A company has improved its production process. Under the old process, 16 workers could produce 4,892 units per hours and the materials cost $53 per unit of output. Workers are paid $15 per hour and the finished product is sold for $112 per unit. After the improvement, materials costs have been reduced by $13 per unit of output and it now takes 2 fewer workers to make the same amount of output. What is the percentage change in multifactor productivity? (do not use a % sign, e.g. enter 50% as .5)
Answers
Answer:
32.5%
Explanation:
multi-factor productivity = total output / (labor + materials + overhead costs)
old multi-factor productivity = $547,904 / ($240 + $259,276 + $0) = 2.111
new multi-factor productivity = $547,904 / ($210 + $195,680 + $0) = 2.797
the percentage change in multi-factor productivity = [(2.797 - 2.111) / 2.111] x 100 = 32.5%
Related Questions
The total overhead variance is the difference between actual overhead costs and overhead costs applied to work done.a) trueb) false
For fiscal year 2016, Nancy calculated the following costs for Choco-rama’s manufacturing process. Beginning work in process inventory, $22,655 Ending work in process inventory, $28,207 Beginning raw materials inventory, $42,385 Ending raw materials inventory, $44,299 Raw materials purchased, $387,521 Office supplies purchased and used, $15,274 388,400 man-hours of factory labor incurred at $23.60/hour 14,200 man-hours of factory oversight labor incurred at $28.75/hour Administrative salaries, $392,000 Factory utilities, $18,500 Factory depreciation, $9,700 Factory repairs, $15,400
Which of the following is not an important question to ask when developing a data collection plan?a. Who will be responsible for collecting the data?b. What is the source of the data?c. What is the reason for collecting the data?d. Is it possible to make decisions without collecting data?
Louvers, Inc., accepted a $15,000, 180-day, 10 percent note from a customer on May 31. Louvers plans to prepare financial statements as of June 30, the end of its fiscal year. Prepare the necessary June 30 adjusting entry for Louvers by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answers
Answer:
The correct answer is letter "A": The convenience yield is always positive or zero.
Explanation:
The convenience yield reflects the premium of possessing an asset instead of one of its derivates or contracts. This situation arises in front of inverted markets, where holding the asset itself may bring more profits than purchasing a derivate of the same asset.
The convenience yield tends to be positive or zero because the prices of assets cannot fall below zero. In other words, they are not negative.
Final answer:
convenience yield is a benefit of owning a physical asset over a futures contract. The yield is typically positive or zero. In the context of investment and consumption assets, the yield assumptions may vary.
Explanation:
The question is focusing on the concept of convenience yield in finance and its relationship with investment and consumption assets. Convenience yield is the non-monetary advantage or benefit that a holder gets from owning a physical good or an asset over a futures contract on that asset. If you decide to hold an asset as opposed to a futures contract on the asset, it means because the net benefits – that is the benefits from holding the asset, minus the benefits of holding the contract – must be nonzero. Therefore, option A is correct: The convenience yield is always positive or zero.
Moreover, for an investment asset, which is purchased with the hope that it will generate income or appreciate in value, the convenience yield is generally assumed to be zero because holding it delivers no utility beyond the financial returns it provides. So option B is not always true. The convenience yield being negative for a consumption asset, an asset purchased for current use, is also unlikely (option C is incorrect). Such a negative value would suggest that owning the asset is somehow disadvantageous - which contradicts the reason for purchasing a consumption asset. Lastly, the convenience yield does not measure the average return earned on futures contracts, therefore option D is also incorrect.
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Answers
Answer:
beta= 1.5
Explanation:
The common stock of flavorful tea has an expected return of 19.65%
The return on the market is 14.5%
The risk-free rate is 4.2%
Therefore, the beta of the stock can be calculated as follows
Required return= Risk free rate+beta(market rate-risk free rate)
19.65%= 4.2%+beta(14.5%-4.2%)
19.65%= 4.2% + 14.5beta-4.2beta
19.65%= 4.2% + 10.3beta
19.65%-4.2%= 10.3beta
15.45%= 10.3beta
beta= 15.45/10.3
beta= 1.5
Hence the beta of this stock is 1.5
Final answer:
The beta of Flavorful Teas' common stock can be determined using the Capital Asset Pricing Model (CAPM). The beta, which measures a stock's volatility in comparison to the market, is calculated using the expected return of the stock, the return of the market, and the risk-free rate.
Explanation:
The beta of a stock is a measure of its volatility in comparison to the market as a whole, represented here by the return on the market. Beta is calculated using the Capital Asset Pricing Model (CAPM), which describes the relationship between the expected return of a security and its risk. We can calculate beta using the formula: Beta = (Expected Return of the Stock - Risk-Free Rate of Return) / (Market Rate of Return - Risk-Free Rate of Return).
So in this case, the expected return on Flavorful Teas is 19.65 percent, the market return is 14.5 percent, and the risk-free rate is 4.2 percent. Plugging these values into the formula gives: Beta = (19.65 - 4.2) / (14.5 - 4.2). That will provide the value for the beta of Flavorful Teas' common stock.
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Answers
Answer:
$22,245.44
Explanation:
For computing the future value we need to apply the future value which is to be shown in the attachment below:
Provided that,
Present value = $0
Rate of interest = 8%
NPER = 18 years
PMT = $550
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after applying the above formula, the future value is $22,245.44
Direct material purchased during April 250
Work-In-Process Inventory, April 1 300
Direct labor costs incurred 400
Manufacturing overhead costs 350
Direct materials used in production 225
Answers
Answer:
$1,100
Explanation:
Computation for the Work-in-Process transferred to the finished goods warehouse on April 30
Work-In-Process Inventory, April 1 300
Direct materials used in production 225
Direct labor costs incurred 400
Manufacturing overhead costs 350
Less Work-In-Process Inventory, April 30 ($175)
Work-in-Process transferred to the finished goods warehouse $1,100
Therefore the Work-in-Process transferred to the finished goods warehouse on April 30 will be $1,100
B) Optimal price increases, optimal quantity remains unchanged.
C) Optimal price increases, optimal quantity decreases.
D) Optimal price and quantity decline.
Answers
As the marginal external cost curve rises, it suggest that marginal returns are falling. Therefore, Optimal price increases, optimal quantity decreases.
So, the correct option is C.
When one factor of production increase while the others remain constant, productivity decreases. This is known as diminishing marginal return.
The decline in productivity levels in this scenario is a result of the marginal external cost of pollutants growing with the quantity of plastics, resulting in optimal price increase and optimal quantity decrease.
To know more about, Marginal External cost curve, refer to the link:
Answer:
The answer is option C) What happens to the socially optimal level of output and market price if the marginal external cost curve shifts upward is Optimal price increase and optimal quantity decrease.
Explanation:
when marginal external cost curve shifts upward, it indicates diminishing marginal returns.
A diminishing marginal return occurs when increases in one factor of production while the others remain constant results in increasingly reduced productivity.
In this scenario, the decrease in productivity levels is a response to the marginal external cost of the pollutants increasing with the quantity of plastics thereby causing optimal price increase and optimal quantity decrease.
Answers
Answer:
-2.4%
Explanation:
The GDP per person of the nation of Freedonia for the current and last year, respectively, are:
The growth rate (R) between this year and last year is given by:
The growth rate of real GDP per person was -2.4%.