BUSINESS COLLEGE

A labor contract provides for a first-year wage of $10 per hour, and specifies that the real wage will rise by 3 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.07 in the second year. What dollar wage must be paid in the second year?

Answers

Answer 1
Answer:

Answer:

The wage per hour must be paid in the second year is $11.021 per hour.

Explanation:

Please find the below for detailed explanations and calculations:

We have the real wage stipulated in the contract must be grown at 3% in second year in comparison to first year.

Thus, the nominal pay rise must grow at the higher rate than 3%, in the way that it may cover the effect from inflation to ensure real rise is 3% as agreed in the labor contract.

As a result: Nominal increase (%) = (1+ real increase rate) x CPI of second year in comparison to first year - 1 = (1+3%) x 1.07 -1 = 10.21%.

=> Wage per hour must be paid in the second year = Wage per hour in first year x ( 1 + Nominal increase) = 10 x (1 + 0.1021) = $11.021.

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5. Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots. a. What additional annual cost is the shop incurring by staying with this order size

Answers

If Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots:

  • a. What additional annual cost is the shop incurring by staying with this order size will be: $105.24
  • b. What benefit would using the optimal order quantity yield will be 51.63%

a. Additional annual cost

Annual demand (D) =$750 x 12= $9,000

Ordering cost=$20 per order

Annual carrying costs(H)=0.30 ×$2.00 = $0.60

Order Quantity(Q) = 1,500

Find TC for Q

TC=Q÷2×H + D÷Q × S

TC=1,500÷2 × $0.60 + $9,000÷1,500×$20

TC=$450+$120

TC=$570............. (1)

Now find Qo

Qo=√2DS÷H

Qo=√2×$9,000×$20÷0.60

Qo=√600,000

Qo=$774.596

Qo=$774.60 (Approximately)

Find TC for Qo

TC=Q÷2×H + D÷Q ×

TC=774.60÷2 × $0.60 + $9,000÷774.60×$20

TC=$232.38+$232.38

TC=$464.76................(2)

Now let determine the additional annual cost

Additional annual cost=$570-$464.56

Additional annual cost=$105.24

b. Benefit would using the optimal order quantity yield (relative to the order size of 1,500)

Benefit=Qo÷Q

Benefit=$774.60÷1,500×100

Benefit=51.63%

The benefit is that about 51.63% of the storage space would be needed.

Learn more here:

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Answer:

Additional cost= $570

Explanation:

Monthly demand = 750

Annual demand (D) = Monthly Demand x Number of months in a year

Annual demand (D) = 750 x 12 = 9,000

Cost (C) = $2.00 each

Annual carrying costs (Cc) = 30 percent of cost

Annual carrying costs (Cc) = 30% of $2.00 = $0.60

Ordering costs (Co) = $20

Current order quantity (Q1) = 1,500

Solution:

(a) Current cost is calculated as,

Current cost = Annual carrying costs + Annual ordering costs

Current cost = [(Quantity / 2) x Carrying cost] + [(Annual demand / Current Quantity) x Ordering cost]

Current cost = [(1500 / 2) x $0.60] + [(9000 / 1500) x $20]

Current cost = $450 + $120

Current cost = $570

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Answers

Answer:

The budgeted accounts receivable balance at the end of February is closest to: $4,500.

Explanation:

Prepare a Accounts Receivable Budget for January and February

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Cash Received (60%)                $0               ($4,200)

Balance c/d                           $4,200             $4,500

Conclusion:

Therefore, the budgeted accounts receivable balance at the end of February is closest to: $4,500

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Answers

Answer:

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Explanation:

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Answers

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Answers

Answer:

D. total assets to common​ stockholders' equity

Explanation:

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Answers

Answer:

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Explanation:

Assets (A) and Expenses (E) will icnrease form debit and decrease from credit

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