3. Individual Problems 8-3 Suppose that due to the outbreak of a new flu, known as H14N9, the demand for hand sanitizer has tripled. Smith & Smith, a company that produces and sells hand sanitizer, should production of its hand sanitizer. Suppose there is no vaccine for H14N9, and that a vaccine will not be developed for several decades. True or False: Smith & Smith should increase its productive capacity by leasing new plant and equipment.

Answers

Answer 1
Answer:

Answer:

True

Explanation:

As for the provided information, the flu is new in market and has serious issues involved, and now since no remedy or cure is possible and will not be possible even in near future,

The hand sanitizer will help as a preventive action from getting infected to the Flu. Thus, people will buy the sanitizer at huge level.

Thereby, the demand for such product will increase in market in huge, and accordingly even if the company has to increase production capacity through lease it shall do so.

As with huge turnover break even will be realized and there will be profits.


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Shaan and Anita currently insure their cars with separate companies, paying $850 and $675 a year. If they insure both cars with the same company, they would save 10 percent on their annual premiums. What would be the future value of the annual savings over 8 years based on an annual interest rate of 8 percent
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information or the year is as follows:Activity Cost Driver Amount of DriverMaterials handling $72,000 Number of moves 3,000Engineering 165,000 Number of change orders 10,000Other overhead 280,000 Direct labor hours 50,000Heitger worked on four jobs in July. Data are as follows:Job 13-43 Job 13-44 Job 13-45 Job 13-46Beginning balance $20,300 $19,800 $2,300 $0Direct materials $6,500 $8,900 $12,700 $9,800Direct labor cost $18,000 $20,000 $32,000 $2,400Number of moves 44 52 29 5Number of change orders 30 40 20 20Direct labor hours 900 1,000 1,600 120By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.Required:1. Calculate the activity rates for each of the three overhead activities.2. Prepare job-order cost sheets for each job showing all costs through July 31.3. Calculate the balance in Work in Process on July 31.4. Calculate the cost of goods sold for July.5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
At December 31, 2017 the following balances existed on the books of Vaughn Manufacturing: Bonds Payable $5990000 Discount on Bonds Payable 850000 Interest Payable 155000 If the bonds are retired on January 1, 2018, at 102, what will Vaughn report as a loss on redemption? $969800 $1124800 $814800 $599000
Toys "R" Us has decreased its receivable turnover over the last three years: which of the following may be a possible cause of this decrease? A) the company has been more selective in choosing reliable customers. B) salesmen have granted customers an extension of credit terms. C) the accounting department has increased the allowance for doubtful accounts. D) all of the above are correct
Assume the carrying capacity of the earth is 13 billion. Use the 1960s peak annual growth rate of 2.1​% and population of 3 billion to predict the base growth rate and current growth rate with a logistic model. Assume a current population of 6.8 billion. How does the predicted growth rate compare to the actual growth rate of about 1.2​% per​ year?

The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as

Answers

Answer: template method

Explanation:

The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as template method.

It should be noted that estimating time and cost are vital because it helps schedule work, develop needs of cash flow and show progress of a project.

Final answer:

The bottom-up approach for estimating costs and times using information from similar past projects is called analogous estimating. This method, used in project management, relies on previous experience and expert judgment.

Explanation:

The method you're referring to is the analogous estimating. In project management, analogous estimating is a technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project. This bottom-up approach is most reliable when the previous activities are similar in fact and not just in appearance to the current activity. This technique relies heavily on experience, expert judgment, and the project history to predict costs and timelines for a new project.

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Dana has a portfolio of 8 securities, each with a market value of $5,000. The current beta of the portfolio is 1.28 and the beta of the riskiest security is 1.75. Dana wishes to reduce her portfolio beta to 1.15 by selling the riskiest security and replacing it with another security with a lower beta. What must be the beta of the replacement security? a. 1.21 b. 0.91 c. 0.73 d. 1.62

Answers

Answer:

Option c. 0.73

Explanation:

Data provided in the question:

Market value of securities = $5,000

Current beta of the portfolio = 1.28

Beta of the riskiest security = 1.75

Required beta = 1.15

Now,

let the beta of the other security be 'x'

Portfolio beta = weighted average of individual betas in the portfolio

or

1.28 × 8 × $5000 = [  x × (8 - 1) × $5000 ] + [ 1.75 × $5000  ]

or

$51,200 = $35,000x + $8750

or

$35,000x = $42,450

or

x = 1.21

Thus,

If she wishes to reduce the beta to 1.15, by replacing the riskiest security,

let the beta of the replacement security be 'y'

Therefore,

1.15 × 8 × $5000 = [ 1.21 × (8 - 1 ) × $5000 ] + [ y × $5000  ]

or

$46,000 = $42,350 + $5,000y

or

$5,000y = $3,650

or

y = 0.73

Hence,

Option c. 0.73

Bedeker, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

The required rate of return is 7.20%

Explanation:

The price of a share that pays a particular dividend amount in perpetuity is given by the below formula:

price of share=dividend/required rate of return

price of share is $91.00 per share

dividend payable in perpetuity is $6.55

required rate of return is unknown

$91=$6.55/required rate of return

required rate of return =$6.55/$91

                                       =7.20%

to confirm the required of return,I divided the by the required rate of return as shown below:

6.55/0.0.72=$90.97 .approximately $91

That is a way to validate the computed required rate of return

In the future, electrical power may come from quantum nucleonics, a form of nuclear power that produces no residual radiation. The ability to use this form of power will require equipment adaptations, but it will solve the world’s need for clean and efficient power. Companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a(n) _____ responsibility level. Group of answer choices

Answers

Answer: legal

Explanation:

The Environmental Protection Agency (EPA) was established in so that both human and the environmental health can be protected.

Based on the information given in the question, the companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a legal responsibility level. It should be noted that the law will have to be obeyed by the business at this legal responsibility level.

Fuji film sponsored a beach volleyball tournament in February in Laguna Beach, CA. They paid over $300,000 to be the official sponsor of the tournament and were extremely upset when Kodak, who was not an official sponsor, showed up right outside the venue and began marketing Kodak products. What made it even worse was that Kodak used unconventional marketing techniques that really caught people's attention. A group of Kodak employees painted their entire bodies yellow and wore Kodak shorts. Then, they offered people Kodak digital cameras and told them they could win a free Kodak camera if they took the goofiest picture. Kodak was using which two marketing techniques?

Answers

Answer:

Kodak is using ambush marketing and guerrilla marketing.

Explanation:

Ambush marketing is where a business tries to associate itself with an event that is officially sponsored by a rival business. The beach volleyball tournament has Fuji film as its official sponsor. However, a direct competitor, Kodak, begins marketing its products outside the venue, thus benefiting from the event even though Fuji film paid a huge amount in its sponsorship. This is a classic example of ambush marketing.

Guerrilla marketing involves the use of unconventional or unusual methods to promote a product. Kodak adopts this technique by having its employees paint their entire bodies yellow to draw attention. Moreover, Kodak offers rewards to people for taking the goofiest pictures, again employing an unconventional technique to promote Kodak cameras.

Final answer:

Kodak used guerilla marketing and viral marketing techniques to promote their products outside the Fuji film-sponsored beach volleyball tournament.

Explanation:

The two marketing techniques used by Kodak in this scenario are guerilla marketing and viral marketing. Guerilla marketing involves using unconventional and creative strategies to promote a brand or product in unexpected ways, often targeting specific locations or events. In this case, Kodak painted their bodies yellow and offered people the chance to win a free Kodak camera by taking goofy pictures, which caught people's attention and created a buzz.

Viral marketing, on the other hand, relies on creating content that spreads rapidly and organically through online platforms and social media. By offering people the opportunity to take funny pictures and potentially win a prize, Kodak encouraged people to share their experiences on social media, generating buzz and increasing brand awareness.

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The following are budgeted data:Sales (units ) Production (units)April 15,000 18,000May 20,000 19,000June 18,000 16,000Two pounds of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs.Purchases of raw materials for May should be:a.36,800 poundsb.39,200 poundsc.52,000 poundsd.38,000 pounds

Answers

Answer:

Total= 36,800 pounds

Explanation:

Giving the following information:

Sales (units ) - Production (units):

May: 20,000 - 19,000

June: 18,000 - 16,000

Two pounds of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs.

Purchases for May= production for the month + desired ending inventory - beginning inventory

Production= 19,000*2 pounds= 38,000 pounds

Desired ending inventory= (16,000*2)*0.2= 6,400 pounds

Beginning inventory= (38,000*0.2)= (7,600)

Total= 36,800 pounds

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