Diego Company manufactures one product that is sold for $71 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials $ 22 Direct labor $ 12 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 864,000 Fixed selling and administrative expenses $ 586,000 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expenses is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.
5. What is the company’s total gross margin under absorption costing?
6 What is the company’s break-even point in unit sales?
7. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 49,000 units? What would have been the company’s absorption costing net operating income (loss) if it had produced and sold 49,000 units? Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.
Answer:
Diego Company
1. The company's total gross margin under absorption costing is:
= $802,000
2. The company's break-even point in unit sales is:
= 50,000 units
3. The company’s variable costing net operating income (loss) if it had produced and sold 49,000 units is:
= ($29,000).
4. The company's absorption costing net operating income (loss) if it had produced and sold 49,000 units is:
= ($29,000).
5. Contribution Format Segmented Income Statement
East West Total
Sales units 36,000 13,000 49,000
Sales revenue $2,556,000 $923,000 $3,479,000
Variable cost of goods sold:
Production costs 1,332,000 481,000 1,813,000 ($37 * 49,000)
Selling and admin. 180,000 65,000 245,000
Total variables $1,512,000 $546,000 $2,058,000
Contribution $1,044,000 $377,000 $1,421,000
Fixed costs:
Manufacturing 280,000 230,000 510,000
Common costs 76,000
Total fixed costs $280,000 $230,000 $586,000
Net income $764,000 $146,000 $835,000
Explanation:
a) Data and Calculations:
Selling price = $71 per unit
East West
Sales units 36,000 13,000
Production units = 54,000
Sales unit = 49,000
Variable costs per unit:
Manufacturing:
Direct materials $ 22
Direct labor $ 12
Variable manufacturing overhead $ 3
Total variable manufacturing costs = $37 per unit
Variable selling and administrative $ 5
Fixed costs per year:
Fixed manufacturing overhead $ 864,000
Fixed selling and administrative expenses $ 586,000 (West $280,000 East $230,000, and $76,000 common)
Total fixed costs = $1,450,000
Total gross margin under absorption costing:
Sales revenue $3,479,000 ($71 * 49,000)
Cost of production:
Variable costs $1,813,000
Fixed costs 864,000 2,677,000
Gross profit $802,000
Break-even point in unit sales:
Sales price = $71
Variable manufacturing cost per unit = $37
Variable selling cost per unit = $5
Total variable cost per unit = $42
Contribution margin per unit = $29
Break-even point in unit sales = FC/contribution margin
= $1,450,000/$29 = 50,000 units
Sales revenue $3,479,000 ($71 * 49,000)
Variable production costs 1,813,000 ($37 * 49,000)
Variable selling costs 245,000 ($5 * 49,000)
Total variable costs $2,058,000
Contribution margin $1,421,000
Fixed costs
Manufacturing 864,000
Selling and admin. 586,000 $1,450,000
Net operating income (loss) ($29,000)
Sales revenue $3,479,000 ($71 * 49,000)
Production costs:
Variable costs 1,813,000 ($37 * 49000)
Manufacturing 864,000
Total production costs 2,677,000
Cost of goods sold $2,677,000
Gross profit $802,000
Period costs:
Selling and administrative 831,000
Net operating income (loss) ($29,000)
In a(n) ________, managers and employees from across the firm work to understand the firm's strengths and weaknesses.
Answer:
HR scorecards
a job applicant should not ask questions during an interview.; you can learn everything you need to know about a company during an interview.; you can ready yourself for an interview by:; a practice interview should be seen as a learning experience.; all of the following information should be researched before a job interview except _____.; when researching a specific job, what information should you be looking for?; conducting research about an occupation, company, or job can increase your employability.; which of the following is an example of a stress question?
All of the following information should be researched before a job interview except salary expectations.
A job applicant should not ask questions during an interview. You can learn everything you need to know about a company during an interview. You can ready yourself for an interview by researching the company, practicing interview questions and answers, and preparing questions to ask the interviewer. A practice interview should be seen as a learning experience.
.
When researching a specific job, what information should you be looking for? Job duties and responsibilities, expected qualifications, salary range, and company culture. Conducting research about an occupation, company, or job can increase your employability.
Which of the following is an example of a stress question? Explain? "Describe a difficult situation you faced at work and how you addressed it."
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e United States and China each produce steel and toys.
The following are the production possibility schedules for each nation.
Answer the questions below based on the PPF schedules.
China
A
B
C
D
E
Steel
8
6
4
2
0
Toys
0
10
20
30
40
United States
A
B
C
D
E
Steel
16
12
8
4
0
Toys
0
12
24
36
48
Which country has absolute advantage in the production of steel?
Which country has absolute advantage in the production of toys?
Which country has comparative advantage in the production of toys?
Which country has comparative advantage in the production of steel?
If the two countries specialize and trade with each other, which country will import steel?
What is the function of the evaporator?
Answer:
The evaporation of water is a physical process by which water changes from a liquid state to a gaseous state or water vapor. This process takes place on the surface of the water from a certain temperature and until the space is saturated with steam.
Typically, there are two alternatives in a replacement analysis. One alternative is to replace the defender now. The other alternative is which of the following?
A. Keep the defender for its remaining useful life.
B. Keep the defender for another year and then reexamine the situation.
C. Keep the defender until an improved challenger better than the current challenger comes to market
D. Keep the defender as long as it's operational.
In replacement analysis, after reviewing the existing machine or 'defender', the two alternatives are to replace the defender now or to keep it for another year and reevaluate.
Explanation:In replacement analysis, there are typically two alternatives to consider after evaluating the performance and cost of the current machine or 'defender'. One alternative is to replace the defender now with a new option or 'challenger'. The other alternative is B. Keep the defender for another year and then reexamine the situation. This approach allows companies to optimize their resource usage by maintaining the current asset as long as its operational and economic efficiency outweighs the benefits of immediate replacement. While alternatives A, C, and D are also potential strategies, businesses often prefer B due to its flexibility and potential to balance maintenance expenses and the benefits of new technology.
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critcism of modern management theory
Critics argue modern management theory is rigid, short-sighted, lacks inclusivity, and limits employee empowerment and engagement.
Modern management theory has received its fair share of criticism. One critique is its overemphasis on rigid hierarchical structures, which can stifle creativity and hinder employee autonomy. Another criticism is the focus on short-term financial gains, often at the expense of long-term sustainability and employee well-being. Critics argue that this approach neglects the importance of social and environmental factors in organizational success. Additionally, modern management theory is often criticized for its lack of inclusivity and failure to address issues of diversity and equity. Furthermore, some argue that the reliance on top-down decision-making and command-and-control structures limits employee engagement and empowerment. These criticisms highlight the need for a more flexible, holistic, and human-centered approach to management that takes into account the complex dynamics of organizations and their impact on individuals and society.For more such questions on Modern management theory:
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(Economics)
In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.
International trade refers to the exchange of goods and services across national borders. It plays a significant role in promoting economic growth and providing several global benefits.
One of the primary advantages of international trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods that they can produce more efficiently and at a lower cost compared to other countries. As a result, resources are allocated more efficiently, leading to increased productivity and higher standards of living.Furthermore, international trade enables countries to access a wider variety of goods and services that may not be available domestically. This increases consumer choices and provides opportunities for individuals to enjoy a higher quality of life. For example, consumers in a landlocked country can still enjoy fresh seafood by importing it from coastal countries. Similarly, individuals in colder climates can purchase tropical fruits from countries where they are grown.Multinational corporations (MNCs) also contribute to the global benefits of international trade. These are companies that operate in multiple countries, with business activities ranging from production to distribution. MNCs play a crucial role in facilitating international trade by establishing global supply chains, investing in foreign markets, and creating jobs. They bring capital, technology, and managerial expertise to host countries, which can lead to economic development and improved living standards.Moreover, MNCs often engage in research and development (R&D) activities, driving innovation and technological advancements. This can have far-reaching benefits for both the host country and the global economy. For instance, a multinational pharmaceutical company conducting R&D in a developing country may discover new drugs or medical treatments that can benefit people worldwide.In conclusion, international trade and multinational corporations provide numerous global benefits. They promote specialization, resource allocation efficiency, and access to a wider variety of goods and services. Additionally, MNCs contribute to economic development, job creation, innovation, and technological advancements. Overall, international trade and MNCs play a crucial role in fostering economic growth and improving the well-being of individuals and nations around the world.
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If the effect of the debit portion of an adjusting entry is to increase the balance of an asset
account, which of the following describes the effect of the credit portion of the entry?
When the debit portion of an adjusting entry is used to increase the balance of an asset account, the credit portion of the entry will decrease the balance of another account, which will be either a liability account or an equity account.
What is the adjusting entry?Adjusting entries are journal entries that are made at the end of an accounting period to modify the accounts' balances. They are done to update and verify revenue and expense accounts' accuracy, as well as to adjust the balance sheet accounts for adjustments that have yet to be recorded.When should adjusting entries be made?Adjusting entries are typically made at the end of an accounting period. For example, adjusting entries may be needed if a company's insurance premiums have been paid in advance, or if a company has earned revenue but has not yet received payment.Adjusting entries are critical in determining the correct profit and loss as well as the balance sheet, which is why they must be accurate and complete.Adjusting entries are required for each financial statement's following types:Income Statement - revenue and expense accounts are adjusted.Balance Sheet - asset, liability, and equity accounts are adjusted.How are adjusting entries made?Adjusting entries are made with the following steps:Step 1: Determine the transaction or event that necessitates an adjustment. Step 2: Determine which accounts are affected by the transaction or event. Step 3: Decide whether each account is to be debited or credited. Step 4: Make the necessary adjusting journal entries.
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Under which ownership type is an owner (or owners) not liable for the company's lawsuits?
A. sole proprietorship
B. partnership
C. franchise
D.corporation
Answer:
D. corporation
Explanation:
"There is an IT company whose strategy is to distinguish itself by developing high quality innovative technology. As the Director of HRM you are responsible for ensuring that HRM practices are.. 250 words
As the director of human resource management (HRM) for an IT firm that seeks to stand out via the development of high-quality, cutting-edge technology, it is my duty to make sure that HRM procedures complement the strategic goals of the business.
We can construct an organizational culture that encourages the creation of high-quality, creative technologies by concentrating on human resource management HRM practices. This will make it possible for the business to draw in and keep top personnel, promote creativity and teamwork, and ultimately accomplish its strategic goals.
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Jody is a physician (not covered by a retirement plan) with a salary of $40,000 from the hospital where she is employed. She supports her husband, Andre, who sells art work and has no earned income. Both are in their twenties. What is the maximum total amount that Jody and Andre may contribute to their IRAs and deduct for the 2015 tax year?
$11000, $5500 for Jody and her husband individually. For the 2015 tax year, Jody and Andre can only deduct up to $11,000 from their IRA contributions.
5,500 each for them. because investments in IRAs are eligible for a tax deduction up to the $5,500 annual contribution limit that applies to each individual.
An individual retirement arrangement (IRA) is a type of pension plan offered by a number of financial institutions in the United States that gives taxpayers tax breaks for saving for retirement for a specific period of time.
A tax-favored personal savings plan known as an individual retirement account (IRA) allows you to save money for retirement. Traditional IRAs and Roth IRAs are two of the many varieties of IRAs. A bank, insurance company, or other financial institution can help you set up an IRA.
What are the benefits of having an IRA, or individual retirement account?The main benefit of traditional IRAs is tax-deferred growth, which means that you won't have to start taking withdrawals until you're 72 years old to pay taxes on what you earn or put into your account. Compared to a typical brokerage account, you invest more upfront in traditional IRAs.
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a formal complaint regarding working conditions or failure by management to stick to its contract
If you have a formal complaint regarding working conditions or a failure by management to adhere to its contract, there are several steps you can take.
First, you should review your employment contract to ensure that your complaint is valid and that the management is in breach of the agreement. If this is the case, you may want to consider talking to your immediate supervisor or HR department. Often, issues can be resolved at this level through open and honest communication.
If you feel that your concerns are not being taken seriously, you may want to escalate your complaint to a higher level of management. This may involve sending a formal letter of complaint outlining your concerns, and requesting a response within a specific timeframe. Alternatively, you may wish to involve a trade union or seek legal advice from an employment lawyer.
It is important to keep detailed records of any conversations or interactions related to your complaint, as well as any supporting evidence such as emails or documents. This can help to strengthen your case and ensure that your concerns are taken seriously.
Ultimately, if your complaint is not resolved satisfactorily, you may need to consider taking further action such as filing a grievance or making a claim to an employment tribunal. However, this should only be done as a last resort, and you should always seek legal advice before taking any such action.
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Question Content Area A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was a.$190,000 b.$222,000 c.$218,000 d.$226,000
Based on the direct materials to the company, the direct labor cost, and the factory overhead, the cost of goods manufactured can be found to be c.$218,000
How to find the cost of goods manufactured?The cost of goods manufactured relates to the cost that a company incurs in order to be able to produce the goods and services. They include only those expenses that were incurred at the site of production such as the direct materials, the direct labor, and the factory overhead.
The cost of goods manufactured can be found by the formula:
= Total cost of manufacturing + Beginning work in process - Ending work in process
Total cost of manufacturing is:
= Direct materials + Direct labor + Factory overhead
= 35,000 + 73,000 + 114,000
= $222,000
This means that the cost of goods manufactured is:
= 222,000 + 28,000 - 32,000
= $218,000
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Old balance: $675.30, Deposit $50.00, Withdrawal $185.00
The new balance on the account, after the deposit and withdrawl, would be $ 540. 30.
How to find the new balance ?To find the new balance, you first have to place the old balance and then add the deposit because deposits increase the balance. Then you remove the withdrawal as these reduce the balance.
The new balance is:
New Balance = Old Balance + Deposit - Withdrawal
The new balance is therefore:
= 675. 30 + 50. 00 - 185. 00
= $ 725. 30 - $ 185. 00
= $ 540. 30
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Question is:
Find the new balance after the following activities :
Old balance: $675.30, Deposit $50.00, Withdrawal $185.00
What is the current value of a $1000 Treasury inflation-protected security if the reference CPI is 203.19 and the current CPI is 205.47? The coupon rate is 3 percent and the bond was issued two years ago.
Answer:
the current value fo $1,000 is $1,011.22
Explanation:
The computation of the current value of $1,000 is shown below:
Current value
= Price × (Current CPI ÷ Reference CPI) × 100
= $1,000 × (205.47 ÷ 203.19)
= $1,011.22
We basically applied the above formula so that the current value would come
Hence, the current value fo $1,000 is $1,011.22
Answer the following questions on the basis of the monopolist's situation is illustrated in the following graph.
a. At what output rate and price does the monopolist operate?
b. In the equilibrium, approximately what is the firm's total cost and total revenue?
c. What is the firm's economic profit or loss in equilibrium?
The following answers are based on a monopoly economy.
The output rate and the price at which the monopolist operates based on the graph is 100 quantities at $10.In the market equilibrium, the firm's total cost and total revenues are $750 and $1000 respectively. The firm's economic profit in the equilibrium is $250.What is a monopoly?A monopoly, as defined by Irving Fisher, is a market with "no competition," resulting in a scenario in which a certain individual or organization is the exclusive supplier of a given product.
To arrive at answer a, we need to recall that the equilibrium of a monopolist is when the Marginal Cost equals the Marginal Revenue and the Marginal Cost Curve (MC) cuts the Marginal Revenue Curve (MR ) from below.
At this point, the equilibrium output is 100, and the equilibrium price is $ 10 for every unit of production.
For the answer is b, given that the firm is producing 100 units of goods at an average total cost of $7.5 (derived from the point that aligns with MR = MC), therefore,
Total Cost = Equilibrium Output * ATC (Average Total Cost)
= 7.5 * 100
= $750
To arrive at answer c,
Recall that Economic profit is the difference between the money collected from the sale of a product and the expenses of all inputs utilized, as well as any opportunity costs, is the economic profit or loss.
Hence, Economic Profit = Total Revenue (TR) Less Total Cost (TC)
= $1000 - $ 750
= $250
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Conduct a needs assessment to determine how a network could benefit your family. Use three to five sentences to describe the results of your assessment. If you have more than one computer in your home, conduct the needs assessment based on the number of computers in your home. If you don't have one or more computers in your home, conduct the needs assessment as though every family member in your home over the age of five had their own computer.
The improvement of communication and information accessibility, the practical sharing of resources, data sharing, increased cost efficiency, and affordability are all advantages of family networks.
What use do needs analyses of computer networks serve?The organization's current IT infrastructure, operational processes, security, compliance, management, and performance are confirmed by a network review. This aids in evaluating the state and overall health of your IT infrastructure and reveals any areas that need to be improved.
What is the biggest benefit of a network?Your network can be a fantastic source for novel perspectives and ground-breaking concepts that will help you in your career. Learning from the problems, experiences, and goals of others is one of networking's key benefits.
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Which of the following careers does NOT work with patients or the public?
A.
Social worker
B.
Laboratory technician
C.
Hair stylist
D.
Substance abuse counselor
Answer:
B. Laboratory technician
Explanation:
Laboratory technicians don't work with patients or the public.
Answer:
B.Laboratory technician
Explanation:
"A lab technician analyzes samples such as body fluids and chemicals. They assist scientists and medical personnel with tasks such as keeping records and conducting tests." They do not have patients, or work with the public, they work for them, to make scientific analises. Hope this help!!
What is a method that managers can use to motivate employees?
1.Encouraging employees to specialize
2.Investing in new technology
3.Offering performance-based financial rewards
4.Sharing customer information with employees
A method that managers can use to motivate employee is offering performance-based financial rewards.
What is motivation?Motivation is the process that guides and keeps people towards ensuring set goals are meet. It is what keeps one going, which act as encourage and spur one to do more.
Managers always want an improved performance from their employees. One of the method they use is to offer them performance-based financial rewards if they are able to meet and exceed certain targets.
Hence, a method that managers can use to motivate employee is offering performance-based financial rewards.
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What is a work-study program?
(1 point)
O money given to somebody by an organization to help pay for their education
a type of loan designed to help students pay for postsecondary education and the associated fees, such as tuition, books and supplies, and living
expenses
O money, i.e., financial assistance, given by a government, organization, or person for a specific purpose
O
a federally funded program in the United States that assists students with the costs of postsecondary education by finding them employment
the work-study program is a federally funded program in the United States that assists students with the costs of postsecondary education by finding them employment. option (D)
A federally funded program in the United States that helps students with the costs of post-secondary education is the Federal Work-Study program, formerly known as the College Work-Study Program and commonly referred to as just "Work-study" in the country. An internship or work-study position in your academic area can give you valuable experience and even influence your future career decisions. Work-study is a fantastic way for students to make additional money while enhancing their resumes because many schools provide simple ways to locate jobs that are flexible and accommodating to class schedules. the work-study program is a federally funded program in the United States that assists students with the costs of postsecondary education by finding them employment.
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What is the total payment
required to pay off a promissory
note issued for $750.00 at 6%
ordinary interest and a 90-day
term?
A. $761.25
C. $755.40
B. $780.00
D. $756.00
The total payment required to pay off a promissory note issued for $750.00 at 6% ordinary interest and a 90-day term is: A. $761.25.
Total paymentUsing this formula
Total payment=Promissory note+(Promissory note× Ordinary interest× 90 day term/360)
Where:
Promissory note=$750
Ordinary interest=6%
Let plug in the formula
Total payment= $750 + ($750× 6% × 90 days ÷ 360 days)
Total payment= $750+ $11.,25
Total payment= $761.25
Therefore the total payment required to pay off a promissory note issued for $750.00 at 6% ordinary interest and a 90-day term is: A. $761.25.
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Now that you have a signed listing contract and many of the required disclosures, you need to develop a plan to market the property. Some of the obvious steps are to post the property on the local MLS and to put a sign on the front lawn. But it should not stop there.
All of the answers are correct. Communication skills are essential for successful salespeople, and all of the options listed are important to consider when communicating with potential buyers.
What is Communication skill?Communication skills refer to the ability to effectively exchange information, whether verbally or non-verbally. This includes both speaking and listening, as well as the ability to effectively interpret and respond to both spoken and unspoken messages. Examples of communication skills include active listening, open-mindedness, empathy, respect, collaboration, assertiveness, and the ability to give and receive feedback. These skills are important in any context, from interpersonal relationships to professional interactions. Developing strong communication skills can help you build relationships, increase your confidence, and advance in your career.
Listening is as important as talking, and face-to-face communication is often the most effective two-way communication. While letters can sometimes be a one-way form of communication, they are not necessarily the least effective.
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Why was the sport of volleyball invented?
Answer:
History has it that William G. Morgan, who invented the game of volleyball in 1895, came up with the idea so that people who found basketball's 'bumping' or 'jolting' too strenuous could have an alternative physical activity to fall back on.
Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:
Item Mortar Corporation Granite Company
Debit Credit Debit Credit
Cash $38,000 $25,000
Accounts Receivable 50,000 55,000
Inventory 240,000 100,000
Land 80,000 20,000
Buildings and Equipment 500,000 150,000
Investment in Granite Company Stock 202,000
Cost of Goods Sold 500,000 250,000
Depreciation Expense 25,000 15,000
Other Expenses 75,000 75,000
Dividends Declared 50,000 20,000
Accumulated Depreciation $155,000 $75,000
Accounts Payable 70,000 35,000
Mortgages Payable 200,000 50,000
Common Stock 300,000 50,000
Retained Earnings 290,000 100,00
Sales 700,000 400,00
Income from Subsidiary 45,000
$1,760,000 $1,760,000 $710,000 $710,000
Additional Information:
a. On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fair value of $191,250.
b. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date.
c. Granite's depreciable assets had an estimated economic life of 11 years on the date of combination.
d. The difference between fair value and book value of Granite's net assets is related entirely to buildings and equipment.
Required:
Give all journal entries recorded by Mortar related to its investment in Granite during 20X7.
Answer:
gouuiydsiuysduitfsdjtydsf iusdtyfdm ssd gthds dhsgsd jsdfgs sdjtsd ngds hgtsd
Explanation:
sdhfd dyhdf jkdfgd fhkdfksdgusbmnj64 uey734n vui8 34bnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnb ky khr uy
name the institution that investigates anti-competitive behaviour on companies in south africa
Explanation:
the competition committee of southafrica, set up in the year 1989 by the southafrica government under the competition act to empower to investigate, control and restrict business, abuse of dominant positions and merges in order to achieve equity and efficiency in the southafrica economy.
The 15-year average return for the S&P 500 from January 1973 to December 2016 (29 separate 15 year periods) was as high as a 20% average annual return and as low as a 3.7% average annual return. Additionally, the average dividend yield for the S&P is 4.11% and the average annual dividend growth rate is 6.11%.
Using this information, please compare the investment in the 5% 15-year corporate bond with a $100,000 investment in a stock with a 3.7% dividend yield (10 percent less than the S&P 500 average yield) and a 3% dividend growth rate (50 percent of the S&P 500 dividend growth rate).
The annual investment returns are as follows:
Year 1 (13.40%) Year 2 (23.37%) Year 3 26.38% Year 4 8.99%
Year 5 3.00% Year 6 13.62% Year 7 3.53% Year 8 (38.49%)
Year 9 23.45% Year 10 12.78% Year 11 0.00 Year 12 13.41%
Year 13 29.60% Year 14 11.39% Year 15 (0.73%)
The bond interest payment of 5 percent is paid annually and not reinvested. To compare accurately with the bond investment, the stock dividend will not be reinvested, but paid annually as well.
Please calculate the value of the stock account at the end of each year and the dividend income from the stock on an annual basis.
Once you have performed the calculations, please let me know if you prefer to invest in a 5% corporate bond for 15 years or the stock and why.
What is the value of the stock after year 2? Year 8? Year 11? When does the annual dividend income of the stock exceed the annual interest income of the bond?
1. The value of the stock account after Year 2 is $155,401.626.
2. The value of the stock account after Year 8 is $96,110.0674.
3. The value of the stock account after Year 11 is $96,110.0674.
4. The annual dividend income of the stock exceeds the annual interest income of the bond at the end of Year 15.
Bond interest rate: 5%
Stock dividend yield: 3.7% (10% less than S&P 500 average yield)
Stock dividend growth rate: 3% (50% of S&P 500 dividend growth rate)
We'll assume an initial investment of $100,000.
Year 1:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $100,000 + ($100,000 * 0.2337) = $123,370
1. Year 2:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $123,370 + ($123,370 * 0.2638) = $155,401.626
2. Year 8:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $155,401.626 + ($155,401.626 * (-0.3849)) = $96,110.0674
3. Year 11:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $96,110.0674 + ($96,110.0674 * 0) = $96,110.0674
4. At the end of Year 15, the dividend income of the stock exceeds the interest income of the bond.
Stock dividend income: $100,000 * 0.037 = $3,700
Bond interest income: $100,000 * 0.05 = $5,000
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Flexibility/Flexiblization a. Describes the ability of contemporary corporations to respond to market changes quickly by bribing the president b. Describes the ability of contemporary corporations to respond to market changes quickly by bribing union bosses c. Describes the ability of contemporary corporations to respond to market changes quickly by using subcontractors instead of hiring more regular employees. d. Describes the ability of contemporary corporations to respond to market changes quickly by hiring more regular employees instead of using subcontractors
Flexibilization/Flexibility describes
" The ability of contemporary corporations to respond to market changes quickly by using subcontractors instead of regular employees". (C)
Some firms would rather hire flexible subcontractors instead of regular or internal employees, this helps them cut cost, they can also increase or decrease their workforce easily.
Flexibilization may undermine labor rights because these subcontractors don't have the same right as regular employees and job security is not assured.
Hence, Flexibilization basically means outsourcing jobs to sub contractors as a result of market changes rather than hire regular employees.
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T/F,when applying the rule of 72, the error increases when you use a rate progressively lower than eight percent.
The statement "when applying the rule of 72, the error increases when you use a rate progressively lower than eight percent." is true. When applying the rule of 72, the error increases when you use a rate progressively lower than eight percent.
This is because the rule of 72 uses an assumed rate of 8%, and a lower rate would result in a longer time for the amount to double, leading to an increased error. In the other side, the rule of 72 is an approximation and works best with rates between 6% and 10%. As the rate decreases below 8%, the approximation becomes less accurate and the error increases.
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Which of the following is a disadvantage of virtual teams?
O a. Limited market opportunities
O b. Poor leadership
O c. Decreased productivity
Od. Inefficient knowledge transfer
Memele
The disadvantage of virtual teams from the options that we have here would be Decreased productivity.
What is meant by virtual teams?This is the term that is used to refer to the group of workers that are known to communicate with themselves and also work together over a network or through the internet.
These people do not work under the traditional work environment. Tasks could be completed from the comfort of their homes. Hence we can say that the disadvantage of virtual teams from the options that we have here would be Decreased productivity.
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