Peter's Pans sells cooking pans for $30 each. The company
hires workers in a competitive labor market and pays each worker
$500/week. Based on the table below, find the VMP and determine
the total number of workers Peter's Pans will hire. Explain why.
# of workers # of pans MP VMP
0 0 0 ?
1 20 20 ?
2 39 19 ?
3 57 18 ?
4 74 17 ?
5 90 16 ?
6 105 15 ?
Required:
1. Fill in the VMP for this chart.
2. How many workers will be hired?
3. Why?
Answers
The value of the VMP are 600, 570, 540, 510, 480, 450. The total workers to be hired are 4 workers because MRL > wage.
How to solve for the VMP= MP * selling price
20 * 30 = 60019 * 30 = 57018 * 30 = 54017 * 30 = 51016 * 30 = 48015 * 30 = 450This has been computed in the excel file that I have attached to the question.
2. A competitive firm is going to have to hire when the wage is equal to MRPL or MRPL is greater than the wage
based on this the labor of the firm would be at 4 units.
3. Four workers are going to be hired based on the fact that the marginal revenue of the added labor is more than the wage that was paid for the work done.
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Related Questions
Crane Corporation is reviewing an investment proposal. The initial cost is $103,400. Estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the net income for each year are presented in the schedule below. All cash flows are assumed to take place at the end of the year. The salvage value of the investment at the end of each year is assumed to equal its book value. There would be no salvage value at the end of the investment’s life.
Year Initial Costand Book Value Annual Cash Flows Annual Net Income
0 $104,500
1 69,300 $45,900 $10,700
2 42,100 40,300 13,100
3 21,100 35,000 14,000
4 7,700 30,800 17,400
5 0 25,600 17,900
Drake Corporation uses an 11% target rate of return for new investment proposals.
Required:
a. What is the cash payback period for this proposal?
b. What is the annual rate of return for the investment?
c. What is the net present value of the investment?
Answers
a) The cash payback period for Crane Corporation's investment proposal is 3 years.
b) The annual rate of return for the investment is as follows:
Year 1 = 10% ($10,700/$104,500 x 100)
Year 2 = 19% ($13,100/$69,300 x 100)
Year 3 = 33% ($14,000/$42,100 x 100)
Year 4 = 82.5% ($17,400/$21,100 x 100)
Year 5 = 232% ($17,900/$7,700 x 100)
c) The net present value of the investment by Crane Corporation is $30,643.
Data and Calculations:Target rate of return = 11%
Year Initial Cost and Book Value Annual Cash Annual Net
Flows Income
0 $104,500
1 69,300 $45,900 $10,700
2 42,100 40,300 13,100
3 21,100 35,000 14,000
4 7,700 30,800 17,400
5 0 25,600 17,900
The cash payback period is 3 years ($104,500 - $45,900 - $40,300 - $35,000).
Net Present Value:Year Annual Cash Flows PV Factor Present Value
0 -$104,500 1 -$104,500
1 $45,900 0.901 $41,356
2 $40,300 0.812 32,724
3 $35,000 0.731 25,585
4 $30,800 0.659 20,297
5 $25,600 0.593 15,181
Net Present value = $30.643
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7. FINC 302 is a long-term debt where the face amount of each bond is GH¢ 1,000. The coupon rate is 20% to be paid semi-annually. The 5-year risk-free rate is 20% p.a. It is estimated that the risk premium appropriate to company Y is 6 percentage points
Answers
The required rate of return is 26.00% whereas the WACC is 23.00%
What is required rate of return?
The required rate of return is the rate of return that investors expect from the stock based using the Capital Asset Pricing Model(CAPM) formula shown below:
required rate of return=risk-free rate+ risk premium
risk-free rate=20%
risk premium=6%
required rate of return=20%+6%
required rate of return=26.00%
What is WACC?
WACC means weighted average cost of capital is the sum of the cost of equity and the cost of debt multiplied by their respective weights in the firm's capital structure.
WACC=(required rate of return*weight of equity)+(cost of debt*weight of debt)
Note that there is an implicit assumption in this case that equity and debt have are 50%:50%
required rate of return=26%
cost of debt=coupon rate=20%
WACC=(26%*50%)+(20%*50%)
WACC=23.00%
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Complete question with requirement:
FINC 302 is a long term debt where face amount of each bond is GH¢ 1,000. The coupon rate is 20% to be paid semi annually. The 5-year risk free rate is 20% p.a. It is estimated that the risk premium appropriate to company Y is 6 percentage point.
Calculate the required rate of return and the WACC
A price elasticity of demand of 2.3 implies:_______
a. demand is unitary elastic
b. demand is inelastic
c. demand is perfectly elastic
d. demand is elastic
Answers
Answer:
in my opinionExplanation:
d. demand is elasticA price elasticity of demand of 2.3 implies "demand is elastic". The correct option is D.
The elasticity measures the responsiveness of quantity demanded to changes in price. A value of 2.3 means that for every 1% increase in price, quantity demanded will decrease by 2.3%.
The elastic demand indicates that consumers are highly responsive to price changes and meaning relatively small price changes can lead to significant changes in quantity demanded.
Therefore, the correct option is D.
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The product structure overcomes one of the challenges common to a functional organization structure because it is
better able to do what?
O focus on the goods being made
O focus on the department's needs
O focus on career development
O focus on the worker
Answers
Answer:
focus on the goods being made
On the long-run aggregate supply curve,
Answers
The long-run aggregate supply curve shows the relationship between price level and real GDP.
What is the supply curve?It should be noted that the information is incomplete. Therefore, an overview will be given. The supply curve is a graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period.
In this case, in a typical illustration, the price will appear on the left vertical axis, while the quantity supplied will appear on the horizontal axis.
The long-run aggregate supply curve shows the relationship between price level and real GDP that would be supplied if all prices were fully flexible.
The position of the long-run aggregate supply curve is determined by the aggregate production function and the demand and supply curves for labor.
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Puvo, Incorporated, manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:
Standard Quantity Standard Price or Rate Standard Cost
Direct materials 7.40 pounds $ 1.20 per pound $ 8.88
Direct labor 0.40 hours $ 49.50 per hour $ 19.80
Variable manufacturing overhead 0.40 hours $ 10.10 per hour $ 4.04
During March, the following activity was recorded by the company:
The company produced 4,000 units during the month.
A total of 21,000 pounds of material were purchased at a cost of $15,180.
There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,220 pounds of material remained in the warehouse.
During March, 1,250 direct labor-hours were worked at a rate of $46.50 per hour.
Variable manufacturing overhead costs during March totaled $15,661.
The direct materials purchases variance is computed when the materials are purchased.
The variable overhead rate variance for March is:
Answers
The variable overhead rate variance for March for Puvo Incorporated is $3,036 Unfavorable.
What is the variable overhead rate variance?
The variable overhead rate variance calculates the difference between the actual variable overhead incurred and the standard variable overhead.
The standard variable overhead is the actual hours worked multiplied by the standard variable overhead rate.
Data and Calculations:Standard Quantity Standard Price or Rate Standard Cost
Direct materials 7.40 pounds $ 1.20 per pound $ 8.88
Direct labor 0.40 hours $ 49.50 per hour $ 19.80
Variable manufacturing
overhead 0.40 hours $ 10.10 per hour $ 4.04
Actual production = 4,000 units
Actual direct labor-hours = 1,250 DLHs
Actual variable overhead costs = $15,661
Variable overhead rate variance = actual variable manufacturing overhead - actual hours worked x standard variable overhead rate
= $15,661 - (1,250 x $10.10)
= $3,036 Unfavorable
Thus, the variable overhead rate variance for March for Puvo Incorporated is $3,036 Unfavorable.
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Who manages Woolworths
Answers
Answer:
Christie Koorts the Chief Information Officer, Justin Crowhurst the Chief Financial Officer Woolworths, and Charmaine Huet the Chief Marketing Officer.
The control structure of Woolworths group confined, an Australian retail business enterprise. The Woolworths who manages are as follows:
Board of directors: The board of administrators is answerable for overseeing the strategic path and primary decisions of the employer. It contains people with diverse know-how and backgrounds.
The board's obligations consist of putting corporate targets, reviewing financial performance, and ensuring compliance with policies and corporate governance.
Govt's leadership team :The government management crew is answerable for dealing with the operations and imposing the agency's enterprise techniques. This group consists of every day executives who oversee numerous divisions and features in the business enterprise.
Leader govt Officer (CEO): The CEO is the very best-rating executive within the organization and is answerable for putting the overall course and vision of Woolworths. The CEO works carefully with the board and different senior executives day-to-day to reap the corporation's goals.
Leader financial Officer (CFO): The CFO is liable for dealing with the financial factors of the organization, inclusive of economic reporting, budgeting, and capital allocation.
Leader working Officer (COO): The COO oversees the operations of the enterprise and ensures that enterprise strategies are going for walks efficaciously.
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A colleague has an appointment scheduled for 10:00am to see your Manager. Unfortunately, he is not in the office when the colleague arrives, and you do not know where he is or how long he will be. How will you handle this situation? (4)
Answers
Answer:
I will go to my office and sit
jane found classified information in breakroom. What is first action
Answers
Answer:
Secure the information in a GSA-approved security container
On 1 October 2020 property, plant, and equipment of Kobia Limited consisted of the following balances:
Original Cost
Accumulated Depreciation
Land and buildings
R550 000
-
Plant and Equipment
R875 400
R338 200
Motor vehicles
R647 000
R211 000
Furniture and fittings
R125 000
R 32 000
The straight-line rates of depreciation, based on cost, used to date were 10% per annum for plant and equipment; 20% per annum for motor vehicles; and 12.5% per annum for furniture and fittings. It is the company’s policy to make full year’s depreciation charge on new capital items of fixed assets in the year of purchase. No depreciation is raised on capital items sold during the year. The following additional information is relevant to the calculation of depreciation for the year ended 30 September 2021.
a) Walter & Associates, a firm of appraisers and valuers, professionally valued Land, and buildings during the year at R975 000. When land and building were acquired, R350 000 was attributable to the buildings.
b) An item of equipment bought in November 2016 for R105 000 is now recognised to have a total useful life of 20 years.
c) A motor vehicle purchased in June 2018 for R85 000 was traded in at a value of R44 000 in part exchange for a new motor vehicle costing R140 000.
d) Included with the furniture and fittings is an item which originally cost R15 000, and which is already fully depreciated and is to be discarded.
You are required to:
Prepare a reconciliation schedule for property, plant, and equipment in a form suitable for inclusion in the company’s financial statements for the financial reporting period ended 30 September 2021. Clearly show the amount to be charged against the year’s profits and the balances to be shown on the statement of financial position. You may include the relevant accounting policy note as part of your answer. Ignore taxation.
Answers
The preparation of a reconciliation schedule for property, plant, and equipment in a suitable form for the financial reporting period ended 30 September 2021 for Kobia Limited is as follows:
Property, Plant, and Equipment Reconciliation Schedule:Land & Plant & Motor Furniture
Building Equipment Vehicles & Fittings
Original Costs:Beginning balance R550 000 R875,400 R647,000 R125,000
Revaluation/Addition 425,000 - 140,000 (15,000)
Write-off (85,000)
Ending balance R975,000 R875,400 R702,000 R110,000
Accumulated Depreciation:Beginning balance - R338,200 R211,000 R 32,000
Adjustments:
Depreciation Expense - R87,540 R140,400 R 13,750
Write-off (34,000)
Ending balance R425,740 R317,400 R45,750
Data and Calculations:a) Land and Building:
Revaluation Surplus = R425,000 (R975,000 - R550,000)
b) Useful life of the new item of equipment = 20 years
c) Additional Motor Vehicle = R140,000
d) Motor Vehicle
Trade-in value at cost = R85,000
Trade-in value Accumulated Depreciation = R34,000 (R85,000 x 20% x 2 years)
Book value of Motor Vehicle = R51,000
Exchange value = 44,000
Loss from trade-in = R7,000
Depreciation Rates and Expense:Land & Plant & Motor Furniture
Building Equipment Vehicles & Fittings
Depreciation Rate 0 10% 20% 12.5%
Depreciation Expense R0 R87,540 R140,400 R 13,750
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Suppose the mean height in inches of all 9th grade students at one high school is
estimated. The population standard deviation is 3 inches. The heights of 10
randomly selected students are 74, 68, 74, 73, 70, 61, 75, 61, 73 and 75.
Answers
61+61+68+70+73+73+74+74+75+75
÷10
=704÷10
=70.4
Explanation:
all data points are divided by the number of data points
Which of the following was not a term used to describe a manager by the government employees participating in a
recent survey?
• resentful
dictator
• failure
effective
Answers
Answer:
Dictator
Explanation:
This week you’re learning some of the characteristics that will help you practice your relationship building skill (trust, mutual respect, mindfulness, diversity and inclusion, and open communication). Discuss how you are applying at least one of these characteristics in your life right now at home, work, or school. What exactly are you doing and how are you doing it? How does that action contribute to relationship building? Remember to answer each part of the discussion prompt in a thoughtful, logical, and well organized manner. A substantial discussion forum response should make connections to course content, professional experiences, and personal experiences. Also, please respond to at least 1 learner in the class offering thoughtful ideas, asking follow-up questions, and demonstrating respect for others. Suggested Discussion Organization: In paragraph 1, discuss how you are applying at least one of the characteristics in your life right now at home, work, or school. What exactly are you doing and how are you doing it? In paragraph 2, explain how that action contributes to relationship building?
Answers
This is a personal question that should be based on your own experience. To create a discussion prompt about how some characteristics help to build relationships, you can structure the paragraphs with situations where you felt part of a group, like building friendships at school for example.
Mutual respect is a characteristic that must be applied in the social life of individuals to increase security, order, ethics and maintenance of a positive society, and must be shared in all social institutions.
How important is ethics to building relationships?Ethics corresponds to the practice of moral values in a society, that is, it is the set of actions that individuals practice in accordance with respect, empathy, the individual values of others, making society a more just and egalitarian place.
Some ideas to increase the practice of mutual respect and ethics is to be cordial and empathetic to individuals, promoting good social and environmental actions for social well-being.
Therefore, ethics must be promoted in all social spheres to generate greater security, compliance and protection of the natural rights of each individual.
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Julio receives utility from consuming food (F) and clothing (C) as given by the utility function . In addition, the price of food is $3 per unit, the price of clothing is $8
per unit, and Julio's weekly income is $50.
Part 2
What is Julio's marginal rate of substitution of food for clothing when utility is maximized? Explain.
Part 3
Julio's marginal rate of substitution equals
Answers
Julio's marginal rate of substitution equals is: 0.38, which is the price of food divided by the price of clothing.
Marginal rate of substitutionUsing this formula
Marginal rate of substitution=Price of food/Price of clothing
Let plug in the formula
Marginal rate of substitution=$3 per unit/$8 per unit
Marginal rate of substitution=0.375
Marginal rate of substitution=0.38 (Approximately)
Therefore Julio's marginal rate of substitution equals is: 0.38, which is the price of food divided by the price of clothing.
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Which of the following statements about capital structure are correct? Select ALL correct answers.
A company needs to consider the current economic climate when making decisions on debt and equity proportions.
A company should always finance its business using as much debt as possible in order to optimize the capital structure.
Having too much equity may dilute earnings and the value of the original investors.
Having too little debt may increase the risk of default in repayment.
?
Answers
Having too much equity may dilute returns and the value of the original investors capital structure are correct.
What is the capital structure?
Capital structure refers to the specific mix of debt and equity used to invest a company's assets and operations. From a corporate perspective, equity denotes a more expensive, permanent source of capital with more significant financial flexibility.
What is capital structure and why is it important?
Capital structure relates to how much money—or capital—is helping a business, financing its assets, and funding its operations. It can also show company investments and capital expenditures that can affect the business's bottom line.
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Real is your boss and the treasurer of Free Cash Flow (FCF). She asked you to help her estimate the intrinsic value of the company's stock. FCF just paid a dividend of GHS 1.00, and the stock now sells for GHS 15.00 per share. Real asked a number of security analysts what they believe FCF's future dividends will be, based on their analysis of the company. The consensus is that the dividend will be increased by 10% during Years 1 to 3, and it will be increased at a rate of 5 5% per year in Year 4 and thereafter. Real asked you to use that information to estimate the required rate of return on the stock
Answers
The required rate of return is 12.97%
What is the required rate of return?
The required rate of return is the rate of return that investors expect from the stock based on its current price GHS 15.00 per share and its forecast dividends.
The stock price is the present value of future dividends discounted at the required rate of return, the unknown
The dividends for the next 3 years would grow at the rate of 10%
Year 1 dividend=1.00*(1+10%)
Year 1 dividend=1.10
Year 2 dividend=1.10*(1+10%)
Year 2 dividend=1.21
Year 3 dividend=1.21*(1+10%)
Year 3 dividend=1.331
Dividend in year 4 and thereafter(forever, that the terminal value) would grow at the rate of 5%
Year 4 dividend=1.331*(1+5%)
Year 4 dividend=1.39755
Terminal value=Year 4 dividend*(1+g)/(r-g)
g=terminal growth rate=5%
r=unknown return
terminal value=1.39755*(1+5%)/(r-g)
share price=1.10/(1+r)^1+1.21/(1+r)^2+1.331/(1+r)^3+1.39755/(1+r)^4+1.39755*(1+5%)/(r-g)/(1+r)^4
we need the value of r such that share price 15.00
Using a trial and error approach, I got 12.97%
share price=1.10/(1+12.97%)^1+1.21/(1+12.97%)^2+1.331/(1+12.97%)^3+1.39755/(1+12.97%)^4+1.39755*(1+5%)/(r-12.97%)/(1+12.97%)^4
share price=15.01
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What are some ways colleges make revenue from their teams?
Answers
Answer:
merch, promotions, tickets to games, sponsorship for players etc
Explanation: