BUSINESS COLLEGE

A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation EMOD is the estimated price of this bond at an interest rate of 7.0% using the first-order modified approximation Calculate EC EMOD A. 91 B. 102 C. 116 D. 127 E. 143

Answers

Answer 1
Answer:

Answer:

Option E (143) is the appropriate solution.

Explanation:

According to the question,

The modified duration will be:

= (Macaulay \ duration)/((1+yield))

= 8* 1.064

= 8.512

The percentage change in price will be:

= -0.6* 8 \ percent

= -4.8 (%)

Now,

The EMOD will be:

= 112955* (1-4.8 \ percent)

= 107533.2 ($)

Or,

The EMAC will be:

= 112955* ((1.064)/(1.07) )^(8.512)

= 107675.7 ($)

Hence,

⇒ EMOD-EMAC=107533.2-107675.7

                                  =-142.5

⇒ EMAC-EMOD=143

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A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Now refer to the Income Statement in Chester's Annual Report. The direct labor costs for Chester were $32,680. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the productivity index for Chester that led to such savings?

Answers

Answer: 161.1%

Explanation:

Given that,

Direct labor costs for Chester = $32,680

Labor costs could have been $20,000 higher

Productivity index shows the ratio between the labor costs with improvements and labor costs without improvement in production.

Productivity Index = (Labor\ cost\ without\ improvement)/(Labor\ cost\ with\ improvement)*100

                              = (32,680+20,000)/(32,680)*100

                              = 161.1%

Final answer:

The productivity index for Chester, which measures the savings in labor costs due to productivity improvements, is approximately 62.06%. This suggests that, without the investments in training, Chester's labor costs would have been about 38% higher.

Explanation:

In order to calculate the productivity index for Chester, we need to understand that the productivity index essentially measures the savings in labor costs resulting from production improvements, expressed as a percentage. In this particular case, Chester was able to save $20,000 in labor costs due to investments in productivity-enhancing training.

The original direct labor costs for Chester was $32,680. Had Chester not made any productivity improvements, the labor costs would have been $32,680 plus an additional $20,000, for a total of $52,680. Therefore, the productivity index is calculated by dividing the original labor cost by what the labor cost would have been without the productivity improvements, and multiplying by 100, as follows: ($32,680 / $52,680) * 100. This equation gives a productivity index of approximately 62.06%. This means that Chester's labor costs would have been approximately 38% higher without the productivity improvements.

Learn more about Productivity Index here:

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The middle of supply chain information systems (SCIS) framework is which of the following?a. Enterprise resource planning.
b. Enterprise planning and monitoring.
c. Enterprise integration and administration.
d. Financial operations and reporting.

Answers

Answer:

The correct answer is letter "B": Enterprise planning and monitoring.

Explanation:

Information Systems impact the Supply Chain at planning and monitoring stages. Information Systems allow managers to analyze information about the flow of the supply chain and allows them to spot where improvement is necessary. Besides, it allows tracking production to maximize it. Decisions can be made upon the feed Information Systems provide.

Markowis Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 19,962 $39,924 August 35,488 53,232 September 39,924 60,995 October 24,398 42,142 November 44,360 82,620 December 42,142 68,758 Compute the variable cost per unit using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25.) Variable cost per unit $ Compute the fixed cost elements using the high-low method. Fixed costs $

Answers

Answer:

C = 1.75Q + 4,990

variable 1.75

fixed component 4,990

Explanation:

High-Low method:

we subtract the highest level of activity with the lowest one:

\left[\begin{array}{ccc}High&44,360&82,620\nLow&19,962&39,924\nDifference&24,398&42,696\n\end{array}\right]

24,398 units generates 42,696 cost

with this information we can solve for variable cost.

42,696 / 24,398 = 1.75

Now we calcualte the fixed cost:

TC = variable x Q + fixed cost

82,620 = 1.75 (44,360) + fixed cost

82,620 - 77630 = 4990

the formula will be:

C = 1.75Q + 4,990

Answer: variable 1.75

fixed component 4,990

Explanation:  subtract the highest level of activity from the lowest one

44,360-19,962=24,398

82,620-39,924=42,696

then do 42,696 / 24,398 = 1.75

Now for fixed cost:

82,620 = 1.75 (44,360)

82,620 - 77630 = 4990

If we accept "consumer satisfaction" as the objective of our macro-marketing system, this means that: consumer educators should choose what products should be produced. "home economists" will be the best judges of what should be produced. each consumer should decide how best to satisfy his or her own wants. not every consumer should be allowed to decide his or her own wants. government planners should choose the kinds of products to be produced.

Answers

If consumer satisfaction is to be assumed as the objective of macro marketing system , in such a case each consumer should decide how to best satisfy his or her own wants.

Consumer wants are ever-upgrading and unlimited

Customer satisfaction is a niche concept of deriving satisfaction from consumption of certain goods and services .

Such goods and services can be subjective and may change due to external factors acting upon the situation.

Satisfaction is directly related to utility a person derives from its consumption .

To explain this with an example we may say that, a drunkard derives utmost satisfaction by consuming alcohol even after knowing the ill effects of the same and wont get much satisfaction in consuming orange juice.

Summing up above points we can say that if consumer satisfaction is to be taken as the objective for marketing purposes the correct option is C Each consumer should get to decide how best to satisfy his or her wants .

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If we accept "consumer satisfaction" as the objective of our MACRO-marketing system, this means that each consumer should decide how best to satisfy his or her own wants. In marketing, there are 4 Ps which are product, price, plan and promotion. Regarding MACRO-marketing, this is the study on how marketing (the 4 Ps) impacts our economy and society. Since each consumer can decide what is best for them, experts then see what each consumer desires and tries to make items appeal to them. 

The marginal benefit from consuming another unit of a good: equals the total benefit obtained from the consumption of all prior units. equals the increase in total benefits from consuming the unit. must be less than the marginal cost or the unit will not be consumed. must equal the marginal cost or the unit will not be consumed.

Answers

Answer:

Equals the increase in total benefits from consuming the unit.

Explanation:

This is defined as a maximum amount a consumer is willing to pay for an additional good or service.

It is also the additional satisfaction or utility that consumer receives when the additional good or service is purchased. The marginal benefit for a consumer tends to decreases as consumption of the good or service increases.

In the business world, the marginal benefit for producers is often referred to as marginal revenue.

10-2. Why is the formal training of workers so important to most employers?

Answers

Answer: Formal training is an integral part of employee development. It helps employee to get introduced to the nature of the job.

a) It makes clear to the workers what the employer needs, without which workers may not understand which work should be done on priority basis.

b) It eliminates waste of resources like time, money, etc. If a work is done without any formal training, such work might not be in desired standard; this thing is the waste of money as well as time. Therefore, in order to prevent it the formal training is required.

In rudimentary terms, every firm depends on its workforce to a great extent.  After all, it is the people that run the operations of the company.  

The employer that provide training to their employees see the following benefits:

Greater productivity,better cooperation,continuous growth of employees

and enhanced job satisfaction.
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