BUSINESS COLLEGE

According to the life-cycle and permanent-income hypotheses, if future income rises permanently, current consumption:

Answers

Answer 1
Answer:

Answer:

b.  rises.

Explanation:

In the case when the future income increased on permanently basis so as per the life cycle and the hypothesis of permanent income the current income rises because in this case the people rises their level of consumption patterns over their lifecycle

Therefore in the given situation, the rises is the answer and the same is to be considered

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Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 3.60 Direct labor 10.00 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 9.00 Total cost per part $ 25.00 An outside supplier has offered to sell 30,000 units of part S-6 each year to Han Products for $21 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $80,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier’s offer
Rist Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours. The Corporation actually worked 105,000 machine-hours and incurred $270,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? (Round your intermediate calculations to 2 decimal places.)
Amy sets herself a goal and says. "I'd like to lose 10 pounds." Which of the following criteria of the SMART system is missing in Amy's goal?a. Specificityb. time framec. measurabilityd. realism
Garfield Industries is expanding its operations throughout the Southeast United States. Garfield anticipates that the expansion will increase sales by $1,000,000, and increase the costs of goods sold by $700,000. Depreciation expenses will rise by $50,000 and interest expense will increase by $150,000. The company’s tax rate will remain at 40 percent. If the company’s forecast is correct, how much will net income increase or decrease, as a result of the expansion?

Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable costs $250,000, and fixed costs $94,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 56% of sales. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income

Answers

Answer and Explanation:

The computation is shown below:

1.  

Selling Price = Sales ÷  Units Sold

Current Selling Price = $385,000 ÷  5500

= $70

Now

Expected Selling Price per unit = $70 + ($70× 10%)

= $77

Now

Expected Sales = 5500 × $77

= $423,500

Now

Net Income = Sales - Variable Cost - Fixed Cost

= $423,500 - $250,000 - $94,000  

2.  

Sales = $385000

Variable cost = $385,000 × 56% = $215,600

Sales                     $385,000

Less: variable cost -$215,600

Contribution Margin $169,400

Les: fixed cost          -$94,000

Net Income               $75,400

As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.

Comparing two scenarios for Carla Vista Company: one of increasing the selling price by 10%, and the other of reducing the variable costs to 56% of sales, the former scenario of increasing the selling price provides a higher net income and is the better strategy.

The question asks us to calculate the net income under two different scenarios for Carla Vista Company, and then determine which option produces the higher net income.

To do this, we first need to understand the company's current situation.

Its current net income is calculated as follows: Sales ($385,000) - Variable Costs ($250,000) - Fixed Costs ($94,000) = $41,000.

Under the first alternative, management plans to increase the selling price by 10% without any changes in total variable costs or units sold.

So the new sales figure will be $385,000 + 10% of $385,000 = $423,500.

The net income then becomes: New Sales ($423,500) - Variable Costs ($250,000) - Fixed Costs ($94,000) = $79,500.

Under the second alternative, management plans to reduce variable costs to 56% of sales.

So, the new variable costs will be 56% of $385,000 = $215,600.

The net income then becomes: Sales ($385,000) - New Variable Costs ($215,600) - Fixed Costs ($94,000) = $75,400.

Comparing the two alternatives, we see that the first alternative, increasing the selling price by 10%, gives a higher net income and should thus be the advisable course of action.

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The process for converting present values into future values is called compounding. This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? A. The interest rate (I) that could be earned by deposited funds
B. The present value (PV) of the amount deposited
C. The duration of the deposit (N)
D. The trend between the present and future values of an investment

Answers

Answer:

D. The trend between the present and future values of an investment

Explanation:

The future value of an investment formula is:

FV = PV (1 + i)^n

Where:

  • FV = Future Value of the investment
  • PV = Present Value of the investment
  • i = interest rate
  • n = number of compounding periods or duration of the deposit

We can determine that the trend between the present and future values of an investment is not needed to find the future value of an investment, because such trend is not part of the future value of an investment formula, while all the other variables are part of it.

Imagine you are reviewing a business plan. In which section of the business plan would you expect to find the answers to the following questions?Question Financial Statements Marketing & Sales Management Service or Product Line
How much money will the owners invest in the business start-up?
How will the salespeople for this business be compensated?
What are the unique features of this business’s merchandise?

Answers

Answer:

Hence,

The money which the owners invest in the business start-up is by Financial statements.

The salespeople for this business be compensated is by Marketing & sales management.

The unique features of this business’s merchandise are by Service or product line.

Explanation:

Financial statements show how much money will the owners invest in the business start-up.

Marketing & sales management shows how will the salespeople for this business be compensated.

Service or product line shows What are the unique features of this business’s merchandise

In a business plan, the 'Financial Statements' section provides information about the owner's start-up investment, compensation of salespeople is detailed in the 'Marketing & Sales Management' section, and unique merchandise features could be found in the 'Service or Product Line' section.

In a business plan, you would typically find the answers to your questions in the following sections:

  • The amount of money that the owners will invest in the business start-up would typically be found in the Financial Statements section. This part of the business plan provides a detailed view of the business’s financial forecasts, including equity investment from owners.
  • Information about how salespeople for the business will be compensated can be found in the Marketing & Sales Management section. This usually outlines the business's sales strategies, including employee compensation models.
  • The unique features of a business's merchandise would be detailed in the Service or Product Line section. This illustrates what the business plans to sell, highlighting unique selling points and differentiators that make its products or services unique.

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In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead costs, $680,000, and direct materials costs, $400,000. At year-end 2017, the company’s records show that actual overhead costs for the year are $897,200. Actual direct material cost had been assigned to jobs as follows.Jobs completed and sold $ 420,000 Jobs in finished goods inventory 76,000 Jobs in work in process inventory 53,000 Total actual direct materials cost $ 549,000 Determine the predetermined overhead rate for 2017.

Answers

Answer:

POAR= 170% of the direct material cost.

Explanation:

Explanation:

The predetermined overhead absorption rate (POAR: The overhead absorption is a rate which is used to charge overheads to production units. Note that this rate is computed using estimated figures

The rate is computed as follows:

Predetermined overhead absorption rate

POAR

= (Budgeted overhead for the period/Budgeted direct material cost)× 100

= $680,000/400,00 ×  100

= 170% of the direct material cost.

Following are interest rates (annual percentage rates) for a 30-year-fixed-rate mortgage from a sample of lenders in a certain city. It is reasonable to assume that the population is approximately normal. 4.327, 4.461, 4.547, 4.662 , 4.365, 4.526 , 4.842 Find the upper bound of the 99% confidence interval for the mean rate.

Answers

Hey There!:

Sample Mean = 4.4823

SD = 0.1859

Sample Size (n) = 7

Standard Error (SE) = SD/root(n) = 0.0703

alpha (a) = 1-0.99 = 0.01

t(a/2, n-1 ) =  3.7074

Margin of Error (ME) =  t(a/2,n-1)x SE = 0.2606

99% confidence interval is given by:

Sample Mean +/- (Margin of Error)

4.4823 +/- 0.2606 = (4.222 , 4.743)

Hope this helps!

What are the threats for online shopping​

Answers

Saving time , fuel , car depreciation by not driving to a store
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