Exercise 22-7 Departmental contribution report LO P3
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect.
WHOLESALE GUITARS
Departmental Income Statements
For Year Ended December 31, 2017
Acoustic Electric Sales $ 102,600 $ 84,700 Cost of goods sold 44,275 47,650 Gross profit 58,325 37,050 Operating expenses Advertising expense 5,045 4,330 Depreciation expense—equipment 10,140 8,600 Salaries expense 20,000 17,300 Supplies expense 1,960 1,710 Rent expense 7,065 6,020 Utilities expense 2,975 2,550 Total operating expenses 47,185 40,510 Net income (loss) $ 11,140 $ (3,460 ) 1. Prepare a departmental contribution report that shows each department’s contribution to overhead.
2. Based on contribution to overhead, should the electric guitar department be eliminated?
No
Yes

Answers

Answer 1

1.To prepare a departmental contribution report that shows each department's contribution to overhead, we need to calculate the contribution margin for each department. 2.Based on contribution to overhead, the electric guitar department should not be eliminated.

1.Contribution margin is the difference between the department's sales revenue and its variable costs. Indirect expenses like advertising, rent, and utilities are not included in the contribution margin calculation as they are not directly related to the production of goods. Acoustic Guitar Department. Sales revenue - Cost of goods sold = Gross profit $102,600 - $44,275 = $58,325 Gross profit - Variable expenses (salaries and supplies) = Contribution margin $58,325 - ($20,000 + $1,960) = $36,365Electric Guitar Department: Sales revenue - Cost of goods sold = Gross profit $84,700 - $47,650 = $37,050 Gross profit - Variable expenses (salaries and supplies) = Contribution margin $37,050 - ($17,300 + $1,710) = $18,040. Contribution to overhead Acoustic Guitar Department: $36,365. Electric Guitar Department: $18,040

2. Although the electric guitar department has a net loss, it still contributes significantly to overhead. Eliminating the department would reduce the company's total contribution to overhead and could have negative effects on other departments' profitability. Additionally, the company may want to explore ways to improve the electric guitar department's performance rather than simply eliminating it.

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Answer 2

Exercise 22-7 requires the preparation of a departmental contribution report, which shows the contribution margin for each department within a company.

The following information is provided:

Sales Variable Expenses Fixed Expenses

A $300,000 $150,000 $75,000

B $200,000 $100,000 $50,000

C $400,000 $180,000 $120,000

To prepare the departmental contribution report, the contribution margin must first be calculated for each department. The contribution margin is the difference between the sales revenue and variable expenses. The fixed expenses are not included in this calculation because they are not affected by changes in sales volume.

Department A: $300,000 - $150,000 = $150,000

Department B: $200,000 - $100,000 = $100,000

Department C: $400,000 - $180,000 = $220,000

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Related Questions

boycotts or trade embargoes used by one group to apply political pressure on another are called _____

Answers

Boycotts or trade embargoes used by one group to apply political pressure on another are called economic sanctions. Economic sanctions are a form of political pressure that one country or group applies to another by prohibiting or limiting trade, investment, or other economic activities.

The goal of economic sanctions is to force the target country or group to change its policies or behavior, usually related to human rights violations, nuclear proliferation, or support for terrorism. Boycotts are a specific type of economic sanction that involves a group of people or organizations refusing to buy goods or services from a company or country. Boycotts can be organized for a variety of reasons, such as protesting unfair labor practices, environmental issues, or political policies. Trade embargoes, on the other hand, are a more comprehensive form of economic sanction that involves a government imposing restrictions on all trade with another country.


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Suppose you are the only owner of a chain of coffee shops near universities. Your current cafes are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance:
Your existing business generates $75,000 in EBIT.
The corporate tax rate applicable to your business is 35%.
The depreciation expense reported in the financial statements is $14,286.
You don't need to spend any money for new equipment in your existing cafes; however, you do need $11,250 of additional cash.
You also need to purchase $6,000 in additional supplies--such as cloth tablecloths and napkins, and more formal tableware--on credit.
It is also estimated that your accruals, including taxes and wages payable, will increase by $3,750.
Based on your evaluation, you have _____ in free cash flow.
Calculate the total free cash flow Show all work.

Answers

, the total free cash flow is $61,536.

What is the total Cash Flow Analysis?

To calculate the free cash flow, we need to start with the EBIT (Earnings Before Interest and Taxes) and adjust it for taxes, depreciation, changes in working capital, and capital expenditures. Let's break down the calculation step by step:

EBIT: $75,00O

Taxes: We apply the corporate tax rate of 35% to the EBIT.

Tax Expense = EBIT * Tax Rate

= $75,000 * 0.35

= $26,250

Depreciation: The depreciation expense is given as $14,286. Depreciation is a non-cash expense, so we add it back to the net income to calculate cash flow.

Depreciation Expense = $14,286

Changes in Working Capital: We need to consider the changes in cash related to additional cash, credit purchases, and accruals.

Additional Cash = -$11,250 (outflow)

Credit Purchases = $6,000 (increase in liabilities)

Changes in Accruals = $3,750 (increase in liabilities)

Changes in Working Capital = Additional Cash + Credit Purchases + Changes in Accruals

= -$11,250 + $6,000 + $3,750

= -$1,500 (negative value indicates a decrease in working capital)

Capital Expenditures: There is no mention of any capital expenditures in the given information. Therefore, we assume it to be zero.

Capital Expenditures = $0

Now, let's calculate the free cash flow using the formula:

Free Cash Flow = EBIT - Taxes + Depreciation + Changes in Working Capital - Capital Expenditures

Free Cash Flow = $75,000 - $26,250 + $14,286 - $1,500 - $0

= $61,536

Therefore, the total free cash flow is $61,536.

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The following information is available from previously prepared budgets for the upcoming month: Sales Revenue $530,000
Cost of Goods Sold 390,000 Selling and Administrative Expenses 21,000
Interest Expense 9,000 What is the budgeted operating income for the upcoming month? O A. $110,000 OB. $119,000 O c. $131,000 O D. $140,000

Answers

The budgeted operating income for the upcoming month can be calculated as follows:

Operating Income = Sales Revenue - Cost of Goods Sold - Selling and Administrative Expenses - Interest Expense

Substituting the given values:

Operating Income = $530,000 - $390,000 - $21,000 - $9,000

Operating Income = $110,000

Therefore, the correct option is (A) $110,000.

This represents the amount of income that the company is expected to generate from its operations during the upcoming month, after deducting all the expenses directly related to generating that income.

It is important to note that this is a budgeted amount, and actual results may differ depending on various factors such as changes in demand, competition, and other economic factors.

Therefore, by comparing actual results to budgeted amounts, companies can identify areas where they may need to make adjustments to improve performance.

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Assume the market for loanable funds is in equilibrium at 5% interest. All else being equal, if firms become more worried that economic conditions will soon worsen:
A. the equilibrium interest rate would fall and the equilibrium quantity of loanable funds would rise.
B. the equilibrium real rate of interest would become negative and the equilibrium quantity of loanable funds would remain unchanged.
C. the equilibrium interest rate would rise and the equilibrium quantity of loanable funds would fall.
D. both the equilibrium interest rate and the equilibrium quantity of loanable funds would fall.
E. both the equilibrium interest rate and the equilibrium quantity of loanable funds would rise.

Answers

C. If firms become more worried that economic conditions will soon worsen, the equilibrium interest rate would rise and the equilibrium quantity of loanable funds would fall.

When firms become more worried about worsening economic conditions, it implies a decrease in their confidence in future investment opportunities. As a result, firms may reduce their borrowing and investment activities, leading to a decrease in the demand for loanable funds.

With a decrease in the demand for loanable funds, the equilibrium interest rate would rise. This is because lenders, faced with lower demand, would seek to maintain or increase their returns by charging a higher interest rate on the available funds.

Moreover, the decrease in demand for loanable funds would also impact the equilibrium quantity of loanable funds, which would fall. This is because there would be less borrowing and investment activity from firms, resulting in a lower quantity of funds being supplied in the market.

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tom pays $80 each month for her auto insurance policy. this regular payment is called a:

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Tom pays $80 each month for her auto insurance policy. This regular payment is called a premium. This regular payment is called a "premium."

A premium is the amount of money an individual pays to an insurance company for coverage. The premium amount is determined based on factors such as the type of coverage, the individual's risk profile, and the likelihood of claims being filed.

In Tom's case, the $80 premium is the cost of her auto insurance coverage for one month. It is important to pay the premium on time to ensure continuous coverage and to avoid any penalties or lapses in coverage.

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Which of the following business-to-business terms refers to the routine purchase ofitems that a B2B customer regularly needs?1. Buying center2.Straight buy3. Buyclass4. New-task buy5. Modified rebuy

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The business-to-business term that refers to the routine purchase of items that a B2B customer regularly needs is option 2: Straight buy.

A straight buy is a term used to describe a purchasing situation where the buyer or B2B customer regularly buys a product or service from a specific supplier without any significant changes in the buying process. It is a repetitive or routine purchase that occurs on a regular basis. The buyer is familiar with the product, supplier, and the purchasing process, and there is no need for extensive evaluation or decision-making.

In a straight buy, the customer has established a relationship with a supplier and continues to make repeat purchases based on factors such as price, quality, reliability, and convenience. The buying decision is relatively straightforward and involves minimal risk or complexity.

The other options listed are different B2B buying situations:

1. Buying center refers to the group of individuals involved in the purchasing decision-making process.

3. Buyclass refers to different types or levels of purchasing decisions based on the level of complexity and risk.

4. New-task buy refers to a situation where the buyer is making a purchase for the first time, involving a complex and high-risk decision.

5. Modified rebuy refers to a situation where the buyer has some experience with the product or supplier but makes some modifications or changes in the purchasing decision.

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a rising rate of market interest would have which of the following impacts on a mortgage pass-through security?

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A rising rate of market interest would decrease the value of a mortgage pass-through security.  As a result, the fixed interest rate on existing mortgage pass-through securities becomes less attractive, leading to a decrease in their value.

A mortgage pass-through security is a type of investment that represents a claim on a pool of mortgage loans. These securities generate cash flows from the principal and interest payments made by homeowners on their mortgages. When market interest rates rise, new mortgage loans are typically issued at higher interest rates.

When market interest rates increase, potential investors seek higher returns, which diminishes the demand for mortgage pass-through securities with lower fixed interest rates. As a consequence, the price of these securities tends to decline. This decline in value is particularly relevant for mortgage pass-through securities with longer maturities or lower coupons, as their cash flows are discounted at a higher rate due to the rising market interest rates.

Overall, a rising rate of market interest has a negative impact on mortgage pass-through securities, leading to a decrease in their value. Investors holding these securities may experience capital losses if they decide to sell them before maturity. Conversely, investors who hold the securities until maturity will continue to receive the principal and interest payments as scheduled, but the opportunity cost of investing in higher-yielding securities will be higher due to the rise in market interest rates.

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The import substitution industrialization programs used by many developing nations ended up hurting the countries because they eventually had to import ...

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The import substitution industrialization programs used by many developing nations ended up hurting the countries because they eventually had to import the goods they were trying to produce domestically at a higher cost.

This reliance on imports meant that these nations had to use their foreign currency reserves to pay for the imports, which put a strain on their economies. Additionally, the focus on domestic production often led to inefficiencies and a lack of competitiveness in the global market. As a result, these countries found it difficult to keep up with the technological advancements of other nations and were unable to attract foreign investment. Ultimately, the import substitution industrialization programs were unsustainable and did more harm than good in the long run.

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.A monopolist faces the following demand curve:IPriceQuantity$511$472$423$364$295$216$1271. Refer to Table 15-5. The monopolist has total fixed costs of $60 and has a constant marginal cost of$15. What is the profit-maximizing level of production?a. 2 unitsb. 3 unitsc. 4 unitsd. 5 units

Answers

The profit-maximizing level of production for the monopolist is 2 units.

To determine the profit-maximizing level of production for the monopolist, we need to find the quantity where marginal cost (MC) equals marginal revenue (MR).

In this case, the demand curve is given in the form of a table:

Price Quantity

$5 11

$4 9

$3 6

$2 4

$1 2

To find the marginal revenue, we can observe the change in total revenue (TR) as quantity changes:

Quantity Total Revenue (TR)

2 $10

3 $12

4 $12

5 $10

From the table, we can see that the marginal revenue (MR) is $2 for the first unit, $0 for the second unit, and -$2 for the third unit.

Since marginal cost (MC) is constant at $15, we need to find the quantity where MR equals MC. In this case, it occurs at 2 units.

Therefore, the profit-maximizing level of production for the monopolist is 2 units (option a).

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As trade barriers have minimized, there has been a ______ (increase/decrease) in price competition within the European Union and NAFTA.

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As trade barriers have minimized, there has been an increase in price competition within the European Union and NAFTA.

The reduction of trade barriers, such as tariffs and quotas, within economic blocs like the European Union (EU) and the North American Free Trade Agreement (NAFTA), has led to increased price competition among member countries. With fewer restrictions on trade, companies within these regions have greater access to each other's markets, resulting in intensified competition.

The elimination or reduction of trade barriers allows companies to import goods more easily, increasing the availability of products from different countries within the bloc. This expanded market access leads to heightened competition among businesses to attract customers through competitive pricing strategies. As companies from different member countries compete directly with each other, they are motivated to offer more competitive prices to gain market share and remain competitive.

The increase in price competition within the EU and NAFTA benefits consumers, as it provides them with more choices and potentially lower prices for goods and services. However, it also poses challenges for businesses, as they must strive to maintain profitability while facing heightened competition. Overall, the reduction of trade barriers has created an environment of increased price competition within the European Union and NAFTA, driving businesses to adapt and innovate to remain competitive in the integrated market.

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here again are the boxplots showing annual incomes (in thousands of dollars) of households in two cities. Statstown - Medianville - 0 20 40 100 120 140 60 80 Annual Income Which city has a greater percentage of households with annual incomes between $50,000 and $80,000? Statstown Medianville Both cities have the same percentage of households with annual incomes between $50.000 and $80.000. It is impossible to tell from the boxplots.

Answers

Based on the provided boxplots for annual incomes of households in Statstown and Medianville, it is impossible to definitively determine which city has a greater percentage of households with annual incomes between $50,000 and $80,000.

Boxplots only show the minimum, maximum, median, and interquartile range (Q1 and Q3), and do not provide specific information regarding the percentage of households within a particular income range.

To accurately determine the percentage of households with annual incomes between $50,000 and $80,000, you would need to have access to the raw data or a more detailed representation of the income distribution for each city.

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What BEST describes the relationship between life responsibilities and job performance?
a.If things are going poorly in one's personal life, job performance will be high. b.If there is stress in one's personal life, one's job performance may be affected. c. If things are going well in one's personal life, things will go poorly in one's job. d.There is no relationship between one's personal life and one's job.

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The relationship between life responsibilities and job performance is best described as follows: If there is stress in one's personal life, one's job performance may be affected.

Option B accurately captures the relationship between personal life responsibilities and job performance. It acknowledges that when individuals experience stress, challenges, or difficulties in their personal lives, it can potentially impact their performance in the workplace. Personal issues such as health problems, family conflicts, financial concerns, or other life responsibilities can create emotional or mental strain, affecting focus, motivation, and overall job performance.

However, it's important to note that this relationship is not absolute or universal for everyone. Different individuals may respond differently to personal challenges, and some may possess coping mechanisms or support systems that mitigate the impact on their job performance.

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TRUE/FALSE. The salary of an athlete like Peyton Manning is in part a reward for his unique ability-something economists call economic rent.

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The statement is true. The salary of an athlete like Peyton Manning can be considered as a reward for his unique ability, which economists refer to as economic rent. Economic rent is the additional income earned by individuals or firms due to their possession of a unique skill, talent, or resource.

In economics, economic rent refers to the income earned above and beyond what is necessary to keep a resource in its current use. It is essentially the surplus income that individuals or firms receive due to their unique abilities or ownership of scarce resources. In the case of athletes like Peyton Manning, their exceptional skills and talents in sports make them valuable assets to sports teams and organizations. As a result, they are able to command high salaries that reflect their unique ability and the scarcity of individuals who possess similar skills.

The concept of economic rent applies to various industries and professions where individuals or firms possess specialized skills, talents, or resources that are in high demand. These individuals or firms are able to earn higher incomes compared to others in the same field because of their uniqueness and the limited supply of individuals with similar abilities. In the context of professional athletes, their extraordinary athletic abilities and the entertainment value they bring to fans and spectators contribute to their ability to negotiate high salaries, which can be considered as economic rent.

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manuel's company decided to implement a push strategy for its new line of health care products. that means the company will use blank______ to promote the products.

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Manuel's company decided to implement a push strategy for its new line of healthcare products. That means the company will use blankpersonalselling, sales force, trade promotions, and direct marketing to promote the products.

push strategy, the company focuses on pushing its products through the distribution channel towards the end customers. The goal is to generate demand at the retailer or wholesaler level and persuade them to carry and promote the products to the end consumers.

To achieve this, the company typically employs personal selling, where the sales force directly interacts with retailers, wholesalers, or other intermediaries to convince them to stock and promote the healthcare products. The sales force may offer incentives, discount , or promotional deals to encourage these intermediaries to push the products to the customers.

Trade promotions are also commonly used in push strategies. These promotions may involve offering special pricing, volume discounts, or promotional displays to retailers or wholesalers to motivate them to promote the healthcare products and increase sales.

Additionally, direct marketing tactics can be employed in a push strategy. This may involve sending targeted promotional materials or samples directly to retailers, wholesalers, or other intermediaries to encourage them to push the products to the end consumers.

By utilizing these promotional techniques, Manuel's company aims to create awareness and generate demand for its new healthcare products within the distribution channel, ultimately leading to increased sales and ad by end customers.

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a price reduction offered to channel members for featuring the manufacturer's product in their advertising or selling activities is called a(n) allowance.

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The statement is partially correct. A price reduction offered to channel members for featuring the manufacturer's product in their advertising or selling activities is indeed a type of allowance.

In marketing and sales, an allowance refers to a financial incentive or discount given by a manufacturer to channel members such as retailers or distributors. This allowance is provided as a form of compensation for various activities that promote the manufacturer's product. One such allowance is the "advertising allowance," where a price reduction is offered to channel members for featuring the manufacturer's product in their advertising efforts. By providing this allowance, the manufacturer encourages channel members to actively promote and advertise their products, which can increase sales and brand visibility.

It's worth noting that there are other types of allowances as well, such as slotting allowances (paid to retailers for stocking a new product), trade-in allowances (discounts given for trading in an old product), and cooperative advertising allowances (shared costs for joint advertising campaigns). These allowances are designed to incentivize and support channel members in their efforts to market and sell the manufacturer's products.

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Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner's beginning capital balance for the year; (2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Goodman: (b) 40% for Pinkman; and (c) 40% foy White. Net income was $200,000 in 2020 and $240,000 in 2021. Each partner withdrew $1.500 for personal use every month during 2020 and 2021. What was the amount of interest attributed to Pinkman in the income distribution for 2021? Multiple Choice $20,750. $17.450 $24.150 $17.500 $25.950

Answers

The amount of interest attributed to Pinkman in the income distribution for 2021 is $17,500.

To determine the amount of interest attributed to Pinkman in the income distribution for 2021, we need to calculate the interest for each partner based on their beginning capital balance and their agreed interest rate of 10%.

In 2020, Pinkman's beginning capital balance was $175,000. Therefore, the interest attributed to Pinkman for 2020 would be 10% of $175,000, which is $17,500.

In 2021, the beginning capital balance is not provided, but we know that Pinkman withdrew $1,500 for personal use every month in both 2020 and 2021. Since the interest is based on the beginning capital balance, we need to subtract the withdrawals made by Pinkman from his beginning capital balance. In total, Pinkman withdrew $1,500 x 12 months = $18,000 in both 2020 and 2021.

Considering Pinkman's annual compensation of $15,000, we can calculate his adjusted beginning capital balance for 2021 as follows: $175,000 - $18,000 - $15,000 = $142,000.

Therefore, the interest attributed to Pinkman for 2021 would be 10% of $142,000, which equals $14,200. Adding the interest from 2020 ($17,500) and 2021 ($14,200), the total interest attributed to Pinkman in the income distribution for 2021 is $17,500.

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True.False: The purpose of enterprise resource planning is to support planning and execution systems and the decisions they drive throughout your company.

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True. The purpose of enterprise resource planning (ERP) is indeed to support planning and execution systems within a company.

Enterprise resource planning (ERP) is a software system that integrates various business functions such as finance, human resources, supply chain management, and customer relationship management. The purpose of an ERP system is to support planning and execution systems and the decisions they drive throughout the company. This includes providing a single source of accurate and real-time data that enables decision-makers to make informed decisions about the business. ERP systems help organizations to streamline business processes, improve efficiency, reduce costs, and increase productivity. Therefore, it is true that the purpose of enterprise resource planning is to support planning and execution systems and the decisions they drive throughout the company.

ERP systems facilitate the integration of various business processes, such as finance, human resources, and procurement, enabling more efficient decision-making and better overall management throughout the organization.

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according to the text, in the united states in the _____, many economists believed that there was a trade-off between inflation and unemployment.

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According to the text, in the United States in the 1960s and 1970s, many economists believed that there was a trade-off between inflation and unemployment. This trade-off was known as the Phillips curve.

During the 1960s and 1970s, the prevailing economic theory suggested that there was an inverse relationship between inflation and unemployment. It was believed that when unemployment was low, inflation would tend to rise, and when unemployment was high, inflation would tend to fall. This concept was illustrated by the Phillips curve, named after economist A.W. Phillips, who observed the relationship between wage inflation and unemployment in the United Kingdom.

The Phillips curve suggested that policymakers faced a trade-off between these two variables. They could choose to stimulate the economy and reduce unemployment, but it would come at the cost of higher inflation. Conversely, they could choose to combat inflation by implementing contractionary policies, but it would result in higher unemployment.

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if the fed lends to member banks, what happens to reserves and the money supply?

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When the Federal Reserve lends to member banks, it increases the reserves held by those banks. This is because the loans are provided in the form of reserves.

An increase in reserves means that banks have more money to lend out, which can lead to an increase in the money supply. This is because when banks lend out the additional reserves, those loans create new deposits, which are a component of the money supply.

However, the impact on the money supply depends on how banks choose to use the additional reserves. If they choose to hold on to them as excess reserves, then there will be no impact on the money supply. Excess reserves are reserves held by banks that exceed the amount required by law. They are held as a cushion against unexpected withdrawals and are not lent out.

If banks choose to lend out the additional reserves, then the money supply will increase. This is because the loans create new deposits, which increase the overall amount of money in circulation. The increase in the money supply can lead to inflationary pressures if it exceeds the growth rate of the economy.

In summary, when the Federal Reserve lends to member banks, it increases reserves, which can lead to an increase in the money supply if banks choose to lend out the additional reserves.

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Which of the following statements is accurate about reasonable accommodation? Accommodation well short of the point of undue hardship to the employer is acceptable in certain circumstances. An employer is only required to accommodate in the case of discrimination on the basis of gender. Employers are expected to redesign a workstation to enable an individual with a physical disability to do a job. Employers are not expected to adjust work schedules to accommodate religious beliefs.

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The accurate statement about reasonable accommodation is that accommodation well short of the point of undue hardship to the employer is acceptable in certain circumstances.

Reasonable accommodation refers to the legal obligation of employers to make adjustments or modifications in the workplace that enable individuals with disabilities or protected characteristics to perform their job duties effectively.

Under the Americans with Disabilities Act (ADA) and other anti-discrimination laws, employers are required to provide reasonable accommodation unless it would impose an undue hardship on the employer. Reasonable accommodation can take various forms, such as modifying work schedules, providing assistive devices, making physical changes to the workspace, or adjusting policies and practices.

While employers are generally expected to accommodate individuals with disabilities, reasonable accommodation also extends to other protected characteristics, such as religion. Employers may need to adjust work schedules or practices to accommodate employees' religious beliefs, as long as it does not impose an undue hardship on the employer.

In summary, the accurate statement is that employers are required to provide reasonable accommodation as long as it does not create an undue hardship. Accommodation is not limited to gender-based discrimination and may include adjustments to workstations, schedules, and other aspects of the job to accommodate disabilities and protected characteristics.

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provide at least one example of an appropiate cost driver (allocation abse) for each of the following activities: engineers design a product production layout

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An appropriate cost driver for engineers designing a product could be the number of hours spent on the design process. This is because the longer the engineers spend on designing the product, the higher the costs will be for the company. By allocating costs based on the number of hours worked, the company can accurately track the costs associated with the design process and ensure that they are properly allocated.

For production layout, an appropriate cost driver could be the square footage of the production area. This is because the larger the production area, the higher the costs will be for maintaining and operating it. By allocating costs based on the square footage of the production area, the company can ensure that they are properly allocating costs associated with the production layout and can make adjustments as needed to reduce costs and improve efficiency.

In both cases, using appropriate cost drivers will help the company to accurately allocate costs and make informed decisions about how to improve efficiency and reduce costs in the future.

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Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions? Totally integrated contracts.

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Totally integrated contracts cannot be contradicted or supplemented by evidence of the prior agreements or expressions.

This is because a totally integrated contract is a complete and final agreement between the parties involved, meaning that all terms and conditions have been included in the document.

Therefore, any prior agreements or expressions that are not included in the contract are deemed irrelevant and cannot be used to modify the terms of the agreement. This is to ensure that all parties involved have a clear understanding of their obligations and rights under the contract, without any confusion or misunderstanding.

Overall, a totally integrated contract provides a level of certainty and predictability to the parties involved, which is important in any legal agreement.

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the manager of synergy company's stock division projects the following for next year: sales $195,000 operating income 70,000 operating assets 385,000 the manager can invest in an additional project that would require $50,000 investment in additional assets and would generate $9,000 of additional income. the company's minimum rate of return is 15%. what is the residual income for the stock division without the additional investment? group of answer choices $13,450 $6,000 $18,000 $12,250 $16,600

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To calculate the residual income for the stock division without the additional investment, we need to subtract the minimum rate of return from the division's operating income divided by its operating assets.

Residual income = Operating income - (Minimum rate of return x Operating assets) Given:
Operating income = $70,000
Operating assets = $385,000
Minimum rate of return = 15%
Residual income = $70,000 - (0.15 x $385,000)
Residual income = $70,000 - $57,750
Residual income = $12,250
Therefore, the residual income for the stock division without the additional investment is $12,250. This means that the division is generating more than the minimum rate of return and is contributing positively to the company's overall profitability. If the manager chooses to invest in the additional project, they should ensure that the project generates a return that is higher than the minimum rate of return of 15%.

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Kayla and Rhys started fighting last week over who was going to be in charge of the Nickerson project. Budget cuts have made both of them grumpy.A. DirectB. Indirect

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The situation described in the question is an example of indirect conflict. Indirect conflict occurs when two individuals are not directly confronting each other but are instead dealing with the same situation or issue in different ways. In this case, Kayla and Rhys are both vying for control over the Nickerson project, which has been affected by budget cuts.

These budget cuts have caused both of them to become grumpy, which is a common emotional response to conflict.
To resolve this conflict, Kayla and Rhys need to communicate effectively with each other and find a compromise that works for both of them. They should focus on finding solutions that are in line with the project's goals and budget constraints. By working together, they can come up with a plan that will benefit the project and help them both achieve their goals.
It is important to remember that conflicts are a natural part of any workplace and that they can be resolved through effective communication and collaboration. By addressing conflicts head-on and finding common ground, individuals can create a positive work environment and achieve success in their projects.

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compare and contrast the types of companies that stand to benefit the most from a social media strategy, and those that might want to limit their exposure

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When it comes to social media strategy, different types of companies will have varying levels of success and may need to adjust their level of exposure accordingly.

The first group that stands to benefit the most are businesses with a strong brand identity and customer engagement. This includes companies that sell products that are visually appealing, such as fashion or beauty items, as well as those that sell experiences, like restaurants or travel agencies. These companies can showcase their products and services on social media, engage with customers, and build a community around their brand.
On the other hand, companies that sell more complex or niche products or services may want to limit their exposure on social media. For example, businesses that offer specialized B2B services may not see as much success on social media platforms, as their target audience may not be as active or engaged in these spaces. Additionally, companies that operate in heavily regulated industries, like finance or healthcare, may be limited in what they can share on social media due to compliance and regulatory concerns.
Overall, companies that invest in a strong social media strategy can see significant benefits in terms of brand awareness, customer engagement, and ultimately, sales. However, it is important for companies to assess their unique needs and goals to determine whether or not a social media presence is the right fit for them.

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in an exponential smoothing forecast, a higher level of smoothing constant (α) will place more emphasis on recent history. T/F

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True. In an exponential smoothing forecast, a higher level of smoothing constant (α) will indeed place more emphasis on recent history.

Exponential smoothing is a popular forecasting technique that assigns weights to past observations, with the weights exponentially decreasing as the observations become older. The smoothing constant (α) determines the rate at which the weights decrease. A higher value of α means that more weight is assigned to the most recent observations, resulting in a greater emphasis on recent history.

By placing more weight on recent observations, a higher smoothing constant captures short-term fluctuations and adjusts the forecast more quickly to reflect recent changes in the data. This is suitable when there is a high level of variability or when the most recent data points are considered more representative of the future. However, it also makes the forecast more sensitive to random fluctuations and short-term trends, potentially leading to less stability in the forecast over time.

Conversely, a lower smoothing constant places more weight on older observations, resulting in a smoother forecast that is less responsive to recent changes. This can be useful when there is low variability or when a longer-term trend is more relevant for the forecast.

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T/F if an advertiser sees a large potential segment being served by a competitor with a big budget, it should always withdraw from the marketplace.

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FALSE. If an advertiser sees a large potential segment being served by a competitor with a big budget, it should not always withdraw from the marketplace.

The decision to withdraw or stay in the market should be based on a careful analysis of various factors, including the advertiser's own capabilities, competitive advantages, market potential, and available resources.

Withdrawing from the marketplace solely based on the presence of a competitor with a big budget can be a hasty and uninformed decision. Instead, advertisers should evaluate their unique value proposition, target audience, and marketing strategies. They should consider whether they can differentiate themselves from the competition and effectively reach and serve the identified segment.

It is possible that even with a big-budget competitor, an advertiser can find success by focusing on niche markets, offering specialized products or services, leveraging innovative marketing tactics, or providing superior customer experiences.

By conducting thorough market research and strategic planning, advertisers can identify opportunities and develop effective strategies to compete in the marketplace, even in the presence of a formidable competitor. The key lies in understanding their own strengths, finding their unique position, and delivering value to their target audience.

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Find the following if the market is controlled by two firms who make their production decision simultaneously (Cournot): a. Quantities supplied by each firm. b. Market Price Profits earned by each firm. d. Deadweight loss under the duopoly. BR functions, and NE. C. e.

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In a Cournot duopoly, two firms make production decisions simultaneously in a market. The objective is to find the quantities supplied by each firm, market price, profits earned by each firm, deadweight loss, best response functions, and Nash equilibrium.

To determine the quantities supplied by each firm in a Cournot duopoly, we need to analyze their best response functions. The best response function for each firm represents the optimal quantity it chooses to produce given the quantity produced by its competitor. By solving for the intersection of the best response functions, we can find the quantities supplied by each firm at the Nash equilibrium.

Once we know the quantities supplied by each firm, we can determine the market price. The market price is determined by the demand curve and the total quantity supplied by both firms. It is calculated by finding the price at which the quantity demanded equals the sum of the quantities supplied by both firms.

To calculate the profits earned by each firm, we multiply the price at the Nash equilibrium by the quantity supplied by each firm and subtract the total cost of production. The profit is the difference between the revenue earned and the cost incurred.

Deadweight loss under the duopoly refers to the inefficiency caused by the market power of the two firms. It represents the loss of consumer and producer surplus compared to a perfectly competitive market. Deadweight loss occurs when the quantity supplied by the duopoly is less than the socially optimal quantity, resulting in a loss of welfare.

To summarize, in a Cournot duopoly, we can determine the quantities supplied by each firm, market price, profits earned by each firm, and deadweight loss. These values are derived from analyzing the best response functions, finding the Nash equilibrium, and considering the demand and cost structures in the market.

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An investor who owns shares in ABC company is notified of a rights offering. If the investor decides to participate in this offering
I. her stake in company ownership will not be diluted
II. she must sell all her ABC shares
III. she will acquire more ABC shares
IV. she will convert her equity holdings to a senior debt position
A) I and III
B) II and IV
C) II and III
D) I and IV

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An investor who owns shares in ABC company is notified of a rights offering. If the investor decides to participate in this offering A) I and III

If the investor decides to participate in the rights offering, she will not have her stake in company ownership diluted (I), and she will acquire more ABC shares (III). This is because a rights offering allows existing shareholders to purchase additional shares at a discounted price, usually in proportion to their existing holdings. By participating, the investor can maintain her ownership percentage in the company while acquiring more shares at a favorable price.

Option II is incorrect because participating in the rights offering does not require the investor to sell all her ABC shares. Option IV is also incorrect because participating in the rights offering does not involve converting equity holdings to a senior debt position.

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Select each of the reasons why health care is expensive. Choose one or more: A. Government-sponsored health insurance increases demand for medical services. B. The coverage of treatment costs by private insurers leads patients to agree to tests and medical visits they otherwise would not. C. Uninsured people refuse to use emergency services but contribute to high spending by their relative overuse of preventive treatment. D. The coverage of treatment costs by private insurers leads doctors to order tests that may not be necessary, as the patient is not paying for them directly.

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Health care is expensive due to multiple factors, which include A, B, C, and D.

Government-sponsored health insurance increases demand for medical services, which in turn raises the overall cost of healthcare. Additionally, the coverage of treatment costs by private insurers leads patients to agree to tests and medical visits they otherwise would not, thereby increasing healthcare expenditure. Furthermore, uninsured people who refuse to use emergency services contribute to high spending by their relative overuse of preventive treatment. Finally, the coverage of treatment costs by private insurers leads doctors to order tests that may not be necessary, as the patient is not paying for them directly, leading to higher healthcare expenses overall.

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