Businesses exist in an environment shaped by: a. investors. b. GATT. c. culture. d. neighboring territories.

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Answer 1

Answer:

Answer: a. Investors

In a enviroment where there are investors, there will always be the possibility of companies arising because investors want to grow their profits and they do it through participations bought in companies, they also invest in loans made in companies and this propitiates the figure of the investor that means a person or an entity that places a value that belongs to him, to finance or to acquire a good.

For example, an investment fund acquires a company to grow it and then sell it at a higher price. This is a typical transaction of an investment fund and encourages the creation of new companies or their expansion.

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Gelb Company currently manufactures 51,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit. Calculate the total incremental cost of making 51,500 units and buying 51,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?

Answers

Answer:

$343,725; $200,850

Explanation:

(a) The total incremental cost of making 51,500 units is calculated as below:

Total Relevant Costs:

= Variable Cost Per Unit + Fixed Manufacturing Costs

= (Relevant Amount Per Unit × No. of units) + Fixed Manufacturing Costs

= ($5.15 × 51,500) + $78,500

= $265,225 + $78,500

= $343,725

Therefore, the total incremental cost of making 51,500 units is $343,725.

(b) The total incremental cost of buying 51,500 units is determined as below:

Total Relevant Costs = Purchase Price Per Unit × No. of units

= $3.90 × 51,500

= $200,850

Therefore, the total incremental cost of buying 51,500 units is $200,850.

(c) The company should buy the component from outside supplier as it results in a lower total incremental cost of $200,850.

Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Please show your work.

Answers

Answer:

Unitary elastic

Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%

Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%

Elasticity of demand = 40% / 40% = 1

If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.

I hope my answer helps you

Final answer:

The price elasticity of demand is calculated to be 1, indicating unitary elasticity. This means a percentage change in price leads to an equal percentage change in quantity demanded, which implies widgets have a proportional responsiveness to price changes.

Explanation:

The price elasticity of demand for widgets can be calculated using the formula: PED = (% Change in Quantity Demanded) / (% Change in Price)

To determine the percentage change in quantity demanded, subtract the new quantity (15 widgets) from the original quantity (25 widgets), divide by the original quantity, and multiply by 100. The calculation is: [(15 - 25) / 25] * 100 = -40%

The percentage change in price is calculated as: [(7 - 5) / 5] * 100 = 40%

Substituting these values into the formula gives: PED = (-40%) / (40%) = -1. Because we usually report price elasticity of demand as absolute values, we interpret it as 1 in absolute value terms.

Since the price elasticity of demand is 1, it indicates a unitary elasticity. This implies that a 1% change in price induces a proportionate 1% change in quantity demanded. So, as price increased, customers decreased their purchase of widgets proportionately.

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Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank - be sure to enter "0" wherever required.)Required:

What is her after-tax rate of return for the City of Heflin bond?
How much explicit tax does Melinda pay on the City of Heflin bond?
How much implicit tax does she pay on the City of Heflin bond?
How much explicit tax would she have paid on the Surething Inc. bond?
What is her after-tax rate of return on the Surething Inc. bond?

Answers

Answer:

What is her after-tax rate of return for the City of Heflin bond?

Melinda's after tax rate of return for the City of Heflin bonds = $200,000 x 6% = $12,000. Interest revenue from city bonds is not taxed.

How much explicit tax does Melinda pay on the City of Heflin bond?

How much implicit tax does she pay on the City of Heflin bond?

$4,000. The tax difference between the yields of the city bond vs Surething bond.

How much explicit tax would she have paid on the Surething Inc. bond?

($200,000 x 8%) x 25% = $4,000

What is her after-tax rate of return on the Surething Inc. bond?

($16,000 - $4,000) / $200,000 = $12,000 / $200,000 = 6%

All of the following are parts of business models employed in the online music industry except: Question 2 options: A) peer-to-peer streaming. B) cloud streaming. C) download-and-own. D) subscription.

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Answer: A) peer-to-peer streaming

Explanation: Peer-to-Peer streaming is one of the most popular media applications over the internet in recent times and it is a part of business models employed in the online music industry. These systems reduce the load on the server and provide a scalable content distribution and as such, partitions tasks or workloads between peers (equally privileged, participants who make a portion of their resources directly available to other network participants, without the need for central coordination by servers or stable hosts).

Final answer:

All options are parts of business models in the online music industry except for 'peer-to-peer streaming', which is a method of data transfer, not a business model itself.

Explanation:

All named options are indeed part of business models in the online music industry except for 'peer-to-peer streaming'. Let's examine each choice:

Peer-to-peer streaming: This is not a business model, but a method of data transfer. In the context of music, it refers to sharing files directly between users without a central server, and it does not inherently involve monetary transactions or business operations.
Cloud streaming: This refers to a service where users can stream music from the cloud. These services often work on a subscription basis, similar to SiriusXM.
Download-and-own: In this model, customers pay a one-time fee to download and own a digital copy of a song or album. Once purchased, customers can listen to the music offline and keep it permanently.
Subscription: This is a common model in the online music industry. Services like Spotify, Apple Music and SiriusXM operate on a subscription basis where customers pay a regular fee for unlimited access to music libraries.

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Most voluntary changes in accounting principles are reported retrospectively. This means for each year reported in the comparative statements, we make those statements appear as if the newly adopted accounting method had been applied all along. A journal entry is created to adjust all account balances affected as of the date of the change. In the first set of financial statements after the change, a disclosure note describes the change and justifies the new method as preferable. It also describes the effects of the change on all items affected, including the fact that the retained earnings balance was revised in the statement of shareholders’ equity.Melas Company changed from the LIFO to the FIFO inventory costing method on January 1, Year 3. Inventory values at the end of each year since the inception of the company are as follows:

FIFO LIFO
Year 1 $195,000 $177,500
Year 2 $390,000 $355,000

Ignoring income tax considerations, prepare the appropriate journal entry, dated January 1, Year 3, to report this accounting change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Answer:

Explanation: times all the number together

Nancy is considering whether her toy manufacturing business should develop its own brand. Which is a company reward Nancy can expect from branding?

Answers

Answer: a. Brands enhance loyalty.

Explanation:

Brands enhance loyalty because people are more likely to identify with a symbol than with something that has a general identity. When a company has a brand therefore, it will enhance the loyalty of its consumers as they look to identify with that brand.

Take Adidas for instance, the three stripes logo is so iconic that people can sometimes have entire wardrobes of Adidas apparel to show those three stripes off and show that they identify with it. This is the benefit that Nancy stands to gain with branding.

Other Questions

Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.

On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $21,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,560 of federal income taxes, $1,420 of medical insurance deductions, and $940 of union dues. No employee earned more than $7,000 in this first period.Calculate below the amounts for each of these four taxes of Regis Company. Regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%. (Round your answers to 2 decimal places.) FICA - Social Security FICA -Medicare FUTA SUTA Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.) Prepare the journal entry to record Regis’s (employer) payroll taxes resulting from the January 8 payroll. Regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%.

Back Bay Company is a price−taker and uses target pricing. Refer to the following information:Production volume602,000units per yearMarket price$34per unitDesired operating income17%of total assetsTotal assets$13,800,000What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.

Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs.Assume that Minneapolis’ sales by major market are:MarketMinneapolis Medical DentalSales $ 330,000 100 % $ 220,000 100 % $ 110,000 100 %Variable expenses 198,000 60 % 143,000 65 % 55,000 50 %Contribution margin 132,000 40 % 77,000 35 % 55,000 50 %Traceable fixed expenses 39,600 12 % 11,000 5 % 28,600 26 %Market segment margin 92,400 28 % $ 66,000 30 % $ 26,400 24 %Common fixed expensesnot traceable to markets 9,900 3 % Office segment margin $ 82,500 25 % The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $38,500 or increase sales in the Dental market by $33,000.Required:Calculate the increased segment margin.for Medical:Calculate the increased segment margin for Dental: