BUSINESS COLLEGE

The cost of replacing part of a cell phone videochip production line in 6 years is estimated to be $500,000. At an interest rate of 14% per year, compounded semiannually, the uniform amount that must be deposited into a sinking fund every 6 months is closest to: ( a ) $21,335 ( b ) $24,825 ( c ) $27,950 ( d ) $97,995

Answers

Answer 1

Answer:

Answer:

( c ) $27,950

Explanation:

The computation of the uniform amount that should be deposited is shown below:

= Accumulated sum of amount × (A/F, 14% ÷ 2, 2 × 6)

= $500,000 × (A/F, 7%, 12)

= $500,000 × 0.0559

= $27,950

hence, the amount that should be deposited is $27,950

Hence, the correct option is c. $27,950

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in the next period. Management also predicts that the contribution margin per unit will be $63. (1) Compute the total expected dollar sales for next period. Contribution margin Pretax income (2) Compute the number of units expected to be sold next period. Choose Numerator: / Choose Denominator: = Units / = Units

The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20% at the beginning of the year. Her current prices are competitive with nearby restaurants of similar quality. However, she is now considering raising her prices by 20 percent to offset the increase in her monthly rent. Would you recommend that she raise prices?

Answers

Answer:

Explanation:

In a competitive market, price should be a function of variable/marginal costs not fixed costs.

5) If in the market for apples the supply has decreased, then A) the supply curve for apples has shifted to the right. B) there has been a movement upwards along the supply curve for apples. C) the supply curve for apples has shifted to the left. D) there has been a movement downwards along the supply curve for apples.

Answers

Answer:

The correct answer is letter "C": the supply curve for apples has shifted to the left.

Explanation:

The supply curve plots in a graph the relationship between the price and quantity supplied of a good or service. According to the supply law, that relationship is directly proportional meaning if the price rises the quantity demanded increases -the supply curve moves to the right- but if the prices fall the quantity demanded drops -the supply curve moves to the left.

During the first year of operation, 2018, McGinnis Appliance recognized $340,000 of service revenue on account. At the end of 2018, the accounts receivable balance was $66,836. Even though this is his first year in business, the owner believes he will collect all but about 5 percent of the ending balance. Required What amount of cash was collected by McGinnis during 2018

Answers

Answer:

$273,164

Explanation:

Data given in the question

Recognized amount of service revenue = $340,000

And, the account receivable balance is $66,836

So, by considering the above information, the amount of cash collected is

= Recognized amount of service revenue - the account receivable balance

= $340,000 - $66,836

= $273,164

By deducting the account receivable balance from the service revenue recognized amount we can get the cash collected amount

Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Probability Stock's State of of State Expected the Economy Occurring Return Boom 0.45 25% Normal 0.5 15% Recession 0.05 5% 0.2839 0.3069 0.3299 0.3547 0.3813

Answers

Answer: 0.3069

Explanation:

Probability ofReturn Deviation Squared State Prob. This state This state from Mean Deviation × Sq. Dev. 0.45 25.00% 6.00% 0.36% 0.1620% 0.50 15.00% -4.00% 0.16% 0.0800% 0.05 5 .00% -14.00% 1 .96% 0 .0980% Expected return = 19 .00% 0 .34% 0 .3400% = Expected variance σ = 5.83% Coefficient of variation = σ/Expected return = 0.3069

Final answer:

To find the coefficient of variation on a company's stock, calculate the expected return, then the variance of the returns. Divide the standard deviation (square root of the variance) by the expected return. This gives a measure of risk per unit of return.

Explanation:

The coefficient of variation is used as a measure of relative variability. In this case, you would first calculate the expected return (E(R)), which is the sum of the each state's return times its probability. E(R) = (0.45 * 25%) + (0.5 * 15%) + (0.05 * 5%) = 16.75%. Secondly, you would calculate the variance of the returns which is the sum of the square of the difference of each state's return from the expected return times its probability. Lastly, the coefficient of variation is the standard deviation (the square root of the variance) divided by the expected return. This gives you a measure of risk per unit of return - hence the term 'relative variability'.

Investors in the stock market often use measures such as the coefficient of variation to give them an idea of the risk associated with different stocks. Though it's important to remember, as with any mathematical model, this is just a theoretical approximation, it doesn't account for external factors that could potentially affect the stock's performance.

Learn more about Coefficient of Variation here:

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"Every individual necessarily labors to render the annual revenue of the society as great as he can. He generally indeed neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good." – Adam Smith what this quote means

Answers

Answer:

This quote highlights Adam Smith - Self Interest, Free Reign, Invisible Hand theories

Explanation:

Adam Smith is the Father of Economics.

His self interest theory states that : Individuals working for the best of self interest implies maximum welfare for society as a whole.

Hence, the free reign idea suggests that people as 'self interest' guided rational economic agents should be left free. The invisible hand of market restores any distortions.

Government intervention is considered to be not only unnecessary, but distortionary.

Suppose the economy is initially in long-run equilibrium. Then suppose there is an increase in military spending. According to the model of aggregate demand and aggregate supply, what happens to prices and employment in the short run

Answers

Answer:

prices rise, employment rises.

Explanation:

In the starting equilibrium price, there would be more demand that result in fall in the firm inventory. Now in order to maintain the level of the inventory the firm would have to rise the production for this the firm should hire more wokers due to this the employment would rise also the wages are more paid as compared to before so it increase the production cost that results in rise in price

Therefore the above represent the answer

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