Answer: new venture groups
Explanation:
Business incubators support fledgling start-ups and are often used to pursue specific entrepreneurial ventures that are developed by the new venture groups.
It should be noted that incubators provide functions such as businesses services, funding, mentoring, physical space, and networking.
A venture capital firm are investors who gain income by engaging in risky projects after taking funds from wealthy people.
A stock has had the following year-end prices and dividends:
Year Price Dividend
1 $ 43.31 -
2 48.29 $ .51
3 57.21 .54
4 45.29 .60
5 52.21 .65
6 61.29 .73
What are the arithmetic and geometric returns for the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16))
Answer:
Year Price Dividend Return
1 43.31 - -
2 48.29 0.51 12.68%
3 57.21 0.54 19.59%
4 45.29 0.60 -19.89%
5 52.21 0.65 16.71%
6 61.29 0.73 18.79%
arithmetic returns basically refer to the mean (or average) of the returns = (12.68% + 19.59% - 19.89% + 16.71% + 18.79%) / 5 = 47.88% / 5 = 9.58%
geometric returns involves multiplying the returns and then squaring them = ⁵√(1.1268 x 1.1959 x 0.8011 x 1.1671 x 1.1879) - 1 = 1.0840 - 1 = 0.084 = 8.40%
The manager of a firm believes that she would lose sales if she raised her prices by $2.00, but the revenue lost would be more than offset by higher revenues from the higher price. This indicates that the manager perceives demand to be:_______.
a. inelastic.
b. elastic.
c. unit elastic.
d. insufficient information.
Answer:
This indicates that the manager perceives demand to be:_______.
c. unit elastic.
Explanation:
Unit elastic demand describes a demand curve which is perfectly responsive to changes in price. This implies that the quantity supplied or demanded changes according to the same percentage as the change in price. For example, if the manager raises the price of her famous goods by $2.00, the unit elastic demand for that $2.00 increase would result in a decrease in the quantity demanded by one unit.
Explain the four phases of a product's lifestyle and three common reasons that new products fail. g
Answer:
The answer is below
Explanation:
The four phases of a product's lifestyle are:
1. Introduction: this is the early stage of a product when a particular product is introduced into the market. At this stage, the market is relatively unknown, the sales are generally low, and no established customer base.
2. Growth: this is a stage characterized by by-products' rise in sales and identification, and the product is beginning to have a customer base that is building up gradually at a relative pace.
3. Maturity: this is a phase in which a product has reached or closer to the peak in terms of sales and identity. Here the many consumers have been converted to customers fully.
4. Decline: This is a stage characterized by its saturation level in terms of sales and identity. At this point, the sales tend to reduce and there is little or no new consumer capture.
The three common reasons that new products fail are:
1. Product has no originality: over time, it has been observed that products that no special purpose or have distinct benefits have a higher tendency to fail.
2. Timing of production: for a new product that is released when the demand for such products is generally lower, has a higher tendency to fail.
3. Product weakness: if a new product has an obvious weakness, it quickly fails. This weakness can be as a result of low-quality materials in production.
Which of the following questions does the organization's mission statement answer?
A. What are our long-term strategies?
B. What are our long-term goals and objectives?
C. How do we operate in the existing environment?
D. What do we want to become?
E. All of these are answered by the mission statement
Answer:
D. What do we want to become?
Explanation:
A mission statement refers to a statement in which the existence reason could come why it is established, its entire objectives, its products and services that are provided to the customers, and at last the location where they deal
So as per the given options the option D is correct as it represent the mission statements and the hence the same is to be considered
Therefore all the other options are wrong or incorrect
5. Describe a product you know of that has elastic demand. Why is the demand for this
product elastic? Explain. (1-3 sentences. 3.0 points)
Answer:
Dimond has elastic demand. Demand for this product is elastic because it is a luxury item. Since this item is not a necessity, as the price rises, the quantity demanded for the item falls drastically since it is not needed for survival.
Explanation:
Automobiles has elastic demand.
What is demand?Demand can be defined as them the Desire of a person to purchase a good or service and the customer of the consumer is ready to pay the price which is being asked for.
Demand is said to be elastic when there is a significant shift in the demand curve as a result of dynamic pricing. Whenever a good's supply curve is adaptable to price fluctuations, this is known as elastic demand.
Elastic demand for automobiles is an example. As automobiles are doing purchase frequent or after a long period of time as it is considered an investment.
The elasticity is measured when there is a change in the demand with respect to the change in price. In the automobile sector as it is certainly a luxury item there for the demand usually fluctuates and so is the price.
Learn more about demand, here:
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Assume that a tire company sells four tires to an automobile company for $400, another company sells a compact disc player for $500, and the automobile company puts all of these items in or on a car that it sells for $20,000. In this case, the amount from these transactions that should be counted in GDP is:
Answer:
$20,000
Explanation:
Gross domestic product is the sum of final goods and services produced in an economy within a given period which is usually a year.
GDP calculated using the expenditure approach = Consumption spending + Investment spending by businesses + Government Spending + Net Export
Only final goods are included in the calculation of GDP.
The tires and compact are intermediate goods and would not be included in GDP. If they are included it would be regarded as double counting
You write one AT&T February 50 put for a premium of $5. Ignoring transactions costs, what is the breakeven price of this position
Answer:
$45
Explanation:
Calculation for breakeven price of this position
Using this formula
Breakeven price = + AT&T February put - Premium
Let plug in the formula
Breakeven price= +$50-$5
Breakeven price=$45
Therefore breakeven price of this position will be $45
Taylor's Theory of Scientific Management proposes that time and motion studies can determine the most time-efficient way to do a job.
A. True
B. False
Answer:
True
Explanation:
Taylor's time and motion studies is premised on the fact that certain people work efficiently when compared to others. This study is as a result of experiments carried out by him inorder to know the optimal performance of workers. He came to a conclusion that an important part of workplace efficiency is for managers to select and hire the right people for a job - people who work efficiently more than others, i.e people who are more productive when compared to others.
A company issues $15200000, 9.8%, 20-year bonds to yield 10% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14939182. Using effective-interest amortization, how much interest expense will be recognized in 2017
Answer:
$1,494,026.16
Explanation:
journal entry to record issuance:
January 1, 2017, bonds issued at discount
Dr Cash 14,939,182
Dr Discount on bonds payable 260,818
Cr Bonds payable 15,200,000
the first coupon payment:
amortization of bond discount = (14,939,182 x 0.1/2) - 744,800 = 2,159.10
Dr Interest expense 746,959.10
Cr Cash 744,800
Cr Discount on bonds payable 2,159.10
the second coupon payment:
amortization of bond discount = (14,941,341.10 x 0.1/2) - 744,800 = 2,267,06
Dr Interest expense 747,067.06
Cr Cash 744,800
Cr Discount on bonds payable 2,267,06
total interest expense for 2017 = $746,959.10 + $747,067.06 = $1,494,026.16
Companies racing against rivals for global market leadership need strategic alliances and collaborative partnerships with companies in foreign countries in order to:_______
A. Combat the bargaining power of foreign suppliers and help defend against the competitive threat of substitute products produced by foreign rivals.
B. Help raise needed financial capital from foreign banks and use the brand names of their partners to make sales to foreign buyers.
C. Get into critical country markets quickly and accelerate the process of building a potent global presence, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.
D. Help pursue price wars against foreign competitors.
E. Exercise better control over efforts to revamp the global industry value chain.
Answer:
C. Get into critical country markets quickly and accelerate the process of building a potent global presence, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations
Explanation:
In a global market it is important for businesses to leverage international advantages such as lower production cost in a foreign country, more lucrative markets in certain locations, and access to cheap materials for production.
So when a company wants to gain global dominance it is important they form alliances with companies in foreign countries. This will help them access more lucrative markets, gain knowledge about particular markets, and gain competencies that are unique to a geographical area.
What would be the marginal and average tax rates for a corporation with an income level of $100,000?
Answer:
Marginal tax rate = 34%
Average tax rate = 22.25%
Explanation:
The marginal tax rate is the rate of tax income earners incur on each additional dollar of income. As the marginal tax rate increases, the taxpayer ends up with less money per dollar earned than he or she had retained on previously earned dollars.
DATA
Income level = 100,000
Corporation Tax rates
0-50,000 = 15%
50,000 - 75,000 = 25%
75,000 - 100,000 = 34%
Marginal tax rate = 34%
Solution
Income tax owed = (15% x 50000)+(25% x 25000)+(34%*25000)
Income tax owed = 22,250
Average tax rate = 22,250/100000
Average tax rate = 22.25%
Budgeted overhead for Waterway Industries at normal capacity of 32000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $321600 of overhead was incurred in working 33500 hours when 34000 standard hours were allowed. The overhead controllable variance is
Answer:
$10,400 Favorable
Explanation:
The computation of overhead controllable variance is shown below:-
Overhead controllable variance is
= Standard overhead - Actual
= ((34,000 × $6) + (32,000 × $4)) - $321,600
= ($204,000 + $128,000) - $321,600
= $332,000 - $321,600
= $10,400 Favorable
Therefore for computing the overhead controllable variance we simply applied the above formula.
Data on fifth-grade test scores (reading and mathematics) for 420 school districts in California yield \bar{y} = 646.2 and standard deviation s_{y} = 19.5
a. Construct a 95% confidence interval for the mean test score in the population.
b. When the districts were divided into districts with small classes (< 20 students per teacher) and large classes (? 20 students per teacher), the following results were found:
Class Size Average (\bar{Y}) Standard Deviation (s_{y}) n
Small 657.4 19.4 238
Large 650.0 17.9 182
Is there statistically significant evidence that the districts with smaller classes have higher average test scores? Explain (set up your hypothesis, and clearly state your decision rule).
Answer:
a. At 95% confidence interval, the mean test score in the population =
[ 648.06 , 644.34 ]
b.
Null hypothesis;
[tex]H_o : \mu_1 - \mu_2 = 0[/tex]
Alternative hypothesis
[tex]H_1 : \mu_1 - \mu_2 > 0[/tex]
t [tex]\simeq[/tex] 4.048
P - value = 0.000003
Decision Rule: To reject the null hypothesis if P - value is less than the level of significance
Conclusion: We reject the null hypothesis and conclude that there is sufficient statistical evidence that smaller class sizes do give rise to higher test averages.
Explanation:
Given that:
sample size n = 420
mean [tex]\overline{Y} = 646.2[/tex]
standard deviation [tex]s_{y}[/tex] = 19.5
a. Construct a 95% confidence interval for the mean test score in the population.
The 95% confidence interval for the mean test score can be expressed as:
[tex][ \overline Y \pm Z \times SE( \overline Y)][/tex]
Z value at 95% C.I = 1.96
The level of significance = 1 - 0.95
The level of significance = 0.05
[tex]SE(\overline Y ) = \dfrac{s_y}{\sqrt{n}}[/tex]
∴
⇒ [tex][ 646.2 \pm 1.96 \times \dfrac{19.5}{\sqrt{420}}][/tex]
= [tex][ 646.2 \pm 1.96 \times \dfrac{19.5}{20.4939}][/tex]
= [tex][ 646.2 \pm 1.96 \times 0.9515][/tex]
= [tex][ 646.2 \pm 1.86494][/tex]
= [ 646.2 + 1.86494 , 646.2 - 1.86494 ]
= [ 648.06494 , 644.33506 ]
[tex]\simeq[/tex] [ 648.06 , 644.34 ]
Thus at 95% confidence interval, the mean test score in the population =
[ 648.06 , 644.34 ]
b. When the districts were divided into districts with small classes (< 20 students per teacher) and large classes (? 20 students per teacher), the following results were found:
Class Size Average (\bar{Y}) Standard Deviation (s_{y}) n
Small [tex]\overline{Y_1}[/tex]= 657.4 19.4 238
Large [tex]\overline{Y_2}[/tex]= 650.0 17.9 182
The null hypothesis and the alternative hypothesis for this given data can be computed as follows:
Null hypothesis;
[tex]H_o : \mu_1 - \mu_2 = 0[/tex]
Alternative hypothesis
[tex]H_1 : \mu_1 - \mu_2 > 0[/tex]
The t- test statistics score can be expressed by using the formula:
[tex]t = \dfrac{\overline Y_1 -\overline Y_2 }{SE( \overline Y_1 - \overline Y_2)}[/tex]
where;
[tex]SE ( \overline Y_1 - \overline Y_2) = {\sqrt{\dfrac{s^2_y_1}{n_1} + \dfrac{s^2_y_2}{n_2}}}[/tex]
∴
[tex]t = \dfrac{\overline Y_1 -\overline Y_2 }{\sqrt{\dfrac{s^2_y_1}{n_1} + \dfrac{s^2_y_2}{n_2}}}[/tex]
[tex]t = \dfrac{657.4-650.0 }{\sqrt{\dfrac{19.4^2}{238} + \dfrac{17.9^2}{182}}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{\dfrac{376.36}{238} + \dfrac{320.41}{182}}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{1.581344538+ 1.760494505}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{3.341839043}}[/tex]
[tex]t = \dfrac{7.4 }{1.828069759}[/tex]
t = 4.04799
t [tex]\simeq[/tex] 4.048
To determine the P - Value; we have:
P - value = 1 - [tex]\mathtt{\phi}[/tex] ( t)
P - value = 1 - [tex]\mathtt{\phi}[/tex]( 4.048)
P - value = 1 - 0.99997
P - value = 0.000003
Decision Rule: To reject the null hypothesis if P - value is less than the level of significance
Conclusion: We reject the null hypothesis and conclude that there is sufficient statistical evidence that smaller class sizes do give rise to higher test averages.
Starbucks reports net income for 2015 of $2,634.4 million. Its stockholders' equity is $5,605 million and $6,151 million for 2014 and 2015, respectively. Required:a. Compute its return on equity for 2015. b. Starbucks repurchased over $1.4 billion of its common stock in 2015. Did this repurchase increase or decrease Starbucks’ ROE? 1. ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity). 2. ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity). 3. ROE usually increases since the repurchase of shares increases the denominator (avg. stockholders' equity). 4. ROE usually decreases since the repurchase of shares increases the denominator (avg. stockholders' equity). c. If Starbucks had not repurchased common stock in 2015, what would ROE have been?
Answer:
a) return on equity (ROE) = net income / average shareholders' equity
average shareholders' equity = ($5,605 + $6,151) / 2 = $5,878
ROE for 2015 = $2,634.4 / $5,878 = 44.82%
b) 2. ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity).
This is simple math, e.g. 1/2 > 1/3, if stockholders' equity decreases, while net income remains the same, ROE will increase.
you cannot meet the assignment deadline and complete other small tasks you have. what would you most likely do
Answer:
focus on and finish the assignment which has the deadline
Explanation:
In a scenario such as this one, you should focus on and finish the assignment which has the deadline. This is because unlike the other tasks, this assignment needs to be finished before a set date, otherwise it will become invalid and the client/boss will not accept it and that can bring serious consequences. The other small tasks can be completed later once the assignment has been delivered.
You are a shareholder in a C corporation. The corporation earns $1.75 per share before taxes. Once it has paid its taxes it will distribute the rest of the earnings to you as a dividend. Assume the corporation tax rate is 35% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid
Answer:
$0.80.
Explanation:
We can find the remaining amount earned by just dedcuting he income tax. The corporation tax will be deducted from the earnings before tax at the rate of 35% and the personal tax will be deducted from the dividends distributed at the rate of 30%.
$
Earnings before taxes 1.75
Dividend distributed $1.1375
less:
Corporate tax ($1.75*35%) (0.6125)
Personal tax (1.1375 X 30%) (0.34125)
Amount remaining $0.80.
Culture is an integral part of any organization. Please define culture, how is it created, and give three examples of companies with strong culture and explain how it is a competitive advantage for them. g
Answer:
Explanation:
An organization's culture shows the proper way that employees are expected to behave in an organization. Organizational culture is made up of values and shared beliefs which have been put in place by the leaders and then passed across to employees.
Organization cultures are created by several factors, such as founders preferences and values, goals, industry demands, and assumptions and maintained through leadership, employee onboarding, and reward system of the organization.
Examples of companies with strong organizational culture are:
• Netflix: is a leading technology companies that is known worldwide. Netflix sets the highest standards for their employees. Standards are maintained by rewarding high performers.
• Google: Google is an icon that most companies look up to. They give financial bonuses, free meals, employee social gatherings, gyms, parks, a dog-friendly environment etc. Google recruits the best hand and employees are motivated to work harder.
• Twitter: Twitter has a team-orientated environment and the employees enjoy rooftop meetings, health and fitness classes, friendly environment and continued education. Employees of Twitter believe that the work done by them matters and thus tends to aid productivity.
The company culture is a competitive advantage to these companies as it helps to improve employee retention, gives them a brand identity and also inspire the workers to work harder and achieve more.
Andrews Corp. ended the year carrying $89,674,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.? Select: 1Save Answer $137,558,000 $25,156,000 $174,698,660 $89,674,000
Answer:
$89,674,000
Explanation:
As it is mentioned that the inventory cost is already incurred in the last year so in this case the cost price would be zero and the same price should be equivalent to the closing value of the inventory i.e. carrying value of $89,674,000 and hence the same is to be considered
Therefore the last option is correct
Which of the following are included in current assets?a. Prepaid rent b. Taxes payable c. Automobiles d. Common stock e. None of the above
Answer:
The answer is A.
Explanation:
Current asset is an asset that has a life span of less than 12 months(a year). If its life span is more than a year or 12 months, then it is non-current asset.
Prepaid rent is a current asset. A rent usually lasts for a year. It is an advanced payment. The money has been paid but the service has not been fully enjoyed. So we treat it as a current asset
Option B is a current liability.
Option C is a non-current asset
Option D is an equity
If the branch office of a real estate firm maintains a separate clients' trust account, it must also
Answer: Maintain a separate bookkeeping system
Explanation:
A real estate firm is simply a firm that serves as facilitator for transactions involving vreal estate. They bring the buyers and sellers together and then paid a commission.
It must be noted that when the branch office of a real estate firm maintains a separate clients' trust account, it must also maintain a separate bookkeeping system
Company uses the weighted-average method in its process costing system. The Packaging Department started the month with units in process, started units, and had units in process at the end of the period. All materials are added at the beginning of the process, and conversion costs are incurred uniformly. The units in process at the end of the month are % complete with respect to conversion costs. The department incurred the following costs: Beginning WIP Added this month TotalTransferred in $600 $13,400 $14,000Direct materials 700 3,400 4,100Conversion costs 350 6,490 6,840Total $1,650 $23,290 $24,940For conversion costs, the equivalent units of production are:_____a. 1,710 unitsb. 1,610 unitsc. 1,460 unitsd. 1,620 units
Answer:
the numbers of the first part are missing here, so I looked for a similar one:
"The Packaging Department started the month with 300 units in process that were 70% complete, receiving 2,000 units from the Cutting Department. The Packaging department had 200 units in process at the end of the period that are 40% complete.
All materials are added at the beginning of the process and conversion is added uniformly.
From the Packaging Department, units are transferred to Finished Goods."
Since we are not asked to calculate costs, we are told to calculate equivalent units for conversion costs, the formula would be:
total units finished and transferred out = 300 + 2,000 - 200 = 2,100
equivalent units of ending WIP = 200 x 40% = 80
total equivalent units = 2,100 + 80 = 2,180 equivalent units
If the stock price of a target company jumps up when the acquisition of the company is announced, the market _____.
Answer:
The market cannot be strong form efficient.
Explanation:
A market seems to be a real or conceptual location wherever production and consumption forces work, and also where market participants compete for capital or transact to exchange products or arrangements or equipment.The market now also needs to illustrate all of the documentation or details available in the individual's domain in case of an increase form effective and cheaper. That won't be giving you any chance of an increase in price.Besides their own team accounts, sales managers at Universal Containers need to have READ access to all accounts of the same segment in other countries. Role hierarchy was implemented accordingly (based on countries), but a sales manager in the US is complaining that he cannot view account records of the same segment in Canada. What should be done to grant access in a proper way?
Available Options Are:
A. Create an owner-based sharing rule to grant access to account records that have the same segment to all sales manager roles.
B. Change the role hierarchy and put all of the sales managers in the US and Canada in the same role.
C. Create criteria-based sharing rules to grant access to account records that have the same segment to all sales manager roles.
D. Create a public group and include all accounts of the same segment and grant access through a permission set.
Answer:
Option A. Create an owner-based sharing rule to grant access to account records that have the same segment to all sales manager roles
Explanation:
This owner based sharing will allow the sales manager to access information but he will not be able to alter information which gives a right to access information only. This sharing of information will resolve the sales manager concern and will also him and other sales manager to use this information to make informed decisions. Hence Option A is correct.
Putting in the same role would manipulate the data because the data entered by each sales manager will not be distinguished easily and thus the system will not produce meaningful results. Hence Option B is also incorrect.
Option C is also incorrect because allowing access on meeting certain criteria would result in restriction of data. Thus it is not the solution.
Option D allowing access to all the data would not be necessary as some of the data might require protection and also that it might be meaningless to have private accounts. Thus the option D is incorrect.
The private sector organization that is currently responsible for setting accounting standards in the United States is the
Answer:
Financial Accounting Standards Board.
Explanation:
The private sector organization that is currently responsible for setting accounting standards in the United States is the Financial Accounting Standards Board (FASB).
FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).
The aims and objectives of FASB, is to establish and improve Generally Accepted Accounting Principles (GAAP) in the United States of America.
Each business day, on average, a company writes checks totaling $41,500 to pay its suppliers. The usual clearing time for the checks is six days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $52,500. The cash from the payments is available to the firm after four days.
Required:
a. Calculate the company's disbursement float, collection float, and net float (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
b. Calculate the company's disbursement float, collection float, and net float if the collected funds were available in two days instead of four (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g.. 32.).
Answer:
A.Collection Float ($208,000)
Disbursements Float $249,000
Net Float $41,000
B.Collection Float ($104,000)
Disbursement Float $249,000
Net Float $145,000
Explanation:
A. Calculation the company's disbursement float, collection float, and net float
Per Day Clearing Days Float
Collection Float ($52,000) ×4days = ($208,000)
Disbursements Float $41,500 × 6days = $249,000
Net Float $41,000
($249,000-$208,000)
B. Calculation for the company's disbursement float, collection float, and net float if the collected funds were available in two days instead of four
Per Day Clearing Days Float
Collection Float ($52,000) ×2 days =($104,000)
Disbursement Float $41,500 ×6 days= $249,000
Net Float $145,000
($249,000-$104,000)
Hence,
A.Collection Float ($208,000)
Disbursements Float $249,000
Net Float $41,000
B.Collection Float ($104,000)
Disbursement Float $249,000
Net Float $145,000
In a periodic inventory system, the entry at the time of a sale to record the cost of inventory sold includes a:
Answer:
Debit : Cost of Sales and Credit : Inventory
Explanation:
The periodic method recalculates the value of goods held after each and every transaction made involving inventories.
Inventory records are updated electronically to record the sale by reducing the inventory balance (a credit entry) and increasing the cost of sale (debit entry)
What is the differential revenue from the acceptance of the offer? a. $300,000 b. $420,000 c. $120,000 d. $240,000
Answer:
a. $300,000
Explanation:
Calculation
Calculation for the differential revenue from the acceptance of the offer
Using this formula
Differential revenue= Units of offer received× Amount per unit
Let plug in the formula
Differential revenue=20,000 units× $15 per unit
Differential revenue=$300,000
Therefore the differential revenue from the acceptance of the offer will be $300,00
1. John Jamison wants to accumulate $75,563 for a down payment on a small business. He will invest $35,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal
Answer:
10 years.
Explanation:
The time period, N for John to reach his goal can be determined using a financial calculator as follows :
FV = $75,563
PV = - $35,000
PMT = $ 0
R = 8.00 %
P/YR = 1
N = ?
Using a financial calculator, the time period, N for John to reach his goal is 10 years.
Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 14,000. The annual holding cost per unit is $3.75, and the cost to place an order is $65.
a. What is the economic order quantity? The EOQ is 697 . Enter your response rounded to the nearest whole number)
b. Suppose demand for TricoFlexers doubles, to 28,000.
Answer:
a)
economic order quantity (EOQ) = √(2SD/H)
S = order cost = 65D = annual demand = 14,000H = holding cost = 3.75EOQ = √[2 x 65 x 14,000) / 3.75] = 696.66 ≈ 697 units
b)
if demand increases to 28,000, then:
EOQ = √[2 x 65 x 28,000) / 3.75] = 985.22 ≈ 985 units
The economic order quantity when annual demand is 14,000units is 697 units and when the annual demand doubles, The EOQ becomes 985 units.
Economic order quantity shows the optimum batch quantity a company should purchase in order to minimize costs.
It is calculated as
Economic order quantity (EOQ) = √(2x D x S / H)
where
D = annual demand in units= 14,000units
S = cost per order = $65
H = holding cost = $3.75
Solving:
EOQ = √{2 x 65 x 14,000) / 3.75] = 697 units
b)
Suppose demand doubles to 28,000, Using same equation, we have
EOQ = √[2 x 65 x 28,000) / 3.75] = 985 units
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Oriole Company issues $200,000, 20-year, 9% bonds at 104. Prepare the journal entry to record the sale of these bonds on June 1, 2020
Answer:
Dr Cash $208,000
Cr Bonds payable $200,000
Cr Premium on bonds payable $8,000
Explanation:
Preparation of the journal entry to record the sale of these bonds on June 1,
Based on the information given we were told that the company issues the amount of $200,000 at 104 which means the that the journal entry to record the sale of these bonds on June 1 will be:
Dr Cash $208,000
(2,000 × $104)
Cr Bonds payable $200,000
(2,000 × $100)
Cr Premium on bonds payable $8,000
(2,000 ×$4)
Note:-
$200,000/100 =$2,000