Riggs and Murtaugh Engine Inc. (RME) is suffering from the effects of increased local and global competition for its main product, a lawn mower that is sold in discount stores throughout the United States. The following table shows the results of RME’s operations for 2018.
Sales (13,000 units x $83)
$1,079,000
Variable costs (13,000 units x $62)
806,000
Contribution margin
273,000
Fixed costs
275,000
Operating profit (loss)
(2,000)
Refer to the original data. The vice president in charge of sales feels that a 5% reduction in price in combination with a $40,000 increase in advertising will cause unit sales to increases by 40%. What effect would this strategy have on operating profit (loss)?
Refer to the original data. During 2018, RME saved $5 of unit variable costs per lawn mower by buying from a different manufacturer. However, the cost of changing the plant machinery to accommodate the new part cost an additional $50,000 in fixed cost per year. Was this a wise change? Why or why not?
Answers
The strategy would result in an increase in operating loss by $2,000. The increase in advertising expense and the reduction in price would lead to a decrease in contribution margin that is greater than the increase in unit sales.
The change was not wise because the savings in unit variable costs ($5 per lawn mower) were outweighed by the additional fixed costs incurred ($50,000 per year). The net effect was an increase in total costs, resulting in a higher operating loss for the company.
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Related Questions
Automation has improved the quality and efficiency of repetitive tasks. True or False
Answers
Answer:True
Explanation:
with respect to the three criteria used to determine whether revenue on a long-term contract is recognized over time [i.e., (1) customer consumes services while performed, (2) customer controls asset as it is created, and (3) asset has no alternative use], revenue is recognized over time if: multiple choice question. all three criteria are satisfied any one of three criteria is satisfied two of the three criteria are satisfied
Answers
In accounting, revenue recognition on long-term contracts is determined based on three criteria.
The criteria for revenue recognition on long-term contractsThe first criterion is when the customer consumes services while they are performed. This means that revenue can be recognized over time as the services are being provided.
The second criterion is when the customer controls the asset as it is created.
In this case, revenue can be recognized over time as the customer takes control of the asset being created.
The third criterion is when the asset has no alternative use. If the asset being created has no alternative use, revenue can be recognized over time as it is being created.
Based on these criteria, revenue can be recognized over time if any one of the three criteria is satisfied, but it is preferred that all three criteria are satisfied before revenue recognition is made.
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A 35-year-old client purchases a variable life insurance policy. Under current regulations, the maximum sales charge permitted over the life of the policy is A) 9% B) 8.5% per premium payment C) 9% per premium payment D) 8.5% of total premiums over the life of the plan
Answers
Answer: 9%
Explanation:
A variable life insurance policy is simply referred to as a contract between an individual and the insurance company. In the case of death to the individual, a certain amount would be paid to the family of the individual.
It should be noted that under current regulations, the maximum sales charge permitted over the life of the policy is 9% and this period should not be more than twenty years.
Barry Olson has mastered strong technical skills as the manager of a large toy store. He is very skilled at all the aspects of managing the store and the employees of the store. Soon, he will take a new position as regional manager for several toy stores. His boss remarked to him last week that he will be utilizing his _____ skills to communicate, coach, and motivate managers who have positions similar to his old position.
Answers
Answer:
human
Explanation:
Human skills are the skills that can be related to one another. The person who have the strong human skills that could easily engaged with the audience, potential customer. ALso at the same time they would able to connect with the people and those people who feel the individual at personally level
So as per the given situation it is a human skills
Which is a possible benefit of having a good credit history?
Answers
Answer: Lower interest rates for loans
Explanation: The better your credit score the lower the interest from lenders because you have an established record of paying on time.
Disadvantages of choosing a job that is extremely popular or in demand
Answers
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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What is the main difference between goods and services?
Answers
John hamilton borrowed $500,000 from stone creek bank to open a new restaurant called sauce-it-up. John transferred $450,000 of the cash he borrowed to the company on first day of the year. Which of the follow appropriately reflects the cash transactions between these reporting entities?.
Answers
The appropriate reflection of the cash transactions between these reporting entities is as follows:
John Hamilton Sauce-it-up Stone Creek Bank
Cash +$500,000 $450,000 -$500,000
-$450,000
Balance $50,000 $450,000 -$500,000
What is a reporting entity?A reporting entity is an economic unit that publishes general purpose financial reports to enable users make and evaluate their decisions about the allocation of scarce resources.
Thus, John Hamilton's cash holding increased by $50,000 net. The cash holding of Sauce-It-Up increased by $450,000 while the cash holding of Stone Creek Bank decreased by $500,000.
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Brian has come to see Monica at Elite Salon & Spa for his regular biweekly pedicure appointmentAs construction worker Brian spends most of his time standing and wearing boots for many hours at time, so his feet suffer the past week has been especially rough , and Brian is really looking forward to his appointment with Monica What should Monica do first when he brings Brian back to the pedicure chair?
Answers
Answer:
Monica should First examine Brian's feet and toenails.
Explanation:
One of the things people dealing with nails otherwise known as nail technicians does is not all about doing pedicures and manicures for their clients alone they also learnt about Bacteriology and nail diseases so they can give advice on nails management to their numerous clients.
Monica, after the examination should advice Brian to get a new pair of shoes in order to inhibit fungal growth. If Brian do not do this, he will likely get a tinea pedis later. After the advice, Monica should massage Brian's feet. Below are the steps Monica should follow:
=> Examine the feet and toenails.
=> Give advice and Massage.
=> Deep the feet into cool water for some minutes .
Answer:
examine his feet and toenails
Explanation:
In this scenario when Brian comes to meet Monica for a pedicure, she will need to first look at Brian's feet to determine the best course of action depending on the damage that has been done on Brian's feet.
For example she could examine his feet and realise he has athletes foot.
Athletes foot occurs when a person's feet are enclosed in a confined space such as a shoe and there is sweat.
Irritation is noticed between the toes and soles of the feet, and antifungal cream can be used to treat it.
In this case this is most likely the diagnosis for Brian as he stand s for long and wears boots
What do you already know about different types of economic systems?
Answers
Explanation:
what do you Larry knok about
what are tools of fiscal and monetary policy used to stabilize the economy during inflation?
Answers
There are several tools of fiscal and monetary policy that can be used to stabilize the economy during inflation. The two tools of Fiscal Policy and Monetary Policy are-Increase taxes, Decrease government spending and Increase interest rates, Reduce the money supply.
Fiscal policy refers to the government's use of taxation and spending to influence the economy. One tool of fiscal policy that can be used during inflation is to increase taxes, which can reduce the amount of money people have to spend and help slow down inflation. Another tool is to decrease government spending, which can also reduce demand and help slow down inflation.
Monetary policy refers to the actions taken by a central bank, such as the Federal Reserve in the United States, to influence the money supply and interest rates. One tool of monetary policy that can be used during inflation is to increase interest rates, which can reduce borrowing and spending and help slow down inflation.
Another tool is to reduce the money supply by selling government securities or increasing reserve requirements for banks, which can also reduce demand and help slow down inflation.
Overall, a combination of fiscal and monetary policy tools can be used to stabilize the economy during inflation.
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Experts suggest that ___ of your time should be spent on the drafting phase.
Answers
Experts suggest that 50% of your time should be spent on the drafting phase.
What is the drafting phase?A drafting phase is a procedure in which a written document or a building design is created. In the drafting stage, the design, structure, and other aspects of a project are defined. In terms of writing, it refers to the writing of a rough draft.The importance of the drafting phase is that it allows you to create an outline for your writing before you begin to put pen to paper. It's essential to keep the time of the drafting phase in mind while preparing an essay or paper. The drafting process will assist you in producing a well-organized and well-structured piece of writing. Experts recommend that about 50% of your time be spent on the drafting stage.
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Which of the following decisions is most likely to create a temporary diseconomy of
scale? (Select the best answer.)
A)Buying supplies in bulk
B)Buying an expensive piece of machinery
C)Hiring employees who specialize
D)Using division of labor
Answers
Answer:
Buying an expensive piece of machinery
Explanation:
the total net cash flows from operating activities are identical under both the indirect and direct methods.
Answers
It is true that the total net cash flows from operating activities are identical under both the indirect and direct methods.
The operating activities is the section which records the money that the company brings in from its regular business activities.
It is important to understand that the two methods (indirect and direct methods) under Operating activities only differ in presentation formats and does not influence the net cash flow.In conclusion, it is true that the total net cash flows from operating activities are identical under both the indirect and direct methods.
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Head Time is a local salon that requires all its stylists to graduate from a recognized hairstyling institute and pass the state licensing examination prior to joining work. Due to strict customer service requirements and potential lawsuits resulting from inadequate knowledge regarding the use and care of certain chemicals and solutions, this business can clearly justify its hiring criteria ________.
Answers
Answer:
educational
Explanation:
Omar and Patrick sell magazine subscriptions by telephone. Omar is paid $1.00 for every 5 calls he makes, while Patrick is paid $1.00 for every subscription he sells. Omar is paid on a __________ schedule while Patrick is paid on a __________ schedule.
Answers
This means that Omar is paid on a fixed ratio schedule while Patrick is paid on a variable ratio schedule.
What are fixed ratio and variable ratio?Fixed Ratio refers to a reinforcement schedule, which make use of reinforcement after the completion of number of responses. This means that each time a response is received, there is reward for each of the completed task.
For Variable ratio, there are unpredictable responses even when the responses have been reinforced. Each time a person performs a behaviour, the reinforcement is not distributed.
Hence, Omar is paid on a fixed ratio schedule while Patrick is paid on a variable ratio schedule.
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prior to adjusting entries, salaries expense had a balance of $22,300. the following year-end adjusting entry was made by the company: account title debit credit salaries expense 4,400 salaries payable 4,400 what balance would be shown for salaries expense in the adjusted trial balance?
Answers
The balance shown for salaries expense in the adjusted trial balance would be $26,700. The adjusting entry increased the salaries expense by $4,400, bringing the total to $26,700.
The initial balance of salaries expense was $22,300. The adjusting entry increased the expense by $4,400, representing the portion of salaries earned by employees but not yet paid or recorded. As a result, the adjusted balance for salaries expense is calculated by adding the adjustment amount to the initial balance: $22,300 + $4,400 = $26,700. This adjusted balance reflects the total amount of salaries expenses recognized and recorded for the accounting period. It is important to note that the adjusting entry increased both the expense and the corresponding liability (salaries payable) to accurately reflect the obligation to pay the employees for their services.
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Warm-Up
Teresa is considering purchasing a home for $220,000 by taking out a loan with an interest rate of 4.3% for 30 years. What would her monthly payment be?
Use the monthly payment formula to calculate the monthly payment for this loan:
M =
M = monthly payment
P = principal
r = interest rate
t = number of years
Answers
Answer:
$1,088.12
Explanation:
The formula for calculating monthly repayments is as below.
M= P x r
1 − (1+r)−^n
where p is the loan amount = $220,000
r = 4.3per cent or 0.043 % interest rate per year,
on monthly basis r will be 0.043/12=0.00358%
n = 30 year, which is 30 x 12 months= 360 months
M= $220,000 x 0.00358
1 - (1+0.00358 ) ^ - 360
M=$220,000 x 0.00358
1- 0.2762
M = $220,000 x (0.00358 /0.7238)
M = $220,000 x 0.0049461
M = 1,088.12
Monthly payments will be $1,088.12
XYZ Mortgage Company just mailed a Closing Disclosure to a consumer. The waiting period prior to closing will begin:
Answers
Answer:
The waiting period will begin on the third business day after the closing disclosure is mailed.
Explanation:
The closing disclosure is a 5 page form that your mortgage lender must send to you. It includes all the relevant information about the loan that you applied for, e.g. estimated monthly payments, closing costs and other fees, etc. But the closing disclosure doesn't mean that the loan has been approved, it is a formality prior to closing the deal.
Refer to the accompanying table below. The marginal benefit of the 5th unit of
activity is:
Units of Activity
0
1
2
3
4
5
6
Total Cost
$0
$30
$40
$60
$100
$150
$210
Total Benefit
$0
$100
$160
$190
$210
$220
$225
O A) $44
B) $50
Answers
Answer:
huh am stuck this question
The marginal benefit of the 5th unit of activity is $50.
The marginal benefit refers to the change in the overall benefit at the time when the extra unit of the commodity should be consumed.The following formula should be used:
= Total benefit of 5th unit - Total benefit of 4th unit
= $150 - $100
= $50
Therefore we can conclude that the marginal benefit of the 5th unit of activity is $50.
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How is increasing government spending on more roads and airports a good idea/ bad idea
Answers
Answer:
Bad
Explanation:
The increased government spending may create a multiplier effect. If the government spending causes the unemployed to gain jobs then they will have more income to spend leading to a further increase in aggregate demand.
Breton Woods Standards were found to be inadequate mainly because
Answers
Answer:
A key reason for Bretton Woods' collapse was the inflationary monetary policy that was inappropriate for the key currency country of the system.
Explanation:
The US decision to suspend gold convertibility ended a key aspect of the Bretton Woods system. The remaining part of the System, the adjustable peg disappeared by March 1973.
Buster has had a serious medical condition for many months. He has used up all of his sick leave and vacation days, as well as 10 weeks of intermittent Family Medical Leave Act leave. He asks for an additional two weeks off. Which of the following is true? A. Buster's employer can fire him because he wants to take more leave B. Buster cannot be fired for reasons aside from his need to take leave. C. Buster cannot take any more leave if he has also used up his sick leave and vacation days. D. Buster is entitled to the leave he is asking for.
Answers
Answer:
C. Buster cannot take any more leave if he has also used up his sick leave and vacation days.
Explanation:
Buster has used up all the sick leaves and the vacation leaves and is asking for additional two more weeks off even after taking the ten-week of intermediate family leave he should be not allowed to take more leaves. Through he cannot be fired due to his serious condition but if he has finished all the sick leaves he should not be given.Answer:
b
Explanation:
As of June 28, 2020, Cedar Fair had issued $201.5 million in season passes. Cedar Fair estimated that guests would use passes worth
$41.9 million during the remainder of 2020, $61.9 million from January 1 to June 30, 2021, and the remaining $97.7 million after June
30, 2021. What amounts should Cedar Fair classify as current versus noncurrent, in its balance sheet on June 28, 2020?
Answers
Based on Cedar Fair issuance of season passes,$103.80 million would be classified under current whereas $97.7 million is non-current
What does current classification indicates in the balance sheet?
The current classification in the balance sheet refers to assets that would be used up in up to a year or liabilities that would be settled within a year, any other item whose usage or settlement date is beyond 1 year is classified as non-current asset or liability.
In this case, Cedar Fair would classify the the amount of season passes usable within a year under the current liability and the remainder value of season passes that would be used after after June 30, 2021 as non-current liability.
current liability=$41.9 million+ $61.9 million=$103.80 million
non-current liability=$97.7 million
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Business
12 questions please help!!
Answers
Answer:
Fill in the blanks
Explanation:
Answer: 1. Unsecured loans 2. Business credit card 3. Unsecured loan 4. Small Business Investment Companies 5. Reserve Fund 6. Routine 7. Operating costs 8. Secured loan 9. Commercial Debt Financing 10. Small Business Administration 11. Sound 12. Venture Capital Firm
Explanation:
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT?
Answers
All of the following, with the exception of conditions, are required.
Describe insurance.One party will agree to compensate another in the event of a certain loss, damage, or injury in exchange for a fee in order to safeguard oneself from financial loss. It is a risk management technique that is typically used to guard against the danger of a hypothetical loss that may or may not materialise.
An underwriter, insurer, firm, or carrier is a company that provides insurance. A person or organisation that obtains insurance is known as a policyholder, whereas a person or organisation that the policy protects is known as an insured.
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When President Obama was President he had discussed raising income taxes for individuals earning over \( \$ 250,000 \) in income. Explain how these higher income taxes will affect the aggregate demand
Answers
The higher income taxes for individuals earning over $250,000 in income would affect the aggregate demand in the following ways.
Aggregate demand is the total amount of goods and services that consumers, businesses, the government, and foreigners are willing to buy at different price levels. Aggregate demand is influenced by several factors, including government policies like taxes. When President Obama was President, he had discussed raising income taxes for individuals earning over $250,000 in income, and this could impact aggregate demand.The impact of higher income taxes on aggregate demand is that people will have less disposable income to spend.
With less disposable income, consumers would have less money to spend on goods and services, leading to a decrease in aggregate demand. If aggregate demand decreases, businesses will have to lower their prices, which may lead to reduced production and a decrease in employment.The decrease in the demand for goods and services would also affect businesses, and they may have to lay off workers or reduce their work hours. The reduction in the work hours of employees could also lead to a decrease in their income.
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what is the most useful thing that a marketer needs to know to learn what customers need?
Answers
The most useful thing for a marketer to learn what customers need is to understand their customer base. This means doing research on their target demographics such as their age, gender, income, location and interests.
Marketers should also pay attention to customer feedback, both positive and negative, to better understand what customers want. In addition, marketers should use analytics to track customer behavior and preferences over time to better understand what customers need. Finally, marketers should use surveys and focus groups to gain insight into customer needs and preferences. All of these methods can help marketers better understand what customers need and enable them to create more effective marketing campaigns and strategies.
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3. The owner of a specialty delicatessen buys baskets, decorates and fills them with food items, and
sells them as one of the products in the shop. The entrepreneur sells an average of 130 baskets a
month The basket supplier charges $0.50 per basket. The entrepreneur would like to reduce his
variable costs and has found a basket supplier who will charge only $0.40 per basket. How much
will the delicatessen owner save in a year by changing suppliers?
Answers
Answer:
$156
Explanation:
he old price per basket is $0.50 per basket
the new supplier has a price of $0.40 per basket
Savings per basket is $0.10 ($.50- $0.40)
The average sales per month are 130 baskets.
The average savings per months will be
=$0.10 x 130
=$13
yearly savings will be
=$13 x 12 months
=$156
5) Determine the Stakeholder and system requirements definition. 6) Show how Cognitive work analysis is applied to describe product requirements 7) System definition. 8) Show how ethical considerations and standards fit into your system. continuation for the mobile x ray machine assignment
Answers
The mobile X-ray machine assignment involves defining stakeholder and system requirements, applying cognitive work analysis for product requirements, system definition, and integrating ethical considerations and standards.
In the context of the assignment on the mobile X-ray machine, the following steps are outlined:
Stakeholder and system requirements definition: This step involves identifying the stakeholders who will be affected by the mobile X-ray machine and determining their specific requirements. Stakeholders may include patients, medical professionals, technicians, regulatory bodies, and administrators. The system requirements encompass the functional, performance, and operational characteristics needed to meet the stakeholders' needs and expectations.
Cognitive work analysis for product requirements: Cognitive work analysis is applied to understand the cognitive processes and activities involved in operating the mobile X-ray machine. This analysis helps in identifying the cognitive requirements such as decision-making, perception, attention, and workload management. These findings are then used to describe the specific product requirements that support efficient and effective cognitive work.
System definition: System definition involves outlining the overall structure and components of the mobile X-ray machine system. It includes the hardware, software, interfaces, data storage, communication capabilities, and user interfaces necessary for its functioning.
Ethical considerations and standards: Ethical considerations play a crucial role in the design and use of medical devices like the mobile X-ray machine. It is essential to adhere to ethical guidelines, privacy regulations, data security measures, and industry standards to ensure patient safety, confidentiality, and overall ethical practice. Integrating these considerations and standards into the system design helps to create a trustworthy and reliable mobile X-ray machine.
By following these steps, the stakeholders' requirements can be effectively defined, the cognitive aspects of the system can be addressed, and ethical considerations can be integrated into the design and operation of the mobile X-ray machine.
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