If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210 bags, then the price elasticity of demand (by the midpoint method) is:

Answer:Price elasticity of demand = -0.05

Explanation:

Price elasticity of demand using the midpoint method= [tex]\frac{(Q2- Q1)/(Q2+Q1)/2}{(P2- P1)/(P2+P1)/2}[/tex]

where  Q =Quantity demanded

P = Price

Price elasticity of demand =  ([tex]\frac{(210-190/210+190)/2}{0.90-1.10/ 0.90+1.10)/2}[/tex]

 =     [tex]\frac{20/400)/2 }{ -0.2/2)/2}[/tex]

0.025/ -0.05 = -0.05

Price elasticity of demand = -0.05

The Price elasticity of demand tells us how much quantity demanded changes in response to a change in price. Here the Demand for a good is  inelastic because  the PED coefficient is less than one -0.05

Answer:

Elasticity = 0.5

Explanation:

Elasticity is defined as the responsiveness of quantity demanded to changes in price. One of the methods used to calculate it is the midpoint method.

Midpoint method uses average values to calculate the elasticity of demand of a good.

Elasticity = {(Q2 - Q1) ÷ (Q1 + Q2)/2} ÷ {(P2 - P1) ÷ (P1 + P2)/2}

Elasticity = {(210 - 190) ÷ (210 + 190)/2} ÷ {(0.9 - 1.10) ÷ (0.9 + 1.10)/2}

Elasticity = 0.1 ÷ 0.2

Elasticity = 0.5

The following inventory valuation errors have been discovered for Knox Corporation:
The 2015 year-end inventory was overstated by $23,000
The 2016 year-end inventory was understated by $61,000
The 2017 year-end inventory was understated by $17,000
The reported income before taxes for Knox was:
Year: Income before Taxes:
2015 $138,000
2016 $254,000
2017 $168,000
Required:
Compute what income before taxes for 2015, 2016, and 2017 should have been after correcting for the errors.

Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead rates:

Molding Assembly Total
Estimated total machine-hours (MHs) 3,000 7,000 10,000
Estimated total fixed manufacturing overhead cost $24,000 $53,200 $77,200
Estimated variable manufacturing overhead cost per MH $1.00 $2.00

During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow:

Job E Job M
Direct materials $21,600 $9,300
Direct labor cost $22,600 $9,500
Molding machine-hours 2,500 500
Assembly machine-hours 2,500 4,500

Required:
a. Assume that the company uses a plant-wide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate, (Round your answer to 2 decimal places.)
b. Assume that the company uses a plant-wide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job E. (Do not round intermediate calculations.)
c. Assume that the company uses a plant-wide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job E. (Do not round intermediate calculations.)
d. Assume that the company uses a plant-wide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% on manufacturing cost to establish se ling prices. Calculate the selling price for Job E. (Do not round intermediate
calculations.)
e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Molding department? (Round your answer to 2 decimal places.)
f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the a location base in both production departments. What is the departmental predetermined overhead rate in the Assembly department? (Round your answer to

What cycle time (in minutes) would match capacity and demand if demand is 100 units per day, there are two 8 hour shifts with 3 worker(s) each, and each worker gets two 18 minute breaks and one 40 lunch.

Jim wants to start his own business and needs $10,000 for working capital. He applies for a business loan at FirstBank. The banker tells Jim that the Bank will make the loan if Jim's father will personally guarantee repayment of the loan. Jim assures the banker that his father will do this. The banker calls Jim's father to confirm that he will guarantee Jim's $10,000 loan. Jim's father says: "Sure thing, I'd do anything for that boy." The bank makes the loan to Jim. Jim's new business is not successful and Jim is unable to repay the loan. Jim has no money. Jim's father has buckets of money. The bank sues Jim's father to recover the unpaid amount of the loan plus interest plus attorneys' fees and costs of collecting the debt.
Which of the following is true?
A. Jim's father can make a strong argument that he is not liable to pay his son's debt because the Bank did not have him sign a written guaranty agreement.
B.The oral agreement to guaranty the loan is not enforceable because it is contrary to public policy.
C.Jim’s father is liable to pay his son’s debt because the Bank partially performed under the loan agreement.
D.If it can be proven in a court of law that Jim's father orally agreed to guarantee the loan, Jim's father will be held liable for the repayment of the loanbecause 'a deal is a deal'.

Who was the first missionary to arrive in Africa?​

Aracel Engineering completed the following transactions in the month of June.
a. Jenna Aracel, the owner, invested $175,000 cash, office equipment with a value of $5,200, and $76,000 of drafting equipment to launch the company in exchange for common stock.
b. The company purchased land worth $56,000 for an office by paying $8,000 cash and signing a long-term not payable for $48,000.
c. The company purchased a portable building with $54,000 cash and moved it onto the land acquired in b.
d. The company paid $2,600 cash for the premium on an 18-month insurance policy.
e. The company completed and delivered a set of plans for a client and collected $6,200 cash.
f. The company purchased $32,000 of additional drafting equipment by paying $11,900 cash and signing a long-term not payable for $20,100.
g. The company completed $18,000 of engineering services for a client. This amount is to be received in 30 days.
h. The company purchased $2,000 of additional office equipment on credit.
i. The company completed engineering services for $25,000 on credit.
j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,409 rent cost must be paid within 30 days.
k. The company collected $7,000 cash in partial payment from the client described in transaction g.
l. The company paid $2,400 cash for wages to a drafting assistant.
m. The company paid $2,000 cash to settle the account payable created in transaction h.
n. The company paid $1,105 cash for minor maintenance of its drafting equipment.
o. The company paid $10,170 cash in dividends.
p. The company paid $2,400 cash for wages to a drafting assistant.
q. The company paid $4,000 cash for advertisements on the web during June.
1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604).
Transaction General Journal Debit Credit
a.

Presented below is information from Headland Computers Incorporated.
July 1 Sold $22,600 of computers to Robertson Company with terms 3/15, n/60. Headland uses the gross method to record cash discounts. Headland estimates allowances of $1,334 will be honored on these sales.
10 Headland received payment from Robertson for the full amount owed from the July transactions.
17 Sold $256,100 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
30 The Clark Store paid Headland for its purchase of July 17.

What was the first chess champion

Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimated residual value at the end of its useful life. The remaining useful life of the leased equipment is 15 years. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $60,000 are due at the beginning of each year beginning January 1, 2021. Both companies use the straight-line method in depreciation/amortization their assets.

Pooling has been used for a long time by businesses as a way to reduce risk. Imagine that years ago a small paint factory employed 200 people, each with an annual salary of $600/year. The factory owner knew from experience that 4 percent of workers were being injured each year, becoming unable to work. The factory owner decided to set up a fund to pay injured workers three months of salary to help their families and build good will with employees. The owner did not contribute to the injury fund. The workers themselves contributed a fixed amount each year to fund the plan. Answer the following questions (1 point each):_____.
1. How much did the owner need to collect from employees in total to fully fund the plan each year?
2. How much did each employee have to contribute each year to fully fund the plan?
3. What percentage of salary did each employee contribute to have an injury fund like this?

Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018.


Other information:

Lease term 5 years
Annual payments $79,000 on January 1 each year
Life of asset 5 years
Implicit interest rate 7%
PV, annuity due, 5 periods, 7% 4.3872
PV, ordinary annuity, 5 periods, 7% 4,1002

Hi-Tech's cost of the equipment $346,589 There is no expected residual value.

Required:
Prepare appropriate journal entries for Hi-Tech Leasing for 2018 and 2019. Assume a December 31 year-end.

Organizations are often divided into units or departments. Which of these is NOT a common way to organize a company?
Group of answer choices
By function
By product
By employee compensation
By customer

Hussein got a call yesterday from First Bank, the company that issued his credit card inquiring about an $105.00 charge made in Buenos Aires, Argentina. Upon learning that Hussein was in Detroit and had not made this purchase, the bank quickly took steps to cancel the card and issue a new one. Given the circumstances that Hussein's credit card number had an illegal transaction, he may also want to:____________.
A) check his computer's firewall to make sure it's working.
B) cancel his account and eliminate credit cards from his life.
C) change his passwords and store them in a password manager.
D) diversify his spending habits by using one of several credit cards when making purchases.

An example of economies of scope is: Group of answer choices Google utilizing its information processing capabilities to provide data analysis services to other firms. The 200,000 unit production threshold for GM to make a profit on a car model. Decreasing per unit costs given increased unit production. Increasing per unit costs given increased unit production. None of the available answers.

Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000, an annual operating cost of $160,000 per year, and $125,000 salvage value after its three-year life. Method 2 will cost $830,000 with an annual operating cost of $120,000. and a $240,000 salvage value after its five-year life. The company has asked you to determine which method is better, but it Wants the analysis done over a three-year planning period. The salvage value of Method 2 will be 35% higher after three years than it is after five years. If the company's minimum attractive rate of return is 10% per year, which method should the company select?

Mountain Cycle specializes in making custom mountain bikes. The company founder, PJ Steffan, is having a hard time making the business profitable. Knowing that you have good business knowledge and solid financial sense, PJ has come to you for advice.

Project Focus PJ would like you to determine how many bikes Mountain Cycle needs to sell per year to break even (Profit =0). Solve using the followings.

Fixed cost equals $65,000
Variable cost equals $1,575
Unit Bike price equals $2,500

Mark or Make is a bourbon distillery. Sales have been steady for the past three years, and operating costs have remained unchanged. On January 1, 2019, Mark or Make took advantage of a special deal to prepay its rent for three years at a substantial savings. The amount of the prepayment was $60,000. The income statement items (excluding the rent) are shown here.

2019 2020 2021
Gross profit on sales 350,000 349,000 351,000
Operating expense 210,000 210,000 210,000

Assume that the rental is deducted on the corporate tax purposes in 2019 and that there are no other temporary differences between taxable income and pretax accounting income. In addition, there are no permanent differences between taxable income and pretax accounting income. The corporate tax rate for all three years is 30%.

Required:
Construct income statements for 2019, 2020, and 2021 under the following approaches to interperiod income tax allocation:

a. No allocation
b. Comprehensive allocation
c. Do you believe that no allocation distorts Mark or Make’s net income? Explain.

Presented below is information for Headland Company.

1. Beginning-of-the-year Accounts Receivable balance was $21,400.
2. Net sales (all on account) for the year were $105,300. Headland does not offer cash discounts.
3. Collections on accounts receivable during the year were $81,300.

Required:
Compute Headland’s accounts receivable turnover and days to collect receivables for the year.

Three explorers are getting kidnapped by an evil tribe deep in the jungle, and their life now depends on their ability to correctly answer the following challenge the evil tribe's chief has for them. The explorers are tied to three trees facing each other and are presented with the chief's 5 wives: 3 brunettes, and 2 blondes. The three explorers are now blindfolded, and the chief picks three of his five wives to stand behind the trees the explorers are tied to, one behind each tree. The remaining two wives disappear from view. Then the blindfolds come off, and each explorer is able to see the two wives that are standing behind his two colleagues, but not the one behind himself. Each explorer now has up to 10 minutes time to think, after which each has to correctly answer what hair color the wife has that is standing behind him, or lose his life. When you, as one of the three explorers, gain your sight after the blindfold comes off, you see two brunettes standing behind your two colleagues. And now your life depends on figuring out who is behind you: a blonde or a brunette?

The following selected transactions were completed by Capers Company during October of the current year:

Oct. 1 Purchased merchandise from Sabol Imports Co., $15,458, terms FOB destination, n/30.
3 Purchased merchandise from Saxon Co., $9,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $200 was added to the invoice.
5 Purchased merchandise from Schnee Co., $13,550, terms FOB destination, 2/10, n/30.
6 Issued debit memo to Schnee Co. for merchandise with an invoice amount of $4,350 returned from purchase on July 5.
13 Paid Saxon Co. for invoice of July 3.
14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6.
19 Purchased merchandise from Southmont Co., $27,270, terms FOB shipping point, n/eom.
19 Paid freight of $375 on July 19 purchase from Southmont Co.
20 Purchased merchandise from Stevens Co., $21,400, terms FOB destination, 1/10, n/30.
30 Paid Stevens Co. for invoice of July 20. 31 Paid Sabol Imports Co. for invoice of July 1.
31 Paid Southmont Co. for invoice of July 19.

Required:
Journalize the entries to record the transactions of Capers Company for October.

Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $3,760,000 in yearly sales. The expansion will increase fixed costs by $1,800,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $_____
Total fixed costs $_____
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____
Unit contribution margin $_____
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
8. Based on the data given, would you recommend accepting the proposal?
a. In favor of the proposal because of the reduction in break-even point.
b. In favor of the proposal because of the possibility of increasing income from operations.
c. In favor of the proposal because of the increase in break-even point.
d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.

10. ________________ is the extent to which employees have positive or negative feelings about various aspects of their work.

Suppose there is a policy debate over whether the United States should impose trade restrictions on imported ball bearings:________.
Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings. The lobbyist claims that the U.S. ball-bearing industry is new and cannot currently compete with foreign firms. However, if trade restrictions were temporarily imposed on ball bearings, the domestic ball-bearing industry could mature and adjust and would eventually be able to compete in the world market.
Which of the following justifications is the lobbyist using to argue for the trade restriction on ball bearings?
A. Infant-industry argument
B. Saving-domestic-jobs argument
C. Using-protection-as-a-bargaining-chip argument
D. National-security argument
E. Unfair-competition argument

After conducting research, you will need to generate ideas and organize the collected data. Simple organizational techniques will help provide structure and direction as you prepare to compose. To compose simple messages, you may need only to make a scratch list of your ideas before writing. Many messages, however, may require you to make an outline to organize your thoughts. Use the scratch list to answer the question that follows.

The Boston Hotel

a. High-end linens
b. 600-thread-count sheets
c. Coffee maker with selected teas
d. Imported beer
e. Fresh-squeezed juices
f. Affordability
g. Food and drink
h. Double-thick bath towels
i. Silk pillowcases
j. Raw silk curtains with gold embellishments
k. $100/night four-star rooms
l. Free snacks, shampoo, and conditioner
m. Free wireless Internet

Required:
What are the three major components in the preceding scratch list?

FlanCrest Enterprises is a mid-sized auto supply company that manufactures electronic components for cars. It has approximately 200 employees, with about 150 working on the production line. Its primary customer is Widespread Motors, a large international auto manufacturer. Widespread Motors primarily sells their cars based on price, aiming to make the prices as low as possible in any particular market segment. The cars may not have as many features, but still operate and cost less than those of their competitors. FlanCrest, under the direction of Widespread, has been asked to reduce the price of its electronic components for the next order due to competitive pressure in the market for Widespread's best-selling car. To cut its prices and keep its biggest customer, FlanCrest announces that they will be eliminating the popular community college tuition reimbursement program and eliminating all overtime for production workers.
Which of the below choices most accurately describes the new HR strategy at FlanCrest Enterprises?
a. Commitment, because they are demonstrating commitment to the development of their workforce
b. Control, because they are attempting to control employees within the workplace
c. Commitment, because they are demonstrating commitment to their key customers
d. Control, because they are attempting to minimize labor costs

Skidmore Music Company had the following transactions in March:
a. Sold instruments to customers for $16, 700, received $10, 700 in cash and the rest on account. The cost of the instruments was $7, 100.
b. Purchased $4, 900 of new instruments inventory; paid $1, 700 in cash and owed the rest on account.
c. Paid $720 in wages for the month.
d. Received $3, 100 from customers as deposits on orders of new instruments to be sold to the customers in April.
e. Received a $280 bill for March utilities that will be paid in April.
Required:
Complete the following statements:
1. Cash basis Income Statement
2. Accrual basis Income Statement

A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 39000 units were completed and transferred out; and there were 19000 units in the ending work in process that were 30% complete. During July, $87000 materials costs and $89400 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July were:_________


Materials Conversion Costs
$2.77 $1.55
$2.04 $1.50
$3.09 $2.27
$1.60 $1.50

Pharoah Inc. has decided to raise additional capital by issuing $173,000 facevalue of bonds with a coupon rate of 6%. In discussions with investment bankers, it was determined that to help the sale of thebonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bondswithout the warrants is considered to be $155,700, and the value of the warrants in the market is $20,760. The bonds sold in the market at issuance for $174,600.
A. What entry should be made at the time of the issuance of the bonds and warrants?
B. Prepare the entry if the warrants were non-detachable.

Bali Inc. reported $605,800 net income before tax on this year’s financial statements prepared in accordance with GAAP. The corporation’s records reveal the following information.

• Depreciation expense per books was $53,000, and MACRS depreciation was $27,400.

• Bali sold business equipment for $100,000 cash. The original cost of the equipment was $125,000. Book accumulated depreciation through date of sale was $48,000, and MACRS accumulated depreciation through date of sale was $63,000.

• Bali sold investment land to Coroda, a corporation owned by the same person that owns Bali. The amount realized on sale was $115,000, and Bali’s basis in the land was $40,000.

• Bali sold marketable securities to its sole shareholder. The amount realized on sale was $51,450, and Bali’s basis in the securities was $75,000. Compute ZEJ’s taxable income.

Seneff Corporation uses the following activity rates from its activity-based costing system to assign overhead costs to products.

Activity Cost Pools Activity Rate
Setting up batches $38.50 per batch
Processing Customer orders $86.62 per customer order
Assembling products $7.33 per assembly hour

Data concerning the two products appear below:

Product V91 Product V21
Number of batches 83 27
Number of customer orders 74 7
Number of assembly hours 702 321

Required:
How much overhead cost was assigned to product V91 using the activity-based costing system?