The equivalent units of production for materials and conversion costs for the month of December, respectively, using the FIFO method can be computed as follows.
Units completed from work in process on December 19 + Units from December production - Units of WIP at December 31 = 19,000 + 74,000 - 14,000 = 79,000 equivalent units of production for materials
Conversion costs:
Units completed from work in process on December 19 + Units from December production + Equivalent units of WIP at December 31 = 19,000 + 74,000 + (14,000 x 60%) = 19,000 + 74,000 + 8,400 = 101,400 equivalent units of production for conversion costs
None of the above since none of the choices match the computed equivalent units of production for both materials and conversion costs.
Your answer: A. 88,000; 90,000
To calculate the equivalent units of production for materials and conversion costs using the FIFO method, we first determine the units completed from the beginning work in process and then the units completed from December production.
1. For materials: Since materials are added at the beginning of the process, the equivalent units for materials are equal to the total units completed (93,000).
2. For conversion costs:
a. Beginning WIP: 19,000 units * 40% remaining to be completed = 7,600 equivalent units.
b. December production: 74,000 units * 100% = 74,000 equivalent units.
c. Ending WIP: 14,000 units * 60% completed = 8,400 equivalent units.
The total equivalent units for conversion costs are 7,600 + 74,000 = 81,600.
However, since ending WIP is not considered in the FIFO method, we subtract the equivalent units from ending WIP (8,400) to get the final equivalent units for conversion costs: 81,600 - 8,400 = 73,200.
Therefore, the equivalent units of production for materials and conversion costs for the month of December are 93,000 and 73,200, respectively. Since none of the answer choices match this result, the correct answer is E. None of the above.
To know more about Materials click here .
brainly.com/question/30503992
#SPJ11
if the mpc = 0.75, the government spending multiplier would be question content area bottom part 1 a. 0.25. b. 7.5. c. 4. d. 25.
The correct answer is c. 4. The government spending multiplier is calculated by dividing 1 by the marginal propensity to consume (mpc).
The correct answer is c. 4. The government spending multiplier is calculated by dividing 1 by the marginal propensity to consume (mpc). In this case, the mpc is 0.75, so the government spending multiplier would be 1/0.75 = 4. This means that for every dollar the government spends, the total output in the economy would increase by four dollars.
Learn more about marginal propensity here
https://brainly.com/question/19089833
#SPJ11
a project that provides annual cash flows of $2,620 for eight years costs $9,430 today.
a. At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. At a required return of 24 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The question is related to the concept of net present value (NPV) in finance, which is the difference between the present value of cash inflows and the present value of cash outflows over a specified period of time. NPV will be $539.72 in option (a).
a. To calculate the NPV of the project at a required return of 8 percent, we need to discount each of the annual cash flows and subtract the initial cost of the project:
NPV = -9,430 + (2,620/1.08) + (2,620/1.08²) + ... + (2,620/1.08⁸)
NPV = -9,430 + 2,418.52 + 2,236.56 + ... + 837.52
NPV = $539.71
Therefore, the NPV of the project at a required return of 8 percent is $539.71.
b. To calculate the NPV of the project at a required return of 24 percent, we use the same formula:
NPV = -9,430 + (2,620/1.24) + (2,620/1.24²) + ... + (2,620/1.24⁸)
NPV = -9,430 + 1,466.94 + 1,077.98 + ... - 2,000.61
NPV = -$1,610.53
Therefore, the NPV of the project at a required return of 24 percent is -$1,610.53.
c. To find the discount rate at which we would be indifferent between accepting and rejecting the project, we need to solve for the discount rate that makes the NPV equal to zero:
0 = -9,430 + (2,620/1+r) + (2,620/1+r²) + ... + (2,620/1+r⁸)
Using a financial calculator or spreadsheet, we can find that the discount rate that satisfies this equation is approximately 16.04 percent.
Therefore, we would be indifferent between accepting and rejecting the project at a discount rate of 16.04 percent.
Learn more about NPV https://brainly.com/question/18848923
#SPJ11
The procurement process supports _____ component of Porter's Value Chain.Question 23 options:A) inbound logisticsB) operationsC) outbound logisticsD) customer service
The operations part of Porter's Value Chain is supported by the procurement process. Option B is Correct.
The function of procurement has a very specific meaning in the context of Porter's modeling: "Responsible for the acquisition of inputs, or resources, for the firm." Therefore, according to this paradigm, the task of procurement is primarily concerned with purchasing goods such as materials, commodities, or products.
The Porter value chain is a methodology for creating an analytical structure that tracks interdependent actions from the procurement of raw materials or ideas through manufacturing and, ultimately, into the hands of a client. Purchases of services, raw materials, and various components tend to serve operations' demands in procurement. Additionally, it can satisfy the demands made during efforts to distribute physical goods, produce new goods and services, and outsource crucial operations. Option B is Correct.
Learn more about procurement visit: brainly.com/question/21011661
#SPJ4
The procurement process supports the inbound logistics component of Porter's Value Chain.
According to Porter's Value Chain, a business must go through a series of tasks or procedures in order to add value for its clients. Michael Porter created the framework, which he first described in his book "Competitive Advantage: Creating and Sustaining Superior Performance."
The actions involved in receiving, storing, and distributing inputs or commodities required for the production process are referred to as the inbound logistics component. This component's procurement is a crucial part because it entails finding the proper suppliers and materials at the right price. Businesses may enhance their inbound logistics and eventually provide more value to customers by making sure the procurement process is efficient and effective.
To know more about Porter's Value Chain
brainly.com/question/30389363
#SPJ11
Question: Which of these categories describes the largest group of liabilities for banks—by far? a. Demand and long-term deposits b. Trading c. Borrowing.
The largest group of liabilities for banks by far is generally a) demand and long-term deposits.
These deposits represent the funds that customers have entrusted to the bank, often in the form of checking or savings accounts. Banks use these deposits to make loans and investments, which generate income for the bank. While trading and borrowing can also be significant sources of liabilities for banks, they typically represent a smaller portion of a bank's total liabilities compared to deposits.
Option a) is the correct answer.
You can learn more about liabilities at
https://brainly.com/question/14921529
#SPJ11
You have a portfolio of two stocks that has a total value of $31,000. The portfolio is 43 percent invested in Stock J. If you own 200 shares of Stock K, what is Stock K's share price?
The share price of the Stock K in the given portfolio is $88.35.
To find the share price of Stock K, we need to first determine the total value of the portfolio invested in Stock J. If the portfolio is 43 percent invested in Stock J, then the remaining 57 percent must be invested in Stock K.
To find the share price of Stock K, follow these steps:1. Find the total value invested in Stock J using the following equation:
0.43(total portfolio value) = value invested in Stock J
2. We know that the total portfolio value is $31,000, so we can plug that in and solve for the value invested in Stock J:
0.43($31,000) = $13,330
3. Now we can find the total value invested in Stock K:
$31,000 - $13,330 = $17,670
4. We also know that you own 200 shares of Stock K. So to find the share price, we can divide the total value invested in Stock K by the number of shares:
$17,670 ÷ 200 = $88.35
Therefore, the share price of Stock K is $88.35.
Learn more about Portfolio:
https://brainly.com/question/14986133
#SPJ11
5. A target market is a specific group of consumers toward whom a firm directs its marketing effort.
A target market is a specific group of consumers that a firm has identified as the most likely to be interested in its product or service. It is important for companies to understand their target market because it allows them to tailor their marketing efforts and messaging to appeal directly to their audience.
This results in more effective marketing campaigns, as well as a better return on investment.
In order to identify their target market, companies need to conduct research to understand the needs, wants, and behaviors of their potential customers. This can involve analyzing demographic data such as age, gender, and income level, as well as psychographic data such as lifestyle, values, and interests.
Once a target market has been identified, a company can then develop marketing strategies that are tailored to that specific group. For example, a company that sells high-end fashion items may target affluent consumers who value luxury and exclusivity, while a company that sells eco-friendly cleaning products may target environmentally-conscious consumers who prioritize sustainability.
Overall, understanding and targeting a specific market is essential for any successful marketing campaign. By tailoring their efforts to a specific group of consumers, companies can increase their chances of reaching and engaging with their target audience, ultimately leading to increased sales and brand loyalty.
Know more about target market here:
https://brainly.com/question/13363009
#SPJ11
Ali Hadad, division manager for Worldwide Textiles, Inc., is meeting with his management team to discuss workplace accommodations for physically disabled workers at Worldwide Textile’s multiple factory locations. His senior plant manager, Randy Albright, says, "I want to install adaptive tools and other systems to allow our disabled workers to be more productive and comfortable, and I want to train all of our employees to be supportive of disabled workers." The corporate counsel, Jill St. Michaels, replies, "As you know, those steps go way beyond what is required by law, and I advise that they not be approved. We need to focus only on preventing and detecting illegal behavior toward disabled workers and punishing those who violate discrimination laws." And the division financial manager says, "Do we really want to spend money on new equipment and training if we are not required to do so?" Ali concludes, "I approve Randy’s request. I want us to make decisions on the basis of right and wrong, not just on the basis of what is legal and not. I want our employees to know that we are an ethical organization in which they can take pride and satisfaction."
Randy is advocating steps that would be consistent with a(n) ______ ethics program.
competency-based
integrity-based
rule-based
conformity-based
compliance-based
Randy is advocating steps that would be consistent with an integrity-based ethics program. Therefore, the correct option is option 2.
Integrity-based ethics programs go beyond simply complying with laws and regulations. They focus on promoting ethical behavior and creating a positive organizational culture, rather than just preventing and punishing wrongdoing.
Randy is advocating for an integrity-based ethics program because he is suggesting that accommodations be made for disabled workers not just because it is required by law, but because it is the right thing to do. He also wants to train all employees to be supportive of disabled workers, which shows a commitment to values such as empathy and compassion.
On the other hand, the corporate counsel and financial manager are focused solely on legal compliance and cost savings, respectively, which align more with a rule-based or conformity-based ethics program. However, Ali's decision to prioritize ethical behavior over legal requirements indicates a commitment to integrity-based ethics.
Hence, as in this case, Randy's proposal to install adaptive tools, provide training for employees, and promote a supportive environment for disabled workers demonstrates a commitment to ethical decision-making and fostering a positive workplace culture, even if these actions go beyond what is legally required. The correct option is option 2.
Learn more about Integrity-based ethics:
https://brainly.com/question/13058969
#SPJ11
27, Gwen is n unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Giwen as A unemployed and not in the labor force B. unemployed and in the labor force. C. employed and in the labor Sorce. D. employed and not in the labor force
Gwen would be classified as option D: employed and not in the labor force.
This is because she is working for her family's restaurant but is not receiving a wage or salary. Therefore, she is not considered to be actively seeking employment and is not part of the labor force.
The labor force, or currently active population, comprises all persons who fulfil the requirements for inclusion among the employed (civilian employment plus the armed forces) or the unemployed. The employed are defined as those who work for pay or profit for at least one hour a week, or who have a job but are temporarily not at work due to illness, leave or industrial action. The armed forces cover personnel from the metropolitan territory drawn from the total available labor force who served in the armed forces during the period under consideration, whether stationed in the metropolitan territory or elsewhere. The unemployed are defined as people without work but actively seeking employment and currently available to start work. This indicator is seasonally adjusted, and it is measured in persons.Therefore, the correct answer is option D. employed and not in the labor force.
Learn more about labor force here: https://brainly.com/question/31419955
#SPJ11
civil society is touted as a wonder drug. true or false
The given statement "civil society is touted as a wonder drug. " is false because civil society is not a wonder drug.
Civil society refers to the space for collective action and social interaction between individuals and groups independent from the state and market. It is important for a functioning democracy and promotes social cohesion, accountability, and inclusivity. However, civil society alone cannot solve all societal problems and challenges, and it is important to also have effective governance and policies in place to address these issues.
You can learn more about civil society at
https://brainly.com/question/692932
#SPJ11
Improved robots in the factories make car production cheaper. The supply of cars will
Improved robots in the factories make car production cheaper. The supply of cars will "shifted to the right".
The production or manufacturing is the process in which the machines create the parts of the cars in the automobile industry from the preparing parts to the final car produced.
The use of improved robots in factories to produce cars can be considered a positive technological advancement in the automobile industry.
The technology leads to increased productivity and lower costs of production, which can lower cost of cars for consumers.
As a result, the supply of cars in the market is likely to increase, shifting the supply curve to the right.
To know more about production here,
https://brainly.com/question/14382782
#SPJ1
You can change your PivotTable's configuration so that subtotals Select an answer: appear below each subgroup all of these answers are not displayed at all appear above each subgroup
I understand that you need help with configuring subtotals in a PivotTable. You can change your PivotTable's configuration so that subtotals:
1. Appear above each subgroup
2. Appear below each subgroup
3. Are not displayed at all
To do this, follow these steps:
1. Click on your PivotTable to activate the PivotTable tools.
2. Go to the "Design" tab under "PivotTable Tools" in the Excel toolbar.
3. Click the "Subtotals" button in the "Layout" group.
4. Choose one of the following options:
a. "Show all Subtotals at Top of Group" to have subtotals appear above each subgroup.
b. "Show all Subtotals at Bottom of Group" to have subtotals appear below each subgroup.
c. "Do Not Show Subtotals" to remove subtotals entirely from the PivotTable.
I hope this helps you with configuring your PivotTable subtotals!
To know more about PivotTable refer here:
https://brainly.com/question/29817099#
#SPJ11
If a company has plenty of capacity, it should accept a special order at a discounted sales price if the sales price exceeds the ____A. variable costs B. gross profit C. fixed costs D. contribution margin
If a company has plenty of capacity, it should accept a special order at a discounted sales price if the sales price exceeds the variable costs.
What is variable cost?
Variable costs are expenses that change in proportion to the level of activity or output of a business. In other words, as the volume of production or sales increases, variable costs also increase, and as the volume decreases, variable costs decrease as well. Examples of variable costs include direct materials, direct labor, and sales commissions.
If a company has plenty of capacity, accepting a special order can be a good decision as long as the incremental revenue from the order exceeds the incremental cost of producing and delivering the order. Therefore, the company should accept the special order if the sales price exceeds the variable costs, as this is the minimum incremental cost that the company would incur to produce and deliver the additional units.
Gross profit and fixed costs are not relevant for this decision since they do not consider the incremental costs of the special order. Contribution margin, on the other hand, is relevant but only if it exceeds the variable costs. Therefore, the correct answer is A. variable costs.
To know more about variable costs, visit:
https://brainly.com/question/13417005
#SPJ1
Complete question is: If a company has plenty of capacity, it should accept a special order at a discounted sales price if the sales price exceeds the variable costs.
true or false: technical, fundamental, and market-based forecasting typically yield similar exchange rate forecasts.
Technical, fundamental, and market-based forecasting typically yield similar exchange rate forecasts. This, statement is false. Thus, option (b) is correct.
The effectiveness of the forecast is influenced by a number of variables, including the time horizon, the currency pair, and the market conditions, and each technique has strengths and shortcomings of its own.
In order to calculate exchange rates, fundamental analysis concentrates on factors related to the economy, such as inflation, interest rates, and trade balances, whereas technical analysis makes use of historical price and volume data to spot trends and patterns.
Therefore, option (b) is correct.
Learn more about on forecasting, here:
https://brainly.com/question/31864284
#SPJ12
You are writing a report that compares the spring lines of three design houses. You are including four different headings in your report. What basic guidelines should you follow when creating your headings? Check all that apply. (O Highlight minor ideas. Try to balance headings within levels. O Capitalize and emphasize carefully. use appropriate heading levels. O Use different fonts and font sizes.
Use these fundamental rules to build headlines that are effective: Use appropriate heading levels, aim for parallel construction, use first- and second-level headings for brief reports, capitalize and underline with care, keep headings succinct and understandable, avoid using headings as antecedents for pronouns, and include at least one heading per report page when necessary.
Which writing format must be used when writing for business?There are four different kinds of it: transactional, persuasive, informational, and instructive. Effective business writing has the following qualities: clarity of thought, concision, proper syntax and sentence construction, and plain language.The organization of longer documents is aided by headings and subheadings. The reader's focus is drawn to them due to the text's size and frequent usage of bold. When drafting a document such as a report, headings and subheadings are extremely helpful.For more information on report writing kindly visit to
https://brainly.com/question/17165605
#SPJ1
Sandhill Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $46,360. Purchases since January 1 were $87,840; freight-in, $4,148; purchase returns and allowances, $2,928. Sales are made at 33 1/3% above cost and totaled $144,000 to March 9. Goods costing $13,298 were left undamaged by the fire; remaining goods were destroyed. Compute the cost of goods destroyed.
Cost of goods destroyed by the fire on March 9 is $122,122.
To compute the cost of goods destroyed by the fire on March 9, we need to subtract the cost of goods undamaged from the total cost of goods on hand. The total cost of goods on hand is calculated by adding the merchandise on hand on January 1, purchases since then, freight-in, and deducting purchase returns and allowances.
Total cost of goods on hand: $46,360 (merchandise on hand on January 1)+ $87,840 (purchases since January 1) + $4,148 (freight-in) - $2,928 (purchase returns and allowances) = $135,420
To calculate the cost of goods destroyed, we need to subtract the cost of goods undamaged from the total cost of goods on hand: $135,420 (total cost of goods on hand) - $13,298 (cost of goods undamaged) = $122,122
Therefore, the cost of goods destroyed by the fire on March 9 is $122,122.
To know more about cost of goods , refer to the link:
https://brainly.com/question/14866200#
#SPJ11
International Business
17. A largely sustainable structure
18. The profitability category incorporating selling more in existing markets and expanding into new markets
19. Another way to consider customization as a multi-domestic strategy
20. A nation state economy enjoyed by many state owned enterprises
Answers options:
Global Integration
Entry modes
Global matrix
Natural resources
Maximizing prices
Foreign exchange
Non-equity
Home-to-host
Transition
Collaborative transactions
Economic integration
Efficiency
Innovation
The Deltas
Mercantilism
Global Integration
Local responsiveness
17) A largely sustainable structure refers to a business model that focuses on reducing environmental impact, promoting social responsibility, and ensuring long-term economic viability. This includes practices such as reducing waste and emissions, using renewable energy sources, and investing in social initiatives.
18)The profitability category incorporating selling more in existing markets and expanding into new markets refers to a business strategy aimed at increasing revenue and profits through both market penetration and market development. This involves increasing sales of existing products or services in current markets while also expanding into new markets.
19)Another way to consider customization as a multi-domestic strategy refers to a business approach that emphasizes tailoring products, services, and marketing strategies to meet the specific needs of local markets. This involves customizing products to meet local preferences and adapting marketing messages to resonate with local consumers.
20) A nation-state economy enjoyed by many state-owned enterprises refers to an economic system where the government owns and controls key industries and enterprises. This includes industries such as transportation, energy, and telecommunications. By owning and operating key industries, the government can exert greater control over the economy and promote economic development.
To know more about business model click here
brainly.com/question/13397493
#SPJ11
a key variable of market efficiency is the certainty of the income stream. the most efficient market is for corporate securities. true fals
The more certain investors are about the future income stream, the more confident they will be in making investment decisions, which leads to a more efficient market.
In contrast, if the income stream generated by an asset is uncertain, investors may be more hesitant to invest, as they are unable to accurately value the asset or predict its future performance. This uncertainty can lead to a less efficient market, as prices may not accurately reflect the true value of the asset.
The efficiency of a market depends on various factors, such as the availability of information, the number of participants, the level of competition, and the degree of regulation, among others.
In the case of corporate securities, the market can be relatively efficient because these securities are actively traded by a large number of participants, and there is a significant amount of publicly available information about the issuing companies.
Learn more about market efficiency https://brainly.com/question/28529377
#SPJ11
Made in the USA or Made in China has less meaning for products that are technological and involve assembling many different types of sometimes sophisticated components. Why is this true?
This is true because products that are technological and involve assembling many different types of sometimes sophisticated components often require a global supply chain.
This is true because products that are technological and involve assembling many different types of sometimes sophisticated components often require a global supply chain. This means that different parts of the product may be sourced from different countries based on where the best and most cost-effective components can be found. Additionally, the manufacturing process for these products is often highly specialized and requires expertise that may not be readily available in one single location. Therefore, the country of origin for the final product may not accurately reflect the level of quality or the amount of work that went into creating it. Ultimately, the quality and reliability of the product are determined by the expertise and quality control measures of the manufacturer, rather than the country of origin.
Learn more about sophisticated components here
https://brainly.com/question/28728956
#SPJ11
A $1,000, 14 percent coupon bond that sells for $950 most likely has a yield to maturity of
A 10 %
B 16%
C 12%
B 14%
A $1,000, 14 percent coupon bond that sells for $950 most likely has a yield to maturity of 16%. The correct answer is (B) 16%.
The yield to maturity (YTM) of a bond is the total return anticipated on a bond if it is held until it matures. In this case, we know the following information:
The bond has a face value of $1,000.
The coupon rate is 14%.
The bond is selling for $950.
To calculate the YTM, we need to use a formula that takes into account the bond's coupon rate, face value, and market price. However, we can make an estimate of the YTM based on the fact that the bond is selling at a discount. When a bond sells for less than its face value, its YTM is higher than its coupon rate.
In this case, the bond is selling for $950, which is $50 less than its face value of $1,000. This represents a discount of 5%. Therefore, we can estimate that the YTM is approximately 14% + 5% = 19%.
However, we need to take into account that the bond is paying a 14% coupon rate, which means that the effective yield to maturity will be slightly lower than 19%. Based on the answer choices given, the closest estimate to 19% is (B) 16%.
You can learn more about coupon bond at
https://brainly.com/question/26376004
#SPJ11
All revenues of the City of Capri are accounted for on the modified accrual basis. Below is shown a list of Capri's General Fund transactions of a revenue nature. State which ones should be recognized by the General Fund as a current revenue in the year of occurrence, Not a revenue or Not a current revenue. 1) Receipt of money from issue of tax anticipation notes. 2) Collection of taxes that had been written off in prior year. 3) Collection of current-year property taxes. 4) Collection of prior years' delinquent property taxes. 5) Receipt of money in prepayment of a property owner's next-year taxes. 6) Collection of accounts receivable for charges for services.
Transactions 2, 3, 4, and 6 should be recognized as current revenues in the year of occurrence, while transaction 1 is not a revenue, and transaction 5 is not a current revenue.
1) Receipt of money from the issue of tax anticipation notes: Not a revenue. These notes represent borrowing and are not considered a revenue source.
2) Collection of taxes that had been written off in prior years: Current revenue. These taxes were written off but are now collected, and therefore, they should be recognized as current revenue in the year of occurrence.
3) Collection of current-year property taxes: Current revenue. These taxes are collected within the current fiscal year, so they should be recognized as current revenue.
4) Collection of prior years' delinquent property taxes: Current revenue. Even though these taxes are from prior years, they should be recognized as current revenue in the year they are collected.
5) Receipt of money in prepayment of a property owner's next-year taxes: Not a current revenue. These funds are for future taxes and should not be recognized as current revenue.
6) Collection of accounts receivable for charges for services: Current revenue. These collections represent revenue for services provided and should be recognized as current revenue in the year of occurrence.
To know more about transactions click here
brainly.com/question/24730931
#SPJ11
explain why the reaction shifted using phrases such as (increased/decreased concentration of reactants/products). refer to secondary reactions when appropriate.
Changes in temperature, pressure, the quantity of reactants or products, and the presence of catalysts or inhibitors are just a few of the variables that can cause chemical reactions to vary.
In a chemical reaction, when the concentration of reactants increases, the reaction shifts towards the products to maintain equilibrium. This is because the increased concentration of reactants provides more particles to react, leading to the formation of more products. Similarly, if the concentration of products decreases, the reaction will also shift towards the products to compensate for the loss. On the other hand, if the concentration of products increases or the concentration of reactants decreases, the reaction shifts towards the reactants to re-establish equilibrium. In this case, the reverse reaction is favored to consume the excess products or to replenish the diminished reactants. Secondary reactions, which are additional reactions that may occur simultaneously, can also influence the shifting of the primary reaction. If a secondary reaction consumes a product or reactant, it can affect the concentrations in the primary reaction, leading to a shift towards the products or reactants as needed to maintain equilibrium.
To learn more about reactants refer here:
https://brainly.com/question/13005466
#SPJ11
scott and eric each have a good credit history. they work at the same company and make approximately the same salary. scott has borrowed $6000 to take a foreign vacation. eric has borrowed $6000 to buy a car. who is likely to pay the lowest finance charge?
It is impossible to determine who is likely to pay the lowest finance charge based solely on the information provided. The finance charge will depend on various factors, such as the interest rate, the loan terms, and the borrower's credit score.
Additionally, the finance charge for a car loan may be different from a personal loan for a vacation. Therefore, more information is needed to provide a definitive answer. Who is likely to pay the lowest finance charge between Scott and Eric, given that both have a good credit history, work at the same company, make approximately the same salary, and have borrowed $6000. Scott borrowed the money for a foreign vacation, while Eric borrowed it to buy a car.
In general, auto loans tend to have lower interest rates compared to personal loans, which are typically used for vacations. This is because auto loans are secured loans, meaning the car serves as collateral, whereas personal loans are unsecured and pose a higher risk to lenders. Based on this information, it is likely that Eric, who borrowed $6000 to buy a car, will pay the lowest finance charge compared to Scott, who borrowed the same amount for a foreign vacation.
To know more about Finance Charge visit:
https://brainly.com/question/12459778
#SPJ11
Why is rent seeking individually rational but socially wasteful?
A. Rent-seeking activity reflects the actions of individuals who spend resources trying to influence public policy in the hope of redistributing income to themselves from others; it is simply a transfer activity, not a production activity.
B. If a market is monopolized, part of the consumers’ surplus that is lost to sellers becomes profits for the monopolist. Monopolists already maximize their profits; this reflects a socially wasteful endeavor.
C. Rent-seeking activity is the payment in excess of opportunity costs. Seeking economic rent is socially wasteful, although individually rational, because it involves a sunk cost.
D. The government must approve any rent-seeking activity; given the culture in Congress, this is a socially wasteful endeavor.
Rent-seeking activity is individually rational because it allows individuals to obtain economic rent, which is payment in excess of opportunity costs.
Rent-seeking activity is individually rational because it allows individuals to obtain economic rent, which is payment in excess of opportunity costs. However, this activity is socially wasteful because it involves a sunk cost and does not produce any additional value for society. Instead, it simply redistributes income from one group to another. Therefore, while rent-seeking may be rational for the individual, it is not beneficial for society as a whole. The answer is C.
Learn more about economic rent here
https://brainly.com/question/2052288
#SPJ11
You just purchased a home and agreed to a mortgage payment of $1,264 a month for 30 years at 7.5 percent interest, compounded monthly. how much was the mortgage?
The original mortgage amount was approximately $175,409.49.
To determine the original mortgage amount, we will use the mortgage payment formula:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where M is the monthly mortgage payment, P is the original mortgage amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (loan term in years multiplied by 12).
You provided the following information:
- Monthly mortgage payment (M) = $1,264
- Loan term = 30 years
- Annual interest rate = 7.5%
Let's break down the steps to find the original mortgage amount (P).
Step 1: Convert the annual interest rate to a monthly interest rate.
r = (7.5% / 100) / 12 = 0.075 / 12 = 0.00625
Step 2: Calculate the total number of payments.
n = 30 years * 12 payments/year = 360 payments
Step 3: Calculate (1 + r)^n.
(1 + 0.00625)^360 ≈ 7.7449
Step 4: Plug the values into the mortgage payment formula and solve for P.
$1,264 = P * (0.00625 * 7.7449) / (7.7449 - 1)
$1,264 = P * (0.048392) / (6.7449)
Now, we solve for P:
P ≈ $1,264 * (6.7449) / 0.048392 ≈ $175,409.49
For more about mortgage:
https://brainly.com/question/31147395
#SPJ11
The following table displays uncertainties in John's monthly income:State Probability(θ) Income (Y) Utility(U)Sick 0.4 2,500 U(2,500)Healthy 0.6 4,900 U(4,900) a. What is John's expected income (expected value of income)?b. Let John's utility function be U-Yas, where Y is John's monthly income. Cal- culate John's expected utility of income (expected value of utility of income). c. Compare the utility of John's expected income and the expected utility of his income. Is John risk averse or not (refer to John's utility function given above)? Explain your answer using a graph, with income on the horizontal axis and utility on the vertical axis. d. Calculate the maximum amount that John is willing to pay to avoid the risk of income loss resulting from becoming sick.
,John would be willing to pay up to $160 to avoid the risk of income loss resulting from becoming sick.
John's expected income is the weighted average of his income in each state:
(0.4 x 2,500) + (0.6 x 4,900) = 3,540
Therefore, John's expected income is $3,540 per month.
b. To calculate John's expected utility of income, we first need to calculate the utility of income in each state using his utility function:
U(2,500) = 2,500
U(4,900) = 1,900
Next, we can calculate the expected utility of income by taking the weighted average of the utility in each state:
(0.4 x 2,500) + (0.6 x 1,900) = 2,260
Therefroe, John's expected utility of income is 2,260.
c. To compare the utility of John's expected income and the expected utility of his income, we can calculate the utility of his expected income:
U(3,540) = 1,040
Comparing this to his expected utility of income (2,260), we can see that John is risk averse. This is because his utility function is concave, meaning that he values additional income less and less as his income increases. A graph of his utility function would show a curve that starts out steep and then flattens out as income increases.
d. The aximum amount that John is willing to pay to avoid the risk of income loss resulting from becoming sick is equal to the difference between the expected utility of income in the healthy state and the expected utility of income in the sick state:
(0.6 x 1900) - (0.4 x 2,500) = -160
Learn more about income here:
https://brainly.com/question/14732695
#SPJ11
The following table shows the real GDP and population for the United States, Japan, Brazil, and Germanyin 2016. Complete the table by calculating the real GDP per capita for each country.Instructions: Round your answers to the nearest whole number.Real GDP and Population, 2016: Select CountriesCountryUnited StatesJapanBrazilGermanyReal GDP (millions ofdollars)$17,236,2084,857,8322,912,0603,658,901Population (millions ofpeople)32312720883Real GDP per Capita(dollars)$
Real GDP per capita is crucial as it indicates the economic output per person and is commonly used to compare standards of living. The US has the highest followed by Germany, Japan, and Brazil.
To calculate the real GDP per capita for each country, we need to divide the real GDP of each country by its corresponding population.
For the United States, the real GDP per capita in 2016 is $17,236,208 million / 323 million people = $53,301.
For Japan, the real GDP per capita in 2016 is $4,857,832 million / 127 million people = $38,254.
For Brazil, the real GDP per capita in 2016 is $2,912,060 million / 208 million people = $14,002.
For Germany, the real GDP per capita in 2016 is $3,658,901 million / 83 million people = $44,086.
Therefore, the real GDP per capita for the United States is the highest among the four countries, followed by Germany, Japan, and Brazil. It is important to note that real GDP per capita is an important economic indicator as it shows the economic output per person in a country, and is commonly used to compare the economic development and standard of living between countries.
To learn more about Real GDP per capita here:
https://brainly.com/question/15694733
#SPJ11
another name for bond interest (i) is: question 7 options: capital recovery inflation rate face value bond dividend
The term you're looking for as another name for bond interest is bond dividend. Bonds typically do not pay dividends, as they are a form of debt financing.
Instead, bondholders receive interest payments at a fixed rate, known as the coupon rate, at predetermined intervals (usually semi-annually or annually) until the bond's maturity date which is under bond dividend. When the bond reaches its maturity date, the bondholder receives the face value of the bond, which is the amount originally invested. However, some bonds, such as convertible bonds, may offer the option to convert the bond into stock, which would then potentially provide dividend payments to the holder.
Learn more about bonds here:
https://brainly.com/question/17405470
#SPJ11
which approach to motivation is based on the premise that managers know more about the job than workers and therefore should be paid more?
a. Traditional approach b. Content perspective c. Human relations approach d. Human resources approach e. Scientific management
The approach to motivation that is based on the premise that managers know more about the job than workers and therefore should be paid more is the traditional approach. Option (A) is correct answer.
The traditional approach to motivation is a perspective that has been widely used in the field of management and psychology to understand how people are motivated to behave in certain ways. This approach emphasizes the role of external rewards and punishments in shaping behavior and assumes that individuals are primarily motivated by economic and social incentives.
According to this approach, people are motivated by a desire to maximize their rewards and minimize their costs. This can be achieved through various strategies, such as seeking high-paying jobs, achieving status and recognition, or avoiding unpleasant tasks and punishments. Therefore option (A) is correct.
Learn more about traditional approach https://brainly.com/question/15343443
#SPJ11
By the property of "more is better," the consumer views the products under consideration as:
A.goods.
B.bads.
C.inferior goods.
D.normal.
The property of "more is better" indicates that the consumer views the products under consideration as goods. Option b is answer.
This means that the consumer values the product positively and desires more of it, given that other factors like price and availability remain constant. This is the basic assumption of consumer behavior in economics, which states that consumers are rational and strive to maximize their utility by choosing the best combination of goods that meet their preferences and budget constraints.
Option b is answer.
You can learn more about goods at
https://brainly.com/question/25262030
#SPJ11
QUESTION 1
The IRR is a rate of return at which the NPV is equal to zero.
True
False
5 points
QUESTION 2
IRR provides information about a project's safety margin.
True
False
5 points
QUESTION 3
Consider the following two projects.
Project A: IRR=15%, Cost of capital = 12%
Project B: IRR=18%, Cost of capital=20%
Project B should be chosen.
True
False
True
5 points
False
5 points
True
5 points
Project B should be chosen.
False
5 points
Question 1 is True.
Question 2 is False.
Question 3 is False.
Question 1
IRR is used to assess the profitability of a possible investment. IRR is the discount rate at which the future cash flows have a net present value (NPV) of zero.
Question 2
IRR reveals a project's expected rate of return, but it does not provide its safety margin. The term "safety margin" describes how risky a project's expected returns are. A project might have a high IRR. However, if the assumptions used to calculate the IRR are wrong or imprecise, the actual returns may differ greatly from the forecasted returns, lowering the project's safety margin.
Question 3
Since Project A has a positive net present value (NPV) and is anticipated to produce a return greater than the cost of capital, it will be a better choice than Project B given that all other factors remain the same for the two projects.
To know more about IRR,
https://brainly.com/question/29581665
True
5 points
False
5 points
True
5 points
Project B should be chosen.
False
5 points
Question 1 is True.
Question 2 is False.
Question 3 is False.
Question 1
IRR is used to assess the profitability of a possible investment. IRR is the discount rate at which the future cash flows have a net present value (NPV) of zero.
Question 2
IRR reveals a project's expected rate of return, but it does not provide its safety margin. The term "safety margin" describes how risky a project's expected returns are. A project might have a high IRR. However, if the assumptions used to calculate the IRR are wrong or imprecise, the actual returns may differ greatly from the forecasted returns, lowering the project's safety margin.
Question 3
Since Project A has a positive net present value (NPV) and is anticipated to produce a return greater than the cost of capital, it will be a better choice than Project B given that all other factors remain the same for the two projects.
To know more about IRR,
https://brainly.com/question/29581665