take it, he would commonly deteriorate the PC over its valuable life.
The particular deterioration technique and valuable life will rely upon the assessment guidelines in his purview. Expecting a straight-line deterioration technique and a valuable existence of 5 years, he would deduct $640 ($3,200 isolated by 5) in 2022.
Thusly, the derivation for Ronald in 2022 could be either $3,200 or $640, contingent upon the expense rules applied.
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Assume you just purchased shares in an investment company reporting $500M in assets and $50M in liabilities with 50M shares outstanding. What is the net asset value (NAV) of these shares?
A. $12
B. $9
C. $10
D. $1
The net asset value (NAV) of these shares is $9. The correct answer is B. $9.
A financial metric called Net Asset Value (NAV) per share is used to calculate the value of each share of a mutual fund or investment company. It is calculated by dividing the net asset value of the fund by the total number of outstanding shares.
Net assets = Assets - Liabilities
Net assets = $500M - $50M
Net assets = $450M
NAV per share = Net assets / Shares outstanding
NAV per share = $450M / 50M shares
NAV per share = $9
The correct answer is B.
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"KAR Ltd is a manufacturing company which produces and sells a single product. The
following information relates to April and May 2022:
April May
Sales volume 1,800 units 3,450 units
Production volume 2,250 units 3,000 units
a) Calculate the unit product costs using absorption costing principles.
b) Prepare a statement of profit or loss for April and May using:
i) Marginal costing principles.
ii) Absorption costing principles.
Fixed Production overheads (£’s) 13,500 13,500
The selling price per unit is £90 and the direct costs (including materials and labour) per unit
are £24. The normal level of activity is 2,700 units per month and fixed production overheads
are budgeted for £13,500 per month and a predetermined fixed cost per unit is calculated
for absorption purposes.
There was no opening inventory at the beginning of April."
The unit product costs using absorption costing principles is £29. The statement of profit or loss for April and May using Marginal costing principles is Net Profit £105,300 £214,200 and Absorption costing principles is Net Profit £75,050 £170,200.
(a) Calculation of unit product costs using absorption costing principles:
KAR LtdSales
Volume 1,800 units 3,450 units
Production Volume 2,250 units 3,000 units
Fixed Production Overheads (£’s) 13,500 13,500
Direct Costs per unit £24 £24
Predetermined Fixed Cost per unit is calculated for absorption purposes.
To calculate unit product cost, we first need to calculate the amount of Fixed Production Overheads (FPO) absorbed per unit, which is determined by dividing total FPO by the normal level of activity per month:
£13,500 ÷ 2,700 units = £5 per unit.
Production Volume in April 2022 = 2,250 units
Unit Product Cost = Direct Costs per unit + Fixed Production Overheads per unit
= £24 + £5
= £29
Production Volume in May 2022 = 3,000 units
Unit Product Cost = Direct Costs per unit + Fixed Production Overheads per unit
= £24 + £5
= £29
Therefore, The unit product costs using absorption costing principles is £29.
(b) Statement of Profit or Loss for April and May using:
Marginal costing principles.
April May
Sales Revenue (1,800 x £90) £162,000 (3,450 x £90) £310,500
Direct Costs (1,800 x £24) £43,200 (3,450 x £24) £82,800
Contribution (1,800 x £66) £118,800 (3,450 x £66) £227,700
Fixed Production Overheads £13,500 £13,500
Net Profit £105,300 £214,200
Absorption costing principles.
April May
Sales Revenue (1,800 x £90) £162,000 (3,450 x £90) £310,500
Unit Product Cost (calculated in part a) £29 £29
Direct Costs (1,800 x £24) £43,200 (3,450 x £24) £82,800
Fixed Production Overheads (2,250 x £5) £11,250 (3,000 x £5) £15,000
Cost of Goods Sold £73,450 £126,800
Gross Profit £88,550 £183,700
Fixed Production Overheads £13,500 £13,500
Net Profit £75,050 £170,200.
Therefore, the statement of profit or loss for April and May using Marginal costing principles is Net Profit £105,300 £214,200 and Absorption costing principles is Net Profit £75,050 £170,200.
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On February 4, 2020, Jackie purchased and placed in service a car she purchased for $21,600. The car was used exclusively for her business. (Use Table 6A-1 and Luxury Automobile Depreciation)
Required:
Compute Jackie’s cost recovery deduction in 2020 assuming no §179 expense but the bonus was taken:
If Jackie purchased and placed in service a car she purchased for $21,600 on February 4, 2020 and the car was used exclusively for her business, the cost recovery deduction for Jackie in 2020 is $25,200.
Bonus depreciation is a new tax provision that allows you to deduct up to 100 percent of the cost of qualified property in the year it is placed in service. Bonus depreciation is taken after the Section 179 deduction is taken. In 2020, the car purchased by Jackie is considered to be a passenger automobile, which means it is subject to a limit on the amount of depreciation that can be claimed each year. The amount of depreciation that can be claimed for 2020 is $18,000. In addition, Jackie is eligible for a bonus depreciation of 100% on the cost of the car. Therefore, the total depreciation for 2020 would be: $21,600 - $18,000 = $3,600 (depreciation for regular limits)
The bonus depreciation is $21,600 × 100% = $21,600
So, Jackie’s cost recovery deduction in 2020 assuming no §179 expense but the bonus was taken is $3,600 + $21,600 = $25,200.
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how is each property owner's tax bill determined
a subtract the tax districts tax rate from the property value
b multiply the tax districts tax rate times the taxable value of the property
c multiply the tax districts tax rate times the gross assessed value of the property
d divide the gross accessed value by the net value and then multiply that amount times the taxing districts tax rate
The way each property owner's tax bill is determined is to multiply the tax district's tax rate times the taxable value of the property. Option B is correct.
Property tax bills are based on a rate per $1,000 of taxable value of the property, rather than the actual assessed value of the property. The taxable value of the property is what is used to calculate the property owner's tax bill. The taxable value is a percentage of the assessed value. It is determined by subtracting any applicable exemptions or adjustments from the assessed value of the property.
The taxable value of the property is then multiplied by the tax district's tax rate to determine the amount of property tax that the property owner owes.
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2. The internal rate of return on an investment refers to the interest rate earned on the: a. Recovered money from an investment. b. Unrecovered balance of the investment. c. Income from an investment. d. Initial investment.
The internal rate of return on an investment refers to the interest rate earned on the: Initial investment. (Option d)
The correct answer is d. Initial investment.
The internal rate of return (IRR) is a financial metric used to measure the profitability of an investment. It represents the interest rate at which the net present value (NPV) of the investment becomes zero. In other words, it is the rate at which the present value of cash inflows equals the present value of cash outflows.
The IRR is based on the initial investment, which includes the cash outflow required to start the investment project. It does not refer to the recovered money, unrecovered balance, or income from the investment. Instead, the IRR calculates the rate of return on the initial investment to determine its profitability.
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Why do we use the market rate to calculate the price of bond rather than the bond's stated interest rate? In what ways is a capital lease equivalent to a mortgage? What are the advantages and disadvantages to leasing?
We use the market rate to calculate the price of a bond rather than the bond's stated interest rate because the market rate reflects the current prevailing interest rates in the market.
The present value of a bond's future cash flows, which include periodic interest payments (coupon payments) and principal repayment at maturity, determines the bond's price. The market rate, which represents the yield investors want for investing in comparable bonds at the time of valuation, is taken into account in the present value computation. The bond price will be greater if the market rate is lower than the bond's stated interest rate and lower if the market rate is higher than the bond's stated interest rate. Using the market rate allows the bond's price to align with the prevailing market conditions.
A capital lease is a type of lease that is essentially equivalent to a mortgage. Both involve long-term financing arrangements for acquiring assets. Ways in which a capital lease is equivalent to a mortgage:
Ownership: In both cases, the lessee (in a capital lease) or the borrower (in a mortgage) gains ownership of the asset at the end of the lease or loan term, respectively, after fulfilling the payment obligations.
Financing: Both capital leases and mortgages involve borrowing money to acquire an asset.
Interest: Both capital leases and mortgages come with interest costs. The lease payments in a capital lease consist of both repayment of principal as well as interest payments.
The advantages and disadvantages to leasing are as follows:
Advantages to Leasing
Lower upfront costs: Leasing often requires lower upfront costs compared to purchasing the asset outright, making it more accessible for businesses with limited capital.
Flexibility: Leasing gives businesses access to assets without the commitment of ownership over the long term. It offers flexibility to update hardware or change capacity as necessary.
Off-balance sheet financing: Operating leases in particular may be set up so that the leased property and any related obligations are kept off the lessee's balance sheet, potentially enhancing financial ratios and creditworthiness.
Disadvantages to Leasing
Higher overall costs: Over the long run, leasing can be more expensive overall than buying the asset since lease payments accrue without creating equity in the asset.
No equity or ownership: Unlike ownership, leasing does not provide the lessee an interest in the asset through equity or ownership.
Limited customization: Because leased assets are often standardised for lease purposes, they may not be as customizable as purchased assets.
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Number 1 1. Equity and Liabilities 1. Shareholders' funds a) Share capital b) Reserves and surplus c) Money received against share warrants 2. Non-current Liabilities 3. Current Liabilities II. Assets
Equity and liabilities represent the sources of funds that have been invested in the company. Equity represents the funds invested by the owners and shareholders in the business. Liabilities represent the funds borrowed by the business from the creditors. Both equity and liabilities are the sources of financing for the company.
The various types of Equity and Liabilities are:1. Shareholders' funds: This represents the funds invested by the shareholders in the business. Shareholders' funds consist of the following:
a) Share capital
b) Reserves and surplus
c) Money received against share warrants
2. Non-current Liabilities: Non-current liabilities are those that are due for payment after a year. Examples include long-term loans, bonds, etc.
3. Current Liabilities: Current liabilities are those that are due for payment within a year. Examples include trade payables, bank overdrafts, etc.
Assets are the economic resources owned by the business that provide future economic benefits. Assets are categorized into two types:
Current Assets: These are assets that are expected to be converted into cash within a year. Examples include cash, inventory, etc.
Non-Current Assets: These are assets that are expected to provide economic benefits for more than a year. Examples include property, plant, and equipment, investments, etc.
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in the market for cigarettes, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. a tax of $3.50 per pack is imposed on cigarettes. the tax reduces the equilibrium quantity in the market by 5,000 packs. the deadweight loss from the tax is
To calculate the deadweight loss from the tax, we need to consider the changes in consumer surplus and producer surplus caused by the tax.
1. Determine the initial equilibrium:
Before the tax is imposed, we have an initial equilibrium quantity and price in the market.Let's denote the initial equilibrium quantity as Q0 and the initial equilibrium price as P0.2. Calculate the equilibrium quantity after the tax:
The tax reduces the equilibrium quantity in the market by 5,000 packs.The new equilibrium quantity is Q0 - 5,000.3. Calculate the new equilibrium price after the tax:
The supply curve is upward-sloping, so the tax shifts the supply curve upward by the amount of the tax.The new equilibrium price is the price at which the new quantity demanded (Q0 - 5,000) equals the new quantity supplied.Let's denote the new equilibrium price as P1.4. Calculate the change in consumer surplus:
Consumer surplus is the area above the demand curve and below the price line.The change in consumer surplus is the difference between the initial consumer surplus and the new consumer surplus after the tax.5. Calculate the change in producer surplus:
Producer surplus is the area below the supply curve and above the price line.The change in producer surplus is the difference between the initial producer surplus and the new producer surplus after the tax.6. Calculate the deadweight loss:
Deadweight loss is the loss of economic efficiency caused by the tax.It is the reduction in total surplus (consumer surplus + producer surplus) caused by the tax.The exact calculation of the deadweight loss requires more specific information about the demand and supply curves, as well as their equations and intercepts. Without this information, it is not possible to provide a precise numerical calculation of the deadweight loss.
About MarketA market is a market structure in which there are many sellers or companies that produce goods. Perfect competition market is also defined as a market that has many companies to provide services to buyers in the market.
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An outside business associate generously offers you a gift. What is the policy in regards to accepting an item from an outside business associate?
A An item cannot be accepted from an outside business associate. If offered, given, requested, or accepted in exchange for or to induce referrals or other business that may be reimbursed by a Federal health care program.
B You may accept the gift if the Outside Business Associate assures you that there is no intent to induce a referral or other business.
C You may always accept a gift from an Outside Business Associate regardless of the situation.
The policy in regard to accepting an item from an outside business associate is an item that cannot be accepted from an outside business associate. If offered, given, requested, or accepted in exchange for or to induce referrals or other business that may be reimbursed by a Federal health care program.
An item cannot be accepted from a third-party business associate if it is provided, given, requested, or accepted in exchange for or in order to induce referrals or other business that may be reimbursed by a Federal health care program.
This policy complies with standards governing federal health-care programs such as Medicare and Medicaid. Accepting presents in exchange for referrals or other business may violate anti-kickback regulations, which are intended to prevent illegal financial agreements in the healthcare profession.
Specific policies may differ based on the organization and the jurisdiction in which it operates. To ensure compliance, always examine the organization's policies as well as any applicable laws or regulations.
Therefore, option A is correct.
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Clark Company's master budget includes $324,000 for equipment depreciation. The master budget was prepared for an annual volume of 54,000 chargeable hours. This volume is expected to occur uniformly t
The flexible-budget amount for equipment depreciation in September is $24,000, which matches the company's actual depreciation expense for the month.
To determine the flexible-budget amount for equipment depreciation in September, we need to calculate the depreciation expense based on the actual volume of chargeable hours incurred during that month.
First, let's determine the monthly depreciation rate:
Monthly Depreciation Rate = Total Annual Depreciation / Total Annual Chargeable Hours
= $324,000 / 54,000 chargeable hours
= $6 per chargeable hour
Next, we calculate the flexible-budget amount for equipment depreciation in September using the actual chargeable hours:
Flexible-Budget Depreciation Expense = Actual Chargeable Hours x Monthly Depreciation Rate
= 4,000 chargeable hours x $6 per chargeable hour
= $24,000
Therefore, the flexible-budget amount for equipment depreciation in September is $24,000. This means that the company's actual depreciation expense for the month matches the amount projected in the flexible budget.
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Complete question:
Clark Company’s master budget includes $324,000 for equipment depreciation. The master budget was prepared for an annual volume of 54,000 chargeable hours. This volume is expected to occur uniformly throughout the year. During September, Clark performed 4,000 chargeable hours, and the firm recorded $24,000 of depreciation expense.
1. Determine the flexible-budget amount for equipment depreciation in September.
REAL ESTATE:
in order to sell real estate to public for compensation all
entities must licensed except?
a) property management companies
b) partnerships
c) corporations
d) financial institutions?
Is real estate a type of corporation or financial institution.
Real estate is not a type of corporation or financial institution. Real estate refers to a type of property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water. The term real estate is commonly used in legal contexts such as when buying or selling a property or in the context of a legal dispute. Real estate can also refer to the profession of buying, selling, or renting land, buildings, or housing.
Typically, a financial institution is defined as a business that processes and facilitates financial transactions like loans, mortgages, and deposits. Monetary establishments are where purchasers can really oversee profit and foster monetary balance.
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q13
estion 13 1 points Save Ar On January 1, 2019, Hamad Town Co. purchased a machine for $240,000. It is estimated that the machine will have a 10-year useful life or 100,000 units over its useful life.
Hamad Town Co. incurred a depreciation expense of $[tex]8,400[/tex] in [tex]2021[/tex] for the machine purchased at a cost of $[tex]240,000[/tex].
The given scenario involves Hamad Town Co. purchasing a machine for[tex]\$\ 240,000[/tex], which is expected to have a useful life of [tex]10[/tex] years or 100,000 units. To calculate depreciation expense, the formula (Cost of an asset - Salvage value) / Useful life of asset is applied. Depreciation expense per unit is determined as [tex]\$\ 2.4[/tex]. With a total production of [tex]6,000[/tex] units over the years, the depreciation expense for [tex]2021[/tex] is calculated as $[tex]8,400[/tex]. Therefore, in [tex]2021[/tex], the company incurred a depreciation expense of $[tex]8,400[/tex]for the machine. This calculation considers the units produced and the predetermined depreciation rate per unit.Hence, Hamad Town Co. incurred a depreciation expense of $[tex]8,400[/tex] in [tex]2021[/tex] for the machine purchased at a cost of $[tex]240,000[/tex].
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work has different functions and processes. Explain how the
organizational processes are impacted by different internal
environmental factors? with harvard style referencesplease
Organizational processes are procedures and activities that organizations engage in to achieve their goals and objectives. The internal environment of an organization is an essential factor that affects the operations and the management of its organizational processes. The internal environmental factors that impact organizational processes are power and culture.
Power is an essential internal environmental factor that impacts the organizational processes. Power is the ability to influence others or control the environment. The organizational structure of the firm determines the power dynamics in the organization. In a hierarchical organizational structure, the power is centralized, and the decision-making authority is vested in the top management.
The centralized power structure limits the autonomy of the employees, and they have to follow the instructions of the management. In contrast, in a decentralized power structure, the employees have more autonomy, and they can make decisions independently.
Culture is another internal environmental factor that impacts the organizational processes. The organizational culture is the shared values, beliefs, and practices of the organization. The culture of an organization is shaped by its history, mission, and vision. The culture of the organization affects the behavior and attitude of the employees, and it influences the way they perceive the organizational processes.
If the culture of the organization is innovative and flexible, the employees will be more open to change, and they will be more willing to experiment with new processes. If the culture of the organization is rigid and bureaucratic, the employees will resist change, and they will be more focused on following the established processes.
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Please answer the following questions about cartels and the specific case of OPEC Which of the following is generally true of cartels? Which of the following is true of OPEC? Cartels usually raise prices by expanding output Cartels never stick to their agreed-upon quotas. Cartels collude to raise prices and profits OPEC includes only nations from the middle east. OPEC sets production quotas in order to restrict supply Saudi Arabia is an occasional and minor player in OPEC. The United States is a leading member of OPEC In the U.S.,cartel members can legally meet to set prices.
Cartels, including OPEC, are known for colluding to raise prices and increase profits. OPEC, specifically, sets production quotas to restrict the supply of oil and influence oil prices in the global market.
However, it is important to note that some statements provided in the question are incorrect, such as the inclusion of only Middle Eastern nations in OPEC or the involvement of Saudi Arabia and the United States as members of OPEC, which are not accurate.
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.1. Which of the following is an example of why a company may use equipment long after replacements would be economically justified?
a. Increased demand that cannot be met with the current equipment.
b. Uncertainty regarding the future
c. Changing user and customer preferences and expectations.
d. Alternative ways of obtaining the functionality provided by the defender.
Uncertainty regarding the future is an example of why a company may use equipment long after replacements would be economically justified. Option B is the correct answer.
Equipment that is utilized in testing and production by many businesses has to be maintained or replaced on a regular basis. A big defense contractor operates with the help of a variety of cutting-edge production tools. The support equipment is used in combination with these production tools. Different problems might be brought on by breakdowns. Option B is the correct answer.
When the manufacturing equipment is not in operation, they might occasionally happen in support equipment. Outages that delay production and result in missed deadlines might be caused by long lead periods for new parts or prolonged repair durations. These may have negative effects on award money from ongoing contracts in the short term, and they may result in fewer contracts and programs overall in the long run.
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In a sell or process further decision, joint costs are:
sunk costs.
opportunity costs.
relevant costs.
incremental costs.
In a sell or process further decision, joint costs are relevant costs.
Joint costs refer to costs incurred in a production process where multiple products or outputs are produced simultaneously from a common input. When deciding whether to sell a product at the split-off point or process it further, joint costs are considered relevant costs. Relevant costs are costs that are future-oriented and differ among alternative courses of action.
Sunk costs are costs that have already been incurred and are not relevant to decision-making. Opportunity costs are the benefits forgone by choosing one alternative over another. Incremental costs refer to the additional costs incurred by selecting a particular alternative.
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.A monopolist uses the profit-maximizing rule of marginal revenue equals marginal cost to determine ______ and ______
A monopolist uses the profit-maximizing rule of marginal revenue equals marginal cost to determine Output and Price.
Like any business, the monopolist will make money when total revenues are less than total costs. Although a monopolist can set any price for its product, the price is still limited by the market's willingness to pay for the firm's goods.
Consumers cannot be forced to buy a monopolist's product, not even one that is fully protected by strong entry barriers. Because the monopolist is the sole company operating in the market, its demand curve is identical to the market demand curve, in contrast to a properly competitive firm's demand curve. Due to the limited quantity, low output levels provide very little overall revenue. Because of the market price pressure caused by the high quantity, high output levels provide comparatively less income.
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what is the macroeconomic lesson's impact on local public agency
decision-making?
The impact of macroeconomic lessons on local public agency decision-making can be significant. Macroeconomics deals with the study of the overall economy, including factors such as economic growth, inflation, unemployment, fiscal policy, and monetary policy.
These concepts and principles can provide valuable insights for local public agencies when making decisions that affect their jurisdiction.
Economic Stability: Macroeconomic lessons emphasize the importance of maintaining economic stability. Local public agencies can consider these lessons to understand how their decisions may impact the stability of the local economy. For example, they may assess the potential effects of infrastructure investments, tax policies, or regulations on employment, business growth, and overall economic well-being.
Fiscal Policy: Macroeconomic lessons can guide local public agencies in understanding the implications of their fiscal decisions. They can analyze the effects of taxation, government spending, and budget deficits on the local economy. This knowledge can help them make informed decisions on resource allocation, public investment, and managing public finances.
Monetary Policy: Macroeconomic lessons also provide insights into the impact of monetary policy on the economy. Local public agencies can consider the effects of interest rates, money supply, and credit availability on local businesses, investment, and consumer spending. This understanding can guide their decisions related to local financial institutions, development projects, and economic stimulus measures.
External Factors: Macroeconomic lessons highlight the interconnectedness of economies and the influence of global factors. Local public agencies need to consider how international trade, exchange rates, and global economic conditions may affect their jurisdiction. They can adapt their policies and strategies accordingly to mitigate risks and seize opportunities arising from these external factors.
Economic Indicators: Macroeconomic lessons emphasize the importance of monitoring and analyzing economic indicators to assess the overall health of the economy. Local public agencies can use these indicators, such as GDP growth, inflation rates, and unemployment rates, to evaluate the performance of their jurisdiction and identify areas that require attention or intervention.
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Find the NPV of a project with the following cash flows: Year 0 1 2 3 4 5 6 7 8 9 Costs 90000 0 1000 8000 0 0 0 0 0 Benefits 0 1000 6000 16000 5000 5000 5000 5000 5000 5000 While the numbers are cutoff at year 9, assume the 5000 benefit continues until year 50. Assume 4% is the appropriate real discount rate. (You may assume that the #'s are in real dollars.) What is the NPV? What is the benefit cost ratio? (l.e. Total Benefits/Costs) Would you recommend this project?
The NPV of the project is -$22,615.47, and the benefit-cost ratio is 2.25. A negative NPV suggests that the project's present value of costs exceeds the present value of benefits. Additionally, the benefit
-cost ratio indicates that for every unit of cost, there are 2.25 units of benefit.
The Net Present Value (NPV) of the project, we need to discount the cash flows to their present values and sum them up. The discount rate provided is 4%, which represents the appropriate real discount rate. Here are the calculations:
Year 0:
Cost: -90000 (Initial investment)
Years 1-9:
Benefits: $5000 per year (constant)
Costs: Vary as given in the table
Years 10-50:
Benefits: $5000 per year (constant)
To calculate the present value (PV) of each cash flow, we use the formula:
PV = Cash Flow / (1 + Discount Rate)^n
where n represents the number of years.
Calculating the present values:
Year 0:
PV(Cost) = -90000 / (1 + 0.04)^0 = -90000 (no discounting)
Years 1-9:
PV(Benefit) = 5000 / (1 + 0.04)^n, where n = 1, 2, 3, ..., 9
PV(Cost) = Cost / (1 + 0.04)^n, where n = 1, 2, 3, ..., 9
Years 10-50:
PV(Benefit) = 5000 / (1 + 0.04)^n, where n = 10, 11, 12, ..., 50
Calculating the NPV:
NPV = PV(Benefits) - PV(Costs)
Calculating the PV of Benefits:
PV(Benefits) = Σ [5000 / (1 + 0.04)^n] for n = 1 to 9
+ Σ [5000 / (1 + 0.04)^n] for n = 10 to 50
Calculating the PV of Costs:
PV(Costs) = Σ [Cost / (1 + 0.04)^n] for n = 1 to 9
Calculating the NPV:
NPV = PV(Benefits) - PV(Costs)
Benefit-Cost Ratio:
Benefit-Cost Ratio = Total Benefits / Total Costs
Performing the calculations, we get:
PV(Benefits) = Σ [5000 / (1 + 0.04)^n] for n = 1 to 9
+ Σ [5000 / (1 + 0.04)^n] for n = 10 to 50
PV(Benefits) = 35149.31 + 28815.82 = 63965.13
PV(Costs) = Σ [Cost / (1 + 0.04)^n] for n = 1 to 9
PV(Costs) = 90000 / (1 + 0.04) + 1000 / (1 + 0.04)^2 + 8000 / (1 + 0.04)^3
PV(Costs) = 86580.60
NPV = PV(Benefits) - PV(Costs) = 63965.13 - 86580.60 = -22615.47
Benefit-Cost Ratio = Total Benefits / Total Costs
Benefit-Cost Ratio = (5000 * 41) / 91000 = 205000 / 91000 = 2.25
Considering the negative NPV and the benefit-cost ratio, it is not recommended to proceed with this project as it does not generate sufficient returns to cover the costs and does not provide a favorable economic outcome.
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UNITS
Beginning Work-in-Process Inventory 2,100 units
Transferred in from Assembling Department during the period 7,300 units
Completed during the period 4,300 units
Ending Work-in-Process Inventory (40% complete for conversion work) 5,100 units
COSTS
Beginning Work-in-Process Inventory (transferred in costs, $93,200;
conversion cost, $18,300) $111,500
Transferred in from the Assembly Department during the period 687,000
Conversion costs added during the period 76,800
MarineWork uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lifts. The lifts are transferred to Finished Goods Inventory before shipment to marinas across the country. MarineWork's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August:
The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department.
Read the requirements
Requirement 1. Prepare a production cost report for the Testing Department. (MarineWork uses weighted-average process costing. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)
MarineWork
Production Cost Report-Testing Department
Month Ended August 31
Equivalent Units
Whole
Transferred
Direct
Conversion
UNITS
Units
In
Materials
Costs
Units to account for:
Total units to account for
Units accounted for:
n/a
n/a
Total units accounted for
n/a
Transferred
Direct
Conversion
Total
COSTS
In
Materials
Costs
Costs
Costs to account for:
n/a
n/a
Total costs to account for
n/a
n/a
Cost per equivalent unit
n/a
Costs accounted for:
n/a
n/a
Total costs accounted for
n/a
Requirement 2. What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost? The cost per unit for lifts completed and transferred out to Finished Goods Inventory is $nothing per lift.
Why would management be interested in the cost per unit for lifts completed and transferred out to Finished Goods Inventory?
A. Managers use the cost per lift for external financial reportinglong dash—specifically to calculate the ending inventory balances on the Balance Sheet.
B. Managers would compare the average cost per lift against their budgeted costs to determine whether the costs of the Testing Department remain under control. If budgeted costs are higher than the actual average cost per lift, then the managers have done a good job controlling costs. In contrast, if the budgeted costs are lower than the actual average cost per lift, managers will investigate the reason for the higher-than-expected costs in an effort to regain control over costs.
C. Managers use the cost per lift for external financial reportinglong dash—specifically to calculate the Cost of Goods Sold on the Income Statement.
D. All of the above are reasons why management would be interested in this cost per unit for lifts completed and transferred out to Finished Goods Inventory.
The production cost report for MarineWork's Testing Department shows 5,500 units accounted for with costs of $563,200 for materials and $76,800 for conversion. The cost per unit for completed lifts transferred to Finished Goods Inventory is not provided. Management is interested in this cost for financial reporting and cost control purposes. The correct answers are A, B, C.
MarineWork
Production Cost Report - Testing Department
Month Ended August 31
Equivalent Units
Whole Transferred Direct Conversion
UNITS
Units In 7,300 - - -
Units to account for:
Total units to account for 7,300 - - -
Units accounted for:
Transferred 4,300 - - -
Ending WIP (40% complete) 1,200 - 480 480
Total units accounted for 5,500 - 480 480
COSTS
In Materials Conversion Total
COSTS
Costs to account for: $687,000 - $76,800 $763,800
Cost per equivalent unit: - - $160 -
Costs accounted for: $563,200 - $76,800 $640,000
Total costs accounted for $563,200 - $76,800 $640,000
Requirement 2:
The cost per unit for lifts completed and transferred out to Finished Goods Inventory is not provided in the given information.
Management would be interested in the cost per unit for lifts completed and transferred out to Finished Goods Inventory for reasons A, B, C mentioned in the options:
A. External financial reporting, specifically for calculating ending inventory balances on the Balance Sheet.
B. Comparing actual average cost per lift against budgeted costs to determine cost control.
C. External financial reporting, specifically for calculating the Cost of Goods Sold on the Income Statement.
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Island tours has been an Exchange Act reporting company since going public three years ago. Island tours recently sold an additional 5 million in common stock through a regulation D private placement to a several accredited investors. In the private placement skipper the CEO purchased 100,000 shares at $10 per share and MaryAnn, an outside investor with no other affiliation with island tours, also purchased 100,000 shares. Suppose skipper resells the 100,000 shares he purchased in island tours private placement after a 14-month holding period two professor, an outside investor, through an unsolicited brokerage transaction. Island tours is currently in all its SEC filings. What if, one month later, professor resells the securities to another outside investor on NASDAQ?
Island Tours, an Exchange Act reporting company, recently conducted a private placement of 5 million shares of common stock to accredited investors.
What has to be done if professor resells the securities to another outside investor on NASDAQ?The CEO, Skipper, and an outside investor named MaryAnn purchased 100,000 shares each. After a 14-month holding period, Skipper resold his shares to two professors through a brokerage transaction. One month later, the professors resold the shares to another outside investor on NASDAQ.
These transactions appear to comply with securities regulations, assuming no specific restrictions or obligations were violated. It is recommended to consult legal and financial professionals for personalized advice and to ensure compliance with applicable regulations.
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If Do = $1.75,g (which is constant) = 3.6%, and Po = $40.00, what is the stock's expected total return for the coming year? a. 8.13% b. 7.48% c. 7.64% d. 6.42% e. 9.92%
The stock's expected total return for the coming year is approximately 8.13%. Option (a) 8.13% is the correct choice.
Price of the stock = (Dividend this year)(1+g) ÷ (r - g)
where:
d0 = $1.75 (dividend per share)
p0 = $40.00 (stock price at the beginning)
g = 3.6% = 0.036 (constant growth rate)
r = expected total return
Plugging in the values:
40 = (1.75)(1+0.036) ÷ (r - 0.036)
Simplifying further:
40 = 1.75 x 1.036 ÷ (r - 0.036)
40 = 1.813 ÷ (r - 0.036)
(r - 0.036) = 1.813 ÷ 40
(r - 0.036) = 0.045325
r = 0.045325 + 0.036
r ≈ 0.081325 or 8.13%
Therefore, the stock's expected total return for the coming year is approximately 8.13%. Option (a) 8.13% is the correct choice.
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State
five
features distinguishing Features of servicing
Answer:
The answer is below:
Explanation:
Services are a byproduct of a business firm which is done in exchange for money. However, unlike the products or goods, it has its distinct features or characteristics.
Hence, there are various Features of services, some of which includes the following:
1. Intangibility: they are not tangible or cannot be touched
2. Perishability: they cannot perish like goods
3. Inseparability: services under the ae work or elements cannot be separated like goods
4. Heterogeneity: the quality of services is diverse, hence, the price and time of delivery vary.
5. Ownership: unlike the goods, when it comes to services the person rendering services is the one that tends to move around.
Consumption demand depends mainly on_____income and propensity to consume.
Gross
Net
Disposable
Total
Consumption demand depends mainly on disposable income and propensity to consume. Propensity to consume (MPC) refers to the tendency of people to spend a portion of their disposable income on consumer goods and services.
Disposable income is the money that people have left over after paying taxes. Thus, consumption demand will increase as disposable income increases and as the MPC increases.The MPC has a direct effect on the amount of consumption spending in the economy.
If the MPC is high, consumers are likely to spend a larger percentage of their disposable income, resulting in a higher level of consumption demand. Conversely, if the MPC is low, consumers are likely to spend less of their disposable income, leading to a lower level of consumption demand.
Consumption demand is a critical component of the economy since it represents the largest share of gross domestic product (GDP) in most countries. Increases in consumption demand can boost economic growth, while decreases can lead to a recession.
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Suppose that:
Qs = 4p - 5 QD = 40 - 0.5p
Suppose that the Government imposes a price floor of $20. Does this create a surplus or shortage? What is the resulting decline in the Total Surplus in the Economy? What is the Deadweight Loss?
There is a surplus of 45 units (75-30) and Deaadweight loss is $1125.
A price floor is the minimum price that sellers can sell their products for, established by the government. In this question, the price floor is $20.
To determine if this price floor causes a shortage or surplus, we need to find the quantity demanded and quantity supplied at this price.
Qs = 4p - 5QD = 40 - 0.5pAt $20, QD
= 40 - 0.5(20)
= 30 units
QS = 4(20) - 5
= 75 units
The resulting decline in total surplus in the economy is the sum of the consumer and producer surplus loss, as well as the Deaadweight loss.
Deaadweight loss = 0.5*(75-30)*(20-0) = $1125.The explanation is that this is an inefficient allocation of resources because producers produce more goods than consumers demand.
There is a loss of total surplus because the sum of consumer and producer surplus is lower than it would be if the market were allowed to reach equilibrium. Deaadweight loss is the inefficiency caused by the price floor, where some mutually beneficial transactions are not taking place, resulting in lost potential gains.
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Suppose that the economy is depicted by the following relationship:
Expenditures = C + I + G + X
where: C = $100 + 0.75(Y−T)
G =$500
T =$500
I = $100
X = $150
The economy is in equilibrium at a level of real GDP or income of $
The solution to the problem of the economy in equilibrium at a level of real GDP or income of $1,000 is provided below.
Expenditures (E) = C + I + G + XC = $100 + 0.75(Y - T)G = $500T = $500I = $100X = $150We need to determine the equilibrium level of GDP or income.To solve this problem, we need to understand that the equilibrium level of GDP is where the expenditure is equal to output.
It means, the level of output produced and sold in the economy will be equal to the total expenditure incurred by the buyers of that output.The expenditure function in this economy is given by;E = C + I + G + XAnd, the consumption function is given by;C = $100 + 0.75(Y - T)
the values of I, G, T, X, and C in the expenditure function;E = C + I + G + XE = [$100 + 0.75(Y - $500)] + $100 + $500 + $150E = $100 + 0.75Y - $375 + $750E = $475 + 0.75YComparing the expenditure function with the equation of a straight line, Y = mx + b;Y = ($475 / 0.75) + (0.75Y / 0.75)Y = $633.33 + Y / 4Dividing both sides by 1 - 1 / 4;Y = $1,000Therefore, the equilibrium level of real GDP or income is $1,000.
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Discuss the key elements of the planning approach to local environmental planning.
The key elements of the planning approach to local environmental planning are assessment, goal-setting, and implementation.
What are the fundamental components of local environmental planning?
Local environmental planning involves a systematic process that incorporates various key elements to achieve sustainable development and conservation of natural resources. The first element is assessment, which involves conducting a thorough analysis of the existing environmental conditions, identifying potential risks, and evaluating the impact of proposed development activities. This step ensures that decisions regarding land use and resource allocation are based on accurate and reliable information.
The second element is goal-setting. Once the assessment phase is complete, specific goals and objectives are established to guide the planning process. These goals may include preserving biodiversity, reducing pollution, promoting renewable energy, or enhancing public access to green spaces. Setting clear and measurable targets helps prioritize actions and facilitates effective decision-making.
The third element is implementation. This stage involves translating the goals and objectives into concrete actions and policies. It includes zoning regulations, land use plans, environmental impact assessments, and the enforcement of environmental laws and regulations. Effective implementation requires collaboration among various stakeholders, including government agencies, community organizations, businesses, and residents.
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