Answer: e. the marginal propensity to consume decreases from 0.7 to 0.6
Explanation:
Calculate the marginal propensity to consumer when the disposable income is increased from $2,000 to $3,000 to $4,000.
The Marginal propensity to consume is calculated by the formula:
= Change in consumption / Change in income
When disposable income increased from $2,000 to $3,000.
= (2,900 - 2,200) / (3,000 - 2,000)
= 0.7
When disposable income increased from $2,000 to $3,000.
= (3,500 - 2,900) / (4,000 - 3,000)
= 0.6
The marginal propensity to consume decreased from 0.7 to 0.6.
On January 1, 2021, Doyle Corporation had 140,000 shares of its $5 par value common stock outstanding. On December 1, when the market price of the stock was $15, the corporation declared a 40% stock dividend to be issued to stockholders of record on December 16, 2021. What was the impact of the 40% stock dividend on the balance of the retained earnings account
Answer: Retained earnings would reduce by the $840,000 dividend.
Explanation:
Stock dividends to the shareholders is to be paid from the retained earnings of the company as it represents profits that the shareholders get because they are owners in the company.
Retained earnings spent = Number of shares * Market price * Stock dividend
= 140,000 * 15 * 40%
= $840,000
Retained earnings would reduce by the $840,000 dividend.
Match each example to the appropriate term.
a. Trees used to make paper
1. Human capital
2. Technological knowledge
3. Physical capital
b. A printing press used to make books.
1. Human capital
2. Technological knowledge
3. Physical capital
c. A method of organizing workers to increase production per hour.
1. Human capital
2. Technological knowledge
3. Physical capital
d. The skills workers learn during a training session.
1. Human capital
2. Technological knowledge
3. Physical capital
Answer:
a equals 3
b equals 3
c equals 1
d equals 2
When a company has established separate manufacturing overhead rates for each department, it is using:_______.
a. departmental overhead rates.
b. cost distortion.
c. a plant-wide overhead rate.
d. lean thinking.
Answer:
Departmental overhead rates
he preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. b. allows managers to buy additional shares below the current market price. c. protects the current shareholders against a dilution of their ownership interests. d. is included in every corporate charter.
Answer:
c. protects the current shareholders against a dilution of their ownership interests.
Explanation:
In the case when the preemptive right should be significant for the shareholders so it basically protect the present shareholders that are opposed to the dilution with respective to the ownership interest
Therefore the option c is correct
And, the other options seems wrong
In many organizations, information flows much more freely within functional departments than it does across functions (i.e., throughout the entire organization). ________ represents an information system designed to overcome this tendency.
Answer:
ERP
Explanation:
Enterprise resource planning (ERP) means the software that can be used by an organization in order to manage the day to day business activities like accounting, management of risk, supply chain management, project management, etc
Also here the information could be transfer within the functional departments via the overall organization
Therefore the above should be the answer
Happy Trails, a bicycle rental company, is considering purchasing three additional bicycles. Each bicycle would cost them $249.66. At the end of the first year the increase to their revenues would be $140 per bicycle. At the end of the second year the increase to their revenues again would be $140 per bicycle. Thereafter, there are no increases to their revenues. At which of the following interest rates is the sum of the present values of the additional revenues closest to the price of a bicycle?
a. 5 percent.
b. 6 percent.
c. 7 percent.
d. 8 percent.
Answer:
D
Explanation:
We are to determine the IRR of the purchase
The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
Cash flow in Y0 = -249.66
Cash flow in Y1 = 140
Cash flow in Y2 = 140
IRR = 8
To determine IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
The year 14 interest of a bond is the face line of the bond
Answer:
yes you are correct okay with you
You would like to have enough money saved to receive a $50,000 per year in perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8%.)
Answer:
$625,000
Explanation:
Calculation to determine How much would you need to have saved in your retirement fund to achieve this goal
Using perpetuity equation
PV=C/r
Where,
C=Perpetuity after retirement
r=Annual interest rate
Let plug in the formula
PV = (50,000/0.08)
PV= $625,000
Therefore How much would you need to have saved in your retirement fund to achieve this goal will be $625,000
Budgeted overhead for Cinnabar Industries at normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead volume variance is Group of answer choices $10,000 favorable. $11,000 favorable. $5,000 favorable. $8,000 favorable.
Answer:
Manufacturing overhead volume variance= $5,000 favorable
Explanation:
Giving the following information:
Estimated overhead allocation rate= 4 + 6= $10 per direct labor hour
Actual number of hours= 31,500
Standard hours were allowed= 32,000
To calculate the overhead volume variance, we need to use the following formula:
Manufacturing overhead volume variance= (Estimated manufacturing overhead rate*standard allocation base) - (Estimated manufacturing overhead rate* Actual amount of allocation base)
Manufacturing overhead volume variance= (10*32,000) - (10*31,500)
Manufacturing overhead volume variance= $5,000 favorable
A company like Motorola might establish a goal of reducing its inventory by 50 percent over the next year. To ensure that it reaches this goal, the company could monitor its progress on a quarterly or monthly basis. If the managers at Motorola discover that there is a danger of not achieving this goal, they can take corrective action to adjust for the deficiency. This is a description of the managers' ____ function.
Answer:
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Explanation:
sryyy
Increased demand for bonds tends to reduce the yield from holding bonds.
Answer:
Bonds have an inverse relationship to interest rates. When the cost of borrowing money rises (when interest rates rise), bond prices usually fall, and vice-versa.
At first glance, the negative correlation between interest rates and bond prices seems somewhat illogical. However, upon closer examination, it actually begins to make good sense.
An entrepreneur purchased an existing bicycle shop that had between 13000
Answer:
Write the full question a so I can answer?
A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance account was initially increased for the payment. The required adjusting journal entry on December 31 includes a: (Check all that apply.)
Answer:
Credit to Prepaid insurance for $400 and Debit to Insurance expense for $400
Explanation:
The journal entry is given below:
Insurance expense ($4800 × 1 ÷ 12) $400
Prepaid Insurance $400
(To record insurance expense)
Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets
Prepaid insurance credit for $400 and Insurance expense debit for $400.
Given that,
Insurance policy expense is $4,800.Insurance policy period is of 12 months.Working note,
Amount of insurance expense for 1 month = [$4,800 [tex]\times[/tex] (1 ÷ 12) ]
= $400
So, journal entry for the data are as follows,
Insurance expense A/c Dr. $400
To, Prepaid Insurance A/c $400
(Being insurance expense is recorded)
Learn more: https://brainly.com/question/4557688
Operating Leverage
Haywood Co. reports the following data:
Sales $6,160,000
Variable costs (4,620,000)
Contribution margin $1,540,000
Fixed costs (440,000)
Operating income $1,100,000
Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.
Answer:
Degree of operating leverage= 1.4
Explanation:
Giving the following information:
Sales $6,160,000
Variable costs (4,620,000)
Contribution margin $1,540,000
Fixed costs (440,000)
Operating income $1,100,000
To calculate the degree of operating leverage, we need to use the following formula:
degree of operating leverage= Total contribution margin / operating income
degree of operating leverage= 1,540,000 / 1,100,000
degree of operating leverage= 1.4
Which of the following statements about the monetary aggregates is true?
a. The growth rates of M1 and M2 always track each other closely.
b. M1 is greater than M2.
c. When the growth rate of M2 increases, the growth rate of M1 must also increase.
d. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same.
Given that, in billions of U.S. dollars, we have in currency, in demand deposits, in traveler's checks, in savings deposits, and in other checkable deposits. The total M1 amount in this economy is $__________
Answer: D. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same.
Explanation:
1. Since M2 = M1 + Saving deposit + Time deposits + Money Market deposit of individuals, then from the options given, the true statement about the monetary aggregate is that when you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same. Therefore, the fire option is D.
2. Your second question isn't well written but let's assume some figures in order to solve the question.
Let's say,
Currency = $863.2 billion
Demand deposit = $573.5 billion
Traveler's cheque = $3.8 billion
Savings deposit = $5237.8
Other checkable deposit = $319
Therefore, the total M1 amount in this economy will be:
M1 = Currency + Demand deposit + Travelers check + Other checkable deposits
= 863.2 + 573.5 + 3.8 + 319
= $1759.5 billion
A stock has an expected return of 16.1 percent, the risk-free rate is 6.45 percent, and the market risk premium is 7.2 percent. What must the beta of this stock be
Answer:
the beta of the stock is 1.34
Explanation:
The calculation of the beta of the stock should be
As we know that
Expected rate of return = Risk free rate + beta × market risk premium
16.1 = 6.45% + beta × 7.2%
16.1% - 6.45% = beta × 7.2%
9.65% = beta × 7.2%
So, the beta should be
= 9.65% ÷ 7.2%
= 1.34
Hence, the beta of the stock is 1.34
An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to: Multiple Choice Buy since the relevant cost to make it is $48. Buy since the relevant cost to make it is $72. Buy since the relevant cost to make it is $56. Make since the relevant cost to make it is $56. Make since the relevant cost to make it is $48.
Question Completion:
Epsilon Co. can produce a unit of product for the following:
Direct material $8
Direct labor 24
Overhead 40
Total costs per unit $72
Answer:
Epsilon Co.
Epsilon should choose to:
Make since the relevant cost to make it is $56.
Explanation:
a) Data and Calculations:
Direct material $8
Direct labor 24
Overhead 40
Total costs per unit $72
Relevant Costs:
Make Buy
Direct material $8
Direct labor 24
Overhead 24
Total costs per unit $56 $60
b) It costs Epsilon less to make the units than to buy from the outside supplier. The relevant cost excludes the 40% of the overhead that will still be incurred by Epsilon if it buys from the supplier. Relevantly, it costs Epsilon $56 per unit to make when compared to the unit cost of $60 to buy. In absolute terms, it will cost Epsilon $76 ($60 + $16) to buy as against $72 to make a unit of the part.
Our home construction company still buys nails in 15-pound boxes but now we use an average of 3495 boxes a year. Preparing an order and receiving a shipment of nails involves a cost of $1.45 per order. Annual carrying costs are $0.7 per bag. What will be their total cost of ordering and carrying the nails
Answer:
Home Construction Company
Their total cost of ordering and carrying the nails is:
= $2,488.55.
Explanation:
a) Data and Calculations:
Cost of ordering and receiving a shipment of nails = $1.45 per order
Annual carrying costs per bag = $0.7
Annual average boxes = 3,495
EOQ = square root of (2 * 3,495 * $1.45)/$0.7
= square root of 120
Number of orders = 29 (3,495/120)
Ordering costs = $42.05 ($1.45 * 29)
Carrying costs = $2,446.50 ($0.7 * 3,495)
Total cost of ordering and carrying the nails = $2,488.55 ($42.05 + $2,446.50)
