Denton Company manufactures and sells a single product. Cost data for the product are given below:
Variable costs per unit:
Direct materials $5
Direct labor 11
Variable manufacturing overhead 3
Variable selling and administrative 1
Total variable cost per unit $20
Fixed costs per month:
Fixed manufacturing overhead $120,000
Fixed selling and administrative 169,000
Total fixed cost per month $289,000
The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, are as follows:
Units Produced Units Sold
July 27,000 23,000
August 27,000 31,000
The companyâs Accounting Department has prepared absorption costing income statements for July and August as presented below:
July August
Sales $1,196,000 $1,612,000
Cost of goods sold 483,000 651,000
Gross margin 713,000 961,000
Selling and administrative expenses 241,000 265,000
Net operating income $472,000 $696,000
Required:
1. Determine the unit product cost under absorption costing and variable costing.
2. Prepare contribution format variable costing income statements for July and August.
3. Reconcile the variable costing and absorption costing net operating income.
Answers
Answer:
1. The unit product cost under absorption costing and variable costing.
Product Cost : Absorption Costing = $23,44
Product Cost : Variable Costing = $19.00
2. Contribution format variable costing income statements for July and August.
July August
Sales 1,196,000 1,612,000
Less Cost of Sales : (437,000) (513,000)
Opening Stock 0 76,000
Add Production 513,000 513,000
Less Closing Stock (76,000) (76,000)
Contribution 759,000 1,099,000
Less Expenses :
Selling and administrative expenses
Variable : (23,000) (21,000)
Fixed : (169,000) (169,000)
Net operating income 567,000 909,000
3. Reconcile the variable costing and absorption costing net operating income
July August
Absorption costing net operating income $584,760 $891,240
Add Fixed Costs in Opening Inventory $17,760
Less Fixed Costs in Closing Inventory ($17,760)
Variable costing net operating income $567,000 $909,000
Explanation:
Product Cost : Absorption Costing = All Manufacturing Costs (Fixed and Variable)
= $5+$11+$3+($120,000/27,000)
= $5+$11+$3+$4.44
= $23,44
Product Cost : Variable Costing = Variable Manufacturing Costs
= $5+$11+$3
= $19.00
Related Questions
According to the above material, there exist large differences between economic growth rate using traditional expenditure approach and the satellite night-light data. How do you evaluate the night-light data method? and can you identify several reasons why there exists such differences?
Answers
The use of satellite night-light data as a method to evaluate economic growth has both strengths and limitations. Reasons for Differences between Traditional Expenditure Approach and Night-light Data: Informal Economy, Data Limitations, Urbanization Bias and Structural Changes.
Here is an evaluation of the night-light data method and several reasons for the differences observed between the traditional expenditure approach and the night-light data:
Evaluation of the Night-light Data Method:
Objective and Timely: Satellite night-light data provides an objective and timely measure of economic activity. Wide Coverage: Night-light data can cover large geographical areas, including remote and inaccessible regions. Granularity: The data can be analyzed at a fine-grained level, allowing for detailed spatial analysis of economic patterns. This can help identify pockets of growth and disparities within regions.Reasons for Differences between Traditional Expenditure Approach and Night-light Data:
Informal Economy: The traditional expenditure approach relies on official economic data, which may not fully capture the informal sector. Data Limitations: Night-light data has its limitations. It primarily measures economic activity related to lighting, which may not capture other dimensions of economic growth such as services or knowledge-based industries. Urbanization Bias: Night-light data tends to be more representative of urban areas with higher population density and greater access to electricity. Structural Changes: The traditional expenditure approach focuses on consumption and investment, while night-light data primarily captures the energy consumption associated with lighting.For such more question on economic:
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Denise has found an online article that she wants to incorporate in her upcoming presentation; however, she is not sure if it is a credible source. How can she use the CABLE method to evaluate the quality of this source? What does the acronym stand for? What questions does she need to ask to decide if the information is valid?
Answers
Answer:
Denise can use the CABLE method to evaluate the credibility of the online article she found. CABLE stands for Currency, Authority, Bias, Level, and Evidence. By asking questions related to each of these factors, she can determine if the information is valid and reliable. Here are some questions Denise can ask:
Currency:
When was the article published?
Is the information still relevant?
Has new information been released since the article was published?
Authority:
Who is the author of the article?
What are the author's credentials?
Is the author affiliated with a reputable organization?
Bias:
Is the article biased in any way?
Does the author have a conflict of interest?
Is the information presented objectively?
Level:
Is the article intended for a general or specialized audience?
Is the language and terminology used appropriate for the intended audience?
Is the article comprehensive and thorough?
Evidence:
What sources are cited in the article?
Are the sources reputable and reliable?
Is the information supported by evidence and data?
By answering these questions, Denise can evaluate the credibility of the online article and determine if it is suitable for use in her presentation.
Sources:
The CABLE Method. (n.d.). University of Louisville. Retrieved from https://louisville.edu/writingcenter/for-students-1/handouts-and-resources/handouts-1/research-and-documentation/cable
Evaluating Information - Applying the CABLE Test. (n.d.). LibGuides at University of Texas Arlington. Retrieved from https://libguides.uta.edu/c.php?g=780475&p=5591082
An abbreviation is a shortened form of a word used in place of the full word (e.g., Corp.). An acronym is a word formed from the first letters of each of the words in a phrase or name (e.g., NASA or laser).
What three factors may you use to judge the reliability of a source?Understanding which sources are reliable is crucial. Understanding depth, objectivity, currency, authority, and purpose is necessary for this aptitude. Consider your source based on these five criteria whether or not it has undergone peer review.
How can you verify the accuracy of information found online?Look at the three letters at the end of the domain name, such as "edu" (for educational), "gov" (for government), "org" (for nonprofit), and "com" (for commercial). Websites that are. gov or. edu often have a good reputation.
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Abe's Steakhouse is the largest upscale steakhouse company in the United States, based on total company- and franchisee-owned restaurants. The company's menu features a broad selection of high-quality steaks and other premium offerings. Assume the information below is from a recent annual report:
a. Common stock, $0.01 par value; 100,160,000 shares authorized; 23,383,356 issued and outstanding at the end of the current year, 23,215,356 issued and outstanding at the end of last year.
b. Additional paid-in capital: $198,389,000 at the end of the current year and $169,431,000 at the end of last year.
c. Retained earnings / (accumulated deficit): ($80,897,000) at the end of last year.
d. In the current year, net income was $54,083,000 and a cash dividend of $7,138,000 was paid.
Required: Prepare the stockholders’ equity section of the balance sheet to reflect the above information for the current year and last year.
ABE'S STEAKHOUSE
Balance Sheet (Partial) Current Year Last Year
Shareholders' equity: ??? ???
Additional paid-in capital ??? ???
Accumulated deficit ??? ???
Total shareholders' equity ??? ???
Answers
Here is the stockholders’ equity section of the balance sheet for Abe's Steakhouse:
The stockholders’ equityABE'S STEAKHOUSE
Balance Sheet (Partial)
Current Year Last Year
Shareholders' equity: Shareholders' equity:
Common stock ($0.01 par value; 100,160,000 shares authorized; 23,383,356 issued and outstanding) Common stock ($0.01 par value; 100,160,000 shares authorized; 23,215,356 issued and outstanding)
* $233,833 | $232,154
Additional paid-in capital | Additional paid-in capital
* $198,389 | $169,431
Retained earnings | Accumulated deficit
* $46,945 | $(80,897)
Total shareholders' equity | Total shareholders' equity
* $448,267 | $(37,744)
I have made the following adjustments to the information provided:
I have multiplied the number of shares outstanding by the par value of $0.01 to calculate the amount of common stock.
I have added the additional paid-in capital to the common stock to calculate the total contributed capital.
I have added the retained earnings (or accumulated deficit) to the total contributed capital to calculate the total shareholders' equity.
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ABC Company's production budget for October is based on 500 units. Standard unit cost for raw materials is $130 per unit ($10 per pound x 13 pounds per unit).
ABC's actual production in October= = 525 units.
The actual cost of materials used = $69,300 ($11 per pound x 12 pounds per unit).
Required:
a. Calculate the raw materials price variance for October. Is it favorable or unfavorable?
b. Calculate the raw materials usage variance for October. Is it favorable or unfavorable?
Answers
Answer and Explanation:
The computation is shown below;
a. Raw material price variance is
= (standard price - actual price) × actual quantity
= ($10 - $11) × ($69,300 ÷ $11)
= ($10 - $11) × 6,300
= $6,300 unfavorable
b. The raw material usage variance is
= (Standard quantity - actual quantity) × standard price
= (525 × 13 - 6,300) × $10
= $5,250 favorable
In this way it should be calculated
Economic demand is?
A. the amount of a good or service that consumers are willing and able to buy at one price.
B. the amount of a good or service that consumers are willing and able to buy at various prices.
C.the amount of a good or service that producers are willing and able to produce at various prices.
D. the amount of a good or service that consumers are willing but not able to buy at various prices.
Which of the following is correct?
Answers
The correct answer is B. Economic demand is the amount of a good or service that consumers are willing and able to buy at various prices.
It reflects the relationship between the price of a product and the quantity that consumers are willing to purchase at that price. Demand is influenced by factors such as price, consumer preferences, income levels, and availability of substitutes.
As the price of a product decreases, the quantity demanded generally increases, and vice versa, following the law of demand. The demand curve represents this relationship, showing the quantity of a good or service that consumers are willing and able to buy at different price points.
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What is market segmentation in marketing with example?
Answers
Market segmentation, in marketing, is the division of a broad target market into more focused groups based on shared characteristics, tendencies, requirements, or preferences.
Market segmentation in marketing with example.In marketing, market segmentation refers to the process of breaking up a large target market into more narrowly defined segments based on shared traits, tendencies, needs, or preferences. Identification of various market segments is necessary in order to target them with specialized marketing techniques and messages.
Think about a business that sells athletic shoes. They choose to use market segmentation to find particular segments with varied wants and preferences when it comes to athletic shoes rather of targeting the full market of potential clients.
The corporation can effectively target these niche markets with goods and advertising messages that speak to their particular needs and preferences by using market segmentation. Their chances of succeeding in the market are eventually increased by being able to customize their product offers, pricing, promotional techniques, and distribution networks to each segment.
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Which of the following statements about ethics training is true?
A. The most effective ethics training involves new recruits; the ethics of long-time
employees cannot be changed.
B. Ethics training is formal training to develop awareness of inappropriate
behavior and to practice appropriate responses.
C. Ethics training is best done informally to allow employees to feel free to admit
their mistakes.
D. The most effective ethics training begins with the development of a personal
code of ethics.
E. One of the purposes of ethics training is to get employees to admit when and
where they have acted unethically.
Answers
The statement regarding ethical training is" It is formal training for creating awareness of non-appropriate behavior & for practicing the appropriate responses.
The following information should not be considered:
It includes the new recruitment.It permits the employees for admitting mistakes. It started with the development of the code of ethics.Therefore we can conclude that the statement regarding ethical training is" It is formal training for creating awareness of non-appropriate behavior & for practicing the appropriate responses.
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You left work on Thursday evening and forgot to turn in a report that was due that day to your manager. You decide you need to compose an apology letter. What should you do when composing the message
Answers
Answer:
Explanation:
In this specific scenario, the message that you are composing to your manager should be sincere, professional, and have a valid reason for why the report was not turned in. Aside from the note, it should also have the finished report attached to it, otherwise the manager will think that the note is an empty excuse which will be meaningless if the report is still overdue.
Required informationSkip to questionIntroductionRead the overview below and complete the activities that follow.
Remedies for Breach of Contract
In the case below, a municipality backs out of a contract to have a bridge built. The contractor has already begun production and incurred costs.
CONCEPT REVIEW:
The overall goal of damages in breach of contract suits is to put the parties where they should have been if the contract had been performed. But the solution simply ordering the parties to perform is rarely enough. Damages vary greatly based on the nature of the contract itself, as well as the extent to which performance is underway.
Remedies
Read the short case below, and select the best answer to each question that follows.
The Randolph Bridge Company (RBC) agrees to build a suspension bridge in the city of Detroit. Detroit plans to pay RBC $50 million. RBC's anticipated costs, including labor, materials and so on, are $40 million. Construction is anticipated to take six months. One month into the project, RBC has put $10 million into the project. Detroit tells RBC at this point that it no longer wants the bridge, and plans to breach the contract.
How much will RBC's damages be?
a) $50 million
b) $0
c) $20 million
d) $10 million
e) $40 million
Answers
Answer:
Please given an Explanation:
The damages that will be faced by the Randolph Bridge Company if Detroit plans to breach the contract will be close to around $10 million at the point of one month.
What is breach of contract?A breach of contract is a condition wherein a party to the contract violates the terms of agreement as per the documents signed during the contract. A breach of contract makes such person, who breaches, liable to be sued.
In the above case, it has been observed that the city of Detroit has made promises to pay for the project at the end of completion of the project of building the bridge; however, no payments have been made at the end of one month, where RBC Company has already deployed an amount of $10 million.
As the RBC Company has not received any of the payments and a breach of contract has been made by the Detroit city, the total damages for the company at such point will be $10 million, considering that no loans or advances were taken to repay the same.
Hence, option D; $10 million are the damages suffered and incurred upon by the RBC at the end of one month when Detroit has made a breach of contract agreements.
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how do supply and demand work together to influence the price of a product
Answers
The NPV and IRR method occasionally do not agree on accept/reject decisions when evaluating an investment proposal.
True or False?
Answers
I remember seeing that question before and I got the anwser correct.
The NPV and IRR method occasionally do not agree on accept/reject decisions when evaluating an investment proposal. The given statement is False.
Why positive NPV should be accepted?A project or venture has a positive NPV if the estimated earnings, discounted for their present value, are more than the anticipated costs, also expressed in today's currency. A positive NPV indicates an investment that is likely to be successful. Net loss will arise from an investment with a negative NPV.
The total of the investment's anticipated cash inflows and outflows, discounted back to their present value at a risk-adjusted rate, is known as the net present value. Project acceptance is granted if the NPV exceeds $0. The project is turned down in any other case.
Thus, the given statement is False.
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Which of the following statements is TRUE? *
4 points
Home equity loans or lines of credit are not available to renters
Home equity loans or lines of credit are only available to people who have paid for their home in full
Home equity loans or lines of credit are illegal in most states
Home equity loans or lines of credit are only useful for funding home improvement projects
Answers
The TRUE statement about Home Equity Loans is A. Home equity loans or lines of credit are not available to renters.
What is a home equity loan?A home equity loan is a line of credit, known as a HELOC, secured by an individual's homeownership which gives the individual a revolving credit line to use.
The homeowner can borrow up to 80% or more based on the home equity built up over the years.
Thus, the TRUE statement about Home Equity Loans is A. Home equity loans or lines of credit are not available to renters.
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I. A clinic encourages its customers to have their bond checked with the claim that one out
of four 60-year-old men need to be supplemented with glucosamine. If this is true, what is
the probability of the following events:
a. Two out of the next eight 60 year-old men need to be supplemented with glucosamine
b. Three out of the next 12 60 year-old men need to be supplemented with glucosamine
Answers
A clinic encourages its customers to have their bond checked with the claim that one out of four 60-year-old men need to be supplemented with glucosamine. If this is true, then the probability of the following events is Two out of the next eight 60 year old men need to be supplemented with glucosamine.
Glucosamine is a naturally occurring compound in the body. It is required for the formation and repair of cartilage as well as other body tissues.
Because glucosamine production slows in age, some people take glucosamine supplements to help them fight aging-related health issues like osteoarthritis. The majority of supplements are made from the shells of marine life, such as prawns and crabs.
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Ricardo uses his personal vehicle in his sole proprietorship. He keeps no records of any kind regarding his business use of the car and doesn't really know for certain when and where he used the automobile for business. Which of the following is correct?
a. Juan should deduct a good-faith estimate of his expenses for the auto as a business expenses.
b. Juan should estimate his total vehicle expenses for the year, then deduct 50% of that amount as business expense.
c. Juan could have leased a comparable vehicle for $3,600 for 2016. Therefore, he should deduct $3,600 as a business expense.
d. Juan cannot deduct any vehicle expenses because he has no record of his expenses.
Answers
Answer: d. Juan cannot deduct any vehicle expenses because he has no record of his expenses
Explanation:
A sole proprietorship is a form of business that is owned and controlled by one person.The person enjoys the profit alone and bears the risk alone as well.
Since we are given the information that he keeps no records of any kind regarding his business use of the car and doesn't really know for certain when and where he used the automobile for business, this means that Juan cannot deduct any vehicle expenses because he has no record of his expenses.
We should note that for a deduction to be made, the details of how the vehicle is used for business purposes would be required. Since he doesn't have it, he can't deduct any vehicle expenses.
Dennis 51 purchased a $10000 13 week treasury bill as a short term investment. He paid $9960.00 for the security, which was issued on June 17th 2021 , when the bill matured on sept. 16,2021 Dennis received $10000.00 how is the $40.00 is interest reported on his tax return form 6251?
Answers
The interest of Dennis's treasury bill is not reported on his tax return form 6251, but Form 1099-INT.
How does AMT tax work?Certain taxpayers who make a significant amount of money are subject to the Alternative Minimum Tax (AMT), even though they can use deductions and credits to keep the majority, if not all, of their income from being taxed. It increases the amount of income that is taxed by adding items that are not typically taxed and by excluding many deductions under the regular tax system.
The AMT is a parallel tax system that runs in the background of the regular tax system. Treasury bills, notes, and bond interest income are taxed federally but not state or locally. However, this income is not taxed on the interest received. Treasury bills, notes, and bond interest income are taxed federally but not state or locally. However, this revenue is not taxed on the interest received.
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What unique things would separate you from other applications applying for this money
Answers
The unique things that would separate the person from other people that are applying include
well-written essaygood educational backgroundvolunteering work that the person may have engaged in.What are the required things that the person applying should have?Good educational backgroundVolunteering works would be an added advantageA well-written essayHave good characters and there should be no previous issues that show that the person had broken a law.Therefore, the above statement would be beneficial for the person applying for the money.
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Once her teams goals were set Alyssa asked each team member to come up with a(n)____ to reach her goals.
Answers
Once her team's goals were set Alyssa asked each team member to come up with a(n) action plan to reach her goals.
What is an Action Plan?This refers to the document that shows the list of steps that should be taken by a person in order to achieve or actualize their goals in a methodical manner.
Hence, we can see that based on the fact that the team goals have been set, Alyssa asked her team to form an action plan which was to help them achieve her goals and shows the list of actions and steps to be taken.
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Pros and Cons of Adjustable-Rate Mortgages
An adjustable-rate mortgage (ARM) is another common type of mortgage. Determine whether each factor is a pro or
a con of an ARM, and place it in the correct category.
Pros of Adjustable-Rate Mortgages
Cons of Adjustable-Rate Mortgages
lower interest rates possible
riskier than fixed-rate mortgages
low beginning interest rate
interest rates can be raised
higher payments possible
Correct!
Answers
The pros and cons of the Adjustable-Rate Mortgages are consistent payments and lower interest rates possible.
What is Mortgage?Mortgage refers to the agreement between the lender and the buyer which involves the exchange of the money.
When person and a lender enter into a mortgage, the lender is granted the power to seize your property if person are unable to pay back the loan amount plus interest. Mortgage loans are used to either purchase a home or borrow against an existing home's worth.
Adjustable-Rate Mortgages is the loan which is granted for the homes which depends on the market as it does not has the fixed rate of interest.
The ARS mortgage type offers comfortable consistent payments, and over time, reduced interest rates may be feasible. However, there is a chance that interest will grow, which could be a drawback.
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straight-line depreciation is calculated by taking cost minus (salvage/market) value divided by useful life.
a. true
b. false
Answers
True: To calculate depreciation using the straight-line method, subtract the asset's purchase price from its salvage value (what you estimate it will be worth at the end of its useful life). The result is the amount that can be depreciated, also known as the depreciable basis. The asset's useful life, which is expressed in years, is deducted from this amount.
Straight line depreciation is a common type of depreciation that lowers the value of a fixed asset throughout the period of its useful life. Throughout the length of a fixed asset's useful life, it is used to reduce the carrying amount. The cost of an asset is diminished by the same amount during each accounting period when adopting straight line depreciation. Afterward, you can deduct significant assets on your company's balance sheet or tax income statement.
The asset's expected lifespan is the period of time during which you can use it. You might choose your own useful life for literary objectives. Useful lifetimes for tax depreciation are determined by the type of asset. You can get assistance from your accountant in figuring out an asset's useful life.Negative of salvage value: At the end of its useful life, the asset will be worth this. Typically, salvage value is an estimate. Especially if you want to use the asset for a long time, you can also choose zero as the salvage value of the asset.
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Define the internal environments in international business for finance, production and marketing
Answers
Answer:
International business can be defined as the trade of goods and services ( e.g technology, capital, consulting, transportation, events, hospitality) globally or across national borders.
Internal environment is composed of elements within the business that can easily be controlled by the company, this include employees, financial resources, productions, management, and marketing.
Explanation:
Internal environment determines the extent to which the business can excel in international market. Internal environment like financial resources will determine the quantity and quality of products the company markets or exports to other nations.
Internal environment are factors that can be easily controlled or altered in order to adjust to the external environment. The external environment cannot be easily controlled but the internal environment can be adjusted constantly to ensure the company is archiving it targets in the international business.
Pls can someone answer quick they are multiple choice
2. Which one of the following is not a characteristic generally evaluated in analysing financial
statements?
(1 Point)
O Liquidity
O Profitability
O Marketability
O Solvency
3. Comparisons of financial data made within a company are called (1 Point)
O intracompany comparisons.
O interior comparisons
O intercompany comparisons
O intramural comparisons
Answers
Marketability, one of the following is not a characteristic generally evaluated in analyzing financial statements. Thus, option (c) is correct.
Comparisons of financial data made within a company are called intracompany comparisons. Thus, option (a) is correct.
What is company?The term company refers to the legal entities that are legally registered in accordance with the Company Act. Company is the main goal to earn higher profit, and they maintain the goodwill.
According to the financial statements, are the created with the help of the marketability of the product. There was the financial data are the company to the entry are the intracompany comparisons.
Therefore, option (c) and 2. (a) is correct.
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Assume the spot price of the US dollar against the dirham is 9dh/$. The exercise price in a put option is 9.2dh/$ and the premium is 0.4dh/$. The buyer of the put will
Answers
In this scenario, the spot price of the US dollar against the dirham is 9dh/$, and the exercise price in the put option is 9.2dh/$. This means that the buyer of the put option has the right to sell US dollars for 9.2 dirhams per dollar, even if the spot price drops below that level.
The premium for the put option is 0.4dh/$, which means that the buyer pays 0.4 dirhams per dollar to the seller of the put option for the right to sell US dollars at the exercise price of 9.2 dirhams per dollar.
If the spot price of the US dollar against the dirham drops below the exercise price of 9.2dh/$, the buyer of the put option can exercise their right to sell US dollars at the higher exercise price of 9.2dh/$, making a profit on the trade.
On the other hand, if the spot price of the US dollar remains above the exercise price, the buyer of the put option may choose not to exercise their right to sell at the lower price, and they will lose the premium they paid for the option.
Therefore, the buyer of the put option is hoping that the spot price of the US dollar against the dirham will drop below the exercise price of 9.2dh/$, so that they can sell their US dollars at the higher exercise price and make a profit.
The cosmetics industry in the district of Dunkenburg has many competing companies that sell personal care products. However, each company manufactures products that correspond to different income groups. The products are also different in terms of their uses. Which of the following market structures is existent in the cosmetics industry in Dunkenburg?
Answers
Monopolistic competition market structures are existent in the cosmetics industry in Dunkenburg.
Monopolistic opposition is a type of imperfect competition such that there are many manufacturers competing in opposition to each different, but selling merchandise that is differentiated from each other (e.g. by means of branding or first-class) and hence isn't perfect substitutes. In monopolistic competition, a business enterprise takes the costs charged with the aid of its opponents as given and ignores the effect of its personal costs at the costs of other groups.
If this occurs in the presence of coercive authorities, monopolistic competition will fall into government-granted monopoly. in contrast to perfect competition, the corporation continues spare capacity. models of monopolistic opposition are frequently used to model industries. Textbook examples of industries with marketplace structures much like monopolistic competition encompasses eating places, cereals, clothing, shoes, and service industries in massive cities.
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b) Upscale hotels in the United States recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. A survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the Internet and the telephone, to transact business. Assume a company’s budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. Graphically illustrate how a 20 percent decline in the price of business travel would impact this company’s budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. Suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. Is the company allocating resources efficiently? Explain
Answers
It is to be noted that the company is not allocating resources efficiently. See the attached image for the Graphically illustration required.
What is allocation of resources?This is simply the ability to efficiently distribute resources across all aspects of production.
What is the proof that the company is misappropriating resources?MRS is the gradient of the budget line is defined by the change in the Y axis divided by the change in the x axis.
In other words, MRS is the number of units of x that a customer is ready to give up in exchange for units of y.
Note that
the MRS fo the budget line is:
-dy/dx
= -10.6/6.25
= -1.6, that is media 1.6 units of media is given for every unit of business travel.
However, the corporation claims that the MRS is -1, which indicates that for every unit of business trip, they give away one unit of media. In other words, they are paying a price equal to the cost of business travel, resulting in a resource misappropriation.
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HUL as an organization wants to analyze the market growth versus market share of its
product portfolio. Consider any top four performing product categories. Which matrix can
be utilized for the same? Define which strategy can be used by each quadrant.
Answers
The BCG Matrix can be utilized to analyze the market growth versus market share of HUL's top four performing product categories.
Which strategy can be used by each quadrant in the BCG Matrix?In the BCG Matrix, the four quadrants represent different product categories based on their market growth and market share. The quadrants are:
Stars: These are products with high market share in high-growth markets. HUL should adopt a strategy of investing in stars to maintain and increase their market share and continue capitalizing on the growth potential of these categories.Cash Cows: These are products with high market share in low-growth markets. HUL should adopt a strategy of maximizing the profitability of cash cows by extracting as much cash as possible from these categories while minimizing investment.Question Marks: These are products with low market share in high-growth markets. HUL should adopt a strategy of either investing to improve their market share and turn them into stars or consider divestment if they are not performing well.Dogs: These are products with low market share in low-growth markets. HUL should adopt a strategy of either divesting or repositioning these products to improve their market share or exit these categories altogether.By analyzing the market growth and market share of their product portfolio using the BCG Matrix, HUL can make informed decisions regarding resource allocation, investment priorities and overall product strategy for each category.
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Which of the following questions can a balance sheet help to answer? A. Does the business have too many employees? OB. Has too much credit been extended? O C. Does the business have too many customers? OD. Is the business making the right products?
Answers
The question that a balance sheet help to answer is has too much credit been extended.
What is a balance sheet?This refers to the financial statement of a company, which shows how assets and liabilities are recorded.
It helps to show the true position of a company's financial status, at a particular time.
Hence, the questions that a balance sheet help to answer is has too much credit been extended.
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First National Bank Assets Liabilities and Net Worth US Treasury Bonds $450,000 Net Worth $500,000 Reserves (Cash) $175,000 Checkable Deposits $250,000 Loans $125,000 Second National Bank Assets Liabilities and Net Worth US Treasury Bonds $100,000 Net Worth $250,000 Reserves (Cash) $250,000 Checkable Deposits $100,000 Third National Bank Assets Liabilities and Net Worth US Treasury Bonds $900,000 Net Worth $1,000,000 Reserves (Cash) $350,000 Checkable Deposits $500,000 Loans $250,000
The Required Reserve Ratio is 25% for all banks. Assuming that all the customers that have outstanding loans have used all of those additional funds to invest in new machinery for their businesses (therefore, the amount of Checkable Deposits is the true liability the bank has to its customers), then $_____________ is the resulting change to the loan creating potential of the whole system (these three banks) as a result of Second National Bank customers depositing an additional $400,000 in their Checkable Deposit accounts in new loans.
Answers
As a result, the system's overall capacity to create loans increases by $750,000.
what are the assets and liabilities of the First National Bank?For all banks, a 25% reserve ratio is necessary. This means that banks can lend out the remaining 75% of their checkable deposits after holding 25% of them as reserves.
Before Second National Bank's clients added another $400,000 to their checkable deposit accounts, the sum of the three banks' checkable deposits was as follows:
$250k First National Bank
$100,000 Second National Bank
$50000 Third National Bank
There were $850,000 worth of checkable deposits in the system.
Each bank needs to have the following reserves:
First National Bank: 25% times $250 000 is $62,500
Second National Bank: 25% times $100,000 equals $25,000.
Third National Bank: $125,000 x 25% of $500,000
$212,500 in total reserves are needed for the system.
The banks had $637,500 ($850,000 - $212,500) available for loans prior to the additional deposit. The system's total checkable deposits rose to $1,250,000 ($850,000 + $400,000) after customers of Second National Bank added an extra $400,000 to their accounts.
The updated necessary reserves for any bank are:
First National Bank: 25% times $250 000 is $62,500
Second National Bank: $125,000 x 25% of $500,000
Third National Bank: $187,500 ($25% x $750,000)
The system now has to have reserves of $375,000 ($62,500 + $125,000 + $187,500).
As a result, Second National Bank clients depositing an additional $400,000 in new loans in their checkable deposit accounts has the following impact on the system as a whole (these three banks):
$750,000 is equal to $1,250,000 (new checkable deposits) minus $375,000 (new needed reserves) and $125,000 (current Second National Bank reserves).
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Problem 4: The table describes a 10-person economy. Each person in this economy has 1 dollar that he might save or
consume. He saves only if he can obtain a return on savings at least as high as the rate indicated in the first column. Each
person also has access to an investment project paying the return listed in the second column. He is willing to undertake
the investment using his own savings only if the return on his investment is at least as high as the return he requires to
make saving attractive. He is willing to undertake the investment using a loan from a financial intermediary only if the
investment pays a return greater than or equal to the interest rate he must pay on the loan. He prefers to finance the
investment out of his own savings rather than a loan (if available) only if the return he requires to render saving
attractive is lower than the interest rate he must pay on a loan.
Saves If
Available Investment
Person
Return 2 (Percent) Return (Percent)
5
5
1
5
2
8
3
5
9
4
8
5
5
8
5
8
5
6
7
10
9
8
10
10
9
9
20
20
10
15
a. Assume first that the costs of carrying out financial transactions are so high that no borrowing or lending takes place.
As a result, the only way a person can earn a return on savings is by investing in his own investment project. Which
people will invest in this case? What is the simple average of the returns on the investments undertaken?
Answers
Answer:
im not understandidb
Explanation:
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It is a computational model of a single neuron that is made up of one or mor inputs, a processor, and a single output.
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A perceptron is a computational model of a single neuron that is made up of one or mor inputs, a processor, and a single output.
What is a perceptron ?A perceptron is a simple computational model of a neuron that is made up of one or more inputs, a processor, and a single output. The inputs are weighted and summed, and the output is determined by a threshold.
Perceptrons can be used to perform simple tasks, such as classification and regression. They are also the building blocks of more complex neural networks, such as deep learning networks.
Perceptrons are a simple but powerful tool for computation. They can be used to perform a variety of tasks, and they are the building blocks of more complex neural networks.
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The opportunity cost of making a component part in a factory with no excess capacity is the: (CMA adapted)
Answers
Answer:
Answer Choices
The opportunity cost of making a component part in a factory with no excess capacity is the
(A) Variable manufacturing cost of the component.
(B) Fixed manufacturing cost of the component.
(C) Cost of the production given up in order to manufacture the component.
(D) Net benefit given up from the best alternative use of the capacity.
Answer is D
Net benefit given up from the best alternative use of the capacity.
Explanation:
When we talk about opportunity cost, we simply look at the potential benefits a business, investor or person could miss when selecting a particular alternative over another. This is a major concept in economics.
If one is not careful, opportunity costs can be readily overlooked and when one tries to understand the missed opportunities in choosing one option over another, that individual would be able to make better decisions.