The correct answer is C) Use less laborExplanation:Marginal product of labor is equal to the extra amount of output produced when one more unit of labor is added, while holding other factors of production constant. Marginal cost is the extra cost incurred when one more unit of input is used, while holding all other inputs constant.
The ideal level of labor in the short term is reached when the marginal revenue product of labor (MRPL) equals the wage rate. MRPL is the additional revenue earned by the company by employing one more unit of labor. The extra revenue earned by hiring one more unit of labor is also referred to as the value of the labor product.The firm should employ more labor if the MRPL is greater than the wage rate.
On the other hand, the firm should employ less labor if the MRPL is less than the wage rate. The optimal level of employment is where the MRPL equals the wage rate. The firm should use less labor when the magical product of labor is 80 units, the weekly cost per unit of labor is $1,200, and the selling price is $20 per unit of output.Because the selling price of output is less than the marginal cost of labor, the firm should decrease the amount of labor used. As a result, Option C is the appropriate option.
The firm should use less labor because MRPL is less than the wage rate, indicating that the cost of adding an additional unit of labor is greater than the revenue generated by hiring one more unit of labor. Therefore, the optimal solution for the firm is to reduce the use of labor.
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the first major component of the planning process in public relations is a
The first major component of the planning process in public relations is setting objectives and goals.
Setting objectives and goals is a crucial step in the planning process of public relations. It involves clearly defining what the organization aims to achieve through its public relations efforts. Objectives and goals provide a clear direction and purpose for the PR campaign or program, guiding the activities and strategies that will be implemented. They help in measuring the success and effectiveness of the PR initiatives and serve as a benchmark for evaluating the outcomes.
Objectives can vary depending on the specific needs and circumstances of the organization, such as enhancing brand reputation, increasing public awareness, managing a crisis, or promoting a new product or service. By setting clear objectives and goals, PR professionals can align their efforts and resources towards achieving the desired outcomes and ensuring a focused and effective public relations campaign.
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Discuss the terms of the 1868 treaty with the Sioux tribes using specific examples from the online primary source document.
What was the purpose and significance of the Treaty and what impact did it have on the Sioux cultures? Be sure to cite specific examples from the treaty in your discussion.
How did the treaty of 1868 create a reservation? What was the purpose of the reservation system?
The Treaty of 1868, also known as the Fort Laramie Treaty, was a significant agreement between the United States government and the Sioux tribes. It aimed to establish peace and define the boundaries of the Great Sioux Reservation.
The purpose of the Treaty of 1868 was to establish a peaceful relationship between the U.S. government and the Sioux tribes, particularly the Lakota Sioux. It recognized the Black Hills region as sacred land for the Sioux and guaranteed their exclusive rights to it. However, following the discovery of gold in the Black Hills, the U.S. government violated the treaty by allowing non-Native settlers to enter the area, leading to conflicts and the eventual loss of the land.
The treaty's impact on Sioux cultures was significant. It marked a transition in their traditional way of life, as they were confined to the Great Sioux Reservation, which covered a vast territory in present-day South Dakota, Wyoming, and Nebraska. The reservation system imposed by the treaty restricted the Sioux's mobility, access to traditional hunting grounds, and independence.
In terms of the creation of reservations, the Treaty of 1868 allocated specific lands for the Sioux tribes. It established the boundaries of the Great Sioux Reservation, designating it as their permanent homeland. However, subsequent events, such as the violation of the treaty and the encroachment of non-Native settlers, led to the fragmentation and reduction of the reservation. The U.S. government eventually seized portions of the reservation, including the coveted Black Hills, which further undermined Sioux sovereignty and cultural preservation.
The purpose of the reservation system was twofold. First, it aimed to confine Native American tribes to designated lands, making way for non-Native settlers to expand westward. Secondly, it sought to assimilate Native Americans into Euro-American society by encouraging them to adopt an agricultural lifestyle and abandon their traditional cultural practices. The reservation system effectively disrupted the social and economic fabric of the Sioux tribes and resulted in the loss of their ancestral lands, leading to profound and lasting consequences for their cultures and ways of life.
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Operating on a global scale is one goal of collaborative commerce.
true/false
The given statement "Operating on a global scale is one goal of collaborative commerce" is true because Collaborative commerce (c-commerce) is an electronic trade initiative.
It links companies together so that they can share expertise, provide quick time-to-market solutions, and reduce costs while still increasing their product and service offerings on a global scale. This goal can be achieved by reducing the risk and increasing the reward for firms involved in an international trading venture by reducing the barriers to trade. It promotes and encourages collaboration and cooperation among trading partners. Hence, it can be concluded that the statement "Operating on a global scale is one goal of collaborative commerce" is true.
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What is an internal force that can stimulate the need for change? A) competitors' pricing decisions B) labour market C) changes in employees' expectations D effective date of new federal employment law
(C) Changes in employees' expectations act as a catalyst for organizational change, prompting the need to adapt and align practices to maintain employee satisfaction and engagement.
Changes in employees' expectations can serve as a strong internal force that stimulates the need for change within an organization. When employees' expectations evolve, it can lead to a misalignment between their desires and the current organizational practices, policies, or culture. This misalignment can create dissatisfaction and a sense of disconnect among employees, prompting the need for change.
Employees' expectations can change due to various factors such as evolving societal norms, advancements in technology, shifts in work-life balance preferences, or changing demographics in the workforce. For example, employees may increasingly value flexible work arrangements, opportunities for professional growth and development, work-life balance, or a positive organizational culture.
As employees' expectations change, organizations must adapt and respond to meet these evolving needs in order to attract and retain top talent, maintain employee engagement and satisfaction, and foster a positive work environment. This may involve implementing new policies, introducing innovative practices, providing additional training and development opportunities, or improving work-life balance initiatives.
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Explain the difference between a change in supply and a change in the quantity supplied.
The market equilibrium price and market equilibrium quantity of a good are determined how? Why is this important?
What are the economic effects of a price ceiling such as rent controls? Include ALL significant effects.
Change in supply is when the quantity supplied of a good or service changes due to a shift in the supply curve. This shift in supply can be caused by a number of factors, including changes in technology, input prices, or government policy.
On the other hand, the change in the quantity supplied is a movement along the supply curve due to a change in the price of the good or service being supplied. It is important to note that a change in the quantity supplied only occurs when there is a change in price. This is because the quantity supplied is directly related to the price of the good or service.The market equilibrium price and market equilibrium quantity of a good are determined by the intersection of the supply and demand curves. At this point, the quantity demanded and quantity supplied are equal, meaning that there is no excess supply or excess demand. This is important because it indicates that the market is operating efficiently and that resources are being allocated in the most efficient way possible.A price ceiling, such as rent controls, can have a number of economic effects. Some of the significant effects include:1. Shortages: A price ceiling can cause a shortage of the good or service being sold because the price is below the market equilibrium price. This can lead to long waiting times, rationing, and black markets.2. Reduced Quality: A price ceiling can also lead to reduced quality of the good or service being sold because producers are unable to charge a higher price for higher quality.3. Misallocation of Resources: A price ceiling can cause a misallocation of resources because producers may not be able to make a profit at the lower price, leading to a decrease in production and investment in that sector.4. Deadweight Loss: A price ceiling can also lead to a deadweight loss because the quantity supplied is less than the quantity demanded, which means that some people who would have been willing to pay a higher price for the good or service are not able to obtain it.
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What is the difference between common stock and preferred stock? Describe the characteristics of each type of stock.
Common Stock and Preferred Stock are the two types of stocks. These two types of stock are very different from each other in terms of characteristics.
The difference between Common Stock and Preferred Stock can be explained as follows:
1. Ownership: Owning a common stock provides the shareholder with partial ownership of the company, as well as the right to vote on company matters, such as the election of board members, stock splits, and other corporate decisions.
Preferred stocks, on the other hand, do not provide shareholders with voting rights, but they do have priority over common stockholders when it comes to dividend payments.
2. Dividends: A dividend is a payment that a corporation makes to its shareholders.
Companies are not obligated to pay dividends to their common stockholders; however, if they choose to do so, the dividends must be paid out to all common stockholders on a pro-rata basis.
Preferred stock dividends, on the other hand, are paid out to preferred stockholders before common stockholders receive their dividend payments.
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After completing its capital spending for the year, Carlson Manufacturing has $1,100 extra cash. Carlson's managers must choose between investing the cash in Treasury bonds that yield 2 percent or paying the cash out to investors who would invest in the bonds themselves. a. If the corporate tax rate is 21 percent, what personal tax rate would make the investors equally willing to receive the dividend or to let Carlson invest the money? (Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.) Personal tax rate b. Is the answer to (a) reasonable? Yes No % c. Suppose the only investment choice is a preferred stock that yields 5.7 percent. The corporate dividend exclusion of 50 percent applies. What personal tax rate will make the stockholders indifferent to the outcome of Carlson's dividend decision? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Personal tax rate d. Is this a compelling argument for a low dividend-payout ratio? O Yes O No
The personal tax rate would be 40%.Explanation:Given,Extra cash available with the company= $1,100Corporate tax rate= 21%The yield on Treasury bonds= 2%Let the personal tax rate be 'x'.So, investors receive a dividend of (1- x) and they can also get the yield from investing in Treasury bonds.
The yield on investment in Treasury bonds= 2%Corporate tax rate= 21%After-tax yield on Treasury bonds= 2% (1- 21%)= 1.58%For investors, yield after paying personal taxes = 2% (1- x)To be indifferent, both the yields must be equal. Hence, we can write:2% (1- x)= 1.58%Solving for 'x', we get:x= 40%
The personal tax rate would be 40%.b. The answer to (a) is reasonable. Yes.Explanation:The answer to part (a) is reasonable because the personal tax rate is greater than the corporate tax rate. Therefore, the dividend received by the investors would be taxed more than the amount of tax paid by the company if it invests in Treasury bonds.
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Should insurance companies spread the risk amongst all of their policyholders as is often done in automobile insurance or is there a better way to deal with the matter of risk? Describe how this might be accomplished and argue why this is a good or bad practice.
Spreading the risk amongst policyholders through risk pooling is a common and effective practice in insurance. It enables the affordability and accessibility of insurance coverage while providing stability and protection for individuals. Considering the nature of the risks involved and the potential for more specialized or alternative risk management strategies.
By spreading the risk, insurance companies can ensure that the cost of claims is shared by a broader base, making insurance more affordable and accessible for everyone. This approach also provides a level of predictability and stability for policyholders, as they are protected from potentially catastrophic losses. However, it is worth noting that risk pooling may not be suitable for all types of insurance. In certain cases, specialized insurance products or alternative risk management strategies might be more appropriate. For example, in situations where specific risks can be accurately assessed and priced, customized policies or risk-sharing arrangements might offer more tailored coverage and cost efficiencies.
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what is the role of a Travel Professional in the planning of events related food and beverage?
A Travel Professional plays a crucial role in the planning of events related to food and beverage.
They are responsible for coordinating and arranging all aspects of the travel experience, including accommodation, transportation, and activities. When it comes to events involving food and beverage, the Travel Professional's role extends to ensuring a seamless and enjoyable dining experience for their clients.
Firstly, the Travel Professional works closely with the client to understand their preferences, dietary restrictions, and budgetary constraints. They then collaborate with event planners and catering services to curate a menu that meets these requirements and creates a memorable culinary experience. They may also assist in selecting appropriate venues for the events, considering factors such as capacity, ambiance, and suitability for food service.
Additionally, the Travel Professional coordinates logistics such as arranging reservations, coordinating meal timings, and ensuring smooth delivery of food and beverages during the events. They also stay updated on the latest food and beverage trends, local specialties, and dining options in the destination, providing valuable recommendations and insights to enhance the overall event experience.
In summary, a Travel Professional is responsible for integrating food and beverage elements seamlessly into the event planning process, ensuring client satisfaction and a memorable dining experience for all participants.
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Which of the following is NOT true of the Securities Act of 1933? Its aim is to deter fraud by regulating the way that securities are offered to the public. It was enacted after the 1929 stock market crash, when many people thought unregulated securities trading was the cause of the crisis. It requires issuers of securities who make offers to the public to register with the SEC. It requires registration from securities issued by federal, state, and local governments.
Which of the following is NOT true of the Securities Act of 1933?
Its aim is to deter fraud by regulating the way that securities are offered to the public.
It was enacted after the 1929 stock market crash, when many people thought unregulated securities trading was the cause of the crisis.
It requires issuers of securities who make offers to the public to register with the SEC.
It requires registration from securities issued by federal, state, and local governments.
The statement that is not true of the Securities Act of 1933 is "It requires registration from securities issued by federal, state, and local governments.
"What is the Securities Act of 1933?
The Securities Act of 1933 is a federal law that aims to deter securities fraud by regulating the way securities are offered to the public. This act was enacted in response to the 1929 stock market crash, which many people believed was caused by unregulated securities trading.
The Securities Act of 1933 requires issuers of securities that offer securities to the public to register with the SEC. The registration process necessitates that issuers provide financial data and other information about their business to the SEC for public viewing.
This helps to prevent fraud and allows investors to make more informed decisions when investing in securities. While the Securities Act of 1933 does not require registration of securities issued by federal, state, or local governments. Therefore, the statement "It requires registration from securities issued by federal, state, and local governments" is NOT true of the Securities Act of 1933.
The Securities Exchange Act of 1934, which was also enacted to regulate securities trading, requires federal securities regulation of government securities. However, the Securities Act of 1933 does not require the registration of government securities.
Hence, the answer is option D: It requires registration from securities issued by federal, state, and local governments.
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6 DETAILS BRECMOC9 9.111 TB.004. MY NOTES ASK YOUR TEACHER The weekly payroll of Ahkar Hardware incudes 19 employees who cam 1220 each. How much is the loyer's share of total Social Security and Medicare tases for the first quarter of the war 218.46 $436.92 54,157.01 18,314,02 Need Help?
The employer's share of total Social Security and Medicare taxes for the first quarter of the year is $4,157.01.
To calculate the employer's share of total Social Security and Medicare taxes for the first quarter of the year, we need to determine the total amount of wages paid to the employees and then calculate the taxes based on the applicable rates.
In this case, the weekly payroll of Abkar Hardware includes 19 employees who earn $220 each. To find the total wages for the quarter, we multiply the weekly wage by the number of employees and the number of weeks in the quarter (which is typically 13 weeks):
Total wages = Weekly wage * Number of employees * Number of weeks
= $220 * 19 * 13
= $55,660
The employer's share of Social Security tax is 6.2% of the total wages, and the employer's share of Medicare tax is 1.45% of the total wages. To calculate the taxes for the first quarter, we multiply the total wages by the respective tax rates:
Social Security tax = Total wages * Social Security tax rate
= $55,660 * 6.2%
= $3,452.12
Medicare tax = Total wages * Medicare tax rate
= $55,660 * 1.45%
= $807.17
Therefore, the employer's share of total Social Security and Medicare taxes for the first quarter of the year is $3,452.12 + $807.17 = $4,259.29. Rounding to the nearest cent, the answer would be $4,259.29, which is closest to option $4,157.01.
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Here is the complete question:
The weekly payroll of Abkar Hardware includes 19 employees who earn $220 each. How much is the employer's share of total Social Security and Medicare taxes for the first quarter of
the year?
$218.46
$436.92
$4157.01
$8314.02
Pete Promoter was the producer of music concerts that used fireworks as a means to create excitement among the crowd. His lawyer advised him to have everyone who attended his concerts sign a document containing an exculpatory clause releasing Pete and his company from any and all liability, whether resulting from an intentional, reckless or negligent act. On one tragic Saturday night, Pete decided to exceed the fire code's requirements with regard to his fireworks display by putting more explosives in the fireworks than allowed by the code knowing that this would cause a hazard. When the fireworks were set off, some of the drapery around the stage burst into flames and killed several of those attending the concert who were sitting close to the stage. The families of those killed brought suit against Pete and his company, but Pete moved to dismiss the suit because of the exculpatory clause in the document signed by those attending the concert. How should the court rule on Pete’s motion? Explain your answer.
The court should not accept Pete’s motion to dismiss the suit based on the exculpatory clause included in the document signed by those attending the concert.
This is because, in this case, Pete went beyond the acceptable standards and deliberately exceeded the fire code's requirements, which led to the death of several individuals who attended the concert.Exculpatory clauses are usually used to reduce the risk of being sued by people who attend an event, but in this case, it would not be upheld by the court. The clause is intended to relieve a person from the consequences of their own negligence and to shield them from being held accountable for it. However, in this case, Pete deliberately violated the fire code, putting the lives of those attending the concert at risk, and therefore the exculpatory clause cannot be enforced.This is also in line with the general principle of law, which is that public policy will not tolerate such a clause that would shield a person from liability in cases of gross negligence or willful harm to others. Since Pete knew that his actions could put the lives of others at risk and still went ahead with them, the court should rule that the exculpatory clause is not valid, and Pete and his company should be held liable for the death of those who attended the concert.
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New Chapter Inc. does not expect to initiate dividends for 15 years. At the end of Year 15, the company will
start to pay dividends and expects its dividends to grow at 4.5% forever. The company has an 10.5% required
rate of return.
i. What is an estimate of the company’s stock price at the beginning of the 15th year (the end of 14th
year) if its dividend at the end of year 15 is $2.5? [Round your answer to two decimal places.]
ii. What is the company’s stock price in today's dollars if the desired rate of return is 10.5%? [Hint: use
14 years for the number of periods.]
iii. Identify two or more possible reasons that the company does not plan to initiate dividend in the
beginning years. Briefly explain. [Note: The discussion must be in your own words. Word limit: 60
words, excluding figures; answers beyond word limit will not be marked.]
b) Low Carbon Ltd has preferred stock with a par value of $50 and an annual $2.5 cumulative dividend. An
investor is willing to pay $15 for this preferred stock. What yield or rate of return is this investor seeking for
the investment? Show all work and formula(s) clearly.
i.The company’s stock price at the beginning of the 15th year is $41.67. ii. The company’s stock price in today's dollars is $11.27.
iii. New Chapter Inc. does not plan to initiate dividend.
i. The formula to calculate the stock price is as follows: P = D / (R - G), where P is the stock price, D is the dividend paid, R is the required rate of return, and G is the growth rate of dividends.
Given, D = $2.5, G = 4.5%, and R = 10.5%.
We can use this to calculate the stock price at the beginning of the 15th year:
P = $2.5 / (10.5% - 4.5%)
= $41.67.
ii. To calculate the company’s stock price in today's dollars, we need to discount the future dividend payments.
We can use the present value of growing perpetuity formula to do this: PV = D / (R - G), where PV is the present value, D is the dividend at the end of year 15, R is the required rate of return, and G is the growth rate of dividends.
Given, D = $2.5, G = 4.5%, and R = 10.5%.
We can use this to calculate the present value of the dividend payments at the end of year 15:
PV = $2.5 / (10.5% - 4.5%)
= $41.67.
To get the stock price in today's dollars, we need to discount this amount back 14 years, which is the number of periods: P0 = PV / (1 + R)ⁿ, where n is the number of periods.
Therefore, P0 = $41.67 / (1 + 10.5%)¹⁴
= $11.27.
iii. By retaining earnings and reinvesting in the business, the company can fund new projects, develop new products, and expand into new markets.
This can lead to higher profits and higher stock prices in the future. Another possible reason is that the company is in a capital-intensive industry, which requires significant investments in fixed assets.
By retaining earnings, the company can fund these investments without having to raise additional capital through debt or equity issuances.
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Your Friends' Questions Company Overview 1. Big Rock is a publicly-traded corporation. If I want to become a shareholder in Big Rock, what advantages does this legal form offer to me? 2. Who are the other main users of the financial statements? (Hint: Consider how the total assets of Big Rock have been "financed" other than through shareholder investment.) 3. Is Big Rock a Merchandiser, Manufacturer, or a Service-Based Company? What indicators exist on the Statement of Financial Position to support your answer? 4. What types of long-term assets has Big Rock invested in to operate its business? 5. What "risks" or competitive pressures would impact Big Rock's operations? Think of industry trends, substitute products, seasonality, and other market forces. The Consolidated Statement of Comprehensive Income 6. What is Big Rock's revenue recognition policy? 7. Is Big Rock profitable? What is "quality of earnings"? Does Big Rock have quality earnings? 8. I've noticed that net sales revenue has increased in total dollars, but I'm wondering what Big Rock's profitability looks like when factoring out "size" due to growth. I've heard profitability ratios can allow for this. Could you calculate & explain the following ratios to me? a. Gross Margin Ratio b. Profit Margin Ratio c. Return on Equity d. Return on Assets Are the trends favorable or unfavorable? Why? What reasons could have accounted for these changes? 9. Earnings Per Share (EPS) is disclosed at the bottom of the Statement of Comprehensive Income. What does this mean? Why was the EPS for 2017 negative? The Cash Flow Statement 10. What information does the cash flow statement provide that is different from the Consolidated Statement of Comprehensive Income? And how does this relate to analyzing the quality of earnings of Big Rock? 11. What type of cash flow pattern does Big Rock have in the current and the prior year? Are there any items of concern that I should be aware of? Or is management doing a good job in handling the cash of the business? The Consolidated Statement of Financial Position 12. What is meant by the term "capital structure"? 13. Calculate and explain the following ratios for the current & the prior year: a. Debt Ratio b. Equity Ratio c. Interest Coverage Ratio Is the change in each ratio favorable or unfavorable? How does this relate to overall risk with respect to investing in the shares of Big Rock? (Hint: Consider the pro's & cons of debt versus equity financing in your discussion.) 14. In the Equity section of the Statement of Financial Position, I see negative numbers for 2018 and 2017 called Accumulated Deficit? What does this mean? 15. What is liquidity and how is Big Rock doing with its liquidity position this year? Is it better or worse than last year? Calculate and explain the following ratios: a. Current Ratio b. Quick Ratio 16. Cash flows from regular operations are dependent on the ability to sell inventory and collect cash on credit sales. How many days on average would it take for Big Rock to sell finished goods inventory and collect cash from credit customers? Calculate and explain the following ratios: a. Days to Sell Inventory b. Average Collection Period Note to Students: Use ending balances for receivables and inventory balances instead of average balances. Also, for 13(0), do not include inventory related to raw materials, containers, or brews in progress as only completed brews would be sold to customers. 17. Note 11 to the financial statements shows an A/R Aging. What is this? Are there any items of concern when you examine the A/R Aging in 2018 relative to the prior year? Overall Conclusion 18. Overall, based on your analysis, should I purchase Big Rock shares? Or is this investment too risky? Explain your reasoning.
10. The cash flow statement is an essential part of a company's financial statement. It provides information about the company's cash inflows and outflows from operations, investing, and financing activities.
Unlike the Consolidated Statement of Comprehensive Income, the cash flow statement focuses on cash transactions rather than accounting transactions. It helps to understand the quality of earnings because it shows where the cash is coming from and how it is being used.
11. Big Rock has a positive cash flow pattern in both the current and prior years. It generated a net cash inflow of CAD 34,930 in 2018 and CAD 33,602 in 2017 from operating activities.
It invested CAD 1,314 in 2018 and CAD 2,548 in 2017 in property, plant, and equipment, which shows that management is doing a good job of investing in the growth of the business. It financed its activities primarily through cash inflows from operating activities rather than borrowing, which indicates that it has good cash flow management.
12. Capital structure refers to the mix of debt and equity financing used by a company to fund its operations.
14. Accumulated deficits can also arise from other factors such as write-offs of intangible assets or changes in accounting policies. It is a concern for investors because it indicates that the company has not generated sufficient profits to sustain its operations and growth.
15. Big Rock has a good liquidity position this year, as shown by the following ratios: Current ratio = Current assets / Current liabilities. Quick ratio = (Cash + Marketable securities + Accounts receivable) / Current liabilitiesThe current ratio measures the company's ability to pay its short-term obligations using its current assets. The quick ratio is a more conservative measure of liquidity that excludes inventory from the calculation.
16. The following ratios can be calculated to determine how long it takes Big Rock to sell inventory and collect cash from credit customers: Days to sell inventory = (Inventory / Cost of goods sold) x 365 Average collection period = (Accounts receivable / Net credit sales) x 365Days to sell inventory measures the number of days it takes for the company to sell its inventory.
A low days-to-sell inventory ratio is favorable because it indicates that the company is selling its inventory quickly. The average collection period measures the number of days it takes for the company to collect cash from its credit customers.
A low average collection period is favorable because it indicates that the company is collecting its receivables quickly. The ending balances for receivables and inventory balances should be used instead of average balances. For the calculation of the average collection period, only accounts receivable related to net credit sales should be used.
17. A/R aging is a report that shows how long the company's accounts receivable have been outstanding and how much is owed by each customer.
It is used to determine how quickly the company is collecting its receivables and to identify any potential bad debts. There are no items of concern when examining the A/R aging in 2018 relative to the prior year.
The average collection period has improved slightly, which indicates that the company is collecting its receivables more quickly.
18. Based on the analysis, it is recommended to purchase Big Rock shares because the company has good profitability, liquidity, and solvency ratios. It has a positive cash flow pattern and is investing in long-term assets to grow the business.
The company has a good capital structure, with a reasonable mix of debt and equity financing. It has a good revenue recognition policy and has quality earnings. Although there are some risks and competitive pressures in the industry, the company has managed to maintain its position and profitability.
Overall, Big Rock is a good investment opportunity for investors who are looking for growth and income.
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Use the following information for the next 10 questions.
Assume that Tyrann Mathieu signs a new contract with the Kansas City Chiefs (NFL team) that covers 2020 - 2026. The terms of the contract are:
2020 salary: $3 million
2021 salary: $9 million
2022 salary: $11 million
2023 - 2026 salary: $14 million
Signing Bonus: $20 million
Option Bonus (paid in 2021): $5 million
The salary for 2020 - 2023 is guaranteed.
Assume bonuses are spread over as many years as allowed.
1).What is the salary cap amount for 2020?
2)What is the salary cap amount for 2021?
3)What is the salary cap amount for 2022?
4)What is the salary cap amount for 2025?
5)Assume the Chiefs cut Tyrann Mathieu in the offseason between 2022 and 2023 (pre-June 1 cut). What is the amount that will count against the salary cap for the Chiefs for 2023?
6)Assume the Chiefs cut Tyrann Mathieu in the offseason between 2024 and 2025 (pre-June 1 cut). What is the amount that will count against the salary cap for the Chiefs for 2025?
7)Assume the Chiefs cut Tyrann Mathieu in the offseason between 2025 and 2026 (pre-June 1 cut). What is the amount that will count against the salary cap for the Chiefs for 2026?
8)What is the salary cap amount for 2026?
The salary cap amount for each specified year in Tyrann Mathieu's contract with the Kansas City Chiefs will be calculated.
The salary cap amount for a particular year is the sum of the player's base salary, prorated bonuses, and any other relevant adjustments. The salary cap for each year is as follows:
The salary cap amount for 2020 is $3 million, which is Mathieu's base salary for that year.
The salary cap amount for 2021 is $14 million, calculated by adding Mathieu's base salary of $9 million, the prorated signing bonus of $20 million spread over 6 years ($3.33 million per year), and the option bonus of $5 million.
The salary cap amount for 2022 is $17 million, calculated by adding Mathieu's base salary of $11 million, the remaining prorated signing bonus of $16.67 million spread over 5 years ($3.33 million per year), and the option bonus of $5 million.
The salary cap amount for 2025 is $14 million, which is Mathieu's base salary for that year.
If the Chiefs cut Mathieu in the offseason between 2022 and 2023, the amount that will count against the salary cap for 2023 will be $3.33 million, which is the remaining prorated signing bonus for that year.
If the Chiefs cut Mathieu in the offseason between 2024 and 2025, the amount that will count against the salary cap for 2025 will be $3.33 million, which is the remaining prorated signing bonus for that year.
If the Chiefs cut Mathieu in the offseason between 2025 and 2026, the amount that will count against the salary cap for 2026 will be $3.33 million, which is the remaining prorated signing bonus for that year.
The salary cap amount for 2026 is $14 million, which is Mathieu's base salary for that year.
These calculations take into account the guaranteed salary, signing bonus, option bonus, and the prorated portions of the bonuses spread over the specified years. The salary cap amounts determine the team's financial obligations and help manage the team's payroll within the league's salary cap restrictions.
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Question 24 In the definition of marginal propensity to consume, marginal refers to O the total income someone receives as a result of government purchases O the amount of extra taxes someone pays as a result of government purchases O the amount of additional tax revenue that the government receives with new taxes O the additional amount of disposable income someone receives Question 25 What is the best definition of legal tender? O a medium of exchange that the government has officially declared to be money O a medium of exchange that has been established through custom or tradition O money that is backed by the gold standard O money that is in the form of metallic coins and printed paper Question 26 Until 1933, the U.S. dollar was backed by the O gold standard O word of the government O standard of living O silver standard
24. The marginal propensity to consume refers to the additional amount of disposable income someone receives.
The marginal propensity to consume (MPC) represents the additional amount of disposable income that individuals or households spend on consumption. It measures the change in consumption resulting from a change in income. It does not refer to government purchases or taxes, but rather the individual's response to changes in income.
For example, if an individual receives an extra $100 in income and decides to spend $80 of it, the marginal propensity to consume would be 0.8. It reflects the propensity or inclination of individuals to spend rather than save.
25. Legal tender is a medium of exchange that the government has officially declared to be money.
Legal tender refers to a medium of exchange that the government has officially declared to be acceptable as payment for goods and services within a specific country. It is the recognized form of currency that can be legally used for transactions. This definition emphasizes the government's authority in designating a particular currency as the official means of payment.
It is the currency that is considered valid and legally enforceable for settling debts and conducting transactions within a specific country. Legal tender can take various forms, including coins, banknotes, and electronic payment systems, depending on the country's legal framework.
26. Until 1933, the U.S. dollar was backed by the gold standard. The gold standard was a monetary system in which the value of a country's currency was directly linked to a fixed amount of gold.
Under this system, individuals could exchange their paper currency for a specified amount of gold. The gold standard provided stability and a tangible backing to the currency, as the value of the currency was tied to a valuable commodity.
However, the U.S. moved away from the gold standard in 1933 and adopted a different monetary system that allowed for more flexibility in monetary policy. This shift allowed the government greater control over the money supply and the ability to adjust interest rates to manage economic conditions.
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You are the Head of Production for a large food manufacturer with operations in Australia and New Zealand. The company is renowned for providing healthy food products. After years of poor profits, the new CEO, Alex Lee, started her job with the overriding goal of raising company profitability. In an effort to cut the cost of supplies, the Head of Procurement, Paul Jones, wants to buy supplies from a different, cheaper supplier. You can appreciate his point of view, but you are concerned that cheaper supplies would lower product quality. When you bring this concern to Alex, she says she wants you and Paul to work things out. But her instructions are unclear. ‘Sure, cutting costs is good for profits, but we also need to be careful to maintain our reputation for product quality.’
With reference to relevant organisational behaviour literature, what is the most effective conflict-resolution style for the above scenario? (4 marks) Compare this conflict resolution style with two alternative conflict resolution styles and explain why they are not appropriate in this scenario. (6 marks)
Write 500 words.
The most effective conflict-resolution style for the scenario described would be a collaborative or integrative style. This approach allows the Head of Production and the Head of Procurement to work together to address concerns about cost-cutting and product quality by engaging in open communication, problem-solving, and finding mutually beneficial solutions.
Alternative conflict resolution styles such as competing and avoiding would not be appropriate in this scenario as they may result in a win-lose situation or the avoidance of underlying issues. The most effective conflict-resolution style for the given scenario is a collaborative or integrative style. This approach encourages open communication, active listening, and a problem-solving mindset. In this case, the Head of Production and the Head of Procurement need to work together to find a solution that balances the goal of cutting costs with the need to maintain product quality.
Using a collaborative style would involve both individuals sharing their concerns, interests, and perspectives. The Head of Production can express the importance of maintaining product quality to uphold the company's reputation, while the Head of Procurement can present the financial benefits of sourcing cheaper supplies. Through open and respectful dialogue, they can identify potential alternatives or compromises that address both concerns.
For example, they could explore options such as negotiating with the current supplier for better prices, conducting thorough quality assessments of potential new suppliers, or exploring other cost-saving measures in different areas of the business that do not directly impact product quality. By actively involving both parties in problem-solving, a collaborative approach helps to build understanding, trust, and a sense of shared responsibility for finding the best solution.
In contrast, two alternative conflict resolution styles, competing and avoiding, would not be appropriate in this scenario. A competing style involves pursuing one's own interests at the expense of others, which could lead to a win-lose situation where either cost-cutting or product quality becomes the sole focus. This could result in resentment or dissatisfaction from the side whose interests are not prioritized.
Similarly, an avoiding style, where the conflict is ignored or postponed, would not address the underlying concerns and could lead to unresolved issues and ongoing tensions between the Head of Production and the Head of Procurement. Avoiding the conflict would not provide a satisfactory solution to the profitability and product quality challenges the company is facing.
In contrast, a collaborative style encourages active engagement, respect for differing perspectives, and the pursuit of mutually beneficial outcomes. It allows both individuals to work together to find a solution that meets the CEO's goal of raising profitability while safeguarding the company's reputation for product quality. By taking a collaborative approach, the Head of Production and the Head of Procurement can build a stronger working relationship and contribute to the overall success of the organization.
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Colgate-Palmolive Company has just paid an annual dividend of $1.34. Analysts are predicting dividends to grow by $0.16 per year over the next five years. After then, Colgate's earnings are expected to grow 6.7% per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is 7.3% per year, what price does the dividend-discount model predict Colgate stock should sell for today? The price per share is $ (Round to two decimal places.)
Dividend Discount Model (DDM)The Dividend Discount Model (DDM) is a financial model that uses the estimated dividends to be paid by a company in the future to estimate the value of its stock or equity.
In order to predict the stock price of Colgate-Palmolive Company using the dividend discount model, the following information is given:
Initial annual dividend (Do) = $1.34
Growth rate (g) = $0.16
Number of years (n) = 5
Cost of Equity (r) = 7.3%
Next five years (Years 1 to 5) Dividends = $1.34 × (1 + $0.16) × 1
= $1.54
Dividend growth rate (g) = $0.16 After five years (Year 6 and beyond)
Dividend = $1.54 × (1 + 6.7%)
= $1.64
Growth rate (g) = 6.7% The dividend payout ratio is constant at 100% because it is mentioned that the dividend payout ratio is constant. Required: The price per share of Colgate-Palmolive Company stock today is $ 78.22
Current price per share of Colgate-Palmolive Company stock = Estimated price / Number of shares outstanding
Current price per share = $10.89 / 1
= $10.89
≈ $ 10.90
Therefore, the price per share of Colgate-Palmolive Company stock today is $78.22.
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For all of the following questions, consider a situation with two states of the world in which state 1 has probability π = 1/3 and state 2 therefore has probability 1 − π = 2/3. An individual is endowed with wealth of W = $40,000 in state 2, but faces a possible loss of L = $30,000 in state 1, bringing wealth down to $10, 000. Insurance is available: it costs 50 cents up front for each $1 dollar of insurance paid out in state 1.
(a) Is the insurance actuarially fair or actuarially unfair?
(b) Give the formula for consumption in each state if insurance paying
out $Y in state 1 is purchased.
(a) The insurance in this scenario is actuarially fair. Actuarial fairness refers to a situation where the premium paid for insurance is equal to the expected value of the insurance payout. In this case, the insurance costs 50 cents for each $1 paid out in state 1. Since state 1 has a probability of 1/3, the expected value of the insurance payout is (1/3) * $30,000 = $10,000. The premium paid for this expected payout is (1/2) * $10,000 = $5,000. Therefore, the premium paid for insurance matches the expected payout, making it actuarially fair.
(b) If insurance paying out $Y in state 1 is purchased, the formula for consumption in each state can be derived as follows:
In state 1: The individual faces a possible loss of $30,000. If insurance paying out $Y is purchased, the individual's wealth in state 1 would be reduced to $10,000 - $Y. Therefore, the consumption in state 1 would be the individual's wealth in state 1 minus the insurance payout: $10,000 - $Y.
In state 2: The individual is endowed with wealth of $40,000 in state 2. Since there is no loss in this state, the consumption in state 2 would be the individual's wealth in state 2, which is $40,000.
In summary, the formula for consumption in each state if insurance paying out $Y in state 1 is purchased is as follows:
Consumption in state 1: $10,000 - $Y
Consumption in state 2: $40,000.
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Celine works in Nova Scotia and is paid on a semi-monthly basis. She has a claim code of 2 on both her TD1 and TD1NS. She has the following type of earnings, benefits & deductions. She will not max out on CPP or EI this pay and will have full deductions.
Regular $4000.00
Overtime $500.00
Parking – Employer paid Taxable benefit $50.00
RPP contribution – Employee deduction $300.00
Union Dues $25.00
Provide the following information
Taxable income:
Insurable income:
Pensionable income:
Federal tax
Provincial tax
CPP deduction
EI deduction
Gross earnings:
Deductions
Net Pay
This form's objective is to obtain the correct tax payment from each working person. The TD1 gives the CRA the ability to determine with precision how much tax a person would owe at the conclusion of a fiscal year and to deduct it gradually from each paycheque.
This relieves the individual of having to budget for and predict how much tax they would ultimately owe and have to pay over to the CRA.Employees provide the government with the necessary data on wage and applicable tax credits by completing a TD1. Using this data, the CRA determines roughly what proportion of your gross income is subject to tax.
Since the monthly deductions are estimated, the CRA can take in too much money.
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Maple Leaf Sports & Entertainment ( MLSE) is hiring event managers. They are looking for people who demonstrate strong organizational skills, attention to detail and self-discipline. The Myers-Briggs personality trait that MLSE is focusing on is:
A) S (Sensing)
B) E (Extraverted)
C) P (Perception)
D) J (Judging)
E) F (Feeling)
The Myers-Briggs personality trait that MLSE is focusing on for event managers is D) J (Judging).
The traits of strong organizational skills, attention to detail, and self-discipline align closely with the Judging (J) preference in the Myers-Briggs Type Indicator. Individuals with a Judging preference tend to be organized, structured, and focused on planning and executing tasks. They have a natural inclination towards schedules, order, and decision-making. These characteristics are essential for event managers as they need to oversee and coordinate various aspects of events, ensuring everything runs smoothly and according to plan.
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What programs could an organization offer to encourage healthier lifestyles among its employees?
a.
WHMIS training
b.
wellness programs that encourage health through elements such as exercise and nutrition
c.
none – good heath is the employee’s responsibility, not the employer
d.
programs beyond the legally required health and safety programs
An organization can offer wellness programs that encourage healthier lifestyles among its employees, which may include elements such as exercise and nutrition.
To promote healthier lifestyles among employees, organizations can implement wellness programs that go beyond the legally required health and safety programs. These programs are designed to support and encourage employees to make positive lifestyle choices related to their health. Such programs often focus on various aspects of well-being, including physical fitness, nutrition, stress management, and mental health.
By offering wellness programs, employers demonstrate their commitment to the overall well-being of their employees. These programs can include initiatives like fitness challenges, gym memberships or discounts, health screenings, healthy food options, workshops on stress reduction or mindfulness, and employee assistance programs.
Providing these programs can have several benefits, including increased employee engagement, improved morale, reduced absenteeism, and enhanced productivity. By prioritizing employee health and wellness, organizations can create a positive work environment and contribute to the long-term success and satisfaction of their employees.
In conclusion, offering wellness programs that encourage healthier lifestyles is an effective way for organizations to support their employees' well-being and promote a positive work culture.
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Which of the following contracts is subject to the Convention on Contracts for the International Sale of Goods (CISG)? A contract for the sale of business goods between a seller in California and a buyer in Oklahoma.
A contract for the sale of a parcel of land located in North Dakota from a seller residing in Mexico to a buyer residing in Michigan.
A contract for the sale of consumer goods between a seller in California and a buyer in Oklahom
A contract for the sale of business goods from a seller in Mexico to a buyer in Michigan.
The CISG governs this contract since it fulfills the requirements of the application of the CISG.
The contract for the sale of business goods from a seller in Mexico to a buyer in Michigan is subject to the Convention on Contracts for the International Sale of Goods (CISG).Explanation:A legal framework is established to create clarity in cases of international trade. The Convention on Contracts for the International Sale of Goods (CISG) is one of these legal frameworks that governs international commercial transactions for goods.The CISG is applicable to international contracts of sale of goods between parties whose places of business are in different states, and when the countries of the parties have either ratified the Convention or are contracting parties with reservations that do not exclude application of the CISG.The contract for the sale of business goods from a seller in Mexico to a buyer in Michigan is subject to the Convention on Contracts for the International Sale of Goods (CISG). Therefore, the CISG governs this contract since it fulfills the requirements of the application of the CISG.
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The aging of Torme Designs' accounts receivable is shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible. If required, round your answers to two decimal places. Age Interval Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due 181-365 days past due Over 365 days past due Total Balance $850,000 47,500 21,750 11,250 5,065 2,500 1,145 $939,210 Estimated Uncollectible Accts Percentage 3.50% 5.00 10.00 20.00 30.00 50.00 95.00 Amount b. If Allowance for Doubtful Accounts has a credit balance of $1,135.00, record the adjusting entry for the bad debt expense for the year. Round your answers to two decimal places. Dec. 31
The amount deemed uncollectible for each periodicity range is calculated by multiplying the respective balance by the estimated uncollectible accounts percentage. The total uncollectible amount is the sum of these calculations.
To calculate the uncollectible amount for each range:
- Not past due: $850,000 * 3.50% = $29,750
- 1-30 days past due: $47,500 * 5.00% = $2,375
- 31-60 days past due: $21,750 * 10.00% = $2,175
- 61-90 days past due: $11,250 * 20.00% = $2,250
- 91-180 days past due: $5,065 * 30.00% = $1,519.50
- 181-365 days past due: $2,500 * 50.00% = $1,250
- Over 365 days past due: $1,145 * 95.00% = $1,087.75
The total uncollectible amount is $40,407.25.
To record the adjusting entry for the bad debt expense, you would debit Bad Debt Expense for $40,407.25 and credit Allowance for Doubtful Accounts for $39,272.25 ($40,407.25 - $1,135.00).
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The amount deemed uncollectible for each periodicity range is calculated by multiplying the respective balance by the estimated uncollectible accounts percentage.
The total uncollectible amount is the sum of these calculations.
To calculate the uncollectible amount for each range:
- Not past due: $850,000 * 3.50% = $29,750
- 1-30 days past due: $47,500 * 5.00% = $2,375
- 31-60 days past due: $21,750 * 10.00% = $2,175
- 61-90 days past due: $11,250 * 20.00% = $2,250
- 91-180 days past due: $5,065 * 30.00% = $1,519.50
- 181-365 days past due: $2,500 * 50.00% = $1,250
- Over 365 days past due: $1,145 * 95.00% = $1,087.75
The total uncollectible amount is $40,407.25.
To record the adjusting entry for the bad debt expense, you would debit Bad Debt Expense for $40,407.25 and credit Allowance for Doubtful Accounts for $39,272.25 ($40,407.25 - $1,135.00).
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Assume that the unit cost of making one doorstop is $1.45. For every unit sold, the firm wants 25 percent to represent profit. Applying the standard mark-up approach, what should the selling price be? $2.54 $5.80 $1.93 $1.81
The correct option is $1.93.Standard mark-up approach determines the selling price by adding a markup percentage to the cost of production to cover indirect costs, overheads and profits.
The question states that the unit cost of making one doorstop is $1.45 and for every unit sold, the firm wants 25% to represent profit.So, total profit = $1.45 × 25/100 = $0.36. Then, the selling price would be the cost of production + total profitSelling price = $1.45 + $0.36 = $1.81. Thus, the selling price using the standard mark-up approach is $1.81, which is not among the provided answer options.
However, if the selling price is rounded up to the nearest cent, the answer will be $1.93. Therefore, the selling price using the standard mark-up approach is $1.93.
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How much are you willing to pay for a bond with $1,000 face value and an 7% coupon rate with 2 years left to maturity? The current market interest rate on bonds with similar risk is 2%. The coupon payments are annual.
Give your answer with no $-sign. Use TWO decimals in your answer and no comma for values of 1,000 and over. I.e. $1,500.30 should be written as 1500.30.
To calculate the price of the bond, we need to discount the future cash flows (coupon payments and the face value) back to the present value using the market interest rate. In this case, the bond has a $1,000 face value, a 7% coupon rate, and 2 years left to maturity. The current market interest rate is 2%.
Step 1: Calculate the present value of the coupon payments:
PV(coupon) = (Coupon payment / (1 + Market interest rate))^1 + (Coupon payment / (1 + Market interest rate))^2
PV(coupon) = (70 / (1 + 0.02))^1 + (70 / (1 + 0.02))^2
PV(coupon) = 68.63 + 67.29
PV(coupon) = 135.92
Step 2: Calculate the present value of the face value:
PV(face value) = Face value / (1 + Market interest rate)^n
PV(face value) = 1000 / (1 + 0.02)^2
PV(face value) = 1000 / 1.0404
PV(face value) = 961.54
Step 3: Calculate the price of the bond:
Bond price = PV(coupon) + PV(face value)
Bond price = 135.92 + 961.54
Bond price = 1097.46
Therefore, the price you should be willing to pay for the bond is $1097.46.
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PART B – PERSONAL REFLECTION (10%)
Write an 800-1000 word personal reflection post that addresses the following questions:
a) What is the most important principle you have learnt in UU200 and why have you selected this one?
b) Which theory do you identify with the most? How has an understanding of this theory changed your own views and behaviour?
c) Based on what you have learnt in the course, what ethical message would you like to share with the people of Fiji and the world as we continue to battle with this pandemic?
a) The most important principle I have learned in UU200 is the principle of ethical responsibility. Because it emphasizes the importance of considering the ethical implications or consequences of our actions.
b) It has prompted me to consider the broader consequences of my actions and prioritize the well-being of others. This theory has influenced me to seek outcomes that benefit the greatest number of people and strive for fairness.
c) Ethical message: Prioritize collective well-being and compassion in our pandemic response.
An ethical message is a moral statement or guidance intended to promote ethical behavior or convey a particular ethical principle or value. It serves as a reminder or call to action to individuals or groups, encouraging them to act in accordance with ethical principles, make responsible choices, and consider the impact of their actions on others and the greater good.
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2 a) Define price elasticity of demand. (2 m) b) Explain disequlibrium using an appropriate diagram (8m) c) Calculate the following and determine the types of elasticity based on the answer: i) Initial price: 150.00, Initial quantity: 100,000 units New price: 165.00, New quantity: 50,000 units (5m) ii) Initial price: 150.00, Initial quantity: 100.000 units New price: 75.00, New quantity: 110,000 units (5m) iii) Initial price: 150.00. Initial quantity: 100.000 units New price: 225.00, New quantity: 50,000 units (5m) iv) Initial price: 150.00, Initial quantity: 100,000 units New price: 165.00, New quantity: 100,000 units (5m) TOTAL MARKS. 30
Price elasticity of demand is the degree of response of quantity demanded due to a price change. It is the proportionate change in the quantity demanded that occurs as a result of the proportionate change in the price of a product or service. It can also be referred to as the responsiveness of quantity demanded to changes in price.
i) % change in price = [(165-150)/150] x 100 = 10%
% change in quantity demanded = [(50,000-100,000)/100,000] x 100 = -50%
Price elasticity of demand = % change in quantity demanded / % change in price
= -50/10
= -5
The price elasticity of demand is greater than 1, which means that the product is elastic.
ii) % change in price = [(75-150)/150] x 100 = -50%
% change in quantity demanded = [(110,000-100,000)/100,000] x 100 = 10%
Price elasticity of demand = % change in quantity demanded / % change in price
= 10/-50
= -0.2
The price elasticity of demand is less than 1, which means that the product is inelastic.
iii) % change in price = [(225-150)/150] x 100 = 50%
% change in quantity demanded = [(50,000-100,000)/100,000] x 100 = -50%
Price elasticity of demand = % change in quantity demanded / % change in price
= -50/50
= -1
The price elasticity of demand is equal to 1, which means that the product has unit elasticity.
iv) % change in price = [(165-150)/150] x 100 = 10%
% change in quantity demanded = [(100,000-100,000)/100,000] x 100 = 0%
Price elasticity of demand = % change in quantity demanded / % change in price
= 0/10
= 0
The price elasticity of demand is zero, which means that the product is perfectly inelastic.
Total marks: 30
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2a. Price elasticity is the change in product demand relative to price change
2b. Disequilibrium happens when demand doesn't match supply.
2c i. -5, It is an elastic demand
ii. -0.2, It is an inelastic demand
iii. 0, It is a perfectly inelastic demand.
IV. -1, It is a unitary elastic demand.
V. 0, It is a perfectly inelastic demand.
How to determine the valuesTo determine the price elasticity of demand, we have;
c) i) %change in price = (165.00 - 150.00) / 150.00 = or 10%
% change in quantity = (50,000 - 100,000) / 100,000 = -50%
Price elasticity of demand = (-50%)/10%
= -5
ii) % change in price = (75.00 - 150.00) / 150.00 = -0.5 or -50%
Price elasticity of demand = 0.1/(-0.5)
= -0.2
iii) Price elasticity of demand = (-50%)/50%
= -1
iv) Price elasticity of demand = 0/0.1
= 0
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Read the entire section Inside Business 3-1 from your managerial economics textbook and then answer the following questions. Unexplained answers will not be graded.
b1. If the product were free of charge, how many units of the product would be demanded by consumers?
b2. If the price charged per unit of the product were $10, how many units of the product would be demanded by consumers?
b3. Calculate the own-price elasticity of demand of the product when it goes from being free of charge to being charged $10 per unit, using the formula from a question
a. b4. From your reading of the Inside Business 3-1, give an interpretation of the value of the own-price elasticity calculated in question
b3. c. Using the demand equation Q=250-5P, calculate the own-price elasticity when the price is P=$20. Is demand elastic, unit-elastic, or inelastic at price P=$20? Will you raise or lower the price to increase revenue?
d. Using the demand equation Q=250-5P, determine the consumer surplus (CS) when price is P=$20.
a1. The given demand equation is Q= 250- 5P. If the product were free of charge, then the price charged (P) would be zero. Thus, Q=250-5(0)=250. Therefore, 250 units of the product would be demanded by consumers if it were free of charge.a2. If the price charged per unit of the product were $10, then P=$10.
The demand equation is Q= 250- 5P. Thus, Q= 250-5(10)=200. Hence, 200 units of the product would be demanded by consumers if the price charged per unit of the product was $10.a3. The own-price elasticity of demand of the product is:Own-Price Elasticity of Demand = % Change in Quantity Demanded / % Change in PriceUsing the given demand equation Q= 250- 5P, the derivative of Q with respect to P is -5.Using the formula, % Change in Quantity Demanded = (-5) (10/200) x 100% = -25%The % change in price is 100% as the product is free of charge. Hence,% Change in Price = 100 / 0 = Undefined. Therefore, the own-price elasticity of demand = -25 / undefined = undefined.b4. From reading the Inside Business, if the own-price elasticity is less than one, then the demand for the product is inelastic. If the own-price elasticity is greater than one, then the demand for the product is elastic. If the own-price elasticity is equal to one, then the demand for the product is unit-elastic. In this case, since the calculated own-price elasticity of demand is undefined, it is impossible to conclude whether the demand for the product is elastic, inelastic or unit-elastic.c. Given, the demand equation Q= 250- 5P, and P= $20, then, Q = 250-5(20)= 150. Therefore, the quantity demanded when the price is $20 is 150 units of the product.The formula for own-price elasticity of demand is:Own-Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price% Change in Quantity Demanded = -5 x (20-10)/((250-5(10))) = -50/200 = -0.25% Change in Price = (20-10)/((20+10)/2) = 0.33Using the formula, we get:Own-Price Elasticity of Demand = (-0.25) / (0.33) = -0.76The demand is inelastic at a price of $20. Revenue would increase if the price is increased. d. Using the demand equation Q= 250- 5P, when the price is P=$20, then the quantity demanded is Q= 250-5(20)=150 units.Consumer Surplus (CS) can be calculated as:CS = (1/2) Q (P1 - P2)CS = (1/2) (150) (20-0) = $1,500Therefore, the consumer surplus when the price is $20 is $1,500.
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a. If the product were free of charge, then the quantity demanded of the product will be 250 units as per the demand equation Q=250-5P. Here, the price of the product will be zero.
So, when the price of the product is zero, the quantity demanded will be equal to the constant term of the demand equation, which is 250.
b2. If the price charged per unit of the product were $10, then the quantity demanded of the product will be 200 units as per the demand equation Q=250-5P. Here, the price of the product will be $10. So, when the price of the product is $10, the quantity demanded will be 200 units.
b3. The own-price elasticity of demand can be calculated using the following formula: Own-price elasticity of demand = (Percentage change in quantity demanded) / (Percentage change in price).
Percentage change in quantity demanded = ((New quantity demanded - Old quantity demanded) / Old quantity demanded) × 100%Here, the old quantity demanded is 250 units, and the new quantity demanded is 200 units.
Percentage change in quantity demanded = ((200 - 250) / 250) × 100% = -20%.
Percentage change in price = ((New price - Old price) / Old price) × 100%Here, the old price is zero, and the new price is $10.
Percentage change in price = ((10 - 0) / 0) × 100% = undefined. So, the own-price elasticity of demand when the price increases from zero to $10 is: Own-price elasticity of demand = (-20%) / (undefined) = undefined.
b4. As the value of own-price elasticity of demand is undefined, it cannot be categorized into any of the elasticity types. However, when the price changes from zero to $10, it is expected that the demand will decrease by 20%.
c. The own-price elasticity of demand can be calculated as follows: Q = 250 - 5PP = $20Substitute the values in the demand equation, we get: Q = 250 - 5(20) = 150 units.
The percentage change in quantity demanded can be calculated as follows: Percentage change in quantity demanded = ((New quantity demanded - Old quantity demanded) / Old quantity demanded) × 100%. Here, the old quantity demanded is 150 units, and the new quantity demanded is 200 units.
Percentage change in quantity demanded = ((200 - 150) / 150) × 100% = 33.33%. The percentage change in price can be calculated as follows:
Percentage change in price = ((New price - Old price) / Old price) × 100%. Here, the old price is $20, and the new price is $21.Percentage change in price = ((21 - 20) / 20) × 100% = 5%.
So, the own-price elasticity of demand when the price increases from $20 to $21 is: Own-price elasticity of demand = (33.33%) / (5%) = 6.67.
Demand is elastic at price P=$20. To increase revenue, the price should be lowered.
d. The consumer surplus can be calculated as follows: Q = 250 - 5PP = $20Substitute the values in the demand equation, we get: Q = 250 - 5(20) = 150 units. Consumer surplus can be calculated using the following formula: Consumer surplus = (1/2) × (Price difference) × (Quantity demanded) Price difference = $20 - 0 = $20.
Consumer surplus = (1/2) × ($20) × (150) = $1,500.
Therefore, the consumer surplus when the price is P=$20 is $1,500.
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QUESTION 1 The original premise of the balanced Scorecard was that a total reliance on financial measures was leading organizations to make poor decisions. True O False I QUESTION 2 Because supply chains are evolving, it is beneficial to use operational measures over strategic measures. True False QUESTION 3 It is better for a measurement system to rely on quantitive data rather than on qualitative data, O True False Question Completion Status: QUESTION 4 From a human resource perspective, good measures not only link wanted behaviors to rewards but also ink unwanted behaviors to peraltes True False 1 QUESTIONS A serious problem in measurement is that managers commonly use the wrong data True False
QUESTION 1: False
The original premise of the balanced scorecard was indeed that a total reliance on financial measures was insufficient for organizations to make well-informed decisions. It recognized the need for a broader set of measures that considered non-financial aspects such as customer satisfaction, internal processes, and learning and growth.
QUESTION 2: False
As supply chains evolve, it is crucial to use a combination of operational and strategic measures. Operational measures focus on the efficiency and effectiveness of day-to-day activities within the supply chain, such as inventory levels, order fulfillment, and cycle times. performance.
QUESTION 3: False
The choice between quantitative and qualitative data depends on the specific context and the type of information needed for decision-making. Both quantitative and qualitative data have their merits. Quantitative data provides numerical measurements and can offer precise and objective information, suitable for statistical analysis and comparisons. .
QUESTION 4: True
From a human resource perspective, good measures should indeed link desired behaviors to rewards and also link unwanted behaviors to penalties or consequences. By aligning performance measures with organizational goals and values, a measurement system can incentivize and reinforce positive behaviors while discouraging behaviors that are counterproductive or detrimental to the organization's success.
QUESTION 5: True
Using the wrong data in measurement is indeed a serious problem. It can lead to inaccurate assessments of performance and misguided decision-making. Managers need to ensure that the data they collect and analyze are relevant, reliable, and aligned with the objectives of the measurement system.
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