Devils Advocacy assigns someone in an organization or group to identify potential issues or challenges with a proposed process.
What is Devils Advocacy?When someone engages in "devil's advocate" behaviour, they are promoting a viewpoint that is in opposition to what they actually believe. The idea is to show how the opposite side feels and, perhaps, to help someone else understand why and how that opponent might respond. when someone feigns opposition to a proposal that has broad support in a debate or argument in an effort to find errors or weaknesses. Using a devil's advocate to generate genuine opposition is not only a watered-down method. A devil's advocate might even produce the precise outcome they are trying to avoid. Even in studies where using a devil's advocate prompts more arguments, the new arguments typically favour the group's position.
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a bond with duration of 10 years has a yield to maturity of 10 percent. this bond's volatility (modified duration) is
The bond's volatility (modified duration) is 9.09%
How are bonds volatile?volality = duration / ( 1 + yield )
so,
10/(1.10) =9.09%
Bonds will always be less volatile than equities on average since their revenue flow is better understood and more predictable. The performance of equities is surrounded by more uncertainties, which raises their risk level and volatility.The volatility of a bond refers to how much its price changes as a result of shifting interest rates. The coupon rate and the date of retirement of a bond affect its volatility (at maturity or call date).The longest durations are typically seen in bonds with extended maturities and low coupons. These bonds are more volatile in a rate environment where interest rates are fluctuating because they are more susceptible to changes in market rates.To learn more about bonds refer to:
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advertising encourages wholesalers and retailers to carry the products of a specific manufacturer. select one: a. institutional b. b2b comparison c. trade d. advocacy
A trade advertisement encourages wholesalers and retailers to carry the products of a specific manufacturer.
Advertising is the practice and strategies used to draw attention to a product or service. Advertising attempts to draw attention to a product or service by putting it in the spotlight. It is often intended to promote a certain commodity or service, but it has a wide range of applications, the most prevalent being commercial advertising.
Commercial advertising frequently strive to boost consumption of their products or services by "branding," which equates a product name or image with certain traits in the minds of consumers. Direct-response advertising, on the other hand, is used to encourage an immediate sale. Advertising can also serve to reassure employees or shareholders that a company is viable or profitable.
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the government decides to construct greenbelt to make the city look more beautiful. the marginal cost of the greenbelt is $2000q $4000 (the unit of q is acre). suppose there are 1,000 people in the city, each values the greenbelt at $10 per acre. how many acres of greenbelt will the government construct?
The government will create a 3-acre greenbelt.
A "marginal cost" is the increase or decrease in price related to producing goods or providing services to an additional consumer. often referred to as incremental cost.
to increase revenue Businesses can forecast the number of units produced at which costs and revenues will be equal by plotting marginal cost and revenue. The company's revenue will be maximized by producing this many units because any extra units will result in a loss.
The concept of marginal cost is essential to economic theory because, in order to maximize profits, a company can only produce until its marginal cost (MC) equals its marginal income (MI) (MR). Beyond that, the expense of manufacturing a new product will exceed the profit.
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queen manufacturing uses 2,300 switch assemblies per week and then reorders another 2,300. the relevant carrying cost per switch assembly is $9.00 and the fixed order cost is $1,150. a. what is the current carrying cost? (do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. what is the order cost? (do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. what is the eoq? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Companies use the economic order quantity (EOQ) calculation to determine their ideal order size, which enables them to meet demand without overspending.
EOQ is calculated by inventory managers to reduce holding costs and excess inventory.
The economic order quantity is equal to sqrt((2 * Annual Demand * set up Cost) / (Holding Cost)) = sqrt((2 * 2300 * 52 * 1150) / 9) = 5528.512 switch. Current Carrying Cost = ((2300 / 2) * 9) = $10350. The order costs are equal to ((2300 * 52) / 2300) * 1150) = $59,800.
What is EOQ and how does it work?
The following is the formula for EOQ: Demand is equal to the square root of EOQ, or [(2 x demand x ordering cost) / carrying cost].According to EOQ's assumptions, demand remains constant. The number of units sold or the amount of inventory used annually is the demand.
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hy don't banks hold 100 p ercent reserves? how is the amount of reserves banks hold related to the amount of money the banking system creates?
The reason why banks don't have 100% reserves is because it is more profitable to use reserves to make loans. The number of reserves banks hold is associated with the number of money the banking system product along the money multiplier. The smaller the fraction of reserves banks hold, the larger the money multiplier, because every dollar of reserves has a function to make more money.
A central bank, monetary authority or also known as reserve bank, generally can be defined as an institution that manages monetary policy and the currency of a state or formal monetary union, and oversees their commercial banking system. Bank don't want to keep the rest of money because bank can earn advantage by loaning some of the reserves out.
This question is not complete, the complete question is:
"why don't banks hold 100 percent reserves? how is the amount of reserves banks hold related to the amount of money the banking system creates?".
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on september 1 year 1 the central illinois university ticket office sold 1800000 worth of season basketball tickets ten home games will be played four game will be playing during year 1 and six games will be played during year 2 what is the adjusted balance in deferred revenue account at december 31 year 1
The adjusted balance in deferred revenue account at December 31 will be 1,080,000.
What is adjusted balance?Adjusted balance is one of several methods used by credit card companies to calculate a cardholder's cost of funding. The latter is the fee charged if the cardholder keeps a monthly balance rather than paying the balance in full by the due date of each month.The adjusted balance method for calculating loan fees uses the last balance of the most recent billing cycle and subtracts all payments and credits made during the current billing cycle.If you made one or more purchases underPlan It, your credit will be adjusted until those purchases are refunded.If I choose the automatic reconciled balance payment option, American Express will charge my designated account for the adjusted balance shown on my statement.To learn more about adjusted balance from the given link :
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why must price cover average variable costs if the firm is to continue operating? if price is less than average variable costs, the firm can minimize losses by producing where marginal cost equals price. the firm can continue to operate because costs will be covered. fixed costs will exceed losses. the firm will minimize its losses by shutting down.
Price must cover average variable cost if the firm is to continue operating as the D) firm will minimize its losses by shutting down.
Price must include AVC or firms will lose more by continuing to operate than by ceasing to exist. Firms will lose not only their fixed costs but also a portion of their variable costs if they produce output when the price is below the average variable cost.
Businesses can keep their losses to their fixed expenses by ceasing operations when the average variable cost exceeds the price. The shutdown point, which indicates the price at which the company would run out of customers to pay its variable expenses, is the junction of the average variable cost curve and the marginal cost curve.
The perfectly competitive firm is at least covering its average variable costs if the market price is above the shutdown point.
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having the freedom to set your own working hours and taking lots of vacations, particularly when just beginning the business. accepting accountability for the mistakes of the business. having limited financial resources to throw into the business. reducing your working hours.
Being your own boss means accepting accountability for the mistakes of the business.
As a business owner, you are ultimately responsible for the actions of your employees. If they break the law or engage in unethical behavior, they should hold accountability. This is why it's so important to have a strong code of conduct and ethical standards in place.
You should also be aware of any red flags that could indicate your employees are engaging in questionable behavior. By being proactive and diligent, you can help create a culture of accountability in your business.
Hence, the correct option is "C".
The question is incomplete, the complete question is:
Being your own boss means:
A. reducing your working hours.
B. having the freedom to set your own working hours and taking lots of vacations, particularly when just beginning the business.
C. accepting accountability for the mistakes of the business.
D. having limited financial resources to throw into the business.
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the residual equity section of statement of financial position for private not-for-profits includes which accounts? g
Unrestricted, Temporarily Restricted, and Permanently Restricted Net Assets are included in the residual equity section of the private not-for-profit statement of financial position.
Net asset value is calculated by dividing the total number of outstanding shares by the net value of an investment fund's assets less its liabilities. NAV is the price at which shares of funds that are registered with the Net Assets U.S. Securities and Exchange Commission (SEC) are traded, and is most frequently used in relation to mutual funds or exchange-traded funds (ETFs).
Net assets, net worth, or capital of the company are terms used to financial describe the difference between assets and liabilities for financial businesses and other legal entities. The fund valuation and pricing are referred to as Net Assets NAV, and they are calculated by dividing the difference between assets and liabilities by the number of shares held by investors.
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which two factors have the biggest impact on the risk premium for non u.s. bonds? question 17 options: quality and maturity quality and country risk maturity and exchange rate risk exchange rate risk and country risk
Business risk, financial risk, liquidity risk, exchange-rate risk, and country-specific risk all contribute to the risk premium. Each of these risk factors has the potential to lower returns.
Business risk, in a nutshell, is the uncertainty of whether a company will generate enough revenue to cover its costs. The capacity of a company to manage its debt and financial leverage is referred to as financial risk.
the risk of financial loss in a business venture or investment. Among the more common and different financial risks are credit risk, liquidity risk, and operational risk. A sort of risk that could result in interested parties losing money is financial risk.
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assume a risk-free return is 3%. the beta of a managed fund is 1.8, the alpha is 0.5%, and the average return is 6%. based on jensen's measure of portfolio performance, the return on the market portfolio equals:
The calculation of the market portfolio's return is displayed below:
30.56%
As we are aware of
Alpha is equal to the average return minus the risk-free return plus beta (return on investment minus risk-free return).
0.005 is equal to 0.06- [0.03 + 1.8 (return on market portfolio - 0.03)].
[0.03 + 1.8 return on market portfolio - 0] - 0.005 = 0.06 .03]
0.005 is equal to 0.06, 0.03, 1.8 return on market portfolio, and 0.03
1.8 return on market portfolio = 0.06 - 0.03 + 0.03 - 0.005.
1.8 return on market capitalization equals 0.055
Consequently, the market portfolio's return is
= 0.055 ÷ 1.8
= 0.03056
=30.56%
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many economists believe that the trend toward greater wage inequality across the u.s. economy was primarily caused by . group of answer choices the recession new technologies the rise of global markets inflation
Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by new technologies.
A region's economy is its capacity for the creation, exchange, and consumption of goods and services. Generally speaking, it is described as a social domain that places an emphasis on the practices, discourses, and material manifestations connected to the production, use, and management of scarce resources. A system of interconnected production and consumption activities makes up an economy, and these activities ultimately decide how resources are distributed within a society. Economists research intricate data and statistics and use the information they glean to advise businesses on financial matters. As an economists, you would investigate and keep an eye on economic trends as well as develop statistical models to forecast future events. An economist is a specialist who investigates how a society's resources affect its output or production.
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if a paper mill shuts down its operations for three months so that it produces nothing, which part of its cost is reduced to zero?
The variable cost of a paper mill is reduced to zero if it stops production for three months.
What is a variable cost?A variable cost is a type of business expense that varies depending on how much a company produces or sells. Variable expenses grow and fall with changes in production, depending on a company's amount of sales.
Examples of variable costs include raw material and packaging costs for manufacturing companies, as well as credit card transaction fees and shipping costs for retail businesses, which fluctuate with sales. A fixed cost can be contrasted with a variable cost.
What Is the Total Variable Cost Formula?
Every unit of production should ideally have the same amount of variable expenses because they scale together. As a result, the total output quantity can be multiplied by the unit variable cost to determine total variable costs.
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all of the following strategies may encourage participative management except: select one: a. task delegation. b. parallel suggestion involvement. c. job involvement. d. theory x management.
Except for theory X management, any of the following tactics may promote participatory management.
People who adhere to Theory X detest their jobs, lack ambition, and shun accountability. This presumption leads managers to drive their workforce using a rigorous "carrot and stick" strategy that rewards superior performance and penalizes subpar performance.
The significance of increased oversight, outside rewards, and outside sanctions is explained by Theory X. When it comes to inspiring others, Theory X takes an authoritarian stance. This strategy makes several important assumptions, one of which is that the typical employee despises their job and will do everything to escape it.
The second tenet of theory X is that in order to motivate individuals to contribute to corporate objectives, they must be intimidated or coerced.
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which of the following statements is true?a. when the fed sells government bonds, the money supply decreases.b. the federal reserve was created in 1871 in response to the civil war.c. the primary tool of monetary policy is the reserve requirement.
The true statement is- When the Fed sells government bonds, the money supply decreases.
What are the government bonds?
A government issues a debt security known as a government bond to fund its obligations and expenses. Periodic interest payments on government bonds are known as coupon payments. Since the issuing government backs government bonds, they are frequently seen as low-risk investments.
Sovereign debt is another name for government securities issued by the federal government.
In the secondary market, some Treasury bonds are traded. Through this market, individual investors can buy and sell previously issued bonds in collaboration with a financial institution or broker. The U.S. Treasury, brokers, and exchange-traded funds (ETFs), which hold a variety of securities, all offer easy access to buying Treasuries.
Government fixed-rate bonds may be subject to interest rate risk, which happens when rates are rising and investors are holding fixed-rate bonds that pay less than the market average. Additionally, only a few bonds are able to stay up with inflation, a measurement of price increases across the board in the economy. When prices in the economy rise by 1.5% and a fixed-rate government bond pays 2% annually, for instance, the investor only makes a real return of 0.5%.
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g hanebury manufacturing company (hmc) has preferred stock outstanding with a par value of $50. the stock pays a quarterly dividend of $1.25 and has a current price of $71.43. what is the nominal annual rate of return on the preferred stock?
The stock pays a quarterly dividend of $1.25 and has a current price of $71.43.the nominal annual rate of return on the preferred stock is 7.19%.
The ownership certificates of any company are referred to as "stocks" in general. On the other hand, a share alludes to the stock certificate of a specific business. A shareholder is someone who owns stock in a specific company. Stocks come in two varieties: common and preferred. The term annual rate (APR) describes the annual interest that is produced by a sum that is owed to investors or charged to borrowers. The annual rate, or APR, is a measure of the actual cost of borrowing money over the course of a loan or the income generated by an investment. The annual interest rate that would apply to a deposit made at the stated rate of 10% compounded monthly is 10.47%.
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who is most likely to have a working knowledge of the various enterprise systems that are in use in the company?
An internal auditor is most likely to have a working knowledge of the various enterprise systems that are in use in the company.
The system administrator is most likely to have a working knowledge of the various enterprise systems that are in use in the company.
An individual who oversees maintaining, configuring, and ensuring the reliable operation of computer systems, particularly multi-user computers like servers, is known as a system administrator, often known as a sysadmin or admin. The goal of the system administrator is to meet the users' needs in terms of computer uptime, performance, resources, and security while staying under a predetermined budget.
Network and pc systems administrators work with each IT and non-IT team of workers. despite the fact that many communities and laptop systems directors are employed through companies inside the laptop structures design and associated offerings industry, they paint in a selection of settings.
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a manufacturer of clothing currently sells its products at neiman marcus and dillard's. a survey shows that a majority of its customers expect to find its products at neiman marcus, macy's, and saks fifth avenue, but relatively few customers expect to find the products at dillard's or marshalls. if the manufacturer acts on its customers' expectations, what action would it take in regard to its retail partnerships?
If the manufacturer acts on its customers' expectations, it will start by partnering with Macy's and Saks fifth avenue and leave Dillard's behind.
What is partnering?
A process of building a connection between each party by knowing each other's obligations, and maintaining an attitude of goodwill and trust.
At first, the manufacturer probably know 2 department stores's key person and it is the main reason why the manufacturer sells its products in Neiman Marcus and Dillard's. Along the way, when the market segment of the manufacturer's products already settled, it acts to listen on the customers' expectations to make a greater sales and the manufacturer has to make a change as its customers wants. The main objective of the manufacturer is to make the greatest sales, so it has to join with the bigger department stores (Macy and Saks fifth avenue) and leave the smaller department store (Dillards) behind.
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explain how international tourism could assist in reducing the current sizable u.s. trade deficit. how could it increase the deficit?
The status of tourism is the same as that of a country's trade because it is seen as an invisible export.
A country's trade or exports are equivalent to the number of tourists it receives. Greater tourists bring in more revenue for the country's commerce activities.
For instance, a Chinese traveler to the US will stop at the Grand Canyon, Yellowstone, Alaska, and Niagara Falls, among other locations. He will be demanding a number of things at each of these locations, including hotel accommodations, transportation, meals, and other things he will be purchasing. All of these needs will contribute to the cost of those US manufacturing factors, just like an exporter would.
Tourism thereby reduces the trade deficit by bringing in foreign cash like trade does.
It also works the other way around; take the example of an American tourist who travels to India and spends money there. He will travel with US dollars and make purchases in India just as he would have done if India had been an exporter of goods to the US. Due to increased US purchases of Indian goods, the trade deficit will rise.
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austertech, a u.s. company, produces computer parts and sells them to south american countries. austertech is engaging in the international business activity known as .
Austertech, a u.s. company, produces computer parts and sells them to south American countries. austertech is engaging in the international business activity known as Exporting.
An export in worldwide exchange is a great produced in one united states of america this is offered into every other united state of america or a service furnished in a single united states of america for a national or resident of some other us of a. the seller of such goods or the service issuer is an exporter; the overseas purchaser is an importer. Exporting may be profitable for organizations of all sizes.
On average, sales develop faster, extra jobs are created, and employees earn greater than in non-exporting corporations. aggressive gain. america is known worldwide for excessively nice, progressive goods and services, customer support, and sound enterprise practices.
the hobby of sending items to some other country with a purpose to promote them there: the exportation of sth the primary commercial enterprise of the port is the exportation of grain and agricultural produce.
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question content area under the inventory method, accounting records maintain a continuously updated inventory value. a.periodic b.physical c.retail d.perpetual
The perpetual inventory approach involves continuously updating the inventory value in accounting records.
What inventory method is applied to maintain an updated inventory value in accounting records?Manual inventory inspections are no longer required thanks to perpetual inventory, a computerized point-of-sale system that constantly logs inventory changes in real time.
Which of the following inventory management systems keeps a running tally of the price of items both on hand and sold?The perpetual inventory system continuously monitors inventory balances. This is accomplished by automated systems that track inventory purchases and sales utilizing enterprise asset management (EAM) and point-of-sale (POS) technology.
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write how vermicompost is prepared in a pit
Explanation:
Vermicomposting pits are mainly used by farmers. These farmers dig a large hole that serves the purpose of burying worms and organic waste material. Pits made for vermicomposting are usually 1 m deep and 1.5 ms wide.
a bond that pays interest only when a firm has sufficient earnings to cover the interest payments is called a(n) .
A bond that pays interest only when a firm has sufficient earnings to cover the interest payments is called an Income bond.
An income bond is a type of financial security in which the investor is only guaranteed to receive the bond's face value; any coupon payments are only delivered if the company issuing the bond has enough revenue to meet the coupon payment. In the case of corporate bankruptcy, an adjustment bond is a specific type of income bond.
The income bond is a type of financial instrument that is very uncommon and often serves a purpose for the company similar to that of preferred shares. Unlike preferred shares, which have missed dividend payments added to later periods until they are paid off, common shares do not have this limitation.
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kasper film co. is selling off some old equipment it no longer needs because its associated project has come to an end. the equipment originally cost $22,500, of which 75% has been depreciated. the firm can sell the used equipment today for $6,000, and its tax rate is 40%. what is the equipment's after-tax salvage value for use in a capital budgeting analysis? note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale.
Kasper film co. is selling off some old equipment . The equipment's after-tax salvage value for use in a capital budgeting analysis is $ 5850
Calculating the problem:Original cost = $ 22,500
Depreciation = $ 16,875
Book value = $ 22, 500 - $ 16, 875
= $ 5,625
Sale value = $ 6000
Book value = $ 5625
Capital gain = $6000 - $ 5625
= $ 375
Tax = $ 150
Available cash flow = $ 6000
Tax = $ 150
Net cash flow = $ 5850
What's expressed by capital budgeting?Capital budgeting is the process a business undertakes to estimate implicit major systems or investments. structure of a new factory or a big investment in an outer adventure are exemplifications of systems that would bear capital budgeting before they're approved or rejected.
What's capital budgeting advantages?Capital budgeting helps a company conclude the colorful pitfalls involved in an investment occasion. And how these pitfalls affect the returns of the troop. It helps the company to estimate which investment attachment would yield the stylish possible return.
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how is immigration affecting u.s. demographics? multiple choice it is increasing the diversity of the workforce. it is decreasing the number of workers. it is decreasing the number of consumers.
Due to their higher fertility rate than natives, immigrants also contribute to the demography of modern economies. In 2017, the total fertility rate in the United States was 1.76 children per woman among natives, compared to 2.18 among immigrant.
What impact does immigration have on American workers?
Numerous empirical studies have established the advantages of immigration for American workers. With a few notable exceptions, it has been discovered that even immigrants with low levels of formal education have little impact on the salaries of workers with comparable levels of education. Although immigrants enhance the labour supply, they also increase domestic economic demand by buying homes, food, TVs, and other goods and services with their earnings. As a result, there are more employment needed to build those homes, produce and sell food, and deliver TVs. 27-Jun-2016
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if the economy is shrinking, firms with low operating leverage will experience . a. higher decreases in profits than firms with high operating leverage b. similar decreases in profits as firms with high operating leverage c. smaller decreases in profits than firms with high operating leverage d. no change in profits e. none of the above
Firms with low operating leverage will experience smaller decreases in profits if the economy shrinks than firms with high operating leverage.
Leverage is an American action crime drama television series that ran on TNT from December 7, 2008 until December 25, 2012. Electric Entertainment, a production firm run by executive producer and director Dean Devlin, produced the series. Leverage features a five-person team lead by former insurance investigator Nathan Ford, who uses their expertise to carry out heists to battle corporate and political injustices perpetrated on ordinary folks.
Leverage was renewed for a fourth season on July 30, 2010. It debuted on June 26, 2011, and aired for 18 episodes, ten in the summer and eight in the winter.
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the cape cod cotton candy company had the following information available regarding last year's operations: sales (100,000 units) $200,000 variable costs 100,000 contribution margin 100,000 fixed costs 50,000 net income 50,000 if sales were to increase by 200 units, what would be the effect on net income?
The cape cod cotton candy company had the following information available. The effect on net income will be $200.
Net income refers to the quantum an individual or business makes after abating costs, allowances and levies. In commerce, net income is what the business has left over after all charges, including payment and stipend, cost of goods or raw material and levies.
Calculating the problem:Selling cost per unit = $ 200,000 ÷ $ 100,000
= 2
Variable cost per unit = $ 100,000 ÷ 100,000
= 1
sales = 100,200× 2 = 200 ,400
Variable cost = 100,200 × 1
= 100,200
Contribution margin = 100,200
Fixed cost = 50,000
Net income = 50,200
So , net increase is $ 200.
Is Net Income the Same as Profit?
Generally, net income is synonymous with profit since it represents the final measure of profitability for a company. Net income is also appertained to as net profit since it represents the net quantum of profit remaining after all charges and costs are abated from profit.
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ou would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. how much would you need to have saved in your retirement fund to achieve this goal? (assume that the perpetuity payments start one year from the date of your retirement. the annual interest rate is 8 percent.)
You need to have saved $1,000,000 in your retirement fund to achieve this goal.
In the field of finance, a security that generates an endless supply of cash is known as perpetuity. It functions as a kind of perpetual annuity. The quantity of the regular cash flows is simply divided by the discount rate to get the present value of a perpetuity.
Calculate how much would need to be saved in your retirement account for you to reach this objective.
We will use the perpetuity equation,
PV=C/r
Where, C=Perpetuity after retirement
r=Annual interest rate
Now, put the values in the formula,
PV = (80,000/0.08)
PV= $1,000,000
Therefore, $1,000,000 in retirement savings would be required for you to reach this goal.
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gender can be referred to in many ways (male, female, m/f, 1/0) in a data warehouse. what is it called when you ensure gender is referenced the same way throughout an organization?
Gender can be referred to in many ways (male, female, m/f, 1/0) in a data warehouse. when you ensure gender is referenced the same way throughout an organization it is called Standardizing protocols .
A data processing procedure called Data Standardization transforms the structure of various datasets into a Common Data Format. Data Standardization is a subfield of data preparation that deals with transforming datasets after they are extracted from source systems but before they are put into destination systems. Because of this, processes involving data exchange may also be thought of as transformation rules engines.
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In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0. 75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20.
The vertical intercept of the expenditure line is:
Induced expenditure equals:Autonomous expenditure equals:Planned aggregate expenditure equals:The slope of the expenditure line is:The vertical intercept of the expenditure line is:Induced expenditure equals:
According to given question Autonomous expenditure equals is 290 in Macroland.
What do you mean by investment?An investment is something that is purchased with objective of earning money or gaining fame. A purchase for products that are not used right away but will be utilized to create wealth down the road is referred to as an investment in an economic prospects.
Briefing:Spending that is autonomous is spending which is unattached to income. In this case, because C = 100 + 0.75(Y - T),
we have PAE = C + I + G + NX = [100 + 0.75(Y - 40)] + 50 + 150 + 20 = 100 + 0.75Y - 30 + 50 + 150 + 20 = 290 + 0.75Y.
Autonomous expenditure is the vertical intercept of 290.
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