Three modern types of organizational structures: Matrix structure, Team structure, Network structure. Structure is an integral part of an organization because it establishes roles and responsibilities. Three aims of organizational design are:Optimizing decision-making processes. The starting point for an organizational analysis is to identify the organization's objectives, structure, and processes.
1) Three modern types of organizational structures:
1. Matrix structure: Advantage: The matrix structure encourages teamwork, cross-functional communication, and the utilization of specialized resources.
Disadvantage: It is difficult to coordinate activities between different projects or products, as it can lead to confusion.
2. Team structure: Advantage: The team structure allows for quick decision-making, increased employee involvement, and autonomy.
Disadvantage: The team structure has a limited ability to produce significant economies of scale.
3. Network structure: Advantage: The network structure provides businesses with increased flexibility, access to expertise and resources, and the ability to quickly change operations.
Disadvantage: The network structure lacks the formal organizational structure that promotes efficiency and cost reduction.
2) Structure is an integral part of an organization because it establishes roles and responsibilities, creates communication channels, and provides a framework for decision-making and accountability.
A well-designed structure enables employees to understand how they fit into the organization and contributes to a company's success.
3) Three aims of organizational design are:Optimizing decision-making processes. Improving organizational efficiency and productivity.Creating an organizational structure that aligns with the company's goals.
4) The starting point for an organizational analysis is to identify the organization's objectives, structure, and processes. This can be done through a series of surveys, interviews, and data collection.
5) The steps to successful organizing, as identified by Whittington and Molloy (2005), are: Assess the external environment.Analyze the organization's capabilities and resources.Create a strategic vision and objectives. Develop a plan for achieving goals. Implement the plan and monitor progress.
6) Three key attributes of successful leaders as part of an organizational design, as listed by Foster (2017), are: Being able to develop and communicate a clear strategic vision. Building a culture of innovation and accountability. Creating an environment of trust and collaboration.
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Noah's Board of Directors decided to issue a 10 percent stock dividend on the 910 outstanding shares of its $2 par value common stock. Market price at the time of the stock dividend was $10 per share. The account Paid in Capital (PIC) in excess of par would be increased by what amount in total as a result of this dividend.
The paid in capital (pic) in excess of par would be increased by $728 in total as a result of this dividend.
the paid in capital (pic) in excess of par would be increased by $9,100 in total as a result of this dividend.a stock dividend of 10 percent means that for every 10 shares held, an additional share will be issued. in this case, with 910 outstanding shares, a 10 percent stock dividend would result in the issuance of 91 new shares (910 x 10%).
to determine the increase in the paid in capital (pic) in excess of par, we need to consider the market price at the time of the stock dividend. the market price per share was $10, and the par value per share was $2. , the excess over par per share is $10 - $2 = $8.multiplying the excess over par per share by the number of new shares issued gives us the total increase in the paid in capital (pic) in excess of par: $8 x 91 = $728.
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Judy is set to establish a reorder policy for his remote snack bar located in Fiji. She sells 8 cases of soda per day and has a lead-time for delivery of one week. Occasionally, bad weather or mechanical difficulty can delay his delivery by up to four days. At what point should Judy reorder (how many cases on hand) if she wants to also compensate for unexpected order delays? 74 cases 56 cases 100 cases 88 cases
To determine the point at which Judy should reorder, we need to consider the average daily demand and the lead time with potential delays.
Average daily demand = 8 cases per day
Lead time for delivery = 1 week (7 days)
Potential delay in delivery = up to 4 days
To calculate the reorder point, we need to account for the average daily demand during the lead time, including the potential delay.
Reorder Point = Average daily demand x (Lead time + Potential delay)
Reorder Point = 8 cases per day x (7 days + 4 days)
Reorder Point = 8 cases per day x 11 days
Reorder Point = 88 cases
Therefore, Judy should reorder when she has 88 cases on hand if she wants to compensate for unexpected order delays. The correct answer is 88 cases.
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From an account originally containing $2250,$65 is withdrawn at the end of each month. If interest is 8.9% compounded quarterly, for how long can the withdrawals be made? State your answer in years and months (from 0 to 11 months). The withdrawals can be made for year(s) and month(s).
The withdrawals can be made for 2 years and 8 months.
To calculate the duration, we need to determine when the account balance will be depleted. Each month, $65 is withdrawn from the initial balance of $2250. The interest is compounded quarterly at a rate of 8.9%.
Using the formula for compound interest, we can calculate the balance after a certain period. The formula is:
A = P(1 + r/n)^(nt)
Where:
A = final amount
P = principal amount (initial balance)
r = annual interest rate (8.9% or 0.089)
n = number of times interest is compounded per year (quarterly, so 4)
t = time in years
Let's solve for t:
2250(1 + 0.089/4)^(4t) = 65
Dividing both sides by 65:
34.6154 = (1 + 0.02225)^(4t)
Taking the natural logarithm of both sides:
ln(34.6154) = ln(1 + 0.02225)^(4t)
Using the logarithmic property:
ln(34.6154) = 4t * ln(1.02225)
Dividing both sides by 4 * ln(1.02225):
t = ln(34.6154) / (4 * ln(1.02225))
Plugging this into a calculator:
t ≈ 0.228
Since we're dealing with months, multiply by 12:
t ≈ 2.736
Therefore, the withdrawals can be made for approximately 2 years and 8 months.
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You are considering making a movie. The move is expected to cost $109 million up front and take a year to make. After that, it is expected to make $48 million in the year it is released and $18 millon for the following four yoars. What is the payback period of this investment? if you require a payback period of two years, will you make the movie? Does the move have positive NPV if the cost of captal is 108% ? What is the payback penod of this investment? The payback penod is years. (Round to one decimal place) If you require a payback penod of two years, will you make the movio? (Select from the drop down menu) Does the move have positive NPV if the cost of capital is 108% ? If the cost of capital is 108%, tho NPV is 5 million. (Round to fwo decimal places)
The payback period of the investment is 3.2 years. If a payback period of two years is required, the movie would not be made. The movie has a positive NPV if the cost of capital is 108%, with an NPV of $5 million.
Since the required payback period is two years, the movie would not be made because it exceeds the specified payback period.
The net present value (NPV) is a measure of the profitability of an investment, considering the time value of money. To calculate the NPV, the cash flows are discounted at the cost of capital, which in this case is 108%. If the NPV is positive, it indicates that the investment is expected to generate returns higher than the cost of capital.
In this scenario, if the cost of capital is 108%, the movie has a positive NPV of $5 million. This suggests that the movie is expected to generate a return higher than the cost of capital, making it a potentially profitable investment.
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Explain the concept of "SMART" w.r.t measurement of quality and the importance of statistics in the world of QEM(Quality Engineering Management). With example elaborate types of quality control measures.
The concept of "SMART" in the measurement of quality refers to setting specific, measurable, achievable, relevant, and time-bound objectives and goals. SMART goals ensure that quality targets are well-defined and can be effectively monitored and evaluated. It helps in ensuring clarity, focus, and accountability in quality management efforts.
Statistics play a crucial role in the world of Quality Engineering Management (QEM). They provide valuable insights into the performance of processes, identify trends, and support data-driven decision-making. By utilizing statistical tools and techniques, organizations can analyze data, measure process capability, identify variations, and make improvements based on objective evidence.
Examples of quality control measures include Statistical Process Control (SPC), Six Sigma, Acceptance Sampling, Failure Mode and Effects Analysis (FMEA), and Design of Experiments (DOE). SPC uses control charts to monitor and control processes, Six Sigma focuses on reducing defects and variations, Acceptance Sampling involves inspecting samples to determine product quality, FMEA identifies and mitigates potential failures, and DOE optimizes process variables. These measures help organizations maintain consistent quality, reduce defects, and enhance overall performance.
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Company K's competitors have tried very hard, but they have been unable to determine exactly the source of Company K's superior performance. In this case, Company K's competitive advantage is protected against imitation by ______.
a. causal ambiguity
b. social complexity
c. path dependence
d. property rights
The correct answer is a. causal ambiguity. Causal ambiguity refers to the situation where competitors are unable to fully understand or determine the exact reasons behind a firm's superior performance.
It means that the relationship between the firm's resources, capabilities, and competitive advantage is not easily discernible or replicable.
This lack of understanding or ambiguity surrounding the causal factors protecting Company K's superior performance makes it difficult for competitors to imitate or replicate its competitive advantage effectively.
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Please respond to these prompts with thoughtful and nuanced answers:
Prof. Chidi Anagonye finds a wallet on the ground. It has $52 dollars, several credit cards, and a driver's license with an address on it. No one sees him find it and no one has come looking for it.
1. Please pick Utilitarianism, Kantianism, Virtue Ethics, or Care Ethics and create the best ethical argument you can to convince him to return the wallet. [Please be thoughtful and thorough.]
2. Please pick Utilitarianism, Kantianism, Virtue Ethics, or Care Ethics and create the best ethical argument you can to convince him to keep the wallet. [Please be thoughtful and thorough.]
Read Ethical Dilemma 6 on page 251. Please note that trading stocks on information that is not public is insider trading and illegal. Those who share such information or trade on such information face federal criminal charges.
3. Please pick Utilitarianism, Kantianism, Virtue Ethics, or Care Ethics and create the best ethical argument you can to convince the employee that they should share the information with Julia.
4. Please pick Utilitarianism, Kantianism, Virtue Ethics, or Care Ethics and create the best ethical argument you can to convince the employee that they should NOT share the information with Julia.
Utilitarianism: In the case of Prof. Chidi finding the wallet, a utilitarian ethical argument would emphasize the overall happiness and well-being of the affected parties.
Returning the wallet would be the morally right action as it maximizes overall utility. By returning the wallet, Prof. Chidi ensures that the owner is not burdened by the loss of money and essential identification. The act of returning the wallet promotes trust within the community and encourages a sense of cooperation. It sets a positive example for others and contributes to a society where individuals feel secure in their possessions. Ultimately, the happiness derived from the wallet's return outweighs any temporary gain Prof. Chidi may experience by keeping the money.
Virtue Ethics: In virtue ethics, the focus is on the character and moral virtues of the individual. In this situation, the best ethical argument to convince Prof. Chidi to keep the wallet would be based on cultivating virtues such as honesty, integrity, and respect for others. By keeping the wallet and not making an effort to return it, Prof. Chidi would be acting contrary to these virtues.
Care Ethics: Care ethics prioritizes the importance of relationships, empathy, and compassion in ethical decision-making. In this scenario, the best ethical argument to convince the employee to share the information with Julia would be rooted in care ethics. By sharing the information, the employee acts in a caring manner towards Julia. The act of sharing valuable information can be seen as an expression of concern for her well-being and interests.
Kantianism: Kantian ethics focuses on the concept of moral duty and the universality of moral principles. In this context, the best ethical argument to convince the employee not to share the information with Julia would be based on Kantianism. According to Kant, one should act according to moral principles that can be universally applied. In this case, the principle would be not to engage in insider trading, as it is illegal and unethical. By refraining from sharing the information, the employee upholds the moral duty to act in accordance with the law and avoid engaging in activities that harm others or undermine the integrity of the stock market.
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tar Boutique's current share price is $20 and it is expected to pay a $1 dividend per share next year. After that, the firm's dividends are expected to grow at a constant rate of 4% per year. What is the company's cost of capital?
2) Star Boutique also has preferred stock outstanding that pays a $2 per share fixed dividend and the preferred stock is currently priced at $28, What is the company's preferred stock?
3) Star Boutique has 5 million common shares outstanding and 1 million preferred shares outstanding, and its equity has a total book value of $50 million. Its liabilities have a market value of $20 million. If the Company's common and preferred shares are priced as in question 1 and 2, what is the market value of their total assets? What are the weights of common stock, preferred stock and debt respectively?
4) Star Boutique faces a 40% tax rate and 6% pretax cost of debt. Given the information in questions 1 to 3 and your answers to those problems, what is the Company's WACC?
The company's cost of capital, also known as the required rate of return, can be calculated using the dividend growth model.
The cost of capital is the discount rate that equates the present value of expected future dividends to the current share price. In this case, the cost of capital can be calculated as follows: Cost of Capital = (Dividend per Share / Share Price) + Dividend Growth Rate = ($1 / $20) + 4% The preferred stock's yield or cost can be calculated by dividing the fixed dividend by the market price of the preferred stock. In this case, the cost of preferred stock is: Preferred Stock Yield = Dividend per Share / Market Price = $2 / $28 The market value of total assets can be calculated by adding the market value of equity (common stock and preferred stock) to the market value of debt. The weights of common stock, preferred stock, and debt can be calculated by dividing their respective market values by the total market value of assets.
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You are lockang at buying a home with an asking price of $975,000. Since fhe market is hot, you plan to put in an offer for the fial asking price. You atiso blae to put 5195.000 down payment and finance the remainder. Your bank offers you a 30−year loan at 4.5% APR (compounded monthey). Suppose you pay the bank 54,500 each month rather than making the required payment, calculate the nimber of months t will take fo piy off the loan iRound to the nearest whole number. zeso docinals) QUESTION 12 You have 30 years let until resirement, and you want to retie wath 55,000.000 saved You plan to deposit 1.800 dollara into the account each month beginning one month from foday You currently have S400.000 saved Cafculate the rate of refurn (APR) you need to earn fo reach your retirement goul (Enter percentages as decimais and round to 4 decimals)
The number of months it will take to pay off the loan, considering a monthly payment of $54,500 instead of the required payment is 14 months.
To calculate the number of months it will take to pay off the loan, we need to consider the loan amount, the monthly payment, and the interest rate. The loan amount is the purchase price of the home minus the down payment, which is $780,000 in this case. The monthly payment is $54,500.
Using the formula for the number of periods required to pay off a loan, we can calculate the number of months:
Number of months = Loan amount / Monthly payment
Substituting the values, we get:
Number of months = $780,000 / $54,500
= 14.311
Therefore, the number of months it will take to pay off the loan is 14 months.
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Correct Question
You are looking at buying a home with an asking price of $975,000. Since the market is hot, you plan to put in an offer for the full asking price. You also plan to put $5195.000 down payment and finance the remainder. Your bank offers you a 30−year loan at 4.5% APR (compounded monthly). Suppose you pay the bank $54,500 each month rather than making the required payment, calculate the number of months it will take to pay off the loan. (Round to the nearest whole number,zero decimals)
In order to have an effective code of conduct, an organization should: a. treat the code as a confidential document b. post the code on a company bulletin board and let employees find it for themselves c. assign one person to be responsible for ensuring ethical conduct d. continually reinforce the organization's commitment to ethical behavior from all members of the organization
To have an effective code of conduct, an organization should:
d. Continually reinforce the organization's commitment to ethical behavior from all members of the organization.
An effective code of conduct is not a one-time exercise but an ongoing process. The organization should regularly communicate and reinforce its commitment to ethical behavior throughout the company. This can be achieved through various means such as training programs, meetings, internal communications, and leadership actions. By consistently emphasizing the importance of ethical conduct, the organization creates a culture that encourages and supports ethical behavior among employees. While the other options (a, b, and c) may have some relevance in certain contexts, they alone do not ensure the effectiveness of the code of conduct. Treating the code as a confidential document (a) may limit its reach and understanding among employees. Simply posting the code on a bulletin board (b) without active communication and engagement may result in employees overlooking or not fully understanding the content.
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From the account balances listed below, prepare a schedule of cost of goods manufactured for Cullumber Manufacturing Company for the month ended December 31,2022 . (Assume all raw materials used were direct materials.) CULLUMBER MANUFACTURING COMPANY Cost of Goods Manufactured Schedule Work in process inventory, December 1 $ CULLUMBER MANUFACTURING COMPANY Cost of Goods Manufactured Schedule Factory depreciation expense Work in process inventory, December 31 Raw materials inventory, December 1 Cost of goods manufactured Indirect labor Factory supervisory salaries Factory utilities expense Direct materials used Work in process inventory, December 1 Raw materials purchases Raw materials inventory, December 31 CULLUMBER MANUFACTURING COMPANY Cost of Goods Manufactured Schedule ✓ Total manufacturing overhead Total cost of work in process Direct labor Total manufacturing costs Total raw materials available for use Direct materials Manufacturing overhead
To prepare a schedule of cost of goods manufactured for Cullumber Manufacturing Company, we need additional information and the specific account balances. The provided information is incomplete, and some account balances are missing.
To accurately calculate the cost of goods manufactured, we typically need the following information:
Work in process inventory, December 1: The value of unfinished goods at the beginning of the period.
Factory depreciation expense: The depreciation cost related to the manufacturing facility.
Work in process inventory, December 31: The value of unfinished goods at the end of the period.
Raw materials inventory, December 1: The value of raw materials available at the beginning of the period.
Cost of goods manufactured: The total cost of finished goods produced during the period.
Indirect labor: The labor costs indirectly associated with manufacturing (e.g., supervisors, maintenance staff).
Factory supervisory salaries: The salaries of supervisors overseeing the manufacturing process.
Factory utilities expense: The cost of utilities (e.g., electricity, water) used in the manufacturing facility.
Direct materials used: The cost of raw materials directly used in production.
Raw materials purchases: The value of raw materials purchased during the period.
Raw materials inventory, December 31: The value of raw materials available at the end of the period.
Total manufacturing overhead: The sum of all manufacturing overhead costs (e.g., utilities, indirect labor).
Total cost of work in process: The total cost of unfinished goods.
Direct labor: The labor costs directly involved in the manufacturing process.
Total manufacturing costs: The sum of direct materials, direct labor, and manufacturing overhead.
Total raw materials available for use: The sum of raw materials inventory at the beginning and purchases during the period.
Without the specific account balances, it is not possible to calculate the cost of goods manufactured accurately. Please provide the missing information, and I will be happy to assist you further.
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Corporate governance and corporate social responsibility – differences and similarities between the two mechanisms
The difference between corporate governance and corporate social responsibility (CSR) lies in their primary focus and objectives. Corporate governance centers around maximizing shareholder value and effective management, while CSR emphasizes a company's ethical and responsible behavior towards multiple stakeholders. The similarities are that both mechanisms share the goal of promoting transparency and accountability within corporations.
Difference: Corporate governance primarily centers around maximizing shareholder value and ensuring efficient management practices within a company. The primary goal of corporate governance is to protect and enhance shareholder interests.
In contrast, Corporate Social Responsibility is concerned with a company's broader social, environmental, and ethical responsibilities. The objective of CSR is to contribute to sustainable development and make a positive impact on society and the environment.
Similarity: Despite their differences, corporate governance and CSR share a common focus on promoting transparency and accountability within corporations. It also emphasizes clear lines of responsibility and accountability to ensure that decisions are made in the best interest of shareholders.
Likewise, CSR initiatives emphasize transparency and accountability in addressing social and environmental issues. Companies that adopt CSR practices are expected to be transparent about their impact on society and the environment. They disclose relevant information, report on their social and environmental performance, and take responsibility for their actions.
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In a difficult economic climate, Renault has been able to adapt to changing consumer demands. Its ability to offer more economical product offerings to its European consumer base has helped it maintain its competitiveness while also transforming its organizations. Renault has been able to implement a low-cost strategy by instituting more simple auto designs and focusing on simplicity, ease of manufacturing, and availability. This approach has increased its profitability and market competitiveness. Read the case below and answer the questions that follow. The European economic crisis has changed how Renault, a French carmaker, designs and produces cars for European customers. Historically, European car buyers have been sophisticated, demanding well-designed, feature-laden cars from manufacturers. When the economic crisis hit Europe in 2007, automakers saw a dramatic shift in demand. Overall demand dropped, and the customers who did come in to buy became much more cost conscious. In these difficult conditions, Renault has been able to carve out a profitable market for itself, selling low-cost, no-frills cars. Renault responded to this shift by creating an entry-level car group that was charged with designing and producing cars for these more cost-conscious consumers. For example, it took an ultra-cheap car, the Logan, that was originally aimed at emerging markets, and redesigned it to meet the new needs of the European market. The boxy sedan, which sells for around $10,000, is now one of Renault's best sellers. Its entry-level cars accounted for 30 percent of the cars sold by Renault in 2011 and generated operating profit margins over twice the profit margins of the higher-priced cars Renault sold. What is the recipe for success Renault has found to generate high profits on low-price cars? It uses simple designs that incorporate components from older car designs at Renault and employs a no-discount retail policy. At the center of its design procedure is a "design-to-cost" philosophy. In this process, designers and engineers no longer strive for the cutting edge. Instead, they focus on choosing parts and materials for simplicity, ease of manufacturing, and availability. This often involves using components that were engineered for prior vehicle designs. When needing a new component, Renault begins by assessing how much customers would be willing to pay for certain features, such as air conditioning or power door locks, and then asks suppliers whether they can propose a way to offer this feature at a cost that matches what customers are willing to pay. As it faces imitation of this strategy by Volkswagen and Toyota, Renault is not sitting idle. As Carlos Ghosn, Renault's CEO, stated, "Our low-cost offering isn't low-cost enough. So we're working on a new platform that will be ultra low-cost." Sources: Pearson, D. 2012 Renault takes low-cost lead. wsj.com, April 16: np.; and Ciferri, L. 2013. How Renault's low-cost Dacia has become a "cash cow." Automotive News Europe, January 3: np. How did the economic crisis in Europe impact automakers?
Answer:
The economic crisis in Europe caused a shift in demand, with overall demand dropping and customers becoming much more cost conscious. European car buyers began demanding more low-cost, no-frills cars from manufacturers.
You need to make annual withdrawals of $24,000 at the end of each year for the next 9 years. How much money must you have in the account today? The account pays 2.9% interest. Round to the nearest dollar.
You have a total savings goal of $393,000. If you save $30,000 per year and earn 5.6% on your savings, how long will it take to reach your goal? Answer in years, rounded to one decimal place.
To meet the annual withdrawals of $24,000 for the next 9 years and earn 2.9% interest, you would need approximately $190,470 in the account today.
This question involves calculating the present value of an annuity. The formula to find the present value of an annuity is:
PV = PMT × [(1 - (1 + r)^(-n)) / r]
Where PV is the present value, PMT is the annual withdrawal, r is the interest rate per period, and n is the number of periods.
Plugging in the given values, we have PMT = $24,000, r = 2.9% = 0.029, and n = 9. Solving the equation, we find:
PV = $24,000 × [(1 - (1 + 0.029)^(-9)) / 0.029] ≈ $190,470
Therefore, you would need approximately $190,470 in the account today to meet the annual withdrawals of $24,000 for the next 9 years.
For the second question, to determine how long it will take to reach a savings goal of $393,000 while saving $30,000 per year at an interest rate of 5.6%, we can use the future value of an annuity formula:
FV = PMT × [(1 + r)^n - 1] / r
Where FV is the future value, PMT is the annual savings, r is the interest rate per period, and n is the number of periods.
Plugging in the given values, we have FV = $393,000, PMT = $30,000, and r = 5.6% = 0.056. Solving for n, we find:
$393,000 = $30,000 × [(1 + 0.056)^n - 1] / 0.056
Simplifying and solving the equation, we find that it will take approximately 12.7 years to reach the savings goal of $393,000, rounded to one decimal place.
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Great Outdoze Company manufactures sleeping bags, which sell for $66.10 each. The variable costs of production are as follows: Budgeted fixed overhead in 20×1 was $160,800 and budgeted production was 24,000 sleeping bags. The year's actual production was 24,000 units, of which 20,600 were sold. Variable selling and administrative costs were $1.50 per unit sold; fixed selling and administrative costs were $23,000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Req 1 Req 2 A Req 2 B Req 3 Prepare an operating income statement for the year using absorption costing. (Do not round intermediate calculations.) repare an operating income statement for the year using variable costing. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Reconcile reported operating income under the two methods using the shortcut method. (Round your predetermined fixed overhead rate to 2 decimal places.)
The question asks for the calculation of product cost per sleeping bag under absorption costing and variable costing, preparation of operating income statements using both methods, and reconciliation of reported operating income under the two methods using the shortcut method.
a) Absorption costing includes both variable and fixed manufacturing costs in product cost. To calculate the product cost per sleeping bag, we need to divide the total manufacturing costs by the number of units produced.
Total manufacturing costs = Budgeted fixed overhead + Variable manufacturing costs = $160,800 + (24,000 units × variable cost per unit). Product cost per sleeping bag under absorption costing = Total manufacturing costs / Total units produced. b) Variable costing includes only variable manufacturing costs in product cost. The product cost per sleeping bag under variable costing is equal to the variable manufacturing cost per unit.
2-a) To prepare an operating income statement using absorption costing, we need to consider both fixed and variable costs, including both manufacturing and selling/administrative costs. 2-b) To prepare an operating income statement using variable costing, we consider only the variable costs, including variable manufacturing costs and variable selling/administrative costs.
Reconciliation of reported operating income under the two methods using the shortcut method involves comparing the difference in fixed overhead applied to the units produced and the change in the ending inventory level. The difference between the reported operating income under absorption costing and variable costing is equal to the fixed manufacturing overhead cost deferred in inventory.
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You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60 -month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan? Complete the following analysis. Do not hard code values in your calculations. All answers should be positive.
The monthly payments for the 60-month loan to buy the sports coupe would be approximately $1,530.82, and the effective annual rate on the loan is approximately 6.03%.
The monthly payments for a loan, we can use the formula for a fixed-rate loan payment:
PMT = (P × r × (1 + r)^n) / ((1 + r)^n - 1),
where: PMT is the monthly payment,
P is the principal amount (purchase price of the car),
r is the monthly interest rate (APR divided by 12),
and n is the total number of payments (60 months).
In this case, the principal amount (P) is $79,500, and the monthly interest rate (r) is (5.8% / 100) / 12 = 0.00483. The total number of payments (n) is 60.
Plugging these values into the formula, we get:
PMT = (79,500 × 0.00483 × (1 + 0.00483)^60) / ((1 + 0.00483)^60 - 1)
≈ $1,530.82.
Therefore, the monthly payment for the loan will be approximately $1,530.82.
The effective annual rate (EAR) on this loan, we can use the formula:
EAR = (1 + r/n)^n - 1,
where r is the annual interest rate (5.8% / 100) and n is the number of compounding periods per year (12).
Plugging in the values, we have:
EAR = (1 + (5.8% / 12))^12 - 1
≈ 0.0603 or 6.03%.
Therefore, the effective annual rate on this loan is approximately 6.03%.
In summary, the monthly payments for the 60-month loan to buy the sports coupe would be approximately $1,530.82, and the effective annual rate on the loan is approximately 6.03%.
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: The Nashville Predators have decided to take on a $10 million dollar renovation to their Bridgestone Arena. With the success of the team and the general support from the Nashville fans, the upgrades are expected to improve the financial situation of the team in the long run. That is, the team feels that the arena renovation would ultimately lead to a positive return on their investment. As a financial analyst, you have been asked by the Predators to examine their 2019 numbers and conduct a sensitivity analysis, projecting out from 2020-2029. Once your analysis is complete, the team expects to receive a copy of your calculations, as well as a brief write up summarizing your findings as an excel document. Here is the information you will need for your analysis: 2019 Average attendance: 2019 Average ticket prices: 2019 Average spending per fan per game: Home games per year: 16,500 $62 $27 41 I Optimistic projection: Attendance will be at arena capacity each game (17,113) for the next 10 years. Average ticket prices will increase by 2% each year, and per game average fan spending on concessions, parking, merchandise, media, and other items will increase by 3% each year. On the expense side, per game costs have a 2019 baseline amount of $1,552,500 and will increase by 0.25% each year. For discounting, use a rate of 5.25%. Average projection: Attendance will average of 16,500 each year for the next 10 years, average ticket prices increase at 1% each year for next 10 years, and fan spending on concessions and merchandise will increase by 1.5% each year. The discount during this time period is 6.5%, and per game costs have a 2019 baseline amount of $1,485,000, which will increase by 0.25% each year. Optimistic projection: Attendance will be at arena capacity each game (17,113) for the next 10 years. Average ticket prices will increase by 2% each year, and per game average fan spending on concessions, parking, merchandise, media, and other items will increase by 3% each year. On the expense side, per game costs have a 2019 baseline amount of $1,552,500 and will increase by 0.25% each year. For discounting, use a rate of 5.25%. Average projection: Attendance will average of 16,500 each year for the next 10 years, average ticket prices increase at 1% each year for next 10 years, and fan spending on concessions and merchandise will increase by 1.5% each year. The discount during this time period is 6.5%, and per game costs have a 2019 baseline amount of $1,485,000, which will increase by 0.25% each year. Pessimistic projection: The attendance will decline to an average of 15,000 per year, and ticket prices as well as fan spending are expected to remain the stagnant at the 2019 average. The discount during this time period is 7%. Additionally, per game costs have a 2019 baseline amount of $1,287,000 and will increase by 0.25% each year. Using the above information, (1) calculate the projected total yearly revenues for the team for the next ten years in each scenario. Next, after taking into account the per game expenses, (2) project the expected net cash flows for each scenario (total revenues - total costs). (3) Then, using these projected net cash flows, calculate the following for each of the three scenarios: 1. Non-Adjusted payback period 2. Discounted payback period 3. Net Present value 4. Internal Rate of Return 5. Modified Internal Rate of Return
1) The table below shows the projected total yearly revenues for the Nashville Predators for the next ten years in each scenario. Optimistic projection Average projection Pessimistic projection Attendance 17,113 16,500 15,000 Year 2020 $65,986,961 $62,775,000 $60,750,000 Year 2021 $67,976,191 $63,502,500 $60,750,000 Year 2022 $70,006,715 $64,247,525 $60,750,000 Year 2023 $72,079,607 $64,997,401 $60,750,000 Year 2024 $74,196,082 $65,752,367 $60,750,000 Year 2025 $76,357,483 $66,512,670 $60,750,000 Year 2026 $78,565,284 $67,278,562 $60,750,000 Year 2027 $80,820,059 $68,050,294 $60,750,000 Year 2028 $83,123,496 $68,828,121 $60,750,000 Year 2029 $85,476,405 $69,612,300 $60,750,000
2) The table below shows the projected net cash flows for the Nashville Predators for the next ten years in each scenario. Optimistic projection Average projection Pessimistic projection Attendance 17,113 16,500 15,000 Year 2020 $15,764,961 $12,552,500 $10,527,500 Year 2021 $16,314,622 $12,520,130 $10,527,500 Year 2022 $16,883,768 $12,488,076 $10,527,500 Year 2023 $17,472,225 $12,456,334 $10,527,500 Year 2024 $18,080,828 $12,424,902 $10,527,500 Year 2025 $18,710,427 $12,393,775 $10,527,500 Year 2026 $19,361,892 $12,362,949 $10,527,500 Year 2027 $20,036,110 $12,332,418 $10,527,500 Year 2028 $20,733,983 $12,302,177 $10,527,500 Year 2029 $21,456,431 $12,272,220 $10,527,500
3) The table below shows the non-adjusted payback period, discounted payback period, net present value, internal rate of return, and modified internal rate of return for the Nashville Predators in each scenario. Optimistic projection Average projection Pessimistic projection Non-adjusted payback period 6 years, 7 months, 22 days 6 years, 8 months, 5 days 7 years, 5 months, 9 days Discounted payback period 7 years, 6 months, 22 days 8 years, 1 month, 12 days Not Achievable Net present value $107,320,394 $70,644,067 ($8,843,328)Internal rate of return 21.48% 14.36% Negative value Modified internal rate of return 16.61% 11.10% 4.10%
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Kelly has just started her first full-time job after graduating from college and is thinking about setting up an investment account at her uncle's firm. Her uncle tells her that once she sets up a financial plan for the account, that no matter what happens, the initial plan and associated asset allocations won't need to do be monitored or adjusted for the next 50-yrs.
Is Kelly's uncle's statement true or false?
Kelly's uncle's statement that once she sets up a financial plan for the account, that no matter what happens, the initial plan and associated asset allocations won't need to do be monitored or adjusted for the next 50-yrs is FALSE.
The statement is false because financial markets are always changing and can be unpredictable. The past performance of an asset allocation plan cannot be a guarantee of future performance. Thus, Kelly's investment portfolio will need to be monitored and evaluated regularly to ensure that it remains in line with her financial goals and investment objectives, considering the ever-changing financial landscape.
Therefore, Regular monitoring of the portfolio can help determine when adjustments may be necessary.
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Games Co. has eight employees, each of whom earns $3,500 per month. Income taxes are 20% of gross pay and the company deducts El and CPP. Prepare the March 31, 2015, journal entry to record Games Co.'s salaries expenses for the month.
The journal entry includes debiting the salaries expense account for the total salaries expense of $22,400 ($28,000 - $448 - $448 - $5,600).
to record games co.'s salaries expenses for the month of march 2015, the journal entry would be as follows:
date: march 31, 2015
salaries expense $22,400 cpp payable $560
ei payable $560 income tax payable $4,480
cash $16,800
the total salaries expense for the month is calculated as follows: 8 employees * $3,500 per month = $28,000.
however, we need to account for the deductions of employment insurance (ei) and canada pension plan (cpp), as well as income taxes.
the cpp and ei amounts are each calculated at a rate of 1.6% of gross pay:
$28,000 * 0.016 = $448.
income taxes are calculated at a rate of 20% of gross pay: $28,000 * 0.20 = $5,600. the corresponding credits are made to the cpp payable and ei payable accounts for the respective amounts of $560 each. the income tax payable account is credited for $4,480, and the cash account is credited for the remaining amount of $16,800, representing the net pay (gross pay minus deductions).
this entry records the expense for salaries, as well as the liabilities for cpp, ei, and income taxes, while also reflecting the cash payment made to the employees.
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A clothing company agrees to sweatshop conditions for its products in order to keep costs down for its consumers and profits high for its shareholders. An automotive company switches from a combustion engine vehicle lineup to an electric vehicle lineup.
The clothing company's decision raises ethical concerns by prioritizing cost reduction and shareholder profits. Where as the automotive company reflects a strategic response to environmental concerns.
The clothing company's decision to accept sweatshop conditions raises ethical issues related to labor rights and worker exploitation. By prioritizing cost reduction and maximizing profits for shareholders, the company may be compromising the well-being and dignity of its workers.
Sweatshops often involve substandard working conditions, low wages, long hours, and inadequate worker protections. While this approach may contribute to lower production costs and competitive pricing, it can lead to reputational risks, consumer boycotts, and legal consequences.
Ultimately, prioritizing short-term financial gains at the expense of ethical considerations may have negative consequences for the company's long-term sustainability.
On the other hand, the automotive company's switch from combustion engine vehicles to electric vehicles reflects a strategic response to environmental concerns and evolving market trends. The move aligns with global efforts to reduce greenhouse gas emissions and mitigate climate change.
Electric vehicles are more sustainable, produce fewer emissions, and offer potential long-term cost savings for consumers. By embracing this shift, the automotive company positions itself as a leader in the transition to clean energy and demonstrates a commitment to environmental stewardship.
This decision not only addresses sustainability concerns but also taps into a growing market demand for electric vehicles, potentially boosting the company's competitiveness and profitability in the long run.
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Event settlement components are essential to successfully wrapping up an event. The purpose of settlements is to summarize income from all sources, ensure payment is completed for all expenses, and divide the proceeds appropriately based on contract agreements. Consider the event in your project and the role you played in planning the event. Discuss what event settlement task you might be responsible for completing. Include the type of information provided on the information sheet specific to the event.
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In the event I was involved in planning, the event settlement task I might be responsible for completing is reconciling the income and expenses for the event.
This involves gathering all the financial data, including ticket sales, sponsorship revenue, and any other sources of income, and comparing it with the expenses incurred during the event. I would ensure that all payments for vendors, suppliers, and other expenses are completed, and then calculate the net proceeds of the event. Based on the contract agreements and financial arrangements, I would allocate the proceeds appropriately, ensuring that all parties receive their designated shares. The information sheet specific to the event would include details of income sources, expense categories, payment deadlines, and contractual obligations.
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Overhead Rates Ennis Inc. (EI; www.ennis.com/) is a Texas-based machine-intensive printing company that produces business forms. The resources demanded by a specific job depend on the type and amount of paper used and the composition and the construction of the business form. All jobs are constrained by the time necessary on a press and on a collator capable of producing forms at the required size.
EI uses job costing for pricing and bidding decisions. EI uses a separate factory overhead rate for each machine. Costs of machine operator, support personnel, and supplies are identified directly with presses and collators. Other factory overhead costs-including insurance, supervision, and office salaries-are allocated to machines based on their processing capacity (the cost driver is the number of feet of business forms per minute) weighted by the maximum paper width and complexity (the cost driver is the number of colors and other features) that they are capable of handling.
When El receives a request for a bid on a particular job, the company uses computer software to determine direct materials costs based on the type and quantity of paper. Then, it identifies the least expensive press and collator that are capable of handling the specifications for the business form ordered. The third step is to estimate the total press and collator processing costs by using specific cost-driver rates per machine time multiplied by the estimated processing time. The bid price is calculated by adding a standard markup to the total press, collator, and direct materials costs. A higher markup is used for rush jobs and jobs requiring special features.
Ennis Inc. (EI) is a printing company in Texas that utilizes a job costing system to determine pricing and bidding decisions.
The resources required by a particular job depend on the paper type, amount, and the composition and design of the business form. All tasks are constrained by the amount of time required on a press and collator that can create forms at the desired size. EI utilizes a separate overhead rate for each machine and computes the cost driver for this rate using the number of feet of business forms per minute.
The maximum paper width and complexity, such as the number of colors and other features that the machine can handle, are also considered in computing the overhead rate. Costs for machine operators, support staff, and supplies are directly related to presses and collators.
Insurance, supervision, and office salaries are some of the other factory overhead costs that are allocated to machines based on their processing capacity.
When EI receives a request for a bid on a particular job, the company first computes direct material costs using computer software based on the type and quantity of paper.
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What is the overall efficiency of delivering electricity from a natural gas power plant to charge an electric vehicle and drive that vehicle? Assume that the natural gas to EV system, the power plant efficiency μ=0.55, the transmission and distribution lines μ=0.95, the efficiency of delivering electricity to battery is μ=0.92, and the energy efficnecy of delivering power to the wheel from the battery is μ=0.90.
The overall efficiency of delivering electricity from a natural gas power plant to charge an electric vehicle and drive that vehicle is 23.1%.
In order to calculate the overall efficiency of delivering electricity from a natural gas power plant to charge an electric vehicle and drive that vehicle, the following factors are considered: natural gas to EV system, power plant efficiency, transmission, and distribution lines efficiency, the efficiency of delivering electricity to the battery, and energy efficiency of delivering power to the wheel from the battery.
The given efficiencies in the question have to be multiplied to determine the overall efficiency as shown below:Overall efficiency = μ × μ × μ × μ × μ= 0.55 × 0.95 × 0.92 × 0.90 × 0.90 = 0.231 or 23.1%.
Thus, the overall efficiency of delivering electricity from a natural gas power plant to charge an electric vehicle and drive that vehicle is 23.1%.
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Current Attempt in Progress Marin Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requeteit constriction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request. Hie board d directors has decided to raise funds for the new plant by issuing $3,454,800 of 11% term corporate bonds on March 1.2020, due on March 1.2035. with interest payable each March 1 and September 1. with the firstinterest payment on September fst. 2020. At the titre of iamance. the market interest rate for similar financial instruments is 10%. Click here to view factor tables As the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal piaces, e. 1.25124) and final answer to O decimal places, e.g, 458,581 .) Selling price of the bonds
The selling price of the bonds is $3,735,234.63. This is calculated by finding the present value of the future cash flows associated with the bond, considering the semi-annual interest payments and the market interest rate of 10%.
To determine the selling price of the bonds, we need to calculate the present value of the future cash flows associated with the bond.
The bond pays semi-annual interest, so there will be 30 interest payments over the life of the bond (15 years * 2). The interest payment is $3,454,800 * 11% / 2 = $189,513.
Using the market interest rate of 10%, we can refer to the present value of an ordinary annuity table to find the present value factor for 30 periods at a rate of 5% (10% / 2). The present value factor is 16.35218.
Calculating the present value of the interest payments:
Present Value = Interest Payment * Present Value Factor
Present Value = $189,513 * 16.35218 = $3,099,778.66
To calculate the present value of the principal payment, we use the present value of a single sum formula:
Present Value = Principal Payment / (1 + Market Interest Rate / 2) ^ Number of Periods
Present Value = $3,454,800 / (1 + 10% / 2) ^ 30 = $635,455.97
Finally, we sum the present values of the interest and principal payments to get the selling price of the bonds:
Selling Price = Present Value of Interest Payments + Present Value of Principal Payment
Selling Price = $3,099,778.66 + $635,455.97 = $3,735,234.63
Therefore, the selling price of the bonds is $3,735,234.63.
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Choose a contemporary leadership theory that resonates with you from the theories you read about this week. Develop a 500- to 750-word discussion of how applying the selected leadership theory might mitigate the organizational issue. How will you organize your discussion? What specific topics might be appropriate? Use the Student Example Paper and appropriate level-headings (subheadings) to help organize the discussion based on the specific topics.
One contemporary leadership theory is transformational leadership. This theory can help mitigate organizational issues by fostering a positive organizational culture, inspiring and motivating employees, and driving innovation and change.
Overview of Transformational Leadership: This section will provide a brief introduction to transformational leadership, its main components, and the underlying principles. It will discuss how transformational leaders inspire and motivate their followers, promote a shared vision, and engage in individualized consideration.
Mitigating Organizational Issues through Transformational Leadership: This section will explore how transformational leadership can address various organizational issues. Topics to consider may include:
Building a positive organizational culture: Transformational leaders can shape a culture of trust, collaboration, and innovation, which enhances employee satisfaction and productivity.
Inspiring and motivating employees: Transformational leaders use charisma and vision to inspire and motivate employees to go beyond their self-interests and pursue organizational goals.
Driving innovation and change: Transformational leaders encourage creativity, challenge the status quo, and support experimentation, leading to increased adaptability and organizational growth.
Practical Application of Transformational Leadership: This section will focus on practical strategies for applying transformational leadership in the workplace. It can cover topics such as:
Developing leadership skills: Individuals can cultivate transformational leadership traits and behaviors through self-awareness, continuous learning, and seeking feedback.
Creating a leadership development program: Organizations can establish programs to identify, nurture, and develop transformational leaders at all levels, ensuring a pipeline of effective leaders.
Aligning leadership practices with organizational goals: Leaders need to align their behaviors, decision-making processes, and communication strategies with the organization's mission, vision, and values.
By organizing the discussion in this manner, the reader can gain a comprehensive understanding of transformational leadership, its relevance in mitigating organizational issues, and practical steps for implementing this leadership approach effectively.
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You have \( \$ 27,000 \) to invest. You want to purchase shares of Alaska Air at \( \$ 44.26 \), Best Buy at \( \$ 53.12 \), and Ford Motor at \( \$ 9.41 \). How many shares of each company should you
With $27,000 to invest, you should purchase approximately 610 shares of Alaska Air, 509 shares of Best Buy, and 2,871 shares of Ford Motor.
To determine the number of shares you should purchase for each company, divide the amount available for investment by the price per share for each company.
For Alaska Air:
Number of shares = $27,000 / $44.26 ≈ 610 shares
For Best Buy:
Number of shares = $27,000 / $53.12 ≈ 509 shares
For Ford Motor:
Number of shares = $27,000 / $9.41 ≈ 2,871 shares
By dividing the total available investment by the price per share for each company, you can calculate the approximate number of shares you can purchase for each company. In this case, you should buy approximately 610 shares of Alaska Air, 509 shares of Best Buy, and 2,871 shares of Ford Motor.
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Consider again Amy from the last question: Amy is an art student who's considering taking a sculpture course this summer. Last year, she took a course for $400, and this year it will cost $600. Amy will take the course as long as its marginal benefit is $. or higher.
Amy will take the sculpture course this summer only if its marginal benefit is $600 or higher.
The marginal benefit (MB) is the additional benefit derived from the consumption of an extra unit of a product or service. When the marginal benefit is equal to the cost of an extra unit of a good or service, an economic decision is said to be efficient.
In this case, Amy will consider taking the sculpture course only if its marginal benefit is equal to or greater than $600. Amy will take the course if she believes that the benefit of the sculpture course is worth the $600 cost.
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1-17 (b) = Total Cost (TC) =$100+$50x TC=$1000000+$100x TC=$1000+1000x TC=$10000+$1500x TC=$15000+$1500x Question 3 1-17 (c) 1500 units/yr 1570 units/month 1000units/yr 2000 units/year
To calculate the Total Cost (TC) for different amounts of units produced based on the given equations.
Total Cost (TC) is calculated using the given equations below:
a) TC = $100 + $50x
b) TC = $1,000,000 + $100x
c) TC = $1,000 + $1000x
d) TC = $10,000 + $1,500x
e) TC = $15,000 + $1,500x
The given units are: 1500 units/yr 1570 units/month 1000units/yr 2000 units/year
Now, we have to calculate the total cost (TC) for each of the given units:
a) For 1500 units/year:
TC = $100 + $50x
TC = $100 + $50(1500)
TC = $75,100
Therefore, the total cost for 1500 units/year is $75,100.
b) For 1570 units/month:
TC = $100 + $50x
First, we have to convert the given units into yearly units.1
570 units/month = 12 × 1570 = 18,840 units/year
TC = $100 + $50x
TC = $100 + $50(18,840)
TC = $946,900
Therefore, the total cost for 1570 units/month is $946,900.
c) For 1000 units/yr:
TC = $1,000,000 + $100x
TC = $1,000,000 + $100(1000)
TC = $1,100,000
Therefore, the total cost for 1000 units/yr is $1,100,000.
d) For 2000 units/year:
TC = $10,000 + $1,500x
TC = $10,000 + $1,500(2000)
TC = $13,000,000
Therefore, the total cost for 2000 units/year is $13,000,000.
The Total Cost (TC) for different amounts of units produced is calculated using the given equations.
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If a company has total assets of $1344000, liabilities of $168000, common stock of $756000, and retained earnings of $420000 at December 31,2025 . What are the stockholders' claims on their assets at that date? $1344000 $588000 $1176000 $1512000
The stockholders' claims on their assets at the end of December 31, 2025, can be calculated as follows:
Explanation:Total Stockholder's Equity = Common Stock + Retained Earnings Total Stockholder's Equity = $756,000 + $420,000
Total Stockholder's Equity = $1,176,000
The formula for calculating the stockholder's claims on their assets is as follows:
Total Assets - Total Liabilities = Stockholders' Claims on Their Assets
We are given that:Total Assets = $1,344,000
Total Liabilities = $168,000
We can now substitute these values into the formula and find the stockholders' claims on their assets:
Stockholders' Claims on Their Assets = $1,344,000 - $168,000
Stockholders' Claims on Their Assets = $1,176,000
Therefore, the stockholders' claims on their assets at December 31, 2025, is $1,176,000.
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Consider the same market characterized by demand Q=144 ′
−3P, but now there is only one firm supplyin to the entire market. This firm has the same cost function C(q)= 2
3
q 2
+3q+ 2
27
and decides how mucl output to produce. (a) (7 points) What is the equilibrium price and total quantity for the monopoly case? (b) (3 points) What are the monopolist's markups (\% of marginal costs) at the equilibrium? (c) (5 points) What is the consumer surplus associated with the monopoly equilibrium?
The values of all sub-parts have been obtained.
(a). The Equilibrium price is 270/13 dollars.
(b). The monopolist's markup is 17/31.
(c). The Consumer surplus is 1764/169.
(a) Equilibrium price and total quantity:
The demand function for the entire market is
Q = 144 - 3P,
Where Q is the total quantity and P is the equilibrium price.
The cost function for the single firm is
C(q) = (2/3)q² + 3q + (2/27).
The firm chooses the amount to produce.
Setting marginal cost equal to marginal revenue gives us the equilibrium condition:
MR(q) = MC(q)
(144 - 6q) = (4/3)q + 3
Equating this to marginal cost, we get
(4/3)q + 3 = (4/3)q² + 2q + (2/27)
Simplifying this, we get:
q = 54/13 units
P = 144 - 3(54/13)
= 270/13 dollars
(b) The monopolist's markup:
The marginal cost is
MC(q) = (4/3)q + 3, and the monopolist's price is P = 270/13 dollars.
The markup is given by:
(P - MC(q))/MC(q) = [270/13 - (4/3)*(54/13) - 9]/[(4/3)*(54/13) + 9]
= 17/31
(c) Consumer surplus:
The consumer surplus is the area between the demand curve and the price line up to the quantity q. This is given by:
C(q) = ∫[0,q] [144 - 3P(p)]dp
= ∫[0,q] [144 - 3(270/13)]dp
= (54/13)*(144 - 3(270/13))
= 1764/169
Thus, the consumer surplus associated with the monopoly equilibrium is 1764/169.
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