Answer:
PV= $9,626.49
Explanation:
Giving the following information:
Cash flow= $1,500
Interest rate= 9%
Number of years= 10
First, we will determine the future value, using the following formulas:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {1,500*[(1.09^10) - 1]} / 0.09
FV= $22,789.395
Now, the present value:
PV=FV/(1+i)^n
PV= 22,789.395/(1.09^10)
PV= $9,626.49
Fixed vs variable cost preference. bates operates a kiosk at a local mall, selling duck calls for $30 each. the variable cost to make a duck call is $18. a new mall is opening where bates wants to locate a new kiosk. the mall operator offers the following two options for bates: 1. paying a fixed rent of $15,000 a month, or: 2. paying a fixed rent of $9,000 per month plus 10% of revenue earned from each duck call, the amount of monthly sales (in units) at which bates would be indifferent as to which plan to select is: a) 1,900 b) 2,000 c) 1,500 d) 1,600
Answer:
b) 2,000
Explanation:
sales price = $30
10% from each sale = $3
the amount of rent paid as a percentage of sales = $15,000 - $9,000 = $6,000
the indifference point in units = $6,000 / 10% revenue margin = $6,000 / $3 = 2,000 units
If Bates sells less than 2,000 units, then he should prefer option 2, but if he sells more than 2,000 units, then option 1 is better for him.
when drawing from mcgregor's x-y theory and the carrot and stick approach, which of the following take a more positive approach and show better chances (though never guaranteed) of retaining and motivating employees?
Answer:Theory Y managers and the carrot approach
Explanation:n.a
LEONE COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit General and administrative expenses Selling expenses Net income $ 84,000 84,000 92.000 $ 3,251,000 $ (8,000) 3,259,000 127.000 603,000 2,529,000
How do you find the cost of goods manufactured?
The cost of goods manufactured (COGM) is the cost of all the products that a company has manufactured during a period.
How to calculateIt is calculated by adding the beginning finished goods inventory to the total manufacturing costs, and then subtracting the ending finished goods inventory.
In the income statement you provided, the cost of goods manufactured is calculated as follows:
COGM = $92,000 + $3,251,000 - $127,000 = $3,224,000
Therefore, the cost of goods manufactured for Leone Company is $3,224,000.
Here is the formula for calculating COGM:
COGM = Beginning finished goods inventory + Total manufacturing costs - Ending finished goods inventory
The total manufacturing costs include direct materials, direct labor, and manufacturing overhead.
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If a person buys goods from a minor, he/she holds only voidable title to
those goods. *
True
False
Answer:
True
Explanation:
John Cotton is an employee at Radiance Senior Living. He received the following benefits from his employer during 2021 on the company’s location for company purposes:Personal protective equipment: $140 per monthEmployer-provided cell phone: $80 per monthMeals: $160 per month
What amount of these benefits is taxable for 2021?
The amount of these benefits that is taxable for 2021 is $1,680.
Benefits that is taxable for 2021The Benefits that is taxable for 2021 is Personal protective equipment of the amount of $140 per months.
Hence:
Taxable benefit=$140×12 months
Taxable benefit=$1,680
Therefore the amount of these benefits that is taxable for 2021 is $1,680.
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what is business ?please explain about it
Answer: business can be defined as an organization dedicated to do commercial and professional activities.
Explanation:
The word business can also be defined as the activities and efforts that a person makes in order to produce money. To do this, the person creates products or sells services to obtain a reward.
Currently, many people are taking the line of entrepreneurship, where they put their own businesses and become their bosses. They themselves develop their model of how they are going to distribute and market the products or services they have so that they reach the population.
The business is something that comes from ancient times. Barter was a way of doing business since if a person was interested in something that another had, they proceeded to make an exchange.
Identify the South African barriers to entry market share
Barriers to entry in South Africa include:
High startup costsLimited access to financingWhat are some barriers to entry ?Some industries in South Africa entail expensive start-up costs like procurement of equipment, infrastructure development or acquiring licenses which can be limiting for new entrants.
Several startups may encounter challenges in obtaining financial aid due to limited capital availability or stringent borrowing rules as well as exorbitant interest charges. The regulatory framework within the country is multifaceted and applies robust controls across a multitude of sectors that may be restrictive for businesses trying to establish themselves.
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camila who runs a custom-designed cake shop earns of revenue per year the economic rent in this case is
An amount of money gained that is greater than what is necessary for economic or social needs is known as economic rent. Here camila will have to pay annual rent
Amounts earned beyond what is required economically or socially are referred to as economic rent. This may happen, for instance, when a buyer makes an offer before learning the seller's suggested price in an effort to obtain an exclusive good or service. Economic rent thus rises as a result of market flaws; if markets were perfect, prices would fall due to competitive pressure.
The income that can be obtained from land or any natural resource for which there is a fixed supply or, as economists prefer to say, where the supply is perfectly inelastic is known as economic rent.
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A complete ban on trade with another country or a prohibition on trading specific types of products, services, or technology to another country called
An embargo is the partial or total prohibition of trade and commerce with a particular country/state or a group of countries.
Briefing:-The term "embargo" is derived from the Spanish word "embargo," which means hindrance, obstruction, etc. in a general sense, "trading ban" in trade terminology, and literally "distraint" in legal parlance.
What does a total prohibition on trading entail?Trade restrictions known as embargos are frequently used as economic sanctions by governments, groups of nations, or international organizations. Embargoes can prevent all trade or just some types of it, such imports of weapons.
Which trade restriction forbids or restricts trade between nations?Embargoes. Embargoes are situations in which one or more nations formally prohibit the commerce with another nation of certain commodities and services. This action may be taken by governments to further particular political or economic objectives.
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Question 1: Problem solving (14 Marks)
A handicraft products trader is selling leather cases for $40 the unit. To run his business, he needs to pay $10000 for rent, $5000 salaries, and another $5000 for marketing campaigns. The handicraft trader has the choice to import his products from different countries, and it will cost him $20 per unit if the product comes from China, $25 per unit if the product comes from India, and $15 per unit if the product comes from Malaysia.
Questions:
1. If the trader must choose to import his products from one country, then which country will it be? (3 Marks)
2. compute the trader’s profit if he sells 40 units imported from China and 50 units imported from India. (2 Marks)
Answer:
A handicraft products trader
1. The country to choose is Malaysia with the lowest variable cost.
2. Trader's profit under two scenarios:
China India Total
Sales revenue $1,600 $2,000 $3,600
Variable cost 800 1,250 2,050
Contribution $800 $750 $1,550
Fixed costs 20,000
Net loss $18,450
Explanation:
Selling price of leather cases = $40 per unit
Fixed costs:
Rent = $10,000
Salaries = $5,000
Advertising = $5,000
Total fixed costs = $20,000
Variable costs:
China = $20
India = $25
Malaysia = $15
Variable costs:
China = $800 ($20 * 40 units)
India = $1,250 ($25 * 50 units)
Ivan is upset because he feels that Yvette never listens to his ideas in meetings. In their last meeting he offered a suggestion, and Yvette responded by rolling her eyes and ignoring his comment. How should Ivan BEST approach Yvette and communicate with her to try to resolve this conflict?
A personal dialogue with Yvette asking why she never listens is the best first step to take. When the "why" is established, then using empathy and listening skills, Ivan can attempt to put himself in Yvette's shoes to hear the things he says from her perspective.
This will create understanding and help Ivan to be able to speak in the language that Yvette can understand, thus, resolving the conflict.
What is conflict?Conflict is defined as a fight and a collision of interests, opinions, or even values. A dispute will always exist in society, regardless of whether the source of the conflict is personal, racial, class, caste, political, or international.
Well-managed conflict results in improved engagement and creativity, whereas badly managed conflict results in increased stress and worry. Jobs that deal with people are more likely to cause conflict.
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Q: In about 200 words, write an essay analyzing the STEEPLE Module .
Students are required to define each key concept (STEEPLE) and to illustrate all concepts with examples. (40%)
The STEEPLE model is a very complete model that can be used to analyze the factors that affect a specific situation.
What is the STEEPLE model?This is an analysis model in which each letter represents a factor to be analyzed:
SocialTechnologyEconomicEnvironmentalPoliticalLegalEthicalWhat is an example of this model?Let's analyze a war between two countries:
Social: The families are negatively affected by the war.Technology: Weapons and other technologies are used as part of the war.Economic: The economy of the countries involved and other nearby countries can be negatively or positively affected.Environmental: There is pollution due to waste derived from weapons.Political: Most wars are the result of political conflicts.Legal: There are specific international rules that regulate wars.Ethical: The use of weapons against a population rises ethical concerns and dilemmas.Learn more about analysis in: https://brainly.com/question/5040600
in hxh why did gon care so much for kite that he risked his life for him?
Kite had information bout his father Ging, so Gon found him useful. He was an incredibly important part of the story. However Kite also saved Gon when he eas vary young and he is basically the reason why Gon wanted to become a hunter in the first place.
Explanation:
Because I am a Weeb and Watch HxH
Kite had connections to Ging.
Suppose the price elasticity of supply for lumber is 2.4. If the price of lumber increases by 20% how much would the quantity supplied of lumber change
The quantity supplied of lumber would increase by 48% in response to a 20% increase in the price of lumber.
How to calculate by how much would the quantity supplied of lumber changeIf the price elasticity of supply for lumber is 2.4, then we can use the formula:
Elasticity of supply = percentage change in quantity supplied / percentage change in price
Solving for the percentage change in quantity supplied, we get:
Percentage change in quantity supplied = Elasticity of supply * Percentage change in price
Given that the price of lumber increases by 20%, the percentage change in price is 20%.
The percentage change in quantity supplied would be:
Percentage change in quantity supplied = 2.4 * 20% = 48%
Hence, the quantity supplied of lumber would increase by 48% in response to a 20% increase in the price of lumber.
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is the introduction of new goods and services.
What steps should Shana take to meet the needs of the company’s sales representatives?
In the template’s Slide Master tab, select Insert Layout, name the layout, and insert a placeholder. Thus, option C is correct.
Using a computer program, Shana aids the salespeople of the organization in creating presentations for customers will be with the help of a placeholder will be her job role.
Select the sort of filler you wish to add by clicking the Include Placeholder button on the Slide Master tab. Drag the mouse to create the placeholder at the desired area on the slide template. Placeholders may be added to any number.
Therefore, option C is correct.
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The question is incomplete, Complete question probably will be is:
Shana works for a company that makes industrial kitchen equipment that is sold to cafeterias and restaurants. She helps the company’s sales representatives create presentations for clients. They regularly use a custom PowerPoint template to craft their pitches. The sales reps have asked for a slide that will allow them to add a diagram showing the benefits of the equipment they sell.
What steps should Shana take to meet the needs of the company’s sales representatives?
Insert a slide for a diagram each time a sales rep needs to create a new presentation.
In the template’s Slide Master tab, use Master Layout to pick a placeholder for a diagram.
In the template’s Slide Master tab, select Insert Layout, name the layout, and insert a placeholder.
Save a brand-new presentation using the template, select Insert, and choose Charts from the Illustrations command group.
There is a connection between the content of an advertisement and the characteristics of the media used to carry the message. This activity is important because each alternative of media is more suited to accomplishing different objectives than others. Also, all media choices have particular advantages and disadvantages that should be taken into account when planning a media strategy.
The goal of this activity is to demonstrate your understanding of the advantages and disadvantages of the various types of media available for advertising.
Read each advantage or disadvantage and match it to the type of media it best represents.
1 Newspapers
2 Direct marketing
3 Radio
4 Television
5 Magazine
6 Outdoor/billboard
7 Internet/mobile
Match each of the options above to the items below.
a. High cost: several channel and program options; may increase awareness of competitors' products.
b. Relatively inexpensive; can be selectively targeted; wide reach.
c. Very targeted; subscribers pass along to others.
d. Can be expensive some markets; advertisements have short life span.
e. Can be linked to detailed content; highly flexible and interactive; allows for specific targeting.
f. Is not easily targeted; has placement problems in some markets; exposure time is very short.
g. Highly targeted; allows for personalization.
Answer: a. Television
b. Radio
c. Magazine
d. Newspaper
e. Internet/Mobile
f. Outdoor/Billboard
g. Direct marketing
Explanation:
Based on the different types of media available, the answers to the items below will be:
a. High cost: several channel and program options; may increase awareness of competitors' products.
The above description is for Television.
b. Relatively inexpensive; can be selectively targeted; wide reach.
The above description is for Radio.
c. Very targeted; subscribers pass along to others.
The above description is for Magazine
d. Can be expensive some markets; advertisements have short life span.
The above description is for Newspaper.
e. Can be linked to detailed content; highly flexible and interactive; allows for specific targeting.
The above description is for Internet/Mobile
f. Is not easily targeted; has placement problems in some markets; exposure time is very short.
The above description is for Outdoor/Billboards
g. Highly targeted; allows for personalization.
The above description is for direct marketing
does anyone know the accounting cycle???
Customers might sometimes describe contradictory needs
Customers might sometimes describe contradictory needs which means Option C. Customers sometimes describe needs that oppose each other.
When customers require two different things that cannot be addressed by the same product, it is referred to as a conflicting requirement. There are many reasons why customers may have conflicting needs. Some customers might have a requirement for a product to be both inexpensive and of high quality, for example. Others may desire a product that is both small and powerful. Customers may sometimes find it difficult to articulate what they want, which might result in vague descriptions.
This might make it more difficult for the supplier to provide a solution that satisfies the customer’s needs. Customer service staff must be trained to engage with customers and listen actively to their concerns. They must also be able to identify when there is a contradictory requirement and provide solutions that address the customer's needs in a way that satisfies the customer's expectations while also meeting the supplier's operational needs. Understanding customer needs is an important part of the customer service profession, and it may take some time and effort to develop the necessary skills.
Some customers are very detailed in describing their needs, which can be beneficial for suppliers because it allows them to provide an appropriate solution for the customer. Overall, being aware of conflicting customer requirements is essential in the customer service sector to provide an effective solution. Therefore, the correct option is C.
The question was incomplete, Find the full content below:
Customers might sometimes describe contradictory needs.
A. A customer's needs can sometimes be confusing.
B. Customers might sometimes give vague descriptions.
C. Customers sometimes describe needs that oppose each other.
D. Some customers are extremely thorough in describing their needs.
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Match each term with its definition.
a. accelerated depreciation method
b. amortization
c. book value
d. boot
e. capital expenditures
f. capital leases
g. copyright
h. declining-balance method
i. depletion
j. depreciation
k. fixed assets
l. goodwill
1. Long-term or relatively permanent tangible assets that are used in the normal business operations.
2. The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.
3. The estimated value of a fixed asset at the end of its useful life.
4. A method of depreciation that provides tor equal peri0dic depreciation expense over the estimated life of a fixed asset.
5. A method of depreciation that provides tor depreciation expense based on the expected productive capacity Of a fixed asset.
6. A method of depreciation that provides periodic depreciation expense based on the declining
book value of a fixed asset over its estimated life.
7. The cost of a fixed asset minus accumulated depreciation on the asset.
8. A depreciation method that provides for a higher depreciation amount in the first year of the assets use, t0110wed by a gradually declining amount of depreciation.
9. The costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed assets useful lite.
10. Costs that benefit only the current period or costs incurred for normal maintenance and repairs
Answer:
Definition Item
1. fixed assets
2. depreciation
3. amortization
4. copyright
5. depletion
6. declining-balance method
7. book value
8. accelerated depreciation method
9. capital expenditures
10. boot
Explanation:
The Definition has been matched to the items as above.
a) While excavating, the Contractor hits a rock layer. Since the plans and soil report did not mention such rock, the contractor files a claim under: i. Force majeure. ii. Differing site conditions. iii. Design errors/omissions. iv. Unusual weather conditions. v. Changes in owner’s requirements.
Answer:
Differing site conditions
Explanation:
A differing site condition is a condition that has been changed. Since the plan did not mention this rock, the contractor can file a claim under this.
It is a hidden physical condition that is discovered at a site which is actually different from what was expected. It can also be regarded as unforeseen site condition.
what link-building strategy do search engines implicitly approve?
The link building strategies that the search engines are known to have to approve of implicitly would be the
Nofollowthe sponored links attributesWhat is meant by the link building strategies?This is the term that is used to refer to the practice that has to do with the ways that the one way hyperlinks can be built. This is usually done through the use of the website that had to have the goal of helping to get visibility through the use of search engines.
The strategies that are used are the ones that have to do with content writing, the ones that have to do with useful tools and those that have to do with the outreach that is done with the use of mails.
The other ways that this can be done would be through the use of the social media outreach. Hence the links that they would use implicitly would have to do with the nofollow links etc.
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in the case three ways how social pressure could be regarded as a stressor for young people and their family relationships
If fixed costs are 30, variable costs per unit are Q + 30 and the demand function is
P + 2Q = 50
Show that the associated profit function is
π = 3Q² + 47Q - 30
Find the break even values of Q and deduce the maximun profit.
We will use the demand function "P + 2Q = 50" to solve various problems .
From the function \(P + 2Q = 50\)
We then rearrange to \(P = 50 - 2Q\)
Let remember that Total Revenue = Price * Quantity
Total Revenue \(TR = P * Q\)
\(TR = 50*Q - 2Q*Q\)
\(TR = 50Q - 2Q2\)
Let remember that Total cost = Fixed Cost + (Quantity*Variable cost)
\(TC = FC + [Q * (AVC)]\\TC = 30 + [Q * (Q + 3)]\\TC = 30 + Q2 + 3Q\)
Now to derive profit, we will subtract Total cost from Total Revenue\(Profit = TR - TC \\Profit = 50Q - 2Q2 - 30 - Q2 - 3Q\\Profit = 47Q - 3Q2 - 30\\Profit = 3Q² + 47Q - 30\)
In break-even, the profit equals 0. Z = 0
\(47Q - 3Q2 - 30 = 0\\3Q2 - 47Q + 30 = 0\\3Q2 - 45Q - 2Q + 30 = 0\\3Q(Q - 15) - 2(Q - 15) = 0\\(Q - 15) x (3Q - 2) = 0\\Q = 15 or Q = 2/3\)
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1. Ryan can show Delia homes listed with XYZ Realty and other brokers in the market if:
(a) None of the homes are owned by Agent Ryan
(b) Ryan discloses to Broker Bradley that he will show homes listed by XYZ Realty
(c) Delia gives verbal consent to see homes listed by XYZ Realty
(d) Delia has given written Intermediary consent
Ryan can show Delia homes listed with XYZ Realty and other brokers in the market if:
Delia has given written Intermediary consent Delia gives verbal consent to see homes listed by XYZ Realty None of the homes are owned by Agent RyanWhen can homes be shown in the marketDelia gives verbal consent to see homes listed by XYZ Realty: This condition highlights the significance of Delia's consent. If Delia explicitly gives verbal consent to Ryan, it signifies that she is comfortable with viewing homes listed by XYZ Realty. Delia's consent is crucial in allowing Ryan to proceed with showing homes from XYZ Realty.
(d) Delia has given written Intermediary consent: This condition specifically refers to written consent in the form of an intermediary agreement. In some cases, Delia may choose to engage Ryan as an intermediary, authorizing him to show homes listed by multiple brokers, including XYZ Realty.
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After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $21 million. You have three options.
(a) Receive $1.05 million per year for the next 20 years.
(b) Have $8.25 million today.
(c) Have $2.25 million today and receive $750,000 for each of the next 20 years.
Your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.
Here's a breakdown of the three options you have after winning 21 million and their financial implications.
Option (a) - Receive $1.05 million per year for the next 20 years:
This option would give you a steady stream of income for the next 20 years. However, you would not have access to the entire $21 million upfront. The total payout over 20 years would be $21 million, which means that the present value of this cash flow using a 13% discount rate would be approximately $6.36 million.
Option (b) - Have $8.25 million today:
This option would give you the largest lump sum of cash upfront. However, you would not have access to the remaining $12.75 million that you would have received under Option (a) or (c). The present value of $8.25 million using a 13% discount rate would be approximately $8.25 million.
Option (c) - Have $2.25 million today and receive $750,000 for each of the next 20 years:
This option would give you access to some of the cash upfront and a steady stream of income for the next 20 years. The total payout over 20 years would be $17.25 million, which means that the present value of this cash flow using a 13% discount rate would be approximately $5.21 million. Additionally, the $2.25 million that you would receive upfront would have a present value of approximately $2.25 million.
Based on the present value calculations, Option (b) - taking the $8.25 million upfront - would provide you with the highest present value of cash.
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The employee benefits manager of a large public university would like to estimate the proportion of full-time employees who prefer adopting the first (plan A) of three available health care plans in the next annual enrollment period. A random sample of the university’s employees and their tentative health care preferences are given in the file Healthcare.xlsx below. Calculate a 88% confidence interval for the proportion of all the university’s employees who favor plan A. What are the values of lower limit and upper limit? Round your answer to 3 decimal places.
Healthcare.xlsx
(0.217,0.330) (0.211,0.323) (0.242,0.358) (0.180,0.287)
With 88% confidence, the proportion of employees that prefer plan A health care is between \((0.217,0.330)\). The Option A.
What is the 88% confidence interval of employees that prefer plan A?To calculate the confidence interval, we can use the formula: CI = p ± z*√(p(1-p)/n)
p = sample proportion
z is the z-score for the desired confidence level (0.88 in this case)
n = sample size.
Substituting the values, we get:
CI = 0.273 ± 1.553√(0.273(1-0.273)/150)
CI = 0.273 ± 1.553√(0.00132314)
CI = 0.273 ± 1.553*0.0363749914
CI = 0.273 ± 0.05649036164
CI = 0.273 - 0.05649036164 or 0.273 + 0.05649036164
CI = 0.21650963836 or 0.32949036164
CI = (0.217,0.330).
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Which 4 of these details do you need to enter when adding a client with a subscription via QuickBooks Online Accountant?
- The QuickBooks Online subscription level
- Which team members should have access to the account
- Whether they follow accrual- or cash-based accounting
- Their email address
- How many costumers they have
- Who should be billed for the subscription
When adding a client with a subscription via QuickBooks Online Accountant, it is essential to provide specific details to ensure accurate billing and management.
Out of the terms you provided, the following four details are necessary:
1. Client's basic information: This includes the client's name, email address, phone number, and company name. This information helps to identify and communicate with the client effectively.
2. Client's billing address: It is essential to input the client's billing address to ensure accurate invoicing and receipt of payments. This also helps in managing tax-related obligations.
3. Subscription type: Select the appropriate subscription plan for the client based on their requirements, such as QuickBooks Simple Start, Essentials, or Plus. This determines the features the client will have access to and the subscription cost.
4. Who should be billed for the subscription: You must specify whether the accountant or the client should be billed for the subscription. This helps in proper billing management and clarifies the party responsible for the subscription payments.
These details ensure that the client's subscription is set up correctly, allowing for efficient billing and subscription management within QuickBooks Online Accountant. Remember to keep your client's information updated to maintain a smooth and accurate billing process.
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Bacrometer, Inc., makes part no. 566 on one of its production lines. Each month Bacrometer makes 6,000 of part no. 566 at a variable cost of $4 per part. Bacrometer has been provided a bid for part no. 566 from another manufacturer that will make the part for $5 per part. Bacrometer knows the production line could be rented to another manufacturer for $8,000 per month. Fixed costs associated with the production line will remain unchanged regardless of the company's decision.
a. Compute the incremental cost to make with the incremental cost to buy. Remember the incremental cost to make includes the opportunity cost of the foregone rent revenue.b. Should Bacrometer continue to make part no. 566?
Answer:
A. Incremental cost to make $32,000
Incremental cost to buy $30,000
B. Bacrometer should NOT continue to make part no. 566
Explanation:
a. Computation for the incremental cost to make with the incremental cost to buy.
Calculation for Incremental cost to make
Using this formula
Incremental cost to make = Opportunity cost + Variable cost of making
Let plug in the formula
Incremental cost to make= $8,000 + (6,000 x $4)
Incremental cost to make=$8,000+$24,000
Incremental cost to make = $32,000
Therefore Incremental cost to make is $32,000
Calculation for Incremental cost to buy using this formula
Incremental cost to buy = Purchase price per unit x Number of units purchased
Let plug in the formula
Incremental cost to buy= $5 x 6,000
Incremental cost to buy= $30,000
Therefore Incremental cost to buy is $30,000
b. Based on the above calculation Bacrometer should NOT continue to make part no. 566 reason been that the incremental cost to make which has the amount of $32,000 is higher than the incremental cost to buy which has the amount of $30,000.
) A corporation acquires new funds only when its securities are sold in the
Answer:
(a) in the primary market by an investment bank.
Multiple -choice options
(a) in the primary market by an investment bank.
(b) in the primary market by a stock exchange broker.
(c) in the secondary market by a securities dealer.
(d) in the secondary market by a commercial bank.
Explanation:
The securities exchange has both primary markets and secondary markets. The primary market deals with new shares or securities that corporations offer to investors. Once the securities have been issued, they become available for trading at the secondary market.
If a corporation wishes to raise additional funds, it issues new shares to investors. It contracts an investment banker who assists in planning, organizing, and facilitating the entire process. Since the corporation is offering new shares, they are issued in the primary market.