The total logistics costs for the current system, assuming full containers, is approximately $1,071.56.
To calculate the total logistics costs for the current system, we need to consider the truck shipping cost and the holding cost for inventory.
Given information:
- Transit time from Monterrey to Tacoma: 8 days
- Daily demand at Tacoma facility: 3 units
- Maximum capacity of a container: 27 components
- Truck shipping cost per container: $9,500
- Holding cost for units/raw materials inventory: $2/unit/day
To calculate the total logistics costs, we need to determine the number of containers shipped, the number of days between shipments, and the inventory in Tacoma.
Number of containers shipped:
Since each container has a maximum capacity of 27 components and the daily demand at Tacoma is 3 units, we can calculate the number of containers required per shipment as:
Number of containers = Daily demand / Maximum capacity per container = 3 / 27 = 0.1111 (approximately)
Number of days between shipments:
Given that the transit time from Monterrey to Tacoma is 8 days, the number of days between shipments will be the transit time plus the number of days required to empty the container at Tacoma. Assuming the container is emptied on the first day of arrival, the number of days between shipments will be 8 + 1 = 9 days.
Truck shipping cost per day:
To calculate the truck shipping cost per day, we divide the truck shipping cost per container by the number of days between shipments:
Truck shipping cost per day = Truck shipping cost per container / Number of days between shipments = $9,500 / 9 = $1,055.56 (approximately)
Pipeline stock cost per day:
The pipeline stock refers to the inventory in transit. Since the transit time from Monterrey to Tacoma is 8 days, the pipeline stock cost per day will be the transit time multiplied by the holding cost per unit per day:
Pipeline stock cost per day = Transit time x Holding cost per unit per day = 8 x $2 = $16
Inventory in Tacoma:
To calculate the inventory in Tacoma, we multiply the daily demand by the number of days between shipments:
Inventory in Tacoma = Daily demand x Number of days between shipments = 3 x 9 = 27 units
Total logistics costs:
The total logistics costs can be calculated by adding the truck shipping cost per day and the pipeline stock cost per day:
Total logistics costs = Truck shipping cost per day + Pipeline stock cost per day = $1,055.56 + $16 = $1,071.56
Therefore, the total logistics costs for the current system, assuming full containers, is approximately $1,071.56.
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what are the different administrative Nepal has been divided
Answer:
Nepal is divided into seven provinces. The provinces are divided into districts. The districts are divided into municipalities and rural municipalities. ... Nepal's new constitution of 2015 has divided the country into seven provinces and removed the older Zones and Development region system.
(●'◡'●)
Explanation:
A firm is about to conclude an agreement to merge with a publicly traded company. Negotiations have been confidential, and the media has not leaked any details of the potential merger. One of the managers on the negotiating team just learned that a single-source supplier will be raising their prices due to a supply shortage, which will affect product costs and profit margins.
What course of action should the firm take in response to this news?
Immediately sell shares in the publicly traded company before the news is public
Share the new information with the company because it affects the firm's valuation
Contact the local media to leak the details of the potential merger
Wait to disclose the information about the price increase until after the merger
What is a characteristic of vendor managed inventory (VMI)?
It has disadvantages to the retailer because of higher inventory costs.
It can be detrimental to customers due to a higher probability of stockouts
It allows the supplier to plan production in order to keep the retailer stocked with its product.
It follows the traditional approach of placing inventory replenishment orders with its suppliers
The firm should share the information with the company and wait to disclose it publicly until after the merger. This approach prioritizes transparency and allows for informed decision-making.
In response to the news about the single-source supplier raising their prices due to a supply shortage, the firm should take the following course of action:
1. Share the new information with the company because it affects the firm's valuation: The firm should communicate this information to the publicly traded company with whom they are about to merge. This is important as it directly impacts the product costs and profit margins of the firm. Sharing the information allows both parties to evaluate the potential impact on the merger agreement and make informed decisions.
2. Wait to disclose the information about the price increase until after the merger: It is advisable for the firm to wait until after the merger to disclose the information about the price increase. This is because negotiations have been confidential and leaking this information to the media or other external parties may harm the ongoing negotiations and potentially affect the terms of the merger.
By sharing the information with the company, the firm can ensure transparency and allow both parties to assess the impact on the merger. Waiting to disclose the information publicly until after the merger helps maintain confidentiality and protect the negotiation process.
To summarize, the firm should share the information with the company and wait to disclose it publicly until after the merger. This approach prioritizes transparency and allows for informed decision-making while protecting the confidentiality of the negotiations.
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Which of the following is the concept of marginal cost closely related Mcq? (a) Variable Cost
(b) Fixed Cost
(c) Opportunity cost
(d) Economic Cost
The idea of economic cost is strongly tied to the Mcq concept of marginal cost.
A cost is the value of money used to manufacture an item or offer service but which is now unavailable for use in manufacturing, research, retail, or accounting. When calculating an acquisition cost, the sum of the acquisition's costs is taken into account. The majority of fixed costs are outlays that are more time-dependent than they are production- or sales-related. Rent and leasing fees, salaries, energy prices, insurance premiums, and loan repayments are a few examples of fixed costs. Some taxes, such as those associated with business licensing, are also fixed expenses. Cost is the sum of money that a company spends to manufacture or produce goods or services.
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What are the four basic elements of business?
A. Production, fiancé, marketing, and customer service
B. Marketing, finance, networking, and production
C. Service, finance, employees, and marketing
D. Customer service, investment, marketing, and service
Answer:
The four basic elements of business are:
A. Production, fiance, marketing, and customer service.
Explanation:
These elements make up a business organizational structure. Functional structures and hierarchies revolve around these basic elements. Production in some organizations will be described as operations. It is the core of the business. Revenues that sustain the business are generated from production or operations. Finance handles the revenues and the costs associated with running a business. Marketing ensures that the goods and services from production or operations are made known to customers through research, information acquisition, and customer education. Finally, customer service ensures good relationships between the business and the customers, who are the chief patrons of the business. These essential elements ensure business success.
Answer:
Production, finance, networking and customer service
Explanation:
4. What are some of the things that could happen on the job that would cause me to resign?
Answer:
Some of the things that could happen on the job that would cause you to resign are:
A toxic work environment. If you are constantly feeling stressed, anxious, or unhappy at work, it may be time to resign. A toxic work environment can have a negative impact on your physical and mental health, and it can make it difficult to be productive.A lack of opportunities for growth. If you feel like you are not learning or growing in your current role, you may be ready to move on. A lack of opportunities for growth can lead to boredom, frustration, and a feeling of stagnation.Unrealistic expectations. If your employer is constantly setting unrealistic expectations, it can be very difficult to meet them. This can lead to stress, anxiety, and burnout.A lack of support from your manager. If you feel like your manager is not supportive of you or your work, it can be very difficult to be successful in your role. A lack of support can make it difficult to ask for help when you need it, and it can make you feel like you are not valued.A change in the company culture. If the company culture changes in a way that you do not agree with, it may be time to resign. A change in company culture can make it difficult to fit in, and it can make you feel like you are no longer a good fit for the company.A personal reason. Sometimes, you may need to resign from your job for a personal reason, such as a family emergency or a health issue. If you are facing a personal crisis, it is important to put your own needs first.Identify the 5 various ways do marketers categorize service businesses and organizations?
Answer: The five basic forms of consumer market segmentation are demographic, geographic, psychographic, benefit, and volume.
Explanation:
the mathis brand of televisions has a significant market share but spends proportionally less on advertising than competing brands. this is the case because
Beyond a certain volume of promotion, diminishing returns set in.
Reason: certain amount of promotion causes diminishing returns to occur.
What do marketing diminishing returns mean?
According to this, if you increase one of the inputs in a manufacturing or service process without raising the others, the additional returns per unit of that input will decrease. This holds true for all marketing strategies, including advertising, mailers, and even sales staff.
What do you mean by advertising?
A marketing strategy known as advertising involves purchasing real estate to advertise a good, bad, or intangible idea. Ads, as they are commonly known, are the real advertising messaging. Reaching the demographics most likely to be interested in purchasing a company's goods or services is the aim of advertising.
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Hiring managers spend at least an hour reviewing an applicants résumé.
A. True
B. False
Answer: False?
Explanation:
Hiring managers spend often 30 sec to 2 minutes reviewing an applicants resume.
The __________ forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs.
The Food and Drug Administration (FDA) forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs.
The FDA is a regulatory agency in the United States that is responsible for ensuring the safety, effectiveness, and proper labeling of food, drugs, medical devices, cosmetics, and other products. Under the authority granted by various federal laws, including the Federal Food, Drug, and Cosmetic Act (FD&C Act), the FDA has the power to enforce regulations and standards to protect public health.
One of the key mandates of the FDA is to prevent the production and distribution of adulterated or fraudulently labeled foods and drugs. Adulteration refers to the inclusion of impure, harmful, or substandard ingredients in food or drugs, while fraudulent labeling involves misrepresentation or false claims about the content or quality of the products.
Through inspections , testing, labeling requirements, and enforcement actions, the FDA works to ensure that consumers have access to safe and properly labeled food and drug products, thus protecting public health and promoting confidence in the marketplace.
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ovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a approach to price the new moisturizer. Select one: a.good-value b. break-even c. value-added d. competitor-based e, cost-plus
As per the price strategy, Lovely Skin is using a cost-plus approach to price the new moisturizer.
Price strategy:
Price strategy refers considering your costs and pricing your product appropriately, so that you are able to make money off of your sales.
Given,
Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a approach to price the new moisturizer.
Here we need to find the type of price strategy is used.
In the given situation only the price of the moisturizer is changed. But he others are remains the same.
So, this is the type of cost plus strategy.
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What are examples of Business, Management, and Administration careers? Select four options. Chief Executive Health and Safety Engineer Personal Financial Advisor Loan Counselor Training and Development Specialist Receptionist Postal Service Mail Carrier Administrative Assistant.
Examples of Business, Management, and Administration careers are;
Chief Executive Training and Development Specialist Receptionist, Administrative Assistant.What Is a career?A career can be regarded as a profession that individual choose in his or her life time.
Therefore, the given careers are examples of Business, Management, and Administration careers .
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Answer:
Chief Executive
Training and Development Specialist
Receptionist
Administrative Assistant
Explanation:
A beta distribution center worker was injured when she tried to remove items on the shelf and not a heavy box onto her for a week later some posters stored in tubes rolled off another shelf and into an ally second worker tripped over tube and for which of the following measures with best prevent this type of safety problem at beta
Answer:
C. Teach procedures for stacking items in straight, even loads.
Explanation:
Answer:
teach procedures for stacking items in straight, even loads.
Explanation:
Allen Furniture Company is considering offering an inexpensive line of college dorm and apartment furnishings. If they move forward, they will renovate part of their store to accommodate this new stock. Before spending the money to redesign the store, they first want to find out customer interest. In a short response of approximately 100 words, describe some of the steps they should take as they consider this project.
Answer:
Allen Furniture Company should look into conducting a survey to gauge customer interest to find what they look for, need, and find attractive. They could do so by going to college campuses and conducting random interviews. For their apartment furnishings, they could look online to see what kind of product sell and do an analysis of customer interest that way and they could also conduct a survey for people that live in apartments. They could also look into a consultant that specializes in the field and is experienced with what customers like or want.
Supply chain analysis of Coca-Cola in Vietnam. And draw lessons for other bottled water companies.
Answer:
Coca Cola follows very stringent supply chain. It is one of leading beverage brand around the world.
Explanation:
Supply chain analysis is a process of evaluating different stages of supply chain from procurement of raw material to final delivery of finished goods. There are three different strategies for supply chain management, Strategic, Tactical and Operational. Coca Cola follows strategic supply chain management. McDonald's is Coca cola's largest customer and these two global companies maintains symbiotic relationship.
Provide an example of a corporate decision in line with Covid-19 vaccination and working remotely, you were involved with where consensus was ultimately reached. What organizational constraints were preventing that same consensus at first?
There could be financial and logistical constraints involved in implementing a policy that requires all employees to get vaccinated, such as the cost of the vaccines, training for HR and management, and logistics for administering the vaccines.
I have not been involved in any corporate decision-making process. However, I can give you an example of a corporate decision in line with Covid-19 vaccination and working remotely and some of the organizational constraints that might prevent consensus at first. Example of a corporate decision in line with Covid-19 vaccination and working remotely: One example of a corporate decision in line with Covid-19 vaccination and working remotely is that a company can implement a policy that requires all employees to get vaccinated in order to come into the office.
This policy can be communicated clearly and early to all employees so that they have time to make arrangements to get vaccinated. Organizational constraints that might prevent consensus at first:There are several organizational constraints that might prevent consensus on implementing a policy that requires all employees to get vaccinated in order to come into the office. One of the constraints could be resistance from employees who are hesitant or refuse to get vaccinated. The company may also face constraints in terms of vaccine availability, accessibility, and affordability.
There could also be challenges in terms of the legal implications of implementing such a policy. The company would have to ensure that the policy complies with any relevant laws and regulations and that it does not discriminate against employees who cannot get vaccinated due to medical or religious reasons.Furthermore, some employees may prefer to work remotely due to concerns about Covid-19 and may resist any policy that requires them to come into the office. Finally, there could be financial and logistical constraints involved in implementing a policy that requires all employees to get vaccinated, such as the cost of the vaccines, training for HR and management, and logistics for administering the vaccines.
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Required information Exercise 11-2 (Algo) Depreciation methods [LO11-2] (The following information applies to the questions displayed below.) On January 1, 2021, the Allegheny Corporation purchased equipment for $150,000. The estimated service life of the equipment is 10 years and the estimated residual value is $7,000. The equipment is expected to produce 180,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Exercise 11-2 (Algo) Part 1 1. Straight-line. Straight-Line Depreciation 1 Choose Denominator: Choose Numerator: Annual Depreciation Expense Depreciation Expense Formula / Amounts = Depreciation Expense 2021 2022 Required information Exercise 11-2 (Algo) Depreciation methods [LO11-2] (The following information applies to the questions displayed below.) On January 1, 2021, the Allegheny Corporation purchased equipment for $150,000. The estimated service life of the equipment is 10 years and the estimated residual value is $7,000. The equipment is expected to produce 180,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Exercise 11-2 (Algo) Part 2 2. Double-declining-balance. Double-Declining-Balance Method * Choose Denominator: Choose Numerator: = Depreciation Expense Depreciation Expense Formula Amount for 2021 X % Amount for 2022 X % ! Required information Exercise 11-2 (Algo) Depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $150,000. The estimated service life of the equipment is 10 years and the estimated residual value is $7,000. The equipment is expected to produce 180,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Exercise 11-2 (Algo) Part 3 3. Units of production (units produced in 2021, 37,000; units produced in 2022, 32,000). (Round "Depreciation per unit rate" answers to 2 decimal places.) Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense: Depreciation per unit rate Units produced in 2021 Depreciation in 2021 Calculate 2022 depreciation expense: Depreciation per unit rate Units produced in 2022 Depreciation in 2022
2021 Depreciation: (37,000 / 180,000) x (150,000 - 7,000) = $29,100
2022 Depreciation: (32,000 / 180,000) x (150,000 - 7,000) = $25,600
1. Straight-line method:
To calculate depreciation using the straight-line method, subtract the estimated residual value from the initial cost and divide it by the estimated service life. The annual depreciation expense will remain the same over the years.
Depreciation Expense = (Cost - Residual Value) / Service Life
2021 Depreciation: (150,000 - 7,000) / 10 = $14,300
2022 Depreciation: $14,300
2. Double-declining-balance method:
To calculate depreciation using the double-declining-balance method, multiply the book value (cost - accumulated depreciation) by twice the straight-line rate. The depreciation expense will decrease over time.
Depreciation Expense = Book Value x (2 / Service Life)
2021 Depreciation: (150,000 - 0) x (2 / 10) = $30,000
2022 Depreciation: (150,000 - 30,000) x (2 / 10) = $24,000
3. Units of production method:
To calculate depreciation using the units of production method, divide the total units produced in a year by the total expected units over the equipment's life. Multiply this by the initial cost minus the residual value.
Depreciation Expense = (Units Produced / Total Expected Units) x (Cost - Residual Value)
2021 Depreciation: (37,000 / 180,000) x (150,000 - 7,000) = $29,100
2022 Depreciation: (32,000 / 180,000) x (150,000 - 7,000) = $25,600
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In 2011 oil production in libya was interrupted by political unrest. at the same time, the demand for oil by china continued to rise.
a. demonstrate the impact on the quantity of oil bought and sold. instructions: draw a parallel shift in the demand or supply curve(s) by grabbing, dragging, and then dropping the curve(s) to the new position(s). in the market for oil, compared to the initial equilibrium (e0), the impact of these events on price is and the impact on quantity is .
b. oil production in libya returned to its original levels by the end of 2012. what was the likely effect on equilibrium oil price and quantity? compared to the equilibrium identified in part a, price will and quantity will .
If you have to decide to claim a credit or deduction on
your taxes which should you take?
Answer:
Form 1040
Explanation:
To claim a credit or deduction on my tax, i will fill Form 1040.
What is Tax credits and deductions?Tax credits and deductions can alter the amount of tax that someone is owing so one can pay less.
The Deductions can reduce the amount of one's income however, to claim it , one needs to fill form 1040 which is used to file an annual income tax return.
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Which of the following is an example of mass promotion?
O a. advertising
O b. telephone sales call
O c. personal selling
O d. all of the above
Answer:
probably a
Explanation:
i hardly see personal selling which eliminates d and c plus tellephone sales call doesnt reach as wide of an audience as advertising
Advertising is an example of mass promotion. Thus, option A is correct.
What is promotion?Promotion can be defined as a part where the companies or the sellers are making sure that the customers are aware of their product as well as its positions. This is done to make sure that the product or the services being purchased would improve and increase the revenue.
Advertising can be considered a part of mass emotions because it can be done by various means where it can be placed in visual and audio and oral forms.
This would mean that in mass promotion the advertisement can be done with the help of radio, television, the screens which are available also hoardings. So, the customers get attracted to it and would buy the product. Therefore, option A is the correct option.
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From your inspection of the inventory department you found there was surplus of stock in many items. Explain three implications to the company of having a surplus of stock.
Answer:
Explanation:
Increased storage costs: A surplus of stock implies that the company has more inventory than it needs, which means that it must store this excess inventory. This can result in higher storage costs, such as rent for warehouse space, utilities, and insurance.
Opportunity cost: The money tied up in surplus stock cannot be invested in other business areas, such as marketing or research and development. This results in an opportunity cost, as the funds are not used to grow the business in other ways.
Reduced cash flow: A surplus of stock may also lead to a reduction in cash flow, as the money spent on purchasing the excess inventory cannot be recouped until the items are sold. This can strain the company's finances and limit its ability to invest in other areas.
a company had average total assets of $990,000. its gross sales were $1,122,000 and its net sales were $905,000. the company's total asset turnover equals:
The company's total asset turnover, which is 1.13, shows that it is making effective use of its assets to produce sales.
What is asset?A resource that belongs to a person or business and has a monetary worth is known as an asset. Examples include cash, stocks, bonds, real estate, machinery, intellectual property, and accounts receivable. Intangible assets like goodwill, brand awareness, and copyrights can also be considered assets. Current assets, which may be swiftly converted into cash, and long-term assets, which have a longer lifespan, are the two basic categories into which assets are traditionally separated.
Total Asset Turnover = Gross Sales / Average Total Assets
Total Asset Turnover = $1,122,000 / $990,000
Total Asset Turnover = 1.13
Total asset turnover is a metric for gauging how effectively a business uses its assets to drive revenue. It is computed by dividing the entire annual revenues of the company by the average annual total assets. In this instance, the company's gross revenues were $112,000 and its average total assets were $990,000. Accordingly, the company's total asset turnover is 1.13, which shows that it is making effective use of its assets to produce revenue.
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Regina, Brock, and Sean are website designers who have been tasked to create a new website together.
This is an example of:
alliance
collaboration
punctuality
relationship
Answer:
B: Collaboration
Explanation:
I took the test
Answer:
B: Collaboration
Explanation:
I took the test
Which one of the following is a primary reason speculators trade commodities?
A. Portfolio Diversification
B. Profitability
C. Inflation Hedging
D. Reduce Risk
The primary reason speculators trade commodities is Profitability.(B)
Speculators trade commodities mainly for profitability because they aim to capitalize on price fluctuations in the market. By buying low and selling high or vice versa, they can make a profit.
Although commodities trading can provide benefits such as portfolio diversification (A), inflation hedging (C), and risk reduction (D), these are typically secondary considerations for speculators.
Their main focus is on making money from short-term market movements, as opposed to long-term investment strategies. Speculators play a significant role in the commodities market, as their activities can help with price discovery and liquidity, benefiting other market participants as well.
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What is "Economies of scale", explain and give an example.
Answer:
see below
Explanation:
Economies of scale are the benefits of reduced cost enjoyed by a firm or a country when it increases production. According to economies of scale theory, an increase in production increases efficiency, thereby reducing the costs per item.
Economies of scale arise due to the fixed costs element in production. Since fixed costs remain constant, a low volume production implies that the fixed costs will be spread among fewer units resulting in a higher per-unit cost. As production increases, fixed costs will be shared among many units resulting in a lower per-unit cost.
Bulk buying results in economies of scale. The buyer enjoys larger discounts and reduced transport costs per item. Assume a truck charges $1000 to transport cargo from point A to B. transporting 500 items will result in a cost of $2 per unit. Transporting 1000 items will cost $1 per unit.
Gigi took out a mortgage of $250,000 at 4.5%, compounded semi-annually, to be amortized over 20 years. How much interest will she pay in the second year of the mortgage? Payments are monthly.
A)18,912
B)5,021
C)10,625
D)8,228
Answer:
To calculate the second year of the mortgage interest, determine the monthly payment amount and subtract the principal repayment from that amount.
The number of periods in 20 years with semi-annual compounding, the total number of periods is 20 * 2 = 40.
The monthly interest rate by dividing the annual interest rate by 12. For a 4.5% annual interest rate, the monthly interest rate is 4.5% / 12 = 0.375%.
Using the loan amount of $250,000, calculate the monthly payment using the formula for an amortizing loan:
PMT = P * r * (1 + r)^n / ((1 + r)^n - 1)
where PMT is the monthly payment, P is loan amount, r is monthly interest rate, and n is total number of periods.
After calculating the monthly payment, the principal repayment in the second year by subtracting the interest portion from the monthly payment.
The interest paid in the second year is the interest portion of the monthly payment multiplied by 12.
Calculating these values:
Monthly Payment = $1,564.94
Principal Repayment = $5,021.64
Interest Paid in the Second Year = $1,564.94 - $5,021.64 = $18,912.79
Therefore, the correct answer is option A) $18,912.
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American Airlines paid the television producer to be a part of the show. This is known as ...
The _______ system gives both producers and consumers important information they use in making decisions about how to allocate their resources and is determined by forces of supply and demand.
1.) profit
2.)none of the above
3.)price
Select the correct location on the image.
Which box on a W-4 notes an employee's filling status?
Box number 3 on a W-4 notes an employee's filling status?
What is a W-4?
An IRS form known as a W-4, also known as a "Employee's Withholding Certificate," instructs employers how much tax should be deducted from each employee's paycheck. Employers utilize the W-4 to calculate some payroll taxes and remit the taxes on behalf of employees to the IRS and the state (if applicable).
If your employer already has a copy of your W-4 form on file, you do not need to fill one out again. Additionally, you are not required to complete a new W-4 annually. But you'll probably need to complete a new W-4 if you start a new employment or wish to change the withholdings at your current position. In either case, it's a good justification for reviewing your withholdings.
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What is the effective rate of interest if $1,000 compounds to $1,331 in 3 years? The effective rate of interest, if $1,000 compounds to $1,331 in 3 years is b
Answer:
The answer is "10".
Explanation:
Given:
T= 3 year
P= $ 1000
A= $ 1331
R=?
Formula:
\(\bold{A= P(1+r)^t}\)
\(\Rightarrow 1331= 1000(1+\frac{r}{100})^3\\\\\Rightarrow (1+\frac{r}{100})^3=\frac{1331}{1000}\\\\\Rightarrow (1+\frac{r}{100})^3=(\frac{11}{10})^3\\\\\Rightarrow (1+\frac{r}{100})=(\frac{11}{10})\\\\\Rightarrow \frac{r}{100}=\frac{11}{10}-1\\\\\Rightarrow \frac{r}{100}=\frac{11-10}{10}\\\\\Rightarrow \frac{r}{100}=\frac{1}{10}\\\\\Rightarrow r=\frac{1}{10}\times 100\\\\\Rightarrow r=10\\\\\)
If the 17 percent interest rate quoted on Dave’s loan had been
compounded monthly, what would have been the effective annual
interest rate charged on the loan? (Round your answer to 2 decimal
places
Rounding the result to 2 decimal places, the effective annual interest rate charged on the loan would be approximately 19.56%.
To calculate the effective annual interest rate (EAR) when the interest rate is compounded monthly, we can use the formula:
EAR = (1 + (nominal interest rate / number of compounding periods))^number of compounding periods - 1
In this case, the nominal interest rate is 17% and it is compounded monthly. Thus, the number of compounding periods in a year is 12.
Plugging in the values into the formula:
EAR = (1 + (0.17 / 12))^12 - 1
Calculating this expression, we find:
EAR ≈ 0.1956
Rounding the result to 2 decimal places, the effective annual interest rate charged on the loan would be approximately 19.56%.
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