Answer each of the following questions based on this scenario:
A decrease in the supply of in building materials (shortage) means that construction companies cannot get enough materials to complete all their projects. The owners of construction companies in Fiction Town have a choice between these two options:
To lay off (temporarily fire) 10% of their least experienced workers.
To reduce the hours of all employees by 5 hours a week, meaning they will be paid for 5 fewer hours of work.
What happens to the average income of people who are employed as construction workers?
The owners of the companies make profit from the payments made on their construction projects. What happens to the income of the owners?
Assume that construction workers are counted as part of the average income in all of Fiction Town. What happens to the average income of people there? Why?
Answers
What happens to the average income of people who are employed as construction workers is reduced by 10 percent.
The owners of the companies make profit from the payments made on their construction projects. What happens to the income of the owners is a balance on the income of the owners of the companies and by extension, the owners have or experience an increase in the profit.
Assume that construction workers are counted as part of the average income in all of Fiction Town. What happens to the average income of people there is that there would be a reduction in the average income of the people of Fiction Town.
This is because, if the construction workers were fired, then there will be lesser workers to be counted as part of the average income. in the same vein, if the hours of all employees were to be reduced, then, their earnings will also be reduced and therefore will affect the average income of all Fiction Town.
What happens when hours of employees are reduced?When hours of employees are reduced, it decreases one's expenses and increases profits. Nevertheless, it may could result to lost sales or an exodus of employees. Reduction of workers' hours may resulted into a lost "opportunity cost" of lost sales. With reduction of employees' working hour, one may lose a potential sale to a competitor, especially provided the business climate suddenly improves.
Therefore, the correct answer are as given above. When hours of employees are reduced, it lowers one's operating expenses and raises profits.
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Related Questions
Why would Alex Stamos want security researchers to focus on fixing vulnerabilities rather than finding them?
Answers
Explanation:
Alex Stamos attended a security conference. This conference was attended by the security professionals, corporations and government entities. Here, Alex Stamos made an important speech to protecting and fixing the vulnerabilities. He urged that the main aim of their should be to protect the matters or the real issues of the users. This may include preventing hacking of the critical infrastructure, the voting machines, personal data of the users are some of the important matters.
A Supermarket in Alabama occasionally receives a shipment of live shrimp from New Orleans. Seventy-five percent of the
time the store will place an ad and sell out of its shipment. The store advertises the availability of shrimp for 82 percent of the
shipments. What is the probability that the store will sell an entire shipment if it advertises? Carry answer to the nearest
thousandths
Answers
The probability that the store will sell an entire shipment if it advertises is mathematically given as
P(S / A)=90.36
This is further explained below.
What is the probability that the store will sell an entire shipment if it advertises?Generally,
P(A and S)=0.75
[tex]\mathrm{P}(\mathrm{A})=0.83[/tex]
Joint probability :
[tex]P(S and A)=P(S / A) * P(A)$[/tex]
[tex]$0.75=\mathrm{P}(\mathrm{S} / \mathrm{A}) * 0.83$[/tex]
[tex]\mathrm{P}(\mathrm{S} / \mathrm{A})\\\\=0.75 / 0.83\\\\=0.9036=90.36 \%[/tex]
P(S / A)=90.36
In conclusion, The probability that the store will sell an entire shipment if it advertises is
P(S / A)=90.36
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People invest Group of answer choices to increase future consumption. to make a lot of money. so they can buy things now. to keep up with the times.
Answers
Answer:
People invest:
to increase future consumption.
Explanation:
Investments generate increased returns. These returns add value to the pool of an investor's money which can be used to increase future consumption. Investments are important because they increase productivity of value. The increased value will be future use. For example, if A invests his savings of $5,000 which yields an annual return of $1,000 (or 20%) ROI, and the investment is left for 5 years, by the end of 5 years, A will have $10,000. This implies that he has more money to spend than in the previous five years. A can now spend more $5,000 than he could have spent five years' ago.
Derek has the opportunity to buy a money machine today. The money machine will pay Derek $13,751.00 exactly 12.00 years from today. Assuming that Derek believes the appropriate discount rate is 4.00%, how much is he willing to pay for this money machine?
Answers
Answer:
$8,588.83
Explanation:
To determine the amount that Derek would pay for the money machine, we are to calculate the present value of the lump sum to be received in 12 years.
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 11 = 0
Cash flow in year 12 = $13,751.00
I = 4%
Present value = $8,588.83
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
1.2 Advise businesses on factors to be considered when designing presentation.
Answers
Mastering your subject and learning it.
Creating a plan and considering storytelling.
Your oral presentation needs preparation and practice.
Throughout the lecture, be relaxed.
What aspects are thought of when designing a presentation?They consist of the presentation's goal, the topic, the audience, the location or setting, the hour of the day, and the talk's duration.
What should I keep in mind when giving a business presentation?Immediately establish your credibility.
Early on in the presentation, include a goal.
Don't be shy with the supporting material.
Start each distinct idea with a strong quote or image.
Rhetorical or Thought-Provoking Questions
Make Surprising Claims.
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Senbet Ventures is considering starting a new company to produce stereos. The sales price would be set at 1.5 times the variable cost per unit. The Variable Cost per unit is estimated to be $2.50. The total fixed costs are estimated at $126,000. How many stereos would the company be required to sell in order to make a profit of $150,000
Answers
Answer:
the break even point in units in order to make a profit is 220,800 units
Explanation:
The computation of the break even point in units in order to make a profit is shown below:
Break even point in units is
= (Fixed cost + profit) ÷ (Selling price per unit - variable cost per unit)
= ($126,000 + $150,000) ÷ ($2.50 × 1.5 - $2.50)
= $276,000 ÷ ($3.75 - $2.50)
= 220,800 units
hence, the break even point in units in order to make a profit is 220,800 units
Proof that an entrepreneur is certified to work in a specific field of business is a ____.
Answers
A license is evidence that an entrepreneur is qualified to work in a particular industry.
Are all business owners considered entrepreneurs?It is someone who takes chances in order to succeed. Although "company owner" and "entrepreneur" are sometimes used interchangeably today, many business owners today are not entrepreneurs since they are not actively chasing "new ideas. Business owners and entrepreneurs have very distinct problems to deal with.
What part does the entrepreneur play?A person who establishes and expands a firm using their original ideas is an entrepreneur. In addition to earning money as their firms expand, entrepreneurs serve important roles. An entrepreneur chooses a market need in their neighborhood, develops a business concept, and takes the initiative to launch their enterprise.
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Finish the sentence
A ____ is a small piece of ownership in a company
A. Mutual Fund
B. Derivative
C. Bond
D. Stock
Answers
______ The Financial Accounting Standards Board (FASB) is the primary organization responsible for setting accounting standards in the United States, known as Generally Accepted Accounting Principles (GAAP).
Answers
True
The Financial Accounting Standards Board (FASB) is an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States, following generally accepted accounting principles (GAAP).
Purple Rose Corporation reported pretax book income of $500,000.
Tax depreciation exceeded book depreciation by $300,000.
In addition, the company received $250,000 of tax-exempt life insurance proceeds.
The prior-year tax return showed taxable income of $100,000.
Compute Purple Rose's current income tax expense or benefit.
Answers
Answer: $68,000
Explanation:
Let us assume that we are given a tax rate of 34% to use in computing the question. Therefore, Purple Rose's current income tax expense or benefit will be:
Pre-tax book income = $500,000
Less: Tax depreciation = $300,000
Net Income = $500,000 - $300,000 = $200,000
Current income tax expenses at 34% will then be:
= 34% × Net income
= 34/100 × $200,000
= $68,000
Metlock Company has identified that the cost of a new computer will be $44000, but with the use of the new computer, net income will increase by $5000 a year. If depreciation expense is $3000 a year, the cash payback period is:_______
a. 22.0 years.
b. 5.5 years.
c. 8.8 years.
d. 14.7 years.
Answers
Answer:
c
Explanation:
Cash payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.
Cash payback period = amount invested / cash flows
Cash flows = net income + depreciation = $5000 + $3000 = $8000
$44,000 / $8,000 = 5.5 years
One important way in which banks make economic growth possible is by
A)
selling savings bonds.
B)
cashing payroll checks.
C)
lending money to business startups.
D)
offering checking and savings accounts.
Answers
Answer:
c). Lending money to business startups.
Explanation:
Banks receive deposits from customers, retains a small fraction, and loan out the big proposition to other customers. This way, banks pull together resources for businesses and households to borrow for consumption and expansion. Therefore, banks are intermediaries for the supply and demand for credit.
Banks help in economic development by availing capital for start-ups and growth through loans. They use customers' deposits to create credit facilities for businesses.
If a firm issues debt with no protective covenants in the indenture then the firm's debt will probably be issued at _____ similar debt with protective covenants.
a. a higher interest rate than
b. a lower interest rate than
c. an interest rate equal to that of
d. a slightly higher interest rate than
Answers
Answer: b. a lower interest rate than
Explanation:
A protective convenant is also referred to as a restrictive covenant and it is referred to as an agreement whereby a particular company is restricted from doing certain things while a contract is still ongoing.
In this case, when a firm issues debt with no protective covenants in the indenture then the firm's debt will probably be issued at lower interest than similar debt with protective covenants. The reason for this is that the lender is protected when there is a convenant which ultimately lower the cost of debt.
Your sister turned 35 today, and she is planning to save $20,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after she retires? Her first withdrawal will be made at the end of her first retirement year.
Answers
Answer:
She can spend $162,114.58 at the end of each period before she can exhaust the amount.
Explanation:
She will save up to $1,889,215.73 by saving $20,000 per year for 30 years, making the first deposit at the end of a year from today.
FV (Future Value) $1,889,215.73
PV (Present Value) $248,180.82
N (Number of Periods) 30.000
I/Y (Interest Rate) 7.000%
PMT (Periodic Payment) $20,000.00
Starting Investment $0.00
Total Principal $600,000.00
Total Interest $1,289,215.73
She can can retrieve $162,114.58 at the end of each period to reach the future value of $0.00.
FV (Future Value) $-0.00
PV (Present Value) $-0.00
N (Number of Periods) 25.000
I/Y (Interest Rate) 7.000%
PMT (Periodic Payment) $-162,114.58
Starting Investment $1,889,215.73
Total Principal $-2,163,648.74
Total Interest $2,163,648.74
What is statement of retained earnings?
Answers
Answer:
A statement of changes in equity and similarly the statement of changes in owner's equity for a sole trader, statement of changes in partners' equity for a partnership, statement of changes in shareholders
Answer:
it is a financial statement prepared by corporation s that details changes in the volume of retained earnings over some period.
Explanation:
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if the inflation rate is positive, purchasing power is _______. The situation is reflected in the ______ rate of return on an investment, which will be ______ the ______ rate of return.
Answers
Answer:
If the inflation rate is positive, purchasing power is __reduced_____. The situation is reflected in the __low____ rate of return on an investment, which will be __reducing____ the __market____ rate of return.
Explanation:
Inflation is the general reduction in the value of a currency's purchasing power. It happens when more money is used to buy the same quantity of a good or service than was purchased previously. A currency's purchasing power is the value of the currency in terms of the goods or services that it can buy. Three factors reduce the purchasing power of a currency. They are government regulations, inflation, and disasters. On the other hand, deflation and technological innovations increase the currency's purchasing power.
Answer:
If the inflation rate is positive, purchasing power is reduced. This situation is reflected in the real rate of return on an investment, which will be less than the nominal rate of return.
Explanation:
I got it right on plato/edmentum.
An Ag journalism firm always orders 50 cases of paper from their office supply company. They incur an annual holding cost of $15 per case and have an ordering cost of $25 each time they place an order. If their annual demand is 480 cases, how much could they save annually by switching to their economic order quantity?
a. $25
b. $40
c. $15
d. $80
Answers
Answer:
a. $25
Explanation:
Annual requirement = 480 units
Number of orders per year = Annual requirement / Order size per order
= 480 / 50
= 9.6
= 10
So, total ordering cost = Number of orders x ordering Cost per order
= 10 x $25
= $250
Carrying cost of average inventory = Order size / 2 x Carrying cost per unit per annum
= 50 / 2 x $15
= $375
So, Total cost = Ordering cost + Carrying cost
= $250 + $375
= $625
Economic Order Quantity = Square Root of ( 2 x Annual demand x Ordering cost per order / Carrying cost per unit per annum )
= Square Root of ( 2 x 480 x $25 / $15 )
= Square Root of ( 1,600 )
= 40
Number of orders = 480 / 40 = 12 orders
So, Ordering cost = 12 x $25 = $300
Carrying cost of average Inventory = 40 / 2 x $15 = $300
So, Total cost of Inventory = $300 + $300 = $600
So, Cost savings = $625 - $600 = $25 per annum
Digital Fruit is financed solely by common stock and has outstanding 37 million shares with a market price of $10 a share. It now announces that it intends to issue $280 million of debt and to use the proceeds to buy back common stock. There are no taxes. a. What is the expected market price of the common stock after the announcement
Answers
Answer:
Market price is unaffected by announcement
Explanation:
This question says that the company has announced intentions to issue $289 million of debt with intentions of buying common stock with proceeds
Price per share has been given as $10. The market price of the stock would not get affected by this announcement.
I have gone ahead to help you calculate the buyback, market value and debt ratio.
Buyback= $280/10 = 28 million shares
Market value = (37-28)*10 + 280 = 370 million
Debt ratio = 280/370 = 76%
Jones Corporation purchased a patent for $600,000 on September 1, 2014. It had a useful life of 10 years. On January 1, 2016, Jones spent $120,000 to successfully defend the patent in a lawsuit. Jones feels that as of that date, the remaining useful life is 4 years. What amount should be reported for patent amortization expense for 2016
Answers
Answer:
$160,000
Explanation:
Calculation for What amount should be reported for patent amortization expense for 2018
First is to calculate the Amortization amount
Amortization=$600,000-[($600,000/10 years)x(4/3)
Amortization=$600,000-$80,000
Amortization=$520,000
Now let calculate amount that should be reported for patent amortization expense for 2018
2018 Patent amortization expense=($520,000+$120,000)/4years
2018 Patent amortization expense=($520,000+$120,000)/4years=90,000
2018 Patent amortization expense=$640,000/4years
2018 Patent amortization expense=$160,000
Therefore What amount should be reported for patent amortization expense for 2018 is $160,000
Turner Corporation acquired two inventory items at a lump-sum cost of $100,000. The acquisition included 3,000 units of product LF, and 7,000 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Turner sells 1,000 units of LF, what amount of gross profit should it recognize
Answers
Answer:
The amount of gross profit Turner Corporation should recognize is $20,000.
Explanation:
The following are given in the question:
Lump-sum cost = $100,000
Units of LF acquired = 3,000
Units of 1B acquired = 7,000
LF price per unit = $30
1B price per unit = $10
Unit of LF sold = 1,000
Therefore, we have:
Share of LF in the Lump-sum cost = (Units of LF acquired / (Units of LF acquired + Units of 1B acquired)) * Lump-sum cost = (3,000 / (3,000 + 7,000)) * $100,000 = $30,000
LF cost per unit = Share of LF in the Lump-sum cost / Units of LF acquired = $30,000 / 3,000 = $10
LF total revenue = Unit of LF sold * LF price per unit = 1,000 * $30 = $30,000
LF cost of goods sold = Unit of LF sold * LF cost per unit = 1,000 * $10 = $10,000
LF gross profit = LF total revenue - LF cost of goods sold = $30,000 - $10,000 = $20,000
Therefore, the amount of gross profit Turner Corporation should recognize is $20,000.
The accounting equation for ying company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?
Answers
Answer:
The company paid an amount due on a credit card
Explanation:
Technically there was debt in the company's credit card which then caused a decrease in assists and equity because the company in all wasn't reliable so whatever was still getting paid off got taken from the company's money.
According to our textbook, mass media have at least six functions. Which function involves media providers affecting or controlling which information is transmitted to their audiences?
Answers
According to our textbook, mass media have at least six functions. The function involves media providers affecting or controlling which information is transmitted to their audiences is called "Information and Education"
What is Mass Media?
The term "mass media" refers to a wide range of media technologies that reach a broad audience through mass communication.
The technology used for this communication include a range of channels. Broadcast media, which includes cinema, radio, recorded music, and television, disseminate information electronically.
The six functions of Mass Media are:
Education and informationInteraction.Recreation.Political SensitivityTransmission of Cultural ValuesDevelopment CatalystLearn more about Mass Media:
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Would Oleck’s break-even point increase or decrease if it made the change? Calculate old and new break-even points
Answers
Incomplete question. The full question read;
Oleck Inc. produces stereo components that sell at P = $100 per unit. Oleck’s fixed costs are $200,000, variable costs are $50 per unit, 5,000 components are produced and sold each year, EBIT is currently $50,000, and Oleck’s assets (all equity financed) are $500,000. Oleck can change its production process by adding $400,000 to assets and $50,000 to fixed operating costs. This change would (1) reduce variable costs per unit by $10 and (2) increase output by 2,000 units, but (3) the sales price on all units would have to be lowered to $95 to permit sales of the additional output. Oleck has tax loss carry-forwards that cause its tax rate to be zero, it uses no debt, and its average cost of capital is 10%.
Would Oleck’s break-even point increase or decrease if it made the change? Calculate old and new break-even points
a) Old break-even point = units
b) New break-even point = units
c) Increase or decrease?
Answer:
a) 4,000 units
b) 4,545 units
c) increase
Explanation:
To find the break-even point based on units, we use the formula = Total Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit).
Old break-even point:
The Total fixed cost = $200,000The Revenue per unit = $100The Variable Cost per Unit= $50 - $10 = $40∴ Old break-even point (units) = [tex]\frac{200,000}{100-50}[/tex] = 4,000 units
New break-even point:
The Total fixed cost = $200,000 + $ 50,000 = $250,000The Revenue per unit = $100 redeced to $95 = $95.The Variable Cost per Unit= $50 - $10 = $40∴ New break-even point (units) = [tex]\frac{250,000}{95-40}[/tex] = 4,545 units
Food King gathered the following information for the fourth quarter of 20X9: Budgeted sales for October $25,000 Monthly Expenses: Salary expense $1,500 Rent expense $1,000 Depreciation expense $400 Sales commissions 10% of sales Advertising expense 8% of sales Miscellaneous expense 5% of sales Monthly sales are expected to increase by 5% each month. Prepare an operating expense budget for the fourth quarter (for three separate months) of 20X9.
Answers
Answer and Explanation:
The presentation of the operating expense budget is presented below:
Particulars October November December
Budgeted sales $25,000 $26,250 $27,562.5
($25,000 × 1.05) ($26,250× 1.05)
Salary Expense $1,500 $1,500 $1,500
Rent expense $1,000 $1,000 $1,000
Depreciation
expense $400 $400 $400
Sales Commission $2,500 $2,625 $2,756
($25,000 ×10%) ($26,250 × 10%) ($27,562.50 × 10%)
Advertising expense $2,000 $2,100 $2,205
($25,000 ×8%) ($26,250 × 8%) ($27,562.50 × 8%)
Miscellaneous expense $1,250 $1,312.5 $1,378
($25,000 ×5%) ($26,250 × 5%) ($27,562.50 × 5%)
Total Monthly expenses $8,650 $8,937.5 $9,239
Green Leaf Corp. sells $300,000 of bonds to private investors. The bonds mature in five years, have a 6% coupon rate, and interest is paid semiannually. The bonds were sold to yield 4% (i.e., the discount rate or the required rate of return is 4%). What proceeds does Green Leaf receive from investors
Answers
Answer:
$326,710.93
Explanation:
The approaches I have chosen in determining the current bond price are a financial calculator and excel formula approaches as shown thus:
Financial calculator:
N=5( number of annual coupons in 5 years left to maturity)
I/Y=4( the yield on the bond)
PMT=18000 (annual coupon=face value*coupon rate=$300,000*6%)
FV=300000( face value which is $300,000)
CPT PV=-$326,710.93
Excel PV function:
=-pv(rate,nper,pmt,fv)
=-pv(4%,5,18000,300000)=$326,710.93
A company issues 8% bonds with a par value of $40,000 at par on January 1. The market rate on the date of issuance was 7%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:
Answers
Answer:
$1,600
Explanation:
Cash paid on 1 July is calculated as below:
Cash paid = Face value * Coupon rate *1/2
Cash paid = $40,000 * 8% * 1/2
Cash paid = $40,000 * 0.08 * 0.5
Cash paid = $1,600
Sandhill Corporation loaned $590000 to another corporation on December 1, 2020 and received a 3-month, 6% interest-bearing note with a face value of $590000. What adjusting entry should Sandhill make on December 31, 2020?
Answers
Answer: Debit Interest Receivable and credit Interest Revenue, $2950
Explanation:
Based on the information given in the question, we have to calculate the interest accrued and this will be:
= $590,000 × 6% × 1/12
= $590,000 × 0.06 × 0.08333
= $2949.882
= $2950 approximately
Therefore, the adjusting entry that Sandhill should make on December 31, 2020 will be to:
Debit Interest Receivable and credit Interest Revenue, $2950
The objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions. provide incentive for firms to maintain regulation emission levels. provide adequate incentive for firms to reduce their emissions by more. ensure firms must pay the pollution charge for all reduced emissions.
Answers
Answer:
provide adequate incentive for firms to reduce their emissions by more.
Explanation:
Pollution charge can be regarded as a tax imposed on firms based on the quantity of pollution emmitted to atmosphere by the firm. With imposition of pollution tax, profit-maximizing firm would have the incentive to look out for ways to reduce the firm's emissions provided the marginal cost required to reduce the emissions is not equal or more than the tax. It should be noted that the objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions provide adequate incentive for firms to reduce their emissions by more.
The objective of imposing a higher pollution tax is to ensure firms provide adequate incentives for firms to reduce their emissions by more.
A levy called a pollution tax is imposed on people who pollute or harm the environment. This tax's primary goal is to lessen harm to the environment. A component of the economic system intended to lessen pollution and its damaging effects on the environment is the pollution tax. Polluters are taxed for the harm their actions do to the environment and other people.
Pollution taxes include the carbon tax. Based on the amount of carbon that is released during combustion, it imposes a tax on the production, distribution, or use of fossil fuels.
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Expert power Group of answer choices is derived from organizationally conferred decision-making authority. arises from manager access, control, and distribution of information that is not freely available to everyone in an organization. is derived from referent power. is derived from leader capability and knowledge in a particular field.
Answers
Answer:
is derived from leader capability and knowledge in a particular field
Explanation:
The expert power is thinking with respect to a specific person that contains the knowledge level or the specific level but the other person dont have
Also the person have the expertise in a specific field due to which the people around feel that the person powerful and give more values to his opinion
Therefore as per the given option, the last option is correct
The last step in the decision-making process is where you_____your decision, This helps you to look back on your decision and decide if you chose correctly or would do anything differently change differentiate complain evaluate I will mark you brainless plz help
Answers
Answer:
In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision.
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