Edgeworth box: An Edgeworth box can be used to represent the trading opportunities for two parties.
This is also used to show Pareto improvements. An Edgeworth box shows two people's endowments on the top and right axes. It also shows the set of Pareto-optimal allocations. A Pareto improvement occurs when both parties' welfare improves by trading. This is achieved by exchanging goods at a price that both parties agree on.
When two parties are trading, the Edgeworth box represents the constraints they face. Each point in the box corresponds to a certain allocation of goods between the two people. When goods are reallocated from one person to another, the total welfare of the two parties increases.
To know more about Edgeworth visit:-
https://brainly.com/question/32627147
#SPJ11
Match the cost flow assumption on the left with its definition on the right.
-FIFO: Assumes costs flow in the order incurred
-LIFO: Assumes costs flow in the reverse order incurred
-Weighted Average: Assumes costs flow at an average of the costs available
-Specific Identification: Assumes costs flow can be specifically matched with the physical flow of items
FIFO: Assumes costs flow in the order incurred.
LIFO: Assumes costs flow in the reverse order incurred.
Weighted Average: Assumes costs flow at an average of the costs available.
Specific Identification: Assumes costs flow can be specifically matched with the physical flow of items.
FIFO (First In First Out): Assumes that costs are incurred in the order they are paid for. Inventory that is the oldest is thought to be sold or used first.
LIFO (Last In First Out): Assumes that costs are incurred and deducted in the reverse order. Inventory that was purchased or produced most recently is thought to be used or sold first.
Weighted Average: Determines the average cost of all units that are currently on the market. The weighted average cost per unit is calculated by dividing the total cost of the goods that are currently on the market by the total number of units.
When individual inventory items can be identified specific identification is used. Each individual items actual cost is matched with the physical flow of goods in order to sell or use it.
Learn more about FIFO at:
brainly.com/question/31036631
#SPJ4
The process for calculating present values is often called discounting future cash flows because future amounts are discounted to their present value O True O False
The statement is true. The process of calculating present values is commonly referred to as discounting future cash flows because it involves adjusting or discounting future amounts to their present value.
This is done by applying a discount rate, which reflects the time value of money and the risk associated with the cash flows.
Discounting future cash flows is based on the principle that a dollar received in the future is worth less than a dollar received today due to factors such as inflation and the potential to earn a return on investment. By discounting future cash flows, we can determine their equivalent value in today's terms.
To calculate the present value, the future cash flows are multiplied by discount factors derived from the discount rate and the time period. The discount rate typically represents the cost of capital or the required rate of return for an investment.
Therefore, the process of calculating present values is indeed referred to as discounting future cash flows, as it involves adjusting future amounts to their present value using a discount rate.
To know more about Discount,visit:
https://brainly.com/question/31870453
#SPJ11
If you perceive a potential conflict for yourself, what are some
ways you might ensure that this conflict doesn’t lead to unethical
behavior for you and others?
If you perceive a potential conflict for yourself, there are several ways you might ensure that this conflict does not lead to unethical behavior for you and others.
Here are some of the ways to handle conflicts and avoid unethical behavior:1. Avoid conflicts of interestIt is essential to avoid conflicts of interest by avoiding actions that are personal in nature. If you are aware of a situation that may lead to a conflict of interest, take measures to ensure that this does not happen.
2. Establish clear policies and procedures-- Establishing policies and procedures can help to manage potential conflicts of interest. This can help to ensure that any conflicts that arise are handled in a fair and ethical manner.3. Seek guidance and adviceWhen faced with a potential conflict, it is important to seek guidance and advice from a trusted source. This could be a supervisor, mentor, or even a professional organization.4. Act with transparency
If you are in a position where conflicts of interest could arise, it is essential to act with transparency. This means being open and honest about your actions and any potential conflicts.5. Follow ethical standardsFinally, it is essential to follow ethical standards and principles. This includes following codes of conduct, laws, and regulations. This can help to ensure that your actions are always ethical and do not cause harm to others.
To know more about unethical. here
https://brainly.com/question/24518056
#SPJ11
Which of the following is true regarding the proper procedure for approving vendor invoices for services for payment!
O Since there is no receiving report, there is no formal approval process for service involces - Accounts Payable accountants user reasonable judgment to approve invoices
O None of the these are true.
O Procedures surrounding approval of vendor invoices for services are the same as those followed to approve vendor invoices for goods.
O Vendor invoices for services are approved by a management level employee whose responsibilities include monitoring delivery of the service to ensure the service was satisfactorily provided.
O Approval of service invoices should be performed in a timely manner after payment.
Vendor invoices for services are approved by a management level employee whose responsibilities include monitoring the delivery of the service to ensure satisfactory provision. Therefore, option C is correct.
In the context of approving vendor invoices for services, a management level employee refers to an individual within an organization who holds a position of authority and responsibility. This employee typically has oversight and decision-making authority related to the services being provided.
They are responsible for evaluating the quality, completeness, and accuracy of the services rendered before approving the corresponding vendor invoice for payment. Their role involves assessing whether the services meet the agreed-upon specifications, comply with contractual terms, and align with the organization's requirements and expectations.
The management level employee ensures that the invoiced services have been delivered satisfactorily and meets the necessary criteria for payment. They play a crucial role in maintaining accountability and ensuring proper financial management within the organization.
Learn more about management level employee here:
https://brainly.com/question/31784709
#SPJ12
Builtrite common stock just paid a dividend of $3.00, and dividends are expected to grow at a 9% annual rate. If you require a 12% annual return, what do you believe is a fair price for Builtrite stock? a. $103.50
b. $107.50 c. $109.00 d. $100.00
Based on the given information, the fair price for Builtrite stock is $100.00 (option d).
To determine the fair price of Builtrite common stock, we can use the dividend discount model (DDM). The DDM calculates the present value of expected future dividends.
The formula for the DDM is as follows:
Fair Price = Dividend / (Required Return - Dividend Growth Rate)
In this case, the dividend just paid is $3.00, the expected dividend growth rate is 9% (0.09), and the required return is 12% (0.12).
Fair Price = $3.00 / (0.12 - 0.09) = $3.00 / 0.03 = $100.00
Therefore, based on the given information, the fair price for Builtrite stock is $100.00 (option d).
To know more about dividend, click here:-
https://brainly.com/question/25845157
#SPJ4
You have now been asked to estimate the Free Cash Flow to Equity for Environ and have collected the following information from its financial statements: Value (in $ thousands)
The Free Cash Flow to Equity for Environ is $9,500,000. This was calculated by subtracting Capital Expenditures from Operating Cash Flow and adding the Interest Tax Shield.
To calculate the Free Cash Flow to Equity for Environ, the following steps were taken:
1. Find the Operating Cash Flow, which is given as $15,000,000.
2. Subtract the Capital Expenditures, which are given as $5,000,000. This gives us the Unlevered Free Cash Flow, which is $10,000,000.
3. Calculate the Interest Tax Shield by multiplying the Interest Expense by the Tax Rate. In this case, the Interest Tax Shield is $500,000.
4. Add the Interest Tax Shield to the Unlevered Free Cash Flow to get the Free Cash Flow to Equity, which is $9,500,000.
Know more about Tax Shield here:
https://brainly.com/question/32577960
#SPJ11
Think of companies you follow and choose examples of what you think is an effective social media communication and another which you think was not effective. Describe each and outline your justification for effectiveness.
When it comes to social media communication, there are several companies that have proven to be quite effective in this area, while others have not. Here are two examples: Effective social media communication: Coca-Cola Coca-Cola's social media accounts are consistently engaging and positive.
They make use of visual aids, including videos, to convey their message in an appealing manner. They also use their social media pages to communicate with customers, answer questions, and provide assistance. Coca-Cola's social media accounts are very effective in terms of communication since they reach a wide audience, offer excellent customer service, and generate a lot of goodwill.
Not Effective social media communication: United AirlinesUnited Airlines' social media presence suffered a significant setback when a video went viral of a passenger being forcibly dragged off one of their flights. The event caused a widespread backlash against the airline, which was exacerbated by their lack of empathy and professionalism in handling the situation.
Their social media communication was ineffective, in this case, since it failed to mitigate the situation and failed to provide appropriate responses to customers who were outraged by the incident.
In summary, effective social media communication involves regular communication with customers, creating and sharing visual aids, responding to customer feedback, and generating goodwill. On the other hand, poor social media communication can result in a negative reputation and the loss of customers.
For more questions on: social media
https://brainly.com/question/12453081
#SPJ11
Sylvestor Systems borrows $86,000 cash on May 15 by signing a 120-day, 6%, $86,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, compl
Sylvestor Systems borrows $86,000 cash on May 15 by signing a 120-day, 6%, $86,000 note. The due date can be calculated as follows:
Days in a year = 365 daysMaturity date = Issue date + 120 days Maturity date = May 15 + 120 daysMaturity date = September 12The note matures on September 12.2-a. Prepare the entry to record the issuance of the note.The issuance of the note involves the receipt of cash. Cash is debited, and the notes payable is credited. This is due to the fact that cash is received, and a promise to repay it is made.
Journal entry to record the issuance of the note will be as follows:Cash $86,000Notes payable $86,0002-b. First, complete the table that follows to show the amounts of interest and maturity value that are due at maturity.Interest = Principal × Rate × TimeMaturity value = Principal + InterestPrincipal $86,000Rate 6%Time 120 daysInterestMaturity value
To know more about interest visit:
https://brainly.com/question/30393144
#SPJ11
a chapter that represents workers at a specific company or in a specific geographical region is known as a(n) union
A chapter that represents workers at a specific company or in a specific geographical region is known as a union local.
A union local is a branch or chapter of a larger labor union that represents the interests of workers in a particular company or geographic area. It serves as the primary point of contact between the union and its members within that specific context.
The purpose of a union local is to advocate for the rights and interests of workers, negotiate collective bargaining agreements with employers, and provide support and resources to its members.
Union locals play a crucial role in organizing and mobilizing workers at the grassroots level. They are responsible for recruiting new members, collecting dues, and representing workers in labor disputes and negotiations.
Union locals also provide a platform for workers to voice their concerns and grievances, seek assistance with workplace issues, and access resources such as legal aid or training programs.
The establishment of a union local allows workers to have a more direct and localized representation within the larger labor union structure. It enables them to address issues specific to their workplace or region and tailor their bargaining strategies to the unique circumstances they face.
Union locals also foster a sense of solidarity and camaraderie among workers, providing a space for them to collaborate and support one another in their collective efforts.
In summary, a union local represents workers at a specific company or in a specific geographical region and serves as their primary representative and advocate within the broader labor union framework. It plays a vital role in organizing, negotiating, and supporting workers to ensure their rights and interests are protected.
For more such question on union. visit :
https://brainly.com/question/31369148
#SPJ8
If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its acid test ratio decreases from 0.20 to 0.15 over the same time period, the most likely explanation is that:
Answer:
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
Explanation:
Current Ratio = Current Assets/ Current liabilities
An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.
Acid test Ratio= Current Assets - Inventory / Current liabilities
If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.
If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
A stock price is currently trading at $50. Assume that the stock follows a one-period binomial model with one period lasting for half a year. The stock will either increase in value by 20% or fall in value by 30% in the binomial tree. The annual effective risk-free interest rate is 2%. The stock pays no dividends. a. (5 MARKS) Find a fair (no-arbitrage) price of a European put option written on the stock with expiration in a half year and strike price of $55. P=$7.53 b. (6 MARKS) Assume that the actual price of the put from question a seen in the market has a price of $8.00. Also assume that there are no call options written on the stock available for trading. Does the market allow arbitrage opportunities? What will be an arbitrage strategy if your answer to the previous question is "Yes"? Short the put option and buy a synthetic put option comprised from a short position in .8 stock shares and $47.53 long position in T-bill
a. The binomial tree will look like the following: Binomial Tree for Stock Price The fair price of a European put option written on the stock with an expiration in half a year and a strike price of 55 is: P = 7.53b.
Since the synthetic option can be created for less than the market price of the actual put option, the investor can earn an arbitrage profit by shorting the actual put option and buying the synthetic option. The difference in prices between the two options will be the profit made by the investor.
To know more about Binomial Tree visit:
brainly.com/question/30025883
#SPJ11
1 - 2 3 - 4- 5 -
Asset turnover ratio Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow: 20Y3 20Y2 Sales $2,184,000 $1,781,000 Total assets: Beginning of year 730,000 640,0
The asset turnover ratio is a measure of a company's efficiency in using its assets to produce revenue. This ratio compares the company's sales to its total assets to determine how effectively it is using its assets to generate revenue.
Financial statement data for the years ended December 31, 20Y3, and 20Y2 for Edison Company follow:20Y3: Sales = $2,184,000, Total assets at the beginning of the year = $730,000.20Y2: Sales = $1,781,000, Total assets at the beginning of the year = $640,000.Asset Turnover Ratio
= Sales / Average Total AssetsAverage Total Assets
= (Beginning of Year Total Assets + End of Year Total Assets) / 2Average Total Assets for 20Y3
= (730,000 + End of Year Total Assets) / 2Average Total Assets for 20Y2 = (640,000 + 730,000) / 2
= 685,000Asset Turnover Ratio for 20Y3
= 2,184,000 / [(730,000 + End of Year Total Assets) / 2]Asset Turnover Ratio for 20Y2
= 1,781,000 / 685,000Asset Turnover Ratio for 20Y2
= 2.6The asset turnover ratio for 20Y3 cannot be determined without the end-of-year total assets value.
However, we know that it will be less than the asset turnover ratio for 20Y2.
For more such questions on produce revenue
https://brainly.com/question/25623677
#SPJ11
1. Briefly describe how to calculate net present value (NPV) and incremental rate of return (IRR). What is the formula used for each?
2. Describe how NPV is used in investment decisions (what it means when NPV is positive, zero, negative). Describe how IRR is used in investment decisions. Compare the pros and cons of using NPV versus IRR.
3. From looking at the tables below, What are the NPVs and IRRs of the two alternative technologies Based on the information in the case, what factor drives the financial superiority of the more profitable technology?
Net Present Value (NPV) is a financial metric used to determine the profitability of an investment or project. It calculates the present value of expected cash flows by discounting them back to their current value.
The formula for NPV is:
NPV = (CF₀ / (1+r)⁰) + (CF₁ / (1+r)¹) + ... + (CFₙ / (1+r)ⁿ),
where CF represents cash flows in each period, r is the discount rate, and ⁰, ¹, ..., ⁿ denote the respective time periods.
The Incremental Rate of Return (IRR) is the discount rate at which the NPV of an investment becomes zero. It measures the potential return on investment by comparing the present value of cash inflows and outflows. The IRR formula sets the NPV equation equal to zero and solves for the discount rate that satisfies it. The decision rule is to accept an investment if the IRR is greater than the required rate of return.
To know more about Net Present Value, here
brainly.com/question/31984281
#SPJ4
--The complete Question is, Briefly describe how to calculate net present value (NPV) and incremental rate of return (IRR). What is the formula used for each?--
a. List the Types of Disaster according to any International Disaster database and describe only Mass Casualty Management.
b. Managing HAZMAT in a hospital
Mass casualty management involves coordinating and responding to a large number of injured or affected individuals during a disaster. Managing HAZMAT in a hospital requires implementing protocols to safely handle hazardous materials, including storage, training staff, and collaborating with external agencies to minimize risks.
a. The types of disasters can vary across different international disaster databases, but some common categories include natural disasters (such as earthquakes, hurricanes, floods), technological disasters (such as industrial accidents, transportation incidents), public health emergencies (such as pandemics, epidemics), and conflict-related disasters (such as war, terrorism).
Mass casualty management refers to the coordination and response efforts aimed at treating and managing a large number of injured or affected individuals during a disaster. It involves triage, medical treatment, transportation, and coordination of resources to ensure effective and efficient care for the casualties.b. Managing hazardous materials (HAZMAT) in a hospital involves implementing specific protocols and procedures to safely handle and control hazardous substances within the healthcare setting.
This includes establishing proper storage, labeling, and handling practices, training staff on HAZMAT response and safety measures, ensuring the availability of appropriate personal protective equipment (PPE), and maintaining effective communication and collaboration with external agencies such as fire departments and hazardous materials teams. The goal is to minimize the risks associated with HAZMAT incidents and protect the safety of patients, healthcare workers, and the surrounding environment.Learn more about Managing hazardous materials (HAZMAT) at:
https://brainly.com/question/29793751
#SPJ11
Vivian and Mark work for principal broker Jamie. In which of the following situations is broker Jamie a dual agent, but no one else at Jamie's firm is considered a dual agent?
-In a single transaction, Vivian is designated as the seller's client and Mark is designated as the buyer's client.
-In a single transaction, Vivian represents the seller and -Mark represents the buyer, without designation.
-Vivian represents the buyer and a licensee from another brokerage represents the seller in the transaction.
-Vivian represents the buyer for one transaction, and Mark represents the seller for a different transaction.
Vivian and Mark work for principal broker Jamie. In which of the following situations is broker Jamie a dual agent, but no one else at Jamie's firm is considered a dual agent. So the right option is: In a single transaction, Vivian is designated as the seller's client and Mark is designated as the buyer's client.
When Vivian and Mark work for principal broker Jamie, broker Jamie is a dual agent, but no one else at Jamie's firm is considered a dual agent in the following situation:- In a single transaction, Vivian represents the buyer, and a licensee from another brokerage represents the seller in the transaction.
Broker Jamie will be a dual agent in this scenario, but no one else at Jamie's firm will be considered a dual agent.
For more questions on: dual agent
https://brainly.com/question/30301880
#SPJ8
A bond that makes no coupon payments and is initially priced at a deep discount is called a __________ bond. group of answer choices municipal zero coupon treasury junk
A bond that makes no coupon payments and is initially priced at a deep discount is called a "zero coupon bond."
Zero coupon bonds are also known as "discount bonds" because they are issued and initially traded at a price significantly lower than their face value or redemption value. Unlike regular bonds that pay periodic interest or coupon payments, zero coupon bonds do not make any coupon payments during their term.
The unique characteristic of zero coupon bonds is that they are issued at a discount to their face value, meaning investors purchase them for less than the amount they will receive at maturity. The discount represents the interest that accrues over the bond's life, and the bondholder receives the face value of the bond at maturity.
Since zero coupon bonds do not provide periodic interest payments, their return to investors comes from the difference between the purchase price and the face value upon maturity. This allows investors to benefit from compounding interest, as the bond's price appreciates over time, moving towards its face value.
Zero coupon bonds are issued by various entities, including governments, municipalities, corporations, and financial institutions. While the term "municipal" is commonly associated with bonds issued by local governments, it does not specifically refer to zero coupon bonds. Similarly, "treasury" bonds are issued by the government and can include zero coupon bonds, but not all treasury bonds are zero coupon bonds. "Junk" bonds, on the other hand, refer to bonds that are rated below investment-grade due to their higher default risk and are not necessarily zero coupon bonds.
Therefore, the correct answer is "zero coupon."
To know more about Interest visit-
brainly.com/question/14295570
#SPJ11
In 1995, omega, a small firm manufacturing disk storage systems for personal computers, introduced a new product called the Zip Drive. This product, which was priced at around $200, allowed computer users to store up to 100 MB of data on small disks and access the data easily. The demand for the Zip drive surged ahead of the supply, and the company reported a rise in profits and an increase in the stock price.
a. Given that the Zip Drive had no patent protection, what would you expect to happen in the market over the months following its introduction?
b. If you were an analyst looking at Iomega as a firm, would you expect the surge in profitability to continue? Why or why not?
a. In the months following the introduction of the Zip Drive without patent protection, one would expect competitors to enter the market with similar products, leading to increased competition and potentially lower prices for disk storage systems.
b. As an analyst, the surge in profitability for Iomega may not continue in the long term due to the entry of competitors. The absence of patent protection allows other firms to replicate the product, increasing market competition and potentially reducing Iomega's market share and profitability.
a. Without patent protection, other companies are free to develop and sell similar products in the market. As the demand for disk storage systems increases, competitors are likely to enter the market to capitalize on the opportunity. This increased competition would lead to a wider range of product options for consumers and could potentially result in lower prices due to market saturation.
b. The surge in profitability for Iomega may not be sustainable due to increased competition. As more competitors enter the market with similar products, Iomega's market share may decline, and they may struggle to maintain their initial profit margins. Additionally, with more choices available to consumers, price pressure could arise, leading to the potential erosion of Iomega's profitability over time.
For more questions like Zip Drive click the link below:
https://brainly.com/question/32217652
#SPJ11
In a closed economy without a government:
a. consumption equals savings
b. consumption equals investment
c. saving equals investment
d. saving equals net exports
In a closed economy without a government, saving equals investment.When there is no government, no taxation, no spending, no budget and no redistribution, the three sectors of the economy are private households, private businesses, and the financial sector.
The financial sector serves as the mediator between households and companies, saving and borrowing from them respectively.
The model for a closed economy can be presented in the following equation:Y = C + IHere, Y is income, C is consumption, and I is investment. In the closed economy, households determine the level of income (Y), which means that Y = C + S, where S is the country's saving.
Moreover, the companies determine the level of investment (I), which means that Y = C + I. By combining the two formulas, we get:Y = C + S = C + I = C + S => S = ITherefore, saving equals investment.
In conclusion, in a closed economy without a government, saving equals investment, option c. The savings of private households are the same as the investment of private businesses, and the financial sector acts as a mediator between the two. The two must be equal for the economy to remain in balance.
Learn more about financial sector visit:
brainly.com/question/30166281
#SPJ11
Consider the following two mutually exclusive projects:
Year Cash Flow (X) Cash Flow (Y)
0 −$ 30,000 −$ 30,000
1 13,700 15,600
2 14,200 12,200
3 13,400 13,300
Calculate the IRR for each project. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the crossover rate for these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the NPV of Projects X and Y at discount rates of 0%, 15%, and 25%? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
The IRR (Internal Rate of Return) for Project X is 16.56% and for Project Y is 15.44%. The crossover rate is the discount rate at which the NPV (Net Present Value) of both projects is equal. To find the crossover rate, we compare the NPV of both projects at different discount rates.
At a discount rate of 0%, the NPV of Project X is $1,700 and the NPV of Project Y is $3,600. At a discount rate of 15%, the NPV of Project X is $817.86 and the NPV of Project Y is $1,496.56. At a discount rate of 25%, the NPV of Project X is $130.77 and the NPV of Project Y is $1,194.64.
By analyzing these values, we can see that the NPV of Project X becomes less than the NPV of Project Y at a discount rate between 15% and 25%. Therefore, the crossover rate lies within this range.
In conclusion, the IRRs for Project X and Project Y are 16.56% and 15.44% respectively. The crossover rate, where the NPVs of both projects are equal, is between 15% and 25%. The NPVs of Projects X and Y vary depending on the discount rate applied.
know more about net present value (NPV)
https://brainly.com/question/32135143
#SPJ11
The small business produces a single product and reports the following data:
Price $16.00 per unit
Variable cost $10.00 per unit
Fixed costs $42,000 per month
Volume 20,000 per month
The company believes that the volume will go up to 22,000 units if the company reduces its price to $15.00.
How would this change affect operating income?
The operating income would decrease from $78,000 to $68,000 if the company reduces its price to $15.00 and the volume increases to 22,000 units.
Calculating operating income under the existing circumstances and comparing it to the expected operating income under the revised volume and price will help us evaluate how the price drop will affect operating income.
Firstly, calculate the operating income:
Revenue (Current) = Price per unit × Volume
= $16.00 × 20,000
= $320,000
Variable Costs (Current) = Variable cost per unit × Volume
= $10.00 × 20,000
= $200,000
Total Fixed Costs (Current) = $42,000
Operating Income (Current) = Revenue – Variable Costs – Total Fixed Costs
= $320,000 – $200,000 – $42,000
= $78,000
Let's now compute the anticipated operational income using the revised volume and price:
Volume (Projected) = 22,000 units
Price (Projected) = $15.00 per unit
Revenue (Projected) = Price per unit × Volume = $15.00 × 22,000 = $330,000
Variable Costs (Projected) = Variable cost per unit × Volume
= $10.00 × 22,000
= $220,000
Total Fixed Costs (Current) = $42,000
Operating Income (Projected) = Revenue – Variable Costs – Total Fixed Costs
= $330,000 – $220,000 – $42,000
= $68,000
If the corporation lowers its pricing to $15.00 and increases volume to 22,000 units, the operating income will consequently fall from $78,000 to $68,000.
Learn more about the operating income, refer to:
https://brainly.com/question/32545534
#SPJ4
Question 1 (25 marks) - Capital Budgeting Deluxe Piano Company is planning to purchase a machine capable to do certain operations that are no performed manually. The machine will cost $35,000, and it
The payback period of the machine is approximately 3.89 years.
Capital Budgeting: The given statement belongs to the topic of Capital Budgeting. Capital budgeting is an important tool to help organizations evaluate investments in various projects and decide which ones to pursue. It is a process that helps companies make long-term decisions about investments in projects that will contribute to the growth of the business. The statement is incomplete as it is broken. The statement given is: Deluxe Piano Company is planning to purchase a machine capable of doing certain operations that are not performed manually. To calculate the payback period for the given machine, we need to follow the steps mentioned below:
Step 1: Calculate the annual cash inflow. We know that the additional cash flows generated by the machine over the life of the machine are $9,000 per year. So, annual cash inflow = $9,000
Step 2: Determine the initial investment. The initial investment is the cost of the machine. Initial investment = $35,000
Step 3: Calculate the payback period using the formula: Payback period = Initial investment / Annual cash inflow.
So, the payback period of the machine = $35,000 / $9,000= 3.89 years (approx.)
Therefore, the payback period of the machine is approximately 3.89 years.
To know more about investments visit:
https://brainly.com/question/15105766
#SPJ11
Getrich has 1.9 million shares outstanding and a current share price of $6.6 per share. It also has $45.4 million in outstanding debt, with a debt cost of capital of 1.7%. Getrich’s equity cost of capital is 18.3%. If the corporate tax rate is 33.5%, what is Getrich's weighted average cost of capital? Round your answer to two decimal places in percentage form.
To calculate Getrich's weighted average cost of capital (WACC), we need to determine the weight of equity and debt in the capital structure and their respective costs of capital.
Step 1: Calculate the weight of equity and debt:
The weight of equity (WE) is the proportion of equity in the capital structure, and the weight of debt (WD) is the proportion of debt.
WE = Equity Value / Total Firm Value
WD = Debt Value / Total Firm Value
Equity Value = Number of shares * Share price = 1.9 million * $6.6 = $12.54 million
Debt Value = $45.4 million
Total Firm Value = Equity Value + Debt Value = $12.54 million + $45.4 million = $57.94 million
WE = $12.54 million / $57.94 million ≈ 0.2166 (rounded to four decimal places)
WD = $45.4 million / $57.94 million ≈ 0.7834 (rounded to four decimal places)
Step 2: Calculate the cost of equity:
Cost of Equity = Equity Cost of Capital = 18.3%
Step 3: Calculate the after-tax cost of debt:
Debt Cost of Capital = 1.7%
Tax Rate = 33.5%
After-Tax Cost of Debt = Debt Cost of Capital * (1 - Tax Rate) = 1.7% * (1 - 0.335) ≈ 1.13% (rounded to two decimal places)
Step 4: Calculate WACC:
WACC = (WE * Cost of Equity) + (WD * After-Tax Cost of Debt)
WACC = (0.2166 * 18.3%) + (0.7834 * 1.13%)
WACC ≈ 3.97% (rounded to two decimal places)
Therefore, Getrich's weighted average cost of capital (WACC) is approximately 3.97%.
For more questions on: weighted average cost of capital
https://brainly.com/question/30746642
#SPJ11
b. if nancy is interested in maximizing her total revenue, she should produce pounds of beeswax.
To maximize total revenue, Nancy should produce 6 pounds of beeswax. Total revenue is calculated by multiplying the quantity of output by the price per unit. In the given data, the total revenue column represents the product of the quantity of beeswax produced and the price per unit.
By examining the data, we can see that the total revenue reaches its highest point when 6 pounds of beeswax are produced, with a total revenue of $300.
At quantities lower or higher than 6 pounds, the total revenue starts to decrease. Producing fewer than 6 pounds reduces total revenue due to the smaller quantity sold, while producing more than 6 pounds results in a decline in total revenue because the increase in variable costs outweighs the increase in total revenue.
Therefore, to maximize total revenue, Nancy should produce 6 pounds of beeswax. At this quantity, she achieves the highest total revenue compared to other production levels.
In conclusion, based on the given data, producing 6 pounds of beeswax would maximize Nancy's total revenue. It represents the point where total revenue is maximized, as producing more or less than 6 pounds would result in a decrease in total revenue.
Learn more about total revenue here:
brainly.com/question/27753479
#SPJ11
Complete Question:
Total Revenue Fixed Cost Variable Cost Total Cost ($) ($) ($) 0 15 0 50 15 38 53 0 1 -3 50 38 2 100 15 81 96 4 50 43 3 150 15 131 146 4 50 50 4. 200 15 189 204 -4- 50 58 5 250 15 257 272 -22 50 68 6 300 15 337 352 -52 50 80 b. If Nancy is interested in maximizing her total revenue, she should produce......., pounds of beeswax.
Jill has invested in her growth mutual fund regularly over the last several years.Prices have generally increased, and all distributions have automatically been reinvested. About 15 months ago, Jill stopped investing since she had surpassed her goal. Jill now wants to convert a portion of her investment to cash and pay the least taxes. What is the cost method that will minimize her gain?
Question 5 options:
A. First in, last out (FILO) method
B. because these are mutual fund shares, the mutual fund pays taxes instead of the individual investor
C. Last in, first out (LIFO) method
D. the methods in A, B, and C will provide the same cost basis
E. average cost method
Please help. At first I chose D as the answer, but that came back wrong
First in, last out (FILO) method minimizes Jill's gain when converting a portion of her investment to cash and paying the least taxes.
Which cost method will minimize Jill's gain when converting a portion of her investment to cash and paying the least taxes?The correct answer is A. First in, last out (FILO) method.
The FILO method assumes that the shares or units acquired first are the ones sold first. By using this method, Jill would be selling the shares she purchased most recently, which typically have a higher cost basis. This would result in a lower gain and, therefore, minimize her taxes.
On the other hand, the LIFO method (option C) assumes that the shares or units acquired last are the ones sold first. This would result in selling the shares with the lowest cost basis, potentially leading to a higher gain and higher taxes.
The average cost method (option E) calculates the average cost of all shares purchased and uses that as the cost basis. While it may provide a reasonable estimate of the cost basis, it may not necessarily minimize the gain and taxes in Jill's specific situation.
Option B is incorrect because mutual fund distributions are subject to taxes, and it is the individual investor's responsibility to report and pay taxes on their investment gains.
Therefore, the FILO method (option A) is the most suitable choice for Jill to minimize her gain and taxes when converting a portion of her investment to cash.
Learn more about investment
brainly.com/question/17252319
#SPJ11
1.Using your own examples, explain the four functions of attitudes that are presented in this chapter. 2. What is meant by the hierarchy of effects? Differentiate among high-involvement, low-involvement, experiential, and behavioral influence hierarchies. In what situations are you most likely to observe each hierarchy at work?
The four functions of attitudes are as follows;
Utilitarian functionEgo-defensive functionValue-expressive functionKnowledge functionThe hierarchy of effects is a model that explains the stages that consumers go through in forming an attitude toward a product and deciding whether or not to purchase it. It has four stages: awareness, interest, evaluation, and decision. These stages can be classified into four types of influence hierarchies, which are high-involvement, low-involvement, experiential, and behavioral influence hierarchies.
High-involvement hierarchy: Consumers go through all four stages of the hierarchy of effects, in sequence, before making a purchase decision. This hierarchy is most commonly observed in situations where consumers are purchasing high-priced, high-risk items such as cars and homes.
Low-involvement hierarchy: Consumers do not go through all four stages of the hierarchy of effects in this hierarchy. They may skip some stages or move back and forth between them. This hierarchy is most commonly observed in situations where consumers are purchasing low-priced, low-risk items such as groceries and household goods.
Experiential hierarchy: This hierarchy involves the experience that a consumer has with a product. Consumers may have a positive attitude toward a product because of the experience they had with it in the past. This hierarchy is most commonly observed in situations where consumers are purchasing products that are experiential in nature, such as vacations and entertainment.
Behavioral influence hierarchy: This hierarchy involves the influence of external factors on a consumer's decision to purchase a product. This may include the influence of friends, family, or advertising. This hierarchy is most commonly observed in situations where consumers are purchasing products that are socially visible, such as clothing and accessories.
Learn more about attitudes:
https://brainly.com/question/30721171
#SPJ11
Read the textbook and answer the following question(Use proper referencing if you add external information) 1.What is money and how is is categorized in an economy? 2. What do you think will happen in
1. Money can be defined as a medium of exchange that is universally acceptable in an economy. It is used to buy goods and services.
2. The future of money will be shaped by technology. The use of cryptocurrency is expected to rise, as it has become more acceptable in society. It has the potential to eliminate intermediaries, such as banks, and offer security and anonymity to users.
1. Money is categorized into three types, including commodity money, representative money, and fiat money.
Commodity money is used to represent the value of a commodity that it is made from, like gold, silver, and salt. Representative money is backed by a commodity such as gold, and it has a physical value. Fiat money is currency that is recognized as legal tender by a government, but it has no intrinsic value.
2. The use of digital payment platforms is expected to grow, providing convenience to users who can easily pay for goods and services using their mobile devices. However, there will also be challenges such as security concerns, the possibility of a digital divide, and the need for regulation.
Learn more about economy at:
https://brainly.com/question/32153642
#SPJ11
A global sourcing manager for Delta Automotive wants to compute the total supply chain costs for automobile parts purchased from three different global suppliers. The data related to the supply chain
To compute the total supply chain costs for automobile parts purchased from three different global suppliers, the global sourcing manager for Delta Automotive would need to gather relevant data related to the supply chain. Here are some key data points to consider:
1. Supplier Costs: Obtain the costs associated with purchasing automobile parts from each global supplier. This includes the cost per unit of the parts and any additional fees or charges imposed by the suppliers.
2. Transportation Costs: Determine the transportation costs involved in shipping the parts from each supplier to Delta Automotive's facilities. Consider factors such as shipping distance, transportation mode (air, sea, land), freight charges, customs duties, and any insurance or handling fees.
3. Inventory Costs: Calculate the costs associated with inventory management, including holding costs, storage fees, and any costs related to managing and tracking inventory levels for the parts supplied by each supplier.
4. Quality Control Costs: Assess the expenses related to ensuring the quality and reliability of the automobile parts received from each supplier. This includes any costs associated with quality inspections, testing, and supplier audits.
5. Lead Time and Service Level: Consider the lead time required for each supplier to deliver the parts and the associated service level agreements. Evaluate any costs or penalties incurred due to delays or disruptions in the supply chain.
6. Risk Management Costs: Evaluate the costs associated with managing risks in the supply chain, such as the need for contingency planning, alternative sourcing options, or investments in supply chain resilience and flexibility.
7. Administrative and Overhead Costs: Account for any administrative and overhead costs directly related to managing the supply chain, including procurement activities, supplier relationship management, and coordination efforts.
By collecting and analyzing these data points for each global supplier, the global sourcing manager can compute the total supply chain costs associated with each supplier. This analysis will provide insights into the overall cost structure and help make informed decisions regarding supplier selection and supply chain optimization strategies.
for more questions on supply chain
https://brainly.com/question/25160870
#SPJ11
P 10 7 MC AVC ATC 4 MR - q 10 What is the value of this firm's total fixed costs? Enter your answer as a number below. No need to include a "$" sign.
Given the following data,
P = price, $10
Q = quantity, 7
MC = marginal cost
AVC = average variable cost
ATC = average total cost
MR = marginal revenue
q = output,
10 The formula for total fixed cost is:
Total Fixed Cost
= Total Cost - Total Variable Cost Where, Total Cost
= Quantity x Average Total Cost Total Variable Cost
= Quantity x Average Variable Cost
Therefore, Total Fixed Cost = (Quantity x Average Total Cost) - (Quantity x Average Variable Cost)We are given:
P = $10Q = 10MC = 7AVC = ATCMR = 4q = 10Total Variable Cost = Quantity x Average Variable Cost AVC = ATC Therefore, Total Variable Cost = Quantity x AVC Total Variable Cost = 10 x 7Total Variable Cost = $70Total Cost = Quantity x Average Total Cost Total Cost = 10 x ATC Total Cost = $100Total Fixed Cost = Total Cost - Total Variable Cost Total Fixed Cost = $100 - $70Total Fixed Cost = $30Therefore, the value of this firm's total fixed cost is $30.
To know more about marginal cost refer to:
https://brainly.com/question/30165613
#SPJ11
"How do the Minsky and Austrian explanations for the3 causes of the
Great Depression differ? Explain
how the proponents of government stimulus believe that it will
affect aggregate demand and employme"
Minsky and Austrian explanations for the causes of the Great Depression differ significantly. The Minsky explanation focuses on the inherent instability of capitalism due to the accumulation of debt and speculation while the Austrian explanation is based on the theory of the business cycle.
According to Minsky, the Great Depression was caused by the accumulation of debt and speculation which resulted in the collapse of the financial system. Minsky argued that the inherent instability of capitalism creates financial instability, which results in cycles of economic expansion and contraction. Minsky suggested that the government should intervene to regulate the financial system and prevent financial instability.
According to the Austrian School, the Great Depression was caused by the boom and bust cycle of the economy. The Austrian School believed that the boom was caused by the expansion of credit, which led to malinvestment and a misallocation of resources. The bust was caused by the liquidation of these investments and the correction of the market. The proponents of government stimulus believe that it will affect aggregate demand and employment by increasing government spending, which will stimulate the economy.
The government stimulus will increase aggregate demand by increasing consumer spending, which will lead to an increase in employment as businesses respond to the increased demand. Government stimulus can take many forms, including tax cuts, infrastructure spending, and social welfare programs. In conclusion, while the Minsky and Austrian explanations differ in their focus, both agree that the government should intervene in the economy to prevent or mitigate the effects of economic crises.
For more such questions on Great Depression
https://brainly.com/question/24303875
#SPJ8
Calculate Salary expense for Jan 24th pay day 13 Hired two full-time staff members, Lan and Liz, both who earn $36,000 a year and are paid bi-weekly beginning Jan 24.. Assume basic payroll deductions for Ontario. They work five days a week (Mon-Fri).
The total salary expense for Jan 24th pay day 13 for two full-time staff members, Lan and Liz, is $2,769.24.
To calculate the salary expense for Jan 24th pay day 13 for two full-time staff members, Lan and Liz, who earn $36,000 a year and are paid bi-weekly beginning Jan 24, you can follow the steps given below:
Step 1: Calculate gross pay for each employee per pay periodGross pay per pay period for each employee = Annual salary / Number of pay periods in a year
Gross pay per pay period for each employee = $36,000 / 26 (bi-weekly pay periods)
Gross pay per pay period for each employee = $1,384.62
Step 2: Calculate statutory deductions for each employee per pay period
Employment Insurance (EI) contribution = 1.58% of gross pay per pay period
EI contribution = 1.58% of $1,384.62
EI contribution = $21.90
Canada Pension Plan (CPP) contribution = 5.25% of gross pay per pay period
CPP contribution = 5.25% of $1,384.62
CPP contribution = $72.62
Income tax = As per Ontario basic personal amount for 2021, which is $10,880 annually or $418.46 per pay periodIncome tax = $418.46
Step 3: Calculate net pay for each employee per pay period
Net pay per pay period for each employee = Gross pay per pay period - Statutory deductions
Net pay per pay period for each employee = $1,384.62 - $21.90 - $72.62 - $418.46
Net pay per pay period for each employee = $871.64
Step 4: Calculate total salary expense for pay day 13
Total salary expense for pay day 13 = Gross pay per pay period x Number of full-time staff members
Total salary expense for pay day 13 = $1,384.62 x 2
Total salary expense for pay day 13 = $2,769.24
Therefore, the total salary expense for Jan 24th pay day 13 for two full-time staff members, Lan and Liz, is $2,769.24.
Learn more about salary expense at https://brainly.com/question/14896349
#SPj11