Investment Return. Thomas can invest $10,000 by purchasing a one-yeor T-6il for $9,604, o he can place the $10,000 in a twetve-month cO paying 4.73%. Which investment wil provide a higher refum? In addison to retum, what else should Thomas consider when making his irvestment decision? The cetuen on the T-bill is 6. (Reund to tivo docimal places.)
Answers
The T-bill investment will provide a higher return. The return on the T-bill is 6%, which is greater than the 4.73% offered by the certificate of deposit.
Thomas should also consider the risks associated with each investment, liquidity needs, and his overall investment goals before making a decision. The T-bill investment will provide a higher return because the T-bill has an annual yield of 6%, while the certificate of deposit only offers a return of 4.73%. Therefore, Thomas would earn more money by investing in the T-bill. However, it's important for Thomas to consider other factors before making his investment decision. One crucial factor is the risk associated with each investment. T-bills are considered low-risk investments as they are backed by the government, whereas the certificate of deposit may carry some level of risk depending on the issuer. Additionally, Thomas should assess his liquidity needs. T-bills are short-term investments, typically maturing in less than a year, which means Thomas would have relatively quick access to his funds. On the other hand, the certificate of deposit has a longer maturity period of twelve months, so Thomas would need to wait before accessing his money. Lastly, Thomas should consider his overall investment goals. If he has a specific financial goal or a particular time horizon, he should align his investment choice accordingly. Evaluating these factors in conjunction with the return on investment will help Thomas make a more informed decision that suits his individual circumstances and objectives.
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Related Questions
The product is shown without a decimal point. Where should the decimal point be placed?
3.12 × 4 = 1248
5th grade work
Answers
Answer:
Answer:B Place the decimal point after 2
Explanation:
All you have to do is multiply 3.12 times 4
Utilize your knowledge of household production theory to indicate the following:
a. The expected effect of a wage increase on the wife’s labour supply.
b. The expected effect, on the demand for children, of the increase in the wage of a wife.
c. Why the substitution effect of the labour supply may be larger for women than men.
d. The effect of one spouse’s labour supply, of his or her spouse’s disability, where the spouse requires home (not institutional) care.
e. The effect on the same spouse’s labour supply, as in (d), if the government (or private insurance) provided financial compensation to the family.
Answers
a) According to household production theory, when there is an increase in wages, the labour supply of a wife is expected to rise as the opportunity cost of staying at home increases.
b) When the wage of a wife increases, the demand for children is expected to decrease because the time and effort spent on childbearing may instead be devoted to income generation, which could lead to a higher living standard for the household.
c) In a household, the substitution effect of labor supply may be greater for women than men because household production theory implies that women's labour is more likely to be a complementary good to the husband's market labor. Women are more likely to have flexible time schedules and work fewer hours. Therefore, they can take over some household chores, such as cleaning, food preparation, and caring for the children, freeing up more time for their husbands to work.
d) If a spouse needs home care, the effect on his or her spouse's labor supply may vary depending on whether the household views home care as a public or private good. If home care is seen as a public good, the supply of labour by the other spouse may be unaffected. If home care is viewed as a private good, the supply of labor by the other spouse may fall as they devote more time to providing home care.
e) The effect on the same spouse’s labor supply, as in (d), if the government (or private insurance) provided financial compensation to the family would be a more significant labor supply, as the opportunity cost of working would decline.
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Identify a real- world problem that you are familiar with that
can be modeled as a TSP. State the
problem. Set-up the distance/cost/penalty matrix and solve it
using the TSP model provided by the
Ling
Answers
A real-world problem that can be modeled as a Traveling Salesman Problem (TSP) is the delivery route optimization for a courier service. The problem involves finding the shortest route that a delivery person should take to visit a set of locations and return to the starting point, minimizing the total distance traveled. By setting up a distance matrix and solving it using the TSP model, the optimal route can be determined, improving the efficiency of the delivery operations.
In a courier service, delivery personnel are tasked with visiting multiple locations to drop off packages and then returning to the starting point. The objective is to minimize the distance traveled to complete all deliveries. This problem can be modeled as a TSP, where the locations represent the cities or stops that need to be visited, and the distances between them form the distance matrix.
To set up the distance matrix, the distances between each pair of locations need to be determined. This can be done using geographical coordinates or by considering factors such as road distance or travel time. Once the distance matrix is established, the TSP model can be applied to find the optimal route that minimizes the total distance traveled.
Solving the TSP model using algorithms such as the Nearest Neighbor, Genetic Algorithm, or Concorde solver, the courier service can determine the most efficient delivery route. This optimization leads to benefits such as reduced fuel consumption, minimized travel time, improved resource allocation, and enhanced customer satisfaction by ensuring timely deliveries.
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Please help............
Answers
An employment practice that lacks discriminatory content but still leads to discrimination is known as a(n):_________
Answers
An employment practice that lacks discriminatory content but still leads to discrimination is known as a facially neutral employment practice
What is employment practice?Any method of recruiting, selecting, transferring, or promoting employees, as well as any benefit clause or other element of the employer's employment process that serves as a tool for analysis or screening, falls within the definition of an employment practice.
What is discriminatory content ?Communication on a particular topic is restricted when the government discriminates based on the content of speech. When something discriminates based on a person's point of view, it is treating that person's viewpoint differently than it does other people's views on the same issue.
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It is easier to sustain tacit collusion in an infinitely repeated game if
there are many players.
the interest rate is higher.
the present value of cheating is lower than collusion and the interest rate is higher.
the present value of cheating is lower than collusion.
Answers
It is easier to sustain tacit collusion in an infinitely repeated game if the present value of cheating is lower than collision. Thus the correct otpion is D.
When an organization takes steps that are intended to reduce the reaction of another company, this is known as tacit collusion. The collaboration includes when two organizations decide to use a specific approach without officially agreeing to it.
The outcomes generated by collaboration include lower surpluses for customers, higher prices, and more profits for the enterprises who collaborated. It might give oligopolists the ability to utilize monopoly power.
Therefore, option D is appropriate.
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Which of the following is likely the lowest paid of the jobs listed?
A.
Retail clerk
B.
Car salesperson
C.
Desktop publisher
D.
Retail manager
I Need help ASAP
Answers
Answer:
I'm not sure but a desktop publisher or if not that a retail clerk
Answer:
A is the answer
Explanation:
What is someone who owns operates and takes the risk of a business venture?
Answers
The term for someone who owns, operates, and takes the risk of a business venture is an "entrepreneur."
An entrepreneur is an individual who creates and manages a business, taking on financial risks to generate profit and drive innovation.
An entrepreneur identifies business opportunities and takes advantage of market gaps by offering new products or services. They take responsibility for the day-to-day management and operation of the business, making important decisions to ensure its success.
Entrepreneurs often invest their own capital, and therefore assume the financial risk if the venture fails. However, if the business is successful, they reap the rewards and profits.
Entrepreneurs also drive economic growth and innovation by introducing new ideas, technologies, and strategies to the market. Their creativity and risk-taking abilities play a vital role in shaping industries and fueling economic development.
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tax advantages are offered to encourage activities seen as beneficial to society, including which of these? check all that apply. responses personal transportation personal transportation funding healthcare funding healthcare home ownership home ownership education education vacation planning vacation planning retirement savings
Answers
Tax advantages are often used as a way to encourage certain activities that are seen as beneficial to society. Some examples of activities that may be incentivized through tax advantages include:
Personal transportation: Tax incentives may be offered to encourage the use of environmentally friendly vehicles, such as electric cars, or to promote carpooling or public transportation use. Funding healthcare: Tax advantages may be provided to individuals and companies that contribute to health savings accounts (HSAs) or purchase health insurance, in order to encourage people to take responsibility for their healthcare costs. Home ownership: Tax advantages, such as mortgage interest deductions and property tax deductions, may be provided to incentivize homeownership, which is seen as promoting stability and investment in communities. Education: Tax credits and deductions are often offered to individuals who pursue higher education, in order to promote the acquisition of knowledge and skills. Retirement savings: Tax advantages, such as tax-deferred retirement accounts like 401(k)s and IRAs, may be provided to encourage individuals to save for retirement and avoid being a burden on social welfare programs. Incentivizing these activities through tax advantages can help to promote societal benefits while also providing financial benefits to individuals and companies.
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Please Help!!!! My 5th time posting this please actually help me!
In the workplace, new devices and technologies are transforming the way we exchange information and conduct business. List and concisely describe at least six electronic communication channels used most commonly by businesspeople today.
Answers
Answer: My answer is in the photo below. Hope it helps.
Angelo has a savings account worth $1000 that earns 2% interest, a student loan of $40,000 that charges 4.6% interest, and a credit card bill that has $1500 on it with a 23.4% interest rate. He has a budget surplus of $300 at the end of the month. What should he do with the $300?
Answers
Based on the information given what he should with the $300 is: Pay it toward his credit card bill, because it has the highest interest rate.
What is interest rate:
Interest rate can be defined as the amount that is charge on the amount borrowed or loan amount.
Based on the given details the interest rate given are;
Saving account=2% of $1,000
Student loan=4.6% of $40,000
Credit card bill=23.4% of $1,500
We can see that credit card bill has the highest interest rate of 23.4%, therefore the budget surplus amount of $300 should be paid toward the credit card bill because it has the highest interest rate.
Inconclusion what he should with the $300 is: Pay it toward his credit card bill, because it has the highest interest rate.
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Phoebe just moved and is organizing her new house. What is the best thing for her to do with all of her financial records?.
Answers
The best thing Phoebe should do with her financial records is to store them in a safe deposit box.
The documents that offer proof of a business transaction are financial records. Phoebe needs to keep the financial documents secure because she recently relocated and is organizing her new home and she could need them in the future. It's not ideal to shred them or store them in the same location or someplace else. They must be preserved and safeguarded.Financial records are written records that detail or attest to company transactions. An accounting department's financial records must be well-organized in order to function. Financial records might comprise invoices and receipts at the most granular level.Thus this is the meaning of financial records.
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Rising interest rates have made borrowing more costly to consumers. As a result
of the most recent increase in interest rates, borrowing and consumption have
fallen throughout the economy, triggering a contractionary period. Growing
uneasy, citizens have been asking Congress to make an official statement as to
how long this contractionary period is expected to last. Which of the following is
an appropriate response?
Answers
Answer:
it depends on the measures taken to ensure that economy is stable.
Answer:
1. it is difficult to say since contractionary periods have varying lengths in different business cycles.
2. shock
3. high unemployment
4. two
5. expansion stage of the business cycle
Explanation:
just took it
Southern Cotton International is a textile company. It offers two main products. Its
marketing department has recently estimated the demand function, facing SCI:
Demand for product 1: 1 = 0 + 1p1 + p + p +
1 is the quantity demanded for product 1 (in natural log), p1is the price of
product 1 (in natural log), p is the price of product 1’s substitute (in natural log),
p is the price of product 1’s complement (in natural log), and is the error term.
Parameter 1 is estimated to be equal to -0.45 (with standard error being equal to
0.15).
Demand for product 2: 2 = 0 + 2p2 + p + p +
2 is the quantity demanded for product 2 (in natural log), p2is the price of
product 2 (in natural log), p is the price of product 2’s substitute (in natural log),
p is the price of product 2’s complement (in natural log), and is the error term.
Parameter 2 is estimated to be equal to -0.65 (with standard error being equal to
0.05).
a. How much does the demand for product 1 increase if SCI reduces its price by 5%?
Describe your answer in percentages.
b. How much does the demand for product 2 increase if SCI reduces its price by 5%?
Describe your answer in percentages.
c. Which one of the above products has a more sensitive demand? Explain your
answer in a short paragraph.
d. Consider the demand for product 1 (or product 2). Which one of the parameters
below is expected to be less than zero: or ? Explain your answer in a short
paragraph.
Answers
a. The demand for product 1 increases by 2.25% if SCI reduces its price by 5%.
b. The demand for product 2 increases by 3.25% if SCI reduces its price by 5%.
c. Product 2 has a more sensitive demand due to a larger absolute value of its parameter estimate (-0.65) compared to product 1 (-0.45).
d. The parameter β1 (parameter 1) for product 1 is expected to be less than zero, indicating an inverse relationship between price and demand.
a. To calculate the percentage increase in demand for product 1 if SCI reduces its price by 5%:
Percentage increase in demand = Parameter 1 * Percentage change in price of product 1
Percentage increase in demand = -0.45 * (-5%) = 0.0225 or 2.25%
Therefore, the demand for product 1 would increase by approximately 2.25% if SCI reduces its price by 5%.
b. To calculate the percentage increase in demand for product 2 if SCI reduces its price by 5%:
Percentage increase in demand = Parameter 2 * Percentage change in price of product 2
Percentage increase in demand = -0.65 * (-5%) = 0.0325 or 3.25%
Therefore, the demand for product 2 would increase by approximately 3.25% if SCI reduces its price by 5%.
c. Product 2 has a more sensitive demand compared to product 1 because the absolute value of the parameter estimate for product 2 (-0.65) is larger than the absolute value of the parameter estimate for product 1 (-0.45). The larger absolute value indicates a greater responsiveness or sensitivity of demand to price changes.
d. In the demand equation for product 1, the parameter β1 (-0.45) is expected to be less than zero. This negative sign indicates an inverse relationship between the price of product 1 and the quantity demanded. As the price of product 1 decreases, the quantity demanded is expected to increase. The negative parameter reflects this expected direction of change in demand in response to a change in price.
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In the context of categories of political behaviors by change managers, _____ refers to switching and choosing roles where one is successful and visible
Answers
This refers to the action known as "political networking" in the context of categories of political behaviours by change managers. Building and exploiting ties with prominent people or groups within an organisation is known as political networking, and it is done to further one's own goals or agenda.
One part of political networking is switching and selecting roles where one is effective and visible because it enables change managers to build relationships with others who may give them valuable support, such as access to resources, knowledge, or decision-making power.
Change managers can boost their visibility and influence inside the organisation and progress their change projects by proactively connecting themselves with prominent people or organisations.
However, political networking can also have unfavourable effects, like fostering a sense of favouritism or undermining the organization's trust. Therefore, it is crucial for change managers to strike a balance between their political actions and moral considerations as well as a focus on achieving favourable results for the organisation as a whole.
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What type of transactions should be recorded in the Payment, Fee, Withdrawal column
of your check register?
Answers
You purchased a call option for $3.45 17 days ago. The call has a strike price of $45, and the stock is now trading for $51. If you exercise the call today, what will be your holding-period return? If you do not exercise the call today and it expires, what will be your holding-period return?
Answers
Answer:
73.9%;-100%
Explanation:
1. Calculation to determine what will be your holding period return If you exercise the call today
First step is to determine the Forest profit
If the call is exercised
Gross profit =$51 - 45
Gross profit= $6
Second step is to calculate the Net profit
Net profit =$6 -$3.45
Net profit = $2.55.
Now let calculate The holding period return Holding period return=$2.55/$3.45
Holding period return = .739 *100
Holding period return=73.9%
Therefore If you exercise the call today, what will be your holding-period return will be 73.8%
2. Calculation to determine what will be your holding period return If you do not exercise the call today and it expires,
Holding period return= ($0 -$3.45)/$3.45
Holding period return=-$3.45/$3.45
Holding period return = -1.00*100
Holding period return= -100%
Therefore If you do not exercise the call today and it expires, what will be your holding period return will be -100%
the ""big three"" factors on the balance sheet important to cash management include
Answers
The "big three" factors on the balance sheet important to cash management include Accounts Receivable, Inventory, Accounts Payable.
Accounts Receivable: The amount of money owed to the company by its customers for goods or services provided on credit.
Inventory: The value of the company's stock of goods available for sale.
Accounts Payable: The amount of money owed by the company to its suppliers and vendors for goods or services received on credit.
These factors are crucial for cash management as they directly impact the company's cash flow. Effective management of accounts receivable ensures timely collection of payments, which increases cash inflow. Proper inventory management helps prevent excess stock, freeing up cash that would otherwise be tied up in inventory. Managing accounts payable efficiently ensures timely payments to suppliers, maintaining good relationships and potentially availing early payment discounts.
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Which is a formatting characteristic of a full-block business letter?.
Answers
Answer:
In a full block business letter, every component of the letter heading, address, salutation, body, salutation, signature, identification, enclosures is aligned to the left. Also first sentences of paragraphs are not indented.
Explanation:
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Saved Chris a new college graduate is in the process or purchasing a car. Which Kim-Lord Grid most likely describes Chris's affective and cognitive involvement in this process.
A. Low Cognitive, B. Low Affective Low Cognitive, C. High Affective High Cognitive, D. Low Affective High Cognitive, E. High Affective
Answers
When Saved Chris, a new college graduate, is in the process of purchasing a car, the Kim-Lord Grid that most likely describes Chris's affective and cognitive involvement in this process is Low Affective High Cognitive.
The Kim-Lord Grid is a marketing research tool that is used to classify a customer based on the level of affective and cognitive involvement they have in a particular product or service.
When Saved Chris, a new college graduate, is in the process of purchasing a car, his cognitive involvement is likely to be high, as he will be researching and evaluating different options.
However, his affective involvement may be low, as he may not have strong emotional attachments to any particular brand or model.
Therefore, the Kim-Lord Grid that most likely describes Chris's affective and cognitive involvement in this process is Low Affective High Cognitive.
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assume mortgage rates increase to 7.5 percent and you borrow $329,000 for 30 years to purchase a house. what will your loan balance be at the end of the first 15 years of monthly payments?
Answers
Assume mortgage rates increase to 7.5 percent and you borrow $329,000 for 30 years to purchase a house. The loan balance at the end of the first 15 years of monthly payments would be approximately $228,228.32.
Assuming a fixed-rate mortgage with monthly payments, we can use the formula for the remaining loan balance after t payments:
B = L [(1 + r)ⁿ - (1 + r)ᵃ] / [(1 + r)ⁿ-1]
where:
L = loan amount = $329,000
r = monthly interest rate = 7.5% / 12 = 0.625%
n = total number of payments = 30 years * 12 months per year = 360
a = number of payments made = 15 years * 12 months per year = 180
Plugging in the values, we get:
B = $329,000 [(1 + 0.00625)³⁶⁰ - (1 + 0.00625)¹⁸⁰] / [(1 + 0.00625)³⁶⁰ -1]
B = $228,228.32
Therefore, the loan balance at the end of the first 15 years of monthly payments would be approximately $228,228.32.
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Scot and Vidia, married taxpayers, earn $90,400 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). (Do not round intermediate calculations. Round your answer to 2 decimal places.)a. If Scot and Vidia earn an additional $81,000 of taxable income, what is their marginal tax rate on this income?b. How would your answer differ if they, instead, had $81,000 of additional deductions?
Answers
Answer:
a) Since Scot and Vidia's ordinary income = $90,400 + $81,000 = $171,400, their marginal tax rate will be 24%, and they will owe $29,211 + [($171,400 - $171,500) x 24%] = $29,295 in taxes
They will also have to pay 15% of $5,000 (capital gains) = $750
b) Since Scot and Vidia's ordinary income = $90,400 - $81,000 = $9,400, their marginal tax rate will be 10%, and they will owe $9,400 in taxes
They will also have to pay 15% of $5,000 (capital gains) = $750
Explain the change in demand for watermelons using evidence, and show this effect on a supply and demand graph.
Answers
Answer:
Explanation:
Changes in the supply of melon
is brought about both positive and negative factors affecting supply of melon apart from the price of melon
What are the six basic step of the problem solving process? HURRY I NEED THIS QUICK
WILL GIVE BRAINLIEST
Answers
Answer:
1) identify your problem: Try to describe the problem as much as possible, as opposed to focusing on the potential consequences or implications of the problem.
2) Pin point the problem
3) so that means you should do research based on the problem ^
4)Try evaluating the problem.. perhaps looking at it in perspective ^
5)see how the problem could affect you or others
6) Then work out a plan to solve the problem
Answer:
1) Identify the root problem
2) Identify the factors and causes
3) Generate alternative solutions
4) Decide on the best solution
5) Implement solution
6) Evaluate the results
Explanation:
please respond to all parts of the question below, each with its own section. a. do you think businesses should voluntarily undertake environmental efforts, beyond those required by law? why or why not? b. describe the sustainability management practices of a business firm with which you are familiar. which stage of the corporate environmental responsibility model best fits this firm, and why? looking again at this same firm, what steps might its managers take to improve its environmental performance? in answering this question, consider the various elements of effective environmental management.
Answers
a. Yes, I think businesses should voluntarily undertake environmental efforts beyond those required by law. There are several reasons for this:
Environmental degradation can have negative impacts on businesses, including increased costs due to natural disasters or regulatory fines, as well as reputational damage from negative public perception. By proactively addressing environmental issues, businesses can mitigate these risks and potentially even benefit from improved reputation and customer loyalty.Some environmental efforts may also have financial benefits for businesses, such as reduced energy costs from energy efficiency measures or the ability to sell excess renewable energy back to the grid.Businesses have a responsibility to operate in a way that takes into account the well-being of society and the environment. By proactively addressing environmental issues, businesses can demonstrate their commitment to sustainability and their broader role in society.b. One business firm that I am familiar with that has strong sustainability management practices is Patagonia, an outdoor clothing and gear company. Patagonia has a comprehensive environmental policy that includes commitments to reducing the environmental impact of its products and operations, as well as advocating for environmental causes.
To improve its environmental performance, Patagonia's managers could consider implementing additional sustainability initiatives, such as increasing the use of recycled materials in its products, implementing water conservation measures in its manufacturing processes, or increasing the use of renewable energy in its operations. Other elements of effective environmental management that Patagonia's managers could consider include setting clear environmental goals and targets, engaging with stakeholders (including employees, customers, and suppliers) on environmental issues, and reporting transparently on the company's environmental performance.
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Rey Company's only product sells for $221 per unit. Data for its first year of operations follow. Direct materials Direct labor Variable overhead Fixed overhead $25 per unit $ 33 per unit $ 11 per unit $325,000 per year $ 23 per unit $ 210,000 per year 25,000 units Variable selling and administrative expenses Fixed selling and administrative expenses Units produced and sold 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. REY COMPANY Income Statement (Absorption Costing) Direct labor Cost of goods sold Contribution margin 0 $ 0 Required 1 Required 2 Prepare an income statement for the year using variable costing. REY COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Direct materials X $ Direct labor X Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income 625,000 X 835,000 575,000 325,000 210,000 $ 5,525,000 2,035,000 3,225,000 535,000 $ 2,690,000
Answers
Income statement using absorption costing:
The given data can be used to prepare an income statement for the year using absorption costing as follows:
REY COMPANY Income Statement (Absorption Costing)
Sales (25,000 units * $221 per unit) $5,525,000
Less: Cost of goods sold:
Direct materials (25,000 units * $25 per unit) $625,000
Direct labor (25,000 units * $33 per unit) $825,000
Variable overhead (25,000 units * $11 per unit) $275,000
Fixed overhead (13 per unit * 25,000 units) $325,000
Total cost of goods sold $2,050,000
Gross profit $3,475,000
Income statement using variable costing:
The given data can be used to prepare an income statement for the year using variable costing as follows:
REY COMPANY Income Statement (Variable Costing)
Sales (25,000 units * $221 per unit) $5,525,000
Less: Variable expenses
Direct materials (25,000 units * $25 per unit) $625,000
Direct labor (25,000 units * $33 per unit) $825,000
Variable overhead (25,000 units * $11 per unit) $275,000
Variable selling and administrative expenses (25,000 units * $23 per unit) $575,000
Total variable expenses $2,300,000
Contribution margin $3,225,000
Less: Fixed expenses
Fixed overhead $325,000
Fixed selling and administrative expenses $210,000
Total fixed expenses $535,000
Net income $2,690,000
Therefore, the correct income statements using absorption costing and variable costing are:
REY COMPANY Income Statement (Absorption Costing):
Sales $5,525,000
Cost of goods sold $2,050,000
Gross profit $3,475,000
REY COMPANY Income Statement (Variable Costing):
Sales $5,525,000
Less: Variable expenses $2,300,000
Contribution margin $3,225,000
Less: Fixed expenses $535,000
Net income $2,690,000
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When might the 50/30/20 rule not be the best saving strategy to use?
Answers
The Food and Drug Administration sets standards for
O advertising.
O product labeling.
O the environment.
O traffic safety.
Answers
Answer:
B. Product Labeling
Explanation:
From quizlet
The Food and Drug Administration sets standards for product labeling.
What is product labeling?Product labeling is the details information of what a products entails and this is often writing on the product.
Product labeling is an important standards set by Food and Drug Administration as this help the consumer to be know the following:
The product ingredientHow healthy or unhealthy the product are etcInconclusion the Food and Drug Administration sets standards for product labeling.
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suppose the yields on tax-exempt local government bonds in problem 9 initially were below the treasury yields of the same maturity. if the tax-exempt status were then removed from the local government bonds, would you expect their yields spreads versus treasuries to narrow, to disappear, or change sign? explain your answer.
Answers
When the tax -exempt status were removed from local government bonds then expected tax yields spread versus treasuries to change and likely become narrower.
If the tax-exempt status were removed from the local government bonds.
It would result in an increase in their effective yield since investors would no longer receive tax benefits on their interest income.
As a result, the yield on local government bonds would rise and likely become closer to the yield on treasuries with the same maturity.
Assuming that the yields on tax-exempt local government bonds were initially below the yields on treasuries.
The yield spread between the two was negative when the tax-exempt status is removed.
The yield on local government bonds will rise, and the yield spread will change.
If the increase in yield on local government bonds is larger than the increase in yield on treasuries.
The yield spread will become positive.
If the increase in yield on local government bonds is smaller than the increase in yield on treasuries.
The yield spread will remain negative but become smaller in magnitude.
The tax-exempt status was initially providing an additional benefit to investors.
Which will no longer exist after the removal of the tax-exempt status.
Therefore, expect the yield spread between tax-exempt local government bonds and treasuries to change and likely become narrower.
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The Graves Corporation was incorporated in 2018 and incurred a net op-erating loss of $35,000. The company’s operating income in 2019 was $47,000. Because of a downturn in the local economy, the company suffers a net operating loss of $21,000 in 2020. What is the treatment of the 2020 loss? How would your answer change if Graves were an S corporation?
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Answer:
The 2018 loss was carried forward and decreased the corporation's tax liability during 2019. The 2020 loss should also be carried forward to offset any future gains and reduce future tax liabilities. A company can carry forward a loss indefinitely, since it is allowed to deduct a maximum of 80% of a future year's net income.
If this was an S corporation, it would be pass through entity that is not taxed directly, instead, the owners are taxed. Therefore, this $21,000 loss will be distributed proportionally among all the stockholders, and they must deduct their taxes independently.