An HOA lien can be placed on homeowners who do not pay their home association fees. It is a legal claim against the property for the amount owed, and it can lead to restrictions on the sale or refinancing of the property.
The type of lien that can be placed on homeowners who do not pay their home association fees is known as an HOA lien.
Homeowners' associations have the authority to place a lien on a property if the homeowner fails to pay the required dues or assessments.
Unlike a municipal utility lien, which is related to unpaid utility bills to the municipality, or a vendor's lien, which involves a claim by someone who has provided labor or materials that improve the property and hasn't been paid, an HOA lien specifically relates to homeowners’ association dues. An HOA can typically enforce this lien by placing restrictions on the sale or refinancing of the property until the debt is paid.
To make your business messages more effective, revise for vigor and directness. You can strengthen your writing by unburying verbs, controlling exuberance, and choosing precise words. Which of the sentences contain buried verbs? Check all that apply.
a.The entire team prepared the proposal Paul submitted on Wednesday.
b.Please analyze last month's sales trends.
d.Give consideration to the economic climate.
c.The new filing system will increase efficiency.
Answer:
The correct answer is letter "D": Give consideration to the economic climate.
Explanation:
Buried verbs express actions using verb redundantly. Most of the time they are composed of two verbs unnecessarily jointed when only one of them could give meaning to the segment. The two words jointed become a noun. Buried verbs make sentences wordy and do not help in improving the clarity of the message. Thus, the sentence:
Give consideration to the economic climate.
Should only be:
Consider the economic climate.
The following selected account balances are provided for Delray Mfg. Sales $ 1,165,000 Raw materials inventory, beginning 35,000 Work in process inventory, beginning 58,500 Finished goods inventory, beginning 65,600 Raw materials purchases 184,800 Direct labor 249,000 Factory supplies used (indirect materials) 16,000 Indirect labor 48,000 Repairs—Factory equipment 5,250 Rent cost of factory building 52,000 Advertising expense 95,000 General and administrative expenses 130,000 Raw materials inventory, ending 40,100 Work in process inventory, ending 46,400 Finished goods inventory, ending 72,700 Prepare its schedule of cost of goods manufactured for the current year ended December 31.
Answer:
Cost of goods manufactured = $562,050
Explanation:
Delray Manufacturing
Schedule of cost of goods manufactured
For the current year ended December 31
Beginning Raw materials inventory $35,000
Add: Raw materials purchases $184,800
Raw materials available for sale $219,800
Less: Ending Raw materials inventory $(40,100)
Direct materials used = $179,700
Direct labor $249,000
Primary cost $428,700
Add: Factory Overhead
Factory supplies used $16,000
Indirect labor 48,000
Repairs—Factory equipment 5,250
Rent cost of factory building 52,000
Total factory overhead cost $121,250
Total manufacturing cost $549,950
Add: Beginning work-in-process $58,500
Less: Ending work-in-process $(46,400)
Cost of goods manufactured $562,050
On May 1, 2017, Sandhill Co. purchased the copyright to Monty Corp. for $104400. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be _____________.
Answer:
The amount of amortization expense recognized for the year 2017 would be =$174000.
Explanation:
Amortization expense for year 2017 = ($1044000 / 4 years) * 8 months/12 months
Amortization expense for year 2017 = ($261000*8 months/12 months)
Amortization expense for year 2017= $174000
"In 2014, real GDP per person in Bangladesh was" a. about 3 times as high as it was in the U.S. in 1870. b. about twice as high as it was in the U.S. in 1870. c. about the same as it was in the U.S. in 1870. d. less than it was in the U.S. in 1870.
Answer:
d. less than it was in the U.S. in 1870.
Explanation:
Gross domestic product per capita is a countrie's output that considers the number of people in the country. It is found by dividing the GDP by total population. This is a good measure of a countrie's standard of living and how the countrie's wealth impacts individual citizens.
GDP per capita for Bangladesh in 2014 was $1,163.04, while for the United States in 1870 it was $2,445.
Ratio of United States GDP to Bangladesh GDP= 2,445/1,163.04= 2.1
The United States GDP per capita in 1870 was about 2 times as high as that of Bangladesh in 2014.
An American Depositary Receipt (ADR) is a security issued by a U.S. bank and traded on a U.S. stock exchange that represents a specific number of shares of a foreign stock. For example, Nokia Corporation trades as an ADR under the symbol NOK on the NYSE. Each ADR represents one share of Nokia Corporation stock, which trades under the symbol NOK1V on the Helsinki stock exchange.
If the U.S. ADR for Nokia is trading for $ 7.18 per share, and Nokia stock is trading on the Helsinki exchange for euro 5.43 per share, use the Law of One Price to determine the current $/euro exchange rate. (Round to three decimal places.)
Answer:
Explanation:
Nokia is trading in US at $ 7.18 per share and at € 6.08 on Helsinki stock exchange.
Law of one price - Price of Nokia must be the same in both the countries. So current exchange rate is $7.18/€6.08 = $1.18/€
The Law of One Price states that the same good or asset should have the same price in different markets, after adjusting for transportation costs and other expenses.
Explanation:The Law of One Price states that the same good or asset should have the same price in different markets, after adjusting for transportation costs and other expenses. In this case, we can use the Law of One Price to determine the current $/euro exchange rate by comparing the price of Nokia stock in the U.S. market (ADR price) to its price in the Helsinki market.
To calculate the exchange rate, we divide the ADR price by the stock price in euros. So, $7.18 / €5.43 = 1.32. Therefore, the current $/euro exchange rate is approximately 1.32.
The following problem refers to a closed Leontief model. A closed model for an economy identifies government, the profit sector, the nonprofit sector, and households as its industries. Each unit of government output requires 0.3 unit of government input, 0.2 unit of profit sector input, 0.2 unit of nonprofit sector input, and 0.3 unit of households input. Each unit of profit sector output requires 0.2 unit of government input, 0.3 unit of profit sector input, 0.1 unit of nonprofit sector input, and 0.4 unit of households input. Each unit of nonprofit sector output requires 0.1 unit of government input, 0.1 unit of profit sector input, 0.2 unit of nonprofit sector input, and 0.6 unit of households input. Each unit of households output requires 0.05 unit of government input, 0.1 unit of profit sector input, 0.1 unit of nonprofit sector input, and 0.75 unit of households input. (a) Write the technology matrix T for this closed model of the economy.
Answer:
Detailed solution is given in the diagram attached.
In a Leontief model, the technology matrix shows the needed input from all sectors for each unit of output. It is created by putting the input requirement for each industry onto rows and the sectors themselves onto columns.
Explanation:The technology matrix, T, for this closed Leontief model of an economy, can be created by placing the input requirement of each sector for producing one unit output onto rows, and sectors themselves onto columns. The ordering of the rows and columns in the technology matrix would be Government, Profit, Non-Profit, and Household sectors. Therefore, matrix T can be written as:
T = [ [ 0.3, 0.2, 0.2, 0.3 ], [ 0.2, 0.3, 0.1, 0.4 ], [ 0.1, 0.1, 0.2, 0.6 ], [ 0.05, 0.1, 0.1, 0.75 ] ]
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The price of crude oil during the period 2000-2010 can be approximated by P(t) = 6t + 18 dollars per barrel (0 ≤ t ≤ 10) in year t, where t = 0 represents 2000. Saudi Arabia's crude oil production over the same period can be approximated by Q(t) = −0.036t2 + 0.62t + 8 million barrels per day (0 ≤ t ≤ 10). † Use these models to estimate Saudi Arabia's daily oil revenue and also its rate of change in 2006.
Saudi Arabia's daily oil revenue in 2006 can be estimated as $501.12 million. To find this, we substituted the value of t = 6 in both the price and quantity functions, then multiplied them together. The rate of change of revenue requires calculus and it's not typically a part of high school mathematics.
Explanation:To estimate Saudi Arabia's daily oil revenue in 2006, we need to substitute the value of t = 6 (since 2006 is six years from the year 2000 represented by t=0) into both equations. So,
To calculate the price of oil in 2006, substitute t = 6 in P(t) = 6t + 18, giving P(6) = 6*6 + 18 = $54 per barrel.For the quantity of oil, substitute t = 6 in Q(t) = -0.036t² + 0.62t + 8, yielding Q(6) = -0.036*6² + 0.62*6 + 8 ≈ 9.28 million barrels per day.The daily revenue is the quantity times the price: 9.28 * 54 ≈ $501.12 million.The rate of revenue change could be calculated by differentiating the revenue function respect to time and substituting t=6 into the derivative. Here, it's important to understand that the derivative of a function represents the rate of change of that function. However, this involves calculus which may out of high school course.Learn more about Rate of Change here:https://brainly.com/question/20816247
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One of the competitive dimensions that form the competitive position of a company when planning their strategies is making the best trade-off. True or False True False
Answer:
True.
Explanation:
Competitive dimensions are strategies that businesses use to achieve competitive advantage in the industry. For example if a company makes quick service delivery a tool to differentiate its services from others.
Competitive dimensions include low cost, flexibility, delivery, and quality.
When a company makes the best trade off it chooses the best option that will better drive it's success in the industry.
Answer: False
Explanation: A competitive strategy is a long-term plan of action that businesses create and adhere to in order to achieve a competitive advantage over their competitors after examining and reviewing their strengths and weaknesses and comparing them to their competitors. It is aimed at creating defensive position in an industry and generating a superior revenue, profits, returns on investment, customers etc. Competitive dimensions that there are include: Cost of Price, Quality, Delivery Speed, Delivery Reliability, Coping with Changes in Demand, Flexibility and New Product Introduction Speed.
The contrast error is committed when the rates rate people:
a) relative to performers in other organizations rather than performers in their own organization
b) relative to the previous year's performance rating
c) relative to the company's financial performance
d) relative to others instead of against performance standards
Answer:
d) relative to others instead of against performance standards.
Explanation:
Contrast error is one that occurs during performance rating where a person is not rated objectively, but against previous people who performed good or badly.
The person's ratings is affected negatively or positively.
A person that performs well subconsciously sets a benchmark in the mind of the rater, and he now rates future participants based on this benchmark and not on performance standards that have been set.
You are planning your retirement in 10 years. You currently have $200,000 in a bond account and $400,000 in a stock account. The stock account will earn an 11.5% return and the bond account will earn a 7.5% return. When you retire, you plan to withdraw an 2 equal amount for each of the next 25 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.75%. How much can you withdraw each year
Answer:
$134,235
Explanation:
The future value (FV) of each when you retire in 10 years:
FV of Bond = $200,000 *(1+7.5%)^10 = $412,206
FV of Stock = $400,000 *(1+11.5%)^10 = $1,187,979
After 10 years, the total amount you have is $1,600,185 (= $412,206 + $1,187,979)
The we use formula PMT in excel to calculate the amount you can withdraw in 25 years:
=PMT(6.75%,25,-1600185) = $134,235
Please see excel attached for the calculation.
Even Better Products has come out with an even better product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.03. Its earnings this year will be $2 per share. Investors expect a 12% rate of return on the stock.
Answer:
Price $17
PE ratio 8.5 times
Explanation:
As per given data
ROE = 20%,
Plowback ratio = b= 0.03,
EPS = $2,
k= 12%
As plowback referr to the retentrion value, deducting its effect from EPS
Dividend= EPS × ( 1 − b ) = $2 × ( 1 −0.03 )= $1.94
Growth = ROE x b = 20% x 0.03 = 0.006 = 0.6%
Using Dividendvaluation method we will calculate the price.
Price = Dividend / (Rate of return - Growth rate )
Price = $1.94 / ( 12% - 0.6% ) = $17
P / E Ratio = Price / EPS = $17 / $2 = 8.5
Which of the following managerial skills do supervisors and other managers rely on when they need to assign tasks and explain job responsibilities, task objectives, and performance expectations?
A. Envisioning change
B. Taking risks for change
C. Clarifying roles
D. Monitoring operations
Answer:
The correct option is C
Explanation:
Role clarification is designed to help team members and team leader develop clarity about the roles and responsibility of the team.
Compared to other groups, the _______________ generational cohort is more likely to complain, need special attention, and take time browsing before making a purchase decision.
Answer:
Seniors
Explanation:
The seniors generational cohorts refers to the generation that preceded the generation of baby boomers classified as those individuals who were born between 1946 and 1964.
The seniors generation is habitually complaining, something inherited from their witnessing times of wars and periods of uncertainties and financial distress.
This generation commands respect, special attention and at the same time are more miserly in their spending habits.
Also a common observation being, these individuals are not well familiar and adept with technological advancements such as gadgets, systems and modern day appliances in the sense they require more time to get used to them.
Which statement is NOT true about the food industry and their lobbyists' influence on government legislation? They influence favorable legislature for the food manufacturers and producers. That no government agency says to the American people to "eat less". Promotes comsumption of fresh fruits and vegetable and reducing consumption from refined grain products. Encourages the government to pass favorable legislation for the food industry.
Answer:
The answer is C.
Explanation:
Just as almost every industry, American Food Industry also has lobbyists who work to influence the politicians and legislators and control the legislations in a way that is profitable for the industry.
Among the given options, A and D are true about the food industry and their lobbyists' influence, they do influence favorable legislature for the industry.
B is also true because telling people to eat less is not profitable for the food industry.
Option C, promoting consumption of fresh fruits and vegetables is not a true statement regarding the food industry and their lobbyists.
I hope this answer helps.
When Sunshine Inc., a cosmetics manufacturer, introduced an additional line of perfumes, the response from its existing customers was good. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy.Select one:a. market developmentb. product developmentc. market diversificationd. product differentiatione. market penetration
Answer:
B. Product development
Explanation:
A product development strategy is used when an existing company, with an existing customer base, tries to grow by introducing new products and/or services that target its customer base. This strategy entails more risk than market penetration but similar risks that market development.
The company can extend its product range by:
Research and Development investment, commonly used by tech companies like Apple who extend their product range constantly.
Buying the rights to produce products and services originally developed by other companies.
-Investing in the R&D of additional products, like when Microsoft developed Xbox One X.
-Getting the rights to produce someone else's product, like when Dinsey bought Marvell CU.
-Acquiring a popular product and rebranding it as its own product, like when google bought Picassa and launched Google Photos.
-Cooperating with other companies to develop products and services (shared ownership), which is very common in tech industries.
sample of 17001700 computer chips revealed that 51Q% of the chips do not fail in the first 10001000 hours of their use. The company's promotional literature states that 48H% of the chips do not fail in the first 10001000 hours of their use. The quality control manager wants to test the claim that the actual percentage that do not fail is different from the stated percentage. Determine the decision rule for rejecting the null hypothesis, H0H0, at the 0.010.01 level.
Answer:
The decision rule for rejecting H0 is if the test statistic falls outside the region bounded by the critical values.
Explanation:
Null hypothesis: The actual percentage that do not fail is the same as the stated percentage.
Alternate hypothesis: The actual percentage that do not fail is different from the stated percentage.
Test statistic (z) = (p' - p) ÷ sqrt[p(1-p) ÷ n]
p' is sample proportion = 0.51
p is population proportion = 0.48
n = 1700
z = (0.51 - 0.48) ÷ sqrt[0.48(1-0.48) ÷ 1700] = 0.03 ÷ 0.012 = 2.5
The test is a two-tailed test. At 0.01 significance level, the critical values are -2.576 and 2.576
Decision rule:
Reject H0 (null hypothesis) if the test statistic falls outside the region bounded by the critical values -2.576 and 2.576.
Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer has access to knowledge, information and skills desired by the supplier, this is called a(n) ________ source of power.
Answer:
This is called an expert source of power
Explanation:
An expert power is a perception or belief that an individual has some or possesses relevant expertise or special knowledge in a particular area that others do not have. In a business setting, when a buyer has access to knowledge, information and skills desired by the supplier, it is known as an expert source of power.
You are evaluating the purchase of Cellars, Inc. common stock that just paid a dividend of $1.80. You expect the dividend to grow at a rate of 12% for the next three years. You plan to hold the stock for three years and then sell it. You estimate that a required rate of return of 17.5% will be adequate compensation for this investment. Calculate the present value of the expected dividends.
A) $4.91
B) $5.40
C) $9.80
D) $6.80
Answer:
A) $4.91
Explanation:
The computation of the present value of the expected dividends is shown below:
Particulars Dividend Discount factor Present value
Dividend in year 1 $2.02 0.851 $1.72
Dividend in year 2 $2.26 0.724 $1.64
Dividend in year 3 $2.53 0.616 $1.56
Present value $4.91
The value of the dividend is come after considering the growth rate of 12%
Good cash management is an essential job of the financial manager. You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budget indicates that your MONTHLY NET CASH for the year will be the following:
JAN $5,000
FEB -$30,000
MAR $20,000
APRIL -$35,000
MAY $25,000
JUNE -$10,000
JULY $25,000
AUG $25,000
SEPT -$30,000
OCT $15,000
NOV $15,000
DEC $25,000
You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month.
1. Prepare a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission.
2. Do you believe that the company needs outside financing?
3. What is the minimum line of credit to request from a lender?
Do you think you are a good candidate for the line of credit? Why?
Answer:
Explanation:
The answer to the above question is given in the attached document.
Answer:
The prepared cash flow and external funding summary are found in the attached.
I believe the company needs external funding in February-June as well as in September.
The company is a good candidate for line of credit as it has positive cash flows with which it could pay back any external financing taken.
The minimum line of credit required is $40,000 as shown by cash flow summary in April.
Explanation:
Find attached for details
The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 819,000 Net income for the year 230,000 Cash dividends declared for the year 42,000 Retained earnings balance at the end of the year 1,007,000 Cash dividends payable at the beginning of the year 10,000 Cash dividends payable at the end of the year 11,000 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?a. $42,000.b. $42.000c. $43,000d. $63.000.e. $1,000f. $41000
Answer:
Correct option is F,$41,000
Explanation:
The cash dividends paid in the year is the sum of the cash dividends payable at the beginning of the year and cash dividends declared in the year less cash dividends payable at the end of the year.
The cash dividends paid in the year is summarized thus:
Cash dividends payable at the beginning of the year $10,000
Cash dividends declared in the year $42,000
Cash dividends payable at the end of the year ($11,000)
cash dividends paid in the year $41000
This cash dividends paid would appear under the financing activities section of the cash flow statement as an outflow.
Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Express believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,112,000.
What is the company’s break-even point in total sales dollars? At the break-even point, how much of the company’s sales are provided by each type of service?
Answer:
Break even sales = $43,706,666.7
Sale of small boxes and mail pouches = $34,965,333.4
Sales from non standardized boxes = $6,993,066.68
Explanation:
The computation of given question is below:-
Sales
= (0.8 × 0.20)Sales + (0.20 × 0.70)Sales = $13,112,000
0 .16 × sales + 0.14 × sales = $13,112,000
0.30 × Sales = $13,112,000
Break even sales = $43,706,666.7
Sale of small boxes and mail pouches
= $43,706,666.7 × 0.80
= $34,965,333.4
Sales from non standardized boxes
= $34,965,333.4 × 0.20
= $6,993,066.68
Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a long-term investment for $500,000 cash on July 1. JBI Corp. paid $5,000 in total cash dividends on November 1 and reported net income of $100,000 for the year. (1) - (3) Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income.
Rowan Co.'s entries to record the purchase, receipt of dividends, and year-end adjustment for its shareholding in JBI Corp. would be: Purchase, Debit: Long-Term Investments $500,000, Credit: Cash $500,000; Dividends, Debit: Cash $2,000, Credit: Dividend Income $2,000; Year-End Adjustment, Debit: Investment in JBI Corp. $40,000, Credit: Investment Revenue $40,000.
Explanation:First, Rowan Co. would record the purchase of the shares from JBI Corp. by debiting the long-term investment account and crediting cash for the purchase amount of $500,000. The entry would appear as such: Debit: Long-Term Investments $500,000, Credit: Cash $500,000.
Second, when Rowan Co. receives its share of the dividends from JBI, it would debit cash and credit dividend income for its corresponding 40% share of $5,000 (which is $2,000). The entry would be: Debit: Cash $2,000, Credit: Dividend Income $2,000.
Finally, for the year-end adjustment, Rowan Co. would recognize its 40% share of JBI Corp.'s net income of $100,000. This is not actual cash received, but an increase in the investment's value. They would debit Investment in JBI Corp. for $40,000, Credit: Investment Revenue $40,000. This reflects their share of the earnings.
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Is Dropbox profitable as of June 2010? Are you optimistic about its chances? How does your estimation of Dropbox’s current profitableness influence your rating of the venture’s chances?
Answer: yes and am optimistic about its chances.
Explanation: in the first place this question is incomplete, i saw the full question online.
Let me say that Dropbox will be profitable as of June 2010 and I’m optimistic about its chances because Houston had invented a good merchandise and selling scheme. he was able to concentrate on the growth of Dropbox and utilize the turning market to his advantage. As IDC projected an one-year growing of 28 % for this market to $ 2. 5 billion Dollar in 2014 I assume that this market has a large turning possible and Dropbox will be profitable in the coming old ages due to this growing rate.
Dropbox was not profitable in June 2010, but its future profitability depended on factors like scaling, monetization, and cost control. Optimism about Dropbox's chances would be influenced by a belief in its growth strategy and potential for future profitability.
Explanation:As of June 2010, Dropbox was not profitable. It had revenue of $46.7 million but incurred a net loss of $5.7 million. The company was still in the early stages of growth and focused on acquiring more users and expanding its product offering.
Being unprofitable at that time does not necessarily indicate a lack of potential for future profitability. Dropbox had a strong user base and a unique product that filled a need in the market. The company's profit potential would depend on its ability to scale, monetize its user base, and control costs.
As an investor or analyst, one could be optimistic about Dropbox's chances if they believed that the company had a solid growth strategy and the potential to become profitable in the future. However, it is important to consider various factors beyond just profitability, such as market dynamics, competition, and management team.
For a good that is a necessity, a. quantity demanded tends to respond substantially to a change in price. b. demand tends to be inelastic. c. the law of demand does not apply.
Answer:
The correct answer is letter "B": demand tends to be inelastic.
Explanation:
Inelasticity is a characteristic that goods and services have by which their demand does not change in front of fluctuations in price. Consumer staples are considered inelastic goods since people need them to cover basic needs.
Inelasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is lower than one (1) the demand for that good or service is inelastic.
Iz, Lauren, Odd, and Ralph started a T‑shirt company. They can produce any number of T‑shirts at a cost of $ 2 per T‑shirt, both marginal and average. They are the only producers of T‑shirts. As monopolists, they charge $ 20 per T‑shirt and obtain total profits of $ 10,000 . Now assume there are creative differences and they split the company in two. Lauren and Ralph join together and compete against Iz and Odd. If they compete on quantity, each company would produce 50 T‑shirts and charge $ 12 a T‑shirt. For technical reasons, assume that the quantity demanded is greater than zero for all prices greater than $0. If, however, Ralph and Lauren compete directly against Iz and Odd in prices, the market price for T‑shirts will be
Ralph and Lauren compete directly against Iz and Odd in prices, the market price for T‑shirts will be $2.
Explanation:
Market price falls to marginal cost when the firms compete against each other. Thus, in this case, the market price for the T-shirt will be $2.As, the price is equal to marginal cost as per the given information, the firms profit will lead to 0. there will be no economic profit.The given type of differentiation is known to be as the product differentiation.The basic reason to put the iguana on the t-shirts is to enhance the profitability.Assume that you have taken over management of a small concession stand on a local beach for the summer. Your main product is iced water, popular on hot days. You've been selling 400 cups per day at 50 cents each. The cups cost 5 cents each. One of your customers suggests that you cut the price to 40 cents to make more money. For the customer to be correct, how much must your sales increase?
Answer:
For the customer to be correct, I must increase my sales by 115, from 400 cups to 515 cups.
Explanation:
Considering that the cost of each cup of iced water has a cost of 5 cents, and that its sale price is 50 cents, we can say that each cup has a net profit of 45 cents. At the same time, at that price about 400 cups are sold per day, that is, a profit of $ 180 per day.
If the consumer were ignored regarding lowering the price of each cup to $ 0.40, a benefit of $ 0.35 would be obtained for each sale. Therefore, to maintain the same profit money, 515 should be sold instead of 400 cups per day (180 / 0.35 = 514.2), which would report about $ 180.25 in profit.
The U.S. imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely:_________
Answer:
Explanation:
The U.S. imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to rise.
Answer:
The demand for home cigarette rolling macines will most likely increase
Explanation:
First, the imposition of substanal taxes on cigarettes means that the cost of consuming a cigarette will increase substantially as well. This means the consumers of cigarette will begin to look for cheaper alternatives to buying already manufactured cigarettes
The most obvious alternative is to get a home cigarette rolling machine and since the demands for the home cigarettes will go up it means the price of the cigarette rolling machines will also rise. Furthermore, the quantity of the machines purchased will rise as well.
The reason for this reaction is that Tobacco and Cigarette roling machines are complementary goods, while The Cigarette rolling machines and cigarettes are substitute goods. As the price of the cigarettes go up, the demand for cigarette rolling machines increase, due to the low cost of getting loose tobacco.
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, and one magazine. In year one, the basket costs $8.00.In year two, the price of the same basket is $7.00.
From year one to year two, there is ____ at an annual rate of ____.
In year one, $40.00 will buy ____ baskets, and in year two, $40.00 will buy ____ baskets.
This example illustrates that, as the price level falls, the value of money ____.
Answer:
Deflation; 12.50%
5; 5.71
Increases
Explanation:
The percentage change in the basket cost is:
[tex]P = \frac{7.00-8.00}{8.00}=-0.125 = -12.50\%[/tex]
A negative change in cost means that there was a deflation.
From year one to year two, there is deflation at an annual rate of 12.50%.
The number of baskets that could be bought in years one and two are:
[tex]n_1 = \frac{40}{8} =5\\n_2 = \frac{40}{7}=5.71[/tex]
In year one, $40.00 will buy 5 baskets, and in year two, $40.00 will buy 5.71 baskets.
This example illustrates that, as the price level falls, the value of money increases.
The price level decreases from year one to year two at an annual rate of 12.5%, and the value of money increases as a result.
Explanation:From year one to year two, there is a decrease in the price level by $1.00 at an annual rate of 12.5%. In year one, $40.00 will buy 5 baskets, and in year two, $40.00 will buy 5.71 baskets. This example illustrates that, as the price level falls, the value of money increases.
Government Policies: Governments and central banks may implement policies to stabilize the price level and control inflation. For example, they may use monetary policy (such as adjusting interest rates) or fiscal policy (such as taxation and government spending) to influence economic conditions.
Impacts on Businesses: Changes in the price level can affect businesses in various ways. For example, inflation may increase production costs, while deflation may lead to lower revenue and potentially reduced profitability.
International Trade: Changes in the price level can impact a country's competitiveness in international trade. High inflation may erode a country's competitiveness, while deflation may make its exports more attractive.
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In the case of a negative shock to aggregate demand, the central bank should: increase the rate of growth of the money supply to restore spending growth. decrease the rate of growth of the money supply to control inflation. do nothing. decrease the rate of growth of the price level to keep real growth high.
Answer: increase the rate of growth of the money supply to restore spending growth.
Explanation:an increase in money supply growth. If the Federal Reserve offsets a negative shock to aggregate demand with increased money growth: both inflation and real GDP growth will rise.
During its first year of operations, Silverman Company paid $19,000 for direct materials and $10,500 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,500 while general, selling, and administrative expenses totaled $5,000. The company produced 6,500 units and sold 4,000 units at a price of $8.50 a unit.What is the amount of finished goods inventory on the balance sheet at year-end?
Answer:
$15000
Explanation:
DM + DL + Overhead = Total manufacturing cost
where, DM = Direct Material and DL = Direct Labor
(19000 + 10500 + 9500)/ 6500 = 6
The cost of goods manufactured can be calculated by adding direct labor costs @ $10500, direct material costs @ $19000 and overhead costs @ $9500 and dividing it by 6500, we get $6.
Now, 4000 units has been sold so 2500 units are in ending inventory. The total amount in ending inventor is "
2500*6 = 15000
Answer:
The inventory value in the balance sheet is $ 15,000
Explanation:
Computation of per unit cost of production
Direct materials $ 19,000
Direct Labor $ 10,500
Production facilities related cost $ 9,500
Total cost of production $ 39,000
Units produced 6,500 units
Pr]oduction cost per unit $ 6 per unit
Units sold 4,000 units
Units in hand ( 6,500 produced - 4,000 sold) 2,500 units
Inventory value 2,500 units on hand * $ 6 per unit $ 15,000