The correct statement is: B.
Variable costs change, in per unit, in proportion to changes in the related level of activity or volume of output produced.
Variable costs are costs that vary in direct proportion to changes in the level of activity or volume of output. As the activity or production volume increases or decreases, variable costs also increase or decrease accordingly. This relationship allows for the calculation of variable costs on a per-unit basis, as they are expected to change in a consistent manner relative to the level of activity.
Statement A is incorrect because product costs are typically treated as assets on the balance sheet until the product is sold, at which point they are recognized as expenses.
Statement C is incorrect because costs can be classified as fixed or variable based on specific activities or time periods, and they are not fixed or variable indefinitely.
Statement D is incorrect because total fixed costs remain constant in total regardless of the level of production. They do not change inversely with production.
To know more about variable cost change please visit:
brainly.com/question/31102479
#SPJ11
Real-word companies often seek to reduce the complexity of their operations in an attempt to increase profits. In 2012, Procter & Gamble believed it could increase the company's profit by eliminating some product-lines. In 2017, P&G announced that it had "divested, discontinued, or consolidated 105 brands." As a result, even though its sales had decreased by 22 percent from 2012 to 2017, its profits as a percentage of sales had increased by 55 percent. Other companies have also tried to improve their financial performance by downsizing. In November 2017, General Electric announced it would begin a downsizing operation that would result in their exiting businesses using over $20B in assets in the next one to two years. In January 2018, Newell Brands, the company whose products include Tupperware, Sharpie pens, Elmer's Glue, and Rawlings sports products, announced it would be reducing its products offerings to the extent that it would close half of its facilities and reduce it revenues by 20 percent.
Required
Identify some cost savings these companies might realize by reducing the number of items they sell or use in production. Be as specific as possible, and use your imagination.
Consider the additional information presented as follows, which is hypothetical. All dollar amounts are in thousands; unit amounts are not. Assume that P&G decides to eliminate one shampoo line, Luster, for one of its segments that currently produces three products. As a result, the following are expected to occur.
(1) The number of units sold for the segment is expected to drop by only 125,000 because of the elimination of Luster, since most customers are expected to purchase an Anagen or Catagen product instead. The shift of sales from Luster to Anagen and Catagen is expected to be evenly split. In other words, the sales of Anagen and Catagen will each increase by 50,000 units.
(2) Rent is paid for the entire production facility, and the space used by Luster cannot be sublet.
(3) Utilities costs are expected to be reduced by $40,000.
(4) All of the supervisors for Luster were terminated. No new supervisors will be hired for Anagen or Catagen.
(5) Half of the equipment being used to produce Luster is also used to produce the other two products and its depreciation cost must be absorbed by them. The remaining equipment has a book-value of $340,000 and can be sold for only $60,000.
(6) Facility-level costs will continue to be allocated between the product lines based on the number of units produced.
Prepare revised product-line earnings statements based on the elimination of Luster. (Hint: It will be necessary to calculate some per-unit data to accomplish this).
The cost savings that companies might realize by reducing the number of items they sell or use in production can come from various sources.
Procter & Gamble (P&G) reduced its product offerings by divesting, discontinuing, or consolidating 105 brands, resulting in a decrease in sales but an increase in profits.
The cost savings were likely due to simplified operations, reduced manufacturing costs, reduced marketing costs, and increased focus on high-profit products. General Electric and Newell Brands also downsized in an attempt to improve their financial performance.
Cost savings from downsizing can come from reduced facility costs, reduced production costs, reduced marketing costs, reduced supervision costs, and increased focus on high-profit products.
To prepare revised product-line earnings statements based on the elimination of Luster, it is necessary to calculate some per-unit data.
The elimination of Luster is expected to result in a drop in the number of units sold for the segment by only 125,000 since most customers are expected to purchase an Anagen or Catagen product instead, with the sales of Anagen and Catagen evenly split.
As utilities costs are expected to be reduced by $40,000, and all of the supervisors for Luster were terminated without new supervisors being hired for Anagen or Catagen, the cost savings for utilities and supervision will be $40,000 and supervisor salaries, respectively.
Half of the equipment being used to produce Luster is also used to produce the other two products and its depreciation cost must be absorbed by them.
The remaining equipment has a book-value of $340,000 and can be sold for only $60,000.
The facility-level costs will continue to be allocated between the product lines based on the number of units produced. Based on these factors, it is possible to calculate the revised product-line earnings statements for P&G, taking into account the elimination of Luster.
Learn more about facility-level costs here.
https://brainly.com/questions/27960580
#SPJ11
Ecker Company reports $1,725,000 of net income for 2017 and declares $241,500 of cash dividends on its preferred stock for 2017. At the end of 2017, the company had 290,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders for 2017? Net income preferred stockholders Net income available to common stockholders 2. What is the company's basic EPS for 2017? Basic Earnings per Share Choose Numerator: Choose Denominator: Basic Earnings per Share = | Basic earnings per share Net income available to common stockholdersWeighted-average outstanding shares
The net income available to common stockholders for 2017 is $1,483,500.
The company's basic EPS for 2017 is $5.12.
To determine the amount of net income available to common stockholders for 2017, we need to subtract the preferred stock dividends from the net income.
Net income available to common stockholders = Net income - Preferred stock dividends
Net income available to common stockholders = $1,725,000 - $241,500
Net income available to common stockholders = $1,483,500
To calculate the company's basic earnings per share (EPS) for 2017, we divide the net income available to common stockholders by the weighted-average outstanding shares of common stock.
Basic Earnings per Share = Net income available to common stockholders / Weighted-average outstanding shares
Basic Earnings per Share = $1,483,500 / 290,000
Basic Earnings per Share = $5.12 (rounded to the nearest cent)
Know more about net income here:
https://brainly.com/question/31816607
#SPJ11
A USA store expects €1,250,000 in repatriated profits from its
German subsidiary six months from today. Currently, the spot rate
is US $1.0550/€, and the six-month forward rate is US $1.0300/€.
The use of the forward rate hedged against exchange rate risk, thus the company is sure of receiving $1,612,500 from the repatriation of profits.
Given the spot rate US $1.0550/€, and the six-month forward rate US $1.0300/€, a USA store expects €1,250,000 in repatriated profits from its German subsidiary six months from today.
The expected value of repatriated profits of €1,250,000 can be converted to USD using the spot exchange rate of US $1.0550/€. Expected amount in USD
= €1,250,000 × $1.0550/€
= $1,318,750.
If the USA store uses the six-month forward rate of US $1.0300/€ to exchange euros into dollars, then the expected amount in USD will be calculated as follows;
Expected amount in USD = €1,250,000 × $1.0300/€
= $1,612,500.
The use of the forward rate hedged against exchange rate risk, thus the company is sure of receiving $1,612,500 from the repatriation of profits.
To know more about exchange rate visit:
https://brainly.com/question/30461560
#SPJ11
An investment of $115 generates after-tax cash flows of $50 in Year 1, $80 in Year 2, and $140 in Year 3. The required rate of return is 20 percent. The net present value is closest to O $67.22. $63.24. O $49.39. O $99.57.
To calculate the net present value (NPV) of the investment, we need to discount the after-tax cash flows to their present value and subtract the initial investment. The formula to calculate the present value of a cash flow is:
[tex]PV = \frac{CF}{(1 + r)^n}[/tex]
Where PV is the present value, CF is the cash flow, r is the required rate of return, and n is the time period.
Let's calculate the present value of each cash flow:
[tex]PV1 = \frac{\$50}{(1 + 0.20)^1} = \$41.67\\\\PV2 = \frac{\$80}{(1 + 0.20)^2} = \$55.56\\\\PV3 = \frac{\$140}{(1 + 0.20)^3} = \$87.72[/tex]
Now, we can calculate the net present value:
NPV = PV1 + PV2 + PV3 - Initial Investment
= $41.67 + $55.56 + $87.72 - $115
= $184.95 - $115
= $69.95
The net present value is closest to $69.95. Therefore, none of the provided options match the calculated value.
To know more about Return visit-
brainly.com/question/32133392
#SPJ11
Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.80%, the company's credit risk premium is 4.40%, the domestic beta is estimated at 1.18, the international beta is estimated at 0.86, and the company's capital structure is now 40% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.30% and the company's effective tax rate is 38%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates.
a. 8.70%
b. 7.80%
c. 5.60%
d. 4.70%
a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 8.70%? % (Round to two decimal places.)
Therefore, if the equity risk premium is 8.70%, Ganado's WACC using the domestic CAPM is approximately 10.50%.
To calculate Ganado's weighted average cost of capital (WACC) using the domestic CAPM and an equity risk premium of 8.70%, we need to consider the cost of equity and the cost of debt.
First, let's calculate the cost of equity using the CAPM formula:
Cost of Equity = Risk-Free Rate + Beta * Equity Risk Premium
Risk-Free Rate = 3.80%
Beta = 1.18
Equity Risk Premium = 8.70%
Cost of Equity = 3.80% + 1.18 * 8.70% = 3.80% + 10.266% = 14.066%
Next, let's calculate the cost of debt:
Before-Tax Cost of Debt = 8.30%
Tax Rate = 38%
After-Tax Cost of Debt = Before-Tax Cost of Debt * (1 - Tax Rate)
After-Tax Cost of Debt = 8.30% * (1 - 0.38) = 8.30% * 0.62 = 5.146%
Now, we can calculate the weights of equity and debt:
Equity Weight = 1 - Debt Weight
Debt Weight = 40%
Equity Weight = 1 - 40% = 60%
Debt Weight = 40%
Finally, we can calculate the WACC using the weights and the costs of equity and debt:
WACC = (Equity Weight * Cost of Equity) + (Debt Weight * After-Tax Cost of Debt)
WACC = (60% * 14.066%) + (40% * 5.146%)
WACC = 8.4396% + 2.0584%
WACC = 10.498%
learn more about equity here
https://brainly.com/question/31458166
#SPJ11
Suppose that Fortune 8 Casino is one of ten casinos in the town of Luckyville, and every casino is earning substantial economic profits. What is likely to happen in the long run?
a) Some casinos will take their profits and exit the market
. b) Some casinos will downsize because their profits are not high enough.
c) New casinos will enter the market and continue to earn economic profits.
d) New casinos will enter the market but economics profits will be eliminated. Submit
In the long run, some casinos are likely to take their profits and exit the market. In a competitive market, the entry of new firms is encouraged when existing firms are earning substantial economic profits.
As a result, in the given scenario where all ten casinos are earning economic profits, it is likely that new casinos will enter the market. However, in the long run, this entry of new casinos will lead to increased competition and adjustments in the industry. As more casinos enter the market, the supply of casino services will increase, leading to a decrease in prices and potential economic profits. Existing casinos may face intensified competition and a decline in their profit margins. Some casinos, particularly those unable to compete effectively or whose profits are not high enough, may decide to downsize their operations or exit the market altogether.
Therefore, in the long run, it is expected that some casinos will take their profits and exit the market, balancing the supply and demand dynamics and eliminating the economic profits in the casino industry of Luckyville.
Learn more about profits here: https://brainly.com/question/30091032
#SPJ11
Suppose that in 2011 the country of Sanaton's nominal GDP was $35000 and the money supply was equal to $1000. Calculate the velocity of money in Sanaton:
To calculate the velocity of money in Sanaton, we can use the equation of quantity theory of money:
MV = PY
Where:
M = Money supply
V = Velocity of money
P = Price level
Y = Real GDP
In this case, we are given the money supply (M) as $1000 and the nominal GDP (PY) in 2011 as $35000.
We need to rearrange the equation to solve for V:
V = PY / M
Given that PY = $35000 and M = $1000, we can substitute the values into the equation:
V = $35000 / $1000
V = 35
Therefore, the velocity of money in Sanaton in 2011 is 35.
Learn more about quantity theory here:
https://brainly.com/question/30765798
#SPJ11
MC Qu. 20-98 (Algo) Assume the demand for automobile... Assume the demand for automobile tires is unitary elastic and that the supply is unitary elastic. The burden of a $2 excise tax on each tire will be Multiple Choice borne by resource suppliers that provide the inputs for manufacturing tires bome primarily by sellers of tires a shared about equally by buyers and sellers of tires. bome primarily by buyers of tires
If the demand for automobile tires is highly inelastic and that the supply is highly elastic, then the burden of a $2 excise tax on each tire will be :c) borne primarily by buyers of tires.
What is the reason?The demand for automobile tires is unitary elastic and so is the supply. An excise tax of $2 on each tire will increase the price of each tire by $2 (assume all other factors to be constant).Since the demand is unitary elastic, the percentage change in the quantity demanded is equal to the percentage change in the price. So, the amount of the increase in price will be shared equally between the buyers and sellers. Now, since the supply is unitary elastic, the percentage change in the quantity supplied is equal to the percentage change in the price. This means that the sellers will be able to pass on the entire tax amount of $2 to the buyers as an increase in the price of the tires.Thus, it can be concluded that the burden of a $2 excise tax on each tire will be borne primarily by buyers of tires.Hence, option c. is correct.
To know more on elasticity visit:
https://brainly.com/question/30999432
#SPJ11
In 2018, Philip Morris reported inventory of $8.804 billion and annual sales of $29.625 billion Assume 365 days per year and round your answer to one decimal place What were the days of supply for Phillip Morris? days 47
The days of supply for Philip Morris in 2018 was approximately 108.4 days.
To calculate the days of supply for Philip Morris, we need to determine how many days the inventory would last based on the average daily sales.
First, we calculate the average daily sales:
Average Daily Sales = Annual Sales / Number of Days in a Year
Average Daily Sales = $29.625 billion / 365
Average Daily Sales ≈ $81.16 million
Next, we divide the inventory by the average daily sales to get the days of supply:
Days of Supply = Inventory / Average Daily Sales
Days of Supply = $8.804 billion / $81.16 million
Days of Supply ≈ 108.38
Rounding the answer to one decimal place, we find that the days of supply for Philip Morris in 2018 was approximately 108.4 days.
This means that, based on the average daily sales, Philip Morris had enough inventory to sustain its operations for around 108.4 days. This metric provides an indication of how long the company's inventory could cover its sales if no new inventory was acquired. It is important for companies to manage their inventory levels effectively to ensure they have sufficient stock to meet customer demand without excessive carrying costs or risk of obsolescence.
To know more about Philip Morris, please click on:
https://brainly.com/question/32092426
#SPJ11
Select two Tourism/Hospitality companies (you need 2 actual companies) and search for samples of recent advertising in English. It could be traditional media like TV or magazines or digital media, social media. You need 3 examples for each company (for a total of 6 examples) and include the images of the ads found in your search. If you do not use Tourism/Hospitality companies mark for the assignment will be "0". (6 Marks-2 marks each)
Identify and describe the strategies used in the ads to overcome the problem of intangibility.
Which company in your view does a better job of overcoming the intangibility of its services an explain why?
How does each company deal with the question of the service quality offered and the risk for the consumer in possibly making a wrong decision in selecting this company?
Hilton and Airbnb employ strategies such as highlighting experiences, personalization, and leveraging testimonials to overcome the intangibility of their services.
Company 1: Hilton Hotels & Resorts
Strategy 1: Emphasizing Experience: Hilton's ads showcase luxurious hotel amenities, exquisite dining experiences, and breathtaking views to create a sensory experience for potential customers. They highlight the unique features and ambiance of their properties, making the intangible aspects of a hotel stay more tangible and appealing.
Strategy 2: Testimonials and Reviews: Hilton incorporates customer testimonials and positive reviews in their ads to build trust and credibility. By showcasing real guest experiences, they address the intangible nature of their service and provide social proof of their quality.
Company 2: Airbnb
Strategy 1: Personalization: Airbnb's ads focus on the idea of "belonging anywhere" and highlight unique accommodations that cater to individual preferences and interests. By showcasing a diverse range of properties, they address the intangibility of traditional hotels and offer a personalized and authentic experience.
Strategy 2: Local Experiences: Airbnb promotes the idea of immersing oneself in local culture and encourages travelers to explore unique experiences in their destination. By emphasizing the connection with local communities, Airbnb overcomes the intangibility by offering a more immersive and authentic travel experience.
In terms of which company does a better job of overcoming intangibility, it depends on individual preferences and needs. Hilton Hotels & Resorts may appeal more to customers seeking luxurious and consistent hotel experiences, while Airbnb may resonate with travelers seeking unique and personalized accommodations.
Both companies address the issue of service quality by leveraging positive reviews, testimonials, and emphasizing the uniqueness of their offerings. They mitigate the risk for consumers by providing detailed property descriptions, photos, and guest reviews, enabling customers to make informed decisions.
For more such question on strategies. visit :
https://brainly.com/question/28561700
#SPJ8
what key factor made borrowing money very easy in the 1920s?
During the 1920s, the key factor that made borrowing money very easy was the availability of credit.
In the 1920s, the availability of credit allowed people to borrow money with ease. The concept of credit meant that people could purchase items and pay for them in installments. Credit was made available to people through a variety of means such as banks, retailers, and manufacturers.
People were encouraged to spend money, and banks made it easy for them to borrow money. Furthermore, the Federal Reserve maintained low interest rates to stimulate economic growth. The availability of credit played a significant role in the economic boom of the 1920s as it allowed for a rapid expansion of consumer goods, which in turn drove up economic growth.
Learn more about borrowing money here: https://brainly.com/question/31546701
#SPJ11
claiming publicly that a particular restaurant is a poorly run business solely because you didn't enjoy your meal is a clear example of ______ of business.
Claiming publicly that a particular restaurant is a poorly run business solely because you didn't enjoy your meal is a clear example of defamation of business.What is defamation of business?Defamation of business is a term used to describe the act of deliberately spreading false and negative information about a company or its products in order to damage the company's reputation. It's also referred to as business disparagement or commercial defamation.When a person spreads untrue rumors about a company, its employees, or its goods or services, it can be harmful to the company's reputation, causing it to lose customers and revenue. As a result, it is illegal, and companies have the right to seek legal action against those who engage in it.Claiming publicly that a particular restaurant is a poorly run business solely because you didn't enjoy your meal is a clear example of defamation of business as it involves spreading false information about a company to damage its reputation.
For more question like Business visit the link below:
https://brainly.com/question/30357766
#SPJ11
Which of the following would be defined as retaliation under EEO laws?
A.
A dismissed employee files a false complaint of discrimination with the EEOC.
B.
The EEOC targets an employer with a history of unlawful discriminatory practices.
C.
A hospital demotes a nurse who has complained about ethnic discrimination.
D.
An employer fires a supervisor who discriminates against a protected-class member.
EEO laws (Equal Employment Opportunity laws), retaliation refers to adverse actions taken by an employer against an individual for engaging in protected activity, such as filing a complaint or reporting discrimination.
Based on this understanding, the that would be defined as retaliation under EEO laws is:
C. A hospital demotes a nurse who has complained about ethnic discrimination.
Retaliation occurs when an employer takes adverse actions, such as demotion, termination, or other negative treatment, against an employee in response to their complaint or participation in protected activities related to discrimination. In this scenario, the nurse is being demoted after complaining about ethnic discrimination, which can be seen as a retaliatory action by the hospital. Retaliation is prohibited by EEO laws, as it discourages individuals from reporting discriminatory practices and seeking protection under the law.
Learn more about Employment here:
https://brainly.com/question/31913111
#SPJ11
Q3. The law of diminishing returns applies only to businesses
with very simply production. (8.5 marks)
Your Answer and Graph:
The law of diminishing returns is a fundamental economic principle that states that as more units of a factor of production are added to a production process, the marginal product of each additional unit will eventually decline.
This principle applies to all businesses, regardless of the complexity of their production processes.
The law of diminishing returns is based on the assumption that all resources are not equally efficient for producing goods and services.
As businesses add more of a specific factor of production, such as labor or capital, the output of each additional unit will eventually become less than the previous one.
This occurs because the fixed resources, or the resources that do not increase with additional units, become stretched too thin, thus bottlenecking production.
While the law of diminishing returns is often illustrated with simple examples, such as the production of crops in agriculture, it applies to all businesses, including those with complex production processes.
In fact, complex businesses may be even more prone to experiencing diminishing returns due to the interdependence of various factors of production.
For example, as more workers are added to a manufacturing plant, the production line may become overcrowded, leading to reduced efficiency and quality.
Therefore, all businesses must be mindful of the principle of diminishing returns and strive to optimize the use of their resources to ensure maximum productivity.
Learn more about bottlenecking here.
https://brainly.com/questions/31000500
#SPJ11
1. Arguably Keynes’s ideas were not a paradigm break, but extended the Neoclassical tradition of the Marginalist Subjectivists, Marshall, and Clark because Keynes a). argued that both supply and demand had an impact on output. b). emphasized the role of psychology in determining the interest rate and effective demand. c). recognized that the disutility of labor was a major factor in determining unemployment. d). emphasized that wage cuts could bring an economy to full employment. e). All of the above. 11. For Keynes, which of the following did not affect the interest rate? a). Households’ saving preferences. b). Borrowers’ assessments of risk. c). Lenders’ concern that they would not be repaid. d). Central Bank injections of money into the economy. 3. Which of the following argued that rising wages would lead to faster population growth and end up reducing wages to a subsistence level?
a). Ricardo
b). Marx
c). Marshall
d). Keynes
e). None of the above
1. Arguably Keynes's ideas were not a paradigm break, but extended the Neoclassical tradition of the Marginalist Subjectivists, Marshall, and Clark because Keynes emphasized the role of psychology in determining the interest rate and effective demand. Therefore, the correct option is b).
2. For Keynes, Central Bank injections of money into the economy did not affect the interest rate. Therefore, the correct option is d).
3. Thomas Malthus argued that rising wages would lead to faster population growth and end up reducing wages to a subsistence level. Therefore, none of the above (option e) is the correct answer.
The correct answers are as follows:
a). emphasized the role of psychology in determining the interest rate and effective demand. Therefore, the correct option is b).
d). Central Bank injections of money into the economy did not affect the interest rate. Therefore, the correct option is d).Thomas Malthus argued that rising wages would lead to faster population growth and end up reducing wages to a subsistence level. Therefore, none of the above (option e) is the correct answer.
To know more about rate , visit
https://brainly.com/question/25565101
#SPJ11
Sheridan Company uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows:
Year ended December 31 Inventory at End-of-year Prices Price Index
2019 $ 648000 1.02
2020 1262000 1.07
2021 1347250 1.12
What is the 2020 inventory balance using dollar-value LIFO? (Round intermediate calculations and final answer to 0 decimal places, e.g. 10,000.)
$1246640.
$1262255.
$1237255.
$1216640.
Dollar-value LIFO method is an accounting technique used to value an inventory in which inventory is kept in terms of monetary values rather than units.
Sheridan Company uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as Year ended December 31 Inventory at End-of-year Prices Price Index2019 $ 648000 1.022020 1262000 1.072021 1347250 1.12
The formula for the dollar-value LIFO method is Opening Inventory + Purchases = Goods available for sale – Sales = Closing inventory ,the LIFO charge by applying the price index to the ending inventory.
The LIFO charge is the amount that the inventory is adjusted due to the change in prices.
Ending inventory at current prices × Price index - Ending inventory at prior year prices × Prior year price index
the 2020 inventory balance using dollar-value LIFO can be calculated as Opening inventory at 2019 prices = $648,000Purchases in 2020 = $1,262,000
Ending inventory at 2020 prices = $1,262,000 - LIFO charge LIFO charge = ($1,262,000 × 1.07) - ($1,262,000 × 1.02) = $63,540
Ending inventory at 2020 prices = $1,262,000 - $63,540 = $1,198,460 the 2020 inventory balance using dollar-value LIFO is $1,198,460.
To know more about inventory visit:-
https://brainly.com/question/31146932
#SPJ11
The information here is the same for answering questions 51 to 54. A medical treatment (A) is given to COVID patients admitted to a local hospital. Fortunately, 30% of patients will fully recover and can be released from hospitals. The remaining 70% patients will need to go through a second treatment (either C, 50% or D, 20%) before they will fully recover and can be released. Assume 100 patients per day are being admitted to the hospital for medical treatments. Capacity utilization for resource treating patients from A to D is calculated using 2,000 hospital beds designated for COVID treatment. The process diagram is given here for reference. 30% с 8 days 50% A Admitted 7 days Released 2 days 20% D 10 days Which one is the bottleneck of the entire process? с B No bottleneck in this process because all resource utilization rates are less than 100% A Which one is the bottleneck of the entire process? с B No bottleneck in this process because all resource utilization rates are less than 100% A
The bottleneck in a process refers to the step or resource that limits the overall capacity or flow of the process.
In this case, the bottleneck can be identified by determining which step or resource has the highest utilization rate.
Based on the given information, the process diagram shows that 30% of patients undergo treatment C, 50% undergo treatment A, and 20% undergo treatment D. The utilization rates for each treatment are as follows:
Treatment C: 30% utilization (30 patients out of 100)
Treatment A: 50% utilization (50 patients out of 100)
Treatment D: 20% utilization (20 patients out of 100)
Comparing the utilization rates, we can see that treatment A has the highest utilization rate at 50%. This indicates that treatment A is the bottleneck of the entire process. It is the step that limits the overall capacity of the process because it is being utilized at the highest rate among the available resources.
Therefore, the correct answer is: A. Treatment A
learn more about resource here
https://brainly.com/question/30665595
#SPJ11
For the following AON network, answer the following questions 4 18 10 5 5 13 9 2 9 What is the LS for activity 3? Answer:
In the given AON network diagram, the values, which are mentioned at the end of each activity, show the time duration in which each activity is supposed to be completed, which is known as duration.
The LS for activity 3 in the given AON network is 19. Activity on the node (AON) is a diagramming technique that is used to visualize, analyze, and schedule the flow of work in a project or process. The AON network diagram above demonstrates the flow of a project through nine different activities, each of which is represented as a node. The duration of each activity is represented by the value on its right side. To determine the LS for activity 3, we must first calculate the earliest start time (EST) and earliest finish time (EFT) for each activity, as well as the latest start time (LST) and latest finish time (LFT) for each activity.
The critical path is determined by the activities that have zero slack. The critical path is 1-4-7-9, which means that if any of these activities is delayed, the entire project will be delayed. Activity 3 is not on the critical path and has a slack of 5 days. The latest start time (LST) for activity 3 is 23 because its latest finish time (LFT) is 28 and its duration is 5. Thus, the LS for activity 3 is 19, which is calculated by subtracting its duration (5) from its latest start time (23). Therefore, the LS for activity 3 in the given AON network is 19.
Learn more about AON Networks
https://brainly.com/question/14987913?
#SPJ11
issues could be im-proved through orientation, training, or staff development programming?
Issues can be improved through orientation, training, or staff development programming. Orientation is the process of familiarizing new employees with the organization's culture, practices, and policies. It enables new employees to understand their roles, responsibilities, and expectations.
Orientation programs help new employees to adapt to their new jobs quickly and integrate into the organization.Training is the process of providing employees with the knowledge, skills, and abilities necessary to perform their jobs effectively. It helps employees acquire the technical knowledge and skills required to perform their jobs. It also helps employees to develop interpersonal skills, such as communication, leadership, and teamwork. Staff development programming is the process of enhancing employees' knowledge, skills, and abilities through professional development activities. It helps employees to develop new skills and knowledge that can benefit the organization. Staff development programs include workshops, seminars, conferences, and certification programs.
In conclusion, orientation, training, and staff development programming are essential tools for addressing organizational issues. They help employees to adapt to their new jobs quickly, acquire new skills and knowledge, and perform their jobs effectively.
To know more about Staff development visit-
https://brainly.com/question/31452007
#SPJ11
Bruce Corporation makes four products... Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Multiple Choice O O O Product B Product A Product D Product C A B $17.50 $ 21.40 22.90 7.50 16.30 $72.70 $ 68.10 $58.10 $ 53.80 19.50 6.30 29.40 Products A 2.40 $88.20 $ 3.25 4,900 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. C $14.40 B 1.45 $ 80.60 $3.95 3,900 17.30 10.00 16.40 Products C 1.00 $77.40 $ 4.70 3,900 D $ 17.10 11.30 7.00 18.40 D 1.30 $72.10 $5.40 5,900
To determine which product makes the most profitable use of the grinding machines, we need to calculate the contribution margin per grinding minute for each product. The contribution margin per grinding minute indicates how much profit is generated for each minute of machine time used.
The contribution margin per grinding minute can be calculated as follows:
Contribution Margin per Grinding Minute = (Selling Price per Unit - Variable Cost per Unit) / Grinding Minutes per Unit
For each product:
Product A: (68.10 - 21.40) / 2.40 = $18.12
Product B: (72.70 - 17.50) / 1.45 = $38.14
Product C: (53.80 - 22.90) / 1.00 = $30.90
Product D: (72.10 - 17.10) / 1.30 = $41.62
Comparing the contribution margin per grinding minute for each product, we find that Product D makes the most profitable use of the grinding machines with a contribution margin of $41.62 per minute.
To learn more about margin : brainly.com/question/15357689
#SPJ11
230 PARTM The Core of Macroeconomic Theory AS (Long run) AS (Short run Price level, AD By using aggregate supply and demand curves and other useful graphs, illustrate the following: a. Those pushing the Fed to act were right, and prices start to rise more rapidly in 2000. The Fed acts belatedly to slow money growth (contract the money supply), driv ing up interest rates and pushing the economy back to potential GDP b. The worldwide glut gets worse, and the result is a falling price level (deflation) in the United States despite expand ing aggregate demand. 5.4 Using AS and AD curves to illustrate, describe the effects of the following events on the price level and on equilib rium GDP in the long run assuming that input prices fully adjust to output prices after some lag: a. An increase occurs in the money supply above potential GDP b. GDP is above potential GDP, and a decrease in govern- ment spending and in the money supply occurs c. Starting with the economy at potential GDP, a war in the Middle East pushes up energy prices temporarily. The Fed expands the money supply to accommodate the inflation.
In the long run, the AS curve will shift back to its initial position, decreasing the price level while returning output to its initial level.
a. Those pushing the Fed to act were right, and prices start to rise more rapidly in 2000. The Fed acts belatedly to slow money growth (contract the money supply), driving up interest rates and pushing the economy back to potential GDP:AS in the short run will have a positive slope due to the existence of nominal wage rigidity, while AS in the long run will be vertical since output prices will increase to adjust to any changes in input prices.
AD will shift to the right, increasing the price level and equilibrium output in the short term, as well as long-term output. If the Fed slows down money growth, the AD curve shifts back to its original position, the economy will return to its potential GDP in the short term, and the price level will remain the same.
Since output prices will fully adjust to input prices, output will return to its original level in the long run. b. The worldwide glut gets worse, and the result is a falling price level (deflation) in the United States despite expanding aggregate demand :When there is an increase in the money supply above potential GDP, the AD curve shifts rightward, raising both equilibrium output and the price level in the short run.
Since prices will rise to adjust to any increases in input prices, the AS curve will shift up in the long run, raising the price level and reducing output to the initial level .c. Starting with the economy at potential GDP, a war in the Middle East pushes up energy prices temporarily.
The Fed expands the money supply to accommodate the inflation: If GDP is above potential GDP and government spending and the money supply are decreased, the AD curve will shift leftward, decreasing both equilibrium output and the price level in the short term. Output prices will drop, leading the AS curve to shift down in the long run, reducing the price level and returning output to its original level.
In the short term, an increase in energy prices raises the AS curve, increasing the price level and reducing equilibrium output. The AD curve will shift rightward if the Fed increases the money supply to adjust for inflation, resulting in a temporary increase in both equilibrium output and the price level in the short run.
To know more about price visit:
https://brainly.com/question/19091385
#SPJ11
Please take a look at the company's reports (Annual Reports or Investors Relations site) and explain the nature of its corporate governance, social, ethical, and environmental statements. You may comment on the following: a) Explain the nature, and the structure of its corporate governance system, and compare it to the corporate governance systems we have covered in this course (Hint: Compare it to the German or European system and the Japan system). b) What different types of stakeholders does it serve? c) Why is it important for companies to recognize and address the priorities and needs of different stakeholder groups? d) Provide an example of the ways in which the company contributes to the well-being of each of the types of stakeholders you have named. e) How does the company address environmental and sustainability issues?
The company's corporate governance system is structured based on the principles of transparency, accountability, and shareholder participation.
The company serves various types of stakeholders, including shareholders, employees, customers, suppliers, local communities, and regulatory bodies.
It is important for companies to recognize and address the priorities and needs of different stakeholder groups because they have a significant impact on the company's success and sustainability.
The company contributes to the well-being of different stakeholder groups through various initiatives. For example, it may provide fair wages and benefits to employees, prioritize customer satisfaction and product quality, support local communities through corporate social responsibility programs.
The company addresses environmental and sustainability issues by implementing measures to minimize its ecological footprint. This may include adopting energy-efficient technologies, reducing greenhouse gas emissions, promoting recycling and waste management practices, and supporting renewable energy sources.
Learn more about shareholder here: brainly.com/question/32134220
#SPJ11
The company's corporate governance system is structured based on the principles of transparency, accountability, and shareholder participation.
The company serves various types of stakeholders, including shareholders, employees, customers, suppliers, local communities, and regulatory bodies.
It is important for companies to recognize and address the priorities and needs of different stakeholder groups because they have a significant impact on the company's success and sustainability.
The company contributes to the well-being of different stakeholder groups through various initiatives. For example, it may provide fair wages and benefits to employees, prioritize customer satisfaction and product quality, support local communities through corporate social responsibility programs.
The company addresses environmental and sustainability issues by implementing measures to minimize its ecological footprint. This may include adopting energy-efficient technologies, reducing greenhouse gas emissions, promoting recycling and waste management practices, and supporting renewable energy sources.
Learn more about shareholder here: brainly.com/question/32134220
#SPJ11
Discuss the need to select an 'appropriate' quality system for a given environment and compare and contrast the needs of engineering and service industries in terms of their application of quality systems and the critical factors needed for success.
Selecting an appropriate quality system is crucial for achieving success in any given environment. The choice of quality system should align with the specific requirements, characteristics, and objectives of the industry or organization.
Engineering industries typically require robust quality systems that focus on product design, manufacturing processes, and adherence to technical specifications. Quality systems such as ISO 9001 provide a structured approach to quality management, emphasizing standardization, process control, and continuous improvement. The critical factors for success in engineering industries include precise specifications, adherence to regulations and safety standards, rigorous testing and inspection procedures, and efficient supply chain management. In contrast, service industries emphasize customer satisfaction and experience. Quality systems like Six Sigma and Total Quality Management (TQM) are commonly applied in service sectors. These systems focus on understanding customer needs, enhancing service delivery processes, and maintaining consistency in service quality. Critical success factors for service industries include customer feedback and engagement, effective communication, employee training and empowerment, service customization, and continuous evaluation and improvement of service delivery processes.
Learn more about Engineering industries here:
https://brainly.com/question/30635538
#SPJ11
It has been proposed that natural monopolists should be allowed to determine their profit-maximizing outputs and prices, and then government should tax their profits away and distribute them to consumers in proportion to their purchases from the monopoly, Is this proposal as socially desirable as requiring monopolists to equate price with marginal cost or average total cost? Explain. No, it does not consider that the output of natural monopolists would still be at the suboptimal level where P> MC. Yes, it is more socially desirable than equating price with average total cost. No, it does not consider that the output of natural monopolists would still be at the suboptimal level where P < MC. Yes, it has the same outcome as fair-return pricing.
The correct answer is: No, it does not consider that the output of natural monopolists would still be at the suboptimal level where P < MC.
The proposal of allowing natural monopolists to determine their profit-maximizing outputs and prices and then taxing their profits away and distributing them to consumers does not address the issue of inefficiency that arises from the monopolistic market structure. Natural monopolies have declining average total costs and can produce at a lower cost than other firms in the market. However, allowing them to set prices above marginal cost (P > MC) would result in a suboptimal level of output.
Equating price with marginal cost or average total cost ensures allocative efficiency and maximizes social welfare by setting prices at the level that reflects the true cost of production. This promotes economic efficiency and avoids the deadweight loss associated with monopoly power. Therefore, the proposal of taxing monopolists' profits does not provide the same level of social desirability as pricing mechanisms based on marginal cost or average total cost.
Learn more about marginal cost here:
https://brainly.com/question/14923834
#SPJ11
THE GREAT DEPRESSION This question (and the next) asks you to use your knowledge of markets for bank re- serves and credit markets to explain a conventional perspective on the Great Depression. Following the stock market crash in 1929, the U.S. experienced a sequence of banking crises in 1931 and 1932. We explore the consequences of these crises on nominal interest rates, real interest rates and the economy. 1. (Demand for Reserves) Suppose banks become worried that households may suddenly withdraw a lot of their deposits and further assume that the Fed does not respond. Using a graph, show the impact of this change in the market for bank reserves and on the nominal (Federal Funds) interest rate.
this results in a rise in the nominal (Federal Funds) interest rate as shown in the graph.
During the Great Depression, after the stock market crash in 1929, there was a sequence of banking crises in 1931 and 1932. In case banks became worried that households might suddenly withdraw their deposits, they would have to raise reserve requirements, which would result in a decrease in the supply of bank reserves, raising the federal funds' nominal interest rates.In case of a decrease in the market for bank reserves, banks become worried that households may suddenly withdraw their deposits, which leads to a rise in reserve requirements and a decrease in the supply of bank reserves. Therefore, this results in a rise in the nominal (Federal Funds) interest rate as shown in the graph.
To know more about Federal Funds visit:
https://brainly.com/question/31232170
#SPJ11
Consider the model of leverage cycles discussed in lectures. Suppose investors are endowed with one unit of money and two units of the asset. Assume that the asset pays a return of 1 in the good state of the world and 0.4 in the bad state of the world. Assume other aspects of the model presented in lectures are unchanged. In a world without borrowing, which two equations could be used to solve for the equilibrium price and quantity? O p = h +0.4 (1 h) and h* = (1- h*)/p* O p*=h* + 0.4 (1-h*) and 2 h* = (1-h*)/p* O p*=h* + 0.8 (1 -h*) and h* = (1-h*)/p* O None of the above.
Answer:
In a world without borrowing, the two equations that could be used to solve for the equilibrium price and quantity are:
p = h + 0.4(1 - h)
h* = (1 - h*) / p*
The first equation represents the equilibrium price condition for the price (p) in terms of the proportion of investors holding the asset (h). It states that the price is determined by the weighted average of the returns in the good state (1) and the bad state (0.4), based on the proportion of investors holding the asset.
The second equation represents the equilibrium quantity condition for the investor's proportion holding the asset (h*). It states that the proportion of investors holding the asset is equal to the complement of the proportion of investors not holding the asset (1 - h*), divided by the price (p*).
These two equations together capture the equilibrium relationship between the price and quantity of the asset in a world without borrowing.
Learn more about equilibrium in leverage cycles here:
https://brainly.com/question/32403813
#SPJ11
The following graph shows the domestic market for steel in the United States, where Sp is the domestic supply curve, and Dp is the domestic demand curve. Assume the United States is considered a large nation, meaning that changes in the quantity of its imports due to a tariff influence the world price of steel. Under free trade, the United States faced a total supply schedule of Sp+W, which shows the quantity of steel that both domestic and foreign producers together offer domestic consumers. In this case, the free-trade equilibrium (black plus) occurs at a price of $240 per ton of steel and a quantity of 18 million tons. At this price, the United States imports 12 million tons of steel. Suppose the U.S. government imposes a $60-per-ton tariff on steel imports. On the following graph, use the tan line (rectangle symbol) to draw the new total supply schedule including the tariff (SD+W+D. Then use the grey point (star symbol) to indicate the new market equilibrium price and quantity as a result of the tariff. 420 PRICE (Dollars per ton) ▬▬▬ SD+W+T Equilibrium Under Tariff Domestic Revenue Effect Terms-of-Trade Effect SD+W 0 4 20 Deadweight Loss 6 8 10 12 14 16 QUANTITY OF STEEL (Millions of tons) The tarrif's revenue effect (the import tariff multiplied by the quantity of steel imported) can be broken into two components: • Domestic revenue effect • Terms-of-trade effect 390 360 330 300 270 240 210 180 150 120 DD 2 Sp 18 On the previous graph, use the green rectangle (triangle symbols) to indicate the domestic revenue effect of the tariff. Then use the purple rectangle (diamond symbols) to indicate the terms-of-trade effect. Now consider the effect of the tariff on welfare in the United States. On the previous graph, use the black triangles (plus symbols) to indicate the deadweight loss caused by the tariff. True or False: National welfare in the United States increases as a result of a $60-per-ton tariff on steel imports. O True False O
The correct answer is false. When a $60-per-ton tariff is imposed on steel imports in the United States, national welfare does not increase; in fact, it decreases. The tariff leads to several effects that contribute to this outcome.
First, the domestic revenue effect of the tariff is represented by the green rectangle on the graph. This indicates the additional revenue collected by the government through the tariff. However, this revenue comes at the expense of higher prices for steel, reducing consumer surplus and negatively impacting consumer welfare.
Second, the terms-of-trade effect, shown by the purple rectangle, represents the change in the United States' position in international trade. By imposing the tariff, the United States reduces its imports of steel, which can influence the world price of steel. This effect may benefit domestic producers but results in higher prices for consumers and can negatively impact overall welfare.
Lastly, the deadweight loss, indicated by the black triangles, represents the efficiency loss caused by the distortion in the market. Tariffs create artificial barriers and reduce the quantity of trade, leading to a loss in economic efficiency and overall welfare.
Therefore, due to the decrease in consumer surplus, the potential negative impact on international trade, and the deadweight loss, the statement that national welfare in the United States increases as a result of the $60-per-ton tariff on steel imports is false.
To know more about distortion visit-
brainly.com/question/29847382
#SPJ11
Nguyen Corporation's common stock has a beta of 1.38. The risk-free rate is 1.78 percent and the expected return on the market is 14.6 percent. What is the cost of equity? 22.51% 21.93% 17.69% 20.15% 19,47%
The cost of equity for Nguyen Corporation's common stock with given content loaded data can be calculated using the Capital Asset Pricing Model (CAPM)
formula.
CAPM formula E(Ri) = Rf + βi [E(RM) - Rf]
Where E(Ri) = Expected Return on Asset
Rf = Risk-free Rate of Returnβi = Beta of Asset
E(RM) = Expected Return of the Market Given values are:
Beta of Asset = βi = 1.38
Risk-free Rate of Return = Rf = 1.78%
Expected Return of the Market = E
(RM) = 14.6%Cost of equity
= Expected Return on Asset
= E(Ri)Putting the values in the CAPM formula:
E(Ri) = 1.78% + 1.38 × (14.6% - 1.78%)E(Ri)
= 1.78% + 1.38 × 12.82%E(Ri)
= 1.78% + 17.6856%E(Ri)
= 19.4656%
≈ 19.47%Therefore, the cost of equity is 19.47% (approx).
Hence, option E) 19.47% is the correct answer.
To know more about Corporation's common stock visit:
https://brainly.com/question/14692458
#SPJ11
When calculating net present value for a bond refunding calculation, all of the following are considered either outflows are inflows EXCEPT:
a Cost savings with the new interest rates.
b Net loss from underwriting cost on old issue.
c Net cost of underwriting expense on new issue.
d Net cost of call premium.
Bond Refunding Refunding bonds is issuing new debt to pay off an old debt. Bond refunding is when an issuer replaces its outstanding debt with new debt.
By doing so, the issuer may be able to reduce its debt costs, extend its debt payments, or shift risk to the bondholder. The Bond Refunding Process The process of bond refunding is very similar to the process of issuing a new bond. To refinance a bond, the issuer must, Hire an underwriter to help prepare a prospectus and sell the bonds, Choose the interest rate or rates to offer on the new bonds, Decide on the call provisions (if any) for the old bonds, Decide on the maturity of the new bonds, and Price the new bonds The issuer may also calculate the internal rate of return (IRR) to help determine the feasibility of the bond refunding.
To know more about underwriter refer :
https://brainly.com/question/1420379
#SPJ11
Question 1:
Dolby, Inc. issued a $5,000 face value, 10%, five-year bond at 96. What will be the journal entries at the maturity of the bond? The bonds have semiannual interest, and the company uses the straight-line method of discount amortization.
Face Value, F = $5,000Coupon Rate, r = 10% = 0.1Discount Rate, d = (100 - 96) / 5 = 0.80% = 0.008 for a semiannual paymentPeriod, t = 5 years = 10 semiannual paymentsSemiannual Interest, i = r/2 * F = 0.1/2 * $5,000 = $250First of all, we have to calculate the present value of the bond.
The present value of the bond can be calculated by the following formula:PV = i * [1 - (1 / (1 + d)^n)] / d + F / (1 + d)^nWhere, n = number of semiannual periodsPV = present value of bondIn this case, i = $250, n = 10, d = 0.008 and F = $5,000, therefore:PV = $2,868.67Now, let’s see how to record the journal entries for the bond at maturity. At maturity, the company pays back the face value of the bond to the bondholders. Hence, the entry to record the maturity payment is as follows:At maturity, the bondholder will receive a payment of the face value of the bondFace Value of Bond $5,000 Discount on Bond Payable $2,868.67 Bond Interest Payable $131.33 Cash $5,000At the time of bond issuance, the discount on bond payable account is created to show the amount of discount on bonds.
It is a contra-liability account, that is, it decreases the value of the liability account, i.e., bond payable. The account balance of the discount on bond payable is increasing with each interest expense recording. In this example, the bond discount was $2,868.67 at the bond issuance, so this account will decrease by this amount at maturity.The bond interest payable account is created to record the interest expense that has accrued since the last interest payment date. At the bond issuance, the company records the bond interest payable account with a zero balance, and as interest accrues, it increases.
To know more about Face value visit;-
https://brainly.com/question/13991360
#SPJ11
