The quantity demanded will increase by 2 percent and total expenditures on bread will fall. Therefore option 3 would be the correct answer.
The quantity of a good that consumers are willing and able to buy at different prices during a specific time is known as demand in economics. The demand curve is another name for the relationship between price and quantity demand. The perceived need for a product, its price, its perceived quality, its convenience, the alternatives that are offered, the buyers' disposable income and preferences, among many other factors, determine its demand.
An expenditure is a payment made in cash or on a credit card to buy goods or services. Unlike an expense, which is recorded in a period when it has been used up or expired, it is recorded at a single point in time (the time of purchase). The various types of expenses used in accounting and finance will be covered in this guide.
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profast technologies makes and sells only one product, a high-quality server for secure cloud storage. profast was recently approached by digital territory, a large data warehouse that rents server space to commercial customers, about purchasing their company. digital territory is engaging in
Pro fast was recently approached by digital territory, a large data warehouse that rents server space to commercial customers, about purchasing their company. digital territory is engaging in vertical integration. The answer is OPTION C.
Vertical integration is a business strategy in which a firm has control over various supply chain and manufacturing stages. Businesses that are vertically integrated can lessen or do away with the need to depend on external parties for things like production and transportation.
Three kinds of vertical integration are distinguished: balanced vertical integration, backward (upstream) vertical integration, and forward (downstream) vertical integration. (both upstream and downstream). The term "vertical integration" in economics refers to a business strategy where a firm owns two or more significant supply chain stages.
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trade barriers are group of answer choices restrictions on exports. the lack of incentives and subsidies to stimulate exports. restrictions on imports. the lack of incentives and subsidies to stimulate imports.
Trade barriers are the restrictions on imports and exports, thus the correct answer is restrictions on imports.
What are trade barriers?Trade barriers refer to the measures and policies that restrict or obstruct international trade by controlling the flow of goods, services, and capital between countries. Trade barriers include various types of restrictions on imports and exports, such as tariffs, quotas, subsidies, embargoes, and standards.
They are designed to protect domestic industries, promote local production, and reduce imports.Trade barriers have a significant impact on international trade and can affect economic growth, employment, and consumer prices.
Therefore, countries are encouraged to reduce trade barriers and promote free trade to increase economic efficiency and competitiveness.
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isabella pays $500 each month in after tax dollars for health insurance premiums. she is not self-employed. during the current year, she also incurred $200 in doctor bills and $50 in over-the-counter medications. her agi is $45,000. what amount will she be able to deduct as an itemized deduction after the agi floor is applied? multiple choice question. $2,825 $6,200 $0 $1,700 $4,500
The sum she can deduct as an organized derivation after the AGI floor is applied is $1700. option (C) is correct.
Monthly health tax = $500
Total for the year = $500 × 12 = $6000
Doctor bills = $200
AGI = $45,000
Citizens younger than 65 can't deduct clinical costs until they surpass 10% of Changed Gross Income(AGI), which is determined as the contrast between the Absolute Gross Pay and a few deductibles.
Isabella is 50 and can deduct clinical costs when they surpass 10% of AGI.
All out clinical costs = $6000 +$200 = $6200
10% of AGI = 45,000 × 0.1 = $4500
In this manner, Well-being costs are over 10% AGI.
Accordingly, organized derivation;
$6200 - $4500 = $1700. Therefore option (C) is correct.
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This question is not complete, Here I am attaching the complete question:
Isabella pays $500 each month in after tax dollars for health insurance premiums. she is not self-employed. during the current year, she also incurred $200 in doctor bills and $50 in over-the-counter medications. her agi is $45,000. what amount will she be able to deduct as an itemized deduction after the agi floor is applied? multiple choice question.
(A) $2,825
(B) $6,200
(C) $1,700
(D) $4,500
true or false: without knowing the future, it is not obvious which cost structure is better: a structure with higher fixed costs and lower variable costs or a structure with lower fixed costs and higher variable costs. true false question. true false
True, without knowing the future, it is not obvious which cost structure is better. This is because the choice of structure will depend on the forecasted sales and production volumes, as well as the expected prices and cost of inputs.
For example, if the forecast shows that sales and production volumes will be low, a structure with higher fixed costs and lower variable costs may be preferable. This is because, with a fixed cost structure, the fixed costs are spread out over a larger number of units and therefore the cost per unit is lower.
On the other hand, if the forecast shows that sales and production volumes will be high, then a structure with lower fixed costs and higher variable costs may be preferable, as this would reduce the fixed costs per unit and therefore increase the profit margin. Therefore, without knowing the future, it is impossible to know which cost structure would be best.
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you are assigned to select a new 5hp motor for an industrial facility. the motor will operate at essentially rated load for two shifts a day, five days a week. you have a couple of options, a nepact motor with an efficiency of 88.2% and a cost of $235 or a nema premium motor with an efficiency of 90.5% and a cost of $320. power costs a $0.10/kwh. how long is the payback period for the higher efficiency motor? what would be the cost savings over the 20-year life of the motor?
The payback period for the higher efficiency motor (nema premium motor) is 0.71 years, and the cost savings over its 20-year life is $2392.
To calculate the payback period for the higher efficiency motor and the cost savings over its 20-year life, you can use the following formula:
Payback period = (Motor cost difference) / (Savings from higher efficiency motor)
Savings from higher efficiency motor = (Power costs) x (Hours of operation) x (Difference in efficiency)
Using the data provided, we can calculate the following:
Motor cost difference = $320 - $235 = $85
Power costs = $0.10/kWh
Hours of operation = 2 shifts a day * 5 days a week * 52 weeks a year = 520 hours/year
Difference in efficiency = 90.5% - 88.2% = 2.3%
Therefore, Savings from higher efficiency motor = $0.10/kwh * 520 hours/year * 2.3% = $119.6/year
Payback period = $85/$119.6/year =0.71 years
Cost savings over 20 years = $119.6/year * 20 years = $2392
Thus, the payback period for the higher efficiency motor is 0.71 years, and the cost savings over its 20-year life is $2392.
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in a limited partnership (keeping in mind our discussion of the grand rapids b.o.b.), who assumes unlimited personal liability for the debts of the limited partnership? general partners limited partners special partners general partners, limited partners, and special partners general partners, special partners, but not limited partners
Limited partners are restricted to investors. - Don't run the company. - are exempt from debt liability. By law, limited partners who do so become general partners.
Who in a limited partnership is individually responsible?Nonetheless, in a limited partnership, the general partners are still individually accountable for the debts of the partnership. In order to establish a limited partnership in California, certain registration requirements must be satisfied.
In a limited partnership, does the general partner have unrestricted liability?Each general partner is totally responsible for the company's debts. Each limited partner's liability is capped at his capital investment in the company. Each general partner is a representative of the limited partnership and has the authority to administer the company.
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what is the present value of $6,000 to be paid at the beginning of each of the next eight periods assuming an interest rate of 10%? multiple choice $35,211 $75,477 incorrect $68,615 $32,010
With an interest rate of 10%, the present value of $6,000 to be paid at the start of each of the next eight periods is $32,156.
To calculate the present value of a series of payments, we can use the formula:
[tex]PV = PMT *[1 - (1 + r)^{-n}] / r[/tex]
where:
PMT = the amount of each payment
r = the interest rate per period
n = the total number of periods
In this case, PMT = $6,000, r = 10%, and n = 8. Plugging in these values, we get:
[tex]PV = $6,000 * [1 - (1 + 0.10)^{-8}] / 0.10\\PV = $6,000 * (1 - 0.4632) / 0.10\\PV = $6,000 * 5.3659\\PV = $32,156[/tex]
Therefore, the present value of $6,000 to be paid at the beginning of each of the next eight periods, assuming an interest rate of 10%, is $32,156. The closest option to this answer is $32,010.
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1. currently, the most significant federal budget expenditures are retirement social security and medicare (42%), social programs (22%), and national defense (22%). do you agree with that distribution, yes or no? explain using no more than 32 words. 2. mention one (1) advantage that supports your answer
1. Yes, I agree with that distribution because it prioritizes the needs of the elderly, the poor, and national security while maintaining fiscal sustainability.
2. The advantage of this distribution is that it ensures that the federal government fulfills its obligations to its citizens while keeping the budget under control.
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the japan airlines ceo's behavior has been unordinary according to usual industry practices. he doesn't have a corporate jet, as many ceo's do. he also knocked down his office walls and takes a bus to work. what device is haruka nishimatsu trying to exemplify and mold? a.work ethic b.corporate governance c.environmental awareness d.organizational culture
d. organizational culture. Former Japan Airlines CEO Haruka Nishimatsu has a distinct set of principles that represent his vision for the company's culture. His actions, which are contrary to industry norms,
an attempt to shape the company's organizational culture. Nishimatsu's choice to forego a corporate jet, break down his office walls, and go by bus demonstrates his devotion to environmental awareness and a straightforward work ethic. Nishimatsu promotes the principle of austerity and humility throughout the organization by rejecting the opulent lifestyle that is commonly associated with corporate leadership. This leadership style is likely to have a favorable influence on employees' general work ethic and productivity. Additionally, Nishimatsu's efforts show a dedication to corporate responsibility.
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you are considering the introduction of a new product that will require an investment in new machinery. which one of these will lower the net present value of that project? group of answer choices a reduction in the firm's total variable costs due to the purchase of the new machine a loss of sales of existing products due to the introduction of the new product the increase in annual depreciation resulting from the asset purchase the sale of the machine after it is fully depreciated g
The introduction of a new product that will require an investment in new machinery will lower the net present value of that project due to a loss of sales of existing products due to the introduction of the new product. The correct answer is option c.
What is net present value?Net present value (NPV) is a standard method for assessing a long-term capital investment. It's utilized to assess the present value of expected cash inflows and outflows over time. The net present value is the present value of cash inflows minus the present value of cash outflows.
A positive net present value indicates that the present value of cash inflows is greater than the present value of cash outflows. A negative net present value indicates that the present value of cash inflows is less than the present value of cash outflows. It indicates that an investment is not expected to earn its required rate of return.
What will lower the net present value of the project?The loss of sales of existing products due to the introduction of the new product will lower the net present value of the project because it represents a reduction in cash inflows.
The net present value of the project is decreased as a result of this. When considering the introduction of a new product that requires an investment in new machinery, this factor should be taken into account.
Thus, the correct answer is option c.
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Complete Question
you are considering the introduction of a new product that will require an investment in new machinery. which one of these will lower the net present value of that project? group of answer choices
a. reduction in the firm's total variable costs due to the purchase of the new machine
b. a loss of sales of existing products due to the introduction of the new product
c. the increase in annual depreciation resulting from the asset purchase the sale of the machine after it is fully depreciated g
what retail strategy has the objectives of building a data warehouse that links customer data to their transactions and encouraging repeat purchase behavior and loyalty?
Frequent-shopper programs, is a retail strategy has the objectives of building a data warehouse that links customer data to their transactions and encouraging repeat purchase behavior and loyalty.
It fulfil two basic goals:
(1) create a customer data warehouse that connects consumers to transactions; and (2) promote repeat purchase and loyalty.Hence, answer is Frequent Shopper Program.
Are frequent shopper programmes expensive to administer and implement?The implementation and administration of frequent-shopper programmes are costly.
Transparent frequent-shopper programmes are successful. Consumers in the platinum market attach higher importance on a product's pricing. The term "1-to-1 retailing" refers to creating retail strategies for individuals or small groups of clients.
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a preferred stock from dlc pays $5.10 in annual dividends. if the required return on the preferred stock is 12.1 percent, what is the value of the stock?
The value of the stock = $42.14876 rounded off to $42.14
A perpetuity is an endless succession of constant-amount cash flows that happen at regular intervals. We refer to them as perpetual because there is no limit to the number of them. Because perpetual preferred stock pays a constant dividend at regular periods, it can also be considered to be in the form of a perpetuality. We employ the present value of perpetuity formula, which is, to determine the price of the preferred shares.
the required return on the preferred stock = 12.1 percent
a preferred stock from dlc pays = $5.10 in annual dividends
PV is equal to cash flow divided by r.
Where,
r is the required rate of return
PV = 5.1 / 0.065
Hence, the value of the stock = $42.14876 rounded off to $42.14
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g will a country, with a lot of natural resources, certainly have a high gdp per person? no, because there are other determinants of productivity no, because natural resources do not affect productivity yes, because it is the only determinant of productivity yes, because it is the main determinant of productivity
a country, with a lot of natural resources, certainly have a high gdp per person yes, because it is the main determinant of productivity
The most commonplace indicator used to measure and examine economic overall performance is Gross domestic Product (GDP). It looks at profits, however says not anything about wealth and assets that underlie this earnings. for instance, the exploitation of mineral assets increases GDP but certainly depletes the wealth of any given united states of america.herbal assets have a double-edge effect on financial boom, in that the intensity of its use increases output, but increases its depletion rate. natural resource is a key enter within the manufacturing method that stimulates monetary increase
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in his first state of the union speech in january 2010, president obama proposed a tax credit for small businesses and tax incentives for all businesses that invest in new plant and equipment. the anticipated effect of these proposals on aggregate demand is
In his first State of the Union speech in January 2010, President Obama proposed a tax credit for small businesses and tax incentives for all businesses that invest in new plant and equipment. The anticipated effect of these proposals on aggregate demand is an increase.
These tax incentives are designed to encourage businesses to invest more in capital goods, such as machinery, equipment, and new facilities. As businesses increase their investment spending, this leads to a direct increase in aggregate demand, as investment is one of its component . Moreover, when businesses expand their operations and enhance their productive capacities, it can lead to job creation and higher employment levels.
As more people become employed, their disposable income rises, leading to higher consumption spending. Consumption is the largest component of aggregate demand, so an increase in consumption would further contribute to the rise in aggregate demand. Additionally, increased business investment can lead to technological advancements and increased productivity, which can stimulate economic growth in the long term.
Overall, President Obama's proposals aim to boost aggregate demand by encouraging business investment and promoting job creation, ultimately leading to increased consumption and economic growth.
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today's gdp in country c is $456,987. the economy grows at a rate of 1% every year. what will country c's gdp be in 10 years? round your answer to the nearest whole number.
The country C's GDP be in 10 years $504635.
The economy grows at a rate of 1% every year, we need to calculate what will country C's GDP be in 10 years.
Using the formula of compounding annual growth rate, which is given by
FV = PV × [tex](1 + r)^n[/tex]
Where,
FV = Future Value PV = Present Value r = Rate of interestn = Number of years
We know that
PV = $456,987
r = 1% = 0.01n = 10 years
Substituting the given values in the above formula, we get
FV = 456987 × (1 + 0.01)10
= 456987 × 1.104622
= 504,635.47
Therefore, country C's GDP will be $504,635.47 in 10 years when rounded off to the nearest whole number.
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What are some precautions one should take in reading the Employment Situation Report for a given month?
-The implication of the unemployment rate regarding slackness in the labor market is not entirely clear, as estimates of the natural rate of unemployment vary somewhat over time.
-Because revisions to the nonfarm employment estimate can be substantial, one shouldn't read too much into the number for any one month.
-Since the report is issued by the federal government, the job numbers are often manipulated by officials for partisan gain and so should be taken with a grain of salt.
- Changes in total nonfarm employment are volatile, so one should focus less on one month's number than on an average over several months.
The readers should be careful to avoid drawing broad conclusions from one month's worth of data.
What are some precautions one should take in reading the Employment Situation Report for a given month?The Employment Situation Report for a given month is released by the US Bureau of Labor Statistics every month. Here are some precautions one should take when reading the Employment Situation Report for a given month:
1. Changes in total nonfarm employment are volatile, so one should focus less on one month's number than on an average over several months.
2. Because revisions to the nonfarm employment estimate can be substantial, one shouldn't read too much into the number for any one month.
3. The implication of the unemployment rate regarding slackness in the labor market is not entirely clear, as estimates of the natural rate of unemployment vary somewhat over time.
4. Since the report is issued by the federal government, the job numbers are often manipulated by officials for partisan gain and so should be taken with a grain of salt.
The Employment Situation Report is a crucial source of data for assessing the state of the US economy.
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why is it believed that japanese companies prefer the payback period over the discounted cash flow methods for evaluating capital investment alternatives? multiple choice it is consistent with their corporate strategy of investing in new technology. japanese companies compete using very short product life cycles. all of the above cash flows over a long period of time are difficult to predict with much accuracy.
None of the options provided fully explains why Japanese companies prefer the payback period over the discounted cash flow methods for evaluating capital investment alternatives.
However, one possible reason is that Japanese companies tend to have a long-term perspective on investments and focus on building stable, long-term relationships with suppliers and customers. Therefore, the payback period, which measures the time it takes for an investment to generate enough cash flows to recover its initial cost, may be more attractive to them as it allows them to evaluate the investment's profitability in the short term and make decisions accordingly. Furthermore, the discounted cash flow methods may be less relevant in a low-interest-rate environment, which is characteristic of Japan.
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choose the correct word to complete the sentence. when sensitivity and formality are essential in a message being sent outside the organization, the best channel to use is a . business letters are a primary channel of communication for delivering messages to recipients outside of an organization. they are powerful tools that can project a positive image of your company, encourage product feedback, and promote future business. when are business letters necessary? check all that apply. persuasive, well-considered presentation is important. recipients are located in another country. sensitivity is inconsequential. confidentiality is paramount. information requires fact checking
When sensitivity and formality are essential in a message being sent outside the organization, the best channel to use is a business letter.
Business letters are a primary channel of communication for delivering messages to recipients outside of an organization. They are powerful tools that can project a positive image of your company, encourage product feedback, and promote future business.
What are some instances where business letters are necessary?Check all that apply:
A persuasive, well-considered presentation is important. Recipients are located in another country. Confidentiality is paramount.The information requires fact-checking. Business letters are used when sensitivity and formality are essential in a message being sent outside the organization.
It is important to select the right communication channel to deliver a message. Business letters can be used in situations where recipients are located in other countries , persuasive, well-considered presentation is important, confidentiality is paramount, and information requires fact-checking.
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oriel and jane, husband and wife, operate a sole proprietorship. they expect their taxable income next year to be $450,000, of which $250,000 is attributed to the sole proprietorship. orie and jane are contemplating incorporating their sole proprietorship. using the married-joint tax brackets and the corporate tax rate in tax rates at the end of the book, find out how much current tax this strategy could save oriel and jane. how much income should be left in the corporation
Oriel and Jane's taxable annual income is $450,000, and $250,000 of it comes from their sole proprietorship. Oriel and Jane are considering incorporating their sole proprietorship. An amount of $289,500 should be left in the corporation.
Determine the amount of tax savings this plan might provide Oriel and Jane using the married-joint tax brackets and the corporate tax rate in tax rates at the end of the book. The tax rate applicable to married-joint income of $450,000 is 24%.Oriel and Jane's taxable income is $250,000 after the incorporation of the sole proprietorship.The company's taxable income is $250,000 as well. Since the company is incorporated, its tax rate is 21%.The tax paid by Oriel and Jane as a married couple with taxable income of $450,000:0.24*450000 = 108000The tax paid by the company with taxable income of $250,000:0.21*250000 = 52500Total tax paid: 108000 + 52500 = 160500Tax saved by the strategy: 450,000 - 160,500 = 289,500 dollars.If the retained earnings of a corporation exceed $250,000, the corporate tax rate will rise to 35%, so $250,000 should be left in the corporation.Oriel and Jane could save 289,500 dollars by incorporating their sole proprietorship.Learn more about proprietorship here: https://brainly.com/question/12913114
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a sales associate has decided to concentrate on trying to obtain listings from a particular neighborhood. the associate believes this should increase knowledge of the market and improve the likelihood of success. which term refers to approach to the real estate business?
This approach to the real estate business is known as "farming." It involves focusing your marketing efforts on a specific geographic area in order to become an expert in the local market.
By building relationships with buyers, sellers, and other professionals in the area, real estate agent can deepen their knowledge of the local market and better serve their clients.
Farming also allows the agent to become the go-to real estate professional in the area, increasing their visibility and chances of obtaining listings.
Farming involves the use of targeted marketing such as direct mail, print advertising, social media campaigns, networking events, and more. By focusing their efforts on one specific area, a real estate agent can maximize their chances of success.
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households receive their income in the circular flow diagram by selling the goods they produce at home. selling resources they own to business firms. selling the use of their property. obtaining dividends and interest payments.
Households receive their income in the circular flow diagram by selling the use of their property.
The circular flow model of the economy is a concept that depicts how money flows through the economy, from households to businesses and government agencies and back again. Households and businesses are the two main agents in this system, which work together to keep the economy running.
Households are considered the source of economic activity, as they provide the resources required to generate goods and services. They receive income in exchange for their labor and resources, which they then use to purchase goods and services produced by businesses.
In the circular flow model, households receive their income in the form of rent, wages, and profits. They also receive interest and dividends from investments made in stocks and bonds.
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consider the following financial statement information for the newk corporation: item beginning ending inventory $ 12,435 $ 15,615 accounts receivable 6,120 6,287 accounts payable 7,930 9,140 credit sales $ 143,187 cost of goods sold 79,218 calculate the operating and cash cycles.
Newk Corporation's operating cycle is 82.76 days, and the cash cycle is 39.42 days.
The operating cycle refers to the time required to purchase inventory, produce or sell goods, and collect payment for sales. The cash cycle is the time between paying for inventory and receiving payment for sales. Newk Corporation's operating cycle and cash cycle are to be calculated from the provided financial statement information.
The operating cycle is calculated using the following formula: Operating cycle = Inventory period + Receivables period.
Inventory period = (Average inventory ÷ Cost of goods sold) × 365 days
Inventory period = (($12,435 + $15,615) ÷ 2 ÷ $79,218) × 365 days
Inventory period = 66.75 days
Receivables period = (Average accounts receivable ÷ Credit sales) × 365 days
Receivables period = (($6,120 + $6,287) ÷ 2 ÷ $143,187) × 365 days
Receivables period = 16.01 days
Operating cycle = Inventory period + Receivables period
Operating cycle = 66.75 days + 16.01 days
Operating cycle = 82.76 days
The cash cycle is calculated using the following formula:
Cash cycle = Operating cycle − Payables period.
Payables period = (Average accounts payable ÷ Cost of goods sold) × 365 days
Payables period = (($7,930 + $9,140) ÷ 2 ÷ $79,218) × 365 days
Payables period = 43.34 days
Cash cycle = Operating cycle − Payables period
Cash cycle = 82.76 days − 43.34 days
Cash cycle = 39.42 days
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what is forbidden to collect from new hampshire’s beaches at night?
In New Hampshire, it is forbidden to collect or possess marine species, such as lobsters, crabs, and certain types of fish, from the state's beaches at night.
In New Hampshire, it is forbidden to collect any of live organisms, such as clams, mussels, and lobsters, as well as any dead shellfish or other marine life that may have washed up on the beach.
The purpose of this regulation is to protect the ecosystem of the state's beaches and to ensure that marine life is not overexploited or damaged by over-harvesting.
This regulation helps to prevent disturbance to the natural habitat and breeding areas of marine species, which is especially important during the breeding season.
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list two things the federal government spends your tax dollars on that you benefit from?
Answer:
Social Security and Medicare
Explanation:
Federal government spending pays for everything from Social Security and Medicare to military equipment, highway maintenance, education, and more. In 2022, the federal government spent the most on Social Security.
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Morton Company's contribution format income statement for last month is given below: The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits. Required: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $7.20 per unit. However, fixed expenses would increase to a total of $544,320 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. (Round your "Per unit" answers to 2 decimal places.) Morton Company
Contribution Income Statement
Present Proposed
Amount Per Unit % Amount Per Unit % ________ ________ ___ ________ ________ ___
2. Refer to the income statements in (1) above. For both present operations and the proposed new operations, compute a. The degree of operating leverage.
Present Proposed
Degree of operating leverage ________ ________ b. The break-even point in dollar sales. Present Proposed
Break-even point in dollar ________ ________ c. The margin of safety in both dollar and percentage terms. Present Proposed
Margin of safery in dollar ________ ________
Margin of safery in percentage ________ ________
3. Refer again to the data in (1) above. As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are available to make the purchase.) - Performance of peers in the industry
- Cyclical movements in the economy
- Stock level maintained
- Reserves and surplus of the company
4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager claims this new approach would increase unit sales by 50% without any change in selling price; the company's new monthly fixed expenses would be $302,400. and its net operating income would increase by 25%. Compute the break-even point in dollar sales for the company under the new marketing strategy.
New break even point in dollar sales ____
1. Net operating income is 60,480
2. Degree of operating leverage is 5 , 10
3. The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Option B is correct.
4. New break even point in dollar sales is $1,209,600.
1. Per unit calculation = amount/number of units
⇒ = amount/42,000
⇒ Current variable expenses = $16.80 per unit. New variable expenses ⇒ = 16.8 - 7.20 = 9.60 per unit.
⇒ Total variable expenses = amount per unit * total number of units
⇒ = 9.60*42,000 = $403,200
% are shown as % of sales [Solved in chart(attached image)]
Net operating income = 60,480
2. Degree of operating leverage = Q*(P-V)/Q*(P-V)-F
Present: 42,000*(24-16.8)/42,000*(24-16.8) - 241,920
⇒ = 302,400/302,400-241,920
⇒ = 302,400/60,480
⇒ = 5
Proposed: 42,000*(24-9.60)/42,000*(24-9.60) - 544,320
⇒ = 604,800/60,480
⇒ = 10
b. Break even point = Fixed cost/(unit price-variable unit cost). This formula will give us break even in units. Break even in $ terms will be breakeven in units*price per unit
Present: 241,920/(24-16.8)
⇒ = 33,600 units.
⇒ Breakeven in $ sales = 33600*$24
⇒ = $806,400
Proposed: 544320/(24-9.60)
⇒ = 37,800 units.
Breakeven in $ sales = 37800*$24
⇒ = $907,200
c. Margin of safety = the amount of sales that are above the break-even point
⇒ Present: Margin of safety in $ = sales - breakeven
⇒ = 1,008,000 - 806,400
⇒ = $201,600
in % = margin of safety in $/actual sales
⇒ = 201600/1008000
⇒ = 20%
Proposed: Margin of safety in $ = sales - breakeven
⇒ = 1,008,000 - 907,200
⇒ = $100,800
in % = margin of safety in $/actual sales
⇒ = 100800/100800
⇒ = 10%
3. As a manager, the factor that would be paramount in my mind in deciding whether to purchase the new equipment would be the cyclical movements in the economy. As the new equipment is resulting in a higher contribution margin, cyclical movements of the industry would be paramount. Morton Company would stand to gain only if the volumes are very high to offset the increased fixed costs. Option B is correct.
4. Price per unit = 24.
⇒ New sales = 42,000 units*1.5
⇒ = 63,000 units.
sales in $ = 63,000*24
⇒ = 1,512,000.
⇒ Fixed expenses = 302400.
⇒ Net operating income = 60480*1.25
⇒ = $75,600
⇒ Now, sales - variable expenses - fixed expenses = net operating income
or
⇒ 1,512,000 - variable expenses - 302,400 = 75,600
or
⇒ variable expenses = $1,134,000.
⇒ Variable costs per unit = 1,134,000/63,000 = $18
Thus breakeven in units = 302400/(24-18)
⇒ = 50,400 units.
Thus breakeven in $ sales = 50,400 units*$24
⇒ = $1,209,600
Therefore, the company needs to carefully consider the costs and benefits of purchasing the new equipment before making a decision.
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which of the following is an attribute of a successful acquisition? a. merged firm maintains moderate to high debt position b. acquisition is unfriendly c. acquiring firm conducts ineffective due diligence to select target firms and effectively evaluate the target firms' health d. acquiring firm has financial slack
Option (d), An indicator of a successful acquisition is the purchasing company's financial flexibility.
What factors indicate whether a purchase was successful?The two primary criteria of success are the price of the acquisition and the value produced. Particularly when taking over publicly listed companies is involved, too many acquisitions fall short of these conditions. Be cautious until there are strong tactical and financial arguments to the contrary.
How is the financial adaptability of a corporation assessed?Free cash flow is a measure of a company's capacity to adjust its finances. A company's ability to respond to investment opportunities like strategic acquisitions increases with the amount of free cash flow it produces.
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an organization wants to use disciplined agile to improve the effectiveness and efficiency of the product development process, reduce waste, and deliver products faster to the market. which disciplined agile layer should the organization focus on to meet these requirements?
To improve the effectiveness and efficiency of the product development process, reduce waste, and deliver products faster to the market using Disciplined Agile, the organization should focus on the Process layer.
The Process layer of Disciplined Agile provides guidance on how to optimize the development process to increase efficiency, reduce waste, and deliver value faster. This layer includes process goals and decision points that help teams choose the right development approach and adapt it to their specific needs.
By focusing on the Process layer, the organization can identify and eliminate inefficiencies in the product development process, streamline workflows, and improve collaboration between team members. This can help to reduce waste and deliver products to market faster.
In addition, the Process layer provides guidance on how to continuously improve the development process over time, through regular retrospectives and feedback loops. This can help the organization to continuously adapt and improve its processes to meet changing market conditions and customer needs.
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briefly explain what mortgage backed securities are and how they were used to draw more investors into the market.
Mortgage-backed securities (MBS) are investment instruments backed by mortgages.
These securities can be backed by a single mortgage, a pool of mortgages, or a group of mortgage-backed securities. In the United States, these securities are commonly known as mortgage-backed securities.
They were used to attract more investors into the market, as they are designed to make investing in mortgages more accessible and efficient.Investors in mortgage-backed securities, or MBS, receive payments from borrowers' interest and principal payments.
Mortgage-backed securities are also tradable, making them an attractive investment option for a variety of investors.In the early 1980s, mortgage-backed securities became popular in the United States as a way to finance home purchases.
Many investors were attracted to the high returns and low risk associated with these securities. The investors were drawn to the market because it provided higher yields than traditional government or corporate bonds with the same credit rating.
The securitization of mortgages also helped to increase the number of mortgages available in the market, providing more liquidity and making it easier for borrowers to obtain a loan. The increase in liquidity was good for the mortgage industry as a whole, as it allowed lenders to lend more money and for longer periods.
The MBS market has evolved since its inception in the 1980s. There are now many types of MBS, including those backed by government-sponsored entities such as Fannie Mae and Freddie Mac, and those backed by private investors.
The market has also expanded to include commercial mortgage-backed securities (CMBS), which are backed by commercial real estate mortgages.
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to organize its salesforce, cascade maverik divides its market into territories. given this salesforce structure, laura edward would be considered a
To organize its salesforce, Cascade Maverik divides its market into territories. Given this salesforce structure, Laura Edward would be considered a geographic salesperson. Option C is correct.
A geographic salesperson is a sales professional who is responsible for selling products or services within a specific geographic region. They are typically assigned a territory and are expected to establish and maintain relationships with customers in that area. The geographic region may be defined by state, city, or even a specific set of ZIP codes.
The primary responsibility of a geographic salesperson is to generate revenue by selling products or services to customers within their assigned territory. They may also be responsible for identifying new business opportunities, providing product demonstrations, and negotiating contracts. Successful geographic salespeople have excellent communication and interpersonal skills, are self-motivated, and have a deep understanding of their products and industry. Hence, Option C is correct.
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The complete question is:
To organize its salesforce, Cascade Maverik divides its market into territories. Given this salesforce structure, Laura Edward would be considered a
a) sales manager.b) field support assistant.c) geographic salesperson.d) customer service rep.e) consulting salesperson.build a one-variable data table to show the sensitivity of npv to changes in the value of wacc. what does this tell you?
To build a one-variable data table to show the sensitivity of NPV to changes in the value of WACC, we can follow the below steps: Enter the given input values of WACC and initial investment, NPV formula.
Set up a one-variable data table in a new worksheet in the following way:
a. Copy the value of the initial investment to the first column.
b. Copy the WACC input values to the first row.
c. Enter the NPV formula in the table cells.
The table will show the sensitivity of NPV to changes in the value of WACC. We can observe how different values of WACC impact the NPV of the investment. This information is useful to make investment decisions that involve calculating NPV. To learn how to build a one-variable data table to show the sensitivity of NPV to changes in the value of WACC, we can refer to the following steps:
Enter the values for the variables WACC and initial investment, and the NPV formula into a blank worksheet. Create a one-variable data table in a new worksheet that lists different values for the WACC variable in one column. In the second column of the data table, copy the formula cell by clicking on it and dragging it down the entire length of the data table. Alternatively, we can also use the cell reference feature to link the data table to the NPV formula. Set the data table so that it automatically recalculates whenever the value of WACC changes. We can do this by using the "What-If Analysis" tool under the "Data" tab on the ribbon.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used to evaluate the profitability of an investment or project. If the NPV is positive, then the investment is profitable, whereas if the NPV is negative, the investment is not profitable.
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