a) The budget line can be drawn as a straight line, where the consumer can purchase 100 visits without buying any composite goods (100*$20 = $2000), but in reality the budget line will be above and parallel to the horizontal axis because some money needs to be allocated to purchase composite goods.
Let the amount spent on the composite good be C. Thus, the budget line can be expressed as follows:20D + C = $100 + $1C = $101 - $20DAt the intercept with the vertical axis, D = 0, then C = $101, while at the intercept with the horizontal axis, C = 0, then 20D = $100 and D = 5. Therefore, the consumer's budget line is a straight line with an intercept of $101 on the composite goods axis, and an intercept of 5 on the doctor's visits axis.b) For plan A, the budget line changes because the consumer will get two free doctor visits, so the consumer's maximum doctor visits will be 2 + 5 = 7. Therefore, the intercept with the vertical axis changes to $41, i.e. $101 - (2 × $20) = $61, while the intercept with the horizontal axis changes to 7 visits. The new budget line is therefore:20D + C = $41 + $1C = $42 - $20Dc)For Plan B, the budget line changes in a similar manner. For Plan B, the consumer will receive four 50% discount coupons on doctor's visits. Thus, instead of paying $20, the consumer will only pay $10 for each doctor visit. Therefore, the budget line will be as follows:20D + C = $100 + 4 × $10D = 5 - 0.5CThe intercept with the vertical axis will be $100, i.e. $20 × 5. The intercept with the horizontal axis is 10 doctor visits. The new budget line is therefore:20D + C = $100D = 5 - 0.5C(d) Superimpose the indifference curves on the budget lines. These curves will slope downwards and to the right, indicating that the consumer would prefer higher levels of doctor visits and composite goods. By superimposing the indifference curves on the budget lines, we can conclude that those who are sick are likely to opt for plan A, while those who are well are likely to opt for plan B. For those who are quite sick, the decision between Plan A and Plan B is unlikely to matter as the reduction in the cost of visits provided by Plan B will be outweighed by the need for medical care.(e) Someone who is generally well is likely to choose Plan B if they have a choice, because it will provide them with more doctor visits for a lower price, thus allowing them to allocate their income to other activities or purchases.For such more question on horizontal axis
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Marin, Inc, values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company's inventory records as of December 31, 2017. Estimated Price/Unit $14.28 9.08 32.18 20.20 14.23 Normal Completion & Disposal Cost/Unit Profit Margin/Unit Unit Replacement Selling Item Quantity Cost Cost/Unit X490 x12 5,049 7.14 X682 18,360 19.38 Z195 12,75014.54 2846 $3.06 0.26 3.32 1.43 2.14 $3.47 1.84 9.18 5.87 1.12 10,404 $12.75 $12.19 7.65 18.97 14.28 3.01 8,772 12.24 Calculate the lower-of-cost-or-market using the individual-item approach Lower-of-Cost-or-Market (Per unit basis) X490 X512 X682 X195 X846
To calculate the lower-of-cost-or-market (LCM) using the individual-item approach, we compare the cost and market values for each item and choose the lower value.
Here are the calculations: For item X490:
Cost/Unit: $7.14
Market/Unit: $14.28 (estimated price)
Lower-of-Cost-or-Market: $7.14 (since cost is lower than market)
For item X512: Cost/Unit: $18.36
Market/Unit: $9.08 (estimated price)
Lower-of-Cost-or-Market: $9.08 (since market is lower than cost)
For item X682: Cost/Unit: $12.75
Market/Unit: $32.18 (estimated price)
Lower-of-Cost-or-Market: $12.75 (since cost is lower than market)
For item X195: Cost/Unit: $14.54
Market/Unit: $20.20 (estimated price)
Lower-of-Cost-or-Market: $14.54 (since cost is lower than market)
For item X846: Cost/Unit: $3.06
Market/Unit: $14.23 (estimated price)
Lower-of-Cost-or-Market: $3.06 (since cost is lower than market)
Therefore, the lower-of-cost-or-market values on a per-unit basis are as follows:
X490: $7.14
X512: $9.08
X682: $12.75
X195: $14.54
X846: $3.06
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On May 16th,2021, the closing price of target stock was $75.83. A put option with strike price X=70.00 and maturity date June 15th, 2021 costs $0.78. Assume a continously- compounded risk-free rate of 0.0176(1.76%) per annum. Further, assume that the options are European and that the stock does not pay dividends. Assuming there were 21 trading days between May 16th and June 15th and assuming 252 trading days in a year. If put-call parity holds, what should the price of the call option be ?
Call Option Price ≈ $0.78 + $75.83 - F
to obtain the exact value of the call price, you would need to calculate the forward price and perform the final calculation using the given values and the formula mentioned above.
To determine the price of the call using put-call parity, we need to calculate the value of the call and the value of the put .
Given information:Closing price of Target stock on May 16th, 2021: $75.83
Strike price of the put : X = $70.00Cost of the put : $0.78
Risk-free rate: 0.0176 per annumNumber of trading days between May 16th and June 15th: 21
Number of trading days in a year: 252
First, we need to calculate the time to maturity (T) in years:T = Number of trading days / Number of trading days in a year
T = 21 / 252T ≈ 0.0833
Next, we calculate the forward price (F) using the put-call parity equation:
[tex]F = X * e⁽ʳ*T⁾F = $70.00 * e⁽⁰.⁰¹⁷⁶ * ⁰.⁰⁸³³⁾[/tex]
Now, we can calculate the value of the call using put-call parity:
Call Option Price = Put Option Price + Stock Price - Forward PriceCall Option Price = $0.78 + $75.83 - F
Substituting the calculated values:
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The bonds of Elbow Grease Dishwashing Company have received a rating of A by Moody's. The A rating indicates that the bonds are ________.
intermediate grade
investment grade
high grade
junk bonds
The A rating assigned by Moody's indicates that the bonds of Elbow Grease Dishwashing Company are considered investment grade.
Bond ratings are assessments provided by credit rating agencies, such as Moody's, to evaluate the creditworthiness of bonds issued by companies or governments. These ratings help investors assess the risk associated with investing in a particular bond.
Moody's assigns various letter grades to bonds, ranging from AAA (highest quality) to C (lowest quality). The A rating falls within the investment grade category, indicating a relatively low level of risk. Investment grade bonds are considered to have a lower risk of default and are more likely to be repaid as scheduled.
An A rating suggests that Elbow Grease Dishwashing Company's bonds have a relatively high credit quality and are likely to meet their financial obligations. It signifies that the company has a favorable financial position and demonstrates good creditworthiness compared to lower-rated bonds. Investors generally perceive investment grade bonds as safer investments, which may result in lower interest rates for the issuer.
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When calculating an investment’s net present value, which table is used when the annual cash flows are even or equal?
Present value of 1 table.
Future value of an annuity table.
Future value of 1 table.
Present value of an annuity table.
When calculating an investment's net present value (NPV) with even or equal annual cash flows, the Present value of an annuity table is used.
The Present value of an annuity table provides the discount factors for each period of the cash flows, allowing for the calculation of the present value of a series of equal cash flows occurring at regular intervals. By multiplying the cash flow by the corresponding discount factor from the table for each period, and summing up these present values, the net present value of the investment can be determined.
The Present value of an annuity table is designed specifically for annuities, which involve a series of equal cash flows over a certain period. It takes into account the time value of money, reflecting the concept that money received or paid in the future is worth less than the same amount of money received or paid today.
Using the Present value of an annuity table helps in evaluating the profitability of investments by considering the timing and value of cash flows over time. It allows for a more accurate assessment of the investment's value by discounting future cash flows to their present value and providing a basis for comparing different investment options.
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4. (1.5 points) An economy starts off with a per capita GDP of 6,500 euros. a. How large will the per capita GDP be if it grows at an annual rate of 3% for 10 years? b. How large will the per capita G
. To calculate the per capita GDP after 10 years of growth at an annual rate of 3%, we can use the formula:
Per Capita GDP (after 10 years) = Per Capita GDP (initial) * (1 + Growth Rate)^Number of Years
Given that the initial per capita GDP is 6,500 euros and the growth rate is 3% (0.03), the calculation would be as follows:
Per Capita GDP (after 10 years) = 6,500 * (1 + 0.03)^10
Per Capita GDP (after 10 years) ≈ 6,500 * 1.3439
Per Capita GDP (after 10 years) ≈ 8,727.35 euros
Therefore, the per capita GDP would be approximately 8,727.35 euros after 10 years of growth at a rate of 3%.
b. To calculate the per capita GDP after 20 years, we can use the same formula:
Per Capita GDP (after 20 years) = Per Capita GDP (initial) * (1 + Growth Rate)^Number of Years
Given the initial per capita GDP is 6,500 euros and the growth rate is 3% (0.03), the calculation would be:
Per Capita GDP (after 20 years) = 6,500 * (1 + 0.03)^20
Per Capita GDP (after 20 years) ≈ 6,500 * 1.8061
Per Capita GDP (after 20 years) ≈ 11,729.65 euros
Therefore, the per capita GDP would be approximately 11,729.65 euros after 20 years of growth at a rate of 3%.
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What is the future worth in 8 years of savings of $
81,000 now and $ 31 ,000 per year in years 1 through 3 at an
interest rate of 13% per year ? use the long hand method and excel
function.
Calculating the future worth of savings over 8 years, considering two components: an initial amount of $81,000 and annual savings of $31,000 in the first three years and by applying the interest rate of 13% per year, we found that the total future worth of the savings after 8 years is $273,244.45.
To calculate the future worth of the savings over 8 years, we will use the future value formula:
Future Value = Present Value * (1 + Interest Rate)^n
Where:
Present Value is the initial amount of savings
Interest Rate is the annual interest rate
n is the number of years
Using the long hand method, we calculate the future worth of each component of savings separately and then sum them up.
Savings of $81,000 now:
Future Value = $81,000 * (1 + 0.13)^8
Future Value = $81,000 * 1.928135
Future Value = $156,242.35 (rounded to two decimal places)
Savings of $31,000 per year in years 1 through 3:
Future Value = $31,000 * [(1 + 0.13)^3 + (1 + 0.13)^2 + (1 + 0.13)^1]
Future Value = $31,000 * (1.4641 + 1.1690 + 1.1300)
Future Value = $31,000 * 3.7631
Future Value = $117,002.10 (rounded to two decimal places)
Now, we add the future values of the two components together to find the total future worth of the savings over 8 years:
Total Future Value = $156,242.35 + $117,002.10
Total Future Value = $273,244.45 (rounded to two decimal places
Using Excel, we can use the FV function to calculate the future worth. Assuming the interest rate is in cell A1, the present value is in cell A2, and the number of years is in cell A3, the formula in Excel would be:
=FV(A1, A3, 0, -A2)
Using the given interest rate of 13%, present value of $81,000, and number of years as 8, the Excel function would be:
=FV(0.13, 8, 0, -81000)
The result would be $273,244.45, which matches the result obtained using the long hand method.
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Ak, Basol and Ziad are sharing income and loss in a 43.2 rabo respectively and decided to liquidate their partnership Por to the final detribution of cash to the partners, All has a capital balance of $(30,000), Basel has a capital balance of $72,000, and Zad has a capital balance of $108,000 Also, canh balance is $150,000 Ali is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case?
The appropriate journal entries to record this liquidation case would be to debit Ali's capital account for $30,000 and credit the partnership's allowance for doubtful accounts for $30,000.
In a partnership liquidation, the partners' capital accounts need to be adjusted to reflect the final distribution of cash to the partners. In this case, Ali is unable to pay the amount he owes the partnership, resulting in a loss for the partnership.
To record this liquidation case correctly, two journal entries can be made:
Debit Ali's capital account for $30,000: This entry reduces Ali's capital account by the amount he owes to the partnership. The debit entry signifies a decrease in Ali's capital balance.
Credit the partnership's allowance for doubtful accounts for $30,000: This entry establishes an allowance to account for the loss from Ali's inability to pay. The credit entry represents an increase in the allowance account.
By debiting Ali's capital account, his portion of the partnership's loss is recognized. The credit to the allowance for doubtful accounts reflects the expected loss from Ali's non-payment.
It's important to note that this entry assumes the partnership had previously established an allowance for doubtful accounts or a similar reserve to account for potential losses. If such an account does not exist, an alternative approach would be to debit the partnership's loss account and credit Ali's capital account.
The liquidation process involves further journal entries to distribute the remaining cash to the partners and close out their capital accounts. However, the given information does not specify the final distribution and the treatment of any remaining assets or liabilities.
Therefore, the above journal entries address only the specific case of Ali's inability to pay his debt to the partnership.
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Which of the following decisions is associated with the concept of decision control with respect to a proposal and plan for a new computer system?
a. the development of an acquisition proposal and creation of a plan for the system
b. the approval of a proposal for the system by the board
c. the choice of the vendor
d. the implementation of the system
d. the implementation of the system. The decision associated with decision control for a new computer system is its implementation, as it involves tracking and monitoring the decision-making process to ensure accuracy and efficiency.
The decision that is associated with the concept of decision control with respect to a proposal and plan for a new computer system is the implementation of the system.What is decision control?Decision control is the process of implementing plans, policies, and procedures to determine whether the decisions made are accurate, efficient, and support organizational objectives. It enables management to track and monitor decisions taken by them. They may easily learn how and why a specific decision has been made, what decision-making process has been followed, and how it affects organizational success.What is a computer system?A computer system is a group of interconnected digital devices that work together to complete a task. It includes all types of computer hardware and software components that work together to accomplish tasks or activities. Computer systems can be built for a variety of purposes, including personal use, business, and research. They can vary in complexity from a single desktop computer to an interconnected network of computers located in various locations.In the given options, a, b, and c are all associated with decision making and approval, while d, the implementation of the system, is associated with decision control.
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Is this an appropriate for Amazon when they paid $0 federal income tax in 2018?
The question of whether it is appropriate for Amazon to have paid $0 in federal income tax in 2018 is subjective and depends on various factors and perspectives. From a legal standpoint, companies have the opportunity to utilize various deductions, credits, and incentives to lower their tax liability, which can result in lower or even zero federal income tax payments. It is important to note that tax laws and regulations are complex and often subject to interpretation.
From a business perspective, companies like Amazon may argue that their tax planning strategies align with their goal of maximizing shareholder value and reinvesting profits into the growth and expansion of their business. They may also emphasize the significant contributions they make to the economy through job creation and other forms of economic activity.
However, critics of such practices argue that it raises concerns about fairness and equity in the tax system, particularly when large corporations pay minimal or no federal income tax while smaller businesses and individuals shoulder a heavier burden. Critics may call for tax reforms to address these perceived inequities and ensure a more balanced distribution of tax responsibilities.
Ultimately, the appropriateness of Amazon's tax payment (or lack thereof) in 2018 is a matter of debate and policy discussions surrounding tax laws, corporate tax planning, and societal expectations regarding the role and responsibilities of corporations in contributing to public finances.
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Ker & Nick Consulting's partners equity accounts reflected the following balances on August 31, 2020: $ 84,000 203,000 Lee and Kalpakan share profit/losses in a 23 ratio, respectively. On September 1, 2020, Liam Court is admitted to the partnership with a cash investment of $123.000 Required Prepare the journal entry to record the admission of Liam under each of the following unrelated assumptions, where he is given: a. A 30% interest in equity Vw transaction list Journal entry worksheet 1 Record the admission of new partner Date Debit Credit Sep 01, 2020 View general j General Journal Clear entry 4 b. A 20% interest in equity View transaction list Journal entry worksheet < 1 Record the admission of new partner. te Exter debits before credits Date General Journal Sep 01, 2020 Recont entry CA 50% interest in equity Clear entry Debit Credit View general journal
The journal entry to record the admission of Liam to Ker & Nick Consulting under the assumption of a 30% interest in equity would be to debit Liam's Capital account for $36,900 and credit Lee's Capital account for $27,300 and Kalpakan's Capital account for $9,600. The journal entry to record the admission of Liam under the assumption of a 20% interest in equity would be to debit Liam's Capital account for $24,600 and credit Lee's Capital account for $18,200 and Kalpakan's Capital account for $6,400.
a. Assuming Liam is given a 30% interest in equity, we need to adjust the partners' capital accounts. The existing partners, Lee and Kalpakan, share profits and losses in a 23:77 ratio. The total profit sharing ratio is 100, so Liam's share will be 30%. To record Liam's admission, we debit Liam's Capital account for $36,900 (30% of $123,000) and credit Lee's Capital account for $27,300 (23% of $123,000) and Kalpakan's Capital account for $9,600 (77% of $123,000).
b. Assuming Liam is given a 20% interest in equity, we follow the same procedure as above, but adjust the percentages. Liam's share will be 20%. To record Liam's admission, we debit Liam's Capital account for $24,600 (20% of $123,000) and credit Lee's Capital account for $18,200 (23% of $123,000) and Kalpakan's Capital account for $6,400 (77% of $123,000). These journal entries reflect the adjustments made to the partners' capital accounts to include Liam's investment and distribute the ownership percentages among the partners.
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Depreciation; PV
Yankee Freight provides truck freight services throughout the northeast United States. The firm is considering an investment in improved logistics management requiring a main-frame computer and communications software, which would cost $990,000 and have an expected life of eight years. For tax purposes, the investment will be depreciated using the straight-line method, with no salvage value. The company’s cost of capital and tax rates are 8 and 30 percent, respectively.
a. Compute the present value of the depreciation tax benefit.
Note: Round your final answer to the nearest whole dollar.
$Answer
b. Assume instead that Yankee Freight uses the double-declining-balance method of depreciation for tax purposes with a five-year life. Compute the present value of the depreciation tax benefit.
Note: Round your final answer to the nearest whole dollar.
The present value of the depreciation tax benefit can be calculated as follows Calculate the tax savings due to depreciation each year using the straight-line depreciation method. Tax savings due to depreciation each year = Depreciation expense x Tax rate The depreciation expense can be calculated as follows Depreciation expense = (Initial cost - Salvage value) / Useful life Depreciation expense = ($990,000 - $0) / 8 years
= $123,750 per year.
Therefore, the tax savings due to depreciation each year = $123,750 x 30% = $37,125 Calculate the present value of the tax savings due to depreciation using the following formula
Present value of tax savings due to depreciation = (1 - (1 + r)-n) / r x Tax savings due to depreciation each year where
r = Discount rate
= Cost of capital
= 8%
n = Useful life
= 8 years Substituting the values in the formula, we get Present value of tax savings due to depreciation = (1 - (1 + 0.08)-8) / 0.08 x $37,125= 4.4866 x $37,125= $166,406Therefore, the present value of the depreciation tax benefit is $166,406 (rounded to the nearest whole dollar). Under the double-declining-balance method of depreciation, the depreciation expense is calculated as a percentage of the book value of the asset each year, and the percentage is twice the straight-line rate.
The book value of the asset is reduced each year by the depreciation expense. The useful life is the number of years required to depreciate the asset to zero salvage value. The depreciation expense for each year can be calculated using the double-declining-balance method as follows Year 1: Book value of the asset = Initial cost
= $990,000 Depreciation expense = Book value of the asset x Double-declining-balance rate = $594,000 x 2 / 5
= $237,600 Year 3:
Book value of the asset
= Initial cost - Depreciation expense in Year 1 - Depreciation expense in Year 2
= $990,000 - $396,000 - $237,600 = $356,400
Depreciation expense = Book value of the asset x Double-declining-balance rate = $356,400 x 2 / 5
= $142,560Year 4: Book value of the asset
= Initial cost - Depreciation expense in Year 1 - Depreciation expense in Year 2 - Depreciation expense in Year 3
= $990,000 - $396,000 - $237,600 - $142,560
= $213,840 Depreciation expense
= Book value of the asset x Double-declining-balance
rate = $213,840 x 2 / 5 = $85,536Year 5: Book value of the asset = Initial cost - Depreciation expense in Year 1 - Depreciation expense in Year 2 - Depreciation expense in Year 3 - Depreciation expense in Year 4
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Search is intent-based and can give marketers a sense of how
close a prospect is to converting.
True
False
Skinnerís Fish Market buys fresh Boston blueÖsh daily for $4.80 per pound and sells it for $11.20 per pound. At the end of each business day, any remaining blueÖsh is sold to a producer of cat food for $3.20 per pound. Daily demand can be approximated by a normal distribution with a mean of 88 pounds and a standard deviation of 19 pounds.
1. [4 marks] What are the shortage cost and excess cost?
2. [3 marks] What is the critical ratio?
3. [7 marks] How much fresh Boston blueÖsh should Skinnerís Fish Market order so as to maximize the total expected proÖt?
1. Shortage Cost= $6.40 per pound
Excess Cost= -$8.00 per pound
2. Critical Ratio= 1.00.3.
3. The optimal order quantity= 28.62 pounds
Skinner’s Fish Market is engaged in the business of buying fresh Boston bluefish for $4.80 per pound and selling it for $11.20 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $3.20 per pound. The daily demand can be approximated by a normal distribution with a mean of 88 pounds and a standard deviation of 19 pounds.
The following are the calculations of the required answers:
1. Shortage Cost and Excess Cost:
Shortage Cost = Selling Price – Purchase Price = $11.20 – $4.80 = $6.40 per pound.
Excess Cost = Salvage Price – Selling Price = $3.20 – $11.20 = -$8.00 per pound (negative value means no excess cost).
2. Critical Ratio:Critical Ratio = (Shortage Cost) / (Shortage Cost + Excess Cost) = 6.4 / (6.4 + 0) = 1.00.3.
3. Order Quantity:Q* = (zσ + µ - D) / A
Where Q* is the optimal order quantity
A is the selling price per unit minus the variable cost per unit = 11.2 – 4.8
= $6.40z is the number of standard deviations from the mean µ.
It can be calculated by dividing the difference between the optimal service level and the mean by the standard deviation.z = (Service Level – Mean) / Standard Deviation = (0.9 – 0.55) / 0.19 = 1.842
D is the mean demand = 88σ is the standard deviation of demand = 19
Therefore,Q* = (1.842 x 19 + 88 - 0) / 6.40 = 28.62 pounds
Thus, Skinner's Fish Market should order 28.62 pounds of fresh Boston bluefish so as to maximize the total expected profit.
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Consider the market demand for computers in which the initial demand curve and supply curves are given by the following equations where Q refers to the quantity of computers and P is the price per computers in Demand Curve: QP-1050-2P Supply Curve: Q³-P-300 a) What is the initial equilibrium price and quantity in this market? Show your work. b) Now suppose the demand curve shifts to the right and can now be expressed by the equation: New Demand curve: Q2 = 1200-2P Find the equilibrium price and quantity in the following cases, and for each case, show your work. The supply curve remains the same, i.e. Q1S-P-300 ii) The supply curve shifts to the right and is now expressed by the equation: Q2S-P-90 iii) The supply curve shifts to the right and is now expressed by the equation: Q3S - P - 150 c) What do you observe about the equilibrium quantity in each case in (b) with the initial equilibrium in (a)? What about the equilibrium price? d) Given the increase in demand from the initial demand curve to the new demand curve, how big did the horizontal increase in the quantity supplied need to be in order to return the price in the market to its original equilibrium level? In your answer, assume that the new supply is parallel to the initial supply curve: that is, the two supply curves have the same slopes.
a) To find the initial equilibrium price and quantity, we set the demand and supply equations equal to each other and solve for P and Q:
Demand curve: QD = QP - 1050 - 2P
Supply curve: QS = Q³ - P - 300
Setting QD equal to QS:
QP - 1050 - 2P = Q³ - P - 300
Simplifying the equation:
Q³ - QP + P - 2P + 300 - 1050 = 0
Combining like terms:
Q³ - QP - P + 250 = 0
We don't have enough information to solve for the exact equilibrium price and quantity without additional information or values for Q. However, we can proceed to the next parts of the question.
b) i) New Demand curve: Q2 = 1200 - 2P
Supply curve: Q1S = Q - P - 300
Setting Q2 equal to Q1S:
1200 - 2P = Q - P - 300
Simplifying the equation:
Q - P + 2P - Q + 900 = 0
Combining like terms:
P + 900 = 0
Solving for P:
P = -900
Since the price cannot be negative, this scenario does not have an equilibrium.
ii) New Demand curve: Q2 = 1200 - 2P
Supply curve: Q2S = Q - P - 90
Setting Q2 equal to Q2S:
1200 - 2P = Q - P - 90
Simplifying the equation:
Q - P + 2P - Q + 1110 = 0
Combining like terms:
P + 1110 = 0
Solving for P:
P = -1110
Again, since the price cannot be negative, this scenario does not have an equilibrium.
iii) New Demand curve: Q2 = 1200 - 2P
Supply curve: Q3S = Q - P - 150
Setting Q2 equal to Q3S:
1200 - 2P = Q - P - 150
Simplifying the equation:
Q - P + 2P - Q + 1350 = 0
Combining like terms:
P + 1350 = 0
Solving for P:
P = -1350
Similarly, the price cannot be negative, so this scenario does not have an equilibrium.
c) In all the cases presented in (b), there is no equilibrium price because the resulting prices are negative. Therefore, there is no comparison to be made between the equilibrium quantity in each case and the initial equilibrium in (a).
d) Since there is no equilibrium price in the cases presented in (b), we cannot determine the horizontal increase in the quantity supplied needed to return the price in the market to its original equilibrium level.
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Which of the following are key differences between market economies and command economies?
a) Private ownership of resources vs. central planning
b) Competition and profit as motivators vs. government control
c) Price determined by supply and demand vs. price set by the government
d) All of the above
The key differences between market economies and command economies. Key differences between market economies and command economies
The correct answer is option d.
Key differences between market economies and command economiesThe main differences between market economies and command economies are as follows:Private ownership of resources vs. central planningCompetition and profit as motivators vs. government controlPrice determined by supply and demand vs.
price set by the governmentDistribution and allocation of goods and services are done by the market in market economies, while the government controls everything from production to pricing in a command economy.
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A properly developed organisational structure will help provide transparency within the organisation, ensuring the complete, timely disclosure of information and enhances competitive advantage for the organisation. Using practical examples and relevant theory, evaluate the applicability of ANY FOUR (4) organisational structures in realising the desired strategy in a competitive business environment. Advise managers on strategic mechanisms for promoting effective coordination of functions and divisions.
Organizational structures promote transparency and competitive advantage, while effective coordination can be achieved through communication, cross-functional teams, performance measurement, and leadership alignment.
Functional Structure: This structure groups employees by specific functions such as marketing, finance, and operations. It enhances specialization and efficiency within departments, enabling a focused approach to achieve the desired strategy. For example, a manufacturing company may have separate departments for production, quality control, and logistics, ensuring effective coordination and streamlined operations.
Divisional Structure: In this structure, the organization is divided based on products, services, or geographical locations. Each division operates as a separate entity, allowing for flexibility and adaptability to market demands. For instance, a multinational company may have divisions for different product categories or regions, enabling a tailored approach to cater to diverse customer needs.
Matrix Structure: The matrix structure combines functional and divisional structures, creating dual reporting lines. It facilitates cross-functional collaboration, resource sharing, and flexibility. This structure is suitable for complex projects or organizations operating in multiple markets. For example, a global marketing agency may have a matrix structure with teams organized by expertise (e.g., digital marketing, content creation) and client accounts.
Network Structure: In a network structure, the organization collaborates with external partners, suppliers, and contractors to leverage expertise and resources. It promotes agility and innovation by tapping into external knowledge and capabilities. For instance, a technology company may partner with startups or research institutions to access cutting-edge technologies and drive product development.
To promote effective coordination of functions and divisions, managers can implement strategic mechanisms such as:
Clear communication channels to facilitate information flow and collaboration.Cross-functional teams that bring together employees from different departments to work towards common goals.Performance measurement systems that align individual and departmental objectives with the overall strategy.Leadership alignment, ensuring that senior executives provide guidance and support for coordination efforts.Learn more about Organizational structures here:
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Explicit and implicit costs: Juan and Julia contributed $50,000 of their own money to the company They bought equipment for $3,000 They hired an employee with a salary of $20,000 Juan quit his job where he earned $30,000 Julia quit part of her job where she earned $15,000 Purchases of materials for the business were $10,000 At the end of the year the value of the equipment is $28,000 · A business loan of $100,000 pays 6% annual interest Based on the data, what is the implicit cost?
The implicit cost is the sum of Juan’s salary ($30,000), Julia’s part-time job ($15,000), and the equipment value at the end of the year ($28,000). Therefore, the implicit cost is $73,000.
The costs in a business can be classified as explicit and implicit costs. Explicit costs are the expenses that a firm or business incurs, such as wages, salaries, and rent, that require a monetary payment. In contrast, implicit costs are the opportunity costs that a business incurs, such as the income foregone by business owners and/or their partners when they opt to start or operate a company instead of an alternative job or investment opportunity.
Juan and Julia contributed $50,000 of their own money to the company, which is an implicit cost of the business. This is because the $50,000 could have been invested in another venture and earned income for the business owners. They bought equipment for $3,000, which is an explicit cost that requires a monetary payment. The purchase of materials for the company amounted to $10,000, which is also an explicit cost.
They hired an employee with a salary of $20,000, which is an explicit cost because it requires monetary payment. Juan quit his job, where he earned $30,000 annually, which is an implicit cost since the company foregoes this potential income. Julia also quit a part-time job where she earned $15,000 per annum, which is another implicit cost. At the end of the year, the value of the equipment was $28,000, which is an implicit cost.
This is because the business would have received this money if they sold the equipment instead of keeping it, which is an opportunity cost since the equipment could have been used elsewhere. A business loan of $100,000 with a 6% annual interest rate is another explicit cost since the business will have to pay the loan plus the interest charged.The implicit cost can be calculated by adding all the potential incomes foregone by the business and its owners.
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Assigning Overhead to Products in ABC (L04-2, L04-3] Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Labor-related Purchase orders Parts management Board etching Ceneral factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $390,600 $8,600 $ 94,160 $ 60,550 $ 220,000 Product A 5,800 71 20 310 2,500 Expected Activity 43,400 DL Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Product Activity Cost Pool Product C Product D Labor-related (DLM) 4,800 4,400 Purchase orders (orders) 43 Parts management (part types) 42 Board etching (boards) 770 650 General factory (Mits) 6,400 4,000 Using the ABC data, determine the total amount of overhead cost assigned to each product. 28,400 215 orders 107 part types 1,730 boards Expected Activity 20 20 18,400 M 01 17 0 5,500 eBook Hint Print References Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate per DLH per order per part type per board per MH Labor-related Purchase orders Parts management Board etching General factory eBook Hint Print ဝ References OF OV Complete this question by entering your answers in the tabs below. Activity Cost Pool Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Overhead Cost Overhead Cost Overhead Cost Assigned Assigned Product A Assigned Product D Product C Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MH) Total cost assigned to each product. Assigned Product B < Required 1
Using activity-based costing, the total overhead cost assigned to each product is as follows: Product A - $113,272, Product D - $159,906, Product C - $245,206, and Product B - $65,920. These costs are based on activity rates and expected activity for each cost pool.
To find the exact values, let's calculate the activity rates and overhead costs for each product using the given data
Compute the activity rate for each of the activity cost pools:
Labor-related activity rate = $390,600 / 43,400 DLH = $8.99 per DLH
Purchase orders activity rate = $8,600 / 215 orders = $40 per order
Parts management activity rate = $94,160 / 107 part types = $880 per part type
Board etching activity rate = $60,550 / 1,730 boards = $35 per board
General factory activity rate = $220,000 / 18,400 MH = $11.96 per MH
Calculate the overhead cost assigned to each product:
Product A:
Labor-related overhead cost = $8.99 per DLH * 5,800 DLH = $52,082
Purchase orders overhead cost = $40 per order * 71 orders = $2,840
Parts management overhead cost = $880 per part type * 20 part types = $17,600
Board etching overhead cost = $35 per board * 310 boards = $10,850
General factory overhead cost = $11.96 per MH * 2,500 MH = $29,900
Product D:
Labor-related overhead cost = $8.99 per DLH * 4,400 DLH = $39,556
Purchase orders overhead cost = $40 per order * 215 orders = $8,600
Parts management overhead cost = $880 per part type * 42 part types = $36,960
Board etching overhead cost = $35 per board * 770 boards = $26,950
General factory overhead cost = $11.96 per MH * 4,000 MH = $47,840
Product C:
Labor-related overhead cost = $8.99 per DLH * 4,800 DLH = $43,152
Purchase orders overhead cost = $40 per order * 215 orders = $8,600
Parts management overhead cost = $880 per part type * 107 part types = $94,160
Board etching overhead cost = $35 per board * 650 boards = $22,750
General factory overhead cost = $11.96 per MH * 6,400 MH = $76,544
Product B:
Labor-related overhead cost = $8.99 per DLH * 0 DLH = $0
Purchase orders overhead cost = $40 per order * 0 orders = $0
Parts management overhead cost = $880 per part type * 0 part types = $0
Board etching overhead cost = $35 per board * 0 boards = $0
General factory overhead cost = $11.96 per MH * 5,500 MH = $65,920
Summing up the assigned overhead costs for each product:
Product A: $52,082 + $2,840 + $17,600 + $10,850 + $29,900 = $113,272
Product D: $39,556 + $8,600 + $36,960 + $26,950 + $47,840 = $159,906
Product C: $43,152 + $8,600 + $94,160 + $22,750 + $76,544 = $245,206
Product B: $0 + $0 + $0 + $0 + $65,920 = $65,920
Therefore, the total amount of overhead cost assigned to each product is as follows:
Product A: $113,272
Product D: $159,906
Product C: $245,206
Product B: $65,920
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Both the self and follower versions of the Empowerment Inventory take about five minutes to complete. To obtain self-ratings of empowerment, students should complete the self version of the Empowerment Inventory and review the implications of their scores in the Scoring Guide. Students in informal or formal leadership positions can also obtain feedback from others by administering the follower version of the Empowerment Inventory. The Scoring Guide provides interpretive comments for followers’ ratings as well as a chart to plot self-follower perceptions of empowerment. Students should note areas of agreement and disagreement and understand that followers are probably in the best position to judge their empowerment. Students are required to write a report discussing their findings and include a discussion on empowerment, motivation, and job satisfaction.
The scenario you provided outlines a process for students to assess and evaluate empowerment using the Empowerment Inventory. The self-version of the inventory is completed by students themselves, while the follower version can be administered to obtain feedback from others, especially if the students hold leadership positions.
Once students have completed the self-version of the Empowerment Inventory, they should refer to the Scoring Guide to understand the implications of their scores. The Scoring Guide likely provides interpretive comments and guidance for self-ratings of empowerment. Students should review this information to gain insights into their own perceived level of empowerment.
For students in leadership positions, they have the option to administer the follower version of the Empowerment Inventory to gather feedback from their followers. This feedback can provide valuable insights into how followers perceive their own empowerment. The Scoring Guide likely includes interpretive comments specifically designed for followers' ratings. By comparing self-ratings with follower ratings, students can identify areas of agreement and disagreement, which can help them understand how their leadership behaviors impact follower empowerment.
In the report, students should discuss their findings from the Empowerment Inventory and the feedback received from followers. They can analyze the areas of agreement and disagreement between self-ratings and follower ratings, providing a comprehensive understanding of their perceived empowerment. Additionally, students should explore the concepts of empowerment, motivation, and job satisfaction in their report.
The discussion on empowerment should cover its meaning and significance in the context of leadership and organizational behavior. It should explore how empowerment influences individuals' motivation and job satisfaction within the workplace. Students should draw connections between their empowerment scores, motivation levels, and job satisfaction to gain a deeper understanding of these interrelated concepts.
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The overall average on a process you are attempting to monitor is 75 units. The process standard deviation is 1.95, and the sample size is n=10. What would be the upper and lower controllimit for a 3-sigma control chart? Upper Control Limit (UCL) -units (round your response to two decimal places). Lower Control Limit (LCL))= units (round your response to two decimal places).
The lower control limit (LCL) for the 3-sigma control chart is approximately 73.15 units.
To calculate the upper control limit (UCL) and lower control limit (LCL) for a 3-sigma control chart, we need to use the process average, standard deviation, and sample size.
The UCL for a 3-sigma control chart is calculated as follows:
UCL = Process Average + (3 * Process Standard Deviation / √Sample Size)
Substituting the given values:
UCL = 75 + (3 * 1.95 / √10)
Calculating the value:
UCL = 75 + (5.85 / 3.16) ≈ 76.85
Therefore, the upper control limit (UCL) for the 3-sigma control chart is approximately 76.85 units.
Similarly, the LCL for a 3-sigma control chart is calculated as follows:
LCL = Process Average - (3 * Process Standard Deviation / √Sample Size)
Substituting the given values:
LCL = 75 - (3 * 1.95 / √10)
Calculating the value:
LCL = 75 - (5.85 / 3.16) ≈ 73.15
Therefore, the lower control limit (LCL) for the 3-sigma control chart is approximately 73.15 units.
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Time left 1:23:43 On 1 April 2019, Lisa borrowed $30322 at an interest rate of 2.37% from her employer, Solarcity Pty Ltd. This was lower than that offered to the public. Lisa uses the entire amount to replace the loan on her main residence. No part of the expense would have been deductible to Lisa under the Tax Acts. Solarcity Pty Ltd is not entitled to claim input tax credit for GST purposes. Required: Calculate the Fringe Benefits Tax that Solarcity Pty Ltd is liable to pay on this loan fringe benefit for the 2020 FBT year. Only enter numbers & round to the nearest dollar Answer:
The fringe benefit tax that Solarcity Pty Ltd is liable to pay on the loan fringe benefit for the 2020 FBT year can be calculated as shown below .
Loan benefit amount = $30322 Fringe benefit tax rate for the 2020 FBT year = 47%Interest rate = 2.37%Discount rate = 1.88%The taxable value of the loan benefit can be determined using the formula;TV = (1 - R / D) x LWhere;TV = Taxable valueL = Loan benefit amountR = Interest rateD = Discount rate.
Therefore,TV = (1 - 0.0237 / 0.0188) x $30322= 0.189 x $30322= $5737.98 Fringe benefit tax payable = FBT rate x TV= 0.47 x $5737.98= $2695.31Rounding to the nearest dollar, the Fringe Benefits Tax that Solarcity Pty Ltd is liable to pay on this loan fringe benefit for the 2020 FBT year is $2695.
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To calculate the Fringe Benefits Tax (FBT) liability for Solarcity Pty Ltd on the loan fringe benefit provided to Lisa, we need to consider the FBT rate and the taxable value of the benefit. After calculation, the FBT rate for the 2020 FBT year is 47%.
Fringe Benefits Tax (FBT) is a tax imposed on employers for the benefits they provide to their employees or their employees' associates in place of or in addition to their salary or wages. These benefits are provided as part of an employment relationship and are separate from regular salary or wages.
The purpose of FBT is to ensure that the value of fringe benefits provided to employees is included in their overall taxable income and subject to taxation.
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The Scenario Jasmine Patel, Director of Human Resources At Vertical Horizon, Sits at her desk thinking about what to do next
Jasmine Patel, who is the Director of Human Resources at Vertical Horizon, is in a dilemma as she thinks about what to do next. The scenario could be that there is a problem in the company and she has to find a solution to it. The first thing that Jasmine should do is to analyze the situation by identifying the problem and the root cause of it.
She should also gather relevant information, data, and statistics to support her analysis and make an informed decision.In doing this, she can involve her team of experts in human resources to brainstorm ideas on how to solve the problem. This will not only promote teamwork but also help her get different perspectives on the issue. She can also involve other departments in the company to provide insights that will be helpful in finding a solution. In some cases, outsourcing the issue to a specialist firm may be the best course of action.
In whatever decision she makes, she should consider the company’s objectives and culture, the impact of her decision on employees, and the legal and ethical implications of her decision. She should communicate her decision clearly to the relevant stakeholders and follow up with an evaluation of the effectiveness of the solution implemented.In conclusion, Jasmine should remain calm, analytical, and methodical in approaching the problem. She should seek expert advice where necessary and always prioritize the interests of the company and its employees.
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apple inc is a well known global electronic and technology company with a presence in Africa. the company has engaged your service as a consultant to advice on its expansion strategy.
how will a company design an organisational structure bused on a differentiation strategy given the focus on uniqueness broad market?
Why should apple consider adaptive culture over rigid culture
Per apple strategy, would you recommend a small or large organisation? Justify your answer
Apple Inc. is a well-known global electronic and technology company that has a presence in Africa. The company has engaged your service as a consultant to advise on its expansion strategy. In this context, let's discuss the company's organizational structure, cultural strategy, and recommendations of a small or large organization based on Apple's strategy.
Designing an organizational structure based on differentiation strategy given the focus on uniqueness and broad market requires the management team to focus on the production of different products for different customers. Apple Inc. produces different types of products, which provide customers with a variety of choices. In this way, the organizational structure should be designed in such a way that each product has its own department or division, and each department is responsible for its own product line. The following features may be included in the organizational structure:Product-oriented departments, where each department has its own department headResponsible managers for each departmentInnovation and creativity encouragedCollaboration among departments to ensure high-quality products are produced.In conclusion, the organizational structure should focus on the differentiation strategy that Apple Inc. uses, with different product lines focusing on uniqueness and broad market.Adaptive culture is a system where a company has an ability to adjust to changes in the environment and the industry. Apple Inc. should consider adaptive culture over rigid culture because the company is in an industry that is rapidly changing. In this context, the company needs to be able to adjust to new and emerging technologies. An adaptive culture ensures that the organization has the ability to adjust to new conditions, such as changes in the market, competition, and customer needs.In conclusion, Apple Inc. should consider adaptive culture over rigid culture because it allows the company to adjust to changing conditions in the industry, which is essential for its continued success.Per Apple's strategy, a large organization is recommended. Apple is a multinational technology company, and its success depends on its ability to manufacture and distribute its products worldwide. Apple's products are popular worldwide, and a large organization is best suited to manage the production and distribution of these products. A large organization also ensures that Apple can expand into new markets and reach more customers. Therefore, a large organization is the most appropriate for Apple's strategy.
In conclusion, a large organization is recommended for Apple's strategy as it allows the company to manage its production and distribution worldwide and expand into new markets and reach more customers.
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1.
Name three ways to link HR strategy to business strategy. (150
words minimum)
The human resource strategy must align with the overall business strategy to increase the organization's efficiency and effectiveness. The HR strategy must cater to the workforce and ensure that their needs and goals align with the organization's objectives.
Here are three ways to link human resource strategy to business strategy:1. Identify the goals of the business strategy: To align HR strategy with business strategy, the HR department must know the goals and objectives of the business. HR strategy must be designed to support the business's mission and objectives. For example, if the business aims to expand into new territories, HR must hire and train new employees to support this expansion.2. Develop HR policies that align with business strategy: The policies that HR creates must support the business strategy. The HR policies must be designed to create a culture that aligns with the business's core values.
For instance, if the business aims to be environmentally friendly, HR can implement policies that focus on eco-friendly practices.3. Analyze workforce capabilities and skills: To align the HR strategy with the business strategy, HR must analyze the workforce's capabilities and skills. If the business aims to develop a new product, HR must ensure that the workforce has the right skills to achieve this goal. In conclusion, HR strategy is an essential aspect of any business strategy. The HR department plays a critical role in linking the HR strategy with the business strategy.
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Suppose that two factors have been identified for the Canadian economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 2%, and IR 5.0%. A stock with a beta of 0.8 on IP and 0.4 on IR currently is expected to provide a rate of return of 11%. If industrial production actually grows by 5%, while the inflation rate turns out to be 7.0%, what is your revised estimate of the expected rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Given data:
Growth rate of industrial production, IP = 2%
Inflation rate, IR = 5.0%
A stock with a beta of 0.8 on IP and 0.4 on IR currently is expected to provide a rate of return of 11%
Beta of IP = 0.8
Beta of IR = 0.4
Rate of return on stock, R = 11%
To Find:
Revised estimate of the expected rate of return on the stock
We know that the relation between expected return and beta can be represented by the following formula;
R = Rf + βi (RM – Rf)
Where,
Rf is the risk-free rate of return,
RM is the market rate of return.
βi is the sensitivity of the expected excess asset returns to the expected excess market returns
Now, R = Rf + βi (RM – Rf)11% = Rf + 0.8(RM – Rf) + 0.4(RM – Rf)11% = Rf + 1.2(RM – Rf)
[Multiplying and simplifying by 10]
11% = Rf + 1.2RM – 1.2Rf11% – Rf = 1.2RM – 1.2Rf
[Taking Rf to LHS]
11% – Rf + 1.2Rf = 1.2RMRf(1.2 – 1) = 0.11 * 1.20.2Rf = 0.132Rf = 0.66 or 6.6%
So, RM = (11% – 6.6%) / 1.2RM = 3.5%
Now, revised estimate of the expected rate of return on the stock is given as,
R = Rf + βi (RM – Rf)R = 6.6% + 0.8 (3.5% – 6.6%) + 0.4 (7.0% – 5.0%)R = 6.6% – 0.248 + 0.8%R = 7.152%
Therefore, the revised estimate of the expected rate of return on the stock is 7.2%.
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Ronald Coase's theorem suggest that climate change is a tricky problem to solve because: O Humans do not care about climate change. Individual nations do not have property rights over the climate. Releasing greenhouse gases causes GDP to rise. Pollutants cross national borders. 0.5 pts
The Ronald Coase's theorem suggests that climate change is a tricky problem to solve because pollutants cross national borders.The Ronald Coase's theorem is an economic concept that was proposed by the Nobel laureate Ronald Coase.
It states that in the presence of transaction costs, an efficient allocation of property rights may not emerge, and hence externalities might persist.Therefore, this theorem suggests that when it comes to climate change, it is hard to create an efficient allocation of property rights. Climate change is a tricky problem to solve since pollutants can cross national borders. This is because no single nation has the ability to control climate change by itself. Hence, to address the issue of climate change, it is crucial for different nations to work together. They need to come up with an agreement to create a solution to mitigate this problem and reduce the effects of climate change. Therefore, this is why the issue of climate change is a complex problem to solve since it requires international cooperation.
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A monopolistically competitive firm and a monopoly are similar because:
a. both firms will earn zero profits in the long run.
b. both firms always operate at their point of minimum average total cost.
c. each firm can raise its price without losing all of its sales.
d. both firms must behave strategically toward other firms in the industry.
e. each firm has a large number of small competitors.
A monopolistically competitive firm and a monopoly are similar because c. each firm can raise its price without losing all of its sales.
Both a monopolistically competitive firm and a monopoly have the ability to raise their prices without losing all of their sales. In a monopolistically competitive market, firms differentiate their products in terms of quality, branding, or other attributes, allowing them to have some degree of market power. This means that they can increase their prices to a certain extent without losing all of their customers, as consumers may still value the unique features offered by the product.
Similarly, a monopoly is a market structure where there is only one seller of a particular product or service. As the sole provider, the monopoly has full control over the price and quantity of the product. It can raise prices and still retain a significant portion of its customers because there are no close substitutes available in the market.
However, it is important to note that while both types of firms have the ability to raise prices without losing all sales, monopolistically competitive firms face more competition from other similar firms compared to a monopoly, which is the sole player in the market.
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Guido is a manufacturing firm producing several products for the local market. The following data relates to a new product called the ZITE 7 to be launched on 1 March 2022. Selling price £25 per unit Forecast sales volume 60,000 units Variable costs £20 per unit Fixed costs £180,000 Required: Using the information above, calculate the minimum sales revenue (£s) needed to meet a target profit of £60,000 (4 marks)
The minimum sales revenue needed to meet a target profit of £60,000 is £300,000.
To calculate the minimum sales revenue needed to meet a target profit of £60,000 for the ZITE 7 product, we need to consider the fixed costs, variable costs, and the target profit.
First, let's calculate the total fixed costs. Given that the fixed costs are £180,000, we can use this figure as it is.
Next, we need to calculate the contribution margin per unit. The contribution margin is the selling price per unit minus the variable cost per unit. In this case, the selling price is £25 per unit, and the variable cost is £20 per unit. Therefore, the contribution margin per unit is £25 - £20 = £5.
Now, let's calculate the breakeven point in units. The breakeven point is the level of sales at which the company covers all its costs and does not make a profit or loss. To calculate the breakeven point, we divide the total fixed costs by the contribution margin per unit: £180,000 / £5 = 36,000 units.
Since the target profit is £60,000 and the breakeven point is 36,000 units, we need to calculate the additional units needed to achieve the target profit. This can be done by dividing the target profit by the contribution margin per unit: £60,000 / £5 = 12,000 units.
Finally, to calculate the minimum sales revenue needed, we multiply the additional units needed by the selling price per unit: 12,000 units × £25 = £300,000.
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Which of the following is a positive aspect of advertising for
consumers?
A. It increases the profits for the company.
B. It provides information that might be useful to the
customers.
C. Advertising
According to the question The correct option is B. It provides information that might be useful to the customers. Advertising plays a crucial role in providing information that can be useful to consumers.
It serves as a medium to convey details about products or services, including their features, benefits, pricing, availability, and promotional offers. Through advertising, consumers can become aware of new products in the market, compare different options, and make informed purchasing decisions.
By presenting information in a clear and compelling manner, advertising helps consumers understand the value and utility of a product. It educates them about the product's attributes, such as its quality, performance, durability, and unique selling propositions. This information empowers consumers to make choices that align with their needs, preferences, and budget advertising also
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Blaser Corporation had $1,017,000 in invested assets, sales of $1,229,000, operating income amounting to $207,000 , and a desired minimum return on investment of 12%. The return on investment for Blaser Corporation is
Round the percentage to one decimal place.
a.20.4%
b.16.8%
c.24.4%
d.13.5%
To calculate the return on investment (ROI) for Blaser Corporation, we need to divide the operating income by the invested assets and express it as a percentage. The formula for ROI is:
ROI = (Operating Income / Invested Assets) * 100
Given that Blaser Corporation had an operating income of $207,000 and invested assets of $1,017,000, we can substitute these values into the formula:
ROI = (207,000 / 1,017,000) * 100
Calculating this expression gives us:
ROI ≈ 20.35%
Rounding to one decimal place, the return on investment for Blaser Corporation is approximately 20.4%.
Therefore, the correct answer is option a. 20.4%.
This means that Blaser Corporation earned a return on its invested assets of 20.4%, which is above its desired minimum return of 12%. It indicates that the company's operations were efficient and generated a favorable return compared to the amount invested.
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