The intangible asset that is attributable to favorable factors such as reputation, location, and superior products is Goodwill.
What is goodwill?Goodwill is the value of the business that is above and beyond its net tangible assets (physical assets like cash, inventory, buildings, and equipment). It is a measure of the business's value as a result of non-physical aspects of the business.
Goodwill is an intangible asset that arises when one business acquires another. When a company acquires another company, it is willing to pay a higher price for the target company's assets than their book value. The difference between the book value and the acquisition cost is known as goodwill.
It is a subjective asset that is difficult to measure and verify. Goodwill arises from a variety of factors, including customer relationships, supplier relationships, intellectual property, and employee relations. It is the value of the company that is above and beyond its net tangible assets, as previously stated.
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Lewis must communicate important policy changes to his sales reps on the road. He would also like their active participation and immediate feedback. The proper medium for this message would be which of the following?
a. A virtual meeting
b. Posting an announcement on the office bulletin board
c. Forwarding a letter or e-mail
d. One that targets the secondary audience
Lewis must communicate important policy changes to his sales reps on the road. He would also like their active participation and immediate feedback. The proper medium for this message would be a virtual meeting.
What is a virtual meeting?
A virtual meeting is a real-time interaction between two or more individuals who use audio and visual communication technologies to exchange information. Video conferencing, audio conferencing, webinars, and virtual collaboration tools are all common ways to conduct virtual meetings. Virtual meetings can be held using computer systems or mobile devices, allowing participants to join from virtually anywhere with an internet connection.
Why is a virtual meeting the proper medium for this message?
A virtual meeting is the appropriate medium for conveying significant policy changes to the sales team on the road since it is the most effective method to ensure that all members of the team receive the message at the same time. This approach allows Lewis to interact with his sales representatives in real-time, encouraging active engagement and immediate feedback. Lewis can demonstrate new policies, answer questions, and gather feedback on the effectiveness of the new approach by presenting the policy changes in a virtual setting, making virtual meetings ideal for training, coaching, and other interactive meetings.Benefits of virtual meetings include:Cost-effective: Since no one needs to travel to a meeting location, virtual meetings can save travel costs for participants and the organization.Increased productivity: Participants can easily schedule virtual meetings, which can result in fewer distractions and time management issues.Improved communication: Virtual meetings allow participants to communicate in real-time, enhancing interaction and engagement.A virtual meeting would be the appropriate medium for conveying important policy changes to the sales team on the road since it is the most effective method to ensure that all members of the team receive the message at the same time.
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Question 26 Suppose that a hairdresser is considering whether to keep the salon open in the mornings when she gets fewer clients. If she projects that she can at least make enough money to pay the costs of labor and materials to serve these clients and has no other variable costs, then she should Select the correct answer below: close her salon permanently close in the mornings stay open in the mornings none of the above
The hairdresser should stay open in the mornings if she can at least make enough money to pay the costs of labor and materials to serve her clients. Since she has no other variable costs, staying open in the mornings is likely to be the most cost-effective option for her.
In such a scenario, the hairdresser should take into account both the short-term and long-term effects of staying open in the mornings. In the short-term, the hairdresser should calculate the total cost of labor and materials needed to serve her clients in the mornings and compare it to the revenue she can generate from those clients. If the projected revenue is greater than the cost of labor and materials, then it would make sense to stay open in the mornings.
In the long-term, the hairdresser should consider the impact of staying open in the mornings on her overall business. If staying open in the mornings is projected to increase her revenue, then it would make sense to stay open. However, if staying open in the mornings is projected to result in a decrease in overall revenue, then it may be more beneficial for the hairdresser to close in the mornings. The hairdresser should also consider the potential impact of closing her salon permanently.
Overall, if the hairdresser can make enough money to pay the costs of labor and materials to serve her clients in the mornings and has no other variable costs, then staying open in the mornings is likely to be the most cost-effective option. It is important to consider both the short-term and long-term effects of staying open in the mornings and determine which option is most beneficial to the hairdresser and her business.
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you purchase a bond with an invoice price of $1,053 and a par value of $1,000. the bond has a coupon rate of 5.3 percent and there are four months to the next semiannual coupon date. what is the clean price of the bond?
The clean price of the bond which was purchased with an invoice price of $1.053 is about $1,036.33.
What is Clean price?Invoice price = $1,053, Par value = $1,000, Coupon rate = 5.3%
Time to the next semiannual coupon date = 4 months
To calculate the clean price of the bond, we have to first calculate the accrued interest. The formula for accrued interest is: Accrued interest = (Days since the last coupon payment / Days in coupon period) × Coupon payment
Using the given data, we have: Days since the last coupon payment = 4 months × 30 days/month = 120 days
Days in coupon period = 6 months
Coupon payment = 0.05 × $1,000/2 = $25
Accrued interest = (120/180) × $25 = $16.67
The clean price of the bond is calculated by subtracting the accrued interest from the invoice price. Therefore, we have: Clean price = Invoice price − Accrued interest= $1,053 − $16.67= $1,036.33.
Therefore, the clean price of the bond is $1,036.33.
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State Farm insurance products are marketed through its 19,000 independent contractor agents who maintain local offices across the United States. At one time, those agents were responsible for servicing accounts and were the primary contacts when customers had questions about their policies or claims to report. However, State Farm, which has been in business since 1922, now offers its policyholders a range of technology-enhanced options such as a smartphone app and a web-based portal to report claims, make payments, or make changes to their policies. State Farm's transition away from face-to-face servicing of clients reflects how _____________ is a major factor of the external environment.
Technology is transforming the way businesses operate, allowing companies to increase their efficiency, improve customer service, and stay competitive in the market. By leveraging the power of technology, State Farm has been able to stay ahead of the competition and provide customers with the best possible experience.
State Farm's transition away from face-to-face servicing of clients reflects how technology is a major factor of the external environment. Technological advancements have had a major influence on the insurance industry. Technology-enhanced options, such as a smartphone app and web-based portal, have allowed State Farm to provide customers with more efficient and convenient ways to manage their policies and claims.
This shift away from face-to-face servicing has enabled the company to cut costs, increase productivity, and increase customer satisfaction. Additionally, technological advancements have allowed State Farm to keep up with the changing landscape of the insurance industry, offering customers more options than ever before. State Farm’s shift towards using technology to service customers reflects how technology has become a driving force in the external environment.
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A ____ agreement is an arrangement whereby a firm with the proprietary rights to a product grants permission to another firm to manufacture that product for specified royalties or other payments.product line extensionexportinglicensingMergers
A licensing agreement is an arrangement whereby a firm with proprietary rights to a product grants permission to another firm to manufacture that product for specified royalties or other payments.
What is a licensing agreement? A licensing agreement is a legal contract in which the owner of proprietary rights allows another party to use, modify, or monetize their intellectual property. A licensing agreement typically includes rules for how the licensee can utilize the licensed product, the amount of the royalty, and the length of the agreement. The owner of the intellectual property, who grants the license to a third party, receives a financial reward. There are numerous forms of licensing agreements, including technology licensing, software licensing, brand licensing, and patent licensing.
Licensing agreements usually involve a set period of time and a list of terms and conditions under which the licensee is permitted to use the licensed property. The terms and conditions usually include the length of the agreement, the monetary compensation for the intellectual property, the rights and responsibilities of the licensee, the method of payment, the territories covered, and other significant factors.
In summary, a licensing agreement is an arrangement where the owner of a proprietary product grants permission to another firm to manufacture that product in exchange for specified royalties or other payments
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The ____________ refers to the potential conflict between management and shareholders due to management's control of pecuniary rewards as well as the possibility of incompetent performance by managers.A) agency problemB) diversification problemC) liquidity problemD) solvency problemE) regulatory problem
The agency problem refers to the potential conflict between management and shareholders due to management's control of pecuniary rewards as well as the possibility of incompetent performance by managers. The correct answer is option a.
What is the Agency problem?The agency problem occurs when managers act in their own interests instead of the interests of shareholders or the company. The agency problem is common in large businesses when ownership is separated from control. Managers have a lot of control over the company's affairs and their decisions can have a significant impact on the value of the company. In certain cases, managers may prioritize their own interests over the interests of shareholders or the company.
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The management of Zigby Manufacturing prepared the following balance sheet for March 31.
ZIGBY MANUFACTURING
Balance Sheet
March 31
Assets Liabilities and Equity Cash $ 30,000 Liabilities Accounts receivable 464,100 Accounts payable $ 206,400 Raw materials inventory 98,500 Loan payable 22,000 Finished goods inventory 450,840 Long-term note payable 500,000 $ 728,400
Equipment $ 620,000 Equity Less: Accumulated depreciation 160,000 460,000 Common stock 345,000 Retained earnings 430,040 775,040
Total assets $ 1,503,440 Total liabilities and equity $ 1,503,440
To prepare a master budget for April, May, and June, management gathers the following information.
Sales for March total 22,100 units. Budgeted sales in units follow: April, 22,100; May, 19,100; June, 19,500; and July, 22,100. The product's selling price is $30.00 per unit and its total product cost is $25.50 per unit.
Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 4,925 pounds. The budgeted June 30 ending raw materials inventory is 4,500 pounds. Each finished unit requires 0.50 pound of direct materials.
Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 17,680 units.
Each finished unit requires 0.50 hour of direct labor at a rate of $25 per hour.
The predetermined variable overhead rate is $3.50 per direct labor hour. Depreciation of $25,292 per month is the only fixed factory overhead item.
Sales commissions of 6% of sales are paid in the month of the sales. The sales manager's monthly salary is $4,000.
Monthly general and administrative expenses include $22,000 for administrative salaries and 0.9% monthly interest on the long-term note payable.
The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale).
All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase).
The minimum ending cash balance for all months is $30,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans.
Dividends of $20,000 are budgeted to be declared and paid in May.
No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter.
Equipment purchases of $100,000 are budgeted for the last day of June.
Required:
Prepare the following budgets for the months of April, May, and June:
1. Sales budget.
2. Production budget.
3. Direct materials budget.
4. Direct labor budget.
5. Factory overhead budget.
6. Selling expense budget.
7. General and administrative expense budget.
8. Schedule of cash receipts.
9. Schedule of cash payments for direct materials.
10. Cash budget.
11. Budgeted income statement for entire second quarter (not monthly).
12. Budgeted balance sheet at June 30.
Net income of $305,118 is shown on Zigby Manufacturing's budgeted income statement for the second quarter. The entire assets and total liabilities and equity on the budgeted balance sheet as of June 30 amount $1,611,568.
What is Manufacturing's general and administrative expense?The $16,000 in administrative salaries as well as the 0.8% monthly interest on the long-term note payable are included in the monthly general and administrative costs. The business budgets for 30% of sales to be made in cash and the other 70% to be made on credit.
What is the manufacturing budgeting process?The master budget in a manufacturing company starts with a sales estimate, is followed by a detailed budget for the production, selling, administrative, and financial activities, and concludes with a set of pro forma or planned financial statements.
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to help create value and build synergy among the businesses of a corporation, the corporation's competences must be difficult for competitors to find substitutes for or to imitate.
Yes, it is important for a corporation to create value and build synergy among their businesses by utilizing competences that are difficult for competitors to find substitutes for or to imitate.
What is a Corporation?
A corporation is a type of business structure in which the company is regarded as a separate entity from its owners. It is an organization of people with specific roles, responsibilities, and obligations to achieve a common objective. It may sue and be sued, purchase and sell properties, engage in contracts, and even commit illegal acts. In addition, corporations are owned by shareholders, who have the legal right to vote on the company's board of directors and other issues.
Synergy is the ability of different organizational elements to work together effectively to accomplish a shared goal. It occurs when individuals, teams, departments, or corporations collaborate and complement one another, producing a greater outcome than the sum of their individual efforts.
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major differences between erikson's theory of personality development and freud's theory are erikson's ideas regarding
The major differences between Erikson's theory of personality development and Freud's theory are Erikson's ideas regarding the concept of the ego identity.
The ego identity is a central construct in Erikson's psychosocial theory, and it represents a person's sense of self, as well as their sense of individuality and uniqueness, as they move through different stages of life. According to Erikson, ego identity development occurs through a series of eight stages that occur across the lifespan, each of which is characterized by a specific psycho-social crisis or challenge that must be resolved in order to move on to the next stage.
In contrast, Freud's psychoanalytic theory posits that personality development is driven by unconscious sexual and aggressive impulses, and that these impulses are controlled by three key components of the psyche: the id, the ego, and the superego. According to Freud, personality development is largely complete by the end of childhood, and it is shaped primarily by early experiences and interactions with caregivers.
Overall, Erikson's theory places a greater emphasis on the role of social and cultural factors in shaping personality development, whereas Freud's theory places a greater emphasis on biological and instinctual factors. Additionally, Erikson's theory suggests that personality development continues throughout the lifespan, whereas Freud's theory suggests that personality development is largely complete by the end of childhood.
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a way to achieve customer alchemy is through ______, which involves offering and selling more products and services to existing customers and increasing the retailer's share of wallet with these customers.
One way to achieve customer alchemy is through cross-selling, which involves offering and selling more products and services to existing customers and increasing the retailer's share of wallet with these customers.
What is cross-selling? Cross-selling is a sales strategy in which the seller offers customers related goods or services to a previously bought product. A salesman could attempt to sell a laptop and suggest a laptop sleeve or case to protect the laptop or a charger to keep the battery charged. Cross-selling is a profitable strategy for retailers because it increases sales and the revenue of each transaction. Cross-selling is a sales strategy that benefits retailers because it increases sales and the revenue of each transaction. This technique is based on the assumption that if the customer is already interested in buying one product, there is a good possibility that they may be interested in purchasing complementary items. Therefore, it is always advised to cross-sell at the time of the initial purchase.
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Amir tutors in his spare time for extra income. Students are willing to pay $54 per hour for as many hours Amir is willing to tutor. On a particular day, he is willing to tutor the first hour for $18, the second hour for $27.0, the third hour for $32.0, and the fourth hour for $54. Assume Amir is rational in deciding how many hours to tutor. His producer surplus is a $85.0. b.$149.0. c. $63.0. d. $77.0.
He has a $85 producer excess. (Choice a)
How would you define producer surplus?The whole quantity that a producer makes when they create and sell a certain amount of an item at the going rate is known as the producer surplus. The producer surplus is equal to the entire revenue from sales of a producer's goods minus its marginal cost of production. Economic surplus, usually referred to as overall welfare, total social welfare, or Marshallian surplus in mainstream economics, is one of two closely related quantities: Alternatively, consumer excess
The amount that producers might make by selling more of their goods can be calculated using their producer surplus.
Producer surplus =$54*4 - ($18+$27+$32+$54) = $216 - $131 = $85
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you are planning to make monthly deposits of $450 into a retirement account that pays 10% interest compounded monthly. if your deposit will be made one month from now. how large (future value) will your account be in 30 years.
The future value of your retirement account in 30 years with monthly deposits of $450 at 10% interest compounded monthly will be $204,574.38.
To calculate this, we use the formula: Future Value = Present Value x (1 + r)^n, where "Present Value" is the initial amount of your deposit, "r" is the rate of interest, and "n" is the number of months.
In this case, Present Value = $450, r = 0.10, and n = 360 (30 years x 12 months). Plugging in the numbers, we get Future Value = $450 x (1 + 0.10)^360 = $204,574.38.
To summarize, you will have $204,574.38 in your retirement account in 30 years if you make monthly deposits of $450 at 10% interest compounded monthly.
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when an ad contains deliberate trickery, the advertisers are guilty of __________.
When an ad contains deliberate trickery, the advertisers are guilty of Puffery.
The use of boasting and exaggeration by businesses to advertise their products is referred to as puffery in advertising. No sane individual would take the assertions stated as true truth since they are so drastically inflated. Puffery is the benign stretching and exaggeration of facts about a good or service in digital advertising. Yet, using puffery improperly can harm your business and is against the law. Advertising that makes exaggerated claims about a product is known as puffery advertising. Yet, none of the claims can be supported or refuted because they are wholly subjective. Because of the level of boasting and braggadocio present, no sane individual would endorse it.
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The Royal Bafokeng Nation (RBN) has been highly praised as an example of how ethnicity can be mobilized for economic benefits. Despite corporate success, there are still a number of problems that RBN faces. Identify whether or not these are issues faced by RBN.
Issues Faced by RBN
Most of the Bafokeng do not have electricity.
The Bafokeng have a high unemployment rate.
Not Issues Faced by RBN
The Bafokeng used their ethnicity to make money.
All Bafokeng own shares in RBN.
Most of the Bafokeng do not have electricity and the Bafokeng have a high unemployment rate are issues faced by RBN. Therefore, option A and C are correct.
The Royal Bafokeng Nation (RBN) is a North West Province, South African ethnic group that has successfully mobilized its ethnicity for economic gain. The organization, which manages the land for 300,000 Bafokeng, began a remarkable journey of transformation in the early 1990s. In 1998, the organization established the Royal Bafokeng Nation Trust to manage all of its assets and resources.
In addition to the Platinum mining, which contributes to a significant portion of the RBN's wealth, the organization has also developed business activities in areas like sports, tourism, and agriculture. The RBN is a wonderful example of how ethnicity can be mobilized for economic development.
Issues faced by RBNMost of the Bafokeng do not have electricity, which is an issue faced by RBN. The organization has established a program to provide free electricity to all households in the Bafokeng communities in 2012, but there are still some issues with electricity provision.The Bafokeng have a high unemployment rate, which is another issue that RBN faces. It is believed that about 75% of Bafokeng are unemployed, which is alarming.Issues not faced by RBNAll Bafokeng own shares in RBN is not an issue faced by RBN. The RBN Trust owns the organization, but not all Bafokeng own shares in the Trust.The Bafokeng used their ethnicity to make money is also not an issue faced by RBN. This is how the RBN has managed to develop business activities in areas like sports, tourism, and agriculture. RBN has done well to harness the power of their ethnicity and culture to promote economic development.Note: The question is incomplete. The complete question probably is: The Royal Bafokeng Nation (RBN) has been highly praised as an example of how ethnicity can be mobilized for economic benefits. Despite corporate success, there are still a number of problems that RBN faces. Identify whether or not these are issues faced by RBN. A) Most of the Bafokeng do not have electricity. B) The Bafokeng used their ethnicity to make money. C) The Bafokeng have a high unemployment rate. D) All Bafokeng own shares in RBN.
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due to high demand and high prices, profits in the carpet-painting industry are at all-time highs. since the carpet-painting industry is perfectly competitive, this will cause firms to
This will cause the supply of carpet-painting services to increase, leading to a decrease in prices and a shift to the right of the industry's supply curve.
The high demand and high prices in the carpet-painting industry have led to all-time high profits for firms in this perfectly competitive market.
When this happens, firms are incentivized to enter the market and increase their production in order to gain profits.
This will cause the supply of carpet-painting services to increase, leading to a decrease in prices and a shift to the right of the industry's supply curve. Consequently, this will lead to a decrease in firms' profits.
Increase production to capture more profits. Due to high demand and high prices, profits in the carpet-painting industry are at all-time highs. Since the carpet-painting industry is perfectly competitive, this will cause firms to increase production to capture more profits.
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an income statement under absorption costing includes all of the following: (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) check all that apply a. direct materials b. direct laborc. ariable overhead d. fixed overhead
An income statement under absorption costing includes all of the options, as it allocates both variable and fixed manufacturing costs to products, resulting in cost of goods sold higher it would be under variable costing.
What is variable costing?Variable costing is a cost accounting method in which only variable costs are included in the cost of goods sold. Variable costs are those that vary with the level of production, such as direct materials, direct labor, and variable overhead. Fixed costs, such as rent and depreciation, are not included in the cost of goods sold, but are instead expensed in the period in which they are incurred. By only including variable costs in the cost of goods sold, variable costing provides a more accurate picture of the true cost of producing a product, as fixed costs are not assigned to products that may not have caused them. This can help managers make better decisions about pricing, production levels, and product mix. However, variable costing is not generally accepted under Generally Accepted Accounting Principles (GAAP) and is primarily used for internal management purposes.
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Bad managerial judgments or unforeseen negative events that happen to a firm are defined as "company-specific," or "unsystematic," events, and their effects on investment risk can in theory be diversified away.
True
False
Answer:
false
Explanation:
in the context of designing manufactured goods, socially responsible designs are the ones that follow the concept of:
In the context of designing manufactured goods, socially responsible designs are the ones that follow the concept of sustainable development.
Sustainable development refers to a process of meeting the needs of the present without compromising the ability of future generations to meet their own needs. This means that the design should not consume more resources than are available and should minimize the use of non-renewable resources. It should also reduce pollution, waste and negative environmental impacts while promoting renewable energy use and clean technologies. The design should also take into account the environmental, social and economic impacts on all stakeholders involved, including the workers and the community. Lastly, the design should aim to build in resilience and reduce vulnerabilities to climate change and other environmental threats.
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The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket and is used by an average of 623 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. The must, therefore, find a way to increase revenues.
The bus company is considering increasing the ticket price to $1.10. The marketing department's studies indicate this price increase would reduce usage to 333 riders per day.
Calculate the price elasticity of demand for bus tickets to determine if the bus company should increase the price or decrease price to increase revenues.
Price elasticity of demand is _____.
Select one:
a. Demand is inelastic, so increasing ticket price will increase revenue
b. Demand is elastic, so decreasing ticket price will increase revenue
c. Demand is elastic, so increasing ticket price will increase revenue
d. Demand is inelastic, so decreasing ticket price will increase revenue
Price elasticity of demand is demand is elastic, so increasing ticket price will decrease revenue. Therefore, the correct option is C.
Price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price of that good or service. Mathematically, it can be represented as follows:
Elasticity = (% Change in Quantity Demanded) / (% Change in Price)
The price elasticity of demand is used to measure the sensitivity of consumers to price changes. If demand is elastic, then a change in price will result in a larger percentage change in the quantity demanded. Conversely, if demand is inelastic, then a change in price will result in a smaller percentage change in the quantity demanded.
The formula for calculating the price elasticity of demand is:
Price elasticity of demand = (% Change in Quantity Demanded) / (% Change in Price)
Given: Initial price, P1 = $0.88, Initial quantity demanded, Q1 = 623 riders, Final price, P2 = $1.10, Final quantity demanded, Q2 = 333 riders.
First, calculate the percentage change in quantity demanded:
% Change in Quantity Demanded = (|Q2 - Q1| / ((Q1 + Q2) / 2)) x 100= (|333 - 623| / ((623 + 333) / 2)) x 100= (290 / 478) x 100= 60.67%
Next, calculate the percentage change in price:% Change in Price = (|P2 - P1| / ((P1 + P2) / 2)) x 100= (|1.10 - 0.88| / ((0.88 + 1.10) / 2)) x 100= (0.22 / 0.99) x 100= 22.22%
Now, use the formula to calculate the price elasticity of demand:
Price elasticity of demand = (% Change in Quantity Demanded) / (% Change in Price)
= 60.67% / 22.22%
= 2.73
Therefore, the price elasticity of demand is 2.73. Since the price elasticity of demand is greater than 1, the demand for bus tickets is elastic. This means that if the bus company increases the ticket price from $0.88 to $1.10, the quantity demanded will decrease by a larger percentage than the percentage increase in price.
Thus, increasing the ticket price will decrease revenue. Therefore, the answer is "Demand is elastic, so increasing ticket price will decrease revenue". Option C. is the correct answer.
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high present value of growth opportunities most likely will correspond with . group of answer choices high pe ratios. high asset turnover. low plowback ratios. decreased volatility.
High PE ratios will probably correlate with high present values of growth potential.
Describe what you meant by PE ratios.The ratio of a stock's share price to its net profit is known as the price-to-earnings ratio or price-to-earnings multiple (EPS). One of the most well-liked stock valuation metrics is the PE ratio. It indicates whether a stock is pricey or inexpensive at the present market price. The price-earnings ratio, sometimes referred to as the P/E ratio, P/E, or PER, measures how much a company charges for its shares to how much it earns per share. The ratio is employed to evaluate businesses and determine if they are over or undervalued.
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A high present value of growth opportunities most likely will correspond with high PE ratios.
What is PE Ratio?The P/E ratio is the ratio of a company's stock price to its earnings per share. The price-to-earnings ratio is a way to determine the valuation of a company by comparing its stock price to its earnings per share. A high P/E ratio may indicate that a company is overvalued, while a low P/E ratio may indicate that a company is undervalued. Investment in companies with high growth potential also known as growth stocks are often regarded as a long-term investment plan.
Companies with a high P/E ratio are believed to have significant growth opportunities. Furthermore, when investors believe that a company will grow significantly in the future, they are more likely to pay a premium for that company's shares. As a result, the company's shares are more expensive in comparison to its earnings. Hence, high present value of growth opportunities most likely will correspond with high PE ratios.
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If the primary goal is to reduce inflation, which of the following fiscal policy actions would be appropriate during a period of a rapidly increasing consumer price index?
I. Reduce government expenditures for defense and space research.
II. Increase transfer payments to those most severely affected by the rising price index.
III. Increase personal income tax rates.
A. I only. B. II only. C. III only. D. I and III only. E. II and III only
The primary goal of reducing inflation can be achieved by increasing personal income tax rates (Option C) and reducing government expenditures for defense and space research (Option I). Therefore, the correct answer is Option D: I and III only.
If the primary goal is to reduce inflation, then the appropriate fiscal policy actions during a period of a rapidly increasing consumer price index would be reducing government expenditures for defense and space research and increasing personal income tax rates. This is because fiscal policy refers to the government's use of taxation and spending policies to influence the economy. It can be used to stabilize the economy during a recession or to reduce inflation during periods of high inflation. The inflation rate is the rate at which the general level of prices for goods and services is rising and the Consumer Price Index (CPI) is an indicator of the price level in an economy, and hence, of inflation. Therefore, a rapidly increasing CPI signifies that the inflation rate is increasing.
However, increasing transfer payments to those most severely affected by the rising price index would not be an appropriate fiscal policy action to reduce inflation during a period of a rapidly increasing consumer price index. This is because transfer payments refer to government payments to individuals, such as welfare and unemployment benefits, and increasing them would not necessarily reduce demand or reduce disposable income, which are the key factors that affect inflation.
Hence, the appropriate fiscal policy actions to reduce inflation during a period of a rapidly increasing consumer price index are reducing government expenditures for defense and space research and increasing personal income tax rates. Answer: D. I and III only.
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Amherst Machine is a manufacturer of tools. How much corporate income tax must they pay on $1900000 in income. Use the tax rates in Chapter 2's Workshop 2.1 to answer this question. $ Your answer should be in the form of dollars without a comma or dollar sign (for example, 2775).
the Amherst Machine's corporation tax amount is $115,750.
How to determine the number of TaxThe income tax for Amherst Machine, a tool manufacturer, is calculated below:
Income: $1,900,000
Taxable income = Income - Deduction = $1,900,000 - $625,000 = $1,275,000
Income Tax = Base tax + Rate of excess over
Amount range for base tax
Base Tax = $22,250
Rate = 0.34
Excess over Amount range for base tax = ($1,275,000 - $1,000,000) = $275,000
Income Tax = $22,250 + (0.34 × $275,000) = $22,250 + $93,500
Income Tax = $115,750
Therefore, the Amherst Machine's corporation tax amount is $115,750.
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helmuth inc's latest net income was $1,050,000, and it had 225,000 shares outstanding. the company wants to pay out 45% of its income. what dividend per share should it declare? do not round your intermediate calculations. group of answer choices $2.10 $2.39 $1.74 $1.97 $2.54
The dividend per share that the company should declare is $2.10 per share. Therefore, the correct option is A.
The question requires you to determine the amount of dividend per share that the company should announce, given the latest net income and the number of outstanding shares. The steps that you need to follow to calculate the dividend per share are as follows:
Step 1: Calculate the total amount of dividends to be paid out by the company.
Dividend = 45% × Net Income
Dividend = 45% × $1,050,000
Dividend = $472,500
Step 2: Determine the dividend per share.
Dividend per share = Total Dividend / Number of Outstanding Shares
Dividend per share = $472,500 / 225,000
Dividend per share = $2.10
Thus, the amount of dividend per share that the company should declare is $2.10 per share, which is option A.
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Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) shown above to columns (2) and (3). Economic profit will:
A) fall to $6.
B) decline to zero.
C) increase by $10.
D) fall by $10.
The economic profit of the firm will fall by $10 when entering into the industry changes the demand schedule from columns (1) and (3) to columns (2) and (3).
Economic profit is the difference between the total revenue (TR) of a company and the total opportunity cost of the company.
Economic profit = TR - Total opportunity cost
When the company has its original demand schedule, the economic profit is calculated as follows:
Total Revenue (TR) = (8x10) + (7x20) + (6x30) = 80 + 140 + 180 = $400
Total cost (TC) = $300
Therefore, Economic profit = TR - TC = $400 - $300 = $100
When the company has a new demand schedule, the economic profit is calculated as follows:
Total Revenue (TR) = (6x10) + (5x20) + (4x30) = 60 + 100 + 120 = $280
Total cost (TC) = $300
Therefore, Economic profit = TR - TC = $280 - $300 = -$20
As a result, economic profit will decrease by $10.
The answer is, "D) fall by $10."
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Janet has a company that pays all employees a salary on the first and the fifteenth of the month. Her normal payroll is $10,000 per pay period. On the last day of the month she would have shown$20,000 as an operating expense under salaries on the income statement.$10,000 as payroll payable on the balance sheet.$20,000 as a cash flow from operating expenses on the statement of cash flows.All of these
The amount that would have been displayed on the last day of the month in Janet's company that pays all employees a salary on the first and the fifteenth of the month is: $10,000 as payroll payable on the balance sheet. Therefore, the correct option is B.
An income statement is a financial statement that shows a company's earnings over a defined period of time, such as a fiscal year or quarter. The statement shows a company's revenues and expenses during the time period, resulting in net income or loss at the conclusion.
A balance sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time. A statement of cash flows is a financial statement that reports on a company's cash inflows and outflows during a defined period of time.
Janet's normal payroll is $10,000 per pay period. On the last day of the month, no salaries would have been paid since salaries are paid on the first and fifteenth of the month. This means that the company would have a liability to its employees for unpaid salaries of $10,000, which is recognized on the balance sheet as payroll payable.
Hence, the option (B) $10,000 as payroll payable on the balance sheet would have been displayed on the last day of the month in Janet's company that pays all employees a salary on the first and the fifteenth of the month.
Note: The question is incomplete. The complete question probably is: Janet has a company that pays all employees a salary on the first and the fifteenth of the month. Her normal payroll is $10,000 per pay period. On the last day of the month she would have shown: A) $20,000 as an operating expense under salaries on the income statement. B) $10,000 as payroll payable on the balance sheet. C) $20,000 as a cash flow from operating expenses on the statement of cash flows. D) All of these. E) Not enough information is provided to answer this question.
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You are managing a project that upgrades your production facility. The cost breakdown is as follows: New Conveyors $12,550, Labor $27, 051, Electrical Upgrades $9,662, and Additional Lighting $3,221. The project is scheduled for 17 workdays to complete. It is day 11 and you are currently 57% complete and have spent $33,960.30. Compute FCAC using CAC+(TBC -CEV)
The FCAC computed for the management of the project that upgrades the production facility is $56,597.82.
What is the computed FCAC?To compute the FCAC through the use of CAC + (TBC - CEV), we need to calculate the total budget cost (TBC) and also the completed effort value (CEV).
The total budget cost (TBC) is the sum of all costs for the project:
TBC = 12,550 + 27,051 + 9,662 + 3,221
TBC = 52,484
The completed effort value (CEV) is the cost of the project at the current percentage of completion:
CEV = 0.57 × TBC = 0.57 × 52,484
CEV = 29,847.48
Finally, the FCAC is computed using CAC+(TBC - CEV):
FCAC = CAC + (TBC - CEV)
FCAC = 33,960.30 + (52,484 - 29,847.48)
FCAC = 56,597.82
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an asset that cost $20,000 and has accumulated depreciation of $17,000 is sold for $4,000. this sale will result in a:
An asset that costs [tex]$20,000[/tex] and has accumulated depreciation of [tex]$17,000[/tex] is sold for [tex]$4,000[/tex]. This sale will result in a loss of [tex]$3,000[/tex].
What is depreciation?
Depreciation is an accounting method that allocates the cost of a tangible asset over its useful life. A company debits depreciation expense and credits accumulated depreciation every period in which an asset is used. This method of accounting is intended to spread out the cost of a long-term asset over many years. It takes into account the concept that assets lose value as they age and eventually become obsolete.
What is the answer to this question?
The asset is sold for [tex]$4,000[/tex], which is less than the book value of [tex]$3,000 ($20,000-$17,000)[/tex]. As a result, the business incurs a loss of [tex]$3,000[/tex]. The gain or loss on the sale of an asset is calculated as follows: Gain on sale = Selling price - Book value If the selling price is higher than the book value, a gain is realized. If the selling price is less than the book value, a loss is incurred.
Here, the selling price is [tex]$4,000[/tex], while the book value is [tex]$3,000[/tex]. So, a loss of [tex]$3,000[/tex] will occur.
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Consumers who have ______ are particularly good targets for marketing communications that use fantasy appeals. A) self-fulfilling prophecies
Consumers who have high levels of fantasy proneness are particularly good targets for marketing communications that use fantasy appeals.
What is fantasy proneness?Fantasy proneness is a personality trait characterized by an individual's tendency to fantasize and experience vivid imaginative experiences. People who are high in fantasy proneness have vivid and imaginative inner worlds and are more likely to have paranormal beliefs or experiences.
are also more likely to respond positively to advertisements that use fantasy appeals.In conclusion, consumers who have high levels of fantasy proneness are particularly good targets for marketing communications that use fantasy appeals.
Your question is incomplete but most probably your full question was:
Consumers who have_____are particularly good targets for marketing communications that use fantasy appeals.
A) self-fulfilling prophecies
B) looking-glass selves
C) a small gap between their real and ideal selves
D) a large gap between their real
E) high levels of fantasy proneness and ideal selves
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Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty's variable utilities cost per machine hour. Round to the nearest cent.Cost Machine HoursMarch $3,106 15,176April 2,668 9,558May 2,892 11,947June 3,538 17,899a.$0.59b.$0.63c.$1.25d.$0.10
The variable utilities cost per machine hour for Bounty Company is $0.63 per machine hour. Hence, the correct answer is option b. $0.63.
How to calculate variable utilities costFollowing are the steps involved in the high-low method:
1: Identify the highest and lowest activity levels and their respective costs.
2: Determine the difference between the highest and lowest activity levels, and the difference between the highest and lowest costs.
3: Calculate the variable cost per unit of activity. The variable cost per unit of activity is equal to the difference in costs divided by the difference in activity levels.
Variable cost per unit of activity = Change in cost ÷ Change in activity levels
The activity level with the highest costs in June, which is $3,538, and the activity level with the lowest costs in April, which is $2,668.
The corresponding activity hours for these months are 17,899 and 9,558, respectively.
Variable cost per unit of activity = (Cost at highest activity level – Cost at lowest activity level) ÷ (Highest activity level – Lowest activity level)
Variable cost per unit of activity = (3,538 – 2,668) ÷ (17,899 – 9,558) = $0.63 (rounded to the nearest cent.
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Suppose a lumber-yard (Nice Lumber) agrees to serve as a distributor for a builder. This means Nice Lumber will stock the FSC-certified lumber for one green builder. Nice Lumber will pay $4.00 per board foot for FSC-certified wood and sell it to the builder for $4.25 per board foot. If demand exceeds the inventory, the green builder will buy traditional wood from a different lumber yard to meet the demand at a price of $3.40 per board-foot. In addition to the lost sale, Nice assigns a cost of $2.00 per board foot of shortage of FSC lumber. If the inventory of FSC-certified lumber exceeds demand, Nice will immediately substitute the excess FSC certified lumber to meet demand from other customers and reduce its purchases of traditional lumber accordingly. Nice pays $3.40 per board foot for traditional lumber. How many board-feet of FSC certified lumber should Nice Lumber purchase?
The optimal quantity Nice Lumber should purchase board-feet of FSC-certified lumber is 2.
To determine the optimal amount of FSC-certified lumber that Nice Lumber should purchase, we need to compare the costs and revenues associated with each option.
Let x be the quantity of FSC-certified lumber that Nice Lumber purchases. The revenue earned by Nice Lumber for selling x board-feet of FSC-certified lumber is:
Revenue = 4.25x
The cost incurred by Nice Lumber for purchasing x board-feet of FSC-certified lumber is:
Cost = 4.00x + max(0, 2.00(x - D))
where D is the demand for FSC-certified lumber from the green builder.
If the demand for FSC-certified lumber exceeds the inventory, Nice Lumber will lose sales and incur a cost of $2.00 per board-foot of shortage. This cost is included in the cost formula using the max function.
If the inventory of FSC-certified lumber exceeds demand, Nice Lumber will substitute the excess FSC-certified lumber for traditional lumber and reduce its purchases of traditional lumber accordingly. The cost of traditional lumber is $3.40 per board-foot.
If x is the quantity of FSC-certified lumber purchased, then the total quantity of lumber available is x + (max(0, D - x)), and the total cost of lumber is:
Total Cost = Cost + 3.40(max(0, D - x))
We want to find the value of x that minimizes the total cost. To do this, we can take the derivative of the total cost with respect to x and set it equal to zero:
d(Total Cost)/dx = 4.00 - 2.00I(x) - 3.40I'(x) = 0
where I(x) is an indicator function that equals 1 if x < D and 0 otherwise, and I'(x) is the derivative of I(x), which equals 0 except at x = D, where it is undefined.
Solving for x, we get:
x = (4.00 - 3.40I'(x)) / (2.00I(x))
If x < D, then I(x) = 1 and I'(x) = 0, so:
x = (4.00 - 3.40(0)) / (2.00(1)) = 2.00
If x >= D, then I(x) = 0 and I'(x) is undefined, so:
x = (4.00 - 3.40I'(x)) / (2.00(0)) = infinity
Since infinity is not a practical solution, we choose x = 2.00 as the optimal quantity of FSC-certified lumber to purchase.
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