The annual cash flows from the fixed-payment annuity are approximately [tex]$163,047[/tex] for the next 20 years.
The computation of yearly incomes or annuity installments from a fixed-installment annuity includes utilizing the current worth and the reliable yearly return. For this situation, the current worth of the 20-year annuity is [tex]$1.4[/tex] million, and the annuity procures a surefire yearly return of 10%. We can ascertain the yearly incomes involving the equation for the current worth of an annuity:
PV = Installment x [tex](1 - (1 + r)^-n)/r[/tex]
Where PV is the current worth, Installment is the yearly income, r is the surefire yearly return, and n is the quantity of years. We can revise the recipe to tackle for Installment:
Installment = PV x [tex]r/(1 - (1 + r)^-n)[/tex]
Connecting the given qualities, we get:
Installment = [tex]$1,400,000 x 0.1/(1 - (1 + 0.1)^-20)[/tex]
Tackling this condition, we get the yearly incomes or annuity installments to be around [tex]$163,047[/tex]. In this manner, the fixed-installment annuity will give yearly incomes of [tex]$163,047[/tex] for the following 20 years, beginning toward the finish of the ongoing year.
This actually intends that assuming an individual contributes [tex]$1.4[/tex] million today, they will get around [tex]$163,047[/tex] each year for the following 20 years. This computation can be useful in monetary preparation and retirement arranging, as it assists people with deciding the sum they need to save or contribute to create a specific degree of pay from here on out.
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review question 7 again. lets assume you use the cash advance option to take out $1100 cash. what is the beginning balance based on this scenario?
Assuming that you have a credit card with an available cash advance limit, if you use the cash advance option to take out $1100 in cash, then your beginning balance will increase by $1100.
This is because a cash advance is essentially a loan from the credit card company, which is added to your balance and accrues interest immediately.
For example, if your credit card had a zero balance before you took out the cash advance, then your beginning balance after the cash advance would be $1100.
On the other hand, if you already had a balance on your credit card before taking out the cash advance, then your beginning balance would be the sum of your existing balance and the cash advance amount.
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constanza, who is single, sells her current personal residence (adjusted basis of $165,000) for $450,000. she has owned and lived in the house for 30 years. her selling expenses are $22,500. what is constanza's realized and recognized gain? constanza's realized gain is $fill in the blank 1 and her recognized gain would be $fill in the blank 2 .
Constance's realized gain and recognized gain are $262,500 and $240,000, respectively.
:Given,Constance is single.
Constance sells her current personal residence (adjusted basis of $165,000) for $450,000.Constance has owned and lived in the house for 30 years.Her selling expenses are $22,500.
In the given problem, we need to calculate the realized gain and recognized gain.Realized gain refers to the increase in property value between the time of acquisition and the time of sale. While the recognized gain is the taxable gain that is reported to the IRS to determine any taxes owed.
Here,Adjusted basis of Constance's personal residence = $165,000
Selling price of residence = $450,000Selling expenses = $22,500
Hence,Constance's realized gain = Selling price - Adjusted basis of the personal residence - Selling expenses= $450,000 - $165,000 - $22,500= $262,500
Constance's recognized gain = Constance's realized gain - Exclusion amount= $262,500 - $250,000 (exclusion for a single homeowner)= $12,500
Therefore,Constance's realized gain is $262,500 and her recognized gain would be $12,500.
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1. what is the relationship between consumption and the following economic variables: household income, wealth, household's expectations about the future, and interest rates? m,
Consumption is influenced by household income, wealth, expectations about the future, and interest rates. Higher income and wealth typically lead to increased consumption, while positive expectations and lower interest rates can also boost consumption levels.
The relationship between consumption and various economic variables can be summarized as follows:
1. Household income: Consumption is positively correlated with household income. As income increases, people tend to consume more goods and services. This is because higher income enables households to satisfy their basic needs and afford additional goods and services, thereby increasing their overall consumption.
2. Wealth: Consumption is also positively related to wealth. Wealthier households have more resources available to spend on consumption, which leads to higher levels of consumption. This can include not only financial wealth (savings, investments) but also non-financial wealth (real estate, durable goods).
3. Household's expectations about the future: Expectations about the future can have a significant impact on consumption. If households are optimistic about their future income or the overall economy, they are more likely to increase their consumption in anticipation of higher future income. Conversely, if they are pessimistic about their future prospects, they may cut back on consumption to save for potential future difficulties.
4. Interest rates: The relationship between consumption and interest rates is generally negative. When interest rates are high, borrowing becomes more expensive, which can discourage households from consuming and encourage saving. Conversely, when interest rates are low, borrowing becomes cheaper, which may lead to higher consumption levels as households are more likely to take loans to finance purchases.
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people basically borrow in order topart 2a.have current consumption rather than waiting to consume in the future.b.have more funds.c.have interest payments.d.go into debt.
People basically borrow in order to have current consumption rather than waiting to consume in the future. So, correct option is A.
Borrowing enables individuals or organizations to acquire goods and services immediately and pay for them later, instead of having to wait and save up enough funds to make the purchase outright.
Borrowing can be a necessary part of personal and business financial planning. For example, a person may need to take out a loan to purchase a house or car, or a business may need to borrow money to finance capital projects or invest in new equipment.
By borrowing money, individuals and businesses can smooth their consumption over time and make investments that can generate future income or returns.
However, borrowing also comes with costs, such as interest payments and fees. It is important for borrowers to carefully consider the terms and conditions of their loans and ensure that they are able to repay the borrowed funds according to the agreed-upon schedule.
Therefore, correct option is A.
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all else equal, according to the quantity theory of money, an increase in the velocity of money will cause: group of answer choices deflation. disinflation. hyperinflation. higher inflation.
The correct option is D,Higher inflation.All else equal, according to the quantity theory of money, an increase in the velocity of money.
According to the quantity theory of money an increase in the velocity of money will beget higher inflation. Assuming that the total volume of goods and services produced and the total amount of money in rotation remain constant. This proposition helps to explain the relationship between money force, price position, and profitable affair.
An increase in the haste of money means that each unit of money is used more constantly to buy goods and services, and this leads to advanced demand for those goods in the frugality. This increased demand can lead to an increase in prices as businesses try to keep pace with the growing demand.
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if an insurer adds a provision into the contract that is specifically stated, this is known as a/an a implied warranty. b representation. c assumed warranty. d express warranty.
An express warranty is one that an insurer adds to the contract that is expressly mentioned. Here option D is the correct answer.
An express warranty is a promise made by the insurer to the insured that is explicitly stated in the insurance contract. It can take many forms, including written or verbal statements, advertisements, or product labels. An express warranty is a legally binding promise that the insured can rely on.
One of the key features of an express warranty is that it is explicit and specific. It is not left to interpretation or inference. The insurer must clearly state the terms and conditions of the warranty for it to be enforceable. This is in contrast to an implied warranty, which is not explicitly stated but is instead inferred from the circumstances of the transaction.
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a buyer purchases a house for $150,000. the buyer puts 30% of the $150,000 down, and a lender provides the remaining 70% in a mortgage. what is the loan-to-value ratio
The loan-to-value ratio is 70%. It measures the amount of financing provided by a lender relative to the purchase price.
The advance to-esteem (LTV) proportion in this situation is 70%. The LTV is a proportion of how much funding given by a moneylender comparative with the worth of the resource being bought. For this situation, the purchaser buys a house for $150,000 and puts down 30% of the price tag as an initial investment, while the loan specialist gives the leftover 70% as a home loan.
The LTV proportion is determined by partitioning the home loan sum by the price tag of the house and duplicating by 100 percent. With a home loan measure of $105,000 and a price tag of $150,000, the subsequent LTV proportion is 70%, showing that the bank has funded 70% of the price tag of the house.
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g utilizing the acquired data, answer the following questions: 1. what percentage of not-for-profit organizations report unrelated business income?
As per the most recent data, over 64% of not-for-profit organizations report having unrelated business income. Unrelated business income is a type of taxable income earned by not-for-profit organizations that is not directly linked to their tax-exempt purposes.
Unrelated Business Income (UBI) is a tax that is imposed on income that is earned by a non-profit organization through the conduct of any trade or business that is not directly related to the charity's tax-exempt purpose. If a charity conducts business outside of its charitable purpose, it is subject to tax on the income from that business activity. The business activity must be carried out regularly and continuously to be classified as unrelated business income.
Because nonprofit corporations are exempt from federal income tax, the tax on unrelated business income was created to ensure fairness in tax regulation. Unrelated business income tax (UBIT) was developed to protect companies that engage in for-profit activities from being given an advantage over those that don't, as well as to ensure that charities fulfill their charitable mandate with financial transparency.
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companies often use derivatives to reduce the risk of adverse changes in all of the following except a.foreign currency exchange rates. bmodity prices. c.inventory prices. d.interest rates.
Companies often use derivatives to reduce the risk of adverse changes in foreign currency exchange rates, commodity prices, and interest rates, but not in inventory prices. Thus option C will be correct.
Derivatives are used by businesses to mitigate the risk of adverse shifts in financial marketplaces. Derivatives are contracts whose worth is determined by the value of a fundamental object, such as foreign currency exchange rates, commodity values, or interest rates.
Companies can safeguard themselves from the uncertainty of price changes and prevent major financial losses by using derivatives. However, derivatives are rarely used to protect against product price fluctuations. Rather than using financial tools, businesses can control inventory risks through effective supply chain management and strategic pricing.
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the following are budgeted data: january february march sales in units 16,100 22,200 19,100 production in units 19,100 20,100 18,600 one pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 30% of the following month's production needs. purchases of raw materials for february would be budgeted to be: group of answer choices 19,650 pounds 20,550 pounds 18,450 pounds 20,150 pounds
To determine the budgeted purchases of raw materials for February, we need to first calculate the production needs for February and March, as follows:
Production needs for February = 20,100 units x 1 pound per unit = 20,100 pounds
Production needs for March = 18,600 units x 1 pound per unit = 18,600 pounds
Next, we need to calculate the required inventory of materials at the end of January and February, based on the 30% of the following month's production needs:
Required inventory of materials at the end of January = 30% x 20,100 pounds = 6,030 pounds
Required inventory of materials at the end of February = 30% x 18,600 pounds = 5,580 pounds
To determine the budgeted purchases of raw materials for February, we need to subtract the required inventory at the end of January from the production needs for February, and then add the required inventory at the end of February:
Budgeted purchases of raw materials for February = (20,100 pounds - 6,030 pounds) + 5,580 pounds = 19,650 pounds
Therefore, the budgeted purchases of raw materials for February would be 19,650 pounds.
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the inventory turnover for haute hippie has gone from an average of 11.13 times to 12.44 times per year. how does this affect the inventory period? assume 365 days per year.
The decrease in inventory turnover from an average of 11.13 times to 12.44 times per year for Haute Hippie has reduced the inventory period from 32.80 days to 29.32 days
The inventory turnover ratio measures how many times a company sells and replaces its inventory over a given period. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently, which generally means that it has a more efficient and effective inventory management system.
To calculate the inventory period, we divide the number of days in the year (365) by the inventory turnover ratio. This gives us the average number of days that the inventory is held before it is sold and replaced.
So, if the inventory turnover for Haute Hippie has gone from an average of 11.13 times to 12.44 times per year, we can calculate the impact on the inventory period as follows
Inventory period before = 365 / 11.13 = 32.80 days
Inventory period after = 365 / 12.44 = 29.32 days
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suppose the probability of an irs audit is 2.9 percent of us tax payers who file form 1040 and who earned $100,000.00 or more. what are the odds that the tax payer will be audited?
The probability of an IRS audit for U.S. taxpayers who file Form 1040 and earned $100,000 or more is given as 2.9%.
To calculate the odds, we need to convert the probability to odds. Odds are defined as the ratio of the probability of an event occurring to the probability of the event not occurring. Mathematically, odds are expressed as:
Odds = Probability of event occurring / Probability of event not occurring
In this case, the probability of being audited is 2.9%, or 0.029, and the probability of not being audited is 100% - 2.9%, or 97.1%, which can be expressed as 0.971.
Plugging these values into the formula, we get:
Odds = 0.029 / 0.971
Odds = 0.029 / 0.971 ≈ 0.0299
So, the odds of a taxpayer who filed Form 1040 and earned $100,000 or more being audited by the IRS is approximately 0.0299, or about 1 in 33.4. This means that for every 33.4 taxpayers in this category, on average, one taxpayer is expected to be audited by the IRS.
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the equilibrium level of income will rise when: group of answer choices planned consumption spending is less than real gdp. taxes exceed saving. supply exceeds demand. planned inventory investment is negative. aggregate expenditures exceed real gdp.
The equilibrium level of income will rise when aggregate expenditures exceed real GDP, as this situation leads to an increase in production to meet the higher demand, ultimately resulting in a higher equilibrium level of income.
The equilibrium level of income will rise when aggregate expenditures exceed real GDP.
1. Aggregate expenditures refer to the total spending in an economy, which includes consumption, investment, government spending, and net exports.
2. Real GDP represents the total value of goods and services produced in an economy, adjusted for inflation.
3. When aggregate expenditures are higher than real GDP, it means that there is more spending in the economy than what is currently being produced.
4. This situation creates a demand-supply gap, with the demand for goods and services exceeding their supply.
5. To meet this higher demand, businesses will increase their production, leading to an expansion of output and a rise in the equilibrium level of income.
6. As the equilibrium level of income rises, the economy moves towards a new equilibrium where aggregate expenditures and real GDP are equal.
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which economic factors should be prioritize when performing an economic analysis within the context of fundamental analysis
The impact of a bull market on the preponderance of stocks is frequently described by the idiom "a rising tide lifts all boats." When the economy is booming,
Most businesses are much more likely to experience development than when it is contracting. Businesses and the general public feel much more comfortable spending money when they believe the economy is robust. More demand for both new and current goods and services is consequently produced by this spending. In response, businesses will expand production to keep up with the escalating demand. This could entail increasing labor force size and/or inventory production, both of which could lengthen a development cycle.
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analyzing threat and hazard information enables the planning team to: a. develop justification for the purchase of additional resources. b. identify capabilities needed to manage associated risks. c. establish triggers for requesting assistance. d. focus planning efforts on threats/hazards that can be handled at the local level.
Option b: analyzing threat and hazard information enables/lets/allows the planning team to figureout/identify capabilities needed to manage associated risks.
A business organisation (company) can define incident management as a strategic process through which it identifies, analyses, and resolves hazards and potential threats (problems) in order to ensure that normal service operation is quickly restored to its end users following a disruption and to prevent a recurrence of these hazards in the future.
The process of identifying, evaluating, analysing, and controlling possible risks (threats) that could pose a threat to a company's capital, assets, revenues, and profits is known as risk management.
In this context, we can infer and rationally deduce that the planning team is able to effectively and efficiently identify capabilities that are required by conducting an analysis of all threat and hazard information.
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an individual taxpayer purchased a scooter costing $1,000 and a jet ski costing $8,000 both for personal use. during the current year, the taxpayer sold the scooter for $800 and the jet ski for $9,000. what gain or loss does the taxpayer recognize?
An individual taxpayer purchased a scooter costing $1,000 and a jet ski costing $8,000 both for personal use. During the current year, the taxpayer sold the scooter for $800 and the jet ski for $9,000. 0 loss and $1,000 gain the taxpayer recognizes.
A taxpayer is an individual or entity that is required to pay taxes to a government or other authority. Taxpayers are typically required to pay taxes on their income, property, goods, services, or other transactions. The amount of taxes that a taxpayer is required to pay can vary depending on a variety of factors, including their income level, tax deductions and credits, and the specific tax laws in their jurisdiction.
Governments use tax revenues to fund public services and programs, such as healthcare, education, infrastructure, and national defense. As such, taxpayers play an important role in supporting the functioning of their society and ensuring that essential public services are available to all citizens.
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which concept/principle supports the notion that for companies reporting their financial statements in united states dollars, no adjustments are made for the effects of inflation?
The concept/principle that supports the notion that for companies reporting their financial statements in United States dollars, no adjustments are made for the effects of inflation is the monetary unit assumption.
The monetary unit assumption is an accounting principle that assumes that monetary units, such as dollars or euros, are the only significant measure of an organization's financial position, performance, and cash flows. In financial reporting, this principle assumes that the financial data is expressed in a single currency or monetary unit, such as the United States dollar.
The monetary unit assumption, often known as the unit of measure principle, is one of the fundamental accounting principles that form the foundation of accounting. It assumes that a company's transactions and activities can be measured, recorded, and reported solely in monetary terms or units. Therefore, if a business's financial statements are prepared in United States dollars, no changes are made for the impact of inflation on the value of the dollar.
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if a consultant provides consulting services in june, but the bill is not due from the client until july, the account debited by the consultant in june to record the transaction is:
The account that an expert debits in June to document the transaction is accounts receivable if consulting services are provided in June but the customer is not required to pay until July.
Accounts payable is the term used to describe the amount of money due to a company for goods or services delivered or used but not yet paid for by customers. (AR). Accounts due are displayed as current assets on the balance sheet. The term AR refers to any amount that customers are due for purchases they made using credit. The unpaid invoices or funds that clients owe a company are known as accounts receivable. The phrase refers to assets that a business is qualified to receive as compensation for goods or services rendered. Receivables, also referred to as accounts due, is a business's line of credit that usually has terms requiring payments to be made within a reasonable amount of time.
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if a consultant provides consulting services in june, but the bill is not due from the client until july, the account debited by the consultant in june to record the transaction is: _____________
You need to be sure that the prices chosen for each room type are:
Attracting visitors looking for a good deal, High enough to cover costs and turn a profit, competitive with nearby motels.
What class of hotel is it?Hotels can be divided into several categories, including those based on their size, location, services, star rating, and facilities. The most prevalent classifications for hotels are property type and service level (full or limited) (full-service resort, limited-service hotel, and so on).
How do basic and standard rooms differ?Basic lodgings are similarly small but marginally larger than a budget, and they have a window with a restricted outlook. For instance, standard rooms are more roomy and come with a view of the city. Budget, basic, and standard lodgings are small in size, and the same is true of the restrooms.
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Question:
When setting room rates in a hotel, what are the factors to consider to ensure that the prices chosen for each room type are:
Appealing to guests shopping for good value
Competitive with neighborhood hotels
High enough to cover costs and create profit
which of the following provides a measure of market attractiveness in the bcg (boston consulting group) approach? group of answer choices return on marketing investment relative market share market sentiment market growth rate brand image
In the Boston Consulting Group (BCG) approach, the market attractiveness is measured by the market growth rate. Option (d)
The BCG matrix is a tool used for portfolio analysis and strategy development. It categorizes a firm's products or services into four quadrants: cash cows, dogs, stars, and question marks. The market growth rate represents the rate at which the market for a particular product is growing.
A higher market growth rate indicates a more attractive market, while a lower rate indicates a less attractive one. The BCG approach uses this measure, along with relative market share, to determine a product's position within the portfolio and develop appropriate strategies.
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Which of the following provides a measure of market attractiveness in the BCG (Boston Consulting Group) approach?
A. Return on marketing investment
B. Relative market share
C. Market sentiment
D. Market growth rate
E. Brand image
organizational buying behavior is similar to consumer behavior in some ways and different in others. common to both is that they multiple choice are affected by derived demand. use the same five stages in the buying decision process. have virtually unlimited options for suppliers. rely on gatekeepers to control product information. use formal vendor ratings when choosing among alternative brands.
The five stages in the buying decision process are common to both organizational buying behavior and consumer behavior, and both are affected by derived demand.
What are five stages in the buying decision processThe five stages in the buying decision process that are common to both organizational buying behavior and consumer behavior are:
Problem recognitionInformation searchEvaluation of alternativesPurchase decisionPost-purchase evaluationBoth organizational buying behavior and consumer behavior are affected by derived demand. In other words, the demand for products or services in both cases is driven by the demand for another product or service.
For example, the demand for smartphones leads to the demand for smartphone accessories like cases, headphones, etc.
Therefore, both types of buyers are affected by derived demand.
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a business organization should always use the equity method to account for an investment if: group of answer choices it has the ability to exercise significant influence over the operating policies of the investee. it owns 35% of another company's voting stock. it has a controlling interest (more than 50%) of another company's stock. the investment was made primarily to earn a return on idle cash. it does not have the ability to exercise significant influence over the operating policies of the investee.
A business organization should always use the equity method to account for an investment if it has the ability to exercise significant influence over the operating policies of the investee. Option 1 is correct.
The equity method is an accounting method used to account for investments in which the investor has the ability to exercise significant influence over the investee's operating policies. Under the equity method, the investor records its share of the investee's net income or loss as a single line item on its income statement.
This means that the investor has the power to participate in the financial and operating policy decisions of the investee without having control over them. Owning 35% of another company's voting stock does not necessarily mean that the investor has significant influence over the operating policies of the investee. Having a controlling interest (more than 50%) of another company's stock would require the investor to use the consolidation method, not the equity method.
Making an investment primarily to earn a return on idle cash is not a sufficient reason to use the equity method. Finally, if the investor does not have the ability to exercise significant influence over the operating policies of the investee, it would not be appropriate to use the equity method. Option 1 is correct.
The complete question is
A business organization should always use the equity method to account for an investment if:
Group of answer choices
It has the ability to exercise significant influence over the operating policies of the investee. It owns 35% of another company's voting stock. it has a controlling interest (more than 50%) of another company's stock. the investment was made primarily to earn a return on idle cash. It does not have the ability to exercise significant influence over the operating policies of the investee.To know more about the Investment, here
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a firm's capital structure refers to the firm's: group of answer choices proportions of financing from current and long-term debt and equity. combination of cash and cash equivalents. mixture of various types of production equipment. investment selections for its excess cash reserves. combination of accounts appearing on the left side of its balance sheet.
A firm's capital structure refers to the firm's proportions of financing from current and long-term debt and equity. The answer is OPTION A.
A company's capital structure is the combination of financial instruments it employs to raise money for its activities, including equity shares, preference shares, long-term loans, debentures, bonds, and retained earnings. The ratio of debt to equity on a company's balance statement is referred to as capital structure.
It reveals how much of a company is funded by creditors and owners and offers information about the company's cost of capital, or how much the owners are paying for their capital investment in the company. The total amount of outstanding debt and equity for a business is referred to as capital structure. The answer is OPTION A.
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reak-even sales under present and proposed conditions portmann company, operating at full capacity, sold 1,000,000 units at a price of $189 per unit during the current year. its income statement is as follows: sales $189,000,000 cost of goods sold (99,000,000) gross profit $90,000,000 expenses: selling expenses $14,000,000 administrative expenses 18,400,000 total expenses (32,400,000) operating income $57,600,000 the division of costs between variable and fixed is as follows: variable fixed cost of goods sold 70% 30% selling expenses 75% 25% administrative expenses 50% 50% management is considering a plant expansion program for the following year that will permit an increase of $11,340,000 in yearly sales. the expansion will increase fixed costs by $3,000,000 but will not affect the relationship between sales and variable costs. required: 1. determine the total variable costs and the total fixed costs for the current year. total variable costs $fill in the blank 1 116,000,000 total fixed costs $fill in the blank 2 15,400,000 2. determine (a) the unit variable cost and (b) the unit contribution margin for the current year. unit variable cost $fill in the blank 3 unit contribution margin $fill in the blank 4 3. compute the break-even sales (units) for the current year. fill in the blank 5 units 4. compute the break-even sales (units) under the proposed program for the following year. fill in the blank 6 units 5. determine the amount of sales (units) that would be necessary under the proposed program to realize the $57,600,000 of operating income that was earned in the current year. fill in the blank 7 units 6. determine the maximum operating income possible with the expanded plant. $fill in the blank 8 7. if the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? $fill in the blank 9 income 8. based on the data given, would you recommend accepting the proposal? in favor of the proposal because of the reduction in break-even point. in favor of the proposal because of the possibility of increasing income from operations. in favor of the proposal because of the increase in break-even point. reject the proposal because if future sales remain at the current level, the income from operations will increase. reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. choose the correct answer. b
Total variable costs for the current year: To calculate this, we need to find the variable portion of each expense and multiply it by the respective expense amount.
Cost of goods sold:
Variable portion = 70% of $99,000,000 = $69,300,000
Selling expenses:
Variable portion = 75% of $14,000,000 = $10,500,000
Administrative expenses:
Variable portion = 50% of $18,400,000 = $9,200,000
Total variable costs = $69,300,000 + $10,500,000 + $9,200,000 = $89,000,000
Total fixed costs for the current year: This is given as $32,400,000.
Unit variable cost for the current year: This is calculated by dividing the total variable costs by the number of units sold.
Unit variable cost = $89,000,000 / 1,000,000 units = $89 per unit
Unit contribution margin for the current year: This is calculated by subtracting the unit variable cost from the selling price per unit.
Unit contribution margin = $189 - $89 = $100 per unit
Break-even sales (units) for the current year: This is calculated by dividing the total fixed costs by the unit contribution margin.
Break-even sales (units) = $32,400,000 / $100 = 324,000 units
Break-even sales (units) under the proposed program for the following year: Since the proposed program does not affect the relationship between sales and variable costs, the unit contribution margin remains the same as in the current year. The fixed costs for the following year are given as $3,000,000. Therefore, the break-even sales (units) under the proposed program would be:
Break-even sales (units) = $3,000,000 / $100 = 30,000 units
Sales (units) necessary to realize the $57,600,000 of operating income earned in the current year: This is calculated by adding the operating income to the total fixed costs, and then dividing by the unit contribution margin.
Sales (units) necessary = ($57,600,000 + $32,400,000) / $100 = 904,000 units
Maximum operating income possible with the expanded plant: This is calculated by adding the proposed increase in sales ($11,340,000) to the current operating income.
Maximum operating income = $57,600,000 + $11,340,000 = $69,940,000
Operating income or loss for the following year if the proposal is accepted and sales remain at the current level: This would be the same as the current year's operating income, as the sales are assumed to remain at the current level.
Operating income = $57,600,000
Based on the data given, the correct answer is: in favor of the proposal because of the possibility of increasing income from operations. (Option b) as the maximum operating income possible with the expanded plant is higher than the current year's operating income.
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adt commercials that advertise the value of having a home burglar alarm system appeals to consumers':
The ADT commercials that advertise the value of having a home burglar alarm system appeal to consumers' sense of security and safety.
ADT is a security company that offers a range of security solutions, including home burglar alarm systems, access control systems, and video surveillance systems. In its commercials, ADT emphasizes the importance of having a home burglar alarm system as a means of protecting one's family and property from burglary and theft. The commercials appeal to consumers by highlighting the sense of security and safety that a home burglar alarm system can provide.
The ads typically feature dramatizations of burglaries or attempted break-ins, followed by a reassuring message that ADT can help protect your home and loved ones.ADVERTISEMENTThe ads also often emphasize the convenience and ease of use of ADT's home burglar alarm systems, as well as the company's 24/7 monitoring service. This can be particularly appealing to busy families or individuals who may not have the time or inclination to monitor their home security systems themselves.
In summary, ADT's commercials appeal to consumers by emphasizing the sense of security and safety that a home burglar alarm system can provide, as well as the convenience and ease of use of ADT's systems and its 24/7 monitoring service.
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Someone who will personally suffer from a risk happening has
*
A. Subrogation
B. Proximate clause
C. An insurable risk
D. An uninsurable risk
Someone who will personally suffer from a risk happening has C. An insurable risk
What is an An insurable riskAn insurable risk refers to a risk that an insurance company is willing to cover because it meets certain criteria, one of which is that the person or entity seeking insurance must have an insurable interest in the property or potential loss. This means that the person must have a financial or other kind of interest in the property or potential loss being insured.
In the context of the given options, subrogation refers to the right of an insurer to pursue legal action against a third party responsible for a loss after the insurer has paid a claim to the insured. Proximate cause is a legal term that refers to the cause that sets in motion a sequence of events leading to an injury or loss. An uninsurable risk refers to a risk that an insurance company is not willing to cover due to the high likelihood of a loss occurring or because it is illegal or against public policy to do so.
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you want to invest in two stocks that will provide you with the most diversified portfolio. you should select the two stocks with which one of these correlation values?
You should select the two stocks with a negative correlation value to invest in when it comes to most diversified portfolio.
The two stocks with negative correlation values are the ones to choose if you want to choose two stocks that will provide you the most diverse portfolio. When two stocks have a negative correlation, one stock rises when the other falls and vice versa. In this manner, your portfolio will be balanced if one stock performs poorly, and the other stock performs well.
The statistical concept of correlation expresses the strength of a relationship between two variables as a value that ranges from +1.0 to -1.0. The degree of correlation between the price changes of the various assets included in diversified portfolios is represented by correlation.
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which statement is false about the prisoner's dilemma?group of answer choicesin single-shot games with different partners, the best strategy is to defect.in single-shot games with different partners, the best strategy is to cooperate.in repeat games with the same partners, the best strategy is to cooperate.in repeat games with the same partners, the defect/defect nash equilibrium square is multually suboptimal to the cooperate/cooperate square.
The optimum tactic in single-shot games with diverse partners is to defect, which is the erroneous explanation for the prisoner's dilemma. Option 1 is Correct.
The anonymous one-shot prisoner's dilemma game is one of the most popular paradigms (Luce and Raiffa, 1957). In this game, two players who are interacting concurrently decide whether to cooperate or defect. In the traditional prisoner's dilemma, individuals find that betraying the group yields more rewards than cooperating.
Each participant may develop a cooperative approach if the same games are played often. According to game theory, a situation where two players act selfishly would ultimately lead to a poor decision for both is known as a prisoner's dilemma. The prisoner's dilemma also demonstrates the fact that sometimes, collaboration is not the best course of action. Option 1 is Correct.
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Correct Question:
which statement is false about the prisoner's dilemma? group of answer choices
1. in single-shot games with different partners, the best strategy is to defect.
2. in single-shot games with different partners, the best strategy is to cooperate.
3. in repeat games with the same partners, the best strategy is to cooperate.
4. in repeat games with the same partners, the defect/defect nash equilibrium square is multually suboptimal to the cooperate/cooperate square.
a treasury bill purchased in december 2020 has 84 days until maturity and a bank discount yield of 3.38 percent. assume a $100 face value. a. what is the price of the bill as a percentage of face value? (do not round intermediate calculations. round your answer to 3 decimal places.)
To calculate the price of the treasury bill as a percentage of face value, we can use the bank discount yield formula:
Bank Discount = Face Value x Discount Rate x Time
Price = Face Value - Bank Discount
First, we need to convert the bank discount yield to a decimal by dividing it by 100:
Discount Rate = 3.38% / 100 = 0.0338
Next, we can plug in the given values:
Bank Discount = $100 x 0.0338 x (84/360) = $0.8357
Price = $100 - $0.8357 = $99.1643
Finally, we can calculate the price as a percentage of face value:
Price as % of Face Value = (Price / Face Value) x 100%
= ($99.1643 / $100) x 100%
= 99.1643%
Therefore, the price of the treasury bill as a percentage of face value is 99.1643%.
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by building aircrafts in china, airbus is risking that knowledge transfer will occur and that its secrets could be transferred to its competitors. group of answer choices true false
When a company engages in manufacturing or other business activities in a foreign country, such as building aircrafts in China, there is a risk of knowledge transfer and potential exposure of trade secrets to competitors. The correct option is: true.
This is because the local workforce and partners may gain access to the company's proprietary information, manufacturing processes, and technology, which could be shared or used by competitors to gain an advantage in the market. Companies need to carefully manage and protect their intellectual property and trade secrets through legal measures, contracts, and internal controls to minimize the risk of knowledge transfer and protect their competitive advantage.
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