Answer:
The product can be manufactured at a higher cost.
Explanation:
according to equity theory, which is not an action an employee will take in response to feelings of inequity?
Change valence is not an action an employee will take in response to feelings of inequity according to equity theory.
Change valence is a collection of opinions from organization members about the advantages of change for the company. Because they think the change is necessary, organization members evaluate a planned organizational change. According to the equity hypothesis, when employees provide identical inputs and obtain equivalent results, the situation is viewed as fair by the employees. Employees see an unfair scenario when rewards vary for the same level of effort.
The degree to which a worker at a company thinks a change initiative will help the company is known as organizational valence. Value is the degree, if any, to which the outcome is appreciated. Employees will be happier with their work if they value a certain incentive highly.
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the fordney-mccumber tariff of 1922 a. was created to lure europeans to commercialize in the united states. b. raised tariffs on agricultural goods. c. raised tariffs on all imported goods. d. was supported by american diplomats. e. promoted free trade.
Answer (c) is the right choice. The Fordney-McCumber Tariff of 1922 increased import duties on all products.
What exactly is the 1922 Fordney-McCumber Tariff?In order to safeguard farms and factories, the Fordney-McCumber Tariff of 1922 increased American duties on a variety of imported goods. By passing the tax and encouraging international trade by making sizable loans to Europe, the US Congress demonstrated its support for business.
What negative effects did the Fordney-McCumber Tariff have?The Fordney-McCumber Tariff of 1922 was designed to hasten the postwar economy's recovery. Its increased tariffs on agricultural imports really lost American farmers a lot of money in the already-weak European markets.
What effects did the Hawley Smoot and Fordney-McCumber tariffs have?The Smoot-Hawley Tariff Act, passed in June 1930, increased the country's already high import taxes on foreign manufactured goods and agricultural products by roughly 20%. Prior to the Fordney-McCumber Act of 1922, the typical import duty on foreign goods was roughly 40%.
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richard is a division manager for a restaurant chain. he recently discovered that the general manager at one of his locations, john, had been stealing money from the restaurant. by the time john was caught, he had stolen nearly $800. richard learned from a recently hired consultant that the employees of that restaurant knew john was stealing, but did not report the theft. richard was baffled as to why the employees at that restaurant location had kept their suspicions to themselves. the same consultant informed him that the employees did not fully trust him, and that they were unsure whether they would face retaliation for reporting. what is a skill that richard should work on if he wants restaurant employees to report unethical behavior to him?
Active Listening Because taking orders for food and drinks is the most important part of being a server, you need to be good at active listening.
What do you consider to be the most essential abilities for this restaurant position?The hospitality sector relies heavily on effective communication skills. You can become a great leader as a restaurant manager by having excellent communication skills. You will interact with people of varying nationalities, ages, and backgrounds every day. Ideally, communicate in a manner that is easy to understand.
What abilities develop when you work in a restaurant?Certifications and training in food safety, allergens, and health.... Cross-contaminationTechnology in the food service, hospitality, and kitchenFood preparation and cooking.Profiling of taste.Smart in business.Be patient.Performing multiple tasks at once.Mental Calculus.Learn more about effective communication skills here:
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ware manufacturing company produced 2,000 units of inventory in january year 2. it expects to produce an additional 14,000 units during the remaining 11 months of the year. in other words, total production for year 2 is estimated to be 16,000 units. direct materials and direct labor costs are $64 and $52 per unit, respectively. ware expects to incur the following manufacturing overhead costs during the year 2 accounting period. production supplies $ 20,000 supervisor salary 160,000 depreciation on equipment 75,000 utilities 20,000 rental fee on manufacturing facilities 45,000 required combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. determine the cost of the 2,000 units of product made in january.
The cost of the 2,000 units of product made in January is $266,380.
First, we need to calculate the total estimated overhead costs:
total estimated overhead costs= 20,000 + 160,000 + 75,000 + 20,000
total estimated overhead costs= $275,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 275,000 / 16,000
Predetermined manufacturing overhead rate= $17.19 per unit
Finally, we can calculate the total production cost of the 2,000 units made in January:
Total production cost= total unitary cost ×number of units
Total production cost= (64 + 52 + 17.19)×2,000
Total production cost= $266,380
In economics, total cost (TC) is the minimum dollar cost of producing a few quantities of output. this is the entire economic cost of production and is made from variable value, which varies in step with the amount of an amazing produced and includes inputs including hard work and raw materials, plus fixed value, that is impartial to the amount of a good produced and consists of inputs that can't be numerous within the quick term together with homes and machinery, along with probably sunk charges.
General value in economics includes the total opportunity cost (blessings received from the subsequent-nice opportunity) of every aspect of production as a part of its fixed or variable costs.
The additional total cost of 1 additional unit of production is called marginal cost.
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Ariba Coffee Company roasts and packs coffee beans. The process begins by placingcoffee beans into the
Roasting Department. From the Roasting Department, coffee beansare thentransferred to the Packing
Department. The following is a partial work inprocess account of the Roasting Department at March 31, 2020:
ACCOUNT Work in Process—Roasting Department
A production report is important because it informs managers about the number of units produced in each department and the pertinent costs that were incurred during the production process.
The area of accounting known as cost accounting examines a company's cost structure. This division is responsible for compiling information on the costs associated with the organization's operations and allocating those costs to various goods and services.
The production report is a crucial document that gives managers important details about the number of units produced in each department and the pertinent costs incurred during the production process.
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COMPLETE QUESTION:
Cost of Production Report
Ariba Highland Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work-in-process account of the Roasting Department on July 31:
ACCOUNT Work in Process—Roasting Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
July 1 Bal., 6,100 units, 2/5 completed 20,496
31 Direct materials, 244,000 units 756,400 776,896
31 Direct labor 155,900 932,796
31 Factory overhead 38,964 971,760
31 Goods transferred, 245,000 units ?
31 Bal., ? units, 1/5 completed ?
Required:
1. Prepare a cost of production report, and identify the missing amounts for the Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent unit, round to two decimal places.
Ariba Highland Coffee Company
Cost of Production Report-Roasting Department
For the Month Ending July 31
Unit Information
Units charged to production:
Inventory in process, July 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, July 1
Started and completed in July
Transferred to Packing Department in July
Inventory in process, July 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
Direct Materials Conversion
Total costs for July in Roasting Department $ $
Total equivalent units
Cost per equivalent unit $ $
Costs charged to production:
Direct Materials Conversion Total
Inventory in process, July 1 $
Costs incurred in July
Total costs accounted for by the Roasting Department $
Cost allocated to completed and partially completed units:
Inventory in process, July 1 balance $
To complete inventory in the process, July 1 $ $
Cost of completed July 1 work in process $
Started and completed in July
Transferred to Packing Department in July $
Inventory in process, July 31
Total costs assigned by the Roasting Department $
2. Assuming that the July 1 work-in-process inventory includes $18,300 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to the nearest cent.
Increase or Decrease Amount
Change in direct materials cost per equivalent unit $
Change in conversion cost per equivalent unit $
on november 1, 2024, a company signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on may 1, 2025. what effect does receiving cash and signing a note have on the financial statements?
The effect that receiving cash and signing a note have on the financial statements is assets increase and liabilities increase.
Assets in financial accounting are the resources needed by a company to operate and expand. Current assets and noncurrent assets are the two types of assets that make up a company's total assets and are listed on the balance sheet of the business. When compared to noncurrent assets, which have a useful life of more than a year, current assets are long-term because they are required for a company's immediate needs.
Financial statements are written records that outline a company's operations as well as its financial performance. Government organizations, accounting firms, and other entities frequently audit financial statements to ensure their accuracy and for reasons related to taxes, financing, or investing.
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michael's, incorporated, just paid $2.35 to its shareholders as the annual dividend. simultaneously, the company announced that future dividends will be increasing by 5.1 percent. if you require a rate of return of 9.3 percent, how much are you willing to pay today to purchase one share of the company's stock?
If I need a rate of return of 9.3%, today I would be willing to pay $55.95 for a stake in the business.
What does a return rate mean?A rate of return is the net gain or loss of an investment over a predetermined time period expressed as a percentage of the investment's initial cost. You choose the percentage that changed from the start of the term to the end when figuring out the rate of return.
The basic growth rate or return on investment are other names for this straightforward rate of return. If the time value of money and inflation are also taken into account, another way to define the real rate of return is the net amount of discounted cash flows (DCF) received on an investment after accounting for inflation.
Calculation:
The following formula can be used to determine the share's current price:
Share price equals dividend (rate of return-dividend growth rate)
Currently, the dividend per share is $2.35.
9.3% is the required rate of return for stock investors.
The anticipated dividend payout increase is 5.1%.
current share price = $2.35/(9.3%-5.1%)
= $55.95
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if the required reserve ratio is 10 percent, or 1/10, a $10,000 new deposit can trigger a maximum increase in the money supply of:
A $10,000 new deposit can trigger a maximum increase in the money supply of 90000.
What is deposit?Deposit is a financial term that means money in the bank. A deposit is a transaction in which money is transferred to another party for safekeeping. However, a security deposit can mean that part of the money that is used as security or guarantee for the delivery of the goods.
Deposit has two different meanings. A particular type of deposit involves the transfer of funds to another party for safekeeping. According to this definition, a deposit means money deposited by an investor into a savings account or checking account at a bank or credit union.
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on april 1st, bob the builder entered into a contract of one-month duration to build a barn for nolan. bob is guaranteed to receive a base fee of $4,900 for his services in addition to a bonus depending on when the project is completed. nolan created incentives for bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. nolan offered to pay an additional 25% of the base fee if the project finished 2 weeks early and 15% if the project finished a week early. the probability of finishing 2 weeks early is 20% and the probability of finishing a week early is 60%. what is the expected transaction price with variable consideration estimated as the expected value?
Any remuneration you give an employee over and beyond their base hourly rate or salary is known as additional pay.
How to calculate the additional pay?This is a succinct summary of the query:
Duration Pay Probability
Normal $4,900 1
finish 2 wks early 25% more 25% or 0.25
finish 1 wk early 20% more 55% or 0.55
At Normal Duration,
Total Pay = Pay x Probability = $4,900 x 1 = $4900
At finish 2 wks early (25% variable consideration),
Additional pay = $4,900 x 25%
= $4,900 x 0.25
= $1,225.
Total pay (at 25% probability) =$4,900 x 0.25 = $1,225
At finish 1 wk early (20% variable consideration)
Additional pay = $4,900 x 20%
= $4,900 x 0.20
= $980.
Total pay (at 60% probability) = $4,900 x 0.6 = $2940
At finish (10% variable consideration)
Additional pay = $4,900 x 60%
= $4900x 0.1
= $490
Total pay (at 0% probability) = $490 x 0 = $0
Hence,
the expected transaction price with the variable consideration estimated as the expected value
Grand total = $4900+ $980+ $2940+ 0 = 8820.
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when there are economies of scope between two products that are separately produced by two firms, merging into a single firm can multiple choice lead to an increase in cost. lead to a reduction in sales. accomplish a reduction in costs. accomplish an increase in sales.
When the cost of producing both products together is lower than the cost of producing them separately, economies of scope exist between them.
The term "Economies of Scope" refers to situations in which the marginal cost of producing two or more goods together is lower than that of producing them separately.
In business, what exactly is economies of scope?
An economic principle known as economies of scope states that a company's unit cost to produce a product will decrease as its product range expands. To put it another way, the total cost to produce each item will decrease the more distinct but similar products you produce.
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Do Nothing Policy posits that the best policy is for the government to do nothing, i.e leave people alone to purse their self interest as they define it. In the case of the US/Mexico used car markets, the Mexican government violated The Do Nothing Policy by interfering in the free market for used cars. Regulating and taxing the import of used cars prevented Americans and Mexicans from engaging in mutually beneficial voluntary exchange. NAFTA, by removing the regulations and taxes shifted from a Do Something to a Do Nothing Policy. The effect of NAFTA was This was accomplished without coercion, financial incentives, or moral persuasion but by simply leaving people alone to pursue their selfinterest as they define it, i.e. allowing the free market to operate. In this case, it meant US car owners selling their cars in Mexico because they could get a price. Mexican consumers enriched themselves because the price of used cars in Mexico Both Mexicans and Americans were better off after the shift to a free market. This is similar to wealth creation that occurs when people specialize according to comparative advantage and exchange because
The Do Nothing Policy is when government does not intervene in regular workings of a situation under their jurisdiction and is sure that left people will do.
What is Do Nothing?Do Nothing denotes that the incumbent won't hunt down the rival or engage in predatory behavior. Depending on how the ownership lottery in time 1 turns out, either the present manager M 1 or the competing manager M 2 will handle the assets independently if the incumbent chooses to do nothing or if predation fails. It is undoubtedly ex ante optimum for the incumbent to select a debt level sufficiently high within the range of financial postures that induce do-nothing in order to avoid inadvertently driving up asset prices in secondary asset markets by making unsuccessful offers for entrant assets. Therefore, any ex ante ideal posture causing inaction must include D D(l), as this reduces willingness-to-pay.
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The organizational structure and locus of decision making in multinational corporations are determined by a number of factors. Which of the following is NOT one of those factors?
a.The degree of involvement in international operations
b.The demographic characteristics of customers in each region
c.The business in which the firm is engaged
d.The human resource capability of the firm
The demographic characteristics of customers in each region [OPTION B] are not one of the factors of organizational structure and locus of decision-making in MNCs.
What are demographic characteristics?it is statistics that describe population groups and their characteristics. Demographic data refers to statistically expressed socioeconomic information such as employment, education, income, marriage rates, birth rates, and death rates.Governments, businesses, and non-governmental organizations use demographic data to learn population characteristics for many purposes, including policymaking and economic market research.Examples of demographic characteristicsmartial statusincome leveleducationhealthsizeageracegenderreligionnationalitylearn more about demographic characteristics
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irrelevant costs include . multiple select question. sunk costs future costs that differ between alternatives future costs that do not differ between alternatives all fixed costs
Sunk expenses and inescapable costs are examples of irrelevant costs. Sunk costs are historical expenses that the company has already incurred or paid for and which won't be impacted by actions made in the future. Costs that the business will bear regardless of its choice are those that cannot be avoided.
Sunk expenses are among the useless costs. future expenses that are consistent across all options. Expenses that have been incurred but cannot be recovered are known as sunken costs. It shouldn't be taken into account when choosing future actions. It is a pointless expense.
Relevant costs include future expenses that don't change depending on the choice. Sunk costs are not important when making decisions because they were already incurred. However, not all unnecessary expenses are sunk costs.
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costa company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each. barton company has approached costa about buying 2,000 units for only $300 each. the units would be packaged in bulk, saving costa $20 per unit when compared to the normal packaging cost. normally, costa has a variable cost of $280 per unit. the annual fixed cost of $2,000,000 would be unaffected by the special order. what would be the impact on profits if costa were to accept this special order? question 11 options: profits would increase $40,000. profits would increase $60,000. profits would decrease $200,000. profits would increase $80,000
If Costa were to accept this special order there would be an increase of $80,000. Hence, the correct choice of response for this question would be option (d).
Give a brief account on Marginal Production.When all other units remain constant, marginal production is the additional output that a business produces by adding one additional labor unit. You can expand the quantity of product you create by introducing additional production elements. The marginal product is the increased productivity attained by adding more than one work unit. In order to make decisions, identify chances for production improvement, and calculate the marginal revenue product of labor, it is crucial to understand marginal production in business operations.
To solve the question :
As we know that fixed costs are not affected by this special order, we will not consider the annual 2,000,000 outlay. We will only be concerned with our MC and MR in order to determine our additional profit or loss.
Step 1 : Calculate the margin per unit on this special order:
Selling price = $300
Typical Unit Cost = $280
Savings from bulk packaging = $20 per unit
New Cost per unit = (Typical Unit Cost - Savings for bulk packaging)
= $280 - $20
= $260 per unit
Profit per unit = (selling price - new cost per unit)
= $300 - $260
= $40 per unit
Now, we need to multiply our profit per unit by the amount of units in the special order:
= 2,000 x $40
= $80,000 increase
Hence, there is an increase of $80,000.
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which type of consumer product is often very expensive, purchased infrequently, and takes an extensive amount of purchase decision time?
The appropriate word to use in place of the missing word is speciality. A specialised product is one that a customer would not accept as a substitute.
These are goods that customers would actively seek out due to their unique qualities or the brand name itself Products that fulfil a consumer’s wishes or needs are known as consumer goods. There might be both economical and practical as well as pricey and rarely bought.Consumer goods are finished products that are sold to customers to use. It is typically not employed as a tool for expanding economic productivity.While certain consumer items are perishable and expiration dates and must be used quickly, others are durable and can last for three years or longer.Finally, depending on how frequently they are used, consumer goods can be divided into various groups based on customer behaviour.
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Corporate strategy helps managers understand which strategy question?
a. How should the firm compete?
b. How should the firm expand?
c. Where should the firm expand?
d. How can the firm buy out a competitor?
e. Where should the firm compete?
Corporate strategy helps managers understand
e. Where should the firm compete?
Market economies must incorporate competition. Different businesses are free to use various methods to draw clients, including value, convenience, and price. Depending on the product and market structure, the type of competition will vary. For instance, price will be important in a market where there are numerous vendors selling potatoes. To find the best deal, consumers will comparison shop. Price is only one of many considerations for a service like a meal at a restaurant, though. Businesses in this situation will be looking for customers based on factors like food quality, the environment, and a convenient location.
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A purely competitive industry has a very ______ number of sellers, whereas the other three market structures reflect a progressively ______ or ______ number of sellers.
A purely competitive industry has a very large number of sellers, whereas the other three market structures reflect a progressively smaller or decreasing number of sellers.
What are the two methods a firm engaged in pure competition can use to identify the output level at which it will make the most money or suffer the least losses?
The level of output at which a competitive firm will earn maximum profits or least losses can be determined using two complementing methods. In the first, total revenue and total costs are compared; in the second, marginal revenue and marginal costs are compared.
Firms engaged in pure competition act as price takers and base decisions on marginal costs. A seller who must accept the market price in order to sell their goods is known as a price taker.
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In an interview, you were asked to explain the steps involved in a successful authentication by a radius server. How should you answer?.
The RADIUS server gets the user credentials from the message and looks for a match in a user database. If the user name and password match an entry in the database, the RADIUS server can get additional information about the user from the user database. it also checks to see whether it has an access policy or a profile in its configuration that matches all the information it has about the user. If such a policy exists, the server sends a response.
A RADIUS Server supports a ramification of strategies to authenticate a consumer. RADIUS Server authentication and authorization pass hand in hand and commonly start whilst a person attempts to connect with the RADIUS patron through the usage of a username and password.
A RADIUS Server is a background procedure that runs on a UNIX or home windows server. It helps you to hold personal profiles in a vital database. subsequently, when you have a RADIUS Server, you have got manipulate over who can connect to your network. A RADIUS consumer (or network gets entry to Server) is a networking tool (like a VPN concentrator, router, or transfer) this is used to authenticate customers.
RADIUS Servers also are used for accounting functions. RADIUS accounting collects information for community tracking, billing, or statistical functions. The accounting method usually begins whilst the user is granted get entry to the RADIUS Server. but, RADIUS accounting also can be used independently of RADIUS authentication and authorization.
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obligations associated with disposition of property, plant, equipment, or natural resources are called
The obligations associated are known as asset retirement.
Asset retirement is the process of removing an investment or part of an investment from the group of investments. is accounted for in the books as the withdrawal of an asset or a portion of an asset. Retirement happens when a depreciable item is taken out of service without receiving any compensation for its salvage value.
In the process of asset retirement, the asset's net book value, if any, is written off as a loss in addition to the asset's cost and accrued depreciation being eliminated from the books. The section of the income statement titled other income and expense, net contains any realized losses or gains related to the disposition that is recorded in a separate account.
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mr. elite invested $100,000 in an old, classic rolls-royce. he expects it to increase 5% per year for the next 5 years. how much will his car be worth after five years?
Mr. elite invested $100,000 in an old, classic Rolls-Royce. He expects it to increase 5% per year for the next 5 years. It will worth $127,628.156 after five years.
Present value = $100,000
Rate= 5%
Number of years= 5
worth of classic Rolls-Royce after 5 years= present value*(1+r)^n
=100,000*(1+5%)^5
= $127,628.156.
What is return on investment?
Return on Investment (ROI) is a rough measure of the profitability of an investment.
ROI is calculated by subtracting the initial cost of investment from the final value, dividing this new number by the investment cost, and finally multiplying by 100.
ROI can be used in many ways. It can be used to measure the profitability of a stock, decide whether to buy a business, or assess the success of a real estate transaction.
The downside of ROI is that it doesn't take into account the holding period of the investment.
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If a firm is earning an accounting profit, it is definitely earning an economic profit that is at least as large as the accounting profit too True or False
True, While a firm earning an accounting profit is definitely earning an economic profit, it is possible for the economic profit to be larger than the accounting profit.
The accounting profit:Accounting profit is the difference between the total revenue and the total costs of a company. The total costs include both the explicit costs and the implicit costs. The explicit costs are the direct costs that are incurred in the production of the good or service. The implicit costs are the opportunity costs that are incurred when the company uses its resources for something other than production.
The accounting profit is important because it provides a measure of how much revenue a company has generated from its activities. It is also a useful tool for managers to use when making decisions about how to allocate resources.
One limitation of accounting profit is that it does not take into account the opportunity cost of the resources that a company uses. For example, if a company uses its factory to produce widgets, the opportunity cost of using the factory is the revenue that the company could have earned if it had used the factory to produce something else. This opportunity cost is not included in the accounting profit.
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what dollar amount of loans have lending tree and prosper (p2p) disbursed so far?
The dollar amount of loans, lending tree, and prosper (p2p) has done in disbursement so far is 3.4 trillion dollars
What is a lending tree?Generally, LendingTree is a digital marketplace for loans with its headquarters in Charlotte, North Carolina.
The commercial platform gives prospective borrowers the ability to connect with multiple loan operators in order to locate the most advantageous terms for various types of loans, credit cards, deposit accounts, and insurance policies.
In conclusion, They have provided loans for a total of 3.4 quadrillion dollars up to this point. They have provided loans for a total of 3,4 trillion dollars up to this point.
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an investor has entered into a contract to pay an investment company a specific sum of money in exchange for the company's agreement to pay the investor a specific (larger) sum of money on a specific date in the future. the investment company must be
The investment company must be a face-amount certificate company.
Investments are things or assets that are bought with the hope of making money or appreciating in value. An asset's value increasing over time is referred to as "appreciation." When someone purchases something as an investment, they don't intend to use it right away; instead, they want to use it to profit in the future.
Four main asset classes or investment types are available to you, each of which has specific characteristics, dangers, and benefits.
investments in expansion. Shares. True estate. defense-oriented investments. Cash and varying interest. The most basic explanation of how investing works is to buy something for a low price and sell it for a higher price. This type of return on investment is known as a capital gain.
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in a given year, a marketing firm has the following costs: $510,000 in wages and salaries paid to employees; $70,000 in rental payments for office space; and $68,000 for office supplies, advertising, and utilities. in addition, van, the owner of the firm, works for the firm full time (and is not paid a salary, since he receives the firm's profits). if he did not work for the marketing firm, van could earn $110,000 per year working as a marketing manager for another firm. for each possible amount of total revenue, fill in the accounting profit and economic profit of the marketing firm.
A company can make two main kinds of profits. Accounting profits are the basis for all profits. Accounting profits are subtracted from economic expenses to determine economic profit or loss.
Accounting profits are profits that take into account all recognized revenues and expenses associated with an operation. Total Revenue (in dollars) Accounting Profit (in dollars) Economic Profit (in dollars) 730,000 133,000 23,000 780,000 183,000 73,000 830,000 233,000 123,000 880,000 283,000 173,000Economic profits account for all of the operation's lost revenue. Therefore, in order to calculate economic profit, we need to take into consideration the $110,000 in lost wages that Deborah could have earned if she were not running her business.
What is implied by financial benefit?
The difference between the costs of all inputs used, as well as any opportunity costs, and the revenue from the sale of an output is an economic profit or loss. Opportunity costs and explicit costs are subtracted from earned revenues when calculating economic profit.
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which of the following is true when firms in an industry reach diseconomies of scale at relatively low levels of production? a.) firms will be exiting the industry. b.) other firms can easily enter the market. c.) the market price will increase. d.) firms will be shutting down.
when firms in an industry reach diseconomies of scale at relatively low levels of production then b.) other firms can easily enter the market.
Diseconomies of scale often occur when the production process loses efficiency, increasing the cost of creating additional units of output. Diseconomies of scale frequently result in a company's decreased profitability since they raise marginal expenses.
Diseconomies of scale are not always a negative thing. Instead, it is a wasteful use of resources because it raises the price of commodities over what they otherwise would. This is due to the fact that as a company grows, the cost to create it rises.
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the second of porter's 5 forces refers to the ease with which a new competitor can enter the market. strong to entry decrease the strength of this force.
The second of Porter's 5 forces is the threat of new entrants
What are the second of porter's 5 forces?These forces affect a company's profitability by affecting the quantity and strength of its rivals in the market, potential new market entrants, suppliers, customers, and substitute products.An industry's vulnerabilities and strengths can be ascertained using Porter's Five Forces, a model that identifies and examines five competitive forces that affect every industry. The structure of an industry is typically identified using the Five Forces analysis to develop company strategy.Any sector of the economy can use Porter's model to analyze the level of industry competition and boost a firm's long-term profitability.Competition in the industry, Potential of new entrants into the industry, Power of suppliers, Power of customers, Threat of substitute productsHence, The second of Porter's 5 forces is the threat of new entrants
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yelne florist has 2,000 bonds outstanding with a face value of $1,000 each, a market value of $1,060 each, and a coupon rate of 9 percent. the interest is paid semiannually. what is the amount of the annual tax shield on debt if the tax rate is 23 percent?
The annual tax shield on debt with the given tax rate will be equal to $41400.
After the completion of the maturity period of the bond, its value is calculated in order to determine that whether the bond was profitable or whether purchasing the bond was not at all beneficial for the company or organization. According to the question,
Total number of bonds = 2000
Face value = $1000 per bond
Market value = $1060
Coupon rate = 9%
Tax rate = 23%
Now, the formula for calculating Total Interest Expense is expressed as
Total Interest Expense = Total number of bonds × Face value × Coupon rate
Total Interest Expense = 2000 x $1000 per bond x 9%
Total Interest Expense = $180000
Now, the Interest shield will be expressed as
Interest Shield = Total Interest Expense × Tax rate
Interest Shield = $180000 × 23%
Interest Shield = $41400
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on a previous sale of $3,000, shark co. accepts a return of $1,000 from its customer. the original cost of the goods returned was $450. the entry to record this return would include a credit to
A credit of $1,000 would be made to Accounts Receivable as part of the entry to record this return.
When a consumer or client sends a product back to the seller, it is referred to as a sales return. There are a variety of justifications for returns by customers, including Excessive quantity: A customer may have ordered more goods than they require, or a business may have mistakenly shipped excess goods.
Sales return and allowance account Dr. $ 1000
To Account receivables A/c $ 1000
(Being sales return of $ 1000)
Gross profit = Net sales - Cost of goods sold
Net sales = Sales Revenue - Sales return - sales discount
Net Sales = $2,000,000 - $360,000 - $50,000
Therefore, Net Sales = $1,590,000
Gross Profit = Net Sales - Sales returns - Sales Discount
Gross profit = $1,590,000 - $1,120,000
Therefore, Gross Profit = $470,000.
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Apple has a first-mover with many of its products, which means that apple is able to.
Apple is widely known for being a first mover with many of its products. This means that Apple is able to "preempt rivals and capture demand".
Understanding the First-Mover StrategyA first mover is a company or business that achieves a competitive advantage by being the first to bring a product or service to market. Being the first to enter a market typically enables the company to establish strong brand awareness and customer loyalty before rivals join the arena. What distinguishes Apple as a first mover? Apple redefined the smartphone by inventing a simple and elegant method to interact with it. They accomplished something no one else in the industry had done before: they eliminated the hardware keyboard and replaced it with a touchscreen.
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when firms in monopolistic competition earn positive economic profits, how will additional firms react?
Long-term, the monopolistic competitor's strong economic earnings will spur a response from both inside and outside companies.
A form of imperfect competition known as monopolistic competition involves numerous producers vying for customers while offering goods that are distinct from one another and, therefore, cannot be fully substituted. total control over something, especially over a business area, or the attempt to do so in order to prevent others from having any share: She didn't think the penalty was enough of a deterrent for large producers to engage in monopolistic behavior. Monopolistic behavior against the business is alleged. Monopoly is cited. Monopolistic competition, which lies between a monopoly and perfect competition and combines aspects of both, includes business with comparable but distinct product offerings. Industries with monopolistic competition include those in the food service, beauty care, home goods, and apparel sectors. Large economies of scale are possible when there are monopolies.
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