Explain how regulations that require banks to finance a greater
portion of their activities with equity capital might hinder
economic growth. How might such regulations help economic
growth?
Answers
Regulations that require banks to finance a greater portion of their activities with equity capital might hinder economic growth as they make it more difficult for banks to lend money to businesses and consumers.
This is because equity capital is more expensive than debt capital, which means that banks will need to charge higher interest rates on loans to compensate for the increased cost of capital. This can discourage borrowing and reduce investment, which can in turn slow down economic growth. However, such regulations can also help economic growth by reducing the risk of financial instability. By requiring banks to hold more equity capital, they are less likely to become insolvent in the event of an economic downturn or financial crisis.
This can help to maintain confidence in the financial system and prevent a collapse in lending and investment. Additionally, higher levels of equity capital can encourage banks to take a longer-term view and focus on sustainable growth rather than short-term profits. This can promote more stable and sustainable economic growth over the long run.
Overall, the impact of regulations that require banks to finance a greater portion of their activities with equity capital on economic growth will depend on the specific details of the regulation and the broader economic context in which it is implemented. While such regulations may pose some short-term challenges to economic growth, they can also help to promote greater stability and sustainability in the financial system and support long-term economic growth.
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Related Questions
Create a comic strip, poster, or other visual art presentation that illustrates the forces of supply and demand, just as the dance routine in Supply and Dance, Man illustrated it using
the example of selling canes. Invent a fictitious business and illustrate how the business's successes shift supply and demand. Identify the supply and demand factors at play.
Answers
Answer:
demand is equal to 1000 and factors is equal to 5000
Unexpected events that drive economic cycles and fluctuations are called economic:________
Answers
Unexpected events that drive economic cycles and fluctuations are called economic shocks.
Shocks are frequently unpredictable and usually occur as a result of events that are thought to be outside the scope of normal economic transactions. Economic shocks have widespread and long-lasting effects on the economy and are thought to be the root cause of recessions and economic cycles, according to real business cycle theory (RBC).
The term refers to unexpected events that drive economic cycles and fluctuations. Shocks. Economic theories are based on the assumption that economic fluctuations are caused by: the labor force. Economic fluctuations have diminished in frequency and severity in the United States and many other countries over the past 25 years, a phenomenon called the "Great Moderation".
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Assume that Corn Co. sold 7,900 units of Product A and 2,100 units of Product B during the past year. The unit contribution margins for Products A and B are $29 and $59, respectively. Corn has fixed costs of $352,000. The break-even point in units is
Answers
The break-even point in units is approximately 0.996 units. Since we cannot sell a fraction of a unit, the break-even point in units is 1 unit.
To find the break-even point in units, we need to determine the number of units that need to be sold in order to cover the fixed costs.
To calculate the break-even point, we can use the formula:
Break-even point (in units) = Fixed costs / Unit contribution margin
First, let's calculate the total unit contribution margin.
For Product A:
Total contribution from Product A = Number of units sold * Unit contribution margin for Product A
Total contribution from Product A = 7,900 units * $29 = $229,100
For Product B:
Total contribution from Product B = Number of units sold * Unit contribution margin for Product B
Total contribution from Product B = 2,100 units * $59 = $123,900
Now, let's calculate the total contribution margin:
Total contribution margin = Total contribution from Product A + Total contribution from Product B
Total contribution margin = $229,100 + $123,900 = $353,000
Next, let's substitute the values into the formula to find the break-even point in units:
Break-even point (in units) = Fixed costs / Total contribution margin
Break-even point (in units) = $352,000 / $353,000
Dividing $352,000 by $353,000, we find that the break-even point in units is approximately 0.996 units.
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question 39 winding up is the process of collecting, liquidating, and distributing the partnership assets. true false
Answers
It is True that winding up is the process of collecting, liquidating and distributing the partnership assets of a partnership firm.
What is the term "winding up a partnership business"?Sometimes a partnership needs to be wound up. Any assets that remain following the dissolution of the partnership business are distributed, or liquidated, as part of the process of winding up a partnership business. The only partners who have the right to partnership assets throughout the winding-up procedure are those who are still partners in the partnership.
How does winding up of a partnership business occur?Two basic methods exist for ending a joint business. These consist of a petition from a creditor and one from a partner.
A creditor may occasionally ask the court to dissolve a partnership. If the partnership owes a debt to a creditor, the creditor may file a petition to dissolve the insolvent partnership in order to collect the debt.If a partnership does not have a viable future, the partners may also seek to dissolve it.To know more about winding up, please refer to:
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HELPPPPPPPP PALEASEEEE
when investors jump into an
investment because it's pop- ular to do
Answers
A market they are familiar with and comprehend. A strong leadership team. Diversification of investments Scalability. Financial projections that look promising. Consumer interest demonstrations A thorough marketing strategy. Transparency.
What do investors do during the market crash?Down markets provide an opportunity for investors to investigate an area that beginner investor may overlook: bond investing. Government bonds are often regarded as the safest investment, despite their unappealing appearance and typically low profits when compared to stocks and even other bonds.
Investing is a good way to put your money to work and perhaps increase your wealth. Smart investing can help your money outperform inflation and grow in value. The strength of compounding and the risk-return tradeoff contribute to investing's higher growth potential.
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Presented below is the adjusted trial balance of Kelly Corporation at December 31, 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells.
Debit
Cash $ ?
Supplies 1,200
Prepaid Insurance 1,000
Equipment 48,000
Accumulated Depreciation - Equipment
Trademarks 950
Accounts Payable
Salaries and Wages Payable
Unearned Service Revenue
Bonds Payable (due 2032)
Common Stock
Retained Earnings
Service Revenue
Salaries and Wages Expense 9,000
Insurance Expense 1,400
Rent Expense 1,200
Interest Expense 900
Total ?
Additional information:
1. Net loss for the year was $2,500.
2. No dividends were declared during 2025.
Instructions
Complete the classified balance sheet as of December 31, 2025.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells.
Answers
Kelly Corporation's income statement is prepared for the year ending December 31, 2025, and the total assets, total liabilities, and total stockholders' equity are given below
For the Year Ended December 31, 2025, Service revenue $?
Less: Operating Expenses Salaries and wages expense $?
Insurance expense ?
Rent expense ?
Interest expense?
Total expenses ?
Net Loss? $ 2,500
Calculate total assets, total liabilities, and total stockholders’ equity. To calculate Total Assets: Add up the value of all assets that are shown in the trial balance. The total amount of assets for Kelly Corporation as of December 31, 2025, is $?
To calculate Total Liabilities: Add up the value of all liabilities that are shown in the trial balance. The total amount of liabilities for Kelly Corporation as of December 31, 2025, is $?
To calculate Total Stockholders' Equity: Add up the value of all equity that is shown in the trial balance. The total amount of equity for Kelly Corporation as of December 31, 2025, is $?
Total liabilities and stockholders' equity
Kelly Corporation's income statement is prepared for the year ending December 31, 2025, and the total assets, total liabilities, and total stockholders' equity are calculated.
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73 points I will give if you like and comment 73 points
Answers
Answer:
i b b beg your pardon
Explanation:
Answer: 73 points is this what you mean?
Explanation:
which of the following should NOT be included when interpreting a bank statement?
A. account activities
B. statement date
C. Account summary
D. information from a different account
Answers
The information that should NOT be included when interpreting a bank statement is option D which is information from a different account.
What is bank statement?A bank statement can be described as a statement that display a list of all transactions with regards to the bank account over a set period, usually monthly.
It should be noted that , information that should NOT be included when interpreting a bank statement is information from a different account.
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Rihanna resigns from her position as a Series 7 registered representative with Princeton Securities, a FINRA member firm, where she has worked for five years. After completing an accelerated graduate studies program, and receiving a Ph.D. in 30 months, she wishes to return to her prior position as a registered representative. In order to do so she
Answers
Since Rihanna wants to return to her prior position as a registered representative, then she must retake and pass both the SIE and the Series 7 exams.
A registered representative refers to someone who works with the clients that are into the trading of investments line bonds and stocks.
In this case, since Rihanna had already resigned from her position, for her to return to her prior position as a registered representative, then she should take the SIE and the Series 7 exams and pass both of them.
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You invest $500 in a fund that has shown to have a mean annual increase of $120 per year. If you leave your initial
investment in the account, and invest no additional funds, how much will your account be worth at the end of 25 years?
a) $1,200
b) $2,500
c) $3,500
d) $3,800
Answers
The investment of $500 in a fund, the account at the end of 25 years would be $3,500. The appropriate response is option C.
What is investment?A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person makes an investment, they do not intend to utilize the product immediately; instead, they intend to use it to build wealth in the future.
Stocks, bonds, and cash equivalents are the three main categories into which investments are often divided. Within each category, there are several distinct kinds of investments.
The investment of $500 in a fund, the account at the end of 25 years-
120x25=3000+500=3,500
Hence, option C is an appropriate response.
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Suppose that business travelers and vacationers have the following demand for airline
tickets from Los Angeles to San Francisco:
Price
$150
$200
$250
$300
Quantity Demanded
(business travelers)
35,000
30,000
26,000
20,000
Quantity Demanded
(vacationers)
25,000
21,000
14,500
11,000
1. As the price of tickets rises from $200 to $250, what is the price elasticity for both
(a) business travelers and (b) vacationers ?
2. Why might vacationers have a different elasticity than business travelers?
3. What would be the Exact Quantity Demanded and change in Total Revenue if the
Airlines Change the Price for Business Travelers from $200 to $230?
Answers
Customer Segments for nike For whom are we creating value? Who are our most important customers? Is our customer base a Mass Market, Niche Market, Segmented, Diversified, Multi-sided Platform
Answers
Nike customer segments includes athletes, sports fans, and casual wearers. Nike creates value for its customers by offering high-quality athletic shoes, apparel, and accessories that enhance their performance, comfort, and style. The most important customers for Nike are athletes and sports enthusiasts who are willing to pay a premium for superior quality and design.
Nike’s customer base is a combination of mass market and segmented market. While Nike’s products are widely available and appeal to a broad audience, the company also targets specific segments based on factors such as age, gender, and sport. For example, Nike offers specialized products for basketball, running, and soccer, and it markets products specifically to women, children, and other demographics.
Nike is a multi-sided platform that connects customers with athletes, teams, and events. By sponsoring top athletes and teams and providing customized products for specific events, Nike creates a unique experience for its customers that goes beyond the product itself. Additionally, Nike uses social media and digital platforms to engage with customers and create a community around its brand.
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why is the vegetables market necessary . give reason
Answers
Answer:
Abstract: Vegetables are vital to the general good health of human beings, providing essential vitamins and minerals, dietary fiber, and phytochemicals, and reducing risk from dangerous diseases and other medical conditions. ... Most of the vegetables are marketed fresh with only a small portion processed.
Explanation:
Vegetables are vital to the general good health of human beings, providing essential vitamins and minerals, dietary fiber, and phytochemicals, and reducing risk from dangerous diseases and other medical conditions. ... Most of the vegetables are marketed fresh with only a small portion processed.
An insurance that you pay if your down payment is less than 20 percent of the total cost of the house _____.
a. an ARM
b. an escrow account
c. PMI
d. a balloon loan
Answers
Answer:
Hello There!!
Explanation:
I think the answer is c.PMI because that is the only option which best fits into the sentence.
hope this helps,have a great day!!
~Pinky~
\(\huge{\textbf{\textsf{{\color{navy}{An}}{\purple{sw}}{\pink{er}} {\color{pink}{:}}}}}\)
C. PMI
ThanksHope it helpsOn August 31 of the current year, Pine Corp. issued 100,000 shares of its $20 par value common stock for all of the net assets of SAP, Inc. The collection of assets and liabilities acquired do not meet the definition of a business under ASC 805. The fair value of Pine's common stock on the acquisition date was $63 per share. Pine paid a fee of $164,000 to the consultant who arranged this acquisition. Costs of registering and issuing the equity securities amounted to $89,000. What amount should Pine record in total for the net assets acquired?
Answers
The amount that Pine Corp. should record for the net assets acquired is $6,300,000.
How much should Pine Corp. record?The amount that should be recorded as the total for net assets acquired, is the fair value of the shares sold to finance the purchase.
In this case that is:
= 100,000 shares x 63 per share
= $6,300,000
In conclusion, $6,300,000 should be recorded.
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Question 8
1 p
Tanner is entering high school and needs to save as much money as he can for college. What rate
of return must Tanner earn for his investment of $5,000 to double in 4 years?
%
Answers
Answer:
It must be invested at 19% per year.
Explanation:
Given that Tanner is entering high school and needs to save as much money as he can for college, to determine what rate of return must Tanner earn for his investment of $ 5,000 to double in 4 years, the following calculation must be performed:
72 / X = 4
72/4 = X
18 = X
Thus, approximately, it must be invested at 18% per year. But it must be checked by the following calculation:
5000 x 1.18 ^ 4 = 9,693.88
5000 x 1.19 ^ 4 = 10,026.69
Thus, it must be invested at 19% per year.
Exercise 8-7 At December 31, 2018, Concord Corporation Company had a credit balance of $18,800 in Allowance for Doubtful Accounts. During 2019, Concord Corporation wrote off accounts totaling $13,500. One of those accounts ($3,500) was later collected. At December 31, 2019, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $30,700. Prepare journal entries to record the 2019 transactions of Concord Corporation Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answers
Answer:
Dr Allowance $13,500
Cr Accounts Recivable $13,500
Dr Accounts Recivable $3,500
Cr Allow ance $3,500
Dr Cash $3,500
Cr Accounts Rec $3,500
Dr Bad Debts Expense $21,900
Cr Allowance $21,900
Explanation:
Preparation of the journal entries to record the 2019 transactions of Concord Corporation Company
Dr Allowance $13,500
Cr Accounts Recivable $13,500
(To record amount written off)
Dr Accounts Recivable $3,500
Cr Allow ance $3,500
(To reverse write-off)
Dr Cash $3,500
Cr Accounts Rec $3,500
(To record collection of writeoff)
Dr Bad Debts Expense $21,900
Cr Allowance $21,900
[$30,700-($18,800-$13,500+$3,500)]
Use the data in the spreadsheet provided to estimate the beta of Shoe CompanyShoe Company
stock using linear regression.
Returns (%)
Value Weighted Market
Shoe CompanyShoe Company
Jan-09
2.30152
1.7601
Feb-09
1.5808
5.1987
Mar-09
-1.0649
6.5576
Apr-09
-2.4357
-7.6108
May-09
1.4468
-1.1334
Jun-09
2.1527
6.7486
Jul-09
-3.7611
-4.0672
Aug-09
0.2768
3.5441
Sep-09
2.0166
4.8538
Oct-09
1.7753
3.1961
Nov-09
4.8619
4.1049
Dec-09
3.5717
7.4574
Jan-10
-2.6896
−4.4585
Feb-10
2.2197
0.3099
Mar-10
−1.6624
−3.8113
Apr-10
−2.5422
−7.8247
May-10
3.7586
7.0296
Jun-10
1.1339
5.6732
Jul-10
4.3025
−3.2924
Aug-10
−0.5865
−5.8396
Sep-10
1.0939
3.8811
Oct-10
−2.0939
2.9872
Nov-10
4.0116
1.4941
Dec-10
0.3251
2.1446
Jan-11
4.0579
−6.7494
Feb-11
−0.1626
7.2391
Mar-11
1.9045
−1.5976
Apr-11
1.2988
−3.8654
May-11
−3.1141
−1.8419
Jun-11
−0.0325
1.2115
Jul-11
−0.1981
−2.4799
Aug-11
2.5504
2.2602
Sep-11
1.9105
8.8557
Oct-11
3.7242
4.8627
Nov-11
2.3956
7.6072
Dec-11
1.0844
0.4579
Jan-12
1.9424
−0.2014
Feb-12
−1.3883
5.7138
Mar-12
1.2998
2.0164
Apr-12
3.9521
1.3568
May-12
3.8814
5.3452
Jun-12
−1.4899
3.0215
Jul-12
−3.1983
−3.1795
Aug-12
1.2067
−0.1991
Sep-12
4.0158
4.4518
Oct-12
2.5861
12.9138
Nov-12
−4.9018
−0.9301
Dec-12
−0.4354
−1.7546
Jan-13
−6.2272
−4.5648
Feb-13
−2.2018
−1.8896
Mar-13
−1.0433
3.3668
Apr-13
5.1206
−1.7846
May-13
2.3881
2.3563
Jun-13
−7.8853
−12.4808
Jul-13
−1.317
−1.5919
Aug-13
1.1092
3.2166
Sep-13
−9.8413
10.7368
Oct-13
−18.4738
−13.8768
Nov-13
−8.5204
−7.6097
Dec-13
2.1404
−3.7543
The beta of Shoe CompanyShoe Company
stock is:
(Round to four decimal places.)
Answers
To estimate the beta of Shoe Company, we need to use the provided data which includes two pieces of information: the return of the company and the return of the market index. Beta measures the sensitivity of a stock's return to changes in the market.
We can calculate the beta by dividing the covariance between the stock and market returns by the variance of the market returns.
Using the data provided, we can calculate the average monthly return of Shoe Company as 1.2115% and the average monthly return of the market index as 2.5861%. To calculate the covariance, we need to find the difference between each month's return for Shoe Company and the average return, and the difference between each month's return for the market index and the average return, and multiply these differences for each month. Summing up these products and dividing by the number of months gives us the covariance.
Similarly, we can calculate the variance of the market index by finding the difference between each month's return and the average return, squaring each difference, and summing up these squares for each month. Dividing by the number of months gives us the variance.
When we divide the covariance by the variance, we get the beta of Shoe Company. Using the data provided, the estimated beta of Shoe Company is 0.4694 (rounded to four decimal places). This indicates that Shoe Company is less volatile than the market, as a beta of less than 1 means that the stock is less sensitive to market movements.
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To estimate the beta of Shoe Company, we need to use the provided data which includes two pieces of information: the return of the company and the return of the market index. Beta measures the sensitivity of a stock's return to changes in the market.
We can calculate the beta by dividing the covariance between the stock and market returns by the variance of the market returns.
Using the data provided, we can calculate the average monthly return of Shoe Company as 1.2115% and the average monthly return of the market index as 2.5861%. To calculate the covariance, we need to find the difference between each month's return for Shoe Company and the average return, and the difference between each month's return for the market index and the average return, and multiply these differences for each month. Summing up these products and dividing by the number of months gives us the covariance.
Similarly, we can calculate the variance of the market index by finding the difference between each month's return and the average return, squaring each difference, and summing up these squares for each month. Dividing by the number of months gives us the variance.
When we divide the covariance by the variance, we get the beta of Shoe Company. Using the data provided, the estimated beta of Shoe Company is 0.4694 (rounded to four decimal places). This indicates that Shoe Company is less volatile than the market, as a beta of less than 1 means that the stock is less sensitive to market movements.
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who here from K12? (sorry for asking this question)
Answers
Answer:
Explanation:
Answer:
Not I.
Explanation:
This is just constructive criticism, but I don't recommend listing your school here.
What subjects are required to become a real estate agent?
Answers
Answer:
this is ans:
Explanation:
Before you can take the real estate license exam, you will take classes in subjects like real estate fundamentals, real estate law, and mortgage financing. You can take these courses at a community college, state college, or university to earn a certificate, an associate degree, or a bachelor's degree in real estate.
I am confused here. Help me, tomorrow is my exam. Is tailoring a secondary activity or tertiary? Bcoz a tailor also makes suits etc and also fixes them. For example if my coat has a cut, the tailor will repair it.
Answers
Hello student
Answer:
Tailor is tertiary activity of economy
Explanation:
because it makes service not manufacturing goods and items.
A list of all account names used to record transactions of a company is referred to as a T-account
Answers
Answer:
chart of accounts. a list of all account names used to record transactions of a company.
external transactions. transactions the firm conducts with a separate economic entity.
general ledger. all accounts used to record the company's transactions.
journal
posting
T-account
trial balance
accounts
True or False: Airlines could not compete on price when transatlantic airfares were subject to price floors, and so they competed on the basis of in-flight meals. This is _____.
Answers
Answer:
true
Explanation:
it's my opinion pls Don't take it seriously
1) help tom to explain to the shareholders of the company the meaning of "free cash flow", its usage and how to use its value to assess a company’s performance.
Answers
Free cash flow" refers to the amount of cash a company generates from its operations that is available for distribution to shareholders, debt repayment, or reinvestment in the business.
It is a crucial financial metric used to assess a company's performance and financial health. When explaining to shareholders, Tom can emphasize that free cash flow represents the company's ability to generate cash beyond its necessary expenses and capital investments. It serves as an indicator of financial strength and flexibility. Shareholders can use free cash flow to evaluate the company's ability to pay dividends, reduce debt, invest in growth opportunities, or withstand economic downturns. By analyzing trends in free cash flow over time.
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Which of the following statements would be considered pros of globalization?
Increased competition between countries
Increased immigration of unskilled workers
Increased public funding for education and immigration of those citizens with education
Increased consumption of wide variety of goods leading to increased production
Answers
Answer:
increased consumption of wide variety of goods leading to increased production.
Explanation:
im sorry if i get it wrong
In business writing, the main idea of a written work should be located
a. At the end of the first paragraph
b. In the body of the document
At the beginning of the first paragraph
d. In the salutation of the document
C.
Please select the best answer from the choices provided
Ο Α
B
С
OD
Answers
Answer:
c
Explanation:
cccccccccccccccccccccccccc
Answer:
well i blive its c
Explanation:
Last year Minden Company introduced a new product and sold 16,000 units of it at a price of
$72
per unit. The product's variable expenses are
$42
per unit and its fixed expenses are
$525,000
per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each
$2
reduction in its selling price. If the company will only consider price reductions in increments of
$2
(e.g.,
$70,$68
, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling pric per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3 ? Complete this question by entering your answers in the tabs below. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each
$2
reduction in its selling price. If the company will only consider price reductions in increments of
$2
(e.g.,
$68,$66
, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? Last year Minden Company introduced a new product and sold 16,000 units of it at a price of
$72
per unit. The product's variable expenses are
$42
per unit and its fixed expenses are
$525,000
per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each
$2
reduction in its selling price. If the company will only consider price reductions in increments of
$2
(e.g.,
$70,$68
, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3 ? Complete this question by entering your answers in the tabs below. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3 ? (Do not round intermediate
Answers
1. The product's net operating loss last year was $45,000.
2. Break-even point in dollar sales is $1,260,000
3. The maximum annual profit is $705,000.
4. Break-even point in dollar sales is $1,632,500.
How did we get these values?1. Net operating income (loss) last year:
Revenue = 16,000 units × $72 = $1,152,000
Total variable expenses = 16,000 units × $42 = $672,000
Contribution margin = Revenue - Total variable expenses = $480,000
Net operating income = Contribution margin - Fixed expenses = $480,000 - $525,000 = -$45,000
Therefore, the product's net operating loss last year was $45,000.
2. Break-even point:
Contribution margin per unit = $72 - $42 = $30
Break-even point in unit sales = Fixed expenses ÷ Contribution margin per unit = $525,000 ÷ $30 = 17,500 units
Break-even point in dollar sales = Break-even point in unit sales × Selling price per unit = 17,500 units × $72 = $1,260,000
3. Maximum annual profit:
For every $2 reduction in selling price, sales increase by 5,000 units. This means that each additional 5,000 units sold generates an additional contribution margin of $30 × 5,000 = $150,000. The company will consider price reductions in increments of $2, so the maximum reduction in selling price would be $10 (5 reductions of $2 each).
Assuming that the company can sell an additional 25,000 units (5 reductions of $2 each), the total contribution margin would be $480,000 + ($150,000 × 5) = $1,230,000. This would occur if the selling price per unit is reduced to $62.
Therefore, the maximum annual profit is $1,230,000 - $525,000 = $705,000.
The sales volume and selling price per unit that generate the maximum profit are 41,000 units and $62, respectively.
4. Break-even point using the selling price determined in requirement 3:
Contribution margin per unit = $62 - $42 = $20
Break-even point in unit sales = Fixed expenses ÷ Contribution margin per unit = $525,000 ÷ $20 = 26,250 units
Break-even point in dollar sales = Break-even point in unit sales × Selling price per unit = 26,250 units × $62 = $1,632,500.
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Subject: Accounting
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13 On 1 April Mary had a bank overdraft of $1450. On 2 April she paid $250 cash into the bank and paid rent, $390, by cheque.
What is Mary's bank overdraft after the transactions on 2 April? Explain your answer.
A $810 B $1310 C $ 1590 D $2090
Answers
Answer:
C
Explanation:
Mary's account was negative $1450. she paid $250 in cash making her account negative $1200. when her cheque clears the bank she will be overdrawn $1590
-1450+250= (1200) -1200-390=($1590) over drawn
I need a good answer to this by Friday. Research various sources or Web sites that can help an entrepreneur with writing a business plan.
Now create a "Top 10" list of these sources in a table. The first one has been done for you.
Discuss what your first choice of sources to use as an entrepreneur would be and explain why.
Answers
The Web sites that can help an entrepreneur in writing a good business plan are:
The Economist.Forbes.com/entrepreneur.Under 30 CEO, etc.What is a business plan?A business plan is known to be a kind of written document that tells onw what they need to know about how a business can be run and also startup.
Concussively, Note that a business plan is regarded as the roadmap for any company in terms of marketing, financial standpoints, etc. The Economist will help the entrepreneur to know more about starting a business and what the market looks like.
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Joe, 46, has owned his company for 18 years and wishes to retire at age 70. All of Joe's employees are older than he is and have an average length of service with the company of eight years. Joe would like to adopt a qualified retirement plan that would favor him and reward employees who have rendered long service. Joe has selected a traditional defined benefit pension plan with a unit benefit formula.
Required:
What is true regarding Joe's traditional defined benefit pension plan?
Answers
Answer:
A traditional defined benefit pension plan will maximize Joe's benefits and reward long-term employees based on the length of service
Explanation:
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