Answer:
The correct answer is: decreases.
Explanation:
A larger money demand lower market interest rates, while a smaller demand tends to raise them. In a market economy supply and demand influence prices. In everyday life, people often have a greater demand for money than their reserves will accommodate. To get more money, they borrow from those who have an excess of cash. Interest rates determine that cost.
Beasley Company currently sells its products for $ 20 per unit. Management is contemplating a 10% increase in the selling price for the next year. Variable costs are currently 30% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year). Fixed expenses are $ 56 comma 000 per year. What is the breakeven point in units at the anticipated selling price per unit next year?
Answer:
$ 3,500 units
Explanation:
Selling price per unit (next year):
= $20 + 10 % of $20
= $22
Variable cost per unit (next year):
= $20 × 30 %
= $6
Contribution per unit (next year):
= Selling price per unit (next year) - Variable cost per unit (next year).
= $22 - $6
= $16
Fixed expenses = $56,000
Break even point (in units):
= Fixed expenses ÷ Contribution per unit.
= $56,000 ÷ 16
= $ 3,500 units
Final answer:
The breakeven point for Beasley Company next year is 3,500 units. This is calculated using the new selling price of $22 per unit after a 10% increase, with the variable costs remaining at $6 per unit and the fixed expenses at $56,000 per year.
Explanation:
To calculate the breakeven point in units for Beasley Company, we need to use the new anticipated selling price after the 10% increase. The current selling price is $20, so the new price will be $20 + ($20 × 10%) = $22 per unit. The variable costs, which are 30% of the sales revenue, will remain at $6 per unit ($20 × 30%), since they are not expected to change on a per unit basis next year. Therefore, the unit contribution margin will be the new selling price minus the variable costs, which is $22 - $6 = $16 per unit.
With the fixed expenses at $56,000 per year, we can find the breakeven point in units by dividing the fixed expenses by the unit contribution margin:
Breakeven Point in Units = Fixed Expenses / Unit Contribution Margin
Breakeven Point in Units = $56,000 / $16 per unit
Breakeven Point in Units = 3,500 units
So, Beasley Company will need to sell 3,500 units at the new price of $22 per unit to breakeven next year.
In one hour, the United States can produce 25 tons of steel or 250 automobiles. In one hour, Japan can produce 30 tons of steel or 275 automobiles. Draw the Production possibility Frontiers. For each country compute the opportunity cost ratios for cars and steel. Which country has the absolute advantage in the production of steel? Which country has the absolute advantage in the production of cars? Within what range will trade take place
Answer:
Production Possibility Frontiers for Two Countries find in attachments.Opportunity cost for America for automobile production is less as compared to for Japan, for producing 50 more units of Automobiles America has to forgo 5 tons of Steel where as for Japan to produce 100 more units of Automobiles Japan has to forgo 7 units of steel. Japan has absolute Advantage in production of both Automobiles and Steel but it has comparative advantage in production of steel as it is 1.2 times better at producing steel as it is on automobiles as which is only 1.1 times more of what America produces.America has comparative advantage in the production of Cars as its opportunity cost for producing cars is less than Japan.The trade between two countries is possible at Japan producing more of Steel and America producing more of Cars.Explanation
Figure 1-A showing America's Production Possibility Frontier, where on x Axis Steel Production per hour and on Y-Axis Automobiles or Cars Production. The Maximum level of Automobiles America Produces is 250 spending all of its resources over production of Automobiles where as 25 tons Steel maximum it can produce spending all of its resources producing Steel so the line between the two maximum attainable points is the production possibility frontier for cars and steel per hour for America.
Figure 1-B showing Japan's production possibility Frontier, where on Y-Axis is the 275 cars which it can produce spending all of its resources and on X-Axis the 30 tons of steel and line joining both is the production possibility frontier for Japan.
Table 1 and Figure 2, showing opportunity cost for America and Japan where two production possibility frontiers are drawn in one graph and diff levels of trade off's between cars (y-axis) and steel (x-axis) are compared
from the table the conclusion about the absolute and comparative advantage can be drawn as japan produces higher levels of both products so it has absolute advantage of producing both cars and steel over America , but Japan produces 1.1 times more cars then America and 1.2 times more Steel then America indicating it has comparative advantage in producing steel then Cars, however comparative advantage in true sense is when the opportunity cost for producing a product is less compared to producing other the graph in Figure 2, shows that for America if production of cars reduces from 150 to 100 America produces 5 tons more steel from level 10 to 15 at x-axis where as for same levels if Japan reduces its production from 150 to 100 Japan produces 8 tons more steel. so opportunity cost for producing more steel for Japan is less as it has to forgo lesser number of cars compared to America if America has to produce 8 tons more steel it has to forgo more of its cars as compared to Japan.
The trade between two countries is possible at levels where both has comparative advantage the output (global production) will be greater if both countries trade at levels where they have advantage like America should trade at levels where it spends more of its resources producing cars and Japan should trade at levels where it produces more of its resources producing Steel. A country can not forgo production of a product where it does not have absolute or comparative advantage as it would lead to sect-oral unemployment.
Caveat emptor is a Latin phrase that means "let the buyer beware." It was used to express the doctrine used by businesses during the 1900s that meant "what you see is what you get." Which of the following statements about this doctrine and its application is false?
a. Before the 1930s most people believed that competition and the action of the marketplace would, in time, correct abuses of the free-market system.
b. During the 1900s government became involved in day-to-day business activities regularly to limit the free-market system.
c. As government involvement has increased, so has everyone's awareness of the social responsibility of business.
Answer:
b. During the 1900s government became involved in day-to-day business activities regularly to limit the free-market system.
Explanation:
The doctrine stipulated that the buyers of goods and services should be careful of the market system and be smart about what they intended to purchase in the market. However, it didn't include the involvement of the government to control and regulate the market system. Therefore, the false option is option b.
The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of expertise. For each applicant, the HR manager gathers information by trying to verify various claims on resumes, but some doubt about fit always lingers when a decision to hire or not is to be made. What are the type I and II decision error costs? Which decision error is more likely to be discovered by the CEO? How does this affect the HR manager’s hiring decisions?
Answer:
Type 1 decision error cost and Type 2 decision error cost
Explanation:
Type 1 decision error cost has to do with recruiting the wrong candidate or person specification for the job, type 1 error are expensive to the organization and frustrating to the employees. Type 2 decision error cost has to do with the opportunity cost forgone, when the right candidate which could have been hired, was not hired.
The CEO is likely to discover the Type 1 decision error cost
Type I error is hiring the wrong person for the job and Type II error is rejecting the right person. Type I is more likely to be noticed by the CEO because it could negatively impact the company. To avoid these errors, the HR managers tend to be rather conservative and look for various pieces of evidence that the candidate is suitable for the position.
Explanation:In the scenario described, a type I decision error would occur if the HR manager hires an applicant who is not a good fit for the position. A type II error, on the other hand, happens if a good candidate is passed over.
In most cases, type I error – hiring the wrong person – would be more likely to be noticed by the CEO because of the potential negative impacts on the company's operations, productivity, and perhaps even its reputation. It's also possible that the CEO might notice a type II error if an applicant who was rejected ends up being successful for a competitor, but this is less direct and less certain.
The possibility of these errors, and their visibility to the CEO, can certainly influence the HR manager's hiring decisions. For example, because of the high visibility and potentially high costs of type I errors (hiring the wrong person), HR managers might be rather conservative and choosy in making hiring decisions, hoping to avoid the risk of a bad hire. They might look for various types of evidence that an applicant is likely to succeed in the job, such as degrees from reputable schools, high grades, other accomplishments, specific skills, relevant work experience, and strong references.
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Clear Co.’s trial balance has the following selected accounts: Cash (includes $10,000 in bond-sinking fund for long-term bond payable) $50,000 Accounts receivable 20,000 Allowance for credit losses 5,000 Deposits received from customers 3,000 Merchandise inventory 7,000 Unearned rent 1,000 Investment in trading debt securities 2,000 What amount should Clear report as total current assets in its balance sheet?
Answer:
Explanation:
The computation of the amount that is reported as a total current assets is presented below:
Clear Co's
Current assets
Cash $40,000 ($50,000 - $10,000)
Accounts Receivable $20,000
less-Allowance for doubtful debts - $5,000
Deposits from customers $3,000
Merchandise Inventory $7,000
Unearned rent $1,000
Investment in trading debt securities $2,000
Total amount $68,000
what's the present value of $850 annuity payments over five years if the interest rates are 9%?
Answer:
$3,306.20
Explanation:
The present value of any payments can be calculated using the following formula:
Present value=R((1-(1+i)^-n)/i)
R= annuity payment =$850 in this case
i=interest rate=9%
n=number of payments=5
Present value=$850((1-(1+9%)^-5)/9%)
=$3,306.20
Final answer:
The present value of $850 annuity payments over five years at an interest rate of 9% is calculated using the present value of an annuity formula, resulting in a present value of $3,306.21.
Explanation:
The student is seeking to calculate the present value of an annuity with $850 annual payments for five years at a 9% interest rate. To find the present value of an annuity, we use the present value of an annuity formula, which is PVC = C * [(1 - (1 + r)⁻ⁿ) / r], where PVC is the present value of the annuity, C is the annual payment, r is the interest rate, and n is the number of periods.
Applying the formula to the given scenario:
C = $850r = 9% or 0.09n = 5 yearsThe present value of the annuity is therefore: $850 * [(1 - (1 + 0.09)⁻⁵) / 0.09]
Performing the calculations, we get:
PVC = $850 * [(1 - (1.09)⁻⁵) / 0.09]
PVC = $850 * [(1 - 0.649931) / 0.09]
PVC = $850 * [0.350069 / 0.09]
PVC = $850 * 3.889656
PVC = $3,306.21
The present value of the annuity is $3,306.21.
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $4,000Salaries expense 1,500Accounts payable 2,000Retained earnings 4,400Utilities expense 1,000Supplies 12,400Service revenue 7,900Common stock 4,600 Use only the appropriate accounts to prepare an income statement.
Answer:
Explanation:
The preparation of the income statement is presented below:
Cowboy Law Firm
Income statement
At the end of December
Particulars Amount
Service revenue $7,900
Less: expenses
Salaries expense -$1,500
Utilities expense -$1,000
Net income $5,400
k. Starbucks reports Income from Equity Investees in its income Statement. Using the narrative information provided in this case, describe the nature of this type of income.
Answer:
These revenues correspond to the portion of the related companies that do not consolidate in the Financial Statement because there is a minimum participation or there is no control over them (Example: They have control with the 51% of participation). However, if they have a minimal portion this means that there is a minority participation, the portion of the gain that corresponds to it is recorded in the financial statements.
If a company has a payable denominated in the Euro, and the U.S. dollar weakens, then what will happen?
Answer and explanation:
If a company has a payable in a foreign currency and the local currency weakens, the initial amount of the payable will be higher in the local currency of the firm which will represent a company loss. The loss must be recorded in the financial statements the very same date where the loss takes place regardless the payable will be paid on the same day.
Do you believe that managers today are using more boss- or subordinate-centered leadership styles?
Based on you answer, give three reasons why the style you chose is used more.
Answer:
Today's managers are using more subordinate-centered leadership styles to get the best out of them.
Why: Reasons
Why today's managers are more titled toward the subordinate-centered leadership styles, following are few of the reasons:
(1) In today's world, businesses have become much more complicated as ever before, competition has changed the face of any businesses, therefore, managers want to have new and creative ideas, and this is only possible when employees are given free hand in choosing their work environment, thus, it is only possible when manager are having supportive behavior towards their subordinates.
(2) Human resource departments are so efficient now-a-days that they are always in searching of exciting talent. They do the head-hunting on the continuous basis, where they hire employees from other organisations, therefore, if you don't treat your employees well, then they will have more chances to switch the organisation and avail the better available chances.
(3) Employee enjoy working in an environment where they have freedom, bosses and employees work together like Google and SEMCO. In both of these organisations, the organisational structure help employees in participation towards the decision making in the organisation. Employees feel more productive and loyal to the organisation, therefore, employees-centered leadership approaches are more valid now-a-days.
Today's managers are using more subordinate-centered leadership styles due to the benefits such as empowerment of employees, ability to adapt to changes, and enhanced teamwork and creativity.
Explanation:In today's dynamic business environment, managers are often seen using more subordinate-centered leadership styles rather than the traditional boss-centered style. Here are three main reasons for this trend:
Empowerment of Employees: Managers believe that empowering employees and encouraging them to make decisions increases their motivation and job satisfaction. Adapting to Changes: Due to the rapid pace of change in technology and market trends, the top-down boss-centered approach does not work effectively. Managers need inputs and expertise from their subordinates to respond quickly and adapt to changes. Teamwork and Creativity: Subordinate-centered leadership enhances team collaboration and encourages diverse ideas, resulting in greater creativity and innovation. Learn more about Leadership Styles here:
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Government policies should be designed to help maximize an economy’s GDP. Is it True/False/Uncertain and Explain?""
Answer:
The statement is: True.
Explanation:
The Gross Domestic Product (GDP) is the total dollar value of all goods an economy produces for a given time. GDP is the primary indicator of a country's economic health. A healthy economy typically sees employment opportunities and raising wages. A big change in GDP can have a big impact on stocks -for instance, and that is why investors worry about GDP growth. Thus, the government should provide guarantees through policies that will allow the country's GDP to grow, letting investments increase at the same time.
Because of their high water requirements and tropical origin, it is best to plant citrus in lawns where overhead sprinklers irrigating the lawn can also provide deep and uniform soil moisture for citrus root systems to thrive. A. TrueB. False
Answer:
1.
Explanation:
IT WOULD BE GOOD TO PLANT CITRUS IN THE AREA WHERE AVALIABILITY OF SPRINKLERS IS AMPLE.
THEREFORE,THE ROOTS OF THE PLANTS WOULD GET AMPLE OF WATER FOR THE GROWTH OF PLANT.
As the high water requirement s of the plants of tropical origin, the best place for the citrus fruit is at the lawns where he overheats sprinklers provide the soil with moisture is true.
What is the tropical origin ?The tropical origin refers to those plants that are originated in the tropical regions and lands. The citrus is a fruit plant that grows well in the lands of the tropics as it has a sprinkler system.
As the tropics are a place that is near to the equator i.e zero degrees, and it's called mod latitude. Being tropical in origin means to be warm and wet.
Find out more information about the citrus fruit.
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Each Component (Services/Agencies) uses the guidance provided by the Planning phase of the Planning, Programming, Budgeting, and Execution (PPBE) process to prepare its proposal for all available resources, including funding, force structure and personnel end strength, over a five year period. This proposal, submitted to the Secretary of Defense, is known as the:
a. Program Objectives Memorandum (POM) and Resource Management Decision (RMD).]
b. Program Objectives Memorandum (POM)
c. President's Budget (PB) Defense Planning Guidance (DPG)
d. Budget Estimate Submission (BES)
Answer: D - Budget Estimate Submission (BES)
Explanation: Budget Estimate Submission (BES) is a proposal prepared for all available resources including funding, force structure and personnel strength over a five year period. The proposal is then submitted to the office of the secretary of defense for the inclusion in the department of defense Budget.
After which a Budget review is conducted by the Secretary of Defense with OMB participation, to review department/agency estimates of program costs. This budget takes care of:
1) Program Pricing
2) Program Executability
The day-to-day supervision of construction is the responsibility of the____________.
Answer:
The correct word for the blank space is: general contractor.
Explanation:
A general contractor is in charge of the everyday supervision of the activities within a construction. The general contractor achieves this by organizing all the employees within the construction, providing them with all the necessary tools and legal permits to perform their duties. General contractors are also in charge of the communication of information to all relevant individuals involved in the construction.
A book publisher is about to set the list price (retail price) on a textbook. The choice of a low list price would mean less advertising than would be used for a higher list price. The amount of advertising will affect the number of copies sold. The publisher's criterion should be_____________.
Answer:
Maximize the difference between Output and Input
Explanation:
The publisher can get a higher margin by maximizing the output i.e. the number of copies of books sold and by minimizing the input i.e. costs.
A book publisher should choose the list price that maximizes profit. This involves considering the relationship between the list price, advertising costs, and volume of sales. The key is to find the optimal price that generates the highest return when taking into account these factors.
Explanation:The publisher's criterion in this case should be to choose the list price that maximizes profit. This involves striking a balance between the list price, the advertising costs, and the number of copies sold. For instance, if a low list price will result in less advertising but a higher volume of sales, this could lead to a higher overall profit. Conversely, if a higher list price necessitates more advertising but could potentially lead to lower sales volumes, this could decrease overall profit. The publisher must determine the optimal list price that will generate the highest return when taking into consideration these variables. In essence, the publisher needs to conduct a thorough cost-benefit analysis.
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Prepare journal entries to record the following four separate issuances of stock.
1. A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash.
Record the issue of 4,000 shares of $5 par value common stock for $35,000 cash.2. A corporation issued 2,000 shared of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value.
Record the issue of 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value.3. A corportation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has stated no value.
Record the issue of 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has no stated value.4. A corporation issued 1,000 shares of $50 par value preferred stock for $60,000 cash.
Record the issue of 1,000 shares of $50 par value preferred stock for $60,000 cash.
Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $35,000
To Common Stock $20,000 (4,000 shares × $5)
To Additional Paid-in Capital in excess of par - Common Stock $15,000
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
2. Promotion expenses A/c Dr $40,000
To Common Stock $2,000 (2,000 shares × $1)
To Additional Paid-in Capital in excess of par - Common Stock $15,000
(Being the issuance of stock is recorded to promoters and the remaining balance is credited to the additional paid-in capital account)
3. Promotion expenses A/c Dr $40,000
To Common Stock $40,000
(Being the shares are issued to promoters)
4. Cash A/c Dr $60,000
To Preferred Stock $50,000 (1,000 shares × $50)
To Additional Paid-in Capital in excess of par - Preferred Stock $10,000
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
The four journal entries record the issuance of common stock and preferred stock in exchange for cash and services. The entries account for par value, stated value, and no-value stock, as well as promoters' efforts.
Explanation:Journal entry recording can be done as follows:
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Why is the cyclically adjusted budget balance a better measure of the long-run sustainability of government policies than the actual budget balance
Answer:
because In the long run, real GDP tends to potential output.
Explanation:
Since actual GDP continues to increase economic output in the longer term, the seasonally adjusted annual budget balance is a better predictor of public policies ' long-term sustainability. ... Economic GDP dropped in recessions.
This means that incomes for consumers, business investment and profits for producers also fall.
The cyclically adjusted expenditure balance plays an important role in the EU budgetary framework, which still provides a better picture of fiscal policy focus.
Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former Communist nations of East Europe and central Asia?
a. The high levels of economic development in these countries
b. The signs of instability and growing unrest along with totalitarian tendencies seen in these countries
c. A strong commitment to market-bases economic systems seen in these countries
d. Low returns involned in doin business in these countries
Answer:
b. The signs of instability and growing unrest along with totalitarian tendencies seen in these countries
Explanation:
When a company invests money in a foreign country, they analize the economy of the country and the political environment, among other factor to be sure that there is stability in the country, the government and the laws so they can feel that their investment is safe. When these conditions are not guaranteed, businesses are less willing to make an investment. According to this, the conditions that are most likely to act as a deterrent for foreign firms willing to do business with former Communist nations of East Europe and central Asia is the signs of instability and growing unrest along with totalitarian tendencies seen in these countries as they feel that there can be changes at any moment that can make them lose money.
All of the following statements regarding management accounting's role in assigning decision-making authority are true except: Multiple Choice
a. Since management accounting information is used for decision-making purposes, historical information is unnecessary.
b. Information from the management accounting system supports decision-making.
c. The syllabus for a college course is a type of report that outlines students' decision-making responsibilities.
d. All members of an organization have some decision-making ability.
Answer:
All statements are TRUE except Option "A"
Explanation:
Accounting control history is used for policy-making objectives, and historical information is redundant.
Managerial accounting is used for short-and long-term decision making that involve overall financial health. It helps businesses make administrative decisions–meaning to help increase the efficiency and productivity of the business–while also helping to make long-term investment decisions.Therefore,all answers are correct except "A"
Final answer:
Option (a) is incorrect because historical information is essential in management accounting for informing future decision-making, providing benchmarks, and understanding past performance.
Explanation:
The multiple choice question presented pertains to the role of management accounting in decision-making and the assignment of decision-making authority within an organization. The option that does not accurately reflect the reality is:
a. Since management accounting information is used for decision-making purposes, historical information is unnecessary.
This statement is incorrect because management accounting indeed relies on historical data to inform decisions. Even though decision-making involves looking toward the future, past data provides valuable insights and benchmarks for assessing current and future initiatives.
Management accounting plays a crucial roles in supporting decision-making by providing relevant information, helping to define and clarify decision responsibilities, and ensuring that an adequate structure exists for efficient and effective decision processes. The provided references emphasize that decision-making often requires not just intuition but a sound basis of relevant information, acknowledging that historically informed data can shape future financial strategies in meaningful ways. The incorrect option suggests a misunderstanding that historical information is unnecessary, which contrasts with the importance of historical data as indicated in the references.
Sam agrees to sell ten tons of steel bars to Bill. The agreement states nothing about the place of delivery. The place of delivery is
Answer:
The seller's place of business if that is where the bars are located
Explanation:
The place of delivery is the seller's place of business if that is where the bars are located
Paul is a very driven person who believes his effort and attitude determines everything. Paul_ 1. believes in the protestant work ethic 2. has the growth mindset 3. has the fixed mindset 4. will succeed if only by his sheer will and effort O believes in the protestant work ethic O has the growth mindset O has the fixed mindset O will succeed if only by his sheer will and effort
Answer:
The correct option is 2. Has the growth mindset.
When a person believes in his/ her self, the person has a growth mindset.
The information that managers draw from both the internal and external information systems to make decisions is called
Answer:
The correct answer is letter "A": business intelligence.
Explanation:
Business Intelligence (BI) is the group of processes, applications, and technologies that facilitates the fast and easy acquisition of information coming from business management systems for its analysis and interpretation in a way that they can be taken as an advantage to make better decisions.