Answer:
Option (c) is correct.
Explanation:
Given that,
Beginning inventory = $90,000;
Ending inventory = $70,000;
Cost of goods sold = $968,000
Sales = $1,360,000
Average inventor:
= (Beginning inventory + Ending inventory) ÷ 2
= ($90,000 + $70,000) ÷ 2
= $160,000 ÷ 2
= $80,000
Inventory turnover is the ratio of cost of goods sold and average inventory.
Paul’s inventory turnover in 2020:
= Cost of goods sold ÷ Average Inventory
= $968,000 ÷ $80,000
= 12.1 times
Days in inventory:
= 365 days ÷ Inventory turnover ratio
= 365 days ÷ 12.1
= 30.16 or 30.2 days
Answer:
As a result of the technology change, the price of pollution will be same as price of pollution with pollution permits.
The quantity of pollution with corrective tax will be lower than quantity of pollution with pollution permits.
Explanation:
The pollution permits are issued to reduce pollution by firms. The companies will reduce the pollution and will only be able to emit pollution up to certain limit. The price of pollution with corrective tax will be same as the price of pollution with pollution permits.
The change in technology will effect an increase in the price of pollution due to the increased cost of production factoring in the social cost of pollution, hence shifting the supply curve upward. The quantity of pollution will decrease as firms adopt cheaper technologies for pollution reduction influenced by the corrective tax policy and pollution permits.
The subject of your question is concerned with corrective tax policy and pollution permits in the context of a market economy under the influence of advances in technology. Under the original conditions before the social costs of pollution are taken into account, the equilibrium was met at a pollution price of $15 with a quantity of 440. However, once the external cost of pollution has been factored in, the supply curve shifts upward, creating a new equilibrium at a price of $30 and a quantity of 410, indicating an increase in the cost of pollution and a decrease in its quantity.
These policy instruments (corrective tax and pollution permits) induce companies to invest in technologies that reduce pollution higher costs of pollution as a result of the corrective tax motivate firms to seek cheaper technologies for pollution reduction. Those with less costly ways of lessening pollution will do so to reduce their tax expense, while those who would incur large costs in doing so would opt to pay the tax. The option of pollution permits introduces a marketplace where firms can purchase the right to pollute, the cost of which is again a motivator for firms to reduce pollution. Consequently, the demand for pollution permits among firms will influence their pricing. Firms that can reduce pollution at lower costs will do so the most. With no change in demand for pollution permits or corrective tax policies, the price of pollution will change as a result of the conditions set by these policies, and the quantity will change according to the adoption of more efficient technology.
#SPJ11
For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by listing the number and a "D" for direct or an "I" for indirect. For example: 1D, 2D, etc.
a. The wages of pediatric nurses / The pediatric department
b. Prescription drugs / A particular patient
c. Heating the hospital / The pediatric patient
d. The salary of the head of pediatrics / The pediatric patient
e. The salary of the head of pediatrics / The particular pediatric patient
f. Hospital chaplain's salary / A particular patient
g. Lab tests by outside contractor / A particular patient
h. Lab tests by outside contractor / A particular department
Answer:
Northwest Hospital
aD
bD
cI
dI
eI
fI
gD
hD
Explanation:
Direct costs are costs that are directly traceable to the production of goods and services and can be identified with a unit of production. While direct costs are usually variable, some direct costs can be fixed.
Indirect costs are costs that support the operation of the company. They cannot be traced to any unit of production. Similarly, some indirect costs are variable while others are fixed.
Answer:
The correct option is B. $1,012,303
Explanation:
For computing the net amount, the following calculations are need to be done which is shown below:
1. Calculation the total value of bond which equals to
= Issue amount × price
= $1,042,000 × (97 ÷ 100)
= $1,010,740
2. Now compute the discount which shown below:
= Issue amount - total value
= $1,042,000 - $1,010,740
= $31,260
3. Then, compute the semiannual discount amount by applying the straight line method
= Discount value ÷ number of years
where,
number of year would be multiply by 2 = 2 × 10 = 20 years
So, the value would be equal to
= $31,260 ÷ 20 years
= $1,563
4. So, the net amount would be
= Total value of bond + semiannual discount
= $1,010,740 + $1,563
= $1,012,303
Hence, the net amount will be reported for the bonds on the August 31, 2019 balance sheet is $1,012,303
Therefore, the correct option is B. $1,012,303
Answer:
Kodak is using ambush marketing and guerrilla marketing.
Explanation:
Ambush marketing is where a business tries to associate itself with an event that is officially sponsored by a rival business. The beach volleyball tournament has Fuji film as its official sponsor. However, a direct competitor, Kodak, begins marketing its products outside the venue, thus benefiting from the event even though Fuji film paid a huge amount in its sponsorship. This is a classic example of ambush marketing.
Guerrilla marketing involves the use of unconventional or unusual methods to promote a product. Kodak adopts this technique by having its employees paint their entire bodies yellow to draw attention. Moreover, Kodak offers rewards to people for taking the goofiest pictures, again employing an unconventional technique to promote Kodak cameras.
Kodak used guerilla marketing and viral marketing techniques to promote their products outside the Fuji film-sponsored beach volleyball tournament.
The two marketing techniques used by Kodak in this scenario are guerilla marketing and viral marketing. Guerilla marketing involves using unconventional and creative strategies to promote a brand or product in unexpected ways, often targeting specific locations or events. In this case, Kodak painted their bodies yellow and offered people the chance to win a free Kodak camera by taking goofy pictures, which caught people's attention and created a buzz.
Viral marketing, on the other hand, relies on creating content that spreads rapidly and organically through online platforms and social media. By offering people the opportunity to take funny pictures and potentially win a prize, Kodak encouraged people to share their experiences on social media, generating buzz and increasing brand awareness.
#SPJ3
Answer:
The company must sell 34706 units
Explanation:
To calculate the units required to earn a target profit of $1000000 next year, we will use the break even analysis modified for target profit calculation.
The break even in units is calculated by dividing the Total fixed costs by the contribution margin per unit. To calculate the units required for target profit, we add the target profit amount to the fixed cost and divide it by the contribution margin per unit. Thus, the formula is,
Units required for target profit = (Total fixed cost + target profit) / Contribution margin per unit
Where contribution margin per unit = Selling price per unit - Variable cost per unit
New fixed costs = 700000 + 700000 * 0.1 = 770000
New variable cost = 45 - 3 = 42
New contribution margin per unit = 93 - 42 = $51
Units required for target profit = (770000 + 1000000) / 51
Units required for target profit = 34705.88 rounded off to 34706 units
Answer:
1. Which firm has a greater FCF (free cash flow)?
2. What is firm A’s (annual) tax shield?
3. What is firm B’s (annual) tax shield?
Explanation:
since firm A's debt is $20, its value is $100, then its equity = $80
since firm B's debt is $80, its value is $100, then its equity = $20
Firm A's cash flow = (EBIT - interest expense) x (1 - tax rate) = [$10 - ($20 x 10%)] x 0.6 = $4.80
Firm B's cash flow = (EBIT - interest expense) x (1 - tax rate) = [$10 - ($80 x 10%)] x 0.6 = $1.20
Firm A's annual tax shield = taxable interest x tax rate = ($20 x 10%) x 40% = $0.80
Firm B's annual tax shield = taxable interest x tax rate = ($80 x 10%) x 40% = $3.20
Firm B has a greater FCF compared to Firm A. Firm A has a tax shield of $0, and Firm B has a tax shield of $3.2.
1. Firm B has a greater Free Cash Flow (FCF) compared to Firm A. FCF is calculated as EBIT(1-TC) + TC(D-RD), and in this case, Firm B has a higher outstanding debt which leads to a higher tax shield, resulting in a greater FCF for Firm B.
2. Firm A's annual tax shield can be calculated by subtracting the debt payments from the earnings before interest and taxes (EBIT) and then multiplying the result by the tax rate. In this case, the annual tax shield for Firm A is $0, as the interest expense is greater than the taxable income.
3. Firm B's annual tax shield can be calculated in the same way as Firm A's. In this case, the annual tax shield for Firm B is $3.2. This is because the debt payments are lower than the taxable income and result in a tax shield.
#SPJ3