Boulderado has come up with a new composite snowboard. Development will take Boulderado four years and cost $250,000 per year, with the first of the four equal investments payable today upon acceptance of the project. Once in production the snowboard is expected to produce annual cash flows of $200,000 each year for 10 years. Boulderado's discount rate is 10%. Calculate the IRR for the snowboard project and use it to determine the maximum deviation allowable in the cost of capital estimate that leaves the investment decision unchanged.
Answers
Answer:
a) 13.704%
b) 3.704%
Explanation:
Development of composite snowboard = 4 years
Total cost / investment = 250,000 * 4 = $1,000,000
Annual cash flows ; $200,000 for 10 years
discount rate = 10%
cash flow at t = 0 = ( Total cost / investment ) = - $1,000,000
a) calculate the IRR for the snow board
attached below is the calculation using online tool
IRR = 13.704%
b) maximum deviation allowable in cost of capital
maxi deviation = IRR - r
= 13.704% - 10% = 3.704%
Related Questions
why microeconomics is useful in business decision making? Explain
Answers
Answer:
The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce.
Explanation:
With the help of microeconomic analysis, business firms can forecast their level of demand within the certain time interval. The demand for a commodity fluctuates depending upon various factors affecting it. Thus, business firms and decision makers can determine the level of demand for the commodity.
Microeconomic theories explain various conditions of cost like fixed cost, variable cost, average cost, and marginal cost. Along with this, it also provides an analysis of the short run and long run costs that help the business decision makers determine the cost of production and other related costs, so they can implement policies to cut down cost and increase their level of profit.Microeconomics explains the operating of a free market economy where, an individual producer has the freedom to take economic decisions like what to produce, how to produce, or for whom to produce. Allocation of resources is determined by price or market mechanism i.e. interaction between demand and supply.
When using the formula for calculating the APR, you need to add 1 to one of the values. Which value?
a. the total number of payments
b. amount of loan
c. finance charge
d. number of payment periods in one year
Answers
When using the formula for calculating the APR (Annual Percentage Rate), you need to add 1 to the number of payment periods in one year (d).
The APR is a measure of the cost of borrowing money, expressed as a percentage. It takes into account the amount of the loan, the finance charge (the fees associated with borrowing the money), and the number of payments that will be made over the course of the loan.
To calculate the APR, you will need to use the following formula:
APR = (finance charge / loan amount) x (number of payment periods in one year / number of payments) x 100
In this formula, the finance charge is the total amount of money that the borrower will pay to borrow the loan. The loan amount is the principal amount of the loan, or the amount of money being borrowed. The number of payment periods in one year is the number of times that payments will be made over the course of one year, and the number of payments is the total number of payments that will be made over the course of the loan.
By adding 1 to the number of payment periods in one year, you are taking into account the fact that there are typically more than 12 payment periods in a year (for example, if you make monthly payments, there will be 12 payment periods in one year). This ensures that the APR is accurate and reflects the true cost of borrowing the money.
Hope This Helps You!
In calculating the APR, the number to which you add 1 is the number of payment periods in one year, but express as a decimal and not a percent.
Explanation:In the context of calculating the Annual Percentage Rate (APR), you would add 1 to the number of payment periods in one year by converting it from a percent to a decimal. Here is a simple example: If the annual interest rate is 5%, we express it as 0.05, but when we use it to calculate the APR, we add 1 to get 1.05 which is utilized in the formula.
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Times Inc. is trying to develop an asset-financing plan. The firm has $540,000 in temporary current assets and $440,000 in permanent current assets. Times also has $640,000 in fixed assets. Assume a tax rate of 40 percent. (Do not round intermediate calculations. Round your answers to the nearest whole number.) a. Construct two alternative financing plans for Times. One of the plans should be conservative, with 80 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 14 percent on long-term funds and 8 percent on short-term financing. Compute the annual interest payments under each plan. Annual Interest Conservative $ Aggressive $ b. Given that Times' earnings before interest and taxes are $420,000, calculate earnings after taxes for each of your alternatives. Earnings After Taxes Conservative $ Aggressive $ c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long-term interest rates were reversed
Answers
Answer:
Times Inc.
Conservative Aggressive
a) Annual interest payments $207,360 $184,275
b) Earnings After Taxes $127,584 $141,475
c) Annual interest payments $149,040 $172,125
Earnings After Taxes $162,576 $148,725
Explanation:
a) Data and Calculations:
Temporary current assets = $540,000
Permanent current assets = 440,000
Fixed assets = 640,000
Total assets = $1,620,000
Assumed tax rate = 40%
Conservative Aggressive
Financed by long-term sources 80% 56.25%
Long-term finance $1,296,000 $911,250
Short-term finance 324,000 (20%) 708,750 (43.75%)
Annual interest payments:
Long-term interest rate = 14% $181,440 $127,575
Short-term interest rate = 8% 25,920 56,700
Total annual interest payments $207,360 $184,275
b) Earnings before
interest and taxes $420,000 $420,000
Annual interest payments 207,360 184,275
Earnings before taxes $212,640 $235,725
Income taxes (40%) 85,056 94,250
Earnings After Taxes $127,584 $141,475
Annual interest payments:
Long-term interest rate = 8% $103,680 $72,900
Short-term interest rate = 14% 45,360 99,225
Total annual interest payments $149,040 $172,125
c) Earnings before
interest and taxes $420,000 $420,000
Annual interest payments 149,040 172,125
Earnings before taxes $270,960 $247,875
Income taxes (40%) 108,384 99,150
Earnings After Taxes $162,576 $148,725
Which phrase best completes the diagram?
Features of Developing countries
Low per capita income
Limited access to luxury goods
?
O
A. Small population
B. High standard of living
C. Use of fiat currency
D. Low gross domestic product
Answers
Low gross domestic product
The diagram above can be best completed by the phrase, D. Low gross domestic product.
What completes the diagram on developing countries?Developing nations have weaker economies which is why they have a low per capita income and cannot access expensive luxury goods as much.
They also have a lower gross demestic product because their economies are not strong enough to produce much goods.
In conclusion, option D is correct.
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what is electric home and farm authority?
Answers
Answer: The Electric Home and Farm Authority (EHFA) is a nonprofit organization that provides energy efficiency and renewable energy solutions to rural and low-income households. The organization works with local governments, utilities, and other organizations to provide energy efficiency and renewable energy services to rural and low-income households. EHFA also provides education and outreach to help rural and low-income households understand and take advantage of energy efficiency and renewable energy opportunities.
Explanation:
Electric Home and Farm Authority refers to a government program in the United States that aimed to provide electricity to rural areas during the New Deal.
Explanation:An Electric Home and Farm Authority refers to a government program implemented during the New Deal in the 1930s. It aimed to bring electricity to rural areas in the United States that lacked access to it.
The program provided low-interest loans to cooperatives or private companies to build power plants and distribute electricity to rural communities. This initiative helped improve the quality of life in rural areas and contributed to the economic development of those regions.
Some examples of Electric Home and Farm Authorities include the Tennessee Valley Authority (TVA) and the Rural Electrification Administration (REA).
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? Assessment
1/10
Which of the following is NOT a method a doctor would use to examine a patient?
A. Listening to a patient explain their
symptoms
B.Observing the patient through a
telescope
C. Testing reflexes with a reflex
hammer
D. None of the above
Answers
Answer:
B
Explanation:
A telescope is used to look at stars and planets, not a patient.
Answer:
The correct answer is B
Explanation:
Recording the Early Retirement of a Bond Issued at a Premium (with Premium Account) LO10-7 Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,140,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,037,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Record the retirement of the bonds, using a premium account.
Answers
Answer:
Date Account Titles and Explanation Debit Credit
Bonds payable $1,000,000
Loss on retirement of bond $13,000
[$1,050,000 - $1,037,000]
Premium on bond $37,000
Cash (1,000,000*105%) $1,050,000
(Record the retirement of the bonds, using a premium account)
The following items are reported on a company's balance sheet: Cash $210,000 Marketable securities 120,000 Accounts receivable (net) 110,000 Inventory 160,000 Accounts payable 200,000 Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place. a. Current ratio fill in the blank 1 b. Quick ratio fill in the blank 2
Answers
Answer:
See below
Explanation:
1. Current ration
= Current asset/Current liabilities
Current assets = Cash + Marketable securities + Accounts receivables + Inventory
= $210,000 + $120,000 + $110,000 + $160,000
= $600,000
Current liabilities = Accounts payable = $200,000
Current ratio = $600,000/$200,000
Current ratio = 3:1
2. Quick ratio
= Current assets - Inventory / Current liabilities
= ($600,000 - $160,000) / $200,000
= 2.2 : 1
Assume that during 2020, Cypress Semiconductor Corporation reported net cash provided by operating activities of $155,985,000, net cash used in investing activities of $207,055,000 (including cash spent for plant assets of $132,295,000), and net cash used in financing activities of $33,370,000. Dividends of $4,165,000 were paid. Calculate free cash flow. (Enter a negative amount using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)
Answers
Answer:
$19,525,000
Explanation:
Calculation to determine the free cash flow
Using this formula
Free cash flow=Net cash provided by operating activities-cash spent for plant assets-Dividends
Let plug in the formula
Free cash flow=$155,985,000-$132,295,000-$4,165,000
Free cash flow=$19,525,000
Therefore The Free cash flow is $19,525,000
An externality is an (1 point) a intended consequence for a third-party b unintended consequence for a third-party c intended consequence for a second-party d unintended consequence for a second-party
Answers
Answer:
unintended consequence for a third-party
Explanation:
Externality is an unintended consequence for a third-party not involved in production or consumption activity
types of externality
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
The following information is taken from the production budget for the first quarter: Beginning inventory in units 1200 Sales budgeted for the quarter 356000 Capacity in units of production facility 402000 How many finished goods units should be produced during the quarter if the company desires 3200 units available to start the next quarter
Answers
Answer:
358,000
Explanation:
The number of units to be produced is dependent on the desired closing units, the sales and opening balance
Hence,
Opening balance + Units produced - Sales = Closing balance
Let the goods produced be y
1,200 + y - 356,000 = 3,200
y = 3,200 + 356,000 - 1,200
y = 358,000
The company should produce 358,000 units during the quarter if company desires 3,200 units available to start the next quarter.
For which of the following errors would the appropriate amount be subtracted from the balance per books on a bank reconciliation? Check written for $53, but recorded by the company as $35. Deposit of $200 recorded by the bank as $20. Check written for $58, but recorded by the company as $85. A returned $600 check recorded by the bank as $60.
Answers
Answer:
Check written for $53, but recorded by the company as $35.
Explanation:
In this, the check is written for $53 which means that the bank would debited the books by $53 but the books of the company represent only $35 in the credit sid. So here the company should have to deduct the additional amount i.e. $18 for making the amount same in both the books
Therefore the above statement represent the answer
Identify messages that you have seen or heard from several companies?
Answers
Answer:
Integrated marketing communication can be described as the use of marketing strategies to optimizethe communication of a consistent message of the company’s brands to stakeholders. Messages areused by organizations to communicate about themselves and the value of the product they offer. I have seen these kind of messages from several companies. One of them is Telekom Networks of Malawi. This company provide communication services in Malawi. Their slogan is “always with you”. I can say that the company is consistent with its message across the market they are targeting because their adverts are everywhere (internet, newspapers, Magazine e.t.c) so as their services, assuch they reach their targets and deliver their promises, and also the services they provide are in line with their slogan, for example, they provide airtime on credit when one need it most.
Entities such as offer certifications and qualifications in accounting that will help increase your future earning potential, deepen your knowledge, and enhance your credibility in the field.
Answers
There are numerous other professional associations, such as the institute of management, accountants, and American association of finance and accounting .
What is certifications and qualifications in accounting ?So joining one of these organisations can help you improve your knowledge, raise your standing in the accounting community, and increase your earnings in the future.
In the United States, the CPA licence is the most widely used accounting credential for positions in accounting and finance. Your proficiency in tax, compliance, risk management, forensic accounting, and other fields is recognised by this accreditation.
A well-known accounting certification can help you get work, boost your marketability, and give you and your company professional credibility in a cutthroat industry.
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Oriole Company reported retained earnings at December 31, 2018, of $312,500. Oriole had 210,000 shares of common stock outstanding at the beginning of 2019. The following transactions occurred during 2019.
1. A cash dividend of $0.50 per share was declared and paid.
2. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
3. Net income was $282,000.
Retained earning statement :
Compute the ending balance in retained earnings at the end of 2019.
Answers
Answer:the ending balance in retained earnings at the end of 2019=$332,000
Explanation:
Particulars Amount
Retained earnings December 31,2018 $312,500
Less: Cash dividend $105,000
(210000 X $0.50)
Less: Stock dividend $157,500
(210,000 X 5% X $15)
$50,000
Add: Net income $282,000
Retained earnings $332,000
Thomas’ family also runs a gourmet food store that sells two main products: Premium Caviar and Goose Foie Gras. They import the Premium Caviar from Russia, and purchase Goose Foie Gras from Upstate New York. The two products are sold in boxes. Thomas gathers the following information:
When Thomas took accounting courses at college, he knows how to do cost-volume-profit analysis pretty well. However, he just remembers how to do the analysis for those companies with only one product. Therefore, he needs your help to calculate the following:
a. What is the business’ weighted-average contribution margin per unit? (show your computation)
b. Calculate the business’ break-even point in units assuming the current sales mix. (show your computation)
c. What will be the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales? (show your computation)
d. What is the business’ weighted average contribution margin ratio? (show your computation)
I have it completed... just need to check my work. I would appreciate a response as soon as possible.
Answers
a.
Premium Caviar:
Selling price per unit: $50
Variable cost per unit: $25
Contribution margin per unit: $50 - $25 = $25
Goose Foie Gras:
Selling price per unit: $30
Variable cost per unit: $15
Contribution margin per unit: $30 - $15 = $15
How to determine the weighted-average contribution?To determine the weighted-average contribution margin per unit, we need to know the sales mix (the proportion of total sales for each product). Let's assume that the sales mix for Premium Caviar and Goose Foie Gras is 50:50, so half of total sales are for Premium Caviar and the other half for Goose Foie Gras.
The weighted-average contribution margin per unit is calculated by multiplying the contribution margin per unit for each product by the proportion of sales for that product, and then summing those values.
Weighted-average contribution margin per unit = (Contribution margin per unit for Premium Caviar x Proportion of sales for Premium Caviar) + (Contribution margin per unit for Goose Foie Gras x Proportion of sales for Goose Foie Gras)
= ($25 x 0.50) + ($15 x 0.50) = $20
To calculate the break-even point in units, we need to know the total fixed costs of the business. Let's assume that the total fixed costs are $100,000.
The break-even point in units is calculated using the following formula:
Break-even point in units = Total fixed costs / Contribution margin per unit
= $100,000 / $20 = 5000 units
c. To calculate the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales, we need to know the sales mix. We can use the sales mix we assumed earlier (50:50) and multiply it by the break-even point in units:
Premium Caviar boxes = (Break-even point in units x Proportion of sales for Premium Caviar) = (5000 x 0.50) = 2500 boxes
Goose Foie Gras boxes = (Break-even point in units x Proportion of sales for Goose Foie Gras) = (5000 x 0.50) = 2500 boxes
To calculate the weighted average contribution margin ratio, we need to divide the weighted-average contribution margin per unit by the weighted-average selling price per unit.
Weighted-average selling price per unit = (Selling price per unit for Premium Caviar x Proportion of sales for Premium Caviar) + (Selling price per unit for Goose Foie Gras x Proportion of sales for Goose Foie Gras)
= ($50 x 0.50) + ($30 x 0.50) = $40
Weighted-average contribution margin ratio = Weighted-average contribution margin per unit / Weighted-average selling price per unit
= $20 / $40 = 0.50 or 50%.
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When must you wash your hands
Answers
Answer:
Before, during, and after preparing food. Before and after eating food. Before and after caring for someone at home who is sick with vomiting or diarrhea. Before and after treating a cut or wound.
wash your hands before and after always and preferably with antibacterial soap
Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period:
Department Direct Expenses Square Feet
Maintenance $25,500
Milling 76,500 10,000
Assembly 105,400 15,000
The total cost of operating the Assembly Department for the current period is: _________
Answers
Answer:
Total operating expenses for assembly department $120,700
Explanation:
The computation of the total operating cost for the assembly department is given below;
Given that
Maintainance department direct expenses is $25500
Here we have to divided into 2 departments
So the new ratio is 10,000: 15,000
i.e. direct expenses with respect to the maintenance department share per square feet is
= $25500 ÷ (10000 + 15000)
= $1.02 per square feet.
Now total direct expenses for the assembly department :
Direct expenses $105400
Add: Allocation of maintenance department direct expenses ($1.02 × 15000 square feet) $15300
Total operating expenses for assembly department $120,700
The following information is available for Montrose Company at December 31: Cash in bank account $ 8,540 Petty cash $ 250 Short-term investment (maturing in two months) $ 10,400 Checks from customers $ 1,350 Equipment $ 805 Treasury bill maturing in 60 days $ 10,000 Money orders $ 290 A three-year certificate of deposit maturing in three years $ 6,000 Based on this information, the determine the amount reported as Cash and Cash Equivalents on December 31.
Answers
Answer:
Cash $10,430
Cash equivalents $20,400
Explanation:
Calculation to determine the amount reported as CASH on December 31
Using this formula
Cash = Cash in bank + Petty cash + Check from customer + money order
Let plug in the formula
Cash = $8,540 + $250 + $1,350 + $290
Cash = $10,430
Calculation to determine the amount reported as CASH EQUIVALENTS on December 31
Using this formula
Cash equivalents = Money market fund + Treasury bills
Let plug in the formula
Cash equivalents=$10,400+$10,000
Cash equivalents= $20,400
Therefore the amount reported as Cash and Cash Equivalents on December 31 are:
Cash $10,430
Cash equivalents $20,400
The following information is provided for Ivanhoe Company and Sarasota Corporation.
(in $ millions) Ivanhoe Company Sarasota Corporation
Net income 2022 $170 $350
Net sales 2022 1790 4790
Total assets 12/31/20 1075 2340
Total assets 12/31/21 1285 3150
Total assets 12/31/22 1195 4070
What is Bridgeport's return on assets (rounded) for 2017?
Answers
Answer: 9.695%
Explanation:
Based on the information given in the question, Bridgeport's return on assets for 2022 will be:
= Net income / Average total assets
= $350 / ($3150+$4070/2)
= $350/($7220/2)
= $350/$3610
= 0.09695
= 9.695%
Therefore, Bridgeport's return on assets for 2022 will be 9.695%
Suppose you are thinking of starting your own small business. Consider how your accounting profit is different than your economic profit.
a. Accounting profit is different than economic profit because:________.
i. economic profit is only important to economists and does not apply to the actual decision to launch a new business.
ii. accounting profit includes all financial and opportunity costs of starting a business.
iii. economic profit is what is reported on your tax return.
iv. accounting profit ignores the opportunity cost of launching a new business.
b. After doing your research, you are confident that you will make an accounting profit if you launch the business but feel it is very unlikely that you will make an economic profit. In this case, you start the business.
Answers
Answer:
IV
YES
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
economic profit includes the opportunity cost of funds
In some industries, only normal profit is earned in the short run. For example, in a perfect competition and monopolistic competition, only normal profit is earned in the long run due to free entry and exit of firms in the industry. thus if only normal profit would be earned, the company should still go ahead and establish
Madzinga's Draperies manufactures curtains. A certain window requires the following: Direct materials standard 9 square yards at $5 per yard Direct manufacturing labor standard 5 hours at $10 During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $69,300. Direct labor totaled 7,600 hours for $80,560.
Required:
a. Compute the direct materials price and efficiency variances for the quarter.
b. Compute the direct manufacturing labor price and efficiency variances for the quarter.
Answers
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5 - 4.95)*14,000
Direct material price variance= $700 favorable
Actual price= 69,300 / 14,000= $4.95
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (9*1,500 - 14,000)*5
Direct material quantity variance= $2,500 unfavorable
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (5*1,500 - 7,600)*10
Direct labor time (efficiency) variance= $1,000 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (10 - 10.6)*7,600
Direct labor rate variance= $4,560 unfavorable
Actual rate= 80,560 / 7,600= $10.6
What is technical profession?Give examples.
Answers
Answer:
Technical profession is a highly skill based profession in which a practical knowledge is required.Example:engineering in civil,mechanical,computer e.t.c.
1) There are more final consumers than business and organizational customers, so more is purchased by final consumers. Answer: FALSE 2) Manufacturers and developers are often categorized as intermediaries. Answer: FALSE 3) Organizational buyers are often referred to as the B2B market. Answer: TRUE 4) Organizational buyers are also referred to as industrial or intermediate buyers. Answer: TRUE
Answers
Answer:
1. The first statement is false, since there are more middle customers than final consumers in a business. Middle customers are those entities that used the purchased product as a raw material for a further process or directly sell that to some other entity.
2. Manufacturers and developers are producers and sometimes customers for some other entity from which they are procuring raw materials from. Hence,false.
3. B2B refers to the business to business transaction in which one organisation purchase goods from other organisation for not final consumption. Hence the statement is true.
4. The given statement is true as these are the buyers who purchase a product for some further use.
Below are the prices of toothpaste (9 oz.), shampoo (7 oz.), cough tablets (package of 100), and antiperspirant (2 oz.) for August 2000 and August 2017. Also included are the quantity purchased. Use August 2000 as the base.
Item August 2000 August 2017
Price Quantity Price Quantity
Toothpaste $2.49 6 $3.35 6
Shampoo 3.29 4 4.49 5
Cough drops 1.59 2 4.19 3
Antiperspirant 1.79 3 2.49 4
a. Determine the simple price indexes.
b. Determine the simple aggregate price index for the two years.
c. Determine Laspeyres' price index.
d. Determine the Paasche price index.
Answers
Answer:
a. We have:
Toothpaste simple price index = 134.54
Shampoo simple price index = 136.47
Cough drops = 263.52
Antiperspirant = 139.11
b. Simple aggregate price index = 158.52
c. Laspeyres’ price Index = 147.09
d. Paasche price index = 150.23
Explanation:
a. Determine the simple price indexes.
Simple price index = (Price of a good in the current / Price of the good in the base year) * 100 ……. (1)
Using equation (1), we have:
Item August 2000 August 2017
Price Quantity Price Quantity
Toothpaste simple price index = ($3.35 / $2.49) * 100 = 134.54
Shampoo simple price index = ($4.49 / 3.29) * 100 = 136.47
Cough drops = ($4.19 / 1.59) * 100 = 263.52
Antiperspirant = ($2.49 / $1.79) * 100 = 139.11
b. Determine the simple aggregate price index for the two years.
Simple aggregate price index = (Total of the current year’s prices of the four commodities / Total of the base year’s prices of the four commodities) * 100 = (($3.35 + $4.49 + $4.19 + $2.49) / ($2.49 + $3.29 + $1.59 + $1.79)) * 100 = 158.52
c. Determine Laspeyres' price index.
Laspeyres’ price Index = Cost of the base quantities of the four commodities at current prices / (Cost of the base quantities of the four commodities at base period prices) * 100 = ((($3.35 * 6) + ($4.49 * 4) + ($4.19 * 2) + ($2.49 * 3)) / (($2.49 * 6) + ($3.29 * 4) + ($1.59 * 2) + (1.79 * 3))) * 100 = 147.09
d. Determine the Paasche price index.
Paasche price index = Cost of the current quantities of the four commodities at current prices / (Cost of the current quantities of the four commodities at base period prices) * 100 = ((($3.35 * 6) + ($4.49 * 5) + ($4.19 * 3) + ($2.49 * 4)) / (($2.49 * 6) + ($3.29 * 5) + ($1.59 * 3) + ($1.79 * 4))) * 100 = 150.23
A simple interest calculation provides a useful estimate of what compound interest will be if________. a. the dollar amount is small, b. the dollar amount is large, c. the term is long, d. the term is short
Answer c. the term is long is the wrong answer
Answers
A simple interest calculation provides a useful estimate of what compound interest will be if the term is short (option d).
What is simple interest and compound interest?Simple interest is when the amount invested grows at a linear rate. When an amount earns a compound interest, the amount invested grows at an exponential rate. Thus, an account that earns a compound interest grows at a faster rate than an account that earns a simple interest.
The formula that can be used to determine the future value of an account when there is a simple interest is:
Future value = amount invested + interest earned
Interest earned = amount invested x time x interest rate
The formula that can be used to determine the future value of an account when there is a compound interest is:
FV = P(1 + r)^n
Where:
P = amount invested r = interest rate n = number of yearsIt is only in the first year that an account that earns a simple interest and an account that earns a compound interest would have the same value.
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What is a likely result of an increase in trade between nations?
O A. It will increase the cost of goods due to increased competition.
O B. It will restrict the market for domestic products.
O C. It will provide consumers with more choice at lower prices.
O D. It will lower the standard of living in the weaker trade nation.
Answers
Answer:
C
Explanation:
The prices will lower and the the amount of goods will increase
Direct Materials Variances De Soto Inc. produces tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 770 tablets during July. However, due to LCD defects, the company actually used 800 LCD displays during July. Each display has a standard cost of $12.50. Eight hundred LCD displays were purchased for July production at a cost of $9,400. Determine the price variance, quantity variance, and total direct materials cost variance for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Price variance$fill in the blank 1 Quantity variance$fill in the blank 3 Total direct materials cost variance$fill in the blank 5
Answers
Answer:
Please see below
Explanation:
1. In order to calculate the Direct material price variance , we would have to use the formula below ;
Direct material price variance
= (Standard price - Actual price) × Actual quantity purchased
= ($12.5 - Actual cost) × 800
= $12.5 × 800 - $9,400
= $10,000 - $9,400
= $600 favourable
2. In order to calculate the direct material quantity variance, we would make use of the formulae below
Direct material quantity variance
= (Standard quantity - Actual quantity) × Standard price
= (770 - 800) × $12.5
= $375 unfavorable
3. The total direct material cost variance for July
= Direct material price variance + Direct material quantity variance
= $600 - $375
= $225 favourable
Select the correct text in the passage.
Which sentences in the passage describe the correct method of inventory planning?
Austin and Carter are managers in different warehouses. Austin plans his inventory such that he can have as large a stock of raw materials, work-in-process (WIP), and finished goods as possible. Carter plans his inventory so that the optimum quantity of raw materials, WIP, and finished goods allow for the smooth movement of
materials at each stage of production. Austin incurs a high inventory storage cost. Carter manages to keep the inventory storage cost low.
Answers
The sentences in the passage that describes the correct method of inventory planning is -Austin plans his inventory such that he can have as large a stock of raw materials, work-in-process (WIP), and finished goods as possible.
Carter plans his inventory so that the optimum quantity of raw materials, WIP, and finished goods allow for the smooth movement of materials at each stage of production.
What is inventory planning?Inventory planning is the process of determining the best quantity and timing of inventory to match sales and production capacity. Inventory management has an impact on a company's cash flow and profits while also contributing to an efficient supply chain.
Inventory planning assists businesses in purchasing the appropriate amount of stock and determining how frequently to reorder. Inventory planning reduces the costs of keeping items in stock while also ensuring that there is enough stock for making and selling items. Inventory planning is an important component of supply chain management.
Therefore, the first two sentences describe the correct method of inventory planning followed by Austin and Carter.
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Which of the following provides the best answer to the interview question, "What motivates you?"
"I'm most motivated when I get along well with my co-workers and enjoy a positive, engaging, and entertaining work environment."
"I'm most motivated when I know that the position I hold is secure and the salary and benefits package offered to me are fair for the job."
"I'm most motivated when I'm in a challenging and positive work environment, no matter the task. I like to be part of something bigger than myself."
"I'm most motivated when working under pressure. As a matter of fact, the more stress I'm under the more likely I am to rise to the occasion."
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"I'm most motivated when I get along well with my co-workers and enjoy a positive, engaging, and entertaining work environment." the following provides the best answer to the interview question
What is the environment?The environment can be defined as a sum absolute of all the realistic and non-living atmospheric condition and their effects that influence human life. While all living or biotic elements are animals, plants, forests, fisheries, and birds, non-living or abiotic weather conditions include water, land, sunshine, rocks, and air.
An interview is an organized dialogue in which one person asks questions and the other responds. The term “interview” is commonly used to refer to a one-on-one talk between an interviewer and an interviewee. Individual and group interviews are the two forms of interviews. Interviews with individuals:
Therefore, Thus option (A) is correct.
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