The unit required is 7175 units.
Find the solution ?sells phone case = $108 per unit
Fixed costs total = $227,000
variable costs = $48 per unit
pretax income = $203,500
we get here first Contribution Per Unit that is
Contribution Per Unit = sells phone case - variable costs .............1
Contribution Per Unit = $108 - $48
Contribution Per Unit = $60
so here units of product required is
unit required = pre tax income+ fixed cost /contribution per unit
203,500+227,000/60
unit required = 7175 units
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Marginal social costs (MSC) will be equal to marginal private costs (MPC) when marginal external costs (MEC) ___,_ , and marginal social benefits (MSB) will be equal to marginal private benefits (MPB) when marginal external benefits (MEB) ____ . options are: equal zero, equal 100, rqual marginal private benifits (MPB), are infinate]
Marginal social costs (MSC) will be equal to marginal private costs (MPC) when marginal external costs (MEC), marginal private benefits (MPB),are infinate , and marginal social benefits (MSB) will be equal to marginal private benefits (MPB) when marginal external benefits (MEB) are equal zero.
Marginal private costs (MPC) is that the amendment within the producer's total value caused by the assembly of an extra unit of an honest or service. it's additionally referred to as cost of production.
Marginal external costs (MEC) is that the amendment within the value to parties aside from the producer or emptor of an honest or service due to the assembly of an extra unit of the goods or service.
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In a newsvendor model with normally distributed demand, suppose the firm increases the order quantity, which of the following would be true?
A. The expected leftovers decreases.
B. The expected lost sales increases.
C. The expected profits would not be affected by the change.
D. Both expected leftovers and expected sales increases.
E. None of the above.
In this model, when the firm increases the order quantity, both the expected leftovers and expected sales increase.
What is the Newsvendor model?A key idea in inventory and supply chain management is the newsvendor model. Its basic principle. Take a moment to picture a street hawker peddling newspapers. They only get one chance each morning to buy a large quantity of newspapers from the printer. Given that unsold copies of the paper become worthless, how many should the seller stock? Overall, the newspaper vendor's conundrum is simple to resolve, but the approach employed to do so is transferable to a range of other, trickier issues.
What is the newsvendor model used for?In operations management and practical economic applications, the newsvendor model is used to calculate the ideal inventory levels. The typical presumptions for this issue include fixed prices and ambiguous requests for limited supply perishable goods.
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What is the purpose of tax incentives?
Answer:
Tax incentives are exceptions, credits, deductions, or exclusions that lower a business's tax obligation to the state or federal government in exchange for taking specific actions (e.g., reducing its environmental footprint, increasing health benefits for employees, supporting minorities, etc.).
Explanation:
pls help
Explain in your own words what integrity is. Then give an example of a situation someone your age might face where they had to show integrity.
Explain in your own words what risk management is. Then give an example of a way a businessperson could manage risk.
Answer:
moral uprightness, the quality of being honest and possessing strong moral principles
Explanation:
according to the new classical view of economics, when the aggregate demand curve shifts outward, group of answer choices prices and output automatically adjust to the long-run equilibrium. the short-run equilibrium occurs at higher price and output levels. the short-run aggregate supply curve will not adjust immediately, creating profit opportunities for suppliers. none of the above.
The average demand curve slants to the left as overall customer spending declines. Consumers can be spending less due of rising living costs or higher taxes.
What are demand curves and how do they differ?
Individual and market demand curves are the two different forms of demand curves. It shows a graphic depiction of the demand timetable. It can be made by graphing the relationship between price and quantity desired.
Demand curve: upward or downward?
As previously mentioned, a demand curve often has a decreasing slope. This idea is supported by the demand curves for the most, if not all, items. There may be a few unique instances of items with upward-sloping demand curves.
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the 1993 basel agreement explicitly incorporated the different credit risks of assets into capital adequacy measures.
a. True
b. False
option a is correct
True
Yes, that is correct. The 1993 Basel Accord, also known as the Basel I Accord, is the first of the Basel Accords. It introduced a set of minimum capital requirements for banks and other financial institutions. The accord explicitly incorporated the concept of credit risk into the calculation of required capital levels. This means that banks were required to hold capital equal to a certain percentage of the credit risk they assumed through their lending activities. The aim of the accord was to improve the stability and resilience of the global banking system by ensuring that banks had sufficient capital to cover potential losses.
The 1993 Basel Accord, also known as the Basel I Accord, is the first of the Basel Accords. It is an international agreement that establishes minimum capital requirements for banks and other financial institutions. The accord was published in 1988 and came into effect in 1992. It introduced a set of minimum capital requirements that were based on the credit risk of a bank's assets. The aim of the accord was to improve the stability and resilience of the global banking system by ensuring that banks had sufficient capital to cover potential losses. The Basel Accords are named after the city of Basel, Switzerland, where they were first formulated by the Basel Committee on Banking Supervision.
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If the reserve ratio is 10% and a bank accepts $50,000 in demand deposits from the public, then it would have to keep $---- as reserves.
If a bank had to hold $500,000 in reserves along with its $10 million in deposits, the minimum reserve ratio would be 1/20, or 5%.
The reserve ratio is the percentage of reservable liabilities that commercial banks are required to hold in reserve rather than lend out or invest. This standard is established by the nation's central bank, in this instance the Federal Reserve in the United States. It is also referred to as the cash reserve ratio. If the statutory reserve ratio is 10%, banks are obligated to hold 10% of their deposits in appropriate reserves. Deposits of $20 million necessitate the retention of $2 million in reserves ($20 million multiplied by ten). Excess reserves are those that are held in addition to the minimum required.To know more about ratio here
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Government may place legal limits on prices when it is determined that prices are unfairly____for buyers or unfairly___for sellers.
Choose matching definition
a. high; low
b. marginal
c. rise; fall
d. government
When it is decided that prices are unreasonably high for buyers or unfairly low for sellers, the government may impose legislative controls on prices.
Is the maximum price a company can legitimately demand for a good or service?The established maximum amount that a seller may charge for a good or service is known as a price selling. Price restrictions are frequently applied when basic essentials like food and power become unaffordable for the average consumer. Price limitations are typically established by law. In essence, a price cap is a form of pricing control.
Why do we use the most premium method?A maximum price is intended to stop price rises at a specific point or level. Increasing the affordability of a commodity or service for consumers, especially those with lower incomes, is one of the primary goals of a price policy.
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Tree Top Coffee Purchases Green Coffee Beans From Various Suppliers And Then Roasts The Coffee Beans In Its Roasting Facility
Tree Top Coffee Purchases Green Coffee Beans From Various Suppliers And Then Roasts The Coffee Beans In Its Roasting Facility, it depends upon the product quality and its overall cost of the product.
How many green coffee beans are in a pound?
When you consider that the going rate for green, unroasted coffee is currently $1.53 per pound on average, it can seem a bit mysterious as to why the cost jumps tenfold (or more) when it reaches our stores. Let's examine what determines the price of coffee, from the seed to the roaster to the café to the cup.
Is purchasing green coffee beans less expensive?Unroasted coffee beans are frequently less expensive than roasted coffee beans, though this isn't always the case. It should go without saying that the seller hasn't taken the necessary steps to roast the green coffee beans on your behalf. By moving to raw coffee beans, you could achieve significant long-term savings.
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the textbook describes six hr management practices that support higher levels of aircraft productivity, staffing productivity, and service quality. match each of the six key hr management practices to the correct explanation.
A lot of organisations consider their human resources departments to be crucial components. They work in a variety of industries and perform a wide range of duties on a daily basis.
What Does an HR Manager Do? To ensure that both parties have the necessary tools to perform their jobs safely and effectively, HR departments serve as a conduit between employers and employees. While some businesses have their own internal HR department, others might hire a third party. HR managers support preserving the organizational and structural integrity of the workplace in either capacity. HR has a variety of supportive duties, including those we'll cover on this page, despite occasionally being perceived as a company's disciplinary arm.HR departments and managers work to create workplaces where both employers and employees can prosper, from ensuring that employees are paid and receive benefits to supervising employee development. The primary duties of an HR department are listed below, along with what each one entails:Recruitment and HiringTraining and DevelopmentRelations between employers and employeesuphold the culture of the companyControl employee benefitsEstablish a secure work environmentManage disciplinary actionsTo Learn more About human resources departments refer To:
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Identify the interpersonal and decisional roles Mr. Hashim performed as the “Campus Head
Justify your answers in light of the case with at least one argument for each role.
A campus director is a managerial expert who is in charge of overseeing both faculty and student services as well as the day-to-day operations of a college campus.
What is the interpersonal and decisional role?Interpersonal, informational, and decisional roles make up the three categories of management work. The emphasis of interpersonal roles is on people and interpersonal interactions. Dealing with information is the main focus of informational roles. Making decisions is the main focus of decision-making roles.
The relationships that a manager must have with others are covered by interpersonal roles. Figurehead, leader, and liaison are the three positions that fall under this category. Because of their formal power and role as the organization's emblem, managers must serve as figureheads.
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gross private domestic investment 46 expostts of the us 9 dispoable income 190 personal saving 10 govrenment purchases 84
The U.S. economy generates $127 worth of gross domestic product for every $46 in domestic exports, $10 in personal savings, 190 in government purchases, and 84 in net foreign factor income.
Gross Domestic Product as measured by the Expenditure Approach is calculated as Gross Private Domestic Investment + (US Exports - US Imports) + Government Purchases, which is 46 + (9 - 12) + 84 = $127.
A country's gross domestic product (GDP) is the sum of the market values of all the finished products and services produced within its borders during a certain time period. It serves as a thorough assessment of a particular country's economic health as a wide indicator of entire domestic production.
While GDP is frequently estimated on an annual basis, it is also occasionally calculated on a quarterly basis. In the United States, for instance, the government produces an annualized GDP estimate for both the calendar year and each fiscal quarter. Every one of the data sets in this report is presented in real terms.
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Angelina will be traveling worldwide as a goodwill ambassador for a nonprofit organization. She is asked to gather information and suggestions regarding the organizations’ next humanitarian outreach program. What strategy can best reduce any listening errors caused by cultural differences?.
The strategy that can best reduce any listening errors caused by cultural differences is to practice active listening as well as respecting each other's culture.
What is active listening?Active listening is the practice of getting ready to listen, observing what verbal and nonverbal messages are being sent, and then providing appropriate feedback to demonstrate attention to the message being presented.
This type of listening demonstrates mutual understanding between the speaker and the listener.
Active listening is a method of listening to and responding to another person that fosters mutual understanding. In this case, this can be utilized by Angelina.
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If a menu item cost an operation $4.00 to produce, and the operation seeks to achieve a 25% food cost, the item should be sold for $10.00.a. Trueb. False
If a menu item cost an operation $4.00 to produce, and the operation seeks to achieve a 25% food cost, the item should be sold for $10.00. This statement is false.
What is the balance after a menu item's product cost has been deducted from the item's selling price?Therefore, this item's food cost percentage is 20%. The money left over after deducting an item's product cost from its selling price is known as the contribution margin.
A skilled specialty food producer will record your information using a formula that is based on weight measurements such as pounds, kilograms, and grams. Following the conversion to percentages, any amount or batch size can be calculated using the verified percentages.
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describe the warning signs that tell you that the food you are handling
is contaminated by bacterial toxins
Answer:
There are several warning signs that can indicate that the food you are handling is contaminated by bacterial toxins. Some of the most common warning signs include:
A change in the color or appearance of the food: Bacterial toxins can cause the food to turn colors, such as turning brown or black, or to become discolored or mottled.A change in the odor of the food: Bacterial toxins can cause the food to develop a bad odor, such as a sour or rotten smell.A change in the texture of the food: Bacterial toxins can cause the food to become slimy or mushy, or to develop lumps or bumps.A change in the taste of the food: Bacterial toxins can cause the food to taste sour, bitter, or metallic.If you notice any of these warning signs, it is important to throw the food away and avoid consuming it. Consuming food that is contaminated with bacterial toxins can cause food poisoning, which can be serious or even life-threatening.
The frequent symptoms of bacterial food poisoning include diarrhea, nausea, chills, vomiting, and stomach cramps. These symptoms can also serve as warning indications that the food you are handling may be contaminated with bacterial toxins.
A change in the meal's aroma: Bacterial toxins can make food smell terrible, like it has a sour or rotten stench.
Bacterial toxins can alter the texture of food, causing it to become sticky or mushy, or to grow lumps or bumps.
Bacterial toxins can alter how food tastes, giving it a sour, bitter, or metallic flavor.
Food poisoning, which can be severe or even fatal, can result from consuming food that has been contaminated with bacterial toxins.
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One of the benefits of sustainable construction is the maximization of waste products.
O True
O False
Answer:
True
Explanation:
Sustainable construction aims to minimize the environmental impact of building and construction projects. One way it does this is by reducing the amount of waste generated during the construction process. This can be achieved through a variety of strategies, such as recycling and repurposing waste materials, using efficient construction methods that minimize waste, and using sustainable building materials that are durable and have a long lifespan. By maximizing the use of waste products, sustainable construction helps to reduce the environmental impact of building and construction projects.
A system maintenance activity generated in response to changes in the business environment is referred to as corrective maintenance. a. true b. false.
A system maintenance activity generated in response to changes in the business environment is referred to as corrective maintenance false.
The making plans stage (additionally referred to as the feasibility stage) is precisely what it sounds like: the section wherein builders will plan for the approaching project. It facilitates to outline the hassle and scope of any present systems, in addition to decide the goals for his or her new systems.
In the Implementation section, coding is performed and the software program evolved is the enter for the following section i.e. checking out. In the checking out section, the evolved code is examined very well to discover the defects withinside the software program.
SaaS is a distribution version that can provide software program packages over the net; those packages are regularly referred to as net offerings. Users can get right of entry to SaaS packages and offerings from any vicinity the use of a laptop or cell tool that has net get right of entry to.
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Stella, a sales executive at a restaurant, is writing a persuasive message to attract new customers. Which sentence would make a good hook?
A.
There's a 10 percent discount on the buffet items.
B.
Please try the chef's special salad.
C.
Get ready for a magical dining experience!
D.
You'll be talking about our deals for weeks.
In a case whereby Stella, a sales executive at a restaurant, is writing a persuasive message to attract new customers, the sentence that would make a good hook is A.There's a 10 percent discount on the buffet items.
What is a hook statement?A hook can be descrtibed as the opening statement and in some cases it is been presented as the first sentence in an essay that attempts to grab the reader's attention to make them to flow or to read on.
It should be noted that It can be done by using a few different types of hooks, and these can be witj the use of question, quote, statistic, or anecdote.
Therefore, option A is correct.
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A market-value index:
A) is calculated such that the proportion of the index a stock represents is determined by its proportion of the total market capitalization of all stocks in the index.
B) is calculated as the average price of all the stocks in the index that trade that day, one example is the NASDAQ.
C) is calculated like the Dow Jones Average, from the stock prices in the average.
D) is calculated based on the profits generated by the companies in the index.
A market-value index is created so that each stock's representation in the index is based on how much of the index's overall market capitalization it makes up. The correct option is A.
A stock market index whose constituents are weighted in accordance with the entire market value of their outstanding shares is known as a capitalization-weighted index, sometimes known as a market-value-weighted index. A stock index's value fluctuates daily as a result of daily price fluctuations in individual stocks.
Each stock's market value is derived by dividing its price by the number of shares that make up the index, and each stock's weight in the index is established according to how closely its market value relates to the index's overall market value.
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which of the following features is common to both perfectly competitive markets and monopolistically competitive markets?
Group of answer choices Firms produce homogeneous goods. Long-run profits are zero. Prices are above marginal costs in the long run. Prices are equal to marginal costs in the long run.
The features that is common to both perfectly competitive markets and monopolistically competitive markets is long-run profits are zero. The Option B is correct.
What is perfectly competitive market?The perfect competition in market occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barriers.
What is monopolistically competitive market?This is a market where many companies offer competing products or services that are similar, but not perfect substitutes. The barriers to entry in the industry are low, and the decisions of any one firm do not directly affect its competitors.
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Refer to the above graph. Ongoing inflation would occur if the Fed:group of answer choices O increased the money supply, causing ad to shift faster than technological progress shifts as. O increased the money supply, causing ad to shift as fast as technological progress shifts as. O increased the money supply, causing ad to shift slower than technological progress shifts as. O did not increase the money supply while technological progress is shifting as.
Ongoing inflation would occur if the Fed increased the money supply, causing ad to shift faster than technological progress shifts as. Supply chain problems, consistent demand, and energy uncertainties are some of the causes of high inflation.
In order to fight inflation, the Federal Reserve boosted interest rates. To avoid the detrimental effects of inflation, investors must be resourceful. According to Stanford economist John Taylor, inflation increases when the Federal Reserve sets an interest rate that is too low. In 2022, inflation is the one word that captures everyone's attention. Even though recent indications suggest the worst may be Supply chain , the Federal Reserve and average Americans are nonetheless very concerned about inflation.
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In November 2016, Australia experienced a decrease in business spending on new plant, buildings, equipment, and machinery. What effect would this have had on Australian aggregate demand, all else equal?
Australian consumption would decrease, and Australian aggregate demand would decrease.
Australian net exports would increase, and Australian aggregate demand would increase.
Australian net exports would decrease, and Australian aggregate demand would decrease.
Australian investment would decrease, and Australian aggregate demand would decrease.
Similar things being equal, this would have a negative impact on Australian investment and a positive impact on Australian aggregate demand.
An asset or object purchased with the intention of generating income or appreciation is referred to as an investment. The term "appreciation" describes a rise in an asset's worth over time. When a person buys a product as an investment, they don't intend to utilize it right away; instead, they plan to use it to make money later on.
An investment is usually the use of a resource today—time, effort, money, or an asset—in the anticipation of receiving a larger return than what was first invested. A financial asset, for instance, might be bought by an investor now with the hope that it would provide income later on or be sold for more money.
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carla vista co. has a capital structure, based on current market values, that consists of 36 percent debt, 20 percent preferred stock, and 44 percent common stock. if the returns required by investors are 10 percent, 11 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is carla vista's after-tax wacc? assume that the firm's marginal tax rate is 40 percent. (round final answer to 2 decimal places, e.g. 15.25%.)
From around 13 to 15 million households, or 14%, spent 50% or more of their income on housing between 2001 and 2004.
Considering capital structure, which of the following propositions is true?The right response to the query is: A debt load that is too low may put you at greater danger of missing payments.
In terms of capital structure MCQ, which of the following is false?Regarding capital structure, which of the following is false? An ideal capital structure may be attained, according to the conventional thinking. On how the capital structure and firm value relate to one another, there are differing views. Short-term obligations do not appear in the capital structure.
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Once a vendor is selected for a product, the vendor's identity is recorded in the
A) purchase requisition transaction file.
B) purchase requisition master file.
C) inventory transaction file.
D) inventory master file.
Answer: D) inventory master file.
Once a vendor is selected for a product, the vendor's identity is recorded in the inventory master file.
An item master records all vital information about a particular inventory item. This includes date of manufacture, brief description of inventory item, dimensions (height, weight, etc.), cost, and current inventory information.
An inventory file is typically a document that contains an electronic list of all items in a company's inventory, including items that are in stock or expected to be in stock soon. Items are listed and identified by category and classified into specific inventory groups based on the item's attributes.
A master file is the main file that contains a relatively permanent record of a particular item or entry. For example, a customer file contains customer details such as customer ID, name, and contact address.
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In each of the following questions, you are asked to compare two options with parameters as given. The risk-free interest rate for all cases should be assumed to be 6%. Assume the stocks on which these options are written pay no dividends. a. Put T X Sigma Price of Option
A .5 50 .20 10
B .5 50 .25 10
Assume the stocks on which these options are written pay no dividends are:
1. Higher sigma should mean a higher price but then also the price is the same so it means a lower stock price will be for A
2. Lower stock price should mean a higher price hence B should have a lower price
3. The lower stock price should mean a higher price hence B should have a higher price but the price difference should be at least the difference in stock price i..e, 5 but the difference is only 2 so A should have a lower time to expiration
4. Higher volatility means higher price hence B should have higher volatility
Dividends are everyday income-sharing bills made among a corporation and its investors. An organization's board of directors determines the price in line with share, when, and how often dividend payments are made. Dividend stocks can provide a movement of profits, which may be especially precious in the course of inflationary periods.
A dividend refers to praise, coins, or in any other case, that an organization gives to its shareholders. Dividends may be issued in various forms, which include cash fees, shares, or another form. An organization's dividend is decided via its board of administrators and it requires the shareholders' approval.
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For the U.S. economy, the most important reason for the downward slope of the aggregate-demand curve is the interest-rate effect. the interest rate adjusts to balance the supply of and demand for money. Is the interest rate corrected for the effects of inflation; When there is no inflation, the two rates are the same.
Interest rates are corrected to control inflation in country as cost of borrowing is determined by interest rate that ultimately affects inflation.
What is aggregate-demand curve?The demand and supply of all products and services produced by an economy are the main topics of discussion in macroeconomics.
As a result, the term "aggregate demand" is also used to refer to the total demand for all individual commodities and services.
Aggregate supply is the term used to describe the total supply of all separate commodities and services. The aggregate demand and supply for an economy can be depicted by a timetable, a curve, or an algebraic equation, just as the demand and supply for individual goods and services. The total quantity of all commodities (and services) that the economy demands at various price levels is represented by the aggregate demand curve. The money-demand curve moves to the right as the price level from increases.
The demand for money has increased, which leads the interest rate to increase from to. As the cost of borrowing is determined by the interest rate, an increase there will result in less demand for products and services. A downward-sloping aggregate-demand curve is used to depict this negative relationship between price level and quantity required.
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A fixed budget performance report not only compares results, but also indicates if the variances are: A. adequate or inadequate
B. favorable or unfavorable
C. positive or negative
D. fair or unfair
A fixed budget performance report not only compares results, but also indicates if the variances are favorable or unfavorable
Fixed budget Performance ReportIt is an analytical report that compares the actual performance numbers over a period with the forecast numbers set in the fixed budget. This report resembles an income statement with one column for the fixed budget numbers and another column for the actual number achieved during the period. It is best suited to companies where there is little chance of fluctuations in prevailing conditions. It also works as a criterion to control costs.
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Waterway Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $64000 that will produce an estimated 90000 units over its useful life. Estimated salvage value at the end of its useful life is $3700. What is the depreciation cost per unit? - $7.11 - $0.71 - $6.70 - $0.67
After using the units-of-activity method in computing depreciation depreciation cost per unit in the given question is $0.67
Depreciation expense for a given year is calculated by dividing the original cost of the equipment less its salvage value, by the expected number of units the asset should produce given its useful life. Then, multiply that quotient by the number of units (U) used during the current year.
A common depreciation technique that enables firms to divide the cost of a fixed asset according to its utilisation is units of output. In manufacturing, it is common practise to compute the units of production rate by dividing the equipment's cost by its anticipated lifetime production.
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Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $317,000. The system can be sold today for $191,000 . It is being depreciated using MACRS and a 5-year recovery period (see the table LOADING...). A new computer system will cost $498,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income and capital gains. a. Calculate the book value of the existing computer system. b. Calculate the after-tax proceeds of its sale for $191,000 . c. Calculate the initial investment associated with the replacement project.
a) The calculation of the book value of the existing computer system for Vastine Medical, Inc. is $152,160.
b) The after-tax proceeds of the sale of the existing computer system for Vastine Medical, Inc. is $23,304.
c) The initial investment associated with the replacement project is $307,000.
What is the book value of an asset?The book value of an asset refers to the difference between the original cost and the accumulated depreciation.
The accumulated depreciation is the yearly depreciation added together for some periods.
When an asset is sold, the capital gains are computed on the difference between the sales proceeds and the book value.
Cost of computer system = $317,000
Accumulated depreciation after 2 years = $164,840 ($317,000 x 52%)
Book value after 2 years = $152,160 ($317,000 - $164,840)
Sales proceed = $191,000
Capital gains = $38,840 ($191,000 - $152,160)
Capital gains tax = $15,536 ($38,840 x 40%)
After-tax proceeds = $23,304 ($38,840 - $15,536)
The initial investment for the replacement project = $307,000 ($498,000 - $191,000)
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Question Completion:MACRS 5-year Declining Method:
Year Depreciation Rate
1 20%
2 32%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
Are These Statements True For Economics?
[1] The Phillips curve slopes upward, since a more positive output gap is associated with a higher level of unexpected inflation. The labor market Phillips Curve slopes downward, since a more positive output gap is associated with a lower level of unemployment. Both curves summarize the idea that excess demand leads to higher inflation.
[2] A rapid influx of foreign investment causes the output gap to become more positive. This gives rise to demand‑pull inflation. The president unexpectedly announces a tariff on aluminum and steel. This causes cost‑push inflation.
The statement about Philips's Curve is true. Hence, option A is appropriate.
What is the Philips's Curve?The Phillips curve is indeed an economic theory that bears the name of William Phillips, who postulated a link between declining unemployment and higher rates of wage growth in an economy.
The Phillips curve shows a consistent negative relationship between inflation and unemployment. The inflation that follows economic expansion, as per William Phillips' thesis, should lead to more jobs as well as lower unemployment.
The economist A.W. Phillips studied the U.K. The Phillips curve is named after the period between 1861 and 1957 and includes both unemployment and earnings. The pace of wage increase and the unemployment rate, according to Phillips, is inversely connected (i.e., wage inflation).
Hence, option A is correct.
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