Answer: $6000
Explanation:
If holding is $10000,
Reduction in cash holding = (10000-10000) = 0
Interest earned in government bonds=(Reduction in holdings) × 0.03 =0
Cost of deposits = 0
Additional benefit = (interest earned - cost of deposit)
Additional benefit = 0-0 = 0
Making a mid day deposit;
Reduction in cash holding = (10000-8000) = $2000
Interest earned in government bonds = Reduction in holdings × 0.03
= 2000 × 0.03 =$60
Cost of deposits=$80
Additional benefit=$60-80=-$20
Using a armored car service;
Reduction in cash holding=(10000-6000)=4000
Interest earned in government bonds= 4000 × 0.03 = $120
Cost of deposits=$120
Additional benefit=120 - 120= $0
Using computerized cash management service;
Reduction in cash holding=(10000-4000)=6000
Interest earned in government bonds;
6000 × 0.03 = $180
Cost of deposits=$180
Additional benefit=180 - 180=$0
Additional benefit is maximized in case of both computerized management service and armor vehicle . So, Optimal cash holding is $6000
Given Information:
Rent = $20,000,000
Materials and Wages = $10,000/tractor
Number of tractors = 2,000
Amount spent on R&D = $3 million
Required Information:
Lowest price to sell atractor= ?
Answer:
Lowest price to sell atractor= at least $20,000
Calculations & Explanation:
The company needs to sell at least at a price that all of its manufacturing cost can be recovered without the profit margin.
This happens at a break-even point where total revenue equals the total manufacturing cost.
Total manufacturing cost = Total revenue
The revenue is number of tractors multiplied by some price x
Total revenue = 2,000*x
Total manufacturing cost = fixed cost + Variable cost
Total manufacturing cost = 20,000,000 + 2,000(10,000)
Total manufacturing cost = 20,000,000 + 20,000,000
Total manufacturing cost = 40,000,000
so,
Total manufacturing cost = Total revenue
40,000,000 = 2,000*x
x = 40,000,000/2,000
x = $20,000
Therefore, the lowest price to sell each tractor should be atleast $20,000
Note: The R&D cost is not usually included in such scenarios because R&D cost is sunk and should not be added in these calculations.
Answer: George's initial price markup over marginal cost was approximately 41.2% George's desired markup is 45% Since George's initial markup, or actual margin, was Less than his desired margin, raising the price was profitable
Explanation:
a) Price Elasticity of Demand = [(Q1-Q2)/(Q1+Q2)] / [(P1-P2)/(P1+P2)]
= 5000- 4000/4000+ 5000) / 8.50- 9.50 /8.50 ₊9.50 =
1000/8000 / -1/ 18 = 0.125/-0.055 = -2.2
George's initial price markup over marginal cost was approximately
when Marginal cost = $5
b)initial price markup = Price - marginal cost / price = 8.50 - 5.00/ 8.50 = 0.412= 41.2%
C) George's desired margin = 1/absolute value of price elasticity = 1/ 2.2= 0.45= 45%
.
D)Since George's initial markup or actual margin was less than his desired margin, raising the price is profitable.
This is because When the markup is lower than the margin, business is running on a loss, so it is nessesary to increase price.
The price elasticity of demand for George's T-shirts is approximately -1.7, indicating that demand is elastic. The initial markup over the cost price was 70%, but the question doesn't specify the desired markup or if raising the price satisfied that margin.
The price elasticity of demand measures how sensitive the quantity demanded is to a price change. It's calculated as the percentage change in quantity demanded divided by the percentage change in price. In George's case:
So, the percentage change in quantity = (4000-5000)/5000 = -20% and percentage change in price = ($9.50-$8.50)/$8.50 = 11.76%. Therefore, price elasticity of demand = -20%/11.76% = -1.7 (approx.). This indicates that the demand is elastic, meaning quantity demanded is sensitive to price changes.
Regarding the price markup, this is the percentage increase over the cost price. The initial markup = ($8.50-$5)/$5 = 70%. The question didn't specify the desired markup, or if raising the price satisfied the desired margin.
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Answer:
The price of the stock today is $80.00
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate is calculated by the constant growth model of the DDM. The price of a stock under DDM is based on the present value of the expected future dividends that the stock will pay. The formula for price under this model is,
P0 = D1 / r - g
Where,
P0 = 1.6 / (0.05 - 0.03)
P0 = $80.00
The fixed overhead cost spending variance is $5,000 unfavorable. Thus the correct option is 1.
Costs known as fixed overheads are expenses that don't vary based on variations in the volume of business activity each month. These expenses are necessary in order to run a business.
The calculation for fixed overhead is
Fixed overhead rate= Budgeted overhead cost/ Budgeted volume
= 200,000/40,000
= 5 per unit of output
The Fixed overhead absorption rate is 5 per unit of output.
Calculation for fixed overhead cost spending variance
= (Actual output- budgeted output) * Fixed overhead absorption rate
=(39,000-40,000)* $5
=$5,000 unfavorable
Hence, the fixed overhead cost spending variance is $5,000 unfavorableTherefore, option 1 is appropriate.
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Answer:
$8,000
Explanation:
this is the answer hopefully....
Answer:
The correct answer is letter "A": PCN.
Explanation:
In international staffing, a Parent Country National (PCN) is an employee that is hired to work in the same country from where the employee is resident and where the company has its headquarters. Usually, firms hire PCNs when foreign cultures are distant.
Answer:
$800
Explanation:
The computation of the remaining balance in the Prepaid Rent account after the adjustment was is shown below:-
Remaining balance = Prepaid rent - Rent expense
= $1,200 - ($1,200 × (1 ÷ 3))
= $1,200 - $400
= $800
Therefore for computing the remaining balance in the Prepaid Rent account we simply applied the above formula.
Sterling Company should debit Rent Expense and credit Prepaid Rent by $400 for April. The remaining balance in the Prepaid Rent account after the adjustment would be $800.
Sterling Company has prepaid its rent for 3 months, which means that $1,200 is paid for the months of April, May, and June. To calculate the monthly rent, divide the total by the number of months, so each month costs $1,200 / 3 = $400. Therefore, at the end of April, Sterling Company should debit Rent Expense and credit Prepaid Rent by $400 to account for the rent that expired during April. After this transaction, the balance in the Prepaid Rent account would be $1,200 - $400 = $800, which is the prepaid rent for May and June that is not used yet. The adjusting entry records the expiration of prepaid expenses and increases the accuracy of the financial statements.
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