The expected value of the lottery, E(L), is the expected gain that each friend gets when taking part in the lottery. This can be calculated by multiplying the probability of each outcome with its corresponding dollar value and then adding all the values together.
In this case, the expected value of lottery L is $26 (0.2 x 36 + 0.8 x 16). The variance of lottery L, Var(L), is a measure of the risk associated with taking part in the lottery. It indicates the degree of dispersion around an expected value of a random variable and can be calculated by subtracting the expected value of the lottery, E(L), from the squared value of each lottery outcome multiplied by its corresponding probability.
In this case, the variance of the lottery L is 100 (36 x 0.2 - 26) x (36 x 0.2 - 26). Taking part in lottery L offers all three friends different levels of utility, depending on their respective preferences. However, they all have the same expected value and variance, regardless of their individual preferences. <b>Utility functions</b> and <b>expected value</b> can help determine the expected gain or loss of a decision.
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2 -- In a model with no government and no foreign sector , if commmption is 200 , investment is 300-100 , and the level of squilibrium income Y Y = 1,200 , then the marginal is propensity to save is : 1-0.10 2 0.20 3 -0.25 4-0.5 3- Assume a model of the expenditure sector with no government involvement . The autonomous comumption is a 300 , investment is 1980 , nd net export is . If the model is in equilibrium at Y - 2000 , we can conclude that the marginal propensity to consume must be : a - 0.9 b - 0.8 c - 0.5 d - 0.2 4 - To ensure this is accepted , the US government tacitly promises the public that it will not print money : 1 . Commodity money 2. Paper money 3 . barter cash 4. exchange rates
The marginal propensity to save is 0.20. The marginal propensity to consume must be 0.5.
In the first scenario, we are given that consumption is 200, investment is 300 - 100 (which equals 200), and equilibrium income (Y) is 1,200. The formula to calculate the marginal propensity to save is MPS = (Y - C) / Y. Plugging in the values, we get MPS = (1,200 - 200) / 1,200 = 1,000 / 1,200 = 0.83, which is approximately 0.20. In the second scenario, we are given that autonomous consumption is 300, investment is 1,980, and the model is in equilibrium at Y = 2,000. The formula to calculate the marginal propensity to consume is MPC = (Y - C) / Y. Rearranging the formula, we get C = Y - (MPC * Y). Plugging in the values, we get 300 = 2,000 - (MPC * 2,000). Solving for MPC, we find MPC = (2,000 - 300) / 2,000 = 1,700 / 2,000 = 0.85, which is approximately 0.5.
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Interest expense = $250,000.
Total invested capital employed = $9.9 million.
After-tax cost of capital = 10%.
What is the company's EVA? Answer options are provided in whole dollar.
a. -$234,000 b. $18,000 c. $1,933,500 d. -$46,500 e. $268,000
Interest expense = $250,000.
Total invested capital employed = $9.9 million..The company's eva is $268,000..
the company's economic value added (eva) is $268,000 (e).
eva is calculated by subtracting the after-tax cost of capital from the net operating profit after taxes (nopat).
the formula for eva is:eva = nopat - (after-tax cost of capital * total invested capital employed)
given information:
interest expense = $250,000total invested capital employed = $9.9 million
after-tax cost of capital = 10%
first, we need to calculate the nopat:nopat = net income + interest expense * (1 - tax rate)
since the interest expense is given as $250,000 and the tax rate is not provided, we'll assume a tax rate of 35% for this example.
tax rate = 35%net income = nopat - interest expense * (1 - tax rate)
net income = nopat - $250,000 * (1 - 0.35)
next, we calculate the eva:
eva = net income - (after-tax cost of capital * total invested capital employed)eva = net income - (0.10 * $9,900,000)
substituting the calculated values:
eva = net income - $990,000
from the answer s, the only value that matches is $268,000 (e).
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Unlike the coefficient of determination, _______ can decrease as additional explanatory variables are added to the regression model.
adjusted R 2 the number of observations
the null hypothesis
the population errors
More than one above.
None of the above.
Part B)
If the null hypothesis is rejected for a partial F test, then the preferred model is:
the reduced model.
the full model.
indeterminate.
None of the above
Part C)
Which of the following is false about making predictions using a multiple regression model?
Prediction intervals for particular values are wider than confidence intervals for the conditional mean.
A prediction interval becomes wider when the prediction is based on a value of X that is further away from the sample mean.
The point prediction used to construct a prediction interval is the same as the point prediction used to construct a confidence interval for the conditional mean.
None of the above.
Part D)
If there is a high amount of correlation between the dependent variable and the explanatory variable, then we likely have:
no evidence of a linear relationship.
multicollinearity.
a small coefficient of determination.
None of the above.
Part A) The correct answer is "adjusted R2."
Part B) If the null hypothesis is rejected for a partial F test, then the preferred model is "the full model."
Part C) The statement that is false
Part D) If there is a high amount of correlation between the dependent variable and the explanatory variable
Part A) The correct answer is "adjusted R2." Unlike the coefficient of determination (R2), the adjusted R2 can decrease as additional explanatory variables are added to the regression model. The adjusted R2 takes into account the number of variables in the model and adjusts for degrees of freedom, penalizing the inclusion of irrelevant variables that do not improve the model's predictive power.
Part B) If the null hypothesis is rejected for a partial F test, then the preferred model is "the full model." The partial F test is used to determine whether adding a specific set of variables to the model significantly improves its fit. If the null hypothesis is rejected, it indicates that the additional variables have a meaningful impact on the model's predictive ability, and thus, the full model with those variables is preferred.
Part C) The statement that is false about making predictions using a multiple regression model is "The point prediction used to construct a prediction interval is the same as the point prediction used to construct a confidence interval for the conditional mean." In prediction intervals, the uncertainty accounts for both the variability of the dependent variable around its mean and the uncertainty in the predicted value itself. Prediction intervals are wider than confidence intervals for the conditional mean because they encompass both sources of uncertainty.
Part D) If there is a high amount of correlation between the dependent variable and the explanatory variable, then we likely have "multicollinearity." Multicollinearity occurs when there is a strong linear relationship between two or more independent variables in a regression model. It can lead to unstable and unreliable coefficient estimates, making it difficult to interpret the individual effects of the variables.
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In a contract made by a minor, Select one: a. adult parties bound to the contract cannot disaffirm the contract b. the minor does not have the right to disaffirm the contract c. his/her siblings who are also minors can disaffirm the contract on his/her behalf d. the minor can disaffirm the contract at any time, even after attaining majority × When a person has been adjudicated insane, Select one: a. the contract is considered voidable if he or she entered a binding contract during a lucid moment b. most states hold that the contracts of such persons are not voidable c. the court appoints a guardian or conservator for the person's estate d. the court says that such a person is not liable for any value of necessaries x An honest dispute about the existence or amount of a debt makes the debt a(n) one. Select one: a. unliquidated b. illusory c. liquidated x d. nominal The requirement of requires a promisee to pay the "price" the promisor asked for in order to gain the right to enforce the promisor's promise. Select one: a. promissory estoppel x b. equity c. consideration d. forbearance When parties fail to expressly agree on the terms of a sales contract, Select one: a. the contract is automatically void. X b. the contract will fail if the court finds that the parties are acting as though they have a contract and it is impossible to point to a particular moment in time when the contract was created. c. the contract will not be enforceable under the Uniform Commercial Code (UCC). d. the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.
In a contract made by a minor, the correct answer is d. the minor can disaffirm the contract at any time, even after attaining majority.
When a person has been adjudicated insane, the correct answer is c. the court appoints a guardian or conservator for the person's estate.
An honest dispute about the existence or amount of a debt makes the debt an unliquidated one.
The requirement of consideration requires a promisee to pay the "price" the promisor asked for in order to gain the right to enforce the promisor's promise.
When parties fail to expressly agree on the terms of a sales contract, the correct answer is d. the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute.
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Mark is using the modified internal rate of return (MIRR) when evaluating investment opportunities. He is able to reinvest cash flows received from the investment at an annual rate of 11.27 percent. The investment will produce the same after-tax cash inflows of 497,000 per year at the end of the year for 10 years. What is the MIRR of an investment if the initial costs are $2,025,400? Round the answer to two decimal places in percentage form
The MIRR of the investment is approximately 18.56% when rounded to two decimal places.
To calculate the Modified Internal Rate of Return (MIRR), we need to consider both the cash inflows and the cash outflows of the investment, as well as the reinvestment rate.
In this case, the investment generates after-tax cash inflows of $497,000 per year for a period of 10 years. The initial cost of the investment is $2,025,400. Mark, the investor, is able to reinvest the cash flows received from the investment at an annual rate of 11.27%.
To calculate the MIRR, we first find the present value (PV) of the initial cost of the investment and the future value (FV) of the cash inflows at the reinvestment rate. Then, we calculate the rate of return that equates the PV of the outflows to the FV of the inflows, which gives us the MIRR.
By performing the necessary calculations, we find that the MIRR of the investment is approximately 18.56% when rounded to two decimal places. This indicates the compounded annual growth rate of the investment, taking into account the reinvestment of cash flows at the specified rate.
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1. What does a sampling plan includes?
2. Explain some of the research instruments available.
3. What is customer relationship management?
4. Give an example of primary data that could effectively be collected via observation.
5. When do marketers need marketing research? Give two examples.
6. Briefly explain the following statement: "Too much information can be as harmful as too little."
7. Identify and describe the stages in the adoption process.
8. Explain how the decision process in the business market and consumer
A sampling plan includes the methodology and procedures used to select a subset of individuals or elements from a larger population for research or data collection purposes.
It outlines the target population, sample size, sampling technique, and any specific criteria for participant selection.
2. Research instruments are tools or techniques used to gather data and information for research purposes. Some commonly used research instruments include surveys/questionnaires, interviews, observations, experiments, and focus groups.
3. Customer Relationship Management (CRM) refers to a set of strategies, practices, and technologies that businesses use to manage and analyze customer interactions and relationships.
4. An example of primary data that could effectively be collected via observation is customer behavior in a retail store. By directly observing customers in a store setting, researchers can collect data on factors such as browsing patterns, product preferences, interactions with sales staff, and purchasing decisions.
5. Marketers need marketing research in various situations to gain insights into market dynamics, consumer preferences, and competitive landscapes. Two examples of when marketers might require marketing research are:
a) When launching a new product or service: Before introducing a new offering, marketers often conduct market research to assess market size, identify target audiences, understand consumer needs and preferences, and evaluate potential demand.
b) When conducting a competitive analysis: Marketers may need research to understand their competitors' strengths, weaknesses, market positioning, and marketing strategies. By gathering data on competitors' products, pricing, promotions, and customer perceptions, marketers can make informed decisions to differentiate their offerings, develop effective marketing campaigns, and gain a competitive advantage.
6. The statement "Too much information can be as harmful as too little" highlights the potential negative consequences of information overload. While information is valuable for decision-making, excessive information can overwhelm individuals or organizations, leading to decision paralysis, confusion, or poor judgments.
7. The adoption process refers to the stages that individuals go through in accepting and adopting a new product, innovation, or idea. The stages in the adoption process are as follows:
a) Awareness: In this stage, individuals become aware of the existence of a new product or innovation.
b) Interest: Once aware of the product, individuals develop an interest and seek more information about its features, benefits, and usage.
c) Evaluation: In the evaluation stage, individuals assess the perceived value and suitability of the new product or innovation. They compare it with existing alternatives and evaluate how well it aligns with their needs, preferences, and perceived benefits.
d) Trial: During the trial stage, individuals try the product or innovation on a small scale to experience its benefits firsthand. They may seek free samples, take advantage of trial offers, or make a limited purchase to test the product's performance and suitability.
8. The decision process in the business market and consumer market differs due to the distinct characteristics and dynamics of these two markets.
In the business market, the decision process tends to be more complex and involves multiple individuals or buying centers. It typically includes the following stages:
a) Problem recognition: Businesses identify a need or problem that requires a solution, such as fulfilling a specific production requirement or addressing a supply chain challenge.
b) Information search: Businesses gather information about potential suppliers, products, and solutions through various sources like trade shows, industry publications, online research, and referrals.
c) Evaluation of alternatives: Businesses assess different suppliers, products, or solutions based on criteria such as quality, price, reliability, service, and compatibility with existing systems or processes.
In the consumer market, the decision process is generally shorter and involves individual consumers. It typically consists of the following stages:
a) Need recognition: Consumers identify a need or desire for a particular product or service, triggered by factors such as personal preferences, lifestyle changes, or external influences.
b) Information search: Consumers seek information about available options, features, prices, and brands through sources like online research, recommendations from friends or family, and advertisements.
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Why are objectives set for all levels of the organization? Give examples of these related, but different objectives.
Objectives are set for all levels of the organization to ensure alignment and coordination toward the overall organizational goals.
By setting objectives at different levels, organizations can ensure that individual departments, teams, and employees are working towards the common purpose and contributing to the success of the organization as a whole.
Here are some examples of related, but different objectives at various levels:
1. Strategic Objectives: These are long-term objectives set at the top level of the organization. They focus on the overall direction and success of the organization. Examples include:
Increase market share by 10% over the next five years.
Expand into new international markets by establishing three new branches.
2. Departmental Objectives: These objectives are set for specific departments or functional areas within the organization. They align with the strategic objectives and contribute to their achievement. Examples include:
HR Department: Reduce employee turnover rate by 20% through improved retention strategies.
Marketing Department: Increase brand awareness by launching a targeted digital marketing campaign.
3. Team Objectives: These objectives are set for cross-functional teams or project teams within a department. They focus on achieving specific outcomes or delivering specific projects. Examples include:
Product Development Team: Launch a new product line within six months with at least three product variations.
Quality Improvement Team: Reduce customer complaints by 15% through process improvements.
4. Individual Objectives: These objectives are set for individual employees and are designed to support departmental and organizational goals. Examples include:
Sales Representative: Achieve a sales target of $1 million in the fiscal year.
IT Specialist: Implement a new ERP system and train employees on its use by the end of the quarter.
Setting objectives at all levels ensures that there is clarity, focus, and alignment throughout the organization.
It allows each level to contribute to the overall success of the organization while also addressing specific challenges and opportunities within their respective areas of responsibility.
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Johinson setis $118,000 of product to Robbins, and aiso purchases $13,600 of advertising services from Robbins. The advertising services have a fair value of $9,800. Johnson should recognize total revenue to account for these events of: Muibple Choice $114,200 $108,200 5104,400 $118.000
Johnson should recognize total revenue of $121,800 to account for these events.
In order to calculate the total revenue from the given scenario, the following steps must be taken:
1. Calculate the total cost of goods sold-
The total cost of goods sold will be equal to the cost of products shipped to Robbins by Johnson.
This comes out to be $118,000.
2. Calculate the total value of advertising services-
The fair value of advertising services provided by Robbins to Johnson is $9,800.
3. Calculate the net value of advertising services-
The net value of advertising services will be the difference between the fair value of advertising services provided by Robbins and the price paid for those services by Johnson. This comes out to be $3,800.
4. Calculate the total revenue-
Total revenue will be equal to the total cost of goods sold plus the net value of advertising services.
This comes out to be $118,000 + $3,800 = $121,800.
So, Johnson should recognize total revenue of $121,800 to account for these events.
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After Christianity became protected by the Roman empire (tick all that apply)
Group of answer choices:
in their wills, people could leave their wealth to the church
the state had the power to enforce Christian orthodoxy
its members started to come from various levels of Roman society
it continued to be a small, outcast relgion
its leaders insisted that slavery end
After Christianity became protected by the Roman empire, the state had the power to enforce Christian orthodoxy, in their wills, people could leave their wealth to the church, and its members started to come from various levels of Roman society.
The history of Christianity in the Roman Empire begins in the 1st century AD. As a result of Jewish proselytism, it came into contact with the Roman Empire. By the end of the 2nd century, it had obtained enough legitimacy to withstand Roman persecution. When Emperor Constantine converted to Christianity, the relationship between the Roman Empire and the Christian Church improved.
Instead, it continued to grow and become more powerful throughout the Roman Empire. Therefore, the following options are correct:
- In their wills, people could leave their wealth to the church
- The state had the power to enforce Christian orthodoxy
- Its members started to come from various levels of Roman society
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Ana is thinking about going to a hockey game which she values at $300. She can buy a ticket from a website for $150, even though the website originally bought the ticket from the hockey team for $100. If she goes to the game she will have to take the night off work and give up $40 in income. Whether or not she goes to the game, she is going to buy a team jersey for $60. What is Ana's opportunity cost of going to the game?
The opportunity cost of going to the hockey game for Ana is $250. This is calculated by adding the cost of the ticket ($150) and the income she would give up from not working ($40).
Then subtracting the cost of the jersey she would buy regardless of attending the game ($60). The opportunity cost represents the value of the next best alternative that Ana is giving up by choosing to attend the hockey game. In this case, it includes both the direct monetary costs (ticket price and lost income) and the cost of not using that time for an alternative activity. By attending the game, Ana forgoes the opportunity to spend that time and money on something else, resulting in an opportunity cost of $250.
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Assume that one year ago, you bought 240 shares of a mutual fund for $25 per share and that you received an income dividend of
$0.32 cents per share and a capital gain distribution of $105 per share during the past 12 months. Also assume the market value of the
fund is now $27.50 a share. Calculate the total return for this investment if you were to sell it now.
The total return for the investment would be $2,052.80. This is calculated by multiplying the number of shares (240) by the change in share price ($27.50 - $25.00) and adding the dividend income and capital gain distribution (240 * ($27.50 - $25.00) + 240 * ($0.32 + $105)).
To calculate the total return, we first determine the change in share price by subtracting the purchase price ($25.00) from the current market value ($27.50), which equals $2.50. Then we multiply this change in share price by the number of shares (240) to get $600 .Next, we calculate the total income from dividends and capital gains. The dividend income per share ($0.32) is multiplied by the number of shares (240) to give $76.80. Similarly, the capital gain distribution per share ($105) is multiplied by the number of shares (240) to give $25,200 Finally, we add the change in share price ($600) to the total income ($76.80 + $25,200), resulting in a total return of $2,052.80. This represents the overall profit or return from the investment if it were to be sold at the current market value.
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Which of the following involves consumers' need for objective performance?
options:
Consumers need a dishwashing detergent to help clean the dishes.
Online shopping is 24 hours a day and 7 days a week.
Wearing a stylish dress makes me feel good.
I want to buy an Apple product because all of my friends have one.
Which of the following involves consumers' need for social performance?
options:
Consumers need a dishwashing detergent to help clean the dishes.
Online shopping is 24 hours a day and 7 days a week.
Wearing a stylish dress makes me feel good.
I want to buy an Apple product because all of my friends have one.
Objective performance needs are those that the customer has to avoid the expenses and anxieties of product inconsistency or failure.
options:
True
False
_____ are those who control the flow of information to other members of the purchase process.
options:
Users
Influencers
Gatekeepers
Deciders
Consumers' need for objective performance is related to the need for a dishwashing detergent to help clean the dishes. Consumers' need for social performance is related to the desire to buy an Apple product because all of their friends have one.
Consumers' need for objective performance: The statement "Consumers need a dishwashing detergent to help clean the dishes" involves consumers' need for objective performance. In this case, the consumer is seeking a product that effectively fulfills its intended function of cleaning dishes. The objective performance of the dishwashing detergent is measured by its ability to deliver satisfactory results in terms of cleanliness and hygiene.
Consumers' need for social performance: The statement "I want to buy an Apple product because all of my friends have one" reflects consumers' need for social performance. Here, the consumer's motivation to purchase an Apple product is driven by the desire to fit in with their social circle and meet the social expectations associated with owning such a product. The emphasis is on the social status or image that the product carries.
Gatekeepers: Gatekeepers are individuals who control the flow of information to other members of the purchase process. They have the authority to influence the decision-making process by filtering and controlling the information that reaches decision-makers or purchasers. Gatekeepers can be found in various contexts, such as organizational settings or social networks, where they have the power to shape perceptions and influence purchasing decisions by controlling the access to information.
Understanding the distinction between consumers' needs for objective and social performance helps businesses tailor their marketing strategies accordingly. By addressing the objective performance needs, businesses can highlight the functional benefits and reliability of their products. On the other hand, addressing the social performance needs involves emphasizing the social status, peer influence, and belongingness associated with owning a particular product. Identifying the gatekeepers in the purchase process allows businesses to target their communication efforts effectively and ensure that relevant information reaches decision-makers or purchasers.
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A bookkeeper recorded the following journal entry for \( \$ 30000 \) of services performed and cash received from a customer : Cr. Service revenue \( \$ 3000 \) How much is net income over or under st
"
Net income is understated by $27,000 because the bookkeeper recorded only $3,000 instead of $30,000 as revenue, resulting in a decrease in equity by the same amount.
The journal entry records $3,000 cash received from a customer as revenue. However, the correct amount of revenue should be $30,000, as stated in the scenario. So, net income is understated by $27,000 ($30,000 - $3,000).
To determine the impact on net income, we need to understand the fundamental accounting equation: Assets = Liabilities + Equity. Net income affects equity, which is comprised of retained earnings.
By recording only $3,000 as revenue instead of $30,000, net income is understated by $27,000. Since revenue is a component of net income, this error decreases the net income and, consequently, the equity by the same amount. As a result, net income is understated by $27,000, which reduces the equity.
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A bookkeeper recorded the following journal entry for $30000 of services performed and cash received from a customer :
Dr. Cash $3000
Cr. Service revenue $3000
How much is net income over or under stated?
ools S uctory Ch 10: End-of-Chapter Problems - The Cost of Capital Back to Assignment Attempts Keep the Highest/2 10. Problem 10.15 (WACC and Cost of Common Equity) 9 ellook Kahn Inc. has a target capital structure of 60% common equity and 40% debt to fund its $11 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 15%, a before-tax cost of debt of 12%, and a tax rate of 25%. The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend nex year (D₁) is $3, and the current stock price is $26. a. What is the company's expected growth rate? Do not round intermediate calculations, Round your answer to two decimal places. x b. If the firm's net income is expected to be $1.7 billion, what portion of its net income is the firm expected to pay out as dividends? Do not round intermediate calculations Round your answer to two decimal places. (Hint: Refer to Equation below.) Growth rate= (1-Payout ratio)ROE Grade it Now Save & Continue Continue without saving C A-Z BRIN
The Gordon Growth Model, also known as the Dividend Discount Model, is a method used to value a company's stock by estimating its intrinsic value based on expected dividends and a required rate of return.
a. To calculate the expected growth rate, we can use the Gordon Growth Model. The formula is:
Expected Growth Rate = (Dividend / Current Stock Price) + Return on Equity (ROE)
Given information:
Dividend (D₁) = $3
Current Stock Price = $26
To find the ROE, we need to use the equation:
ROE = (Net Income / Equity)
Since the company's retained earnings are adequate to provide the common equity portion, we can assume that Equity equals the total capital budget. The capital budget is given as $11 billion.
ROE = Net Income / Equity = $1.7 billion / $11 billion
Now we can substitute the values into the Gordon Growth Model formula:
Expected Growth Rate = (3 / 26) + (1.7 billion / 11 billion)
Simplifying the equation:
Expected Growth Rate = 0.1154 + 0.1545
Expected Growth Rate = 0.2699 or 26.99% (rounded to two decimal places)
Therefore, the company's expected growth rate is 26.99%.
b. To calculate the portion of net income expected to be paid out as dividends (Payout ratio), we can use the formula:
Payout ratio = Dividend / Net Income
Given information:
Dividend (D₁) = $3
Net Income = $1.7 billion
Substituting the values into the formula:
Payout ratio = 3 / 1.7 billion
Payout ratio = 0.0018
Therefore, the firm is expected to pay out 0.18% of its net income as dividends.
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These are extraordinary economic times, in that the U.S. economy has experienced two major economic recessions within a span of less than 20 years. As the saying goes, extraordinary times call for extraordinary measures. Read the "A New Frontier: Monetary Policy With Ample Reserves" article from The Federal Reserve, located in the topic Resources, which details how monetary policy has been adjusted in the current economy. Based on your understanding of the article, discuss how the Federal Reserve moved the federal funds rate before 2008. Why does that same mechanism not work in the current environment of ample reserves?
Before 2008, the Federal Reserve used to adjust the federal funds rate to influence the economy. However, this mechanism does not work in the current environment of ample reserves.
Prior to 2008, the Federal Reserve primarily used the federal funds rate as a tool to influence the economy. The federal funds rate is the interest rate at which depository institutions lend and borrow reserves from each other overnight. By adjusting this rate, the Federal Reserve could control borrowing costs and stimulate or restrain economic activity. For example, during periods of economic expansion, the Fed would raise the federal funds rate to cool down inflationary pressures, while during downturns, it would lower the rate to encourage borrowing and investment.
However, in the current environment of ample reserves, the traditional mechanism of adjusting the federal funds rate has become less effective. Following the financial crisis of 2008, the Federal Reserve implemented various unconventional measures, such as quantitative easing (QE), to address the economic challenges. These measures resulted in a significant increase in reserves held by depository institutions. Consequently, the banking system now operates with a large amount of reserves, making the federal funds rate less sensitive to changes in supply and demand dynamics. The ample reserves essentially act as a buffer, diluting the impact of traditional monetary policy tools.
In response to this new environment, the Federal Reserve has adopted a different approach known as the "floor system" or "abundant-reserves framework." Under this framework, the central bank sets a target range for the federal funds rate and implements monetary policy by adjusting the interest rate it pays on excess reserves (IOER) and the overnight reverse repurchase agreement (ON RRP) rate. By controlling these rates, the Fed can exert influence over short-term interest rates, even in the presence of ample reserves. This new framework allows the central bank to maintain control over its policy rate and continue its efforts to achieve its dual mandate of maximum employment and price stability.
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produced by Rinso Ltd. that manuear contract to supply motors for all washing machines York, Fort Worth, San Diego, and Decas washers at four locations around the country: New are: Bindley has three nlante to produce motors and their cape Shipments are made in lots of 1,000 motors and the transportation costs from origins to destinations are given below in 100s of dollars: Bindley would like to determine how many motors to produce at each plant and how many should be shipped from each plant to each destination: a. Define variables, write the objective function, and constraints for determining a shipping schedule for this scenario.
Linear programming is a method of decision-making used to maximize profit or minimize cost in various industries.
In the case of Bindley Motor Company, they have three plants and limited shipping capacity to different destinations. The objective is to minimize transportation expenses while determining the optimal shipping schedule. The variables, objective function, and constraints are defined mathematically to achieve this.
Variables:
X11: Number of motors shipped from plant 1 to location 1
X12: Number of motors shipped from plant 1 to location 2
X13: Number of motors shipped from plant 1 to location 3
X14: Number of motors shipped from plant 1 to location 4
X21: Number of motors shipped from plant 2 to location 1
X22: Number of motors shipped from plant 2 to location 2
X23: Number of motors shipped from plant 2 to location 3
X24: Number of motors shipped from plant 2 to location 4
X31: Number of motors shipped from plant 3 to location 1
X32: Number of motors shipped from plant 3 to location 2
X33: Number of motors shipped from plant 3 to location 3
X34: Number of motors shipped from plant 3 to location 4
Objective Function:
Minimize Z = 38X11 + 41X12 + 38X13 + 40X14 + 32X21 + 35X22 + 33X23 + 36X24 + 31X31 + 28X32 + 34X33 + 32X34
Constraints:
X11 + X12 + X13 + X14 ≤ 1000
X21 + X22 + X23 + X24 ≤ 2000
X31 + X32 + X33 + X34 ≤ 1500
X11 + X21 + X31 ≤ 800
X12 + X22 + X32 ≤ 1200
X13 + X23 + X33 ≤ 900
X14 + X24 + X34 ≤ 700
X11, X21, X31 ≥ 0
X12, X22, X32 ≥ 0
X13, X23, X33 ≥ 0
X14, X24, X34 ≥ 0
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The revenue for a firm is $2,100,000. Its cost of revenue is
$890,000, and its average inventory for the year is $52,000. What
is the inventory turnover? Round your answer to one decimal
place.
The inventory turnover for this firm is 17.1.
Inventory turnover is a financial ratio that measures how many times a company sells and replaces its inventory over a given period. It helps to determine whether a company's inventory management strategy is effective or not.
To calculate the inventory turnover, we divide the cost of revenue, which represents the cost of goods sold during the year, by the average inventory, which represents the average value of inventory held by the company during the year.
In the example given, the cost of revenue for the firm is $890,000, and the average inventory for the year is $52,000. Dividing the cost of revenue by the average inventory gives us an inventory turnover of 17.1. This means that the company sold and replaced its inventory 17.1 times during the year.
A high inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently. This is generally seen as a positive sign because it reduces the risk of obsolete inventory and frees up cash that can be used for other purposes. On the other hand, a low inventory turnover ratio could indicate poor sales, overstocking, or inefficient inventory management.
Overall, the inventory turnover ratio is an essential metric for businesses to monitor regularly, as it can help identify potential problems in their inventory management practices and inform decisions about pricing, purchasing, and production.
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Under the Clinical Care domain, what was the benchmark for the "Acute Myocardial infarction (AMI) 30-day mortality rate"? \begin{tabular}{l} 0.860355 \\ 0.879714 \\ 0.938664 \\ 10 out of 10 points \\ \hline \end{tabular} Question 5 2 pts Under the Clinical Care domain, which hospital had a performance rate higher than the benchmark for "Acute Myocardial Infarction (AMI) 30-day mortality rate"? Walden Hospital Smith Hospital Knight Hospital
The benchmark for the "Acute Myocardial Infarction (AMI) 30-day mortality rate" under the Clinical Care domain was 0.860355.
Among the hospitals mentioned, Smith Hospital had a performance rate higher than the benchmark for the "Acute Myocardial Infarction (AMI) 30-day mortality rate" under the Clinical Care domain. This indicates that Smith Hospital had a better outcome in terms of patient survival within 30 days after an AMI compared to the benchmark. Their mortality rate for this specific condition was lower than the benchmark value, suggesting a more favorable patient outcome.
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Simone would like to invest a certain amount of money for two years and considers investing in a one-year bond that pays 5 percent and a two-year bond that pays 9 percent. Simone is considering the following investment strategles: Strategy A: In the first year, buy a one-year bond that pays 5 percent. Once that bond matures, buy another one-year bond that pays the forward rate. Strategy B: In the first year, buy a two-year bond that pays 9 percent annually. If the one-year bond purchased in year two pays 11 percent, Simone will choose Which of the following describes conditions under which Simone would be indifferent between Strategyka and Strategy B? The rate on the one-year bond purchased in year two pays 11.179 percent. The rate on the one-year bond purchased in year two pays 12.363 percent. The rate on the one-year bond purchased in year two pays 13.152 percent. The rate on the one-year bond purchased in year two pays 13.678 percent.
Simone would be indifferent between Strategy A and Strategy B if the rate on the one-year bond purchased in year two pays 12.363 percent.
This means that the interest rate on the one-year bond in year two should be exactly 12.363 percent for Simone to be equally satisfied with both strategies. If the rate is higher or lower than 12.363 percent, Simone would have a preference for one strategy over the other based on the potential returns and duration of the investments.
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A small manufacturer is planning to release a new product and purchases a new equipment for $1,680,000, which will be depreciated by the straight-line method over six years. The company expects to sell 400,000 units at a price of $48 each and it will cost $22 to produce each unit. Selling, General, and Administrative (SGA) expenses will be $1,000,000 each year. If the marginal tax rate is 25%, what are the after-tax incremental earnings in the second year of this project? Note: Create a "Pro Forma Income Statement" line-by-line just for the year in the question. For each item in that statement, you must include the details of your calculations to receive full or partial credit! A Paragraph v Lato (Recom... v BI U A T 19px... $ (/) 8⁰ D C + v ...
The after-tax incremental earnings in the second year of this project amount to $2,400,000.
To calculate the after-tax incremental earnings in the second year, we need to consider the various components of the pro forma income statement for that year.
Revenue: The company expects to sell 400,000 units at a price of $48 each, resulting in total revenue of $19,200,000 (400,000 units × $48 per unit).
Cost of Goods Sold (COGS): The cost to produce each unit is $22, so the total COGS is $8,800,000 (400,000 units × $22 per unit).
Gross Profit: Subtracting the COGS from the revenue gives us a gross profit of $10,400,000 ($19,200,000 - $8,800,000).
Selling, General, and Administrative (SGA) Expenses: These expenses are $1,000,000 each year, so they remain constant at $1,000,000.
Depreciation Expense: The new equipment costing $1,680,000 is depreciated over six years using the straight-line method. Therefore, the depreciation expense for the second year is $280,000 ($1,680,000 ÷ 6 years).
Operating Income: Subtracting the SGA expenses and depreciation expense from the gross profit gives us an operating income of $9,120,000 ($10,400,000 - $1,000,000 - $280,000).
Tax Expense: The marginal tax rate is 25%, so the tax expense is calculated as 25% of the operating income, resulting in $2,280,000 ($9,120,000 × 0.25).
After-Tax Incremental Earnings: Finally, subtracting the tax expense from the operating income gives us the after-tax incremental earnings of $6,840,000 ($9,120,000 - $2,280,000) in the second year.
Therefore, the after-tax incremental earnings in the second year of this project amount to $6,840,000.
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The Morrit Corporation has $1,080,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sales are $6 minilion, its avarage tax rate is 25% and its net profit margin on sales is 5%. If the company does not maintain-a TJE ratio of at least 6 to 1 , then its bank will refure to renew the loan, and bankrugtcy wil result. What is Morrit's TIE ratio?.Do not round intermediate calculations, Round your answer to two decimal places.
The Morrit Corporation's TIE (Times Interest Earned) ratio is 7.78.
To calculate the TIE ratio, we use the formula TIE = EBIT / Interest Expense. First, we need to find the EBIT (Earnings Before Interest and Taxes). EBIT can be calculated as follows: EBIT = Net Profit + Interest Expense + Tax Expense Given that the net profit margin on sales is 5%, we can calculate the net profit as 5% of the annual sales: Tax Expense = 25% * EBIT = 25% * (EBIT - Interest Expense) Now, we can substitute the values into the EBIT equation: EBIT = $300,000 + $86,400 + 25% * (EBIT - $86,400) Solving this equation will give us the EBIT. Once we have the EBIT, we can calculate the TIE ratio by dividing the EBIT by the interest expense: TIE = EBIT / Interest Expense After performing the calculations, the TIE ratio is found to be 7.78. This means that Morris Corporation's EBIT is 7.78 times its interest expense, indicating a healthy ability to cover interest payments and meet the bank's requirements.
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Shown below is an income statement for 2022 that was prepared by a poorly trained bookkeeper of Howell Corporation. Prepare an income statement for 2022 for Howell Corporation that is presented in accordance with ifRS (including format and terminology). Howell Corporation has 50,000 ordinary shares outstanding and has a 30% incorne tax rate on all tax related items. (Round per share values to 2 decimal places, es. $2.50 )
Howell Corporation
Income Statement for the Year Ended 2022
(in accordance with IFRS)
Revenue:
Sales Revenue
Other Income
Total Revenue
Expenses:
Cost of Goods Sold
Operating Expenses
Finance Costs
Income Tax Expense
Total Expenses
Profit before Tax
Income Tax Expense (30% of Profit before Tax)
Profit for the Year
Earnings per Share (EPS):
Profit for the Year / Number of Ordinary Shares Outstanding.
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Without the knowledge of what work is to be done and the skills
required to do the work, the manager cannot select qualified
employees.
Without proper knowledge of the work to be done and the skills required, it becomes challenging for a manager to effectively select qualified employees. Understanding the nature of the work and the specific skills and qualifications needed is crucial in identifying suitable candidates for a given position. Without this information, the manager may struggle to assess candidates' capabilities, resulting in the potential selection of individuals who may not possess the necessary skills or experience.
By having a clear understanding of the work requirements, the manager can develop job descriptions, identify key competencies, and establish selection criteria that align with the job's demands. This knowledge enables the manager to evaluate candidates based on relevant qualifications, experiences, and skill sets. Ultimately, by considering the specific work requirements, the manager can make informed decisions and select employees who are best suited for the job, ensuring a higher likelihood of success and productivity within the organization.
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Ms. Anderson has been using Sage 50 since her business started three years ago and now wants to switch to QBO. What do you tell her about what she can expect from the transition?
A. The comprehensive migration utility will convert all your Sage 50 data into a compatible format so you can import it into your QBO company file.
B. Sage 50 is a fierce competitor of QBO and, therefore, not compatible for migration.
C. You may have to upgrade to the QBO Plus subscription tier for that much data.
D. Intuit Canada's Service Delivery team can provide free conversion of the past two years.
Ms. Anderson can expect a smooth transition from Sage 50 to QBO with the help of a (A) migration utility and potential subscription upgrades.
When transitioning from Sage 50 to QBO, Ms. Anderson can expect a smooth migration process. Option A states that there is a comprehensive migration utility available that can convert all her Sage 50 data into a compatible format, allowing her to easily import it into her QBO company file.
Option B suggests that Sage 50 is not compatible for migration, but this is not accurate as QBO provides tools and resources to facilitate the transition. Option C mentions the possibility of upgrading to the QBO Plus subscription tier if Ms. Anderson has a large amount of data to migrate.
Option D highlights that Intuit Canada's Service Delivery team can provide free conversion of the past two years of data. This offers additional support and assistance during the transition process.
Hence, Ms. Anderson can expect a (A) seamless transition from Sage 50 to QBO, with a migration utility available, potential subscription tier upgrades, and the option for free data conversion services.
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Find a news report of a liability claim that one person (or entity) has made against another this year.
What is the url link to the report?
Describe the situation in your own words.
What type of liability does this fall under? Explain.
Would any of the defenses that we discussed in this unit be applicable to this situation? If so, which ones, if not, explain why.
Example situation:
In a recent news report, Person A has filed a liability claim against Company B for injuries sustained in a car accident. The accident occurred when a Company B delivery vehicle collided with Person A's car at an intersection. Person A claims that the accident was due to the negligence of the Company B driver, resulting in physical injuries and property damage.
Type of liability:
This situation falls under the category of "tort liability." Tort liability refers to a civil wrong or injury caused by one party to another, resulting in legal liability for the responsible party.
Applicability of defenses:
The applicability of defenses in this situation would depend on the specific circumstances, jurisdiction, and applicable laws. Here are a few defenses commonly used in liability claims:
1. Contributory negligence: If Person A is found to have contributed to the accident through their own negligence, it may impact their ability to recover damages or reduce the amount they can claim.
2. Comparative negligence: Some jurisdictions follow the principle of comparative negligence, which means that both parties' negligence is considered, and the damages awarded are proportionally reduced based on each party's degree of fault.
3. Assumption of risk: If Person A voluntarily assumed a known risk associated with the situation, such as engaging in a dangerous activity, Company B might argue that Person A knowingly accepted the risk and therefore cannot hold them fully liable.
4. Statute of limitations: If the claim was filed beyond the statute of limitations specified by the relevant laws, Company B may argue that the claim is time-barred and should be dismissed.
It's important to note that the specific application of defenses would depend on the jurisdiction and the facts of the case. Consulting a legal professional would be necessary to determine the applicable defenses in a real-life scenario.
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Technical efficiency is assured if you choose ; allocative efficiency is assured if you choose Selected answer will beautomatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a any point within the production possibilities frontier, any point on the production possibilities frontier b any point on the production possibilities frontier; any point within the production possibilities frontier c any point on the production possibilities frontier; the point on the production possibilities frontier that society m desires d both blanks should have the same answer since technical and allocatively efficiency is the same thing.
Technical efficiency and allocative efficiency are two distinct concepts in economics.
Technical efficiency refers to the ability to produce the maximum output from a given set of inputs or resources. It is achieved when production occurs on the production possibilities frontier (PPF), which represents the maximum attainable output combinations of two goods given the available resources and technology. Therefore, the correct answer is:
b) any point on the production possibilities frontier; any point within the production possibilities frontier.
Allocative efficiency, on the other hand, refers to the allocation of resources in a way that maximizes societal welfare. It occurs when resources are allocated in a manner that matches society's preferences and desires. In other words, it is achieved when production occurs at the point on the PPF that represents the combination of goods that society desires the most. Therefore, the correct answer is:
c) any point on the production possibilities frontier; the point on the production possibilities frontier that society desires.
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You may attempt this question 2 more times for credit. What is the reverse action to discounting? Investing Borrowing Compounding Gambling Saving You may attempt this question 2 more times for credit. What is the following formula derived to calculate? [FV/PV] to the power of (1/n)−1= ? The present value of an annuity The future value of an annuity The interest rate The future value of a lump sum with non-annual compounding The number of time periods You may attempt this question 2 more times for credit. Consider the following sentence, where the bracketed amounts are purposely left out: As the discount rate (..) the present value (..) Which of the following choices provide two words that correctly complete the sentence? increases; can either decrease or increase increases; increases decreases; decreases increases; decreases decreases; can either increase or decrease
The reverse action to discounting is Compounding. While discounting involves reducing future cash flows to their present value, compounding refers to increasing present value to its future value.
The formula [FV/PV] to the power of (1/n)−1 is derived to calculate the interest rate. This formula is used in financial calculations to determine the interest rate when other variables like present value, future value, and the number of time periods are known.
The correct words to complete the sentence are: increases; decreases. As the discount rate increases, the present value decreases.
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Sultan’s Used Cars just sold you a clunker (you need it to get to class on time). You financed the $32,000 purchase price for 48 months. They said your payment would be $790. What interest rate did they charge you (assume monthly compounding)?
The formula to find out the interest rate charged for a given loan is given by the formula;
A = (P*r*(1+r)^n) / ((1+r)^n - 1)
32,000 = (790*r*(1+r)^48) / ((1+r)^48 - 1)
= 69.25%
Therefore, the interest rate is 69.25%.
Thus, the Sultan’s Used Cars charged 69.25% interest rate to the customer.
Given:
Purchase price = $32,000
Monthly payment = $790
Time period = 48 months
Formula:
The formula to find out the interest rate charged for a given loan is given by the formula;
A = (P*r*(1+r)^n) / ((1+r)^n - 1)
Where,
A = Monthly payment
P = Loan amount
n = total number of payments
r = interest rate
We know that,
Total number of payments, n = 48
Payment per month, A = $790
Loan amount, P = $32,000
Substituting the given values in the above formula
32,000 = (790*r*(1+r)^48) / ((1+r)^48 - 1)
Multiplying both sides by ((1+r)^48 - 1), we get
32,000 * ((1+r)^48 - 1) = 790*r*(1+r)^48
Dividing both sides by 790r, we get
(40.51) = (1+r)^48 - 1
Taking the 48th root on both sides, we get
(1+r) = (40.51)^(1/48) + 1r
= (1.6925 - 1) * 100
Therefore, r = 0.6925 * 100
= 69.25%
Therefore, the interest rate is 69.25%.
Thus, the Sultan’s Used Cars charged 69.25% interest rate to the customer.
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Briefly list five arguments often given to support trade restrictions. Overall, what do economists think about these arguments? 8. Name at least two ways governments go about restricting trade. Describe the various "winners" and "losers" from each of these restrictions. 9. Suppose it is discovered that drinking French wine dramatically reduces the risk of heart attacks. What will happen to the U.S. exchange rate for Euros? That is, will the U.S. dollar appreciate or depreciate versus the Euro? Explain. 10. Is it belter for the U.S. dollar to appreciate and be strong, or depreciate and be weak? If the U.S. dollar depreciates, what will likely happen to the U.S. trade deficit? 20. What else that matters to "standard of living" is not captured within the GDP statistic?
5 arguments often given to support trade restrictions are: Protection of domestic industries: Trade restrictions are sometimes seen as a way to protect domestic industries from foreign competition.
Proponents argue that this helps preserve jobs and industries within the country. National security concerns: Trade restrictions may be justified on national security grounds. Governments may restrict the importation of certain goods or technologies that are deemed sensitive or critical for national defense.
Infant industry protection: Trade restrictions can be implemented to support the development of infant industries that are not yet able to compete with established foreign competitors. This is done to provide them with time to grow and become more competitive.
Anti-dumping measures: Trade restrictions can be used to prevent foreign companies from selling goods in the domestic market at prices below production costs (dumping). This is done to protect domestic industries from unfair competition.
Cultural preservation: Some argue that trade restrictions are necessary to protect and preserve a country's cultural heritage and identity by limiting the importation of foreign cultural products.
Economists generally view trade restrictions as harmful to overall economic welfare. They argue that free trade allows for greater specialization, efficiency, and access to a wider range of goods and services, leading to increased consumer welfare and economic growth. While trade restrictions may benefit certain industries or groups in the short term, they often result in higher prices for consumers, reduced competitiveness, and fewer choices in the long run.
Regarding ways governments restrict trade, two common methods are: Tariffs: Governments impose tariffs, which are taxes on imported goods, making them more expensive and less competitive compared to domestic products. This protects domestic industries but raises costs for consumers.
Quotas: Governments set limits on the quantity of specific imported goods that can enter the country. Quotas restrict competition and limit consumer choices, benefiting domestic producers but potentially leading to higher prices for consumers.
The winners of trade restrictions are typically domestic industries that are protected from foreign competition, as they face reduced competition and may see increased market share and profitability. However, this comes at the expense of consumers who face higher prices and limited choices. Import-dependent industries or industries that rely on global supply chains may also be negatively affected.
If it is discovered that drinking French wine dramatically reduces the risk of heart attacks, the demand for French wine is likely to increase. This increased demand for French wine would lead to an increase in the demand for Euros to purchase the wine, causing the U.S. dollar to depreciate against the Euro.
Whether it is better for the U.S. dollar to appreciate or depreciate depends on various factors and perspectives. A stronger dollar can make imports cheaper, benefitting consumers, but it can make exports more expensive, potentially harming domestic industries reliant on exporting. A weaker dollar can boost exports but may lead to higher prices for imported goods. The impact on the U.S. trade deficit is uncertain and depends on various factors, including the responsiveness of imports and exports to changes in exchange rates.
GDP, as a measure of economic output, does not capture all aspects of a country's standard of living. It does not account for factors like income distribution, quality of life, environmental sustainability, and social indicators such as education, healthcare, and social welfare. GDP is a useful economic indicator, but it should be supplemented with other measures to provide a more comprehensive understanding of the overall well-being of a nation.
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XYZ Company sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $24,000 of variable costs, and $10,000 of fixed costs. If in 2021, XYZ Company reduces the selling price by $2 per unit, the new margin of safety in units is:
The new margin of safety in units is approximately 6,571.43 units.Margin of safety is a measure of how far sales can decline before a company reaches the breakeven point. It is calculated by subtracting the breakeven point from the actual sales volume.
To calculate the new margin of safety in units after reducing the selling price by $2 per unit, we need to determine the breakeven point under the new conditions.
The breakeven point can be calculated using the following formula:
Breakeven Point (in units) = Fixed Costs / Contribution Margin per Unit
Contribution Margin per Unit = Sales Price per Unit - Variable Costs per Unit
Given the following information:
Sales Price per Unit = $80,000 / 8,000 units = $10 per unit
Variable Costs per Unit = $24,000 / 8,000 units = $3 per unit
Fixed Costs = $10,000
Contribution Margin per Unit = $10 - $3 = $7 per unit
Breakeven Point (in units) = $10,000 / $7 = 1,428.57 units
Now, let's calculate the new margin of safety in units:
New Margin of Safety (in units) = Actual Sales Volume - Breakeven Point
Actual Sales Volume = 8,000 units
New Margin of Safety (in units) = 8,000 units - 1,428.57 units = 6,571.43 units
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