inflation-indexed treasury bonds are intended for investors who wish to ensure that the returns on their investments keep up with the increase in prices over time. a. true b. false

To maximize profit, you should charge an adult ticket at $7 and a children's ticket at $6. This would lead to a total profit of $1,700 (300 adults x $7 + 200 children x $6).

With the city council's law prohibiting you from charging different prices, you would have to charge the same price for both adults and children. This price should be set at $6.50, since this would maximize total revenue (300 adults x $6.50 + 200 children x $6.50 = $2,350). Your profit would then be $1,350.

The law prohibiting price discrimination makes the adults worse off and the children better off. The adults would have to pay $0.50 more for their tickets than before, which leads to a decrease in total welfare of $150 (300 adults x $0.50 = $150). Meanwhile, the children would pay $0.50 less, leading to an increase in total welfare of $100 (200 children x $0.50 = $100).

If the fixed cost of the play were $2,500, then you would have to charge an adult ticket at $8 and a children's ticket at $7 in order to maximize profit. With the city council's law prohibiting price discrimination, you would have to charge the same price for both adults and children. This  should be set at $7.50, since this would maximize total revenue. The adults would have to pay $1.50 more for their tickets than before, leading to a decrease in total welfare of $450 (300 adults x $1.50 = $450). Meanwhile, the children would pay $1.50 less, leading to an increase in total welfare of $300 (200 children x $1.50 = $300). Your profit would then be $950.

for more questions on profit

https://brainly.com/question/19104371

#SPJ11

The type of interest that is recalculated during each period of the loan's terms is called "compounding interest."

Compounding interest is calculated based on the principal amount of the loan, as well as any accumulated interest from previous periods. In other words, the interest earned in each period is added to the principal balance, and the interest for the next period is calculated based on the new, higher balance. This can result in the loan balance growing over time, even if the borrower is making regular payments on the loan. Compounding interest is common for many types of loans, including mortgages, car loans, and credit cards.

To learn more about compounding interest click here

brainly.com/question/14295570

#SPJ4

Goods that are identical are known as Fungible.

Goods are physical objects that can be purchased, sold, or transferred from one person to another. These can be considered as commodities or items that are useful or valuable. A person can sell the goods and get the price for it. Goods are considered to be any physical commodity or asset that is transferred between businesses or individuals who are buyers and sellers.

Goods that are identical are known as Fungible. Fungibility is a term that refers to goods, securities, or assets that are interchangeable with one another. Fungible goods are products that can be exchanged or substituted for another without having to change their value.

For example, a kilogram of sugar produced by one manufacturer is exactly the same as a kilogram of sugar produced by another manufacturer. This means that these goods are identical to each other and can be exchanged without any loss or gain in value. They are called fungible goods.

Learn more about goods here:

brainly.com/question/24373500

#SPJ11

Jaray is performing the role of "gatekeeper" as a member of the buying center.

Gatekeeper: A "gatekeeper" is a person or department in a business that controls the flow of information to others. The gatekeeper is in charge of keeping track of information about the services and goods provided by the company. They also monitor requests from customers and vendors.

Gatekeepers can be divided into three types:

1. Technical gatekeepers: They serve as a technical interface for people interested in purchasing the company's services or products. They work to understand the specifications and characteristics of the product, then assist clients in determining which products or services are best for them.

2. Economic gatekeepers: They are in charge of the company's pricing strategies. Economic gatekeepers ensure that the prices are competitive while also ensuring that the company earns a profit.

3. Purchasing gatekeepers: They are in charge of purchasing goods and services from the company. They collaborate with the technical and economic gatekeepers to ensure that the goods and services meet the company's standards.

In the given case, Jaray is performing the role of "gatekeeper" as a member of the buying center.

To learn more about “gatekeeper” refer to the https://brainly.com/question/12405571

#SPJ11

The insurance would cover $40,000 of the judgment, as that is the maximum coverage for bodily injury liability for two people in an at-fault accident under Becky's policy.

Becky's policy has three numbers representing the maximum amount of coverage for bodily injury liability per accident, per person injured, and for property damage, respectively, which are:

Since the accident involves two people who were injured, we need to look at the coverage for bodily injury liability per accident, which is $40,000. Therefore, the insurance would cover up to $40,000 of the total $60,000 judgment ($30,000 for each injured person), leaving Becky responsible for the remaining $20,000.

Learn more about automobile insurance https://brainly.com/question/29634573

#SPJ11

Category 1 (Factors that raise labor productivity)
(i) Promoting educational and work opportunities for women.
(ii) The best-trained workers in a country migrate to other countries to pursue better opportunities.
(iii) A labor-using improvement in technology.

Category 2 (Factors that lower labor productivity)
(iv) Low levels of literacy, malnutrition, lack of proper medical care, and insufficient educational facilities.

What is labor productivity?

Labor productivity is the number of goods and services that a worker produces in a specific period of time. This is calculated by dividing the number of goods produced by the number of hours worked. Labor productivity is calculated by dividing the output of a company by the total number of hours its workers have spent working.

What are the factors that raise and lower labor productivity?

The factors that raise labor productivity are: Promoting educational and work opportunities for women. The best-trained workers in a country migrate to other countries to pursue better opportunities. A labor-using improvement in technology. The factors that lower labor productivity are Low levels of literacy, malnutrition, lack of proper medical care, and insufficient educational facilities.

Learn more about Production here:-  

https://brainly.com/question/16755022

#SPJ11

B. Demand is highly variable. Yield management is least effective when demand is highly variable, as it relies on an accurate prediction of customer demand in order to allocate resources efficiently.

From an operational perspective, yield management is the least effective under which of the following circumstances?Yield management is less effective under the following circumstances: Option A: Fixed costs are high and variable costs are low.

This answer is incorrect because high fixed costs and low variable costs are ideal circumstances for yield management since the prices can be varied according to demand. Option B: Demand is highly variable. This is the correct answer to the question. Option C: The product can be sold in advance.

This is also an incorrect answer because when the product can be sold in advance, yield management can be utilized to maximize revenue. Option D: Demand is stable and close to capacity. This is also an incorrect answer because it is ideal for yield management.

What is Yield Management? Yield management refers to a revenue management technique that aims to maximize profit by managing inventory and pricing to optimize demand. Yield management works best when the product can be sold at different prices to different customers at different times. Yield management is used in a wide range of industries, including the airline, hotel, and car rental industries.

You can read more about fixed costs at https://brainly.com/question/20670674

#SPJ11

By the mid-twentieth century, in the case of Shirensky v. Wrigley the courts had given boards of directors and management more latitude in determining how to balance the interests of stakeholders.

Shirensky v. Wrigley is a United States Court of Appeals decision that was made in 1947. The court held that directors of a corporation must be allowed to balance the interests of different groups of stakeholders, such as shareholders, employees, creditors, and customers, in order to make decisions that promote the company's long-term well-being.

This decision significantly expanded the discretion of boards of directors and management in determining how to balance the interests of stakeholders. The court's selection in Shirensky v. Wrigley was one of the most important legal precedents in corporate law history, and it had a significant impact on the development of corporate governance principles in the United States.

Learn more about stakeholders here:

brainly.com/question/15532995

#SPJ11

The economic situations given in the question have different effects on the aggregate demand and aggregate supply curves. Understanding these effects can help in predicting the impact of certain economic situations on the economy.

The given economic situations are as follows and their respective effects on aggregate demand and aggregate supply are to be explained:

(a) Increase in interest rates:When there is an increase in interest rates, aggregate demand will decrease, which will lead to a shift in the aggregate demand curve to the left. This happens because higher interest rates increase the cost of borrowing, which decreases the willingness of consumers and businesses to spend money on investments and large purchases. As a result, there will be a decrease in demand for goods and services in the economy.

(b) Decrease in amount of energy resources:When there is a decrease in the amount of energy resources, the aggregate supply curve will shift to the left. This is because when there are fewer resources available, businesses will need to increase their prices to cover their costs. As a result, the prices of goods and services will increase, leading to a decrease in demand for goods and services.

(c) Increase in population:An increase in population will cause the aggregate demand curve to shift to the right. This is because an increase in population will increase the number of consumers, which will lead to an increase in demand for goods and services in the economy.

(d) Decrease in personal income taxes:A decrease in personal income taxes will lead to an increase in aggregate demand, causing the aggregate demand curve to shift to the right. When consumers have more disposable income, they are more likely to spend money on goods and services, which increases demand in the economy.

(e) New innovations:New innovations can lead to a shift in both aggregate demand and aggregate supply curves. If the innovation leads to an increase in production efficiency, the aggregate supply curve will shift to the right. This is because the new innovation will enable businesses to produce more goods and services at a lower cost. On the other hand, if the innovation leads to a new product, then it will cause the aggregate demand curve to shift to the right, as consumers will be willing to spend money on this new product.

For more questions on economy

https://brainly.com/question/25745683

#SPJ11

The statement the American Marketing Association defines marketing as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is true because to assist marketers in acquiring the skills necessary to stay on top of new trends and advance their long-term professional growth.

AMA offers specialty conferences, one-day hot subject seminars, bootcamps, and workshops. Credible, scholarly research that has undergone peer review serves as the foundation for the American Marketing Association. The AMA Academic Community supports innovative thinking, encourages working connections, and improves the area of marketing by bringing together academics from other fields who are eager to find solutions to pressing issues.

To learn more about Marketing, click here.

https://brainly.com/question/13414268

#SPJ4

The balance in accounts receivable as of December 31, year 1 is $6,700. Therefore, the correct option is B.

Buckley Company started in year 1 by issuing stock for $17,400 cash. During year 1, Buckley earned $12,900 of revenue on account. The company collected $6,200 cash from accounts receivable and paid $4,200 cash for operating expenses.

The company earns revenue on account, i.e., on credit, so the $12,900 revenue earned in year 1 means that $12,900 worth of accounts receivable were generated in year 1.

The collection of $6,200 from accounts receivable reduces the accounts receivable balance, leaving the balance that hasn't been collected yet in accounts receivable.

Therefore, the accounts receivable balance as of December 31, year 1 is:

$12,900 – $6,200 = $6,700

Thus, the balance in accounts receivable as of December 31, year 1 is $6,700.  Hence, option B is correct.

Note: The question is incomplete. The complete question probably is: Buckley company started in year 1 by issuing stock for $17,400 cash. during year 1, Buckley earned $12,900 of revenue on account. the company collected $6,200 cash from accounts receivable and paid $4,200 cash for operating expenses. based on this information alone, the balance in accounts receivable as of December 31, year 1 is: multiple choice A) $5, 800 B) $6,700 C) $7,000 D) $7,200.

Learn more about Accounts receivable:

https://brainly.com/question/24871345

#SPJ11

The gain or loss on the sale of the bond by Mr. Lewis is $2,960.

Three years ago, Mr. Lewis paid $40,000 for a newly issued corporate bond with a $50,000 stated redemption value. This year, he sold the bond for $43,900. Through the date of sale, Mr. Lewis recognized $940 of the original issue discount (OID) as accrued interest income. Compute his gain or loss on the sale. The gain or loss on sale is as follows:

Gain or Loss = Selling price - Cost basisCost basis = Initial investment + Accrued OID

[tex]Gain or loss=$43,900-$40,000-$940\\ =$2,960[/tex][tex]Gain or loss=$43,900-$40,000-$940\\ =$2,960[/tex]

Therefore, the gain or loss on the sale of the bond by Mr. Lewis is $2,960.

Learn more about redemption here:

brainly.com/question/13640010

#SPJ11

The ad that tells you to "call within the next ten minutes because supplies are limited" is using advertising appeal based on Scarcity. Scarcity is the perception that a product is rare or limited in supply.

It creates a sense of urgency and compels customers to take action quickly. It is a very effective advertising appeal as it causes the customer to make a purchase before the opportunity slips away.

This type of ad works by creating a sense of urgency and FOMO (fear of missing out). The ad implies that if the customer does not take action immediately, they will miss out on the limited opportunity. This scarcity-based appeal has the power to convince customers to buy quickly, as the fear of missing out on the product can override their rational thoughts.

In conclusion, the ad that tells you to "call within the next ten minutes because supplies are limited" is using advertising appeal based on Scarcity. This type of ad works by creating a sense of urgency and FOMO (fear of missing out), which can convince customers to buy quickly.

for more such questions on supply.

https://brainly.com/question/25646504

#SPJ11

The major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is cost or price. The correct choice is C.

Cost or price is an important factor for companies to maintain profitability and competitiveness in the market. It involves achieving the lowest cost of production while maintaining high quality standards. Companies that can provide quality products or services at a lower cost compared to their competitors can gain a competitive advantage in the market. This can be achieved through various strategies such as economies of scale, efficient supply chain management, process improvements, and automation.

Therefore, the correct answer is C.

You can learn more about competitive dimension at

https://brainly.com/question/28537263

#SPJ11

John, a car repair shop owner, is developing warranty and repair policies for his business. He is addressing the "product" area of the marketing strategy.

marketing strategy: A marketing strategy is a marketing plan created to accomplish a specific marketing objective. It entails the selection of a target market, determining customer needs, and designing products and services that satisfy those needs.

Furthermore, marketing strategy aids in the development of a marketing mix that will effectively meet customer requirements and maximize profitability. It is created through market research, which provides information about the target market and assists in the development of a plan that meets their needs.

the product in the marketing strategy:  The product area of a marketing strategy focuses on developing goods and services that meet the needs of the target market. The product should be designed to satisfy customer requirements and increase their satisfaction with the purchase. This encompasses features, quality, design, packaging, branding, warranties, and service levels.

Marketers must consider the following elements while formulating a product strategy:

By developing a warranty and repair policy, John is addressing the product area of the marketing strategy. It is his responsibility to create policies that reflect the interests of his target audience and provide them with satisfaction. A warranty is a guarantee that a product will function as advertised, and a repair policy is a service plan that covers the cost of any repairs.

Therefore, John's development of warranty and repair policies demonstrates his focus on the product area of the marketing strategy.

To learn more about “marketing strategy” refer to the https://brainly.com/question/25492268

#SPJ11

The total fees which Rachel will pay for her mistake is 15%. It is the cash advance fees and interest on the fees. The correct option is D.

Rachel Johnson mistakenly pulled out her credit card instead of her debit card when she went to the ATM to withdraw 300 cash. Her credit card company charges a cash advance fee of 3 and interest at 24 APR. Let's find out what the total fees will she have to pay for her mistake.

The total fees she will pay for her mistake are 15. Here's how to calculate it:

Cash Advance fee = (3/100) × 300 = 9

Interest = 24

Total fees = Cash Advance fee + Interest = 9 + 6 = 15%

Therefore, the correct option is D.

Learn more about Accounting here:

 https://brainly.com/question/13310721

#SPJ11

The salaries of workers at a catered event is an example of a fixed cost. Salaries are a fixed cost in this case.

Fixed costs are costs that don't vary with production or sales levels, such as rent, salaries, and insurance premiums. Fixed costs are expenses that remain constant regardless of the quantity of goods or services produced/sold by the company. For example, salaries and rent. Variable costs, on the other hand, are costs that vary with the number of products sold or the level of production, such as raw materials or hourly wages.In this case, the salaries of workers at a catered event is an example of a fixed cost. Salaries must be paid to workers whether or not an event is taking place, and the amount of the salaries is not determined by the number of events or guests. This implies that salaries are a fixed cost in this case.

Learn more about fixed cost https://brainly.com/question/3636923

#SPJ11

Little John traded his bicycle with a guy in return for the man's son's radio. No, if John's father prosecutes the man in court, he will not receive his bicycle back.

The agreement is deemed to be valid when all the elements necessary to form a binding legal contract are present. But, if any of the fundamental elements of a contract are missing, the agreement is null and invalid (or, more accurately, there is no contract).

If one party must break the law in order for the contract to be established or to be carried out, the agreement is void. Samples of contracts with prohibited clauses: a contract for the sale or distribution of illegal substances like drugs. agreements established to conduct out illegal operations.

Learn more about legal contract: https://brainly.com/question/14994055

#SPJ1

The correct statement to demonstrate the required adjusting entry is d. Debit Accounts receivable for $600. This adjusting entry is necessary to ensure that all of the completed transactions are recorded and reflected in the financial statements of I. M. Greasy, Catering as of December 31.

An adjusting entry is an entry made to accounts at the end of an accounting period to record any unrecognized transactions and events of the period. In this case, the transaction of $600 of catering services completed on December 28 needs to be recorded to show the correct revenue and accounts receivable amounts as of December 31.

The adjusting entry consists of a debit to Accounts Receivable for $600. This is because Accounts Receivable represents the amount of money owed to the company by customers for goods and services, and Catering Revenue represents the revenue from catering services provided.

Learn more about adjusting entry at:

https://brainly.com/question/13035559

#SPJ11

The statement "when a provider has market dominance, and hence can set its own prices (within reason), it is called a price taker" is false because that is called a price setter, not a price taker.

A price setter is a business or industry that has control over the market price of goods or services. This is achieved through the use of monopolistic competition, oligopoly, or a monopoly. In an oligopoly, for example, the top four firms account for 80% of the market. These businesses have considerable power over the market since their pricing and output strategies influence market conditions. The company can set its prices above those of its competitors due to its monopoly position. This will be to maximize profits by charging the highest price that consumers are willing to pay.

A price taker, on the other hand, is a firm or industry that accepts the market price determined by supply and demand forces. Small businesses and startups are more likely to be price takers since they lack market power to set prices. The market price is the going rate for a product or service. Businesses that do not have a monopoly or oligopoly position are price takers, and they must accept the market price. They have no influence over the market price since their output is minor, and they must accept the market price to be competitive.

Market dominance is when a company or group of firms controls a significant portion of the market. A company that holds a significant portion of the market may have an unfair advantage over its competitors, which can lead to a monopolistic or oligopolistic market. When a company has market power, it can charge higher prices or reduce product quality without fear of losing customers. Governments frequently take measures to promote competition and prevent businesses from dominating the market, to protect consumers from paying excessive prices.

Learn more about price setter here: https://brainly.com/question/10572004

#SPJ11

The Alexander, ages 43 and 44, each earn substantial salaries but do not participate in any type of employer-sponsored qualified retirement plan. option A) "The couple can each contribute $6,000 to a traditional IRA and take a $12,000 above-the-line deduction on their joint Form 1040" is true.

In the given scenario, Alexander, ages 43 and 44, each earn substantial salaries but do not participate in any type of employer-sponsored qualified retirement plan. The couple can each contribute $6,000 to a traditional IRA and take a $12,000 above-the-line deduction on their joint Form 1040. The above statement is true. Above-the-line deductions are those that are subtracted from your gross income before your taxable income is determined. The deduction for the contribution to the Traditional IRA is an above-the-line deduction. The couple can contribute up to $6,000 each to their traditional IRA accounts and take a $12,000 above-the-line deduction on their joint Form 1040.

For more such questions on retirement plan

https://brainly.com/question/28128413

#SPJ11

Answer:

A team is a group of individuals working together to achieve a common goal. The group of people can be small or large, and they can work together on various tasks or projects.

Explanation:

Teams are a great way to achieve goals because they bring together different perspectives, experiences, and expertise. They also offer the opportunity for people to learn from each other and collaborate on solutions.

Types of team diversity

There are different types of team diversity, which include the following:

Gender: Diversity in gender representation is essential as it promotes balance, inclusivity, and equitable distribution of work. This type of diversity enables women to feel valued and equal to their male counterparts.

Racial diversity: Racial diversity provides an opportunity for individuals from different races and ethnicities to come together and share their unique perspectives, experiences, and skills.

Cultural diversity: This type of diversity enables individuals from different backgrounds, beliefs, and cultures to share their ideas and knowledge. This type of diversity helps in promoting cross-cultural communication, cultural awareness, and global understanding.

How do they influence team functioning?

Team diversity can impact team functioning in several ways. Diverse teams can lead to improved creativity, innovation, and problem-solving skills, as each member brings a different perspective to the table. This type of diversity helps to break down stereotypes and fosters more open-mindedness amongst team members. Diversity in teams can also lead to conflicts as team members may have different opinions and perspectives. However, effective communication and conflict resolution skills can help to mitigate these issues. Overall, diversity in teams can contribute to a more inclusive and welcoming work environment, improved performance, and a greater appreciation for different viewpoints.

Learn about team diversity here:

https://brainly.com/app/ask?q=team+diversity

#SPJ11

a channel of trade. If money enables you to put off purchases until you actually want the items, it serves as just a store of value.

The potential cost of dining out equals the money being spent if cooking at home is the next-best option. Another consequences would be the experience you miss out on when you don't eat a home-cooked dinner. The value of your resources' next best use, in other words, is the opportunity cost.

In a free market, buyers and sellers bargain in the open to decide on prices rather than sellers setting them refers to the quantity of goods that producers or owners are prepared to offer at various rates at a particular moment.

To know more about purchases visit ;

https://brainly.com/question/24112214

#SPJ1

The change in the credit policy would result in an increase in incremental profit. In order to calculate the increase in incremental profit, we must calculate the cost of carrying receivables. The cost of carrying receivables is calculated as (Average Collection Period ÷ 360) × Annual Interest Rate × Receivables.

For Bulldogs Inc., the average collection period is 30 days and the annual interest rate is assumed to be 12%. The receivables are calculated by multiplying the additional sales (P300,000) by the credit period of 45 days divided by 360. Therefore, the cost of carrying receivables is calculated as:

(30 ÷ 360) × 12% × (P300,000 × (45 ÷ 360)) = P4,500.

In addition, the bad debts expense of the incremental sales would be P9,000 (3% of P300,000). Therefore, the total cost of carrying receivables and bad debts is: P13,500 (P4,500 + P9,000).

The total increase in the incremental profit is P286,500 (P300,000 - P13,500). Therefore, the change in the credit policy would result in an increase in the incremental profit of P286,500.

The average collection period is a means of assessing the effectiveness of the credit collection policy. This shows the time it takes for the enterprise to collect its debts. Credit period is a credit period that specifies the duration of time that the seller is prepared to sell the goods and services to the buyer without any interest or penalty.

Learn more about Credit policy here:

https://brainly.com/question/23988875

#SPJ11

If the government starts running a higher budget deficit, then the demand for loanable funds Decreases and the real interest rate rises. (A)

The Ricardo-Barro effect is a concept in economics that implies that government spending does not influence people's spending habits. People are forward-looking in their spending habits, according to this concept.

Because taxes will eventually have to be raised to pay off the deficit, people will save more now in anticipation of higher taxes in the future.

As a result, the impact of a budget deficit on private sector demand is totally offset by future tax expectations. As a result, the Ricardo-Barro effect is the idea that when the government incurs a deficit, it does not affect aggregate demand because the private sector saves more in anticipation of future tax increases. (A)

To know more about budget deficit click on below link:

https://brainly.com/question/29602763#

#SPJ11

the amount we must invest now at an interest rate of 8% to have $500 in the future is $396.90.Option (b) is correct.

Present Value formula is used to calculate how much an amount will be worth at some point in the future if invested now. Here, we have to find how much we must invest now in order to have $500 in the future. We have to calculate the present value of $500 which is given to us after three years. Let P be the present value that we have to calculate. The time period is three years and the interest rate is 8%.So, the present value P can be calculated using the formula:P = F / (1 + r)nWhere, F = $500r = 8% = 0.08n = 3 yearsNow, putting these values in the formula:P = 500 / (1 + 0.08)3= 500 / (1.259712)= 396.90

for more questions on investment

https://brainly.com/question/24703884

#SPJ11

1. Reasons for entries (a) through (d):

(a) 483,840: This is the total amount of manufacturing overhead applied during the year.
(b) 403,200: This is the amount of overhead that was allocated to Work in Process.
(c) 750,000: This is the amount of overhead allocated to Finished Goods.
(d) 660,000: This is the amount of overhead allocated to Cost of Goods Sold.

2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold:
Journal Entry:
Debit Credit
Cost of Goods Sold $403,200
Manufacturing Overhead $403,200

3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold:
Journal Entry:
Debit Credit
Work in Process $24,000
Finished Goods $62,000
Cost of Goods Sold $316,800
Manufacturing Overhead $403,200

You can read more about Finished Goods at https://brainly.com/question/28217513

#SPJ11

In the following question, among the conditions given, Doug should be willing to pay no more than "$5 per acre of land" in order to meet the return threshold set by the investors of Alexis Development Corp.

Doug should be willing to pay no more than $5 per acre of land in order to meet the return threshold set by the investors of Alexis Development Corp. This can be calculated by dividing the return threshold (5) by the acres of land available.
For example:
Return threshold (5) ÷ Acres of land (X) = Price per acre ($5)
X ÷ 5 = 5
X = 5 × 5
X = 25
Therefore, Doug should be willing to pay no more than $5 per acre of land in order to meet the return threshold set by the investors of Alexis Development Corp.

For more such questions on land

https://brainly.com/question/26383713

#SPJ11


a.The cost variance is -$5,000, schedule variance is -$2,000, cost performance index (CPI) is 0.8, and schedule performance index (SPI) is 0.91.

b. The project is behind schedule and over budget.

c. The estimate at completion (EAC) is $150,000 and the project is performing worse than planned.

d. It will take longer than initially planned to finished the project.

a. To calculate the Cost Variance (CV), Schedule Variance (SV), Cost Performance Index (CPI), and Schedule Performance Index (SPI) for a one-year project with the following data given:

PV=$22,000, EV = $20,000, AC= $25,000, BAC=$120,000

Cost Variance (CV) = EV - AC

CV = $20,000 - $25,000

CV = -$5,000

The negative value of CV suggests that the project is over budget.

Schedule Variance (SV) = EV - PV

SV = $20,000 - $22,000

SV = -$2,000

The negative value of SV suggests that the project is behind schedule.

Cost Performance Index (CPI) = EV / AC

CPI = $20,000 / $25,000

CPI = 0.8

The value of CPI less than one implies that the project is over budget.

Schedule Performance Index (SPI) = EV / PV

SPI = $20,000 / $22,000

SPI = 0.91

The value of SPI less than one implies that the project is behind schedule.

b. The negative value of cost variance indicated that the project is over budget. The negative value of schedule variance indicate that the project is behind schedule.

c. The formula to calculate the Estimate At Completion (EAC) using the CPI is;

EAC = BAC / CPI

CPI = 0.8

EAC = $120,000 / 0.8

EAC = $150,000

The value of EAC is greater than the BAC, which suggests that the project is performing worse than planned.

d. The formula to estimate how long it will take to finish the project using SPI is:

Estimate To Completion (ETC) = (BAC - EV) / SPI

ETC = ($120,000 - $20,000) / 0.91

ETC = $100,000 / 0.91

ETC = $109,890

The value of ETC suggests that the project will cost more and take longer than initially planned.

Learn more about Cost Variance:

https://brainly.com/question/29870536

#SPJ11