Media influences what we perceive as "important" news. To ensure accuracy, practice media literacy, seek diverse sources, fact-check, and critically evaluate information.
In today's media landscape, there is a significant influence on the news agenda and framing by media organizations. The selection and presentation of news stories can be shaped by various factors such as commercial interests, editorial biases, and audience preferences. This can result in certain topics receiving more attention while others are marginalized or overlooked.
To ensure we receive accurate information, it is crucial for citizens to be proactive in their media consumption. This involves developing media literacy skills to critically analyze news sources, fact-checking information using reliable sources, and seeking diverse perspectives from various outlets. By being informed and engaged consumers of news, we can make more informed judgments and mitigate the influence of media bias or agenda-setting.
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3) Real GDP per capita is $40,000 and grows by 2% per year. According to the rule of 70, how many years will it take for real GDP per capita to double? How long will it actually take for real GDP per capita to double? (Use Excel) 4) Real GDP per capita is $40,000 and grows by 3% per year. According to the rule of 70, how many years will it take for real GDP per capita to double? How long will it actually take for real GDP per capita to double? (Use Excel)
The rule of 70 states that if the annual growth rate of a variable (such as GDP or population) is x%, then that variable will double in approximately 70/x years.
Real GDP per capita is $40,000 and grows by 2% per year, so the annual growth rate is 2%.
To calculate how many years it will take for real GDP per capita to double, we can use the rule of 70:70/2 = 35Therefore, it will take approximately 35 years for real GDP per capita to double.
To calculate how long it will actually take for real GDP per capita to double, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years. For this problem, we can assume that P = $40,000, r = 2%, n = 1 (since the interest is compounded annually), and A = 2P = $80,000. Plugging these values into the formula, we get:80,000 = 40,000(1 + 0.02/1)^(1t)Simplifying:2 = (1.02)^t.
Taking the natural logarithm of both sides:
ln(2) = t ln(1.02)Solving for t: t = ln(2) / ln(1.02)≈ 35.0Therefore, it will take approximately 35 years for real GDP per capita to double.4) Real GDP per capita is $40,000 and grows by 3% per year, so the annual growth rate is 3%.
To calculate how many years it will take for real GDP per capita to double, we can use the rule of 70:70/3 = 23.33 (rounded to two decimal places)Therefore, it will take approximately 23.33 years for real GDP per capita to double.
To calculate how long it will actually take for real GDP per capita to double, we can use the same formula as before: A = P(1 + r/n)^(n t)where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
For this problem, we can assume that P = $40,000, r = 3%, n = 1 (since the interest is compounded annually), and A = 2P = $80,000.
Plugging these values into the formula, we get:80,000 = 40,000(1 + 0.03/1)^(1t)Simplifying:2 = (1.03)^t
Taking the natural logarithm of both sides: ln(2) = t ln(1.03)Solving for t: t = ln(2) / ln(1.03)≈ 22.62
Therefore, it will actually take approximately 22.62 years for real GDP per capita to double.
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Pick two different types of mobile phones, and use relevant
utility graphs to discuss your preferences for these two mobile
phones. (price theory course)
The two different types of mobile phones I will discuss are the iPhone and the Samsung Galaxy. By analyzing their utility graphs, I will express my preferences for these two mobile phones.
When comparing the iPhone and the Samsung Galaxy, my utility graph indicates a higher level of satisfaction and preference for the iPhone. The graph shows a steeper upward slope for the iPhone, indicating that the marginal utility I derive from each additional unit of the iPhone is higher compared to the Samsung Galaxy. This suggests that I value the features, design, and overall user experience of the iPhone more than those of the Samsung Galaxy.
Additionally, the graph reveals that the total utility I experience from the iPhone exceeds that of the Samsung Galaxy at various price points. This means that, for a given price, the iPhone provides me with a higher level of satisfaction and utility compared to the Samsung Galaxy. It suggests that the iPhone offers a better combination of features, performance, and personal preference that aligns with my needs and preferences in a mobile phone. It's important to note that utility graphs are subjective and may differ for individuals based on their preferences and needs. Different individuals may have varying utility graphs and preferences when comparing these two mobile phones.
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Comment about this post:
Legal is on the basis of the law. It means to act in accordance with the law. Ethic, on the other hand, is based on social principles and means the right and wrong of actions. Second, the two categories are presented differently. Legal has a written record, while ethic is an abstract concept. The concept of ethic is also influenced by environment,experience,etc., which is not unified. Third, if someone does something illegal, he must be forced to be punished by the law.But if someone does something not ethic but legal, he can only be condemned on a moral level.For example, The lab uses live animals to experiment, which is not ethic, but it is legal, and they won't be punished.
This post accurately distinguishes between legality and ethics, highlighting their differences in terms of basis, presentation, and consequences. It also provides an example to illustrate the distinction between actions that are legal but unethical.
In the post, the distinction between legality and ethics is discussed. "Legal" refers to actions that are in accordance with the law, while "ethical" refers to actions that are judged based on social principles of right and wrong. The post points out that legality is often documented and has specific rules and regulations, while ethics is more abstract and can vary depending on factors like environment and personal experience.
The post also emphasizes that when someone engages in illegal behavior, they are subject to legal consequences and punishment. However, if someone engages in behavior that is unethical but legal, they may face condemnation on a moral level but not legal punishment.
An example is provided to illustrate this distinction. The use of live animals for experimentation is mentioned as an action that may be considered unethical, but if it is legal, the individuals involved may not face legal consequences. The post highlights the difference between legality and ethics and how they can influence behavior and outcomes.
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Discuss the Bain’s Limit Price Theory with the help of
diagram.[10 Marks]
Bain's Limit Price Theory states that a dominant firm in an oligopoly market may deliberately set a low enough price to discourage the entry of new competitors into the market. A direct answer to the question is as follows; Bain's Limit Price Theory is a concept in economics that refers to a strategy used by dominant firms to discourage the entry of new competitors by setting a price low enough to reduce the profit margins of potential entrants. The theory suggests that the dominant firm may not necessarily be looking to maximize its profits in the short run, but instead, it is willing to reduce its profits in the short term to prevent new firms from entering the market.
Bain's Limit Price Theory assumes that the dominant firm knows the market demand and cost structures of its competitors. It also assumes that the dominant firm is already making a normal profit. When a new competitor enters the market, the dominant firm can lower its prices to the limit price, which is the lowest price at which a potential entrant would still earn a normal profit. This will make it difficult for new entrants to compete in the market since the limit price would not cover their costs of production. As a result, the potential entrants may decide not to enter the market at all. This will give the dominant firm a dominant position in the market and allow it to enjoy higher profits in the long run. Bain's Limit Price Theory can be explained using the following diagram: In the diagram, P* represents the market price that is established by the dominant firm. When the new entrant enters the market, it tries to capture some of the market share by charging a lower price than the dominant firm. In response, the dominant firm lowers its price to the limit price (P) below which the new entrant cannot survive. At this point, the new entrant will not be able to earn a normal profit and will either exit the market or choose not to enter it at all. As a result, the dominant firm can maintain its market share and enjoy higher profits in the long run.
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The following information, supplied by Stardom Club, is available for the year ended 31 December 2021 1.Cash receipts for the year: R
Membership Fees : 26 500
2020: R 1 650
2021: R 24 450
2022: R 400
Entrance fees 700
Sale of tennis balls 6 600
Hire of tennis courts 9 160
Sale of refreshments 23 000
Cash payments for the year
Wages 11 000
Creditors for refreshments 18 600
Purchases for tennis balls 5 650
Tennis courts repairs 3 560
Tennis court built 22 000
Purchase of tennis nets 6 500
Current assets and current liabilities as at:
31 Dec 2021 31 Dec 2020
R R
Cash in the bank 13 150 14 500 Inventories:
Tennis balls 1 870 1 150
Refreshments 1 660 1 300
Creditors for refreshments 1 410 1 050
Membership fees receivable 1 600 1 650
Membership fees received in advanced 400 -
Required
Prepare the following:
1. Statement of Receipts and Payments for the year ended 31 December 2021.
Statement of Receipts and Payments for the year ended 31 December 2021
Receipts:
Membership Fees (2021) R 24,450
Entrance Fees 700
Sale of Tennis Balls 6,600
Hire of Tennis Courts 9,160
Sale of Refreshments 23,000
Total Receipts R 64,910
Payments:
Wages R 11,000
Creditors for Refreshments 18,600
Purchases of Tennis Balls 5,650
Tennis Court Repairs 3,560
Tennis Court Built 22,000
Purchase of Tennis Nets 6,500
Total Payments R 67,310
Net Increase/(Decrease) in Cash: (R 2,400)
Cash at the Beginning of the Year: R 14,500
Cash at the End of the Year: R 13,100
Note: The statement of receipts and payments summarizes the cash inflows and outflows during the year. The net increase or decrease in cash is calculated by subtracting the total payments from the total receipts. The beginning and ending cash balances are also provided.
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Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.8 million, and pays corporate income tax at rate 39%. Its cost of equity is 14% and its cost of debt is 6%. a. What is Rogot's pre-tax WACC? b. What is Rogot's (effective after-tax) WACC? a. What is Rogot's pre-tax WACC? Rogot's pre-tax WACC is \%. (Round to two decimal places.) b. What is Rogot's (effective after-tax) WACC? Rogot's (effective after-tax) WACC is %. (Round to two decimal places.)
The answers are: a. Rogot's pre-tax WACC is 48.02%.
b. Rogot's (effective after-tax) WACC is 47.57%.
a. Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $2.8 million, and pays corporate income tax at the rate of 39%. Its cost of equity is 14%, and its cost of debt is 6%.
The formula for the Weighted Average Cost of Capital (WACC) is: WACC = (E / V × Re) + ((D / V × Rd) × (1 − Tc))Where:Re = Cost of equity Rd = Cost of debt E = Market value of the firm's equity D = Market value of the firm's debt V = Total Market Value of the firm's financing Tc = Corporate Tax Rate Using the values from the given information,E = 2.8 million D = 1.1 million V = E + D = 2.8 + 1.1 = $3.9 million Re = 14%Rd = 6%Tc = 39%Using the above formula,WACC = (2.8 / 3.9 × 14) + ((1.1 / 3.9 × 6) × (1 − 0.39))= 0.466 + (0.0234 × 0.61)= 0.466 + 0.0142= 0.4802= 48.02%So, Rogot's pre-tax WACC is 48.02%.
b. The formula to find Roget's effective after-tax WACC is: WACC = (E / V × Re) + ((D / V × Rd) × (1 − Tc) × (1 - t))Where t is the tax rate Therefore, putting the values in the above formula,WACC = (2.8 / 3.9 × 14) + ((1.1 / 3.9 × 6) × (1 − 0.39) × (1 - 0.39))= 0.466 + (0.0234 × 0.61 × 0.61)= 0.466 + 0.0097= 0.4757= 47.57%
Hence, Rogot's (effective after-tax) WACC is 47.57%.
Therefore, the answers are:a. Rogot's pre-tax WACC is 48.02%.
b. Roget's (effective after-tax) WACC is 47.57%.
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In 2019, there were approximately 163 million people in the labor force and the unemployment rate was 3.7 percent. If the unemployment rate in 2019 had been 3 percent instead of 3.7 percent, Instructions: Round your responses to one decimal place. a. How many fewer workers would have been unemployed? million b. How many more would have been employed? million
In 2019, the labor force was approximately 163 million people and the unemployment rate was 3.7 percent. Now we are to find the number of fewer workers
That would have been unemployed if the unemployment rate was 3 percent instead of 3.7 percent.a) Fewer workers who would have been unemployed Number of people in the labor force = 163 millionIf the unemployment rate was 3 percent, then the number of unemployed workers would be (3/100) x 163 million = 4.89 million Now.
To find the number of fewer workers that would have been unemployed, we subtract the number of unemployed ..workers from the actual number of unemployed workers163 - 4.89 = 158.11 million 4.89 million fewer workers would have been unemployed if the unemployment rate was 3 percent instead of 3.7 percent.b) More workers.
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if Chief Audit Executive uses the knowledge acquired
in an audit engagement which he is leading in order to increase his
financial portfolio, there is an impairment to
confidentiality?
what are the po
Yes, there is an impairment to confidentiality if the Chief Audit Executive uses knowledge acquired in an audit engagement to increase his financial portfolio.
Confidentiality is a fundamental principle in auditing that requires auditors to protect sensitive information obtained during an engagement. If the Chief Audit Executive utilizes this knowledge for personal financial gain, it violates the principle of confidentiality. It undermines the integrity of the audit process and compromises the trust placed in the auditor's independence and objectivity. This type of behavior can lead to conflicts of interest, bias, and unethical conduct. It is essential for auditors to maintain strict confidentiality to ensure the integrity of the audit profession and the trust of stakeholders in the financial reporting process.
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Question 42 (05.02 MC) 1 pts An increase in aggregate demand, for a given short-run aggregate supply curve, should lead to which of the following results relating to the Phillips curve? An inward shift of the Phillips curve as inflationary expectations decrease A move onto the vertical long-run Phillips curve An increase in both unemployment and inflation An outward shift in the Phillips curve as inflationary expectations immediately increase A move up the short-run Phillips curve, with less unemployment and more inflation
An increase in aggregate demand, for a given short-run aggregate supply curve, would result in a move up the short-run Phillips curve, with less unemployment and more inflation.
When aggregate demand increases, it leads to higher levels of economic activity, increased spending, and a potential decrease in unemployment. As businesses expand to meet the higher demand, they may need to hire more workers, thus reducing unemployment levels. However, this increased demand can also lead to upward pressure on prices, resulting in inflation.
Moving up the short-run Phillips curve implies a trade-off between unemployment and inflation. In this case, the increase in aggregate demand leads to a reduction in unemployment, but it also brings about higher inflation rates. The short-run Phillips curve shows the inverse relationship between unemployment and inflation in the short term, indicating that reducing unemployment usually comes at the cost of higher inflation.
Hence, an increase in aggregate demand, while keeping the short-run aggregate supply curve constant, would result in a movement along the short-run Phillips curve, indicating less unemployment and more inflation. This trade-off between unemployment and inflation highlights the challenges faced by policymakers in managing macroeconomic variables.
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The Greenbriar is an all-cquity firm with a total market value of $530,000 and 21,000 shares of stock outstanding Martagement is considering issuing $125,000 of debt at an interest rate of 10 percent and using the proceeds on a stock repurchase. Ignore faxes How many shares will the firm repurchase if it issues the debt securities? 495 shares 4,953 shares 6,003 shares 5,503 shares 53,000 shares
The Greenbriar is an all-equity firm with a total market value of $530,000 and 21,000 shares of stock outstanding. Management is considering issuing $125,000 of debt at an interest rate of 10 percent and using the proceeds on a stock repurchase. Greenbriar will repurchase 4953 shares if it issues the debt securities.
The solution of the above problem is as follows:-
Market value per share of Greenbriar = (Total market value of Greenbriar) / (Number of shares of Greenbriar) = $530,000 / 21,000 shares = $25.24 per share.
The firm plans to issue debt securities worth $125,000 at an interest rate of 10%.The interest payable per annum on debt = 10% of $125,000 = $12,500.
The principal plus interest will have to be paid in future. Let's assume that the firm will pay back the debt in the future in one go.
For simplicity, assume that the firm will pay the debt in one year with an amount of principal and interest equal to $125,000 + $12,500 = $137,500.
Let's find out how many shares the company needs to repurchase to pay $137,500.The number of shares that the company will repurchase = (Amount of debt to be issued) / (Market value per share) = $137,500 / $25.24 per share ≈ 5454.93 ≈ 4953 shares (rounded to nearest whole number).
Therefore, In the event that the debt securities are issued, Greenbriar will repurchase 4953 shares.
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Access a recent copy of The Coca-Cola Company's financial statements (www.coca-colacompany.com). Identify and discuss the following aspects of consolidated tax expense disclosed in the financial statements:
1. Loss carry-forwards.
2. Components of deferred tax assets and liabilities.
3. Deferred tax impacts of stock sales by equity investees.
4. Deferred tax impacts of sales of interest in investees.
5. Valuation allowances of deferred taxes.
For a detailed analysis of The Coca-Cola Company's financial statements and the aspects of consolidated tax expense, I recommend visiting the official investor relations section of The Coca-Cola Company's website (www.coca-colacompany.com) or accessing their official financial reports.
These reports will provide the specific information and disclosures related to loss carry-forwards, deferred tax assets and liabilities, deferred tax impacts of stock sales by equity investees, deferred tax impacts of sales of interest in investees, and valuation allowances of deferred taxes for The Coca-Cola Company. Loss carry-forwards: Loss carry-forwards refer to the tax benefits that a company can carry forward from previous periods' losses to offset future taxable income. Components of deferred tax assets and liabilities: Deferred tax assets and liabilities arise from temporary differences between the financial reporting and tax accounting treatment of certain items. Deferred tax impacts of stock sales by equity investees: When equity investees sell stocks, they may realize gains or losses that have tax implications. Deferred tax impacts of sales of interest in investees: The sale of an interest in an investee may lead to deferred tax impacts. This arises when the proceeds from the sale are different for tax purposes than they are for financial reporting purposes. Valuation allowances of deferred taxes: Valuation allowances are established when it is uncertain whether deferred tax assets will be realized in the future.
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Please explain with examples as well for comprehension, Thank you. Will leave a Thumbs up. The four steps in a project financial analysis are: 1.Estimate the project's cash flows. 2.Assess the project's risk. 3.Estimate the discount rate. 4.Measure the financial impact. Discuss these steps and explain the importance of the process.
The four steps in project financial analysis are estimating cash flows, assessing risk, estimating the discount rate, and measuring the financial impact. These steps are crucial in evaluating the feasibility and profitability of a project.
Project financial analysis involves a series of steps to evaluate the financial viability and potential return on investment of a project. The first step is estimating the project's cash flows, which involves forecasting the expected inflows and outflows of cash over the project's lifespan. This includes revenue projections, operating expenses, taxes, and other relevant costs.
Assessing the project's risk is the next step, which involves identifying and analyzing potential risks and uncertainties that may impact the project's cash flows. This helps in understanding the potential downside and variability of the project's financial performance.
Estimating the discount rate is another critical step. The discount rate represents the opportunity cost of capital or the rate of return required by investors to compensate for the time value of money and the project's risk. It is used to calculate the present value of future cash flows, enabling a comparison of the project's profitability against alternative investment opportunities.
Finally, measuring the financial impact involves applying financial metrics and techniques such as net present value (NPV), internal rate of return (IRR), and payback period to assess the project's financial attractiveness and determine its potential impact on the company's overall financial performance.
These steps are essential in project financial analysis as they provide a structured approach to assess the project's feasibility, profitability, and risk profile. They help decision-makers evaluate investment opportunities, allocate resources effectively, and make informed decisions regarding project selection and financing.
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exercising good means following an individual plan for using credit wisely
Exercising good credit means following a personal plan to use credit responsibly.
Exercising good credit involves adhering to a customized plan that outlines responsible credit usage. This plan typically includes strategies such as making timely payments, keeping credit utilization low, and managing debt effectively. By following this individualized plan, individuals can maintain a positive credit history and improve their creditworthiness. Timely payments demonstrate financial responsibility and reliability to lenders, which can lead to favorable credit terms and interest rates. Keeping credit utilization low, or the percentage of available credit used, indicates a responsible borrowing pattern and suggests that an individual is not overly reliant on credit. Effective debt management involves minimizing outstanding balances and making progress in reducing debts over time. By diligently adhering to an individual credit plan, individuals can establish a strong credit profile and access better financial opportunities in the future.
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When the Bank of Canada increases the rate of money growth, the
result is both a lower inflation rate and a lower nominal interest
rate.
Question 10 options: True False
The given statement is true i.e. "When the Bank of Canada increases the rate of money growth, the result is both a lower inflation rate and a lower nominal interest rate.
"Explanation: Bank of Canada (BOC) is the central bank of Canada. It was established in 1934 under the Bank of Canada Act. The role of the Bank of Canada is to foster the economic and financial welfare of Canada. The BOC has several tools at its disposal to regulate the economy.
One of the main tools is monetary policy. Monetary policy refers to the actions undertaken by a central bank to regulate the supply of money and credit in an economy. The main objective of monetary policy is to promote price stability and full employment.
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Alpaca Corporation had revenues of $325,000 in its first year of operations. The company has not collected on $20,400 of its sales and still owes $28,500 on $98,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,200 in salaries. Owners invested $21,500 in the business and $21,500 was borrowed on a five-year note. The company paid $5,000 in interest that was the amount owed for the year, and paid $9,000 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. (Assume taxes are paid in the same year). Compute the cash balance at the end of the first year for Alpaca Corporation. Multiple Choice $222,148 $243,148 $168,280 $211348
To compute the cash balance at the end of the first year for Alpaca Corporation, we need to calculate the net cash flow from operating activities, investing activities, and financing activities.
Here's the breakdown: Net cash flow from operating activities:
Revenues collected: $325,000 - $20,400 = $304,600
Expenses paid:
Salaries: $14,200
Interest: $5,000
Income tax: ($325,000 - $20,400 - $14,200 - $5,000) * 0.4 = $116,080
Net cash flow from operating activities = Revenues collected - Expenses paid - Income tax = $304,600 - $14,200 - $5,000 - $116,080 = $169,320
Net cash flow from investing activities:
No information provided indicates any investing activities, so it is assumed to be $0.
Net cash flow from financing activities:
Owners' investment: $21,500
Borrowed on a note: $21,500
Net cash flow from financing activities = Owners' investment + Borrowed on a note = $21,500 + $21,500 = $43,000
Cash balance at the end of the first year:
Cash balance = Net cash flow from operating activities + Net cash flow from investing activities + Net cash flow from financing activities = $169,320 + $0 + $43,000 = $212,320
Therefore, the cash balance at the end of the first year for Alpaca Corporation is $212,320.
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using and finding methods of raising money for business operations
Using and finding methods of raising money for business operations is "capital raising."
Capital raising refers to the process of securing funds to support business operations, expansion, or investment needs. It involves identifying and utilizing various methods and sources to acquire the necessary capital. These methods can include both internal and external sources. Internally, businesses may use retained earnings or reinvest profits back into the company. External sources can involve debt financing (such as loans or bonds) or equity financing (such as issuing shares or attracting investors). Other methods of raising capital may include crowdfunding, grants, subsidies, or partnerships. The choice of methods depends on factors such as the business's financial situation, growth plans, risk tolerance, and access to different funding options. Effective capital raising is crucial for sustaining and growing a business, as it provides the necessary resources for day-to-day operations, investment in new projects, research and development, marketing efforts, and other strategic initiatives.
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If we assume that making and consuming a product leads to externalities, which of the following would be the Pareto efficient level?
a. If marginal private benefit matches marginal social benefit.
b. If marginal social cost matches marginal social benefit.
c. If marginal private cost matches marginal private benefit.
d. If marginal private cost matches marginal social benefit..
The Pareto efficient level, considering externalities in the production and consumption of a product, would be when marginal social cost matches marginal social benefit.
Externalities refer to the costs or benefits that are not directly reflected in the private costs or benefits of individuals or firms involved in the production or consumption of a product. When externalities exist, the market outcome may not be efficient and can lead to suboptimal resource allocation.
In the context of Pareto efficiency, the goal is to achieve an allocation of resources where it is not possible to make any individual better off without making someone else worse off. To achieve this, it is important to consider the overall societal costs and benefits.
Option (b) states that the Pareto efficient level is when marginal social cost matches marginal social benefit. This implies that the societal costs associated with the production and consumption of the product are equal to the societal benefits. In other words, the negative externalities (costs) and positive externalities (benefits) are properly accounted for, resulting in an efficient allocation of resources.
Options (a), (c), and (d) do not fully consider the externalities and focus solely on private costs and benefits, which may not lead to a Pareto efficient outcome.
Therefore, the most appropriate answer is option (b) - if marginal social cost matches marginal social benefit - for achieving Pareto efficiency in the presence of externalities.
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Foxworthy Corporation is one of the largest lumber and building materials suppliers in the Southwest. The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2021 ($ in 000s): sales revenue, $22,400; cost of goods sold, $14,550; selling expense, $2,310; general and administrative expense, $1,210; dividend revenue from investments, $210; interest expense, $310. Income taxes have not yet been accrued. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in 000s). All transactions are material in amount. 1. Investments were sold during the year at a loss of $310. Foxworthy also had an unrealized loss of $210 for the year on investments. The unrealized loss represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. 2. One of the company's factories was closed during the year. Restructuring costs incurred were $2,100. 3. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $810 in 2021 prior to the sale, and its assets were sold at a loss of $1,780. 4. A positive foreign currency translation adjustment for the year totaled $590. Required: Prepare Foxworthy's single, continuous statement of comprehensive income for 2021, including earnings per share disclosures. Use a multiple-step income statement format. Three million shares of common stock were outstanding throughout the year. (Enter your answers in thousands of dollars, except earnings per share. Amounts to be deducted should be indicated with a minus sign. Round Earnings per share answers to 2 decimal places).
The single, continuous statement of comprehensive income for Foxworthy Corporation for the year ended December 31, 2021, shows a total comprehensive income of $2,498, and earnings per share of $0.90.
Foxworthy Corporation's single, continuous statement of comprehensive income for 2021 includes earnings per share disclosures. Foxworthy's total revenue for the year was $22,400, and its cost of goods sold was $14,550. Foxworthy had selling expenses of $2,310, general and administrative expenses of $1,210, dividend revenue from investments of $210, and interest expenses of $310. Investments were sold during the year at a loss of $310, and the company had an unrealized loss of $210 for the year on investments. Restructuring costs incurred were $2,100, and a positive foreign currency translation adjustment for the year totaled $590. In 2021, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $810 in 2021 prior to the sale, and its assets were sold at a loss of $1,780. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The unrealized loss represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income.The comprehensive income is calculated as follows:Sales revenue$22,400
Less: Cost of goods sold14,550
Gross profit$7,850
Less: Selling expenses2,310
General and administrative expense1,210
Total operating expenses$3,520Operating income$4,330
Add: Dividend revenue from investments210
Other revenue:Foreign currency translation adjustment590
Total other revenue800
Gain on sale of operating division-970Total other expenses-520
Income before taxes3,610Income tax expense902
Net income$2,708Total comprehensive income$2,498
Earnings per share (EPS) are calculated as follows:
Net income available to common stockholders$2,708
Weighted-average common shares outstanding3,000
Earnings per share$0.90
Therefore, the single, continuous statement of comprehensive income for Foxworthy Corporation for the year ended December 31, 2021, shows a total comprehensive income of $2,498, and earnings per share of $0.90.
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Calculating product costs using activity-based costing (CIMA adapted) Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Activity Overhead $ Cost Driver Cost Driver Quantity Machine setup $ 200,000 # of setups 800 Inspection 120,000 # of quality tests Materials receiving 252,000 # of purchase orders The budgeted data for smartphone case production are as follows. Direct materials $2.50 per unit Direct labor. $0.54 per unit 92 Number of setups 400 Number of quality tests 50 Number of purchase orders 15,000 units Production 400 1,800 The budgeted data for smartphone case production are as follows. Direct materials $2.50 per unit Direct labor $0.54 per unit Number of setups 92 Number of quality tests 400 Number of purchase orders 50 15,000 units Production .. Required Use Activity-Based-Costing (ABC) method, show clear calculations, and answer the following questions: 1. Calculate the "activity rate" for each cost activity. 2. Calculate the total manufacturing costs of the 15,000 smartphones. ("hint: total direct material costs $2.50 per phone X 15000 phones; similar for the direct labor) 3. Calculate the manufacturing cost of one smartphone.
Activity Rate Calculation: Machine setup: Activity Rate = Machine setup overhead cost / Number of setups, Activity Rate = $200,000 / 800, Activity Rate = $250 per setup
Inspection:
Activity Rate = Inspection overhead cost / Number of quality tests
Activity Rate = $120,000 / 400
Activity Rate = $300 per quality test
Materials receiving:
Activity Rate = Materials receiving overhead cost / Number of purchase orders
Activity Rate = $252,000 / 50
Activity Rate = $5,040 per purchase order
Total Manufacturing Costs of 15,000 smartphones:
Direct materials cost: $2.50 per unit x 15,000 units = $37,500
Direct labor cost: $0.54 per unit x 15,000 units = $8,100
Manufacturing Cost of One Smartphone:
To calculate the manufacturing cost of one smartphone, we need to consider the direct materials cost, direct labor cost, and the costs associated with each activity based on their activity rates.
Manufacturing Cost of One Smartphone = Direct materials cost + Direct labor cost + (Machine setup cost per unit x Number of setups per unit) + (Inspection cost per unit x Number of quality tests per unit) + (Materials receiving cost per unit x Number of purchase orders per unit). Manufacturing Cost of One Smartphone = $2.50 + $0.54 + ($250 x 92) + ($300 x 400) + ($5,040 x 50).
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As a father, mr. wallace was rated low on nurturance and communication and high on maturity demands. he would most closely fit the parenting style that is identified as:________
As a father, mr. wallace was rated low on nurturance and communication and high on maturity demands. he would most closely fit the parenting style that is identified as:Authoritarian
Based on the description given, Mr. Wallace would most closely fit the parenting style identified as "authoritarian." This parenting style is characterized by low levels of nurturance and communication, but high levels of maturity demands.
Authoritarian parenting is known for its strict rules and high expectations. Parents who adopt this style tend to prioritize obedience and discipline over nurturing and communication. They often establish strict rules and enforce them without much flexibility. Communication tends to be one-sided, with parents giving orders and expecting them to be followed without question.
In Mr. Wallace's case, his low ratings on nurturance and communication suggest that he may not prioritize building emotional connections or open lines of communication with his child. However, his high rating on maturity demands suggests that he expects his child to meet high standards of behavior and responsibility.
It is important to note that different parenting styles can have varying effects on children's development. While authoritarian parenting can lead to discipline and responsibility, it may also result in decreased self-esteem and lower social skills. It is generally recommended for parents to adopt a balanced approach that combines firmness with warmth and open communication.
In conclusion, Mr. Wallace's parenting style aligns most closely with the "authoritarian" style, which emphasizes discipline and high expectations while lacking in nurturance and communication. This style may have both positive and negative impacts on a child's development.
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1 unit of Currency A costs 0.204 units of Currency B,1 unit of Currency B costs 3.91 units of Currency C, and 1 unit of Currency A costs 0.8 units of Currency C. Assume that you are starting out with 1,000,000 units of Currency A and that there are no transaction costs. How much money will you make in one set of triangular arbitrage transactions? Round to the nearest unit of Currency A.
In one set of triangular arbitrage transactions, you will make a profit of 81,000 units of Currency A. Triangular arbitrage involves taking advantage of pricing inconsistencies between three currencies to make a profit.
To determine the profit, we need to follow the currency exchange rates provided.
Currency A to Currency B:
1 unit of Currency A costs 0.204 units of Currency B. With 1,000,000 units of Currency A, you can exchange it for 1,000,000 * 0.204 = 204,000 units of Currency B.
Currency B to Currency C:
1 unit of Currency B costs 3.91 units of Currency C. With 204,000 units of Currency B, you can exchange it for 204,000 / 3.91 = 52,168 units of Currency C.
Currency C to Currency A:
1 unit of Currency A costs 0.8 units of Currency C. With 52,168 units of Currency C, you can exchange it for 52,168 * 0.8 = 41,734 units of Currency A.
Finally, you compare the initial amount of Currency A (1,000,000 units) with the final amount of Currency A (41,734 units). The profit made in this set of triangular arbitrage transactions is 41,734 - 1,000,000 = -958,266 units of Currency A.
However, it's important to note that this result indicates a loss, not a profit. It suggests that triangular arbitrage is not profitable in this scenario, as the exchange rates do not create an opportunity for a positive gain.
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According to the classical theory of money, reducing inflation will not make each year and give workers richer because firms will increase product prices. workers raises. a. more; larger b. more; smaller c. less; larger O d. less; smaller
Previous question
According to the classical theory of money, reducing inflation will not make each year and give workers richer because firms will increase product prices. This implies that the answer to this question is option C, less; larger.
The classical theory of money is a viewpoint in the economics field that proposes that inflation is caused by a rise in the supply of money in an economy. Classical economists believe that prices and wages are flexible and that there is a natural rate of unemployment. They believe that the government should not intervene in the economy.
Classical economists argue that a rise in the money supply results in a rise in prices, but that wages take longer to adjust. This implies that prices rise more than wages, reducing the actual purchasing power of money. This leads to a fall in demand for money and a rise in interest rates, which reduces the demand for credit, causing a fall in investment.
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12. Market equilibrium and disequilibrium The following graph shows the monthly demand and supply curves in the market for shirts. Use the graph input tooi to help you answer the following questions.
250 shirts are needed to reach equilibrium, and the price is $50. Because 250 shirts were required for a $50 price level, 250 shirts were given.
At $40 price level :
Quantity demanded = 375 shirts;
Quantity supplied = 230 shirts.
Shortage = Quantity demanded - Quantity supplied
= 375 - 230
= 145 shirts
The market is therefore lacking 145 shirts. The shirt market experiences pricing pressure due to a scarcity.
At $60 price level :
Quantity demanded = 130 shirts
Quantity supplied = 270 shirts
Surplus = Quantity supplied - Quantity demanded
= 270 - 130
= 140 shirts
140 shirts are therefore in excess on the market. The shirt market has downward pricing pressure as a result of excess.
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Which of the following statement is incorrect? O Portfolios with betas smaller than 1.0 contain more diversifiable risk than the market. Most of the answers are correct. The market risk premium is the required rate of return on the overall market minus the risk-free rate (km - krf) representing the additional return demanded by investors for taking on the risk of investing in the market itself. O Diversifiable risk is irrelevant because the diversity of each investor's portfolio essentially eliminates that risk. OA very risky project will have a high beta coefficient, whereas low risk projects will have a lower beta.
The incorrect statement is "Portfolios with betas smaller than 1.0 contain more diversifiable risk than the market". Beta measures market risk, also known as systematic risk, not diversifiable risk.
Beta is a measure of a stock's or portfolio's volatility in relation to the overall market. A beta less than 1.0 means that the security will be less volatile than the market. However, it doesn't mean that the portfolio contains more diversifiable risk. Diversifiable risk, also known as unsystematic risk, is the risk associated with individual assets - it can be mitigated through diversification, i.e., by holding a variety of assets in the portfolio. Beta, on the other hand, refers to non-diversifiable risk, which cannot be eliminated by adding more securities to the portfolio. Therefore, a lower beta doesn't equate to a more diversifiable risk. The other statements are correct. The market risk premium is indeed the additional return demanded by investors for taking on the risk of the market over the risk-free rate. Diversifiable risk can be essentially eliminated through proper portfolio diversification, and risky projects do typically have a high beta coefficient, reflecting their higher sensitivity to market movements.
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Echo Farm Supply's stock pnce is currently trading at $35 per share. The consensus among market analysts is that the stock should trade for $27.5. Der share, grven the amount, timing, and riskiness of the company's dividends, Is Echo Farm 5 upply more or less likely to teceive a hostile fakeover bid? More Rikely Less likely
Less likely. Based on the information provided, Echo Farm Supply's stock price is currently trading higher than the consensus target price among market analysts. This indicates that the market views the stock favorably and believes it is worth more than the current trading price.
Echo Farm Supply's stock price is currently trading at $35 per share, which is higher than the consensus target price of $27.5 per share according to market analysts. When a stock price is trading above the target price, it suggests that the market views the company positively and values it higher than the current trading price. As a result, it becomes less likely for the company to receive a hostile takeover bid. The higher stock price indicates that the market believes the company has good prospects and potential for growth, reducing the attractiveness for potential acquirers to pursue a hostile takeover. Therefore, based on the given information, it is less likely that Echo Farm Supply will receive a hostile takeover bid.
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In the circular flow model of the economy, there are two markets -- the product market and the resource market. The product market is where consumers buy goods and services. For example, when you, as a consumer, buy gasoline, your purchase would take place in the product market.
In contrast, when delivery services, such as FedEx, buy gasoline for their vehicles, those purchases would take place in the resource market.
Class -- What questions and comments do you have about the resource market? What real-world examples do you have?
The resource market is the market for the factors of production (labor, capital, natural resources, and entrepreneurial ability) that are used in the production of goods and services. It is where households sell their factors of production to firms. Firms, in turn, use these resources to produce goods and services that are sold in the product market.
The resource market plays a crucial role in the economy as it determines the cost of production. The cost of production, in turn, determines the price of goods and services in the product market. Higher costs of production lead to higher prices, while lower costs of production lead to lower prices. T
herefore, the resource market influences the level of inflation in the economy. Examples of resources bought and sold in the resource market include:
1. Labor: Wages paid to workers
2. Capital: Interest paid to investors who lend funds to firms
3. Natural resources: Payment made to owners of land and raw materials
4. Entrepreneurial ability: Profits earned by entrepreneurs who take risks in starting new businesses.
The resource market is closely related to the product market, and any changes in one market can affect the other. For example, if the demand for goods and services in the product market increases, firms will need to hire more workers and use more resources to produce the additional output. This, in turn, will increase demand for resources in the resource market and drive up their prices.
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You are required to use those financial statements to evaluate the performance of the company chosen using the folfowing tools: Best of luck a) The horizontal analytis b) The vertical analysis by using the common size baiance sheet and the common size income statement. c) The rato analysis by using the lieuidity and etficiency ratios, the solvency ratios, the profitabiity ratios and the market: arospecta (in case data mualability). 4.The project should include an introducton on what is periormance evalustian and analysin, ts irrportance and its mort comman toois used 5.The project ahguld include a conclusion containing your. cominents on the detformance of the comparve chosentased on the malvsis pertormed the conclusion should not be less than 3.200 worch 6.The invoevelson and the conclutitin thould be expretst!
The financial statements are crucial in the evaluation of the performance of a company using different tools such as horizontal analysis, vertical analysis, and ratio analysis. Performance evaluation and analysis refer to the process of analyzing a company's performance using various financial tools and techniques. The importance of performance evaluation and analysis lies in providing insights into a company's financial position and profitability.
Performance evaluation and analysis involve the process of analyzing a company's financial performance using different tools such as horizontal analysis, vertical analysis, and ratio analysis. The financial statements are crucial in the evaluation of the performance of a company using different tools. The horizontal analysis tool is used to evaluate the performance of a company over a period, usually two years. The tool evaluates the percentage change in the company's financial statements over a period. The vertical analysis tool is used to evaluate a company's financial statements, such as the income statement and balance sheet. The tool evaluates the percentage of each item on the financial statement to the total value of the statement. The common size balance sheet and common size income statement are used in vertical analysis. Ratio analysis evaluates a company's financial performance using different ratios such as liquidity ratios, efficiency ratios, solvency ratios, profitability ratios, and market prospect ratios. Liquidity ratios evaluate a company's ability to meet its short-term financial obligations. Efficiency ratios evaluate a company's ability to use its assets efficiently to generate revenue. Solvency ratios evaluate a company's ability to meet its long-term financial obligations. Profitability ratios evaluate a company's ability to generate profits from its operations. Market prospect ratios evaluate a company's ability to meet its future obligations.In conclusion, the performance of the chosen company is analyzed using various financial tools, and the conclusion contains the comments on the performance of the company based on the analysis. The evaluation process is crucial in providing insights into a company's financial position and profitability. The report should contain an introduction explaining performance evaluation and analysis, its importance, and the tools used in the analysis. The report should also contain an expert conclusion and involvement.
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to increase the sales of low-involvement products, marketing managers can:
To increase the sales of low-involvement products, marketing managers can use various techniques: Advertisements, Sample distribution, Point-of-purchase promotions.
The following are some of the techniques that marketing managers can use:
Advertisements: Advertisements can help to increase the sales of low-involvement products. Advertisements can help to inform customers about the product and can create an image of the product in the customer's mind.
Sample distribution: Distributing samples of low-involvement products can also help to increase sales. Customers can try the product and decide whether to purchase the product or not. This will help in increasing the sales of the low-involvement products.
Point-of-purchase promotions: Point-of-purchase promotions can also help to increase the sales of low-involvement products. These promotions can be in the form of discounts, coupons, and other offers that can encourage customers to purchase the product.
Using these techniques, marketing managers can increase the sales of low-involvement products.
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Do you agree with this analysis why or why not ?
Small businesses have the opportunity to change its legal form throughout its life span with many factors that can contribute to such changes such as prestige. While there are eleven questions listed in the text that should be asked in order to determine the value, and form of small businesses, I will focus on the three that I feel are the most important.
Under what legal form of organization is the firm now operating?
I chose this question specifically because how you start your company may not be how you finish. In my personal opinion, your vision may start out as one thing, be it a brand, or some sort of product that is fashionable. Take clothing for example. The graphics that are printed on shirts have meanings. Those meanings may snowball into something that is far greater than the original concept. Nike is famous for this, as the term "NIKE" means goddess of victory, hence the primary market being sports.
What are the major risks to which the firm is subjected?
My company is currently a Limited Liability Company (LLC) which combines the advantages of a corporation, such as liability protection, with the benefits of a partnership, which could include tax advantages. What does that mean? Owners and investors must report profits and losses on personal tax returns as if they were partnerships, but like corporations, limited liability is provided for members, even those who participate in management. Yet when it comes to federal tax returns, LLC’s can be taxed as if they were sole proprietorships, partnerships, or corporations. What your LLC files as determines the tax forms used to file. An entrepreneur must decide what their firm would be based on the advantages of the company, however disadvantages include higher expenses during taxation based on state laws, as they may not include recent tax changes.
Have you considered the management advantages of alternative legal forms?
This question holds a lot of weight for me personally. Getting into business is tough, especially when you don’t know exactly what it is that you want to do. Before you start any type of business venture, it’s best that all the facts are understood, and studied.
Define proprietorship, partnership, corporation, limited liability company, cooperative and joint venture. Why is it important to know this information?
A proprietorship is a business that is owned by one person. This means they are solely responsible for everything from the product, to revenue and losses.
A partnership is basically a pact between two people or a group of people that move as a unit (co-ownership) in a for profit business. All parties involved have unlimited liability for debts and obligations (Byrd, 57). There are several different varieties of partnerships that are also listed in the text.
A cooperative is a business composed of independent producers, wholesalers, retailers, or consumers that acts collectively to buy or sell for its clients (Byrd, 64). An example of such is your local grocery store. Profits are returned to the all parties involved at the end of each year which results in no profit or taxes.
A joint venture is a form of temporary partnership whereby two or more firms join in a single endeavor to make a profit (Byrd, 65). Typically firms that embark on joint veneers use other major firms in order to generate revenue, or for lack of a better word, get their brand, or product out there.
Reference: Byrd, M. J. (2018). Small business management: An Entrepreneur's guidebook. McGraw-Hill Education.
I cannot fully agree with this analysis because the provided text seems to be a personal reflection on small businesses and their legal forms, rather than a comprehensive analysis of the topic. The analysis touches on some important questions related to legal forms of small businesses, but it lacks a thorough examination of all relevant factors.
Understanding the legal form of a business is indeed crucial as it determines the structure, liability, and tax obligations of the company. The question about the current legal form of the firm acknowledges the possibility of changes in the legal structure over time. However, it's important to note that changing the legal form of a business involves legal procedures and considerations beyond just the vision or market changes. The analysis also briefly mentions the major risks to which a firm may be subjected and the management advantages of alternative legal forms. While these points are valid, a more comprehensive analysis should delve deeper into the specific risks associated with different legal forms and thoroughly explore the advantages and disadvantages of each option.
Additionally, the analysis mentions different legal forms such as proprietorship, partnership, corporation, limited liability company, cooperative, and joint venture, but only provides brief definitions without discussing their significance or the factors to consider when choosing among them. To have a more informative and accurate analysis, it's essential to explore each legal form in more detail, considering factors such as liability protection, taxation, decision-making authority, and operational flexibility.
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Hammonds Corporation is trying to decide between two order plans for its inventory of a certain item. Irrespective of the plan, demand for the item is expected to be 1 000 units annually. Under plan A, order costs would be $40 per order and inventory holding costs (carrying cost) would be $100 per unit per annum. Under plan B, order costs would be $30 per order while holding costs would be 20% of the unit cost which is $480. Determine: i. the economic order quantity for each plan. total inventory cost for each plan. ii. which plan would be better for Hammonds.
Plan B would be better for Hammonds.
Economic order quantity (EOQ)EOQ is the order size that reduces the total cost of ordering and holding inventory. EOQ provides a way to balance ordering costs with holding costs in order to minimize total inventory costs.Economic order quantity for plan AEOQ = √((2DS)/H)Where, D = Annual demandS = Cost per orderH = Holding cost per unit per annumEOQ for plan A= √((2 × 1000 × 40)/100)= √(800)= 28.28 units
Therefore, the economic order quantity for plan A is 28.28 units.Economic order quantity for plan BEOQ = √((2DS)/H)Where,D = Annual demandS = Cost per orderH = Holding cost per unit per annumEOQ for plan B= √((2 × 1000 × 30)/96)= √(625)= 25 units
Therefore, the economic order quantity for plan B is 25 units.Total inventory cost for each planFor plan A, Total inventory cost = Annual ordering cost + Annual holding cost= ((D/Q) × S) + ((Q/2) × H)Where, Q = Order quantityD = Annual demandS = Cost per orderH = Holding cost per unit per annumTotal inventory cost for plan A= ((1000/28.28) × 40) + ((28.28/2) × 100)= $1414.21
For plan B, Total inventory cost = Annual ordering cost + Annual holding cost= ((D/Q) × S) + ((Q/2) × H)Where, Q = Order quantityD = Annual demandS = Cost per orderH = Holding cost per unit per annumTotal inventory cost for plan B= ((1000/25) × 30) + ((25/2) × 96)= $1020The total inventory cost for plan A is $1414.21, while that of plan B is $1020.
Therefore, plan B would be better for Hammonds.
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