Answer: KWD; $99474 avoided
Explanation:
From the question, we're informed that the buyer was aware that the KWD had strengthened against the USD since 2003 coupled with the fact that KWD is a floating currency, it'll have been better if the contract was written in KWD as this will mean lesser money is paid.
Since 1 USD = 0.2816 KWD, and has been predicted to reduce to 1 USD = 0.265, the company would save:
= $1,588,000 × (0.2816-0.265)/0.265
= ($1,588,000 × 0.0166)/0.265
= $26360.8/0.265
= $ 99474
which of the following is an example of knowledge? Group of answer choices The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction. The Web-based application that collects and stores records of customer satisfaction surveys and allows dealerships to view their data. Reports that summarize ratings for a specific dealership including a calculation of the average rating across all survey questions and a calculation of summary statistics for groups of questions that correspond to important dimensions such as dealership staff, satisfaction with product, quality of service and so on. Innovative policies developed by corporate strategists who analyzed the reasons for the sales drop in order to reverse the recent downward trend
Answer:
The correct answer is: The ability to create a program that provides rewards for dealerships with high levels of customer satisfaction and corrective action plans for dealerships that have low levels of satisfaction.
Explanation:
Knowledge management can be understood as the information technology systems existing in a company whose objective is to assist in the organizational decision-making process, that is, it is the knowledge that the entire organization has from its data and information and that can be transformed into knowledge so that there are greater advantages in the company's internal and external management. Some of the advantages arising from knowledge management are: better management practices, cost reduction, faster processes, increased quality, greater competitiveness, greater consumer satisfaction, etc.
The Reynolds Corporation buys from its suppliers on terms of 2/12, net 45. Reynolds has not been utilizing the discounts offered and has been taking 45 days to pay its bills. Ms. Duke, Reynolds Corporation's vice president, has suggested that the company begin to take the discounts offered. Duke proposes that the company borrow from its bank at a stated rate of 16 percent. The bank requires a 11 percent compensating balance on these loans. Current account balances would not be available to meet any of this compensating balance requirement.
Required:
a. Calculate the cost of not taking a cash discount.
b. Calculate the Effective rate of interest if the company borrow from the bank.
Answer:
A. 22.56%
B. 17.97%
Explanation:
a. Calculation for the cost of not taking a cash discount.
Cost of not taking cash discount = ( 2% / 98% )* ( 365 / (45 - 12) )
Cost of not taking cash discount=0.0204*365/33
Cost of not taking cash discount=7.446/33
Cost of not taking cash discount=0.2256*100
Cost of not taking cash discount= 22.56%
Therefore the Cost of not taking cash discount will be 22.56%
b. Calculation for the rate of interest if the company borrow from the bank.
Annual rate of interest = 16% / (1- 11%)
Annual rate of interest = 0.16/0.89
Annual rate of interest = 0.1797*100
Annual rate of interest = 17.97%
Therefore the rate of interest if the company borrow from the bank will be 17.97%
Discuss briefly how each of the following changes would affect the natural rate of unemployment.
a. Schools operate for the full year, so no students are looking for summer work.
b. The Internet lists all the jobs available in the whole country, so it is easier for job seekers to locate potential jobs.
c. People who quit their jobs are drafted into low-wage community-service jobs.
d. In addition to unemployment insurance, the unemployed receive a bonus for finding new jobs; the bonus is greater if the job is found in the first few weeks of search and declines with the duration of search.
Answer:
a. Schools operate for the full year, so no students are looking for summer work.
This will cause that the total labor force decreases, so the natural rate of unemployment will decrease. The natural rate of unemployment includes only structural and frictional unemployment. Since no students will look for summer jobs, then frictional unemployment will decrease, therefore, total natural unemployment will decrease also.
b. The Internet lists all the jobs available in the whole country, so it is easier for job seekers to locate potential jobs.
This will help to decrease structural unemployment which will in turn decrease the natural rate of unemployment. Structural unemployment happens when an unemployed individual cannot find a job that fits his/her skills. Internet job postings will make it easier for unemployed people to find jobs that match their skills.
c. People who quit their jobs are drafted into low-wage community-service jobs.
This should reduce frictional unemployment (which reduces the natural rate of unemployment), since frictional unemployment is made up of people that quit their jobs in order to search a better job or are looking for their first job ever. If people realize that quitting their current jobs will result in them being drafted into low wage jobs, less people will quit their jobs. This doesn't mean that they will stop searching for a better, it means that they will continue searching for a better while still employed.
d. In addition to unemployment insurance, the unemployed receive a bonus for finding new jobs; the bonus is greater if the job is found in the first few weeks of search and declines with the duration of search.
This should motivate people to get any available job as quick as possible. Sometimes a person that is fired will not accept possible jobs because they consider that they can get a better job, so they decide to wait until they get the job that they want. If a bonus is given, a lot of people will be motivated to accept any new job that they can find as long as it allows them to collect the bonus. This doesn't mean that they will quit looking for their dram job or the job that they deserve, it means that they will be working while doing so. This should decrease the natural rate of unemployment.
Below you are given calories and protein of 7 whey protein brands
#
Calories
Protein
1
250
25
2
287
23
3
184
28
4
263
28
5
244
28
6
191
28
7
215
30
For these data (the two variables), compute:
a) The mean, median, first quartile and third quartile.
b) Compute the range, interquartile range, variance, standard deviation and coefficient of variation.
c) Compute the z-score;
d) Compute the variance and correlation between the two variables.
e) Ensure that you comment each obtained result.
Answer:
a b e
Explanation:
hope this helps
On January 1, you plan to take a trip around the world upon graduation four years from now. Your grandmother wants to deposit sufficient funds for this trip in an investment account for you. On the basis of a budget, you estimate that the trip currently would cost $15,000. Being the generous and sweet lady she is, your grandmother decided to deposit $3,500 in the fund at the end of each of the next four years, starting on December 31, 2018. The account will earn 6 percent annual interest, which will be added to the account at each year-end.
Required:
How much interest revenue did the fund earn in 2015, 2016, 2017, and 2018?
Answer:
nterest earned for year 1 is zero because the investment made is at the end of the year
Interest earned for year 2 is $210
Interest earned for year 3 is $433
Interest earned for year 4 is $669
Explanation:
We will use the annuity formula to compute the net interest earned for the next 4 years.
Annuity Value = Present Value * Annuity Factor
Here
Annuity factor = [1 - (1 + r)^-n] / r
r is 6%
n is 4 years
The present value is $3500
By putting above values in the equation we have:
Annuity Value = $3500 * [1 - (1 + 6%)^-4] / 6%
= $3500 * 4.374616 = $15,311.156
This is the annuity value of the yearly investment of $3500 for 4 consecutive years.
The interest portion = $15,311.156 - ($3500 * 4) = $1,311.156
Interest earned for year 1 is zero because the investment made is at the end of the year
Interest earned for year 2 = ($3500 * (1.06)) - $3500 = $210
Interest earned for year 3 = ($3500 * (1.06)^2) - $3500) = $433
Interest earned for year 4 = ($3500 * (1.06)^3) - $3500 = $669
Answer:
nterest earned for year 1 is zero because the investment made is at the end of the year
Interest earned for year 2 is $210
Interest earned for year 3 is $433
Interest earned for year 4 is $669
Explanation:
The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporation (FRC). ($ in millions) Debit(Credit) PBO Plan Assets Prior Service Cost Net (Gain)/Loss Pension Expense Cash Net Pension (Liability)/ Asset Beginning balance (820 ) 40 (102 ) Service cost 74 Interest cost 41 Expected return on assets 80 Gain/loss on assets (2 ) Amortization of: Prior service cost (8 ) Net gain/loss 3 Loss on PBO (9 ) Contributions to fund (57 ) Retiree benefits paid (77 ) Ending balance 825 (93 ) What was the net pension asset/liability reported in the balance sheet at the end of the year
Answer: Net Pension liability of $42 million
Explanation:
Net Pension Asset (Liability) = Ending Plan Assets - Ending PBO
Ending PBO = Beginning PBO + Service Cost + Interest cost + Loss on PBO - Retiree benefits paid
= 820 + 74 + 41 + 9 - 77
= $867
Net Pension Assets (Liability) = 825 - 867
= -$42 million
Jacob is a participant in JJ's defined benefit plan. Jacob is 37 years old and earns $160,000. He has 4 years of service for purposes of the plan and has worked at the firm for 5 years. The plan provides a benefit of 1.5% for each year of participation. The plan has the least generous vesting schedule possible. Almost 70 percent of the accrued benefits are attributable to the fifteen equal owners, who have all been working at the company for decades. If Jacob were to leave today, what percent of his salary (as defined by the plan) could he expect to receive at normal retirement? a. 3.6%. b. 4.8%. c. 6.0%. d. 6.4%.
Answer:
d. 6.4%.
Explanation:
Even though 70% of the benefits are allocated to 15 key employees (and also co-owners), non-key employees must receive a minimum benefit.
This minimum benefit = 2% x the number of years in service (for the purpose of the plan) = 2% x 4 = 8%. But this minimum benefit is reduced depending on the % of vesting which in this case = 4 years /5 years = 0.8.
total benefit = 8% x 0.8 = 6.4%
Which option is most likely a complementary good for a smartphone?
A. Smartphone headphones
B. Smartphone taxes
C. Smartphone factories
O D. Smartphone online reviews
SUBMIT
Answer:
A.
Explanation:
A. Smartphone headphone is the correct answer, because complementary goods are goods that sell together so, smartphone and headphones are complementary goods.
For a smartphone, the best complementary good is smartphone headphones. Therefore, Option A is correct.
What are complementary goods?Goods that are best when put together and provide complementary service to the customer that provides more comfort to the customer are termed as complementary goods. In other words, the usage of both the products will provide happiness to the customer.
In the case of smartphones, it is best when the headphones that support the smartphone are also available with it as a complementary product. From the point of view of a customer, when the headphones are available, they will be complementary to them.
Therefore, Option A is correct.
Learn more about complementary goods from here:
https://brainly.com/question/14665758
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What is one benefit of a limited liability company over a corporation
A review of the ledger of Wildhorse Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries.
1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $750 each per week, and three employees earn $480 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.
2. Unearned Rent Revenue $400,410. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,010 security deposit that is not refundable until occupancy is terminated. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.
Date Term (in months) Monthly Rent Number of Leases
Nov. 1 6 $6,670 5
Dec. 1 6 $6,060 4
Prepaid Advertising $18,000. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below.
Contract Date Amount Number of Magazine Issues
A650 1-May $8,400 12
B974 Oct. 1 9,600 24
The first advertisement runs in the month in which the contract is signed.
Notes Payable $56,200. This balance consists of a note for one year at an annual interest rate of 12%, dated June 1.
Required:
Prepare the adjusting entries at December 31, 2020.
Answer:
Salaries expense 5,190
Salaries payable 5,190
unearned rent revenue 90940 debit
rent revenue 90940 credit
advertizing expense 6,800 debit
prepaid advertising 6,800 credit
interest expense 3,934 debit
interest payable 3,934 credit
Explanation:
Salaries accrued
5 employes $750 each = 3750
3 employees $480 each = 1440
Total = 5190
Rent revenue
$6,670 per month x 5 lease x 2 months (from Nov 1st to Dec 31st) =66700
$6,060 per month x 4 lease x 1 month = 24240
total 90940
advertizing:
8,400 / 12 months x 8 months expired = 5600
9,600 / 24 months x 3 months expired = 1200
total 6,800
interest on note payable:
principal x rate x time
56,200 x 12% x 7/12 = 3,934
why does the federal reserve choose to increase the money supply?
To control the supply of money to help stabilize the economy
Explanation:
An increase in the supply of money works both through lowering interest rates, which spurs investment, and through putting more money in the hands of consumers, making them feel wealthier, and this stimulates spending.
The Nite Lite Company manufactures small lamps and desk lamps. The following shows the activities per product:
Set-ups Inspections Assembly (DLH)
Small Lamps - 4,000 units 4,000 16,000 4,000
Desk Lamps - 8,000 units 16,000 8,000 24,000
Using the following information prepared by the Nite Lite Company, determine the total factory overhead rate to be charged to desk lamps.
Activity Pool Activity Base Budgeted Amount
Set-ups 20,000 $60,000
Inspections 24,000 $120,000
Assembly (DLH) 28,000 $420,000
a. $380,000
b. $184,000
c. $152,000
d. $448,000
Answer:
Total allocated overhead= $448,000
Explanation:
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Set-ups= 60,000/20,000= $3 per setup
Inspections= 120,000/24,000= $5 per inspection
Assembly (DLH)= 420,000/28,000= $15 per direct albor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Desk Lamps:
Set-ups= 3*16,000= $48,000
Inspections= 5*8,000= $40,000
Assembly (DLH)= 15*24,000= $360,000
Total overhead= $448,000
Ryan Terlecki organized a new Internet company, CapUniverse, Inc. The company specializes in baseball-type caps with logos printed on them. Ryan, who is never without a cap, believes that his target market is college and high school students. You have been hired to record the transactions occurring in the first month of operations.
a. Issued 2,300 shares of $0.01 par value common stock to investors for cash at $23 per share.
b. Borrowed $61,000 from the bank to provide additional funding to begin operations; the note is due in two years.
c. Paid $2,200 cash for rent of a warehouse: $1,100 for the current month’s rent and another $1,100 for next month’s rent.
d. Paid $2,160 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense).
e. Purchased furniture and fixtures for the warehouse for $20,000, paying $3,100 cash and the rest on account.The amount is due within 30 days.
f. Purchased for $3,800 cash The University of Pennsylvania, Notre Dame, The University of Texas at Austin, The Ohio State University, and Michigan State University baseball caps as inventory to sell online.
g. Placed advertisements on Google for a total of $330 cash; the ads were run immediately.
h. Sold caps totaling $1,900, half of which was charged on account.
i. The cost of the caps sold was $1,100. (Hint: Make two entries.)
j. Made full payment for the furniture and fixtures purchased on account in (e).
k. Received $210 from a customer on account.
Required:
For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L). stockholders' equity (SE). revenue (R), or expense (E). Note that transaction(h). will require two entries, one for revenue and one for the related expense.
Answer:
a. Issued 2,300 shares of $0.01 par value common stock to investors for cash at $23 per share.
Dr Cash (A) 52,900
Cr Common stock (SE) 23
Cr Additional paid in capital (SE) 52,877
b. Borrowed $61,000 from the bank to provide additional funding to begin operations; the note is due in two years.
Dr Cash (A) 61,000
Cr Notes payable (L) 61,000
c. Paid $2,200 cash for rent of a warehouse: $1,100 for the current month’s rent and another $1,100 for next month’s rent.
Dr Rent expense (E) 1,100
Dr Prepaid rent (A) 1,100
Cr Cash (A) 2,200
d. Paid $2,160 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense).
Dr Prepaid insurance (A) 2,160
Cr Cash (A) 2,160
e. Purchased furniture and fixtures for the warehouse for $20,000, paying $3,100 cash and the rest on account. The amount is due within 30 days.
Dr Furniture and fixtures (A) 20,000
Cr Cash (A) 3,100
Cr Accounts payable (L) 16,900
f. Purchased for $3,800 cash The University of Pennsylvania, Notre Dame, The University of Texas at Austin, The Ohio State University, and Michigan State University baseball caps as inventory to sell online.
Dr Merchandise inventory (A) 3,800
Cr Cash (A) 3,800
g. Placed advertisements on Google for a total of $330 cash; the ads were run immediately.
Dr Advertising expense (E) 330
Cr Cash (A) 330
h. Sold caps totaling $1,900, half of which was charged on account.
i. The cost of the caps sold was $1,100. (Hint: Make two entries.)
Dr Accounts receivable (A) 1,900
Cr Sales revenue (R) 1,900
Dr Cost of goods sold (E) 1,100
Cr Merchandise inventory (A) 1,100
j. Made full payment for the furniture and fixtures purchased on account in (e).
Dr Accounts payable (L) 16,900
Cr Cash (A) 16,900
k. Received $210 from a customer on account.
Dr Cash (A) 210
Cr Accounts receivable (A) 210
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments.
In 2021, Isaac had $653 million in sales of this type. Scheduled collections for these sales are as follows:
2021 $70 million
2022 128 million
2023 126 million
2024 156 million
2025 173 million
$653 million
Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2022 what deferred tax liability would Isaac report in its year-end 2022 balance sheet?
Answer:
$146 million
Explanation:
Calculation for the deferred tax liability that Isaac would report
Using this formula
Deferred tax liability=Total future taxable income × Tax rate
Let plug in the formula
Deferred tax liability=($653 million- $70 million) *25%
Deferred tax liability=$583 million *25%
Deferred tax liability=$145.75 million approximately $146 million
Therefore the deferred tax liability that Isaac would report will be $146 million
This isn’t really a question but how was your day & what do you look forward to this year?
(Marking first answer brainlist if only the have a 2-3 sentence)
Answer:
My day was pretty good, I just did schoolwork and had soccer practice. This year Im really looking forward to Christmas because I have a big list and Christmas is just my favorite holiday. But how was your day?
Explanation:
Exercise 5-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-Average Method [LO5-2, LO5-3, LO5-4] Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow: Percent Complete Units Materials Conversion Work in process inventory, May 1 70,000 100 % 40 % Work in process inventory, May 31 50,000 100 % 25 % Materials cost in work in process inventory, May 1 $ 56,100 Conversion cost in work in process inventory, May 1 $ 16,400 Units started into production 255,000 Units transferred to the next production department 275,000 Materials cost added during May $ 112,900 Conversion cost added during May $ 236,600 Required: 1. Calculate the first production department's equivalent units of production for materials and conversion for May. 2. Compute the first production department's cost per equivalent unit for materials and conversion for May. 3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.
Answer:
1. Calculate the first production department's equivalent units of production for materials and conversion for May.
materials = 275,000 + 50,000 = 325,000conversion = 275,000 + 12,500 = 287,5002. Compute the first production department's cost per equivalent unit for materials and conversion for May.
materials = $169,000 / 325,000 = $0.52conversion = $253,000 / 287,500 = $0.883. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.
materials = 50,000 x $0.52 = $26,000conversion = 12,500 x $0.88 = $11,000total = $37,0004. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.
materials = 275,000 x $0.52 = $143,000conversion = 275,000 x $0.88 = $242,000total = $385,000Explanation:
Beginning WIP 70,000 units
materials $56,100
conversion $16,400
Ending WIP 50,000 units
100% completed for materials (50,000 EU)
25% completed for conversion (12,500 EU)
units started 255,000
total units transferred out 275,000
materials cost added during the period = $112,900
conversion cost added during the period = $236,600
The marketing manager at a local chain supermarket is testing the effectiveness of four advertising strategies (Factor A) on sales, and runs the advertising over a two-week period. It is suspected that sales also differs by store locations because of differing customer traffic; therefore, the stores were blocked on location (Factor B). The manager wants to understand how sales depends upon advertising strategy and location using a two-way ANOVA without interaction. The sales (in $1000s), along with column, row, and overall means, are displayed below. How many degrees of freedom are there for factors A and B, respectively
Answer:
Option B (11) seems to be the correct response.
Explanation:
The given question is incomplete. Please find attachment of the complete query.
As we know, from the given output or outcome
i.e., N = 12
Factor A = 4
Factor B = 3
∴ [tex]4\times 3=12[/tex]
The total degree of freedom will be:
⇒ [tex]N-1[/tex]
⇒ [tex]12-1[/tex]
⇒ [tex]11[/tex]
All other suggestions made were never appropriate for the question issued. So, the right approach is "11."
Exercise 6A-1 High-Low Method [LO6-10] The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 1,736 $ 4,127 February 1,904 $ 4,207 March 2,356 $ 5,083 April 960 $ 2,857 May 360 $ 1,871 June 744 $ 2,696 July 2,108 $ 4,670 August 2,406 $ 5,148 September 840 $ 2,691 October 124 $ 1,588 November 720 $ 2,454 December 1,364 $ 3,529 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) 2. What other factors in addition to occupancy-days are likely to affect the variation in electrical costs from month to month
Answer:
1) variable cost = $1.56 per day
fixed costs = $1,395 per month
2) another aspect that increases or decreases electrical consumption is the weather. During very hot days, more people use the air conditioner, which increases electricity costs. Very cold weather will result in a similar increase in electric consumption.
Explanation:
Month Occupancy-Days Electrical Costs
January 1,736 $ 4,127
February 1,904 $ 4,207
March 2,356 $ 5,083
April 960 $ 2,857
May 360 $ 1,871
June 744 $ 2,696
July 2,108 $ 4,670
August 2,406 $ 5,148
September 840 $ 2,691
October 124 $ 1,588
November 720 $ 2,454
December 1,364 $ 3,529
variable cost = (highest activity cost - lowest activity cost) / (highest activity level - lowest activity level) = ($5,148 - $1,588) / (2,406 - 124) = $1.56 per day
fixed costs = $5,148 - ($1.56 x 2,406) = $1,395
Bill Buckely has split-limit 100/200/40 automobile liability insurance on his 2012 Subaru. Driving home from work in a snowstorm, he hit a Mercedes, slid into a guardrail, and knocked down a telephone pole. Damages to the Mercedes, the guardrail, and the telephone pole were $33,428, $7,422, and $12,041 respectively. How much will Bill's insurance company pay? How much will Bill be required to pay directly? Bill's insurance company will pay $nothing. (Round to the nearest dollar.) The amount Bill will be required to pay directly is $nothing. (Round to the nearest dollar.)
Answer:
Bill's insurance company will pay $40,000The amount Bill will be required to pay directly is $12,891Explanation:
A Split limit works thus;
The first figure which is 100 is the maximum amount that will be paid per one injured person.
The second figure is 200 and it is the maximum amount that will be paid out for all injured persons.
The third which is 40 is the maximum amount the insurance will pay out for property damage.
Bear in mind that all these figures are in thousands.
The damages to all the property involved is = 33,428 + 7,422 + 12,041
= $52,891
The Insurance company will therefore payout the maximum amount of $40,000.
The rest will be paid by Bill which is = 52,891 - 40,000
= $12,891
Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $25,500 and has a margin of 9%. Based on historical averages, 81% of people buying a new vehicle at Eastern will return for service 8 times over the next 5 years. Though it varies considerably, Eastern generates approximately $122 in margin on each service visit after accounting for parts and direct labor costs. What would be the value of a service loyalty program that increased the average number of visits by 2 (over 5 years) and increased the probability that a new vehicle purchaser would return for service by 5 percentage points (e.g. from 75% to 80%) on a per customer basis
Answer:
the average profit from selling a car = $25,500 x 9% = $2,295
the average profit from providing 1 service = $122
customer lifetime value = (Annual profit per customer x customer relationship in years) - customer acquisition cost
the current CLV = $2,295 + ($122 x 8 x 81%) = $3,085.56
if you are able to increase the probability of using the company's maintenance services by 5% (from 815 to 86%), then the new CLV = $2,295 + ($122 x 8 x 86%) = $3,134.36
the difference = $3,134.36 - $3,085.56 = $48.80
Theoretically, you can spend up to $48.80 in the service loyalty program. But this analysis is incomplete, since providing a good service should also increase the possibility of selling a new car to the same customer after 5 years. This should extend the customer relationship for many years. E.g. that has been a major factor in the success of Honda and Toyota.
2. Jack sold a baseball card collection for $2,500 that he bought a year ago for $2,500. He says, "At least I didn't lose any money on my investment in this baseball card." His economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $2,500, which is $75, if he had deposited the money in a bank. The economist's analysis in this case incorporates the idea of: A. opportunity costs among alternatives, which is $75 here. B. opportunity costs among alternatives, which is $2575 here. C. marginal costs that exceed marginal benefits. D. marginal benefits that exceed marginal costs.
Answer:
The economist's analysis in this case incorporates the idea of:
A. opportunity costs among alternatives, which is $75 here.
Explanation:
Jack's economist friend is right that Jack lost $75, which represents a 3% return on the $2,500 if Jack had invested it in a bank deposit instead of baseball card. The opportunity cost is, therefore, this potential benefit which Jack has missed or lost because of Jack's choice of investment.
Tammi’s Truck Stop sells Seat-o-Nails cushions, which are specially designed to keep drivers awake on the road. Her accessories supplier makes deliveries every Tuesday, at which times she can get as many cushions as she wants (the supplier’s truck carries a large number of cushions). The cushions cost $40 wholesale, and Tammi sells them for $65. She also uses a 35 percent interest rate to evaluate the cost of holding inventory. Today it is Tuesday, Tammi has 12 cushions in stock, and the supplier has just arrived. Assuming that the weekly demand is normally distributed with mean 35 and standard deviation 10, answer the questions below. (hint: use newsvendor model)How many cushions should Tammi buy if sales are lost when she runs out of stock during the week?Reconsider part (a) if unmet demand is not lost but it is back ordered, and it costs Tammi $12 to mail the cushion to the customer.
Answer:
Explanation:
(a) The cost of underage(Cu) will be the opportunity cost for lost sales which will be:
= 65 - 40
= 25
The cost of overage(Co) will be the holding cost which will be:
= 40 x 35%/52
= 40 × 0.35/52
= 40 × 0.0067308
= 0.269
The Critical ratio will be:
= Cu/(Cu + Co)
= 25/(0.269+25)
= 0.9894
For the optimal condition,
F(z) = Critical ratio = 0.9894,
therefore, z = normsinv (0.9894) = 2.30
Therefore, the optimal stock will be calculated as:
= Mean demand + (z × Stdev)
= 35 + (2.30 × 10)
= 35 + 23
= 58 units.
We should note that Tammi already has 12 cushions in stock, therefore the order quantity will be:
= 58 - 12
= 46 units
(b) Cu = 12
Co = 0.269
Critical ratio will be:
= Cu/(Co + Cu)
= 12 / (12 + 0.269)
= 0.9781
Therefore, z = normsinv(0.9781) = 2.0
Then, the optimal stock will be:
= 35 + (2.0 × 10)
= 35+20
= 55 units
We should note that Tammi already has 12 cushions in stock, therefore the order quantity will be:
= 55 - 12
= 43 units
Han and Leia Solo have been married for 24 years and have three children who qualify as their dependents (Jacen, 4; Jaina, 14; and Ben, 16). The couple received salary income of $354,600. They sold some stock they had owned for 4 years and had an $8,000 gain on the sale. They also received $3,000 of corporate bond interest and $6,400 of interest from Jabba City bonds. The Soloâs also cashed in a Certificate of Deposit early during the year and paid a $950 penalty on the early withdrawal. Additionally, Han (who teaches middle school) spent $875 on supplies and snacks for his classroom. The Solos accumulated $30,920 of itemized deductions and they had $31,550 withheld from their paychecks for federal income taxes.
a. gross income
b. deductions for AGI
c. adjusted gross income
d. standard deduction
e. itemized deductions
f. taxable income
g. tax liability
Required:
Use the table below to show what you did and did not include in Gross Income, Deductions and/or other items and your explanation. Feel free to add additional rows as necessary.
Item amount explanation
Other part of question attached
Answer and Explanation:
Answer and explanation attached
Condensed financial data are presented below for the Phoenix Corporation: 20X2 20X1 Accounts receivable $ 267,500 $ 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 695,000 Current liabilities 252,500 200,000 Long-term liabilities 77,500 75,000 Sales 1,640,000 Cost of goods sold 982,500 Interest expense 10,000 Income tax expense 77,500 Net income 127,500 Cash flow from operations 71,000 Cash flow from investing activities (6,000 ) Cash flow from financing activities (62,500 ) Tax rate 30 % The profit margin used to calculate return on assets for 20X2 is (rounded):
Answer:
7.77%
Explanation:
The profit margin is the quotient between net income and sales
Profit margin = Net income / Sales
Net income = $127,500
Sales = $1,640,000
Net profit margin = 7.77%
The above means that the firm achieves 7.77% net income from every dollar of sales.
Given the information on the Phoenix corporation, the profit margin used to calculate return on assets for 20X2 was 7.78%.
How to calculate returns on assetThe profit margin is calculated by dividing net income by sales.
From the condensed financial data, we know that net income for 20X2 was $127,500 and sales were $1,640,000.
Profit margin = Net income / Sales
= $127,500 / $1,640,000
= 0.0778
Multiply by 100 to express the result as a percentage
Profit margin = 7.78%
Therefore, the profit margin used to calculate return on assets for 20X2 was 7.78%.
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Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units in ending work in process inventory 2,160 960 Cost per equivalent unit $ 15.56 $ 5.53 A total of 20,600 units were completed and transferred to the next processing department during the period. Required: 1. Compute the cost of ending work in process inventory for materials, conversion, and in total. 2. Compute the cost of the units completed and transferred out for materials, conversion, and in total.
Answer:
(1) $33,696, $5,308.8, $39,004.8
(2) $321,360, $113,918, $435,278
Explanation:
(1) The cost of ending work in process inventory for materials, conversion and in total can be calculated as follows
Materials:
2160 × 15.6
= $33,696
Conversion:
960 × 5.53
= $5,308.8
Total:
$5,308.8 + $33,696
= $39,004.8
(2) The cost of units completed and transferred out for materials, conversion and total can be calculated as follows
Materials:
20,600 × 15.6
= $321,360
Conversion:
20,600 × 5.53
= $113,918
Total:
$20,600 × 21.13
= $435,278
A couple draw a plan of saving for their vacation in Europe. They save $200 at the end of each month for three years. If the cost of vacation is going to be ($9,384.44), and the interest rate is 11% compounded annually, would the couple have enough to cover their vacation at the end of the third year? 15. What must their annuity (A) be in order to make it to their vacation if the interest rate is 15% compounded semiannually. 16. What must their annuity (A) be in order to make it to their vacation if the interest rate is 13.75% compounded quarterly. 17. What must their annuity (A) be in order to make it to their vacation if the interest rate is 11.5% compounded monthly. 18. What must their annuity (A) be in order to make it to their vacation if the interest rate is 8.25% compounded weekly.
Answer:
Results are below.
Explanation:
Giving the following information:
Monthly saving= $200
Future value= $9,384.44
Number of years= 3
a) To calculate the Future Value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,400*[(1.11^3) - 1]} / 0.11
FV= $8,021.04
b) To calculate the semiannual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= semiannual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
i= 0.15/2= 0.075
n= 3*2= 6
A= (9,384.44*0.075) / [(1.075^6) - 1]
A= $1,295.47
c) i= 0.1375/4= 0.0344
n= 3*4= 12
A= (FV*i)/{[(1+i)^n]-1}
A= quarterly deposit
A= (9,384.44*0.0344) / [(1.0344^12) - 1]
A= $644.89
d) i= 0.115/12= 0.0096
n= 3*12= 36
A= (FV*i)/{[(1+i)^n]-1}
A= monthly deposit
A= (9,384.44*0.0096) / [(1.0096^36) - 1]
A= $219.46
e) i=0.0825/52= 0.0016
n= 3*52= 156
A= (FV*i)/{[(1+i)^n]-1}
A= weekly deposit
A= (9,384.44*0.0016) / [(1.0016^156) - 1]
A= $53.01
In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket.Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. (Ignore the deduction for qualified business income and the 3.8% Medicare surtax on net investment income.)The rates on qualified dividends are 0%, 15% and 20%.If an amount is zero, enter "0".
Answer:
the question is incomplete:
a. Azure is a C corporation and pays no dividends or salary to Sasha.
Azure Company, as a C corporation, has taxable income of $350,000 and corporate income tax of $73,500 (21% of net income). Sasha has taxable income of $0 from Azure.
b. Azure is a C corporation and distributes $75,000 of dividends to Sasha.
Azure Company has taxable income of $350,000 and corporate income tax of $73,500 (21% of net income). Sasha incurs income tax of $15,000 (20% tax rate) with respect to the dividends.
c. Azure is a C corporation and pays $75,000 of salary to Sasha. (Ignore payroll taxes.)
The salary paid to Sasha is deductible by Azure Company resulting in taxable income of $275,000 and corporate income tax of $57,750 (21% of net income). Sasha incurs income tax of $27,750 (37% marginal tax rate) with respect to the salary she received during the year.
d. Azure is a sole proprietorship, and Sasha withdraws $0. (Ignore self-employment taxes.)
There is no Federal income tax applicable to businesses formed as sole proprietorships. Sasha incurs income tax of $129,500 (37% of $350,000) with respect to Azure Company.
e. Azure is a sole proprietorship, and Sasha withdraws $75,000. (Ignore self-employment taxes.)
There is no Federal income tax applicable to businesses formed as sole proprietorships. Sasha will pay tax on the income of Azure Company, regardless of the amount she withdraws. Applicable taxes are the same a in (d).
You have just taken over your family’s printing business. It is important to you that the business has a positive impact on your employees and society in general, while limiting any negative impacts. For each example below, identify the impact on society.
1. Increase employment
2. Offer valuable products
3. Environment damage
4. Improve the quality of life
5. Health and safety risks
a. Some of your printing processes utilize chemicals that require press operators to wear masks during production. _____________
b. Because of increased profits in the last 5 years, you have been able to increase staffing levels by 25%. _____________
c. The business is a member of the local Chamber of Commerce and supports local community charities. _____________
d. The business is the only one in town to offer 48-hour turnaround on printing projects. __________
e. The business uses ink that is shipped in bulky, non-recyclable ink containers. ____________
Answer:
a. Some of your printing processes utilize chemicals that require press operators to wear masks during production. Health and safety risks.
Those chemicals present a health and safety risk because a person can get sick if they do not wear the masks.
b. Because of increased profits in the last 5 years, you have been able to increase staffing levels by 25%. Increase employment.
c. The business is a member of the local Chamber of Commerce and supports local community charities. Improve the quality of life
The business supports local charities which shows that it aims to improve the quality of life.
d. The business is the only one in town to offer 48-hour turnaround on printing projects. Offer valuable products
The business is the only one offering this service so it is offering valuable services.
e. The business uses ink that is shipped in bulky, non-recyclable ink containers. Environment damage
Ink is bulky and containers are non-recyclable. This will cause environmental damage.
How do consumer expectations affect the demand for a product?
——————————————-
A. By connecting demand for a good to the availability of
complementary goods
B. By increasing the demand for goods expected to become more
expensive later
C. By reducing the supply of a good as demand for the good
increases over time
D. By lowering the good's equilibrium price to better reflect growing
consumer demand
Answer:
B. By increasing the demand for goods expected to become more expensive later
Explanation:
A product's price increase results in both an increase in demand for alternatives to the product and a drop in demand for complementary goods.
What impact do consumer expectations have on a product's demand?Consumer expectations cause people to demand either more or less of a good.
Consumer expectations include things like future pricing, income, and product availability.Demand will increase if expectations rise, and vice versa.The immediate demand will decline if a consumer knows a product will be on sale in a week since they will purchase it then. Consumer demand will grow right away if they anticipate a product's price to rise in the coming week.Learn more about consumer expectations affect the demand for a product here https://brainly.com/question/17910824
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Which of the following statements is true concerning clusters? According to Porter, clusters provide barriers to the access of employees, suppliers, and specialized information. Employees from competitive firms in a cluster are not permitted to socialize with one another. Clusters are geographically dispersed companies operating within the same industry. The United States does not have any clusters; they are all located in Europe. The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors.
Answer: The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors.
Explanation:
A cluster is the concentration of industries, businesses, or suppliers, that are interrelated in a particular field.
According to Porter, clusters bring about increase the productivity, stimulate new business, drives innovation and they're vital to strategic management.
Of the options given, the answer is "The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors".