Incumbent Firms Sell Premium-Priced Products: Higher. When incumbent firms sell premium-priced products, it is more likely to indicate higher supplier power on them in the industry.
This is because premium-priced products generally imply that customers are willing to pay a higher price for the unique or differentiated features offered by the incumbent firms.
In such a scenario, the incumbent firms hold a stronger position in the market, allowing them to have greater influence over their suppliers. Suppliers would be more dependent on the incumbent firms for their premium products and would be less likely to exert power or negotiate for better terms.
Incumbent Firms Face High Cost Of Switching Suppliers: Lower
When incumbent firms face a high cost of switching suppliers, it is more likely to indicate lower supplier power on them in the industry. High switching costs make it more difficult and expensive for incumbent firms to change or switch their suppliers. This reduces the flexibility of incumbent firms to seek alternative suppliers and weakens the bargaining power of suppliers. In such a situation, suppliers have less leverage to negotiate better terms or increase their prices, resulting in lower supplier power over the incumbent firms.
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A plastic parts supplier produces two types of plastic parts used for electronics. Type 1 requires 20minutes of labor and 35 minutes of machine time. Type 2 requires 50 minutes of machine-hours and 78 minutes of labor. There are 500 hours available per week of labor and 750 machine hours available. Type 1 has a profit margin of $25 a unit and Type 2 has a profit margin of $45 a unit. The plastic parts supplier must choose the quantity of Type 1 and Type 2 to produce which maximizes profit.
(a) Formulate this as a linear programming problem.
(b) Find the solution that gives the maximum profit using Excel Solver.
Objective function:
Maximize Profit: P = 25x + 45y
(a) Formulating the problem as a linear programming problem:
Let x be the quantity of Type 1 produced, and y be the quantity of Type 2 produced.
Objective function:
Maximize Profit: P = 25x + 45y
Constraints:
Labor constraint: 20x + 78y ≤ 500 (available labor hours)
Machine constraint: 35x + 50y ≤ 750 (available machine hours)
Non-negativity constraint: x ≥ 0, y ≥ 0 (quantities cannot be negative)
(b) Using Excel Solver to find the solution:
To find the solution using Excel Solver, follow these steps:
1. Set up the objective function and constraints in Excel.
2. Open the Solver add-in in Excel (usually found in the Data or Analysis tab).
3. Set the objective function to Maximize and enter the objective cell reference.
4. Add the constraints by selecting the cells representing the constraints and specifying the relationship (≤, =, or ≥) and the constraint cell reference.
5. Set the variable cells (x and y) by selecting the corresponding cells in the "By Changing Variable Cells" field.
6. Run Solver to find the optimal solution that maximizes the profit.
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Question 2 Part A: Question 2 Why do online businesses tend to be Born Global? Edit View Insert Format Tools Table 12pt v Paragraph v BIUA Р T² V 0 words 2 pts
Online businesses tend to be born global for several reasons:
Global Reach: The internet allows online businesses to transcend geographic boundaries and reach customers worldwide. Unlike traditional brick-and-mortar businesses that are limited by their physical location, online businesses can easily establish a global presence from the start.
Lower Entry Barriers: Starting an online business requires relatively low capital investment compared to setting up a physical store or office in multiple locations. Online platforms and tools enable entrepreneurs to quickly launch their businesses, access global markets, and offer products or services to customers across different countries without the need for extensive resources or infrastructure.
E-commerce Infrastructure: The development of secure online payment systems, logistics networks, and digital marketing platforms has facilitated international transactions and made it easier for online businesses to operate on a global scale. These infrastructure advancements have reduced the barriers to cross-border trade and enabled online businesses to seamlessly handle international orders and deliveries.
Access to Global Customer Insights: Online businesses have the advantage of leveraging data analytics and digital marketing tools to gain insights into consumer behavior and preferences on a global scale. Through data analysis and targeted marketing strategies, online businesses can tailor their offerings to specific international markets and effectively engage with customers worldwide.
Scalability and Flexibility: Online businesses have the ability to scale rapidly and adapt to changing market dynamics. With a digital presence, they can easily expand their operations to new markets without significant infrastructure investments. Online platforms also offer flexibility in terms of adjusting product offerings, pricing, and marketing strategies to cater to diverse customer segments across different countries.
Global Competition: The competitive nature of online markets pushes businesses to go global from the start. In order to gain a competitive advantage and capture market share, online businesses often aim to establish their presence in multiple markets simultaneously to preempt potential competitors and capitalize on early-mover advantages.
Overall, the borderless nature of the internet, combined with the accessibility of e-commerce infrastructure and the global reach of digital marketing, makes it increasingly attractive for online businesses to adopt a born global approach. By leveraging these advantages, online businesses can enter global markets more easily and rapidly, tapping into a wider customer base and driving their growth and success.
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In March 2022, core PCE inflation was 5.2% and overall inflation was 6.6%. Given this information, we know that:
Group of answer choices
a)food & energy prices (combined) must be rising more slowly than the average price of other items
b)inflation is likely to rise in the coming months
c)food & energy prices (combined) must be rising more quickly than the average price of other items
d)inflation is likely to fall in the coming months
(option C) Food & energy prices (combined) must be rising more quickly than the average price of other items.
To determine the answer, we compare the core Personal Consumption Expenditures (PCE) inflation rate and the overall inflation rate.
Core PCE inflation excludes volatile food and energy prices, providing a measure of inflation that focuses on the price changes of other goods and services. In March 2022, the core PCE inflation rate was 5.2%.
This means that the average price of goods and services, excluding food and energy, increased by 5.2% compared to the previous year.
On the other hand, overall inflation includes all price changes, including food and energy prices. In March 2022, the overall inflation rate was 6.6%, higher than the core PCE inflation rate.
Since overall inflation is higher than core PCE inflation, it implies that the prices of food and energy (when combined) must be rising more quickly than the average price of other items.
This is because the inclusion of food and energy prices in the overall inflation rate contributed to the higher overall inflation figure.
Based on the given information, we can conclude that food and energy prices (combined) are rising more quickly than the average price of other items.
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What individuals would you have involved in the creation of the WBS, and why?
Could having more diverse group of individuals involved help with scope management? Explain how. (Remember, diversity isn't just about race and culture. It is a broad concept.)
In the creation of WBS, the individuals that should be involved are from the top management. These individuals include the project manager, project stakeholders, clients, and key team leaders.
This is because these individuals have the expertise and knowledge required to break the project into more specific tasks and help in the effective execution of the project. The project manager is responsible for ensuring the project is delivered within the set timeline, budget, and quality standards. They provide the leadership needed for successful project management.
Stakeholders are individuals or groups that have an interest in the project. They are important as they provide feedback on the progress of the project and may contribute useful insights. Clients are involved in the project to ensure that the project is in line with their needs and specifications. Key team leaders are crucial in the creation of WBS as they provide the technical expertise required to execute the project.
With regards to diversity, having a diverse group of individuals involved in the creation of WBS can help with scope management.
Diversity can be defined in various ways, such as diversity in gender, ethnicity, age, skills, and experience. A diverse group can bring different perspectives, which can lead to better problem-solving and creativity. When creating WBS, it is important to have a group that can work together effectively, with each member having different skills and expertise. This can help to ensure that the project is well executed and scope management is handled effectively.
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Investment and depreciation Referring to the system of equations describing the Solow model, show how net investment is determined in the Solow model, and how it is linked to growth (during the transition dynamics phase)? (5) 4.1 4.2 Using the given Solow diagram as a starting point, show how a drop in the savings rate would impact on the long-run steady-state position of the economy
Net investment in the Solow model is determined by the difference between savings and depreciation. During the transition dynamics phase, net investment affects the rate of capital accumulation, which, in turn, influences economic growth.
A drop in the savings rate would impact the long-run steady-state position of the economy by reducing the level of capital per worker in the steady state. With lower savings, there would be less investment in new capital, leading to a lower level of capital accumulation. As a result, the economy would reach a new steady state with a lower level of output and income per worker. In the Solow model, net investment is determined by the difference between savings and depreciation. The equation for net investment is given by: Net Investment = Savings - Depreciation. Savings represent the portion of income that is saved and invested, while depreciation represents the wear and tear or obsolescence of existing capital. Net investment, therefore, represents the additional capital being added to the economy's stock of capital. During the transition dynamics phase of the Solow model, net investment plays a crucial role in determining the rate of capital accumulation and, consequently, economic growth. When net investment is positive, the economy is investing more than it is losing to depreciation, leading to an increase in the stock of capital. This increase in capital results in higher levels of output and income, contributing to economic growth. On the other hand, if net investment is negative, it means that the economy is investing less than the amount lost to depreciation. This leads to a decrease in the stock of capital, which in turn hampers economic growth. The economy will experience a decline in output and income until the rate of net investment becomes positive again.
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To improve the energy efficiency of a house double lay ceiling insulation is to be installed. The total cost for installing the double lay insulatia is the sum of the material costs per unit ($19.59) and the professional installation fee per unit ($8). In addition, a $40 travel fee is charged by the company. (i) Complete the equation below to show how to calculate the total cost of mobile usage for the year. Clearly define the variable that you use. Variable, x= Cost ($) (ii) Use your equation to find out how many units of double lay insulation are needed to fill a roof cavity if the total cost of installation is $4730.30. b) Natalia Romanova is a Marvel Comic book collector who needs to raise funds to buy some rare editions of The Avengers comics. Natalia sells one fifth of her current collection to fund the purchase of 12 rare The Avengers comics. After the transaction Natalia has 88 comics in total. How many comics were in Natalia's original collection? Use algebraic techniques to support your answer and clearly define any variables that you use.
Approximately 170 units of double-layer insulation are needed to fill the roof cavity.
(i) the equation to calculate the total cost of lling double-layer ceiling insulation is:
total cost = (material cost per unit + professional installation fee per unit) * number of units + travel fee
variable used:x = total cost ($)
(ii) using the equation, we can find the number of units of double-layer insulation needed to fill a roof cavity if the total cost of llation is $4730.30. let's solve the equation:
$4730.30 = ($19.59 + $8) * number of units + $40
$4730.30 = $27.59 * number of units + $40
$4690.30 = $27.59 * number of units
number of units = $4690.30 / $27.59
number of units ≈ 169.82 b) let's use algebraic techniques to determine the number of comics in natalia's original collection.
let's assume the original number of comics in natalia's collection is represented by the variable "x."
natalia sells one fifth of her current collection, which is (1/5) * x.
after the transaction, natalia has 88 comics in total, so the equation becomes:
x - (1/5) * x = 88
multiplying both sides by 5 to eliminate the fraction:
5x - x = 440
4x = 440
dividing both sides by 4:
x = 110
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Japan experienced GDP deflator reductions in the late 1990s. Given this information, we can confidently state: During these periods, the overall price level in Japan increased. During these periods, both real GDP and the overall price level fell. During these periods, real GDP did not change. During these periods, real GDP fell. During these periods, the overall price level in Japan fell.
Based on the information that Japan experienced GDP deflator reductions in the late 1990s, we can confidently state that: During these periods, the overall price level in Japan fell.
The GDP deflator is a measure of the overall price level in an economy. When the GDP deflator decreases, it indicates a decline in the average prices of goods and services produced in an economy. Therefore, based on the information provided, we can conclude that during the late 1990s in Japan, the overall price level fell.
The correct answer is: During these periods, the overall price level in Japan fell.
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A price-taking firm . Select one: O a. Talks to rival firms to determine the best price for all of them to charge b. Asks the government to set the price of its product. Sets the product's price to whatever level the owner decides upon O d. Cannot influence the price of the product it sells Price, MR, AR, Costs in Dollars $7.00 $6.00 400 In this figure, this firm is making: Select one: a. Normal profit O b. Economic loss O c. Positive economic profit O d. We can not tell from the figure. Question 7 MC ATC AVC D (AR) MR Quantity Produced
Option D. A price-taking firm Cannot influence the price of the product it sells Price
What is a price-taking firmA price-taking firm is a firm operating in a perfectly competitive market where the firm has no market power and must accept the prevailing market price.
The correct answer is d. Cannot influence the price of the product it sells. A price-taking firm has no control over the price of its product. It simply takes the market price as given and adjusts its quantity supplied accordingly. The firm is a price taker, meaning it has no ability to set or influence the price.
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A price-taking firm cannot influence the price of the product it sells. The Option D.
How does a price-taking firm determine the price of its product?In a price-taking firm, the firm does not have the ability to influence the price of the product it sells. This means that the price is determined by market forces of supply and demand.
The firm takes the prevailing market price as given and adjusts its quantity of production accordingly. The firm is considered a price taker because it has no market power to set prices and must accept the prevailing price in the market. Therefore, the owner of a price-taking firm cannot unilaterally decide upon the price of the product.
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How is the war between Ukraine and Russia affecting the environment, migration, population, economics, and/or politics of Russia and other countries? How does this compare to the Soviet Union, when Lenin and Stalin were in control? Please type out answer and cite your sources.
The war between Ukraine and Russia is affecting the environment, migration, population, economics, and/or politics of Russia and other countries. The situation is comparable to the Soviet Union in terms of environmental and population displacement.
The conflict in Ukraine, which began in 2014 when Russia annexed Crimea, has resulted in various economic and environmental impacts. This war has a significant impact on both countries, with Russia being directly involved. It has led to environmental damage and has forced people to migrate. The war has negatively impacted the economies of both countries as well as other countries that have a relationship with them.
The economic impacts of the Ukraine-Russia conflict include sanctions imposed on Russia by the United States and the European Union, the drop in the value of the ruble, and a decline in trade with the European Union. The economic fallout from the war has also led to an increase in poverty and food insecurity, with many people in both Russia and Ukraine struggling to make ends meet.
The conflict has also caused significant environmental damage, including contamination of water supplies and destruction of farmland. According to a report by the United Nations Environment Programme (UNEP), the conflict in Ukraine has caused significant environmental damage, including contamination of water supplies, destruction of farmland, and damage to wildlife habitats.
The conflict has also forced millions of people to flee their homes, leading to a migration crisis. The war has displaced approximately 1.4 million people in Ukraine, while thousands of people have fled to neighboring countries such as Poland and Hungary.
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According to the path-goal theory, follower satisfaction is directly related to the degree of participative behaviors manifested by the leader.
the path-goal theory provides a useful framework for understanding how leaders can motivate their followers and increase their satisfaction. By adopting participative leadership behaviors, leaders can help to create a more engaged, committed, and productive workforce.
Path-goal theory is a popular and widely used theory of leadership that is aimed at explaining how leaders can motivate their followers in order to achieve organizational goals. According to this theory, a leader can increase the likelihood of success by identifying and clearing paths to desirable goals and by offering rewards to followers for their achievements.
One of the key assumptions of path-goal theory is that follower satisfaction is directly related to the degree of participative behaviors manifested by the leader. In other words, leaders who involve their followers in decision-making, goal-setting, and problem-solving are more likely to increase their followers' satisfaction and motivation.
There are several reasons why participative leadership behaviors are effective in increasing follower satisfaction. First, participation allows followers to feel more valued and respected by their leader. By involving them in important decisions and tasks, leaders demonstrate that they trust and rely on their followers' abilities.
Second, participation can increase the sense of ownership that followers feel for their work. When followers are given a voice in decision-making, they are more likely to feel invested in the outcomes of those decisions.
Finally, participation can increase followers' sense of competence and mastery. When followers are given the opportunity to contribute their ideas and expertise, they are more likely to feel that their skills and knowledge are valued and useful.
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Patients seeking care at the County General emergency room wait, on average, 5 minutes before seeing the triage nurse who spends, on average, 4 minutes assessing the severity of their problem. The most serious cases are seen first and the less serious often have to wait. On average, the wait time before being taken to the examination room is 29 minutes. In the examination room, a nurse spends about 7 minutes taking vitals and making notes on the patient's condition. The patient then waits for the doctor. This wait averages 29 minutes. Treatment times by the doctor average 21 minutes. Following treatment, patients wait 12 minutes for the nurse to come to discuss the post treatment instructions. It takes about 5 minutes to review with the patient these instructions before they leave. Considering any time spent interacting with a nurse or doctor as value-added time. What is the precent value-added time in a trip to the emergency room? Note: Round your answer as a percentage to 2 decimal places. The percentage of value-added time percent
The percentage of value-added time in a trip to the emergency room is approximately 41.58%.
To calculate the percentage of value-added time in a trip to the emergency room, we need to determine the total time spent in value-added activities and divide it by the total time spent in the entire process.
Total value-added time = time spent with triage nurse + time spent in the examination room + treatment time by the doctor + time spent with the nurse for post-treatment instructions + time spent reviewing instructions with the patient
Total value-added time = 4 minutes + 7 minutes + 21 minutes + 5 minutes + 5 minutes = 42 minutes
Total time for the entire process = time spent waiting to see the triage nurse + time spent waiting in the examination room + time spent waiting for the doctor + treatment time by the doctor + time spent waiting for the nurse for post-treatment instructions + time spent reviewing instructions with the patient
Total time for the entire process = 5 minutes + 29 minutes + 29 minutes + 21 minutes + 12 minutes + 5 minutes = 101 minutes
Percentage of value-added time = (Total value-added time / Total time for the entire process) * 100
Percentage of value-added time = (42 minutes / 101 minutes) * 100 = 41.58%
Therefore, the percentage of value-added time in a trip to the emergency room is approximately 41.58%.
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During the first year of operations, 20,000 units were produced and 18,000 units were sold. Total production costs incurred were $25/ unit produced with variable costs representing 60% of the total production cost incurred. By how much will absorption costing income exceed variable costing income? During the first year of operations, 10,000 units were produced and 9,000 units were sold. If income under absorption costing exceeded income under variable costing by $20,000, what was the total fixed manufacturing cost incurred?
Absorption costing income exceed variable costing income by $20,000 and the total fixed manufacturing cost incurred is $72,000.
total production costs incurred would be:
20,000 × $25 = $500,000
Variable costs represent 60% of the total production cost incurred.
So, Variable cost per unit = 0.60 × $25 = $15.
Total variable cost = $15 × 20,000
= $300,000.
The fixed production cost can be calculated as the difference between the total production cost and total variable cost.
Total fixed cost = Total production cost - Total variable cost
= $500,000 - $300,000
= $200,000
Under variable costing, only variable costs are charged to the cost of goods sold, and fixed production costs are expensed as period costs. So, the unit cost of the product under variable costing would be:
Unit cost under variable costing = Total variable cost ÷ Units produced
= $300,000 ÷ 20,000
= $15 per unit
So, the cost of goods sold would be:
9,000 × $15 = $135,000 Under absorption costing, both variable and fixed production costs are assigned to the cost of goods sold. The unit cost of the product under absorption costing would be:
Unit cost under absorption costing = Total production cost ÷ Units produced
= $500,000 ÷ 20,000
= $25 per unit
So, the cost of goods sold would be: 9,000 × $25 = $225,000
Income under absorption costing is $20,000 greater than under variable costing:
$225,000 - $135,000 = $90,000
The difference between income under absorption costing and variable costing is due to the treatment of fixed production costs. Since income under absorption costing is greater than under variable costing by $20,000,
the total fixed manufacturing cost incurred would be
$72,000:$90,000 ÷ 12,000 = $7.50 per unit.
$7.50 per unit × 9,000 units sold = $67,500.
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4. The account balances appearing on the trial balance (next page) were taken from the general ledger of Giovanni's Copy Shop on September 30, 2021. Additional information for the month of September which has not yet been recorded in the accounts is as follows: (a) A physical count of supplies indicates $400 on hand at September 30. (b) The amount of insurance that expired in the month of September was $200. (c) Amortization on equipment for September was $400. (d) Rent owed on the copy shop for the month of September was $600 but will not be paid until October. (e) Salaries owed for the last week of September were $3500, but won't get paid until the next pay period in October Instructions Using the above information, complete the journal entries for the adjustments on the following page for Giovanni's Copy Shop for the month of September.
The adjustments for Giovanni's Copy Shop for the month of September can be recorded through the following journal entries:
(a) Supplies Adjustment:
Supplies Expense $400
Supplies $400
To record the supplies used during September, based on the physical count.
(b) Insurance Expense:
Insurance Expense $200
Prepaid Insurance $200
To record the expiration of insurance for the month of September.
(c) Depreciation Expense:
Depreciation Expense $400
Accumulated Depreciation - Equipment $400
To record the monthly amortization on equipment.
(d) Rent Payable:
Rent Expense $600
Rent Payable $600
To record the rent owed for September, which will be paid in October.
(e) Salaries Payable:
Salaries Expense $3,500
Salaries Payable $3,500
To record the salaries owed for the last week of September, which will be paid in the next pay period in October.
These journal entries capture the necessary adjustments to reflect the additional information provided for the month of September.
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Schulz GmbH, a German company, set an 18 percent target rate of return for its U.S. division for the year. The U.S. division generated $35,100,000 of annual revenue on average assets of $22,500,000. The division’s variable costs were 45 percent of sales, and fixed costs were $6,750,000. Compute the following items for the U.S. division:
a. ROI
Note: Round percentage to one decimal point (i.e. round 4.555% to 4.6%).
Answer
%
b. Residual income: $Answer
c. Profit margin
Note: Round percentage to one decimal point (i.e. round 4.555% to 4.6%).
Answer
%
d. Asset turnover
Note: Round amount to one decimal point (i.e. round 4.555 to 4.6).
The U.S. division of Schulz GmbH generated $35,100,000 of annual revenue on average assets of $22,500,000. With variable costs at 45% of sales and fixed costs at $6,750,000, the division's ROI is calculated, resulting in a percentage, the residual income is computed in dollars, and the profit margin and asset turnover are determined.
To calculate the ROI (Return on Investment) for the U.S. division, we need to determine the division's net income and average assets. The net income is calculated by subtracting the division's variable and fixed costs from the revenue. The variable costs are 45% of the sales, which is $35,100,000 x 45% = $15,795,000. Subtracting the fixed costs of $6,750,000 gives us a net income of $35,100,000 - $15,795,000 - $6,750,000 = $12,555,000.
Next, we calculate the ROI by dividing the net income by the average assets. The average assets are given as $22,500,000. The ROI is then ($12,555,000 / $22,500,000) x 100 = 55.8%. To compute the residual income, we subtract the target rate of return from the net income. The target rate of return is 18% of the average assets, which is ($22,500,000 x 18%) = $4,050,000. The residual income is $12,555,000 - $4,050,000 = $8,505,000. The profit margin is calculated by dividing the net income by the revenue. The net income is $12,555,000 and the revenue is $35,100,000, so the profit margin is ($12,555,000 / $35,100,000) x 100 = 35.8%. Lastly, the asset turnover is computed by dividing the revenue by the average assets. The revenue is $35,100,000 and the average assets are $22,500,000, resulting in an asset turnover of ($35,100,000 / $22,500,000) = 1.56. Therefore, the U.S. division of Schulz GmbH has an ROI of 55.8%, a residual income of $8,505,000, a profit margin of 35.8%, and an asset turnover of 1.56.
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RC Inc. just issued zero-coupon bonds with a par value of $1000. If the bonds has a maturity of 15 year and yield to maturity 10%, what current price of the bond if it is priced in the conventional manner?
the current price of the bond is $239.32 if it is priced in the conventional manner.
The price of a zero-coupon bond is calculated using the formula: PV = FV / (1 + r) n, where PV is the present value, FV is the future value (or par value), r is the annual interest rate, and n is the number of years until maturity.
Using the formula, we can calculate the price of the bond as follows:
PV = 1000 / (1 + 0.1)15PV
= 1000 / (1.1)15PV
= 1000 / 4.17725PV
= $239.32 (rounded to the nearest cent)
Therefore, the current price of the bond is $239.32 if it is priced in the conventional manner.
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Alfred Wood operates a factory that manufactures bread and cakes. One of the major raw materials used is organic maize, which he buys for $15 per kilogram. The factory operates for 350 days each year. The management is expecting an annual usage of 80,000 kilograms of organic maize. Other costs associated with ordering and maintaining an inventory of organic maize are given below:
• Average time between placing and receiving an order is 4 days.
• Insurance on inventory is 10% of organic maize’s purchase price.
• Damage costs of materials in the warehouse is estimated to average $3.5 per kilogram.
• Other inventory carrying costs is $3 per kilogram.
• Cost of inspecting each order is $20.
• Administration cost related to each order is $10.
Required:
(i) Determine the optimal order quantity for organic maize using the economic order quantity (EOQ) model. Show your calculations. (Round the answer to the nearest whole number) (4 marks) (ii) Compute reorder point and safety stock if demand each day may vary from the average by up to 20%. Show your calculations. (Round the answer to the nearest whole number) (3 marks) (iii) Calculate the total annual inventory cost of organic maize at the economic order quantity. Show the total cost of carrying and ordering separately. Show your calculations. (Round the answer to the nearest whole number)
The total annual inventory cost of organic maize at EOQ is $7,154, where the total carrying cost is $5,811 and the total ordering cost is $1,343.
(i) Calculation of optimal order quantity using EOQ:
We know that EOQ = (2DS / H)^(1/2)
where,D = annual demand = 80,000 kg
S = cost of placing a single order = $20 + $10 = $30
H = annual inventory carrying cost per unit = $3 + 10%($15) + $3.5 = $5.5 per kg
Substitute the values in the formula:
EOQ = (2 x 80,000 x 30 / 5.5)^(1/2)= 2,110.8≈ 2,111
Therefore, the optimal order quantity using the EOQ model is 2,111 kg, rounded to the nearest whole number.
(ii) Calculation of reorder point and safety stock:
Reorder point = dL
where,d = daily demand = 80,000 kg / 350 days ≈ 229 kg
L = lead time = 4 days
Therefore, the reorder point = 229 kg x 4 = 916 kg.
Safety stock = zσ
where,z = z-score for the desired service level = 1.28
σ = standard deviation of lead time demand per day
σ = (20% of 229) / 3.09 = 1.5 kg
Therefore, the safety stock = 1.28 x 1.5 ≈ 2 kg
(iii) Calculation of total annual inventory cost of organic maize at EOQ:
We can use the formula:
Total cost = D/Q * S + Q/2 * H
where,Q = order quantity = 2,111 kg
D = annual demand = 80,000 kg
S = cost of placing a single order = $20 + $10 = $30
H = annual inventory carrying cost per unit = $3 + 10%($15) + $3.5 = $5.5 per kg
Substituting the values,
Total cost = 80,000 / 2,111 x $30 + 2,111 / 2 x $5.5= $1,343 + $5,811= $7,154
Therefore, the total annual inventory cost of organic maize at EOQ is $7,154, where the total carrying cost is $5,811 and the total ordering cost is $1,343.
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Assume John sells milk at AUD2.50 per litre. Also, assume John sells each pizza at AUD 10.00. Calculate John's accounting profit and economic profit for the month of January.
To calculate John's accounting profit and economic profit for the month of January, we need information on his costs and revenues. Without specific information on costs, we can't provide an accurate calculation. However, I can explain the concept of accounting profit and economic profit to help you understand the difference between the two.
Accounting profit is calculated by subtracting explicit costs from total revenue. Explicit costs are the actual out-of-pocket expenses incurred in running a business, such as the cost of milk and pizza ingredients, wages, utilities, rent, etc. Accounting profit only considers the explicit costs and does not account for the opportunity cost of resources.
On the other hand, economic profit takes into account both explicit and implicit costs. Implicit costs refer to the opportunity cost of using resources in a particular business venture. It includes the foregone alternative uses of resources, such as the salary John could have earned if he worked elsewhere. Economic profit deducts both explicit and implicit costs from total revenue.
Without information on John's explicit and implicit costs, we cannot calculate his accounting profit or economic profit accurately. To provide a meaningful calculation, we would need more details on his costs and any other relevant factors impacting his business operations.
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Explain what causes inflation in the US right now. What will be the best way to reduce the inflation rate.
Inflation is the increase in the general level of prices over a period of time. In the United States, inflation is caused by various factors, including the supply and demand of goods and services, as well as external economic factors such as exchange rates and global demand for goods and services.
Recently, inflation in the United States has been primarily caused by an increase in consumer demand for goods and services due to the rebound in economic activity as the country recovers from the pandemic. Additionally, there has been a decrease in supply due to supply chain disruptions and labor shortages, leading to a higher cost of goods and services.
The best way to reduce inflation is to increase the supply of goods and services, which can be achieved by addressing the underlying issues such as supply chain disruptions and labor shortages. Additionally, the Federal Reserve can adjust its monetary policy to help reduce inflation. This can be done by raising interest rates, which would increase the cost of borrowing and reduce consumer demand. However, raising interest rates can also slow down economic growth, so it must be done carefully. Another option is for the government to increase its spending on infrastructure projects and other programs that create jobs and boost economic growth. By increasing the supply of goods and services and addressing underlying issues, the United States can work to reduce inflation and maintain a stable economy.
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Date Units Amount Per Unit January 2" 13 $20.00 January 7th 17 January 12th 22 $18.00 $16.00 1) Assume the company is using the FIFO perpetual method of inventory and we had a sale on January 9th. We sold 15 units at $30 dollars a unit. Please make the journal entry for the sale and how much gross profit did this sale have. 2) Assume the company is using the FIFO periodic method of inventory and on January 15th we had 14 units on hand. Please make the journal entry to record sales and how much gross profit did we have assuming we sold all units at $30. 3) Assume the company is using the LIFO periodic method of inventory and on January 15th we had 14 units on hand. Please make the journal entry to record sales and how much gross profit did we have assuming we sold all units at $30. 4) Assume the company is using the LIFO perpetual method of inventory and we had a sale on January 9th. We sold 15 units at $30 dollars a unit. Please make the journal entry for the sale and how much gross profit did this sale have.
The gross profit, we need to know the cost of goods sold, which is determined by the inventory method (FIFO, LIFO, or average cost) and the cost of the units on hand.
Assuming the company is using the FIFO perpetual method of inventory:
Journal Entry for the Sale:
Date: January 9th
Accounts Receivable $450.00 (15 units * $30/unit)
Sales $450.00 (15 units * $30/unit)
Cost of Goods Sold $300.00 (15 units * $20/unit)
The gross profit for this sale can be calculated as the difference between the sales revenue and the cost of goods sold:
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = $450 - $300
Gross Profit = $150
Therefore, the gross profit for this sale is $150.
Assuming the company is using the FIFO periodic method of inventory:
Journal Entry for the Sale:
Date: January 15th
Accounts Receivable $420.00 (14 units * $30/unit)
Sales $420.00 (14 units * $30/unit)
To calculate the gross profit, we need to know the cost of goods sold, which is determined by the inventory method (FIFO, LIFO, or average cost) and the cost of the units on hand.
Assuming the company is using the LIFO periodic method of inventory:
Journal Entry for the Sale:
Date: January 15th
Accounts Receivable $420.00 (14 units * $30/unit)
Sales $420.00 (14 units * $30/unit)
To calculate the gross profit, we need to know the cost of goods sold, which is determined by the inventory method (FIFO, LIFO, or average cost) and the cost of the units on hand.
Assuming the company is using the LIFO perpetual method of inventory:
Journal Entry for the Sale:
Date: January 9th
Accounts Receivable $450.00 (15 units * $30/unit)
Sales $450.00 (15 units * $30/unit)
Cost of Goods Sold $320.00 (15 units * $16/unit + 0 units * $18/unit)
The gross profit for this sale can be calculated as the difference between the sales revenue and the cost of goods sold:
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = $450 - $320
Gross Profit = $130, Therefore, the gross profit for this sale is $130.
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Explain how an agile supply chain requires an appropriate blend of coordination, communication and speed in procurement, inventory, assembly and delivery of products and services in times of challenges, such as the covid-19 worldwide pandemic. (25) please do not lock copy
An agile supply chain is crucial in times of challenges like the COVID-19 pandemic. It requires an appropriate blend of coordination, communication, and speed in various aspects, including procurement, inventory management, assembly, and product/service delivery. Here's how each of these components contributes to an agile supply chain during such challenging times:
Procurement: Agile procurement involves establishing strong relationships with suppliers, maintaining transparency, and having alternative sourcing strategies. During the pandemic, when supply chains were disrupted, agile procurement allowed organizations to quickly identify alternative suppliers, negotiate flexible contracts, and ensure the availability of critical inputs for production.
Inventory Management: Agile inventory management focuses on optimizing inventory levels and having real-time visibility of inventory across the supply chain. In times of challenges like the pandemic, where demand and supply patterns were uncertain, organizations with agile inventory management systems could quickly adjust their inventory levels, prioritize essential products, and minimize excess stock or shortages.
Assembly: Agile assembly refers to flexible production processes that can quickly adapt to changes in demand, product configurations, or customization requirements. During the pandemic, companies with agile assembly capabilities were able to adjust their production lines to manufacture essential goods like personal protective equipment (PPE) or medical supplies, reconfigure production layouts to ensure social distancing, and implement safety protocols effectively.
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Mmalehlohonolo Company has provided you with the following budgeted sales: April May June July Credit sales R320 000 R300 000 R350 000 R400 000 Cash sales R70 000 R80 000 R90 000 R70 000 Collection of credit sales are as follows: 30% in the month of sale. 60% in the month following the month of sale. The remainder in the second month following the month of sale. There are no debts. The budgeted cash receipts for July would be: Select one: A. R400 000 B. R430 000
The budgeted cash receipts for July would be R410,000. To calculate the budgeted cash receipts for July, we need to determine the cash collections for each month based on the given collection percentages.
For April:
Cash collections = Credit sales for April * Collection percentage in the month of sale
Cash collections = R320,000 * 30% = R96,000
For May:
Cash collections = Credit sales for April * Collection percentage in the month following the month of sale
Cash collections = R320,000 * 60% = R192,000
For June:
Cash collections = Credit sales for April * Remaining collection percentage
Cash collections = R320,000 * (100% - 30% - 60%) = R320,000 * 10% = R32,000
For July:
Cash collections = Credit sales for May * Collection percentage in the month of sale
Cash collections = R300,000 * 30% = R90,000
Total cash collections for July = Cash collections for April + Cash collections for May + Cash collections for June + Cash collections for July
Total cash collections for July = R96,000 + R192,000 + R32,000 + R90,000 = R410,000
Therefore, the budgeted cash receipts for July would be R410,000.
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. minimum creep rate is observed during primary creep secondary creep tertiary creep both primary and secondary creep both secondary and tertiary creep
The correct answer is secondary creep.Explanation:In the creep curve, three stages can be observed; the primary, secondary, and tertiary creep stage. The rate of creep varies in each stage.In the primary stage, the rate of deformation is high but gradually decreases.
The tertiary stage is characterized by a high rate of deformation with time. Finally, in the secondary stage, the rate of deformation is almost constant and is minimum in this stage.Therefore, the minimum creep rate is observed during the secondary creep. This stage is characterized by a steady-state or equilibrium stage and is also known as the time-steady state or tertiary creep.
During this stage, the rate of deformation remains constant, indicating that the strain is almost constant.The primary stage of creep is usually associated with the elastic deformation of the material. In the tertiary stage, the rate of deformation increases at a rapid rate until the point of failure. The correct answer is secondary creep.Explanation:In the creep curve, three stages can be observed; the primary, secondary, and tertiary creep stage. The rate of creep varies in each stage.In the primary stage, the rate of deformation is high but gradually decreases.
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Suppose that there is a stock market crash in
which the market loses 20% of its value in one
week. Why will the crash in the
stock market have an impact on GDP?
Answer text
A stock market crash is an event in which the value of a significant portion of a stock market falls significantly in a short period of time.
In such cases, the stock market typically loses a substantial percentage of its value, as investors quickly sell their shares, causing the overall market to fall. This has a direct impact on GDP, and the reason why the crash in the stock market has an impact on GDP is because the stock market is a critical component of the economy. In most economies, the stock market is a key source of capital for businesses, which rely on investors to purchase shares of stock in order to raise funds for their operations.
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Lila inherited 5,000 shares of stock from her Aunt Marge. Marge's basis in the stock was 11,500 at date of death. The fair market value of the stock at date of death was 10,000. What is Lila's basis of the stock?
Group of answer choices
A) 5,000
B) 10,000
C) 11,500
D) 1,500
**Lila's basis of the stock is 10,000 dollars.** When inheriting stock, the beneficiary's basis is generally the fair market value (FMV) of the stock at the date of death.
In this case, Aunt Marge's basis in the stock was irrelevant since the stock was inherited. Therefore, Lila's basis for the inherited stock is the FMV at the date of Aunt Marge's death, which was 10,000 dollars. Thus, option B) 10,000 is the correct answer.
It's important to note that when determining the basis of inherited property, the FMV at the date of death is typically used to establish the new basis for the beneficiary.
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Using this table as needed, calculate the required information for the mortgage.
Amount Financed Interest Rate Term of Loan (years) Number of $1,000s Financed Table Factor (in %) Monthly Payment (in $) Total Interest (in $)
$79,500 8.00% 30 ___ $ ___
The required information for the mortgage is $130,164
To calculate the required information for the mortgage, we can use an amortization table or mortgage calculator. However, since the table and factor are not provided in the question, I'll provide a step-by-step calculation for the required information based on the given details.
Amount Financed: $79,500
Interest Rate: 8.00% (0.08)
Term of Loan: 30 years
To find the number of $1,000s financed, we divide the amount financed by $1,000:
Number of $1,000s Financed = Amount Financed / $1,000
Number of $1,000s Financed = $79,500 / $1,000
Number of $1,000s Financed = 79.5
Next, we can calculate the monthly interest rate by dividing the annual interest rate by 12:
Monthly Interest Rate = Annual Interest Rate / 12
Monthly Interest Rate = 0.08 / 12
Monthly Interest Rate = 0.00667
To calculate the monthly payment, we can use the formula for the monthly payment on a fixed-rate mortgage:
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Payments))
First, we need to calculate the total number of payments by multiplying the number of years by 12:
Number of Payments = Term of Loan * 12
Number of Payments = 30 * 12
Number of Payments = 360
Now, we can substitute the values into the formula to calculate the monthly payment:
Monthly Payment = ($79,500 * 0.00667) / (1 - (1 + 0.00667)^(-360))
Using a financial calculator or spreadsheet software, the monthly payment is approximately $582.40.
To calculate the total interest paid over the life of the loan, we can multiply the monthly payment by the number of payments and subtract the loan amount:
Total Interest = (Monthly Payment * Number of Payments) - Amount Financed
Total Interest = ($582.40 * 360) - $79,500
Total Interest = $209,664 - $79,500
Total Interest = $130,164
Therefore, the required information for the mortgage is as follows:
Number of $1,000s Financed: 79.5
Monthly Payment: $582.40
Total Interest: $130,164
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What is the numerical range for COD? a. Depends on the slope value b. 1 to 2 c. -1 to 1 d. 0 to 1
The numerical range for COD (Coefficient of Determination) is 0 to 1.
The COD is a statistical measure that represents the proportion of the variance in the dependent variable that can be explained by the independent variable(s). It ranges from 0 to 1, where 0 indicates that the independent variable(s) have no explanatory power, and 1 signifies that the independent variable(s) completely explain the variance in the dependent variable. The value of COD closer to 1 implies a stronger relationship between the variables, while values closer to 0 indicate a weaker or no relationship.
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_ (blank) _ refers to the different backgrounds, interests, and priorities of users and information systems specialists that can lead to divergent organizational loyalties, approaches to problem solving, and vocabularies. Select one: a. change agent b. project management c. risk management d. project scope e. user-designer communications gap
The blank refers to the user-designer communications gap, which represents the different backgrounds, interests, and priorities of users and information systems specialists that can lead to divergent organizational loyalties, approaches to problem solving, and vocabularies.
The user-designer communications gap refers to the challenges that arise due to the differing backgrounds, interests, and priorities of users and information systems specialists involved in the development and implementation of technology solutions within an organization. This gap often leads to miscommunication, misunderstandings, and conflicts, as each group may have different perspectives, expertise, and ways of approaching problem-solving.
Users typically have in-depth knowledge of their operational needs and requirements, while information systems specialists possess technical expertise in designing and implementing technology solutions. Bridging this gap requires effective communication, active collaboration, and a shared understanding of goals and objectives.
Effective user-designer communication is crucial for successful technology implementation, as it ensures that systems are designed and developed to meet user needs, while also leveraging the technical capabilities available. It helps in aligning organizational priorities, overcoming resistance to change, and fostering a collaborative working environment.
Therefore, acknowledging and addressing the user-designer communications gap is essential for successful technology projects. By promoting effective communication and collaboration, organizations can bridge this gap and ensure that technology solutions meet the needs and expectations of users, leading to improved outcomes and user satisfaction.
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Covid-19 has created a volatile operating environment for all
companies and one major concern is the impact on asset values.
Companies will need to carefully consider the impairment of their
assets an
If a hotel's occupancy rates have significantly reduced due to the pandemic, the hotel's asset value may have decreased. Thus, the company should recognize an impairment loss to adjust the asset's carrying value to its recoverable amount.
Asset impairment is the loss in value of a company's assets, which can occur as a result of several factors such as the changing market conditions, economic uncertainty, or any other situation that could negatively impact the asset's ability to generate income. Therefore, companies should recognize impairment losses for any assets that are either no longer useful or are less valuable than their carrying amount due to changes in economic conditions.
The impairment loss is calculated as the difference between the carrying amount of the asset and its fair value. The fair value of an asset is the price that the asset would receive in an open and competitive market. Companies can calculate their asset's fair value by using several valuation methods such as discounted cash flow analysis, market value approach, and income approach.
The Covid-19 pandemic has created a highly uncertain and volatile business environment, resulting in significant changes in the market's economic conditions. Therefore, companies are required to consider the impact of these changes on their asset values and make an impairment adjustment if required. In particular, companies in the travel and hospitality industry, where most of their assets are in the form of property, plant, and equipment, are likely to experience a significant impact due to the pandemic. For instance,
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Answer each of the following questions in brief, complete sentences in proper English. (Word or Excel is fine for this.) a) What are two examples of other comprehensive income transactions? Where are they reported on the balance sheet? b) A company has 1,000,000 shares of $10 par value common stock outstanding and announces a 4- for-1 stock split. The stock is trading for $200 per share on the NASDAQ exchange on the day of the announcement. How many shares will be outstanding after the stock split? What is the expected stock price immediately after the split is effected (issued)? How will the stock split affect earnings per share?
A) They are reported in the stockholder’s equity section of the balance sheet.b) After the stock split, the number of shares outstanding will increase to 4,000,000 shares.The expected stock price immediately after the split is issued is $50 per share ($200/4). The stock split won't affect earnings per share since the number of outstanding shares and total earnings will increase proportionately.
a) Two examples of other comprehensive income transactions are: foreign currency translation adjustments and unrealized gains/losses on available-for-sale securities.
They are reported in the stockholder’s equity section of the balance sheet.
b) After the stock split, the number of shares outstanding will increase to 4,000,000 shares.
The expected stock price immediately after the split is issued is $50 per share ($200/4).
The stock split won't affect earnings per share since the number of outstanding shares and total earnings will increase proportionately.
A stock split is when a corporation issues new shares to current stockholders in proportion to the number of shares they currently own. The primary goal of a stock split is to make the stock more accessible to a wider range of investors and to boost liquidity by increasing the number of shares available for trading.
The earnings per share, however, will be affected as a result of a stock split.
Since the earnings per share are calculated by dividing the total earnings by the total number of shares outstanding, both the earnings and the number of outstanding shares will increase proportionately.
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Current year's profit less dividends paid to stockholders Total contributions from stockholders less dividends paid over the life of the company All net income less all dividends paid over the life of the company Total earnings over the life of the company 15 On January 1, 2021, Fast Corporation issues $200,000 of 9%, 10-year bonds, with interest payable semiannually on June 30 and December each year. The market interest rate is 10%. The issue price of the bonds is $187.538. What will be the carrying value of these bonds at Dess 31, 2030. the maturity date of the bonds? Multiple Choice 020.09 $200,000 $187,934
The carrying value of the bonds at the maturity date is $200,090.
The carrying value of the bonds is the present value of all future cash payments discounted at the market interest rate. To calculate the carrying value of the bonds, we need to find the present value of all future cash payments (principal and interest) at the market interest rate of 10%.First, we need to calculate the semiannual interest payment, which is $200,000 × 9% ÷ 2 = $9,000. Then, we can use the present value of an annuity formula to find the present value of the interest payments:
PV of interest payments = $9,000 × [(1 – (1 + 10%)^-20) ÷ 10%] = $80,155
Next, we need to find the present value of the principal payment, which is the face value of the bond, $200,000:
PV of principal payment = $200,000 ÷ (1 + 10%)^20 = $34,775
Finally, we can find the carrying value of the bonds at the maturity date by adding the present values of the interest and principal payments:
Carrying value of bonds = $80,155 + $34,775 = $114,930
Therefore, the correct option is 020.09, which is not provided in the options.
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