Answer: rare; costly to imitate
Explanation:
To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, rare and costly to imitate.
Competitive advantage simply has to do with the factors or the resources that are available to a particular company that allows the company to produce products that are cheaper and.bettee than its counterparts. This helps the company make more sale and more revenue.
The resources must not be one that can be easily copied by others. It must also be valuable and rare.
Answer: A. Unique; Easy to imitate
Explanation: To have the potential to become sources of competitive advantage, resources and capabilities must be non-substitutable, valuable, unique, and easy to imitate.
Drag each term to the correct location on the table.
Identify dos and don’ts of creating a good résumé.
1. using underlined text to
denote section headings
2. including marital status
3. listing work experience
chronologically
4. using different bullet styles
5. making the résumé lengthy
6. listing technical competencies
Answer:
Creating a Good Résumé
Dos
1. using underlined text to denote section headings
3. listing work experience chronologically
6. listing technical competencies
Don’ts
2. including marital status
4. using different bullet styles
5. making the résumé lengthy
Explanation:
A good resume is a document that gives a brief summary of a job applicant's personal and professional experiences, skills, and education history. It is used in addition to a cover letter to show off your best self to potential employers. Important sections of a good resume include contact information, summary or objective, work experience, and education history.
The proper sequence of events for a referee to take if a coach refuses to start play with both teams on the ice, after the game has started, is as follows: warn the captain with 15 seconds to comply, assess bench minor penalty, warn again with 15 seconds to comply, suspend the game, assess a match penalty to the head coach and report the incident to the proper authorities.A. TrueB. False
Answer:
A. True
Explanation:
The proper arrangement of the events for a referee for taking in the case when a coach deny for starting play with the both teams on the ice and after the game has started the captain would be warned with 15 seconds for comply and it should be warn again with 15 seconds now the game is suspended and it analyze the penalty of the match to the head coach and report the same to the proper authorties
So the above represent true
Universal Containers' contact center manager needs to measure the following metrics: - Agent productivity - Customer satisfaction Which report should a consultant recommend?
a. Average speed to answer
b. First contact resolution
c. Escalation rate
d. Average handle time
Answer: Average handle time
First contact resolution
Explanation:
Since the center manager needs to measure the productivity of the agent and the customer satisfaction, the report that should be recommended by a consultant would be the average handle time and the first contact resolution.
The average handle time shows the time taken for a transaction to be completed. This can be used to determine the productivity of agents. Also, first contact resolution can be used to determine customer satisfaction as it shows the number if queries that were successfully resolved.
Wilma Robles is a District Operations Coordinator. When she visits one of her offices she finds that the office has three open boxes of Emerald Cards. Each of the three Tax Pros has a complete box and log sheet at their desk. Two of the three open boxes do not reconcile when she tries to count cards and entries on the log sheets. What should Wilma do to bring the office in compliance with policies and procedures
The options are:
A.) Wilma should ignore the findings and let the practice continue.
B.) Wilma should report the findings to Incident Management for follow-up on the missing cards.
C.) Wilma should train the associates in the office on the proper distribution policy for Emerald Cards.
D.) Both B. and C.
Answer:
D.) Both B. and C.
Explanation:
Incidence management is defined as the process by which an organisation identifies, analysis and rectifies events that leads to disruption not their business processes.
These adverse effects that prevent a business from working efficiently or being productive are called incidence events.
Most organisations have a department that specialise in analysing and preventing occurrence of these events.
In the given scenario Wilma observed two of the three open boxes do not reconcile when she tries to count cards and entries on the log sheets. This is an incidence event.
First she has to report the event to the incidence management team so they can follow up on the missing cards and also set up a process to prevent future occurrence.
Since this event could also be as a result of inadequate training on process, Wilma should also train the associates in the office on the proper distribution policy for Emerald Cards.
This will reduce such events in the department going forward
If bonds are issued at a premium, the stated interest rate is a.higher than the market rate of interest b.too low to attract investors c.lower than the market rate of interest d.adjusted to a higher rate of interest
Answer:
a.higher than the market rate of interest
Explanation:
If bonds are issued at a premium, the stated interest rate is higher than the market rate of interest.
- If the company issues the binds at a premium, it means that the company is getting more money than the face value of the bond.
- This happens because the demand for the bind is high in the market.
- The demand is high because the company offers higher interest rate as compared to market interest rate.
- If the bonds are issued at a discount, then the stated interest rate is lower than the market interest rate.
Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you $8,700 per year for 5 years. If the discount rate is 5 percent, what is the present value of these cash flows
Answer:
Investment X PV=$43,357.71
Investment Y PV=$37,666.45
Explanation:
The present value of future cash flows is the today's worth of those cash flows by virtue of discounting the cash flows to present time
The present value of a future cash flow=future cash flow/(1+discount rate)^n
n refers to the period in which the cash flow is expected , for instance,for year 1 cash flow n is 1, 2 for year 2 and so on.
Investment X:
PV=$6,100/(1+5%)^1+$6,100/(1+5%)^2+$6,100/(1+5%)^3+$6,100/(1+5%)^4+$6,100/(1+5%)^5+$6,100/(1+5%)^6+$6,100/(1+5%)^7+$6,100/(1+5%)^8+$6,100/(1+5%)^9=$43,357.71
Investment Y:
PV=$8,700/(1+5%)^1+$8,700/(1+5%)^2+$8,700/(1+5%)^3+$8,700/(1+5%)^4+$8,700/(1+5%)^5=$37,666.45
When cities pass laws limiting the rent landlords can charge on apartments, the laws usually apply to existing buildings and exempt any buildings not yet built. Advocates of rent control argue that this exemption ensures that rent control does not discourage the construction of new housing. Evaluate this argument in light of the time-inconsistency problem.
Answer:
This situation represents an example of the time-inconsistency problem because the policymakers are likely to change their minds in the future, and either impose rent control to new housing as well, or to abolish all rent control laws.
In the first situation, the policymakers would be swayed by those arguing against the policy exception for new housing, while in the latter, the policymakers would simply find out that the policy is ineffective.
Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. Based on this information, the amount of cash in the fund before the replenishment is:
Answer:
$48
Explanation:
Calculation for the amount of cash in the fund before the replenishment
First step is to calculate the cash balance
Cash balance=$300-($80+160+$20)
Cash balance=$300-$260
Cash balance=$40
Now let calculate amount of cash in the fund before the replenishment
Cash before replenishment=$40+$8
Cash before replenishment=$48
Therefore the amount of cash in the fund before the replenishment is: $48
Bribery is the giving or taking of money or something of value to influence a private individual about a personal decision. true false
Answer:
the answer is true
Explanation:
when someone bribes you they want to give you something for something they want sone
Answer:
FALSE
Explanation:
Bribery is the giving or taking of money or something of value to influence a public official in the performance of his or her duties.
not a private person, thus the answer is false
As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance.The franchise company failed to live up to the value-driven principle of:_____
a. sharing information across the organization.
b. balancing customers' benefits and costs.
c. evaluating strategic competitive partnerships.
d. building relationships with customers.
e. keeping prices below those charged by competitors.
Answer:
a. sharing information across the organization
Explanation:
A franchise is an organisation that is authorised to use the brand of another to conduct business. The parent company provides support such as information about the brand and their business activity, and training to the franchise.
In the given scenario Mary Grey was surprised to find customers asking for specials she hadn't been informed of in advance.
This is a failure in the function of sharing information across the organisation.
Ideally information.on products and various campaigns should be first communicated to the franchises before they get to the customer
An excise tax on alcohol causes the supply of alcohol to decrease and the price of alcohol to decrease.
a. True
b. False
Answer:
False
Explanation:
An excise tax is tax levied on some specific goods. It is an indirect tax because it is not levied on customers.
Excise tax would increase the cost of supplying alcohol. This would reduce the supply of tax. A decrease in the supply of tax would increase the price of alcohol
[The following information applies to the questions displayed below.]
On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 59,200
Accounts Receivable 26,000
Allowance for Uncollectible Accounts 2,700
Inventory 36,800
Notes Receivable (5%, due in 2 years) 18,000
Land 160,000
Accounts Payable 15,300
Common Stock 225,000
Retained Earning 57,000
Totals $ 300,000 $ 300,000
During January 2018, the following transactions occur:
January 1. Purchase equipment for $20,000. The company estimates a residual value of $2,000 and a four-year service life.
January 4. Pay cash on accounts payable, $10,000.
January 8. Purchase additional inventory on account, $87,900.
January 15. Receive cash on accounts receivable, $22,500
January 19. Pay cash for salaries, $30,300.
January 28. Pay cash for January utilities, $17,000.
January 30. Firework sales for January total $225,000. All of these sales are on account. The cost of the units sold is $117,500.
Information for adjusting entries:
1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $18,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $33,100.
5. Accrued income taxes at the end of January are $9,500
Answer:
Since the requirements are missing, I believe that you need the adjusting entries:
1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
Dr Depreciation expense 375 ($18,000/4 x 1/12)
Cr Accumulated depreciation, equipment 375
2. At the end of January, $3,500 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $18,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts.
Dr Bad debt expense 6,250
Cr Allowance for doubtful accounts 6,250
3. Accrued interest revenue on notes receivable for January.
Dr Interest receivable 75 ($18,000 x 5% x 1/12)
Cr Interest revenue 75
4. Unpaid salaries at the end of January are $33,100.
Dr Salaries expense 33,100
Cr Salaries payable 33,100
5. Accrued income taxes at the end of January are $9,500
Dr Income tax expense 9,500
Cr Income tax payable 9,500
Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 10%. When she borrows the money, both she and Harry expect an inflation rate of 5%.
The expected real interest rate on the loan is _______ %.Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 2%. The actual real interest rate on the loan is ________ %.a. If the inflation rate turned out to be higher than expected, then:_________. b. But if inflation turned out to be lower than expected, then:________.
Answer:
The expected real interest rate on the loan is 5%.Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 2%. The actual real interest rate on the loan is 8%.
a. If the inflation rate turned out to be higher than expected, then: the real interest rate would be lower than expected.
b. But if inflation turned out to be lower than expected, then: the real interest rate would be higher than expected.
Explanation:
Expected real interest rate = nominal interest rate - expected inflation = 10% - 5% = 5%
Actual interest rate = nominal interest rate - actual inflation rate = 10% - 2% = 8%
What's the correct entry for $100 purchase of supplies on credit?
a. Debit Cash: $100 & Credit Supplies: $100
b. Debit Accounts Payable: $100 & Credit Cash: $100
c. Debit Supplies: $100 & Credit Accounts Payable: $100
d. Debit Accounts Payable: $100 & Credit Supplies: $100
e. Debit Accounts Receivable: $100 & Credit Cash: $100
Answer:
c. Debit Supplies: $100 & Credit Accounts Payable: $100
Explanation:
When we purchase supplies on credit this has the following effect :
Assets : Will Increase thus Debit Supplies with $100
Liabilities : Will Increase thus Credit Accounts Payable with $100
Conclusion :
The correct entry is c. Debit Supplies: $100 & Credit Accounts Payable: $100
The difficulty of the ___________estimate is that the measure of remaining budget changes depending on whether you are currently over budget or currently under budget.
Answer:
The answer is "Budget"
Explanation:
* An essential task of budgeting is to estimate the degree of resources or funds that will be required in the future to help crafted by set up offices, projects, and exercises. Another significant difficulty of budgeting is to recognize and evaluate elective ways that funds could be used all the more successfully to achieve a given set of strategy objectives or goals. The individuals who are liable for budgeting and appropriating funds will never make some easy time with both of these tasks.
* For strategy and program territories in which the processes fundamental spending requests are justifiable and moderately steady, gradual methods frequently get the job done to create sensibly exact evaluations of budget necessities.
* Since the spending process is protracted and spending requests are portrayed by vulnerability, offices think that its difficult to precisely estimate their budget needs when financial plans are drafted.
Becky wants to have $2,000 for spending money on vacation in 2 years. How much does she need to put in the bank today at 5% to have the the $2,000 in 2 years?
Answer:
the amount that need to put in the bank today is $1,814.059
Explanation:
The computation of the amount that need to put in the bank today i.e. present value is shown below
As we know that
Future value = Present value × (1 + rate of interest)^number of years
$2,000 = Present value × (1 + 0.05)^2
$2,000 = Present value × 1.05^2
So, the present value is $1,814.059
hence, the amount that need to put in the bank today is $1,814.059
What would you tell your team are the three most important concepts to keep in mind while completing a marketing research project, and why are they important
Answer:
1. Product Fit
2. Customer Acquisition cost
3. Customer Service and Support.
Explanation:
The three most important concepts to keep in mind while completing a marketing research project are
1. Product Fit: this is the analysis of how well the product to be produced will satisfy the market.
2. Customer Acquisition cost: this is the analysis to determine the expected cost of enticing a new consumer or customer to the products or services to be produced.
3. Customer Service and Suppor: this is the analysis to ensure that the firm can finance the ensuing growth from its marketing enterprises.
Which of the following would be considered a capital expenditure?
A. Paying interest on a construction bond from previous periods
B. Paying city inspection fees for new equipment
C. Making lease payments on assets used during construction
E. Making a mortgage payment for a new building
Answer:
B. Paying city inspection fees for new equipment
Explanation:
Capital expenditure is an expense incurred by the business to maintain its fixed assets with an objective to increase its efficiency. Any additions and improvements in fixed assets is an capital expenditure.
City inspection is required to evaluate the working condition of the asset and any fees paid for it, is a capital expenditure.
Interest payment on construction bonds, lease rental payments of assets and mortgage interest on asset is a liability payable in intervals and all they are operating expense and not considered to be capital expenditure.
Companies that sell their own products and use an intermediary are using a strategy called
O inventory control
O marketing distribution
O dual distribution
O internal distribution
Answer:
dual distribution
Explanation:
A dual distribution strategy involves a manufacturer using two paths to get its products to the intended end-users. It means the manufacturer uses two distribution channels simultaneously to get its products to customers.
When a company is using a dual distribution strategy, one of the ways is the sell directly to customers, and the other path is using a marketing intermediary.
Ordinary shares, RM20 par value (no change during the
year)
RM5,000,000
Preferred 10% stock, RM40 par (no change during the
year)
2,000,000
The net income was RM600,000, and the declared dividends on the ordinary
shares were RM125,000 for the current year. The market price of the ordinary
shares is RM20 per share
Answer:
a. earnings per share is RM1.60.
b. the price-earnings ratio is 12.50.
c. the dividends per share is RM0.50 and the dividend yield is 2.50%.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
The following information was taken from the financial statement of Fine Resources for December 31 of the current year:
Ordinary shares, RM20 par value (no change during the year) was RM5,000,000
Preferred 10% stock, RM40 par (no change during the year) was RM2,000,000
The net income was RM600,000, and the declared dividends on the ordinary shares were RM125,000 for the current year.
The market price of the ordinary shares is RM20 per share.
Required:
Calculate for ordinary shares related to:
a. earnings per share
b. the price-earnings ratio
c. the dividends per share and the dividend yield
The explanation of the answer is now given as follows:
a. earnings per share
This can be calculated as follows:
Earnings per share = (Net income – Preferred dividend) / Number of ordinary shares …………… (1)
Where;
Net income = RM600,000
Preferred dividend = Preferred share value * 10% = RM2,000,000 * 10% = RM200,000
Number of ordinary shares = Total value of ordinary shares / Ordinary share per value = RM5,000,000 / RM20 = 250,000
Substituting the values into equation (1), we have:
Earnings per share = (RM600,000 – RM200,000) / 250,000 = – RM200,000 / 250,000 = RM1.60
b. the price-earnings ratio
This can be calculated as follows:
Price-earnings ratio = Market price per share / Earnings per share = RM20 / RM1.60 = 12.50
c. the dividends per share and the dividend yield
Dividends per share = Ordinary shares dividend declared / Number of ordinary shares = RM125,000 / 250,000 = RM0.50
Dividend yield = Market price per share / Dividends per share = RM0.50 / RM20 = 0.025, or 2.50%
Outstanding stock of the Nash's Corporation included 30000 shares of $5 par common stock and 8000 shares of 5%, $10 par non-cumulative preferred stock. In 2019, Nash's declared and paid dividends of $1500. In 2020, Nash's declared and paid dividends of $15000. How much of the 2020 dividend was distributed to preferred shareholders
Answer:
$4,000
Explanation:
Calculation of Dividend distributed to Preferred Shareholder
= $8,000 * 5% * $10 Preferred shares
= $4,000
Thus, $4,000 is the amount of dividend which was distributed to preferred shareholders
A collaborative selling environment makes the sales pitch more challenging for salespeople.
O True
O False
Answer:
O True
Explanation:
In the case when the selling environment is collaborative so it would make the sales pitch more challenging for the sales people
Here collaborative selling means the collaboration that does not between the sales team members but it would be done between the sales people and the customers
So the given statement is true
Hence, it is not false
Suppose you make $200,000 per year before the 3% raise. Rather than spend more money, you take your additional salary and buy $6,000 of Microsoft stock. Suppose the stock increases in value, and you can sell it next year for $6,600. Therefore, you have a $600 capital gain, or a 10% return on your investment. Suppose the tax rate on capital gains is 50%. After taxes, your capital gain is_______.
Given the scenario from Part 1, which of the following inflation costs have you experienced?
a. shoe-leather costs.
b. tax distortions.
c. wealth redistribution .
d. money illusion.
1. After the 50% taxes on your capital gain, your capital gain reduces to $300.
2. The inflation cost that you have experienced by paying a capital gain tax is c. wealth redistribution.
Wealth redistribution can occur when a part of a taxpayer's earnings is paid in taxes. The inflation costs witnessed in the scenario are not shoe-leather costs, tax distortions, or money illusion.
Data and Calculations:
Earnings per year = $200,000
Increase in earnings = 3%
Investment in Microsoft stock = $6,000
Proceeds from sale of investment = $6,600
Short-term capital gains = $600 ($6,600 - $6,000)
Assumed tax rate on the capital gains = 50%
Capital gain after taxes =$300 ($600 x (1 - 50%)
Thus, your net capital gain (after the deduction of capital gains tax of 50%) is $300.
Learn more: https://brainly.com/question/5719457
Black, Inc. is a calendar-year corporation whose financial statements for 2014 and 2015 included errors as follows: PHOTO
Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2014, or at December 31, 2015. Ignoring income taxes, by how much should Black's retained earnings be retroactively adjusted at January 1, 2016?
a. $154,000 increase
b. $46,000 increase
c. $19,000 decrease
d. $8,000 increase
Answer: a. $154,000 increase
Explanation:
An overstated closing inventory overstates Income as it understates Cost of Goods sold.
An overstated Depreciation understates Income as it overstates expenses.
2014 Income Overstatement (understatement) = 162,000 - 135,000
= $27,000
Net income overstated by $27,000 in 2014
An understated closing inventory understates Income as it overstates Cost of Goods sold.
An understated Depreciation overstates Income as it understates expenses.
2015 income overstatement (understatement) = 45,000 - 64,000
= -$19,000
Income understated in 2015 by $19,000
2015 Beginning inventory was $162,000 overstated which means income was understated by $162,000 in 2015.
Income should therefore be increased (decreased): Understatements - Overstatements
= 162,000 + 19,000 - 27,000
= $154,000
For a present sum of $840,000, determine the annual worth (in then-current dollars) in years 1 through 6 if the market interest rate is 10% per year and the inflation rate is 3% per year. The annual worth is:________ $ .
Answer:
The annual worth is:________
$667,380
Explanation:
Present value of investment = $840,000
Number of years = 6
Market interest rate = 10%
Inflation rate = 3%
Real interest rate = 7%
PV Annuity factor = 4.767
Total FV of annuity = $840,000 * 4.767 = $4,004,280
Annual worth = $4,004,280/6 - $667,380
The annual worth of the investment of $840,000 will be $667,380 based on the market-adjusted interest rate of 7% (10 - 3).
Dearborn owns a department store that has a $45,700 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Doubtful Accounts. 1. Determine the net realizable value of the accounts receivable. 2. Assume that an account receivable in the amount of $420 was written off using the allowance method. Determine the net realizable value of the accounts receivable after the write-off.
Answer:
1. realizable value = accounts receivable - allowance for doubtful accounts = $45,700 - $3,000 = $42,700
2. the journal entry used to write off the account is:
Dr Allowance for doubtful accounts 420
Cr Accounts receivable 420
Since both accounts receivable and the allowance account are decreased in the same amount, the net realizable value doesn't change (still is $42,700).
ECC Corp. will pay annual dividends of $20 per share for the next 5 years. At the end of year 6, ECC will increase the dividends by 1% per year forever. The required rate of return on this stock is 6%. What is the price of the stock today?
Answer:
$386.14
Explanation:
The computation of the price of the stock today is as follows;
But before that following calculations need to be done
Year 6 dividend = $20 × (1 + 1%)
= $20 × (1 + 0.01)
= 20.2
Now
Value at year 5 = Dividend at year 6 ÷ (required rate - growth rate )
= $20.2 ÷ (0.06 - 0.01 )
= $20.2 ÷ 0.05
= 404
Now
Price of stock = Annuity × [1 - 1 ÷ (1 + r)^n] ÷ r + FV ÷ (1 + r)^n
= $20 × [1 - 1 ÷ (1 + 0.06)^5] ÷ 0.06 + 404 ÷ (1 + 0.06)^5
= $20 × [1 - 0.747258] ÷ 0.06 + 301.892302
= $20 × 4.212367 + 301.892302
= $386.14
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Direct labor-hours per unit 0.20 0.25
Number of units produced 10,000 40,000
These products are customized to some degree for specific customers.
Required:
1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products.(Do not round intermediate calculation. Round your final answers to 2 decimal places.)
Mercon Wurcon
Unit product cost $ $
2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:
Mercon Wurcon Total
Engineering design time (in hours) 4,000 4,000 8,000
Compute the unit product costs for the two products using the proposed ABC system.(Do not round intermediate calculation. Round your final answers to 2 decimal places.)
Mercon Wurcon
Unit product cost $ $
Answer:
Part 1
Computation of the unit product costs for the two products
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Overheads $5.60 $7.00
Unit product cost $18.60 $18.75
Calculation of overhead rate
M = 0.20 × 10,000 = 2,000
W = 0.25 × 40,000 = 10,000
Total hours = 12,000
Rate = $336,000 ÷ 12,000
= $28.00
Part 2
Overhead rate for direct labor-hours
Rate = $168,000 ÷ 12,000
= $14.00
Overhead rate for engineering design time
Rate = $168,000 ÷ 8,000
= $21.00
Computation of the unit product costs for the two products
Mercon Wurcon
Direct materials cost per unit $ 10.00 $ 8.00
Direct labor cost per unit $ 3.00 $ 3.75
Overheads - labor hrs $2.80 $3.50
Overheads - eng time $8.40 $2.10
Unit product cost $24.20 $17.35
Identify at least two ways in which the Apple corporate income statement differs from a partnership income statement.
Answer:
1. Salary attributable to a Partner
2. Interest on Capital
3. Share of Residual Profit
Explanation:
The Financial Statements for all businesses are prepared much in the same way in most respects. It is only after calculation of the Profit for the Year that a change may take place.
The Partnership should show a share of profit in a special account known as the Appropriation Account. Here the heading will be Salary attributable to a Partner, Interest on Capital and Share of residual Profit
The above items are only seem in the partnership income statement and not in a corporate income statement.
Suppose the U.S. yield curve is flat at 4% and the euro yield curve is flat at 3%. The current exchange rate is $1.50 per euro. What will be the swap rate on an agreement to exchange currency over a 3-year period
Answer:
$4.24287 million per year
Explanation:
Missing question: The swap will call for the exchange of 1 million euros for a given number of dollars in each year.
For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows
Forward exchange rate * $1 million error = Dollar to be received
Year 1 = 1.50*(1.04/1.03) * 1 million euros
Year 1 = 1.514563106796117 * 1 million euros
Year 1 = $1.5145 million
Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros
Year 2 = 1.529267602978604 * 1 million euros
Year 2 = $1.5293 million
Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros
Year 3 = $1.5441 million
The number of dollars each year is determined by computing the present value:
= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3
= 1.45625 + 1.41392 + 1.3727
= $4.24287 million per year