Answer:
Unemployment results in a waste of economic resources such as the productive labor force and thereby affect the long run growth potential of the economy.
Mitchell Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Mitchell Bicycle Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $185 $3,700 March 5 Sale ($270 each) 15 March 9 Purchase 10 205 2,050 March 17 Sale ($320 each) 8 March 22 Purchase 10 215 2,150 March 27 Sale ($345 each) 12 March 30 Purchase 9 235 2,115 $10,015 For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase. Required: 1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. 2. Using FIFO, calculate ending inventory and cost of goods sold at March 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at March 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31. 5. Calculate sales revenue and gross profit under each of the four methods. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? 7. If Mitchell Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment.
Bikes from initial inventory are included March 5 sale, a March 17 outsourcers bikes from March 9 sale, or Mar 27 sale includes four bikes from the initial balance & eight bikes from March 22 purchase. 1/2 is need.
Now what you mean by inventory?All the products, materials, and things that a company keeps on hand in anticipation of selling them to customers for a profit are referred to as inventory. Example: If a newspaper seller utilizes a vehicle to distribute newspapers to clients, just the newspapers will be deemed inventory.
What are the four different categories of inventory?Raw materials/components, WIP, final products, and MRO are the four main categories of inventory.
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When you include the purchase price and the interest, how much does the TV cost you in total?
The amount that the television would cost in total, given the interest and the purchase price, is $ 75.
How to find the total cost ?The total cost of the television can be found by adding up the various costs involved in acquiring the television. This includes the interest, the purchase price, and the cost of the television.
The interest is stated to be the sum of $ 10.
The purchase price is stated to be the some of $ 25.
The initial cost is stated to be $ 40.
The total cost of the television would therefore be :
= Total interest + Purchase price + Initial cost
= 10 + 25 + 40
= 35 + 40
= $ 75
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Full question is:
When you include the purchase price and the interest, how much does the TV cost you in total? Initially the cost was $40, interest is $ 10, and purchase price is $25.
define hedge fund economics.
Answer:
Financial partnerships
Explanation:
Hedge funds are financial partnerships that use pooled funds and employ different strategies to earn active returns for their investors. Hedge fund strategies include long-short equity, market neutral, volatility arbitrage, and merger arbitrage. They are generally only accessible to accredited investors.
2 Ashley Laughlin files as single on her tax return and earned weekly gross pay of $625. She does not make any retirement plan contributions. Ashley entered $4000 on
line 4b of Form W-4 and did not enter any information in steps 2 & 3 of the form
Federal income tax withholding=?
To calculate Ashley's federal income tax withholding, we need to consider her gross pay, filing status, and the number of allowances she claimed on her W-4 form.
What is Ashley Federal income tax withholding?Since Ashley files as single on her tax return, we will use the 2023 tax brackets for single filers to calculate her federal income tax withholding.
Step 1: Calculate Ashley's taxable income
To calculate Ashley's taxable income, we need to subtract her standard deduction from her gross pay:
Gross pay = $625 per week x 52 weeks = $32,500
Standard deduction for single filers in 2023 = $12,950
Taxable income = Gross pay - Standard deduction = $32,500 - $12,950 = $19,550
Step 2: Determine Ashley's tax bracket
Using the 2023 tax brackets for single filers, we can determine that Ashley's taxable income falls into the 12% tax bracket.
Step 3: Calculate Ashley's federal income tax withholding
To calculate Ashley's federal income tax withholding, we will use the IRS's Percentage Method Tables for Income Tax Withholding. We will use Table 1, which corresponds to Weekly Payroll Period and Single Filing Status, for the year 2023.
According to Table 1, the amount of federal income tax to withhold from $625 of weekly gross pay for a single filer with one withholding allowance and claiming no adjustments or extra withholding is $54.
Since Ashley did not provide any information in Steps 2 and 3 of her W-4 form, we will assume that she claimed one withholding allowance. Therefore, her federal income tax withholding for one week would be:
Federal income tax withholding = $54 x 1 = $54
So Ashley's federal income tax withholding for one week would be $54. However, this is just an estimate and her actual tax liability may be different depending on her overall tax situation.
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Marco went to Buffalo Wild Wings to watch a football game. Chicken wings there cost $0.75 each. Marco bought and ate 20 chicken wings. Afterwards, he regretted his decision and decided that next time he would buy fewer chicken wings. This means that
A) Marco’s marginal benefit from the 20th chicken wing was zero
B) Marco’s marginal benefit from the 20th chicken wing was negative
C) Marco’s marginal benefit from the 20th chicken wing was less than $0.75
Marco regretted his choice and decided to purchase less chicken wings the next time. Marco's marginal gain from the 20th chicken wings was therefore less than $0.75.
So, the correct option is C. A consumer's utmost willingness to pay for an additional commodity or service is known as the marginal benefit. It also refers to the additional pleasure or utility that a customer experiences after buying the extra commodity or service. As more units of the commodity or service are consumed, the marginal benefit for a consumer tends to decline. As more units are consumed, the user frequently experiences lower utility or satisfaction from consumption.
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How does racial wealth gap affect families
when paid during the tax year, which of the following may be deductible on Schedule A
Answer:
Deductions for state and local sales tax (SALT), income, and property taxes can be itemized on Schedule A.
Explanation:
10 roles of insurance in a business
Considering the benefits and importance of insurance, the ten roles of insurance in a business include "security and safety."
The other roles of insurance in a business are:Mitigation of riskProvision of insurance service by the insurance company Protection from unexpected lossesEase of getting loansProvision of social cooperationIt enhances saving habitsIt aids some contracts that require it.There are tax benefits.Promotion of trades and industry, etc.Hence, in this case, it is concluded that insurance plays various roles in business.
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Sadiya, who owns a dance studio, consistently reminds her employees that dance lessons are a luxury for customers, so they should be both informative and fun. By making these statements, Sadiya is:_________.
i. telling a narrative based on true events, which emphasizes a particular value.
ii. physically manifesting her organization’s core beliefs.
iii. exhibiting the values and norms of the local community.
iv. explicitly stating values and norms preferred by her organization.
Sadiya is explicitly stating these values by telling her employee specifically.
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometers. Ignore GST.
Required:
a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods
straight-line.
diminishing balance (depreciation rate has been calculated as 31%).
units of production (assume the van was driven 78,000 kilometers during the financial year).
b) Record the adjusting entries for the depreciation on 30 June 2021 using a diminishing balance method.
c) Show how the van would appear in the balance sheet prepared at the end of year 2 using the Straightline method.
Answer:
a.
Straight line method
This method gives a uniform depreciation figure over the lifetime of the asset. Formula is,
= ( Cost - Residual Value) / Useful life
= (52,000 - 12,000) / 4
= $10,000
Diminishing Balance Method
This method applies depreciation at a faster rate so that the assets depreciates faster in it's earlier years.
Formula is,
= Cost * Depreciation rate
= 52,000 * 31%
= $16,120
Units of Production
This method depreciates based on the usage of the asset vs the total capacity of the asset. Assuming the van was driven 78,000 kilometers during the financial year
Formula is,
= (( Cost - Residual value) * units for the year) / Estimated production capacity
= ((52,000 - 12,000)*78,000)/200,000
= 3,120,000 / 200,000
= $15,600
b.
Date
June 30 2021
DR Depreciation $11,123
CR Accumulated Depreciation $11,123
Working
June 30 2021 Depreciation
= ( Cost - 2020 Depreciation ) * 31%
= (52,000 - 16,120 ) * 31%
= 35,880 * 31%
= $11,123
c. Straight line depreciation is constant so Value at the second year using Straight line will be,
= Cost - 2020 Depreciation - 2021 Depreciation
= 52,000 - 10,000 - 10,000
= $32,000
Balance sheet excerpt,
Particulars Amount
Assets
Fixed assets
Vechicles $32,000
Over 1.5 million different species have been discovered on Earth, and scientists discover about 15,000 new species each year. These species are very different, ranging from bacteria and algae to whales and redwood trees. Select four characteristics that all of these species have in common.
A
All species have metabolic functions.
B
All species have cell walls.
C
All species are composed of cells.
D
All species reproduce.
E
All species use sunlight to make food.
F
All species require energy.
THE SUBJECT IS SCIENCE!!!!!!!
Characteristics that all of these species have in common:
All species have metabolic functions.All species are composed of cells.All species reproduce.All species require energy.How many species have been identified on Earth?2.13 million species were recognized on the earth in 2021. The distribution of 1.05 million insects, more than 11,000 birds, more than 11,000 reptiles, and more than 6,000 mammals is shown in the graph. These numbers may be a little high, especially for less well-known categories like plants or fungi.
86% of land-dwelling species and 91% of aquatic species, according to scientists, have not yet been thoroughly investigated. Researchers are always searching. Every year, some 18,000 new species are found. On our globe, there are an estimated 8.7 million plant and animal species. This indicates that a little more than 86 percent of terrestrial species and 91 percent of sea species have yet to be identified.
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assuming a conservative interest rate of 5.3 how much would you need to save each year to reach 105,000 in 14 years
To calculate how much you need to save each year to reach $105,000 in 14 years with a conservative interest rate of 5.3%, you can use the formula for compound interest. The formula for calculating compound interest is A = P(1+r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times the interest is compounded per year, and t is the time in years.
In this case, we know that the principal amount (P) is $0 (since we are starting from scratch), the interest rate (r) is 5.3%, the time (t) is 14 years, and we want to end up with $105,000 (A). We don't know the number of times the interest is compounded per year (n), so let's assume it's compounded annually.
Plugging in the values into the formula, we get:
A = P(1+r/n)^(nt)
$105,000 = $0(1+0.053/1)^(1*14)
Simplifying the formula, we get:
105,000 = 0(1.053)^14
105,000 = 0(2.094)
105,000 = 0
This is obviously incorrect. The reason for this is that we need to calculate how much we need to save each year, not the starting principal. To do this, we need to rearrange the formula:
A = P(1+r/n)^(nt)
P = A/(1+r/n)^(nt)
In this case, we want to find P, which is the amount we need to save each year. Plugging in the values, we get:
P = A/(1+r/n)^(nt)
P = 105,000/(1+0.053/1)^(1*14)
P = 105,000/1.946
P = $53,930.50 (rounded to the nearest cent)
Therefore, to reach $105,000 in 14 years with a conservative interest rate of 5.3%, you would need to save $53,930.50 each year. Keep in mind that this is assuming the interest rate remains constant and there are no additional fees or charges.
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If people lost confidence in the government what kind of money would have the least value?
If people lost confidence in the government which would have the least value?
a) fiat money
b) representative money
c) commodity money
d) gold standard
Answer:
Fiat money
Explanation:
Fiat money is a type of money or currency that is used as money because it is issued and backed by the government but it does not have any intrinsic value.
It has no intrinsic value which means that it does not have any value of its own and it is maintained by the government. Therefore, If people lost confidence in the government the kind of money that would have the least value is fiat money
Shantel has a checking account balance of $318.59. She wrote a check to United farmers Market for $52.17. What is Shantel's new checking account balance?
Answer:
$266.42
Explanation:
$318.59-$52.17=$266.42
How would you resolve the issue Partnering - The Accounting software installation projects?
To resolve the issue Partnering Accounting software installation projects during the installation, the project manager project will have to;
contact expertise related to Accounting software installation to get their best views on the installation of the project, conduct a training sessions about the accounting software in every department partner with professionals on Accounting software installation.What is Accounting softwareAccounting software is computer software used to record, manage and analyze financial transactions of an organization that aid in maintaining accurate records report in compliance with tax regulations, that manage and state the financial report of the business at month or year end
The financial transaction of a business includes fixed asset management, accounts payable, expense management, revenue management, accounts receivable, billing and invoice management, budgeting etc.
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.
Even though the goal of a firm is to create wealth for its shareholders, there are times when ethical or strategic considerations outweigh the profit incentive, causing managers to reject investments with positive net present values. T/F
True. Even if a business's main goal is to maximize profits for its shareholders, there are occasions when ethical or strategic considerations trump the financial one, forcing management to forgo deals with good net present values.
Is a company's main goal to maximize profits or the wealth of its shareholders?The company's top priority is consistently increasing shareholder wealth, which produces earnings to increase the dividends paid on each ordinary share. A sign of greater shareholder wealth is the higher price of shares traded on the stock market.
Is it always morally right for a business to attempt to maximize profits for its shareholders?A corporation's desire to increase profits for the benefit of its stockholders is not always morally good. For some businesses, a commitment to morality is insufficient to boost earnings. For tiny enterprises or organizations that are dealing with particular issues, ethics is insufficient.
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Inflation is measured by tracking the prices of
Inflation is measured by tracking the prices of goods and services
Question 1 You recently inherited investments from a relative. What resource should you use to validate the permissibility of the investments?
Liquidity is the resource that you would have to use to validate the permissibility of the investments.
What is meant by the permissibility of the investments?The investments that the Employer has designated as acceptable for using Trust assets for investment and that the Trustee has approved are referred to as Permissible Investments. In the Service Agreement, a list of the Plan's permitted investments must be included.
A financial asset is an investment in finance if it is purchased with the expectation that it will increase income or be sold at a profit at a later date.
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The coupon rate on a debt issue is 9%. If the yield to maturity on the debt is 8%, what is the after-tax cost of debt in the weighted average cost of capital if the firms tax rate is 35%?
The after - tax cost of debt, based on the firm's tax rate and the yield to maturity is 5.2 %
How to find the after - tax cost of debt?The after - tax cost of debt refers to the interest rate paid on the debts that a company has, after the tax has been adjusted for. This is an important rate because debt is a tax deductible expense.
The after - tax cost of debt is found by the formula:
= Cost of debt x ( 1 - tax rate)
The cost of debt is the yield to maturity.
The after - tax cost of debt is:
= 8 % x ( 1 - 35%)
= 5.2%
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The brand changes form part of a strategic plan the group conceived in September last year called Ekuseni (the Zulu word for “dawn”)”
“Pick n Pay and its new CEO are taking the fight to competitors in a strategy..”
“Pick n Pay yesterday launched a new strategic plan…”
Evaluate the proposed strategy that Pick n Pay is planning to implement, including in your evaluation, the potential risks attached to the proposed new strategy
Pick n Pay's proposed strategy, known as Ekuseni, aims to implement changes in their brand and take the fight to competitors. The strategy, conceived in September last year, focuses on strategic planning and was launched recently. While the strategy holds potential for success, there are risks associated with its implementation.
1. Pick n Pay's proposed strategy, called Ekuseni, includes changes to their brand and a competitive approach to rivals. This strategic plan was conceived in September last year, with the term Ekuseni referring to "dawn" in Zulu.
2. The strategy aims to revamp the brand image and position Pick n Pay as a strong competitor in the market. By taking the fight to competitors, the company intends to gain a competitive edge and attract more customers.
3. The launch of the new strategic plan indicates that Pick n Pay is committed to implementing this strategy and achieving its goals. It demonstrates the company's intention to adapt and stay relevant in the evolving market.
4. However, like any strategic plan, there are potential risks associated with its implementation. These risks include customer resistance to changes in the brand, increased competition from rivals, and potential financial strains due to the cost of rebranding and marketing efforts.
5. Customer resistance is a common risk when brands undergo significant changes. If the proposed strategy doesn't resonate with Pick n Pay's target market, it could lead to a decline in customer loyalty and affect sales.
6. Additionally, taking the fight to competitors may trigger retaliatory actions from rival companies. This could result in intensified competition, price wars, and potential market share loss for Pick n Pay.
7. Finally, implementing a new strategic plan involves financial investments. The cost of rebranding, marketing campaigns, and operational changes may strain the company's resources, potentially impacting its financial stability.
In conclusion, while Pick n Pay's proposed strategy holds promise for the company's growth and competitiveness, there are risks involved. Proper planning, market research, and effective execution will be crucial to mitigating these risks and ensuring the success of the strategy.
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The date is January 10, 2023 and Maryton Hotels’ CFO George Smith is looking with dismay at his company’s financial performance during 2022. Already facing stiff completion from other hotel changes as well as Airbnb, Maryton had run an operating loss in 2020 and 2021 and had responded by engaging in a broad effort to refresh hotel décor and update wi-fi and other infrastructure. The effort concluded in late 2021 and seemed to be showing success in early 2022. However, a variant of the COVID-19 virus reached pandemic status in mid-2022, and business and leisure travel fell off considerably. Occupancy rates at Maryton properties plunged, producing a $10 million pre-tax net operating loss for 2022. Maryton’s CEO has asked that George “work some of his accounting magic” to “put a positive spin on things” and minimize Maryton’s net loss, hoping to calm the concerns being voiced by investors and lenders.
Required:
1. Assume maryton has a 25% tax rate. Prepared a journal entry that reports the tax effects of its NOL. Assuming that no valuation allowance in necessary and that the CARES Act does not apply. Calculate Maryton’s net income or net loss under that scenario.
2. Repeat requirement 1, but now assume that a valuation allowance in necessary that completely offsets any new deferred tax asset that Maryton is adding as a result of its NOL carryforward.
3. Consider your answers to requirement 1 and 2. What “accounting magic” might Smith work to minimize Maryton’s net loss?
4. Does Smith face an ethical dilemma? If Smith chooses to “put a positive spin on things” and minimize Maryton’s net loss, who could benefit, and who could be injured?
Answer:Accounting treatment of tax,
income tax-2.5 M
profite and loss-2.5 M
deferred tax asset-2.5 M
Profit and loss-2.5 M
ACCOUNTING MAGIC IN THIS SCENARIO TO MINIMIZE THE RISK, THE COMPANY HAVE TO DEFERRED ASSES JUST REASON BEING THE COMPANY SHOULD ADJUST DEFERRED TAX ASSET IN UPCOMING YEARS PROFITS
Explanation:
ACCOUNTING MAGIC IN THIS SCENARIO TO MINIMIZE THE RISK, THE COMPANY HAVE TO DEFERRED ASSES JUST REASON BEING THE COMPANY SHOULD ADJUST DEFERRED TAX ASSET IN UPCOMING YEARS PROFITS
Alejandro is journalist who thinks that a company is dumping its waste in a local river even though this goes against several regulations. Give two examples of sources that he could use to investigate this story.
Answer:
By consulting people around the area
Explanation:
consulting people who live there is a great chance of investigating about the issue
Answer:
he could ask people who live near the area if they've seen anything.
Explanation:
Which type of company only spends money when absolutely necessary?
While posting from cash receipts journal to ledger , Which account should be posted individually a)cash b)sundry account c)sales discount d)sales e)all
Cash is the account that needs to be posted separately when publishing from the cash receipts journal to the ledger. Thus, option (A) is accurate.
What is meant by a ledger ?There are three different kinds of ledgers: general, debtor, and creditor. Journal entries are accumulated in the general ledger. All journals are tallied and uploaded to the general ledger each month.
The various transactions mentioned in each journal are therefore organized and summarized in the General Ledger. Information from the sales diary is accumulated in the Debtors Ledger.
The Debtors Ledger's function is to reveal which customers owe money to the company and how much. Information from the purchasing journal is accumulated in the creditors ledger. Knowing which suppliers the company owes money to and how much is the goal of the creditors ledger.
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List TWO consequences for a company if they receive a qualified audit opinion
Assume you decide you should invest at least part of your money in large-capitalization stocks of companies based in the United States. What are the advantages and disadvantages of choosing the Bledsoe Large-Company Stock Fund compared to the Bledsoe S
Joseph and Krystal are part of your social group. They joined Missile’s Financial Services together as middle managers. Each one, reports to a different senior manager. These senior managers report to the Managing Director. Once a month after payday, Joseph, Krystal and other members of the social group all try to have lunch together.
Joseph is very distressed. ‘I’ve had an awful week and this morning was the worst!’ He recounts what happen between himself and Nicholas, his manager.
‘Nicholas and I were to meet with a new supplier to finalize a contract. I have been dealing with the supplier all this time, over two and a half months and we just needed to finalize the costing. We had reached an agreement about the cost that both of us were comfortable with. For the past two weeks, I have been trying to get Nicholas to look at the contract and agree the figures etc. We really need this guy’s company. They are fast and have a great reputation for products and services. The price is good and they are willing to customize the stationary, with no additional cost to us. Anyway, Nicholas was always too busy to meet. I emailed him the contract and my teams thoughts on how we should proceed hoping he would read it.’ My team consists of the Accounts/Finance Manager, Inventory Manger, Legal, Research & Development, Public Relations Manager and I, and we meet at different times and days, whether collectively or selectively.
‘Anyway we, Nicholas and I, met with the supplier this morning. We are going through the contract, the next thing I know Nicholas says, ‘This won’t work for us. The cost is too high. Where did these calculations come from?’ ‘If the floor had opened up and swallowed me I could have not been more embarrassed. I mean I spent three weeks, working on it with the team Accounting, PR and Legal! Joseph shaking his head continued, ‘he just took over the conversation. I mean we got the contract signed but in the end all that happened was that the figures were rearranged we still end up paying the same.’ ‘I am tired of this foolishness. He stays locked in his office on his cell every day. Only God knows what he does in there.’
1. Do you believe that Nicholas is an unethical manager? Justify your response by choosing one of the ethical decision making concepts outlined in unit 2 to argue/support your writing.
2. From the chosen ethical decision making concept selected by you in question 1, show its relationship to any one of the variables in an analytical tool, outlined in unit 1, read.
1. Based on the information provided, it is not possible to ascertain whether Nicholas is an unethical manager. However, Joseph’s account of the situation raises some red flags about Nicholas’ behavior.
2. The chosen ethical decision-making concept is fairness, which is one of the key ethical principles in business.
1. Based on the information provided, it is not possible to ascertain whether Nicholas is an unethical manager. However, Joseph’s account of the situation raises some red flags about Nicholas’ behavior. It appears that Nicholas did not take the time to review the contract or the team’s thoughts, but still took over the conversation with the supplier and changed the figures. This behavior could be seen as a violation of the ethical principle of fairness, which involves treating others in a reasonable, equitable, and impartial way. Nicholas’ actions suggest that he did not give due consideration to the team’s input or their efforts to finalize the contract, which could affect their working relationship and trust in him as their manager.
2. The chosen ethical decision-making concept is fairness, which is one of the key ethical principles in business. Fairness is based on the idea of treating all stakeholders equitably and impartially, taking into account their needs, interests, and perspectives. In this case study, Nicholas’ actions appear to violate the principle of fairness by disregarding the efforts of Joseph and his team to finalize the contract, and making unilateral changes without adequate review or discussion.
To analyze this situation using an analytical tool, we can use the Stakeholder Mapping tool, which helps to identify and categorize stakeholders based on their level of interest and power. In this tool, stakeholders are divided into four categories: High power/high interest, High power/low interest, Low power/high interest, and Low power/low interest. In this case, Joseph and his team are the stakeholders with high power and high interest in the situation, as they are responsible for finalizing the contract.
Using the Stakeholder Mapping tool, we can see that Nicholas’ actions have the potential to undermine the trust and collaboration of high power/high-interest stakeholders, who are critical to the success of the project. Specifically, his actions may cause frustration, resentment, and loss of confidence in his management ability. This could result in a breakdown of communication and cooperation, which would ultimately affect the team’s performance and the overall success of the project. Therefore, it is important for Nicholas to consider the perspectives and input of all stakeholders, including those with high power and high interest, when making decisions that affect them. By doing so, he can ensure that his decisions are ethical, fair, and aligned with the needs of all stakeholders.
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If a perfectly competitive firm receives a marginal revenue of $10 for its product and the minimum average variable cost is $11, then the firm should, in the short run:
a.reduce the level of output its produces
b.increase the level of output it produces
c.neither increase nor decrease the level of output it produces
d.shut down
If a perfectly competitive firm receives a marginal revenue of $10 for its product and the minimum average variable cost is $11, then the firm should, in the short run shut down.
For a perfectly competitive firm, the marginal revenue tends to equal price and as well as the average revenue. So, this implies that the firm's marginal cost curve in its short-run supply curve for values is thus greater than the average variable cost. So, if the price drops below average variable cost, the firm shuts down.
So, a firm's total profit is maximized by the producing the level of output at which marginal revenue for the last unit produced will thus equal its marginal cost, or MR = MC.
Hence, option D is correct.
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Your company has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the information that is provided, which should you accept?
A B C E
Payback (years) 1 5 2 5
IRR 18% 20% 20% 12%
NPV (Millions) $40 $75 $35 $100
a. A
b. B
c. C
d. B and C
e. E
Answer:
The project to accept is:
e. E
Explanation:
a) Data and Calculations:
Cost of capital = 10%
Mutually Exclusive Projects:
A B C E
Payback (years) 1 5 2 5
IRR 18% 20% 20% 12%
NPV (Millions) $40 $75 $35 $100
b) Project E should be preferred over all the other projects. It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital. It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
1. What is the materials quantity variance for March?
2. If Preble had purchased 171,000 pounds of materials at $7.20 per pound and used 155,000 pounds in production, what would be the materials quantity variance for March?
3. What is the labor rate variance for March?
4. What is the labor efficiency variance for March?
5. What is the labor spending variance for March?
Labor efficiency variance = (Actual hour * Standard rate) - (Standard hour * Standard rate).
Labor efficiency variance = $404,600 F
What is Labor efficiency variance?By "efficiency of labor," we mean a worker's ability to produce more or better work, or both, over the course of a given amount of time.
1) Labor efficiency variance = (68,000 * $17) - ((30,600 * 3) * $17)
Labor efficiency variance = $1,156,000 - (91,800 * $17)
Labor efficiency variance = $404,600 F
2) Variance in direct labor worked divided by variance in labor efficiency
Variance in labor costs is $404,600 - $68,000.
Variance in labor costs = $336,600 F
3) Planned unit sold minus variable overhead equals variable manufacturing overhead cost.
Manufacturing variable overhead cost = 24,000 * $21
$504,000 is the variable manufacturing overhead cost.
4) Planned unit sold minus variable overhead equals variable manufacturing overhead cost.
Cost of variable overhead in production = 30,600 * $21
$642,600 is the variable manufacturing overhead cost.
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