Answer:
b) $600,000
Explanation:
The break-even sales can be regarded as sales value in which the result makes the firm to report zero profit.
Total fixed costs was given from the question as ( $180,000)
The Contribution margin ratio was give from the question as ( 30%)= 0.3
✓break even point can be calculated as ratio of Total fixed costs to Contribution margin ratio. This can be expressed as
break even point=[Total fixed costs ]/ [ Contribution margin ratio.]
Substitute,
break even point= [ $180,000]/ [0.3]
=$600,000
Answer:
The current value of the stock is $3.63
Explanation:
The company's management does not expect to increase its dividend in the foreseeable future. It means that the dividend for this years (to be received after 1 years from today) is also $4.24
Future value (FV): $4.25
Rate: 17%
Present value (PV) = FV/(1+rate)^tenor
= 4.25/(1+17%) = $3.63
Answer: Ethical Egoism
Explanation:
The theory of Ethical Egoism posits that people or entities are well within their rights to act in a manner that benefits their best interest and in so doing are being good in their own right.
The small bank acted in such a manner that it left itself unexposed to risk whilst still making quite a huge profit. The small bank pursued its own interests and so followed the moral theory of Ethical Egoism.
The bank is operating under the moral theory of Moral Egoism. It acts in its own best interest by making large profits off the home loans and offloading the long-term risk.
The bank's actions seem to align with the Moral Egoism theory. This theory suggests that an entity, in this case, the bank, acts in its own best interest. Offering home loans at extremely low initial rates turns in large profit for the bank, which is its main interest. However, offloading the risk of these loans onto another bank marks the bank's primary focus on their well-being rather than the consequences for their customers in the long run. These customers may struggle if the larger bank they deal with lacks flexibility in difficult situations.
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Answer:
The correct answer is D.
Explanation:
Giving the following information:
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1800 units, the actual direct labor cost was $48000 for 3000 direct labor hours worked.
We need to calculate the total direct labor variance, using two formulas:
Direct labor efficiency variance= (SQ - AQ)*standard rate
Direct labor efficiency variance= (1,800*2 - 3,000)*15= $9,000 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (15 - 48,000/3,000)*3,000= $3,000 unfavorable
Total direct labor variance= 9,000 - 3,000= $6,000 favorable
Answer:
1. In a Year 20,367 20,017
2. In a Year 21,333 21,917
3. In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
4.Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Explanation:
1. Using NPW Analysis
Walmart Kit Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC PV 2.71 5.05
Amc 27100 60600
Total Cost 61100 120100
In a Year 20,367 20,017
2. Using EUAW Analysis
Walmart Kit
Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC 30000 72000
Total 64000 131500
In a Year 21,333 21,917
In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Hence Target product will be the best option we would advice the management to go for.
To determine which kitchen kit to choose, you can use NPW (Net Present Worth) analysis and EUAW (Equivalent Uniform Annual Worth) analysis. In NPW analysis, calculate the present worth of each option by subtracting the present value of the annual maintenance cost from the sum of the present value of the salvage value and the present value of the first cost. In EUAW analysis, divide the NPW by the present worth factor to calculate the equivalent uniform annual worth. You can extend the analysis to show the EUAW for an extended life of the products. Present the information ethically and transparently, addressing your bias towards the Target kit and presenting the analysis results objectively.
a. In order to determine which kitchen kit to choose using NPW analysis, we need to calculate the present worth of each option. The present worth is calculated by subtracting the present value of the annual maintenance cost from the sum of the present value of the salvage value and the present value of the first cost. You can use the formula: NPW = (-FC + PV(SV) + PV(AMC)) / (1 + i)^n, where FC is the first cost, PV(SV) is the present value of the salvage value, PV(AMC) is the present value of the annual maintenance cost, i is the interest rate, and n is the number of years.
b. To determine which kitchen kit to choose using EUAW analysis, we need to calculate the equivalent uniform annual worth of each option. The EUAW is calculated by dividing the NPW by the present worth factor. You can use the formula: EUAW = NPW / Present Worth Factor, where NPW is the net present worth, and the Present Worth Factor is calculated using the formula: Present Worth Factor = (1 - (1 + i)^-n) / i.
c. To show that the Target option is the better choice, you can extend the analysis from part b and calculate the EUAW for an extended life of the products. Simply substitute the new number of years into the formula and compare the EUAWs of the two options.
d. Since you have a bias towards the Target kit, it is important to present the information ethically and transparently. You can start by explaining your bias and personal preference, and then present the analysis results objectively, showcasing the financial aspects and consequences of each option. It is crucial to provide all the necessary information and allow management to make an informed decision based on the facts presented.
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Answer:
1
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
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.
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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When The number of workers unemployed in this nation is 2.8 million
When The number of workers employed is 42.70 million
Although when 45.5 million accounts for the nation's labor force of 100% since the unemployment rate is 6.15%, then hence proof that the percentage of workforce gainfully employed is 93.85% .(100%-6.15%)
Then Accordingly, the portion of the population is employed is 42.70 million(93.85%*45.5 million) while the balance of 2.8 million is for the unemployed(45.5 million minus 42.70 million)
Find out more information about unemployed here:
Answer:
The number of workers unemployed in this nation is 2.8 million
The number of workers employed is 42.70 million
Explanation:
45.5 million accounts for the nation's labor force of 100%,since the unemployment rate is 6.15%,hence the percentage of workforce gainfully employed is 93.85%.(100%-6.15%)
Accordingly, the portion of the population employed is 42.70 million(93.85%*45.5 million) while the balance of 2.8 million is for the unemployed(45.5 million minus 42.70 million)