Answer:C
Explanation:The theory believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.
In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information:
Payment for the early extinguishment of long-term notes (book value: $100 million) $108.1
Sale of common shares 352.1
Retirement of common shares 244.1
Loss on sale of equipment 4.1
Proceeds from sale of equipment 16.1
Issuance of short-term note payable for cash 20.1
Acquisition of building for cash 14.1
Purchase of marketable securities (not a cash equivalent) 10.1
Purchase of marketable securities (considered a cash equivalent) 2.1
Cash payment for 3-year insurance policy 6.1
Collection of note receivable with interest (principal amount, $22) 26.1
Declaration of cash dividends 66.1
Distribution of cash dividends declared in 2020 60.1
Required:
a. Prepare the investing activities section of Millennium's statement of cash flows for 2018.
b. Prepare the financing activities section of Millennium's statement of cash flows for 2018.
Answer and Explanation:
The preparation of the investing and the financing activities is presented below:
1) Investing activities
Proceeds from the sale of equipment 16
Purchase of building -14
Purchase of marketable securities -10
Collection of notes receivable 26
Net cash flow from investing activities 18
2) Financing activities
Payment of long term notes -108
Sales of common share 352
Retirement of shares -244
Issue short term notes payable 20
Dividend paid -60
Net cash flow from financing activities -40
Kaspar Industries expects credit sales for January, February, and March to be $205,200, $266,800, and $316,800, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
Collections from Customers
Credit Sales January February March
January
February
March
Answer:
Results are below.
Explanation:
Giving the following information:
It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.
Sales:
January= $205,000
February= $266,800
March= $316,800
Cash collection January:
Sales in cash from January= 205,000*0.75= 153,750
Total cash collection January= $153,750
Cash collection February:
Sales in cash from February= 266,800*0.75= 200,100
Sales in account from January= 205,000*0.25= 51,250
Total cash collection February= $251,350
Cash collection March:
Sales in cash from March= 316,800*0.75= 237,600
Sales in account from February= 266,800*0.25= 66,700
Total cash collection March= $304,300
Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely:_______.a. pool funds to invest in a business venture. b. give up a share of its ownership. c. borrow funds to be returned on a designated maturity date. d. pay periodic dividends.
Answer:
The answer is B.
Explanation:
The correct option is B. - give up a share of its ownership. Venture capitalist invest in a start up ventures or small businesses that they believe have high future prospects.
Because venture capitalists are exprienced business wise and have enough money, they tend to make or provide managerial decisions. The business will be in form of partnership, hence, Artificial Intelligence Inc. giving up part of its ownership.
It is not a must venture business pay a periodic dividend but business capitalist share in the profit or loss of the business.
Ricky is not in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods.
Answer:
The options are
A) as small as possible; all
B) equal; all
C) equal; normal
D) maximized; all
The answer is B) equal; all
Ricky not being in a consumer equilibrium and he considering the prices prices of goods means he allocated all his income in such a way that entails his marginal utility per dollar spent is equal for all goods.
This is to ensure that he cuts cost and maximizes his spending power.
Vincenzo Martin and Sasha Boudrakis have started a new firm, The Fan Base. Vincenzo is a well-known marketing guru who advises major league sports franchises on how to maximize the revenue from their teams' brands and logos. Sasha, meanwhile, is mostly silent in the operation. He has invested $2 million to get The Fan Base off the ground, and in return he receives 25% of the firm's annual profits. The Fan Base is organized as a Group of answer choices corporation. limited liability company (LLC). sole proprietorship. general partnership. limited partnership.
Answer: limited partnership
Explanation:
With the description given in the question, the The Fan Base is organized as a limited partnership. A limited partnership has a general partner, whom has an unlimited liability and a limited partner.
A limited partnership is when two or more partners go into business together, and in this case, the limited partners will be liable only up to the amount that they invested in the business.
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards
($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours
($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour $49,000 fixed overhead $37,000 variable
overhead (fixed $3.50; variable $2.60)
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400
Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.)
Answer: See explanation
Explanation:
1. The total, price, and quantity variances for materials will be:
Actual Production = 11250
Standard Quantity of Direct Material Required per unit = 8
Standard Quantity of Direct Material required (SQ) = 11250*l × 8 = 90000
Standard Price per Yard (SP) = 4.4
Actual Direct Material (AQ) = 90500
Actual Price per Pound (AP) = 4.15
Total Material Variance:
= (SP × SQ) - (AP × AQ)
= (4.40 × 90000) - (4.15 × 90500)
= 396000 - 375575
= 20425
Direct Material Price Variance:
= AQ × (SP - AP)
= 90500 × (4.40 - 4.15)
= 90500 × 0.25
= 22625 Favourable
Direct materials quantity variance:
= SP × (SQ - AQ)
= 4.40 × (90000 - 90500)
= 4.40 × -500
= -2200 Unfavourable
2. The total, price, and quantity variances for labor will be:
Actual Production = 11250
Standard Hours Required per unit = 1.2
Standard Hours required (SH) = 11250 × 1.20 = 13500
Standard Rate per Hour (SR) = 13.4
Actual Hours required (AH) = 14250
Actual Rate per Hour (AR) = 14.1
Total Labour Variance:
= (SR × SH) - (AR × AH)
= (13.40 × 13500) - (14.10 × 14250)
= 180900 - 200925
= -20025 Unfavourable
Dircet Labour RateVariance:
= AH × (SR - AR)
= 14250 × (13.40 - 14.10)
= 14250 × -0.7
= -9975 Unfavourable
Direct Labour efficiency variance:
= SR × (SH - AH)
= 13.40 × (13500 - 14250)
= 13.40 × -750
= -10050 Unfavourable
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $18.
Requied:
a. Determine each alternativeâs break-even point in units.
b. At what volume of output would the two alternatives yield the same profit?
c. If expected annual demand is 10,000 units, which alternative would yield the higher profit?
Answer:
Results are below.
Explanation:
Giving the following information:
Alternative A:
Fixed costs= $36,000
Unitary variable cost= $7
Selling price= $18
Alternative B:
Fixed costs= $31,000
Unitary variable cost= $11
Selling price= $18
First, we need to calculate the break-even point in units for each alternative:
Break-even point in units= fixed costs/ contribution margin per unit
Alternative A= 36,000 / (18 - 7)= 3,273
Alternative B= 31,000 / (18 - 11)= 4,429
Now, we equal the indifference point:
36,000 + 7x = 31,000 + 11x
x= number of units
5,000 = 4x
1,250 = x
The indifference point is 1,250 units.
Finally, 10,000 units are sold:
Alternative A:
Net income= 10,000*(18 - 7) - 36,000
Net income= $74,000
Alternative B:
Net income= 10,000*(18 - 11) - 31,000
Net income= $39,000
15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much goodwill should be recognized
Answer:
$104,000
Explanation:
Note: The full question is attached as picture below
Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities
Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000
Fair value of net assets = $460,000
Purchase consideration paid = 12,000*$47
Purchase consideration paid = $564,000
Goodwill recognized = Purchase consideration - Fair value of net assets
Goodwill recognized = $564,000 - $460,000
Goodwill recognized = $104,000
Problems and Applications Q8 Suppose that the government decides to issue tradable permits for a certain form of pollution. In terms of economic efficiency in the market for pollution, having the government auction the permits off is distributing them to firms. True or False: If the government chooses to distribute the permits, the allocation of permits among firms does not matter for efficiency, but it would affect the distribution of wealth. True False
Answer:
1. False
2. True
Explanation:
Tradable permits issued to firms, there will be no effect on economic efficiency for the market of pollution permit. The revenue of government will be increase by selling and auctioning those permits.
The process for converting present values into future values is called________________.
Answer:
Compounding.
Explanation:
Compounding is typically an accounting process used for the conversion of present values of an asset, investment or money into future values.
Generally, a compound interest is calculated based on the interest rate on a loan, principal and the accumulated interest gained from previous periods. This interests is compounded for a certain number of times such as daily, weekly, quarterly or annually.
Mathematically, to find the future value from the present value of an asset or investment, we would use the compound interest formula;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value. P is the principal or starting amount. r is annual interest rate. n is the number of times the interest is compounded in a year. t is the number of years for the compound interest.The discount rate is the interest rate banks charge their best customers. the interest rate banks charge each other for overnight loans. the interest rate the U.S. Treasury pays on Treasury Bills. the interest rate the Fed charges to banks for loans from the Fed.
Describe the key stages in integrating total quality management into the strategy of an international petrochemical company
Answer:
Total quality management (TQM) describes a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.Explanation:
If my answer is incorrect, pls correct me!
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Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,956.84. The bond has a coupon rate of 6.84 percent and matures in 24 years. If the bond makes semiannual coupon payments, what is the YTM of the bond
Answer:
Semestral rate= 3.51%
Annual rate= 7.02%
Explanation:
Giving the following information:
Par value= $2,000
Present value= $1,956.84
Coupon= (0.0684/2)*2,000= $68.4
Number of periods= 24*2= 48 semesters
To calculate the YTM, we need to use a financial calculator:
Function= CMPD
n= 48
I%= SOLVE = 3.51%
PV= 1,956.84
PMT= -68.4
FV= -2,000
Semestral rate= 3.51%
Annual rate= 3.51*2= 7.02%
Huprey Co. is the defendant in the following legal claims. For each of the following claims, indicate whether Huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure.
Answer:
Record a liability.Disclose in notes.Have no disclosure.Explanation:
A contingent liability should only be recorded if the likelihood of it happening is known and the value can reasonably be estimated.
In the first scenario, it is likely that Huprey will lose so the likelihood is known. The value can also be reasonably estimated to be $1,070,000 so this should be recorded as a liability.
In the second scenario, the likelihood is known but the value cannot be estimated. In such a case, simply disclose this possibility in the notes of the financial statement.
For the third scenario, the possibility of the liability being incurred is remote so there is no need to either record or disclose the liability.
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4% and IR 6%. A stock with a beta of 1 on IP and 0.4 on IR currently is expected to provide a rate of return of 14%. If industrial production actually grows by 5%, while the inflation rate turns out to be 7%, what is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.)
Answer:
15.4%
Explanation:
Calculation to determine your best guess for the rate of return on the stock
The revised estimate on the rate of return on
the stock would be:
Before
14% = α +[4%*1] + [6%*0.4]
α = 14% - 6.4%
α = 7.6%
With the changes:
7.6% + [5%*1] + [7%*0.4]
= 7.6% + 5% + 2.8%
= 15.4%
Therefore your best guess for the rate of return on the stock will be 15.4%
Sandra is purchasing a home with a first mortgage loan for $548,250, which is the conforming loan limit for the area where she lives at the time that she secures approval. Her interest rate is not a prime rate, and in order to determine if it triggers the threshold for higher-priced mortgage loans, her creditor must determine if the APR for the loan exceeds the average prime offer rate by:
Question Completion with Options:
2.5 percentage points
1.5 percentage points
3.5 percentage points
6.5 percentage points
Answer:
Sandra's creditor must determine if the APR for the loan exceeds the average prime offer rate by:
1.5 percentage points
Explanation:
The first mortgage loan principal should not exceed the conforming loan limit for the area where Sandra lives at the time that she secures the loan approval. It behooves on Sandra’s creditor to determine if the annual percentage rate (APR) for the mortgage loan exceeds the average prime offer rate (or the sample rate that is a representative of the APRs charged by creditors for mortgage loans that have low-risk pricing characteristics) by 1.5 percentage points.
Your non-technical manager is delighted with the idea of referring to common vulnerabilities by their nicknames, such as "Heartbleed" instead of CVE-2014-0160 or "Shellshock" instead of CVE-2014-6271, and insists that no one can possibly remember those long CVE names. Present reasons both for and against this conclusion. Which side of the issue do you agree with, explain your opinion and reasoning. This should be written as a recommendation email to your manager with a list of backup sources at the bottom. When you list these sources, include more information than only a URL.
Budgeted sales in Acer Corporation over the next four months are given below: Budgeted sales September October November December $120,000 $140,000 $180,000 $160,000 Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:
Answer:
$161,400
Explanation:
Cash collection calculation
December cash sales ($160,000*30%) = $48,000
Credit sales
December: (160000*70%*50%) = $56,000
November: (180000*70%*30%) = $37,800
October: (140,000*70%*20%) = $19,600
Total cash collections $161,400
Consider to communities: Alpha and Omega. Alpha has 10 residents, 5 who earn $60,000 and 5 who earn $20,000. Omega also has 10 residents, 5 who earn $300,000 and 5 who earn $50,000
Part 1. The income inequality ratio in Alpha is and the income inequality ratio in Omega is
Part 2. Alpha and Omega each have 10 residents. The top two residents in Alpha have an average income of $90,000, and the bottom two residents in Alpha have an average income of $30,000. The top two residents in Omega have an average income of $250,000, and the bottom two residents in Omega have an average income of $50,000. How much would the top two residents in Alpha have to earn in order for Alpha to have the same income inequality ratio as Omega? The top two Alpha residents would need to earn $ each Part 3 (1 point) Suppose Alpha's community grew to 15 residents with the following incomes: 2 residents' income $175.000 300,000 260,000 65,000 1 resident's income 1 resident's income 3 residents' income 3 residents' income 2 residents' income 1 resident's income 1 resident's income 1 resident's income 26,000 105,000 650,000 18,000 140,000 The new income inequality ratio in Alpha is:_____. (Round to two decimal places.)
To overcome information overload, supervisors should: ________.a. give employees all the information and let them sift out what is useful and what is not b. not ask for feedback, because employees know what is expected c. be sure that employees are paying attention d. keep repeating instructions
Inflation can impose significant costs and adversely distort economic systems. Indicate whether the costs and distorting effects exemplify menu costs, shoe leather costs or unit of account costs. a. discourages people from holding money. b. can reduce the quality of economic decisions. c. can lead to stores listing prices in more stable currencies. d. spending time converting money into something that better holds value. e. makes money a less reliable source of measurement. f. can cause distortion to the tax system. g. causes difficulty in firms and individuals financial planning. h. causes costs associated with changing prices in stores.1. Menu costs.2. Shoe-leather-costs. 3. Unit-of-account costs.
Answer:
1. Menu costs
- Can lead to stores listing prices in more stable currencies.
- Causes costs associated with changing prices in stores.
2. Shoe-leather-costs
- Discourages people from holding money.
- Spending time converting money into something that better holds value.
3. Unit-of-account costs
- Can reduce the quality of economic decisions.
- Makes money a less reliable source of measurement.
- Can cause distortion to the tax system.
- Causes difficulty in firms and individuals financial planning.
Given the following data:
Selling price per unit $ 2.00
Variable production cost per unit S $ 0.30
Fixed production cost $ 6,000
Sales commission per unit $ 0.20
Fixed selling expenses $ 1,500
How much is the break-even point in dollars?
A) $6,000
B) $4,000
C) $8,000
D) $10,000
E) None of the above
Answer :
See below
Explanation:
Given the above information, break even point in dollars is calculated as seen below
Break even point in dollars = Fixed cost / Contribution margin ratio
Where
Fixed cost = $6,000
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio = ($2 - $0.3) / $2
Contribution margin ratio = 85%
Therefore,
Break even point in dollars = $6,000 / 85%
Break even point in dollars = $7,059
a. On October 1, Year 1, YD collected $24,000 for consulting services it agreed to provide during the coming year.
b. Adjusted the accounts to reflect the amount of consulting service revenue recognized in Year 1.
Required
a. Record the events under an accounting equation.
b. Prepare an income statement, balance sheet, and statement of cash flows for the 2013 accounting period.
c. Ignoring all other future events, what is the amount of service revenue that would be recognized in 2014?
Answer:
A. Assets= Liabilities + S/E
Cash= Unearned revenue + Retained earnings
$24,000 = $18,000 + $6,000
Bi) Income statement $6,000
Bii) Balance sheet Total Asset $24,000
Balance sheet Total Liabilities $24,000
Biii) Ending Cash Balance $24,000
C. $18,000
Explanation:
a. To Record the events under an accounting equation.
Event Assets= Liabilities + S/E
Cash= Unearned revenue + Retained earnings
Event $24,000 =$24,000 + $0
Adjustment. = -$6,000 + $6,000
$24,000 = $18,000 + $6,000
($24,000*3/12=$6,000)
($24,000*9/12=$18,000)
b) Preparation of an income statement, balance sheet, and statement of cash flows for the 2013 accounting period.
Bi)
Yard Designs INCOME STATEMENT
For the Year Ended December 31, 2013
Revenue $6,000
($24,000*3/12=$6,000)
Expense 0
Net Income $6,000
Therefore YD Income statement is $6,000
Bii)
Yard Designs BALANCE SHEET as of december 31, 2013
ASSETS
Cash $24,000
Total Assets $24,000
LIABILITIES
Unearned Revenue $18,000
($24,000*9/12=$18,000)
Total Liabilities $18,000
STOCKHOLDERS’ EQUITY
Retained Earnings $6,000
($24,000*3/12=$6,000)
Total Stockholders’ Equity $6,000
TOTAL LIAB. AND STOCKHOLDERS’ EQUITY $24,000
($18,000+$6,000)
Therefore YD Balance Sheet As Of December 31, 2013 will be :
Total Assets $24,000
Total Liabilities $24,000
Biii)
Yard Designs STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2013
Cash Flows From Operating Activities:
Cash Receipt from Revenue $24,000
Net Cash Flow from Operating Activities $24,000
Cash Flows From Investing Activities $0
Cash Flows From Financing Activities:
Net Change in Cash $24,000
Plus: Beginning Cash Balance $0
Ending Cash Balance $24,000
Therefore YD statement of Cash flow ending Cash Balance is $24,000
C. Calculation to determine the amount of service revenue that would be recognized in 2014
Based on the information given the Nine months of unearned revenue from 2013 will be recognized in 2014
2014 Recognized service revenue=$24,000*9/12
2014 Recognized service revenue= $18,000
Therefore the amount of service revenue that would be recognized in 2014 is $18,000
Line Corporation's balance sheet showed the following amounts for their liability and stockholders' equity accounts: Current Liabilities, $5,000; Bonds Payable, $1,500; Lease Obligations, $2,000; and Deferred Income Taxes, $300. Total stockholders' equity was $6,000. The debt-to-equity ratio is:___________
Answer:
the debt-to-equity ratio is 1.47
Explanation:
The computation of the debt-to-equity ratio is shown below
= (Current liabilities + Bonds payable + Lease obligations + Deferred income taxes) ÷ Total stockholder's equity
= ($5,000 + $1,500 + $2,000 + $300) ÷ $6,000
= 1.47
Hence, the debt-to-equity ratio is 1.47
Therefore the same should be considered and relevant
Suppose New Zealand uses one unit of labor to produce a kiwi and two units of labor to produce an apple. Suppose Australia uses two units of labor to produce a kiwi and one unit of labor to produce an apple. In this case, New Zealand:________
a. has a comparative advantage in producing apples.
b. has a comparative advantage in producing kiwis.
c. has a comparative advantage in producing both goods.
d. does not have a comparative advantage in producing either good.
Answer:
b. has a comparative advantage in producing kiwis.
Explanation:
Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.
This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.
In this scenario, New Zealand has a comparative advantage in producing kiwis than Australia because it uses one unit of labor to produce a kiwi and two units of labor to produce an apple
If the beginning raw materials inventory balance is $50 and the ending raw materials inventory balance is $500 and the amount of raw materials placed into production $400.....what are the Net Purchases for the period
Answer:
the net purchase is $850
Explanation:
The computation of the net purchase is shown below:
The amount of raw material placed into production = opening inventory + net purchase - ending inventory
$400 = $50 + net purchase - $400
So, the net purchase is $850
hence, the net purchase is $850
The net purchase for the period will be $850.
Amount of raw material placed into production) = Opening inventory + Net purchase - Ending inventory
$400 = $50 + Net purchase - $400
Net purchase = $850
In conclusion, the net purchase for the period will be $850.
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Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 1,500,000 Cost of sales: Direct Material $ 250,000 Direct labor 150,000 Variable Overhead 75,000 Fixed Overhead 100,000 575,000 Gross Profit $ 925,000 Selling and G&A Variable 200,000 Fixed 250,000 450,000 Operating Income $ 475,000 The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:
Answer:
$636,364
Explanation:
Calculation to determine what The break-even point for Gardner Corporation for the current year is
First step is to calculate the Variable costs
Variable costs = $250,000 + $150,000 + $75,000 + $200,000
Variable costs = $675,000
Second step is to calculate the Contribution margin ratio
Contribution margin ratio = (Sales - Variable costs) / Sales
Contribution margin ratio= ($1,500,000 - $675,000) / $1,500,000
Contribution margin ratio= 0.55*100
Contribution margin ratio = 55%
Now let calculate the Break-even point
Break-even point = Fixed costs / Contribution margin ratio
Break-even point= ($100,000 + $250,000) / 0.55
Break-even point = $636,364
Therefore The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:$636,364
Dana has standard consumer preferences over two goods: hours spent watching football (W) and hours spent playing football (P). He is indifferent between the bundles: A=(2W,1P) and B=(1W,2P). He is offered a third bundle C=(1.5W,1.5P). Based on the preference assumptions, what might we say about Dana's preferences for C relative to A or B?A. Dana might prefer C to A, and C to B.B. Dana might prefer C to A, and A to B.C. Dana might prefer C to A, and B to C.D. Dana might prefer A to C, and B to C.E. Dana might be indifferent between C, A, and B.
Answer:
The correct option is Dana might be indifferent between C, A, and B.
Explanation:
Note: See the attached photo for the indifference curve showing points A, B and C.
The answer can be explained using an indifference curve.
An indifference curve is a graph that depicts the combination of two commodities that provide equal satisfaction or utility to the consumer. A consumer is indifferent between the two commodities at each point on an indifference curve because all points on the curve provide him with the same level of satisfaction or utility.
In the attached photo, bundles A, B and C are plotted as points on the same indifference curve (IC). Since points A, B and C are on the same IC, it therefore implies that Dana might be indifferent between C, A, and B.
Therefore, the correct option is Dana might be indifferent between C, A, and B.
Winnebagel Corp. currently sells 24,600 motor homes per year at $36,900 each, and 9,840 luxury motor coaches per year at $69,700 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 15,580 of these campers per year at $9,840 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 3,690 units per year, and reduce the sales of its motor coaches by 738 units per year.
Answer:
The amount to use as the annual sales figure when evaluating this project is $1,831,617,600.
Explanation:
Note: This question is not complete as the requirement is not included. To complete question, the requirement is therefore provided before answering the question as follows:
Required: What is the amount to use as the annual sales figure when evaluating this project?
The explanation of the answers is now provided as follows:
New units of motor homes per year = Current units of motor homes per year + Expected increase in the unit of motor homes per year = 24,600 + 3,690 = 28,290
New units of luxury motor coaches per year = Current units of luxury motor coaches per year + Expected decrease in the unit of luxury motor coaches per year = 9,840 - 738 = 9,102
Annual sales figure = (New units of motor homes per year * Unit of motor homes) + (New units of luxury motor coaches per year * Unit price of luxury motor coaches) + (Expected units of portable camper * Unit price of portable camper) = (28,290 * $36,900) + (9,102 * $69,700) + (15,580 * $9,840) = $1,831,617,600
Therefore, the amount to use as the annual sales figure when evaluating this project is $1,831,617,600.
At December 31, before adjusting and closing the accounts had occurred, the Allowance for Doubtful Accounts of Seaboard Corporation showed a debit balance of $3,200. An aging of the accounts receivable indicated the amount probably uncollectible to be $2,100. Given this information, write the year-end adjusting entry for Seaboard Corporation in Journal Entry format.
Answer:
Debit to Uncollectible Accounts Expense of $5,300.
Explanation:
Based on the information given the year-end adjusting entry for Seaboard Corporation in Journal Entry format will be DEBIT TO UNCOLLECTIBLE ACCOUNTS EXPENSES OF $5,300.
Uncollectible Accounts Expense=Allowance for Doubtful Accounts +Accounts receivable Uncollectible
Uncollectible Accounts Expense=$3,200+$2,100
Uncollectible Accounts Expense=$5,300
