Answer:
Find the answers below
Explanation:
A. Veblen goods are luxury goods sought after by wealthy people and for which these category of people increase their demand as the prices of the good increase (in contrast to the popular law of demand).
2. Examples are luxury houses or cars, jewelry etc.
3. Some customers buy these type of goods in order to show how wealthy they are or show their status.
A Veblen good is a luxury good that defies the law of demand by having an upward-sloping demand curve. An example is a luxury brand handbag. Some consumers purchase Veblen goods as a status symbol and for the exclusivity they confer.
a. A Veblen good is a type of luxury good that has an upward-sloping demand curve, meaning that as the price of the good increases, the quantity demanded also increases. This is contrary to the law of demand, which states that as the price of a good increases, the quantity demanded decreases.
b. An example of a Veblen good is a luxury brand handbag. As the price of the handbag increases, the demand for it also increases, as some consumers perceive the higher price as a status symbol and are willing to pay more for it.
c. Some consumers purchase Veblen goods because they derive satisfaction from owning and displaying luxury items as a symbol of their status and wealth. The higher price of Veblen goods can make them more desirable to certain consumers, as it signifies exclusivity and scarcity.
#SPJ12
b.The time to complete setup activities that do not require that the machine be stopped
c.The time it takes equipment vendors to set up the machine
d. None of the above
Answer: The correct answer is "b.The time to complete setup activities that do not require that the machine be stopped".
Explanation: External setup time refers to the time to complete setup activities that do not require that the machine be stopped.
External setup is the term used to refer to when workers can perform maintenance without stopping the production process. The term "external" is used because maintenance can be performed "external" to the production process.
Answer:
$4,000,000
Explanation:
The computation of Present Value of Annuity is shown below:-
Present Value of Annuity = Amount ÷ Rate of Interest
Rate of Interest = 6.5% per year compounded weekly
or Rate of Interest = 6.5 ÷ 52
= 0.125% per week
Present Value of Annuity = Amount ÷ Rate of Interest
= $5,000 ÷ 0.00125
= $4,000,000
Therefore for computing the present value of annuity we simply applied the above formula.
Answer:
Option B ⇒ The annual interest rate on Note A is 9.35% .
Explanation:
Note B has an accrued interest for six months during 2013: $220,000 x .08 x 6/12 = $8,800.
The remainder of the accrued interest, $7,200 ($16,000 - $8,800) was from Note A, which was held for seven months in 2013.
Therefore, we have the following: $132,000 x annual interest rate x 7/12 = $7,200.
Thus, the annual interest rate on Note A would be ($7,200/132,000) x 12/7 = 9.35%.
Option B ⇒ 9.35% is the correct answer.
Answer:
1) ROI= 20%
2) ROI=15%
3) ROI = 35%
Explanation:
ROI is the proportion of capital invested that is earned as net operating income. It calculated as
Return on Investment = Net income/Average operating asset
= 150,000/750,000 × 100 = 20%
2.
ROI with a 50% increase in sales and 200% increase in average assets
ROI = (150%× 150,000)/(200%× 750,000)× 100= 15%
3.
ROI wth a 1,000,000 increase in sales
ROI = ( 150,000+200,000)/(250,000+ 750,000)× 100=35%
Answer
1) ROI= 20%
2) ROI=15%
3) ROI = 35%
The company's ROI for the different scenarios were calculated to be 20%, 60% and 35% respectively.
The Return on Investment (ROI) can be calculated by dividing the Net Operating Income by the Average Operating Assets and is typically expressed as a percentage. ROI = (Net Operating Income / Average Operating Assets) × 100
For Requirement 1, with a Net Operating Income of $150,000 and Average Operating Assets of $750,000, the ROI is (150000/750000) × 100 = 20%.
For Requirement 2, if sales and Net Operating Income increase by 50% and 200% respectively, with no increase in Average Operating Assets, the new Income becomes 150,000 * 3 (because of the 200% increase) = $450,000. Therefore, the new ROI becomes (450000/750000) × 100 = 60%.
For Requirement 3, if sales increase by $1,000,000, requiring an increase in Average Operating Assets by $250,000, with a resulting $200,000 increase in Net Operating Income, the new Net Operating Income becomes $150,000 + $200,000 = $350,000 and the new Average Operating Assets becomes $750,000 + $250,000 = $1,000,000. Therefore, the new ROI becomes (350000/1000000) × 100 = 35%.
#SPJ12
Answer:
Gain recognized = $3,000
Explanation:
Continuation is"Each contract is on 1, 000 units of the commodity."
Gain in accounting year Jan 1 to Dec 31, 2013 is the total gain the accounting year. Gain recognized = (Price on March 1, 2013 - Price on Dec 31, 2012) * Total Contract
Gain recognized = (64 - 61) * 1000
Gain recognized = 3 * 1000
Gain recognized = $3,000
Answer:
B. A decline in the value of the inventory.
Explanation:
Cost basis accounting: It is a method of calculating the value of inventory on actual cost for tax purposes as the purchase price is adjusted for dividends and return of capital distribution. It uses lower of cost either original cost or current market price. The market price should not be less or more than the net realizable value. Net realizable value is defined as the selling price minus cost of completion. Therefore, the cost basis of accounting to the lower-of- cost-or-net-realizable-value basis in valuing inventory is necessitated by a decline in the value of the inventory.