A credit manager who is well versed in lessons learned from the 2007–2009 subprime mortgage crisis in the US
is overseeing the structured credit book of a bank in order to identify potential problems of information flow
(frictions) between the parties involved in the securitization process. Which of the following is a correct
combination of a potential friction in the securitization process and an appropriate mechanism to mitigate that
friction?
A. Friction between the asset manager and the investor: Adverse selection problem. This problem can
be mitigated by the asset manager charging due diligence fees to the investor.
B. Friction between the arranger and the originator: Model error problem. This problem can be mitigated by
the arranger providing a credit enhancement to the securitized products with its own funding.
C. Friction between the investor and credit rating agencies: Principal-agent conflict. This problem can be
mitigated by requiring credit rating agencies to be paid by originators and not by investors for their
rating services.
D. Friction between the servicer and the mortgagor: Moral hazard problem. This problem can be mitigated
by requiring the mortgagor to escrow funds for insurance and tax payments.
Answers
Friction between the asset manager and the investor - Adverse selection problem. The mechanism to mitigate this friction is for the asset manager to charge due diligence fees to the investor. So, the correct combination is A.
A. The correct combination is friction between the asset manager and the investor: adverse selection problem. This problem refers to the information asymmetry between the asset manager (who has more information about the assets) and the investor. To mitigate this friction, the asset manager can charge due diligence fees to the investor, which incentivizes the asset manager to provide accurate and reliable information.
B. The incorrect combination is friction between the arranger and the originator: model error problem. Model error problem refers to the potential errors or limitations in the financial models used in the securitization process. To mitigate this friction, the arranger can provide a credit enhancement to the securitized products using external mechanisms such as insurance or guarantees.
C. The incorrect combination is friction between the investor and credit rating agencies: principal-agent conflict. Principal-agent conflict refers to the misalignment of interests between the investor and the credit rating agencies. To mitigate this friction, credit rating agencies should be paid by investors for their rating services, ensuring independence and reducing the potential bias.
D. The incorrect combination is friction between the servicer and the mortgagor: moral hazard problem. Moral hazard problem refers to the incentive for the servicer to take excessive risks, knowing that losses will be borne by the mortgagor. To mitigate this friction, requiring the mortgagor to escrow funds for insurance and tax payments creates a financial obligation that aligns their interests and reduces the moral hazard.
In summary, the correct combination is A: friction between the asset manager and the investor with the appropriate mechanism of charging due diligence fees to the investor to mitigate the adverse selection problem.
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Related Questions
TRUE / FALSE. can be a formidable barrier to creativity in organizations because they are so much a part of everyday life.
Answers
FALSE. Rules and procedures, when properly designed and implemented, can actually foster creativity in organizations rather than being barriers to it.
While it is true that excessive or rigid rules can stifle creativity, well-designed guidelines can provide structure, clarity, and a framework within which creative ideas can thrive.
Rules and procedures help establish boundaries, ensuring that individuals understand the expectations and limits within which they can explore new ideas. They can also facilitate efficient decision-making and coordination, allowing individuals to focus their creative energies on problem-solving rather than on figuring out how to navigate the organization.
Effective organizations strike a balance between providing the necessary structure and freedom for innovation. By establishing a supportive and flexible environment, organizations can harness creativity while still maintaining order and achieving their goals.
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A real estate broker has a computerized loan origination (CLO) terminal in her office. Because there are more than a dozen lending institutions in the city, the broker has found that the CLO greatly streamlines the application process for her clients. She sits down at the terminal with a homebuyer and these three events take place:
1. The broker explains that there is a fee for using the terminal of one-half point, based on the loan amount, and that the homebuyer may choose to finance the fee.
2. The broker explains only the different kinds of services offered by the two local lenders who pay her a monthly screen fee to be included on the CLO system.
3. The broker helps the homeowner answer the on-screen qualification questions.
Which of these events is an improper use of a CLO system?
a. 1 only
b. 2 only
c. 2 and 3
d. 1
Answers
Answer:
d because d is the best answe
Membership in the Future Business Leaders of America (FBLA) has nearly limitless benefits, including scholarships.
True
False
Answers
Answer:
True.
Explanation:
I think this will be the answer.
An innovative business idea that no one has never had
Answers
An innovative business idea that no one has never had is Offering virtual assistance to other businesses.
What is innovative business idea ?innovative business idea can be described as an idea in business that cn be developed so that it can be a way to earn a living by providing the services or the goods to the consumer.
It should be noted that this innovation can be the one that no one has ever done or the modification of the one that has been in exisitence, however providing the virtual assistance serves as one of the innovation in business that can ring profit.
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Complete question:
State An innovative business idea that no one has never had
How is a person counted as unemployed ?
Answers
This management theory assumes there is no one best way to manage?
Answers
The contingency approach to management is based on the idea that there is no single best way to manage. Contingency refers to the immediate contingent circumstances. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances.
what is often the most important factor in determining a film’s financial success?
Answers
The answer is Casting, The success of a film's business is frequently determined by its casting.
Casting, sometimes known as a casting call, is a pre-production procedure used in the performing arts, such as theatre, Film, or television,
to choose a certain sort of actor, dancer, singer, or extra for a specific character or part in a script, screenplay, or teleplay.
This method may be applied to an audience-targeted motion picture, television show, documentary film, music video, drama, or advertisement.
A series of auditions are held in front of a casting panel, which is made up of members of a theatrical production such as the director and producer.
However, a casting panel for a specific television show may include a television producer, and a casting panel for a particular film production may include a film producer, film director, and/or choreographer.
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Determine the bid price for a project that you are estimating has the following itemized costs Direct Labor Cost - $200,000 Direct Material Cost - $350,000 Direct Equipment Cost - $200,000 Sales Tax - 8% Markups & other add-ons - $150,000 $928,000 $972.000 $960,000 $944.000
Answers
The bid price for the project is determined by summing up the itemized costs, adding the sales tax, and including markups and other add-ons. The provided options range from $928,000 to $972,000.
What is the bid price for the project considering the itemized costs, sales tax, and markups?To determine the bid price for the project, you would sum up the itemized costs and add the applicable sales tax and markups.
Based on the given options, the bid prices range from $928,000 to $972,000.
The bid price should consider the direct labor cost of $200,000, direct material cost of $350,000, direct equipment cost of $200,000, sales tax of 8% (which would vary based on the location and tax regulations), and markups and other add-ons of $150,000.
The specific bid price within the provided options would depend on the calculations of the sales tax and markups applied.
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which type of retirement plan guarantees a specified level of retirement income?
Answers
The type of retirement plan that guarantees a specified level of retirement income is a defined benefit plan.
A defined benefit plan is a type of retirement plan in which the benefits are defined, or determined, in advance, typically by a formula based on the employee's salary and years of service. It is a pension plan that guarantees a specified level of retirement income to the employee. These plans are typically funded by employer contributions, and the employer bears the investment risk. They are becoming increasingly rare, as many employers are moving toward defined contribution plans, such as 401(k)s, which do not guarantee a specific retirement income level for employees.
The Pirates of Penzance Company delivers goods to various areas around the world. The company has a great reputation for being prompt on its deliveries. Blackbeard is the owner of the company. Davy Jones works for Blackbeard as an underpaid sailor. Davy knew that Blackbeard loved to read while they were transporting their deliveries and that his favorite book was The Adventures of Huckleberry Finn. Davy gave Blackbeard a valuable first edition of Twain's work hoping that Blackbeard would give him a raise in pay. A day later, Blackbeard promised to give Davy a pay raise of 18% because he was very pleased with the book. The following week when Davy received his check, he noticed that the raise was missing and he asked Blackbeard for the money. Blackbeard refused to give him his raise and Davy filed suit. Decide the outcome.
Answers
The outcome here is that the court would make blackbeard to give the pay raise that he promised to Davy.
The breach of promise.Davy may decide to sue because there has been a breach here. He may decide to sue under the proprietary estoppel.
He already met with what was required of him by providing the book to Blackbeard. It was Blackbeard that was unable tyo meet up with his own part.
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A registered representative gives a speech to 30 retail clients about investing in mutual funds, and shows a chart that compares the growth of the fund to the Standard and Poor's 500 average. This action is:
Answers
Answer:
Retail communication
Explanation:
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Identify which basic assumption of accounting is best described in each/some item(s) presented below:a) The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.b) Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effect of inflation.c) Walgreen Co. reports current and non-current classifications in its balance sheet.d) The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes.
Answers
Answer:
a) The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.
Periodicity principle: companies have to report their financial statements and operations over standard periods of time.
b) Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effect of inflation.
Monetary unit: companies have to report their financial statements in a unit of valid currency.
c) Walgreen Co. reports current and non-current classifications in its balance sheet.
Going concern: companies are expected to continue operating in the future.
d) The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes.
Economic entity: companies must report the transactions that involve them and their subsidiaries, but not the transactions that involve their owners or other companies.
if a registered investment adviser takes custody of client funds or securities and deposits them with a custodian, which statements are true?
Answers
True statements:
1. The registered investment adviser has taken custody of client funds or securities.
2. The client funds or securities have been deposited with a custodian.
When a registered investment adviser takes custody of client funds or securities and deposits them with a custodian, it means that the adviser has physically obtained possession or control over the client's assets. This is a significant responsibility and subject to specific regulations and requirements.
By taking custody, the investment adviser assumes the duty to safeguard and protect the client's assets. Depositing the funds or securities with a custodian adds an additional layer of security and protection for the client's assets.
The custodian, typically a third-party financial institution such as a bank or a broker-dealer, holds and maintains the client's assets on behalf of the investment adviser. The custodian is responsible for safekeeping and executing transactions related to the assets, as instructed by the investment adviser or authorized by the client.
Taking custody and using a custodian are essential steps to ensure the integrity and security of client assets, minimizing the risk of misappropriation or unauthorized use. These practices are in place to protect the interests of the clients and maintain the trust and confidence in the investment adviser.
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in the country of hazard, businesses use new smart cell phones to speed up many tasks such as sales recording, inventory checks, purchase orders etc. which components of growth are recorded here
Answers
Businesses in the nation of Azard employ the new smartphones to streamline a variety of processes, including sales records, inventory checks, purchase orders, etc. Physical capital and technology are the growth-related factors mentioned here.
It is obvious that more technology is being employed to complete earlier tasks because new smart cell phones are being used in business. This represents technological advancement. It is purportedly done with cell phones.
The company's tangible assets are increased by these cell phones. The addition of physical capital must therefore be taken into account as well.
Physical capital is made up of tangible, manufactured goods that companies invest in or buy and use to produce goods. Fixed capital also includes reusable physical assets, such as manufacturing equipment, that are not used up in the course of production.
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The part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final consumer is called
Answers
Answer:
Logistics
Explanation:
Logistics is the part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final consumer. The main objective of logistics is to minimize the use of resources. It is an organizational function which shares responsibilities with Marketing and Production.
A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has (Macauley) duration of 11.54 years and convexity of 192.4. The bond currently sells at a yield to maturity of 8%. a) Find the price of the bond if ytm falls to 7% (use financial calculator or spreadsheet).
Answers
The price of the bond if the yield to maturity falls to 7%, based on the period and amount will be $1,620.45.
What is the price of the bond at 7%?We shall assume that the bond has a face value of $1,000.
The coupon is:
= 12% x 1,000
= $120
The price is:
= (Coupon x Present value interest factor of annuity, 30 years, 7%) + Face value of bond / ( 1 + rate) ^ number of periods
= (120 x 12.409) + (1,000 / (1 + 7%)³⁰)
= $1,620.45
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Your friend needs our help. They're thinking of opening a coffee shop in a new city and wants our business advice before they proceed. Should they do it?
Answers
It is recommended that your friend conduct a thorough market analysis, including researching the local economy, competition, and customer demographics, before making a final decision.
Here are some key factors to consider before proceeding:
Market demand: A market for coffee shops in the new city and minimal room for competition
Location: The proposed location should be easily accessible and visible to potential customers
Competition: What is the competition like in the area and how will the new coffee shop differentiate itself?
Business plan: Does your friend have a solid business plan in place, including a marketing strategy, budget and financial projections?
Capital: Does your friend have enough capital to start the business and sustain it through the early stages?
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Matcha green tea is primarily cultivated by Japanese farmers. Suppose that Matcha green tea grows in popularity as its health benefits, namely its lower caffeine content, become known, and at the same time the government reduces taxes imposed on Japanese tea farmers. What is the likely effect on the equilibrium price and quantity in the Japanese Matcha tea market
Answers
Answer:
equilibrium quantity would increase
there would be an indeterminate effect on equilibrium price
Explanation:
Due to the increase in popularity of the tea, the demand for the tea would rise. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would rise.
If taxes are reduced, the cost of producing tea would reduce. This would encourage producers to start making tea. As a result, the supply of tea would increase. This would lead to a rightward shift of the supply curve for tea. As a result, equilibrium price would fall and equilibrium quantity would increase.
Taking these two effects together, there would be an increase in equilibrium quantity and there would be an indeterminate effect on equilibrium price
Which defines a bank as used in finance?
a. a financial institution where customers deposit money, withdraw previously deposited money, and borrow money through loans fund
b. the land alongside or sloping down to a river or lake
c. a depository account
d. to tilt or cause to tilt sideways in making a turn
Answers
Option a. A financial institution where customers deposit money, withdraw previously deposited money, and borrow money through loans fund is correct option of the given statement.
What qualifies a bank as being utilized in finance?A bank's economic role, the services it provides to customers, or the legal basis for its existence can all be used to characterize it. A variety of financial services are available through them, including credit cards, savings accounts, and checking and debit accounts.
Why is it known as a bank?The word "bank" derives from the Italian word "banco," which means "a bench," since Italian merchants negotiated agreements to lend and borrow money next to benches during the Renaissance. They positioned the cash on the bench. Since the dawn of time, simple financial records have existed.
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Answer: 1. a financial institution where customers deposit money, withdraw previously deposited money, and borrow money through loans fund
2. -Store credit cards co-branded with VISA, Mastercard, or Discover can be used anywhere that those cards are accepted.
-Banks issue credit cards as well as debit cards.
3. depository accounts, loans, mortgages, credit cards, safety deposit boxes
4. A charge card is paid off each month while a credit card has a revolving credit line.
5. American Express
Explanation: I took the same quick check and got 100%, hope it helps!
A person-to-person payment app could be used in each of the following scenarios EXCEPT:__________.
i. Tina pays her neighbor $200 for breaking his window with a softball.
ii. Mia pays Randy the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group.
iii. Ahmed's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35 for their share of the registration fee.
iv. Rafael writes the whole monthly rent check to the landlord, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent.
Answers
A person-to-person payment app could be used in each of the following scenarios EXCEPT:
i. Tina pays her neighbor $200 for breaking his window with a softball.
ii. Mia pays Randy the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group.
iii. Ahmed's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35 for their share of the registration fee.
iv. Rafael writes the whole monthly rent check to the landlord, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent. The correct answer is (i) Tina pays her neighbor $200 for breaking his window with a softball.
In this scenario, a person-to-person payment app may not be the most suitable option. This situation involves compensation for property damage, which typically falls under insurance claims, personal agreements, or legal settlements. A person-to-person payment app is more commonly used for everyday transactions, splitting bills, paying friends, or making purchases.
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Frictional unemployment occurs because in a world of imperfect information, it takes ________ for people to find jobs.
Answers
Because it takes time for people to find work in a society with poor information, frictional unemployment happens.
The unemployment that results from regular labor turnover, such as persons joining and leaving the labor force, as well as the continuous creation and destruction of jobs, is known as frictional unemployment. It comprises employees who are either looking for employment or holding out for a job soon.
Frictional unemployment has the following examples: employees looking for new jobs after quitting their existing ones, employees want to shift careers. Those looking for their first job after graduating from college or those starting their first career in the workforce.
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Quantitative industry-attractiveness scores can be calculated based on
Multiple select question.
- the presence of cross-industry strategic fit.
- emerging threats and opportunities.
- current long-term interest rates.
- market size and projected growth rate.
Answers
Current long-term interest rates are not typically used as a factor in calculating industry-attractiveness scores, as they are not directly related to the attractiveness of an industry. Option (b) and option (d) is correct answer.
Instead, factors related to market size, growth potential, and competitive dynamics are generally considered to be more relevant in determining the attractiveness of an industry.
To calculate quantitative industry-attractiveness scores, you should consider:
- Emerging threats and opportunities
- Market size and projected growth rate
These factors help in assessing the overall attractiveness of an industry by using measurable and objective data. The presence of cross-industry strategic fit and current long-term interest rates are not directly related to quantitative industry-attractiveness scores. Therefore correct answer is (b), (d).
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Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 400 bushels of corn and 100 bushels of oats, while Oatland will produce and consume 60 bushels of corn and 400 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by
Answers
Answer:
see. I hope it's helpful for you lolExplanation:
i need friend lol can you my friend
You have a goal of having $180,000 four years from today. The return on the investment is expected to be 8% and will be compounded semi-annually. The amount that needs to be invested today is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)
$132,226.
$90,000.
$131,526.
$120,000.
Answers
$131,526
the closest amount that needs to be invested today is $131,526
To calculate the present value of the investment, we need to use the formula: PV = FV / \((1 + r/n)^(n*t)\), where PV is the present value, FV is the future value, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years. Plugging in the given values, we get:
PV = 180,000 / (\(1 + 0.08/2)^(2*4)\)
PV = $131,526
Compound interest: It refers to the interest that is calculated not only on the principal amount but also on the accumulated interest of previous periods. In other words, it is the interest earned on interest.
Semi-annually: It means that the interest will be compounded twice a year, i.e., every six months.
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Russell Co. reports sales revenue of $30,600 and interest revenue of $5,600. Its comparative balance sheet shows that accounts receivable decreased $4,600 and interest receivable increased $1150. Compute cash provided by operating activities using the direct method. (Amounts to be deducted should be indicated by a minus sign.) Cash Receipts from Operations (Direct) Cash provided by operating activities $ 0
Answers
The cash provided by operating activities using the direct method is $41,950.
To compute cash provided by operating activities using the direct method, we need to consider the changes in accounts receivable and interest receivable.
Cash Receipts from Operations (Direct) can be calculated as follows:
Sales revenue: $30,600
Decrease in accounts receivable: -$4,600 (since accounts receivable decreased)
Cash received from sales = Sales revenue - Decrease in accounts receivable
Cash received from sales = $30,600 - (-$4,600)
Cash received from sales = $30,600 + $4,600
Cash received from sales = $35,200
Interest revenue: $5,600
Increase in interest receivable: $1,150 (since interest receivable increased)
Cash received from interest = Interest revenue + Increase in interest receivable
Cash received from interest = $5,600 + $1,150
Cash received from interest = $6,750
Total cash provided by operating activities (direct method) = Cash received from sales + Cash received from interest
Total cash provided by operating activities = $35,200 + $6,750
Total cash provided by operating activities = $41,950
Therefore, the cash provided by operating activities using the direct method is $41,950.
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10
Drag each tile to the correct location on the table.
Match each feature to the correct social media platform.
encourages
groups to
exchange ideas
often used
with other
types of social
media platforms
gets quick
messages out
to the public
connects users
within a
particular
geographic
space
Social
Networking
Microblogging
Video Sharing
Discussion
Forum
Answers
Microblogging is a form of social media that allows users to share short and concise messages with their followers in real-time.
This type of platform is designed for quick and easy communication, often limited to a certain number of characters or words per post.
Microblogging is ideal for getting immediate information out to a large audience, such as breaking news or updates on event.
It also encourages interaction and engagement between users, who can comment or share posts with their own followers.
While not limited to any specific topic, microblogging platforms are often used for sharing personal opinions, thoughts, and experiences, and can serve as a means of self-expression and community building.
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Describe how to find conversion factors involving squares O A. To find conversion factors involving squares, square one side of the conversion factor and then divide the other side by twoO B. To find conversion factors involving squares, multiply both sides of the conversion factor by two O C. To find conversion factors involving squares, square both sides of the conversion factor O D. To find conversion factors involving squares, square both sides of the conversion factor and then divide by two.
Answers
To find conversion factors involving squares, square both sides of the conversion factor Option C
How to find conversion factors involving squares?Generally, there are several common conversion factors involving squares, including:
To convert square feet to square meters, multiply by 0.092903.To convert square meters to square feet, multiply by 10.7639104.To convert square yards to square meters, multiply by 0.83612736.To convert square meters to square yards, multiply by 1.19599005.To convert square miles to square kilometers, multiply by 2.58998811.To convert square kilometers to square miles,This will give you a conversion factor that is raised to the power of 2, which is necessary when converting units that involve squares, such as area.
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Bow Wow Products manufactures dog biscuits that are advertised to help with digestion. Sales for these biscuits have been less than some of their other products, and management at Bow Wow is considering whether they would discontinue the manuacture and sale of the dog biscuits. The Bow Wow cost accountants have compiled the following information regarding the dog biscuit product line: Sales $ 840,700
Variable expenses $ 436,800
Fixed manufacturing expenses $285,600 Pixed selling and administrative expenses $ 243,800 The cost accountants have determined that $202,000 of the fixed manufacturing expenses would be avoidable if the dog biscuits product line was discontinued. In addition, $175,100 of the fixed selling and administrative expenses would be avoidable. Required: How would you advise management at Bow Wow Products? Should the dog biscuit product line be dropped? Net operating income (loss) would by if the dog biscuit product one was dropped. Therefore, the product dropped
Answers
If bow wow products drops the dog biscuit product line, the net operating income would increase by $26,800.
advise management at bow wow products to discontinue the dog biscuit product line. dropping the product line would result in a net operating income increase of $36,300.
to determine whether the dog biscuit product line should be dropped, we need to compare the contribution margin with the avoidable fixed expenses.
contribution margin = sales - variable expenses
contribution margin = $840,700 - $436,800 = $403,900
total avoidable fixed expenses = avoidable fixed manufacturing expenses + avoidable fixed selling and administrative expensestotal avoidable fixed expenses = $202,000 + $175,100 = $377,100
if the dog biscuit product line is dropped, the contribution margin would no longer be offset by the avoidable fixed expenses. this means the net operating income would increase by the amount of the avoidable fixed expenses.
net operating income increase = contribution margin - total avoidable fixed expenses
net operating income increase = $403,900 - $377,100 = $26,800
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Unions Group of answer choices and firms paying wages above equilibrium to improve worker effort both create structural unemployment. creates frictional unemployment, while firms paying wages above equilibrium to improve worker effort creates structural unemployment. and firms paying wages above equilibrium to improve worker effort both create frictional unemployment. creates structural unemployment, while firms paying wages above equilibrium to improve worker effort creates frictional unemployment.
Answers
Answer:
And firms paying wages above equilibrium to improve worker effort both create structural unemployment
Explanation:
In the case when union and firm would pay the wages that are over & above equilibrium in order to improve the effort of the workers so this would happen to develop the structural unemployment as it deals with the change in the technology
So first option is correct
But the other options would be considered incorrect
a recent research signified the large health benefits of eating cooked tomatoes. holding other things constant, this will cause a. the demand curve for tomatoes to shift to the right b. the demand curve for tomatoes to shift to the left c. the supply curve for tomatoes to shift to the right d. the supply curve for tomatoes to shift to the left
Answers
The recent research highlighting the health benefits of eating cooked tomatoes would likely cause the demand curve for tomatoes to shift to the right. Option a is correct.
This is because the increased awareness of the health benefits would lead to a higher demand for tomatoes, as more people would be inclined to consume them. However, it would not affect the supply curve for tomatoes, as the supply is determined by factors such as production and availability, which are not directly influenced by health benefits.
Therefore, the correct answer would be option A, the demand curve for tomatoes would shift to the right.
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