Define an indifference curve? Explain the properties of an indifference curve.

1. The direct material price variance for April is $6,400 favorable.

2. The direct material quantity variance for April is $1,700 unfavorable.

1. The direct material price variance is calculated by multiplying the difference between the actual price and the standard price by the quantity purchased.

Actual quantity purchased = 25,600 pounds

Actual price = $1.94 per pound

Standard price = $1.90 per pound

Direct material price variance = (Actual price - Standard price) x Actual quantity purchased

= ($1.94 - $1.90) x 25,600 pounds

= $0.04 x 25,600 pounds

= $1,024 favorable

Therefore, the direct material price variance for April is $1,024 favorable.

2. The direct material quantity variance is calculated by multiplying the difference between the actual quantity used and the standard quantity by the standard price.

Actual quantity used = 21,400 pounds

Standard quantity = 600 sets x 35 pounds per set = 21,000 pounds

Standard price = $1.90 per pound

Direct material quantity variance = (Actual quantity used - Standard quantity) x Standard price

= (21,400 pounds - 21,000 pounds) x $1.90 per pound

= 400 pounds x $1.90 per pound

= $760 unfavorable

Therefore, the direct material quantity variance for April is $760 unfavorable.

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The journal entries that represent paying cash to reduce a liability are as follows: Dr. Cash 1000 Cr. Notes Payable 1000 Dr. Income Taxes Payable 500 Cr. Cash 500Dr. Cash 300 Cr. Accounts Payable 300.  The correct options are a, c, and d.

When liability is reduced by paying cash, it is typically recorded through a journal entry that reflects the decrease in the liability account and the corresponding decrease in the cash account. This transaction is essential for accurately representing the financial position of a company.

For example, in the journal entry "Dr. Cash 1000 Cr. Notes Payable 1000," the liability account "Notes Payable" is reduced by 1000 units, indicating that the company has made a payment to settle a debt. Simultaneously, the cash account is debited by 1000 units, reflecting the outflow of cash from the company.

Similarly, in the entries "Dr. Income Taxes Payable 500 Cr. Cash 500" and "Dr. Cash 300 Cr. Accounts Payable 300," the respective liabilities are decreased while the cash account is reduced by the same amount.

These journal entries accurately represent the transaction of paying cash to reduce liabilities, ensuring that the financial statements provide an accurate picture of the company's financial health and obligations. Such record-keeping is vital for financial reporting, decision-making, and maintaining transparency in a company's financial operations.

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The invoice price of the bond is $1,144.

To calculate the invoice price, we need to consider the clean price and the accrued interest. The clean price is the price of the bond without any accrued interest, while the invoice price includes the accrued interest.

Step 1: Calculate the accrued interest:

The next coupon payment is due in five months, which means that two semiannual periods have already passed. The coupon rate is 4.6 percent, so the accrued interest for two periods can be calculated as follows:

Accrued Interest = Coupon Rate * Par Value * (Number of Periods Passed / Total Number of Periods)

                = 0.046 * $1,000 * (2/2)

                = $46

Step 2: Calculate the invoice price:

The invoice price is obtained by adding the accrued interest to the clean price. In this case, the clean price is given as $1,140, so the invoice price can be calculated as:

Invoice Price = Clean Price + Accrued Interest

             = $1,140 + $46

             = $1,144

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The step designed to enable a manager to obtain guidance or insights from other managers in an ethical analysis is option c) searching for precedents.

Searching for precedents involves looking for similar situations or cases where other managers have faced similar ethical dilemmas and analyzing how they resolved them. This step allows the manager to gather information and insights from the experiences of others, which can help inform their decision-making process.

In the process of ethical analysis, it is important for managers to seek guidance and insights from their peers and colleagues. Searching for precedents provides an opportunity to learn from past experiences and draw upon the collective wisdom of other managers, ultimately aiding in making an ethical decision that aligns with established norms and values. Therefore, the correct answer is c) searching for precedents.

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The situation of "How come they make more than me?" can be attributed to various factors, including differences in skills, experience, education, performance, and market demand for specific roles. These factors influence an individual's earning potential and can result in salary disparities among employees.

Here is the Explanation:

1. Skills: Employees with specialized skills or expertise that are in high demand may command higher salaries. For example, someone with advanced technical knowledge or unique abilities may earn more than others who possess more general skills.

2. Experience: Years of experience can contribute to higher salaries, as individuals gain valuable insights, knowledge, and expertise over time. Those with more extensive experience in their field often earn more than those who are relatively new or have less experience.

3. Education: Higher levels of education, such as advanced degrees or specialized certifications, can increase earning potential. Certain professions may require specific educational qualifications and individuals who invest in their education may be rewarded with higher salaries.

4. Performance: Performance plays a significant role in determining compensation. Employees who consistently deliver exceptional results, meet or exceed targets, and contribute significantly to the organization's success may be rewarded with higher salaries or performance-based bonuses.

5. Market demand: Supply and demand dynamics in the job market can influence salary discrepancies. If there is a high demand for a particular skill set or expertise, employers may offer higher salaries to attract and retain top talent. Conversely, if certain roles have an oversupply of qualified individuals, salaries may be lower.

6. Negotiation skills: Effective negotiation skills can impact an individual's salary. Some employees may negotiate better compensation packages, leading to higher salaries, while others may not negotiate as effectively or at all, resulting in lower pay.

7. Organizational policies: Internal policies and structures within an organization can also contribute to salary disparities. Factors such as job levels, pay grades, and performance evaluation processes can affect how salaries are determined and distributed.

8. Bias and discrimination: Unfortunately, bias and discrimination can also influence salary discrepancies. Unconscious biases, gender or racial disparities, or other forms of discrimination can result in unequal pay for individuals performing similar roles.

9. Market fluctuations: Economic conditions and market fluctuations can impact salary levels. Industries experiencing growth or facing high demand may offer higher salaries, while those facing challenges or downturns may have lower compensation levels.

Overall, the "How come they make more than me?" situation arises due to a combination of factors, including skills, experience, education, performance, market demand, negotiation skills, organizational policies, bias, and market fluctuations. It is essential for individuals to understand these factors and work towards enhancing their skills, performance, and qualifications to improve their earning potential. Organizations should also strive for fair and transparent compensation practices to minimize salary disparities and promote equal opportunities for their employees.

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The following are three advantages of a product owner with a clear and well-communicated product goal: 1. Alignment of team efforts A clear and well-communicated product goal will help the development team understand the purpose of the product and how it is expected to function. 2. Better prioritization of features When the product owner has a clear and well-communicated product goal, it becomes easier to prioritize the features of the product. 3. Improved customer satisfactionWhen the product owner has a clear and well-communicated product goal, it is easier to deliver a product that meets the customer's needs.

Having a product owner with a clear and well-communicated product goal can bring several advantages to a development team and the overall product development process. Three key advantages are:

Overall, a product owner with a clear and well-communicated product goal brings alignment, focus, efficient resource allocation, and stakeholder satisfaction. These advantages contribute to more effective product development, better collaboration within the team, and ultimately a higher likelihood of creating a successful and impactful product.

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Yes, RiverRocks, Inc. should undertake the project because the NPV is positive ($17.210 million).

To determine whether RiverRocks, Inc. should undertake the project, we need to calculate the net present value (NPV) of the project. The NPV is the difference between the present value of cash inflows and the present value of cash outflows.

Using the WACC method, we discount each cash flow by the weighted average cost of capital (WACC) to calculate their present values. The WACC for RiverRocks is given as 12.9%.

Year Cash Flow​ Discount Rate PV of Cash Flow

0 ($50.8) 1.129 ($57.381)

1 $9.1 1.129 $10.293

2 $20.4 1.129 $22.996

3 $20.8 1.129 $23.486

4 $15.8 1.129 $17.816

To calculate the NPV, we sum up the present values of the cash flows:

NPV = ($57.381) + $10.293 + $22.996 + $23.486 + $17.816 = $17.210 million

The calculated NPV of the project is $17.210 million. Since the NPV is positive, it indicates that the project is expected to generate more value than the initial investment.

Therefore, RiverRocks, Inc. should undertake this project. The positive NPV suggests that the project's cash flows are expected to exceed the cost of capital, resulting in increased shareholder wealth.

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The overhead absorption rate per machine hour is $1.08.

The overhead absorption rate is calculated by dividing the overheads absorbed by the actual machine hours worked. So, we need to calculate the overheads absorbed first.

Overheads absorbed = Allocated + Apportioned + Reapportioned= 13,122 + 7,920 + 2,988= $24,030Then, we need to calculate the actual machine hours worked:

Machine hours = Units produced ÷ Rate per hour= 216,000 ÷ 120= 1,800

Now, the overhead absorption rate per machine hour can be calculated as:

Overhead absorption rate = Overheads absorbed ÷ Machine hours= $24,030 ÷ 1,800= $13.35

But we are asked to calculate the overhead absorption rate per machine hour.

So, we divide the overhead absorption rate by the number of machine hours:

Overhead absorption rate per machine hour = Overhead absorption rate ÷ Rate per hour= $13.35 ÷ 12= $1.08

Thus, the overhead absorption rate per machine hour is $1.08.

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The beta of Mun Corporation's common stock is 0, indicating no systematic risk and no relationship with market returns.

To calculate the beta of Mun Corporation's common stock, we can use the formula:

[tex]\[\text{Beta} = \frac{\text{Covariance}(r_{\text{mun}}, r_{\text{market}})}{\text{Variance}(r_{\text{market}})}\][/tex]

Given:

Covariance between Mun Corporation's common stock returns and the return on the market portfolio = [tex]0.0415[/tex]

Standard deviation of the market [tex](r_{\text{market}}) = 0.5[/tex]

Standard deviation of Mun Corporation's common stock returns [tex](r_{\text{mun}}) = 0.0[/tex]

Since the standard deviation of Mun Corporation's common stock returns is 0, it means there is no variability or risk associated with the stock. Therefore, the beta of Mun Corporation's common stock would be 0, indicating that the stock's returns do not move in relation to the market returns and do not exhibit systematic risk.

In conclusion, the beta of Mun Corporation's common stock is 0, indicating that the stock's returns do not vary with the returns of the market portfolio and it is not exposed to systematic risk.

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The given statement "Crest is a cavity fighter" is an example of a positioning strategy based on the attributes of the product. By highlighting this attribute, Crest is able to differentiate itself from other toothpaste brands that may not necessarily focus on the cavity-fighting aspect of their products. The correct option is C.

Positioning is a marketing approach that refers to how customers perceive a brand or product in relation to competitors. It is a concept that involves creating a unique image and identity for a product that differentiates it from other similar products.Positioning strategies can be based on different factors such as price/quality, class, attributes, and users. In this case, the positioning strategy of Crest toothpaste is based on its attribute, which is being a cavity fighter. Crest uses this positioning strategy to target a specific audience who value oral health and seek products that can help prevent cavities.

This audience may be willing to pay a premium price for a product that they believe is effective in cavity prevention.Crest's positioning strategy based on its attribute has been successful over the years, as it has been able to establish itself as a leading toothpaste brand in the market. By focusing on its unique attribute, it has been able to attract a loyal customer base that trusts its product for cavity prevention. The correct option is C.

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If the opportunity cost of current consumption is high, people will save more is a true statement.

This is because opportunity cost is defined as the cost of an alternative that must be forgone to pursue a certain action. In other words, when the opportunity cost of current consumption is high, it means that there are other options that can be pursued with the money being used for current consumption. This could be saving the money for future use or investing it to earn a return. Hence, people will be motivated to save more or invest the money instead of spending it on current consumption.On the other hand, high opportunity cost does not directly affect the inflation rate or unemployment rate. Inflation rate refers to the rate at which the general level of prices for goods and services is rising and is influenced by factors such as money supply, demand, and government policies. Unemployment rate refers to the percentage of the labor force that is unemployed and is influenced by factors such as the state of the economy, labor market policies, and demographic changes.

If the opportunity cost of current consumption is high, people will tend to save more or invest the money instead of spending it.

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The Bank of England would need to buy bonds for an amount equal to $400 to increase the money supply to 900. The correct answer is option c.

To calculate the answer, first, we need to calculate the money multiplier.

The money multiplier can be calculated as :

$$\text {Money Multiplier} = \frac{1}{\text{currency deposit ratio}}$$

Here, the currency deposit ratio is 0.5.

So, $$\text{Money Multiplier} = \frac{1}{0.5}= 2$$

Now, we can calculate the maximum amount of money that can be created from the given money supply of 600. The maximum money supply can be calculated as

Maximum money supply = Money multiplier × Required reserves

= 2 × Required reserves

= 2 × 0.25 = 0.5

Thus, the maximum money supply that can be created is 0.5 × 600 = 300.

Now, we need to calculate the amount of money needed to reach the money supply of 900.

Amount of money needed = Required money supply - Initial money supply

= 900 - 600 = 300.

To calculate the value of bonds the Bank of England must buy/sell, we can use the equation of exchange as follows:

$$\text{Money supply} = \text{Reserves} \times \text{Money multiplier}$$

Rearranging the above equation, we get:

$$\text{Reserves} = \frac{\text{Money supply}}{\text{Money multiplier}}$$Initial reserves = Required reserves = 0.25 (Given)Initial reserves

= 0.25 × 600 = 150.

Now, we can calculate the required reserves to achieve the new money supply of 900:

Required reserves = Required money supply ÷ Money multiplier

= 300 ÷ 2 = 150 (Because the required reserve ratio is constant.)

So, the bank already holds the required amount of reserves. The bank must create new deposits equal to the amount of money required for the new money supply of 900. This can be achieved by buying bonds equal to the amount of money needed. Thus, the Bank of England would need to buy bonds for an amount equal to $400 to increase the money supply to 900.

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Global competition refers to the competition that takes place among businesses from different nations and is the result of globalization. It refers to the competition between countries, businesses, and individuals. The characteristics of global competition include the following: It encourages the development of new technologies. It promotes innovation. It enhances the quality of products. It encourages investment in research and development. It provides consumers with a wide range of products and services. It improves the efficiency of businesses. It fosters economic growth. Global competition has a significant impact on the world as a whole.

Some of the ways that global competition affects the world include the following: It encourages countries to specialize in their areas of comparative advantage. It fosters economic growth and development in developing countries. It can lead to the outsourcing of jobs. It can lead to the exploitation of workers in developing countries. It can lead to environmental degradation. It can lead to the depletion of natural resources. It can lead to the loss of cultural diversity.

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The sales and use tax is imposed on the transaction when the NY resident's wife returned to NY with the necklace.

Option (b) is correct: When the NY resident wife returned to NY with the necklace, the sales and use tax would be applicable. This is because the wife brought the purchased item into New York, which triggers the use tax. The use tax is a tax on goods purchased outside the state but used within the state.

It is important to note that option (d) includes some additional information about the use tax being limited to the lesser of the value of the necklace at the time of the sale or the value of the necklace when it was brought back to New York. This additional information about the use tax limitation is accurate, but the main trigger for the tax is the wife bringing the necklace back to New York.

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The change in price the bond will experience in dollars is approximately $-5.43.

To calculate the change in price, we need to find the present value of the bond's cash flows at the new yield to maturity.

Given:

Coupon rate = 6.40% (or 0.064)

Yield to maturity (initial) = 7.8% (or 0.078)

Yield to maturity (new) = 7.0% (or 0.07)

Time to maturity = 10 years

Since the bond pays semiannual interest, it will have 20 periods (10 years * 2 periods per year).

Using the formula for present value of a bond, the price of the bond at the initial yield to maturity can be calculated as follows:

PV = (C / 2) * [1 - (1 + r)⁻ⁿ] / r + F / (1 + r)ⁿ

Where:

C = Coupon payment

r = Yield to maturity

n = Number of periods

F = Face value of the bond

Using the given values, we can calculate the price of the bond at the initial yield to maturity:

C = 0.064 * Face value / 2

r = 0.078 / 2

n = 20

F = Face value

Next, we calculate the present value of the bond's cash flows at the new yield to maturity of 7.0% using the same formula but with the updated yield to maturity:

C = 0.064 * Face value / 2

r = 0.07 / 2

n = 19 (as one year has passed)

F = Face value

Finally, we find the difference between the two prices to determine the change in price.

Step 1: Calculate the present value of the bond at the initial yield to maturity.

Coupon payment per period:

C = 0.064 * $1000 / 2 = $32

Number of periods:

n = 10 years * 2 = 20

Yield to maturity per period:

r = 0.078 / 2 = 0.039

Present value of the bond:

PV = (C / 2) * [1 - (1 + r)⁻ⁿ] / r + F / (1 + r)ⁿ

= ($32 / 0.039) * [1 - (1 + 0.039)(-20)] + $1000 / (1 + 0.039)20

≈ $747.78

Step 2: Calculate the present value of the bond at the new yield to maturity.

Coupon payment per period and number of periods remain the same.

New yield to maturity per period:

r_new = 0.07 / 2 = 0.035

Present value of the bond at the new yield to maturity:

PV_new = ($32 / 0.035) * [1 - (1 + 0.035)(-20)] + $1000 / (1 + 0.035)20

≈ $753.21

Step 3: Calculate the change in price.

Change in price = PV_new - PV

= $753.21 - $747.78

≈ $5.43

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To: Chief Financial Officer and President of LG Company

From: [Your Name]

Subject: Analysis of Purchase of New Machine for LG Company and Recommendations

Introduction :This memo analyzes the potential purchase of a new machine by LG Company, which is expected to increase sales volume by 25%. The analysis aims to determine if the investment meets the company's required rate of return of 15% and cash payback period of no more than 3 years. Both quantitative and qualitative factors are considered.

Analysis Results

The calculation shows that the new machine has an annual rate of return of 13.44%, which falls short of the required rate of return. However, the cash payback period is 2.44 years, which is below the maximum limit.

Additionally, the net present value of the investment is positive at $173,475.

Recommendation

Based on the analysis, it is recommended that LG Company should purchase the new machine.

Although the annual rate of return is slightly below the required rate, the cash payback period is within the acceptable range, and the net present value indicates positive value creation.

Additional Factors to Consider

Before making the final decision, LG Company should consider the following factors: allocate cost savings from the new machine for staff training and professional development, evaluate the environmental impact of the new machine compared to the old one, and note the minor change in inventory turnover from 3.45 to 3.47 with the new machine.

Alternate Scenarios

If the required rate of return is 13%, it is recommended to buy the new machine as the annual rate of return exceeds the required rate, and the net present value is positive. However, if the required rate of return is 20%, it is advised not to purchase the new machine as the annual rate of return falls short, and the net present value is negative.

Conclusion

Considering the financial analysis and various factors, it is advisable for LG Company to proceed with the purchase of the new machine. Nonetheless, the company should thoroughly assess the additional considerations mentioned above before finalizing the decision.

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The main reason the aggregate demand curve is downward sloping is due to the interest rate effect. When the overall price level decreases, households and businesses can afford to borrow more, leading to increased consumption and investment, which raises aggregate demand.

The interest rate effect is a key determinant of the downward slope of the aggregate demand curve. When the overall price level falls, individuals and businesses can afford to borrow money at lower interest rates. This leads to increased consumption and investment, as borrowing becomes more attractive. Consequently, aggregate demand rises. Conversely, when the overall price level rises, borrowing becomes more expensive due to higher interest rates. This discourages consumption and investment, leading to a decrease in aggregate demand. Thus, changes in the price level have an inverse relationship with the interest rate, influencing borrowing costs and subsequently affecting aggregate demand.

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Based on the analysis,  px ≤ (2/3) py must be true in equilibrium. The correct answer is option (c).

To determine which of the given options must be true in equilibrium, we need to evaluate the utility function and analyze the conditions that would maximize it.

The utility function is v(x, y) = max(2x + y, x + 3y).

To find the optimal values for x and y, we compare the two terms inside the max operator:

For 2x + y ≥ x + 3y:

x ≥ 2y

For x + 3y ≥ 2x + y:

y ≥ x

From these inequalities, we can conclude that x and y must be greater than or equal to zero (x ≥ 0, y ≥ 0).

To find the equilibrium, we need to consider the cases where each term inside the max operator is maximized.

Case 1: 2x + y is maximized.

In this case, we set 2x + y = x + 3y, which simplifies to x = 2y. Since x ≥ 0, y ≥ 0, and x = 2y, we can conclude that x = 2 and y = 1.

Case 2: x + 3y is maximized.

In this case, we set x + 3y = 2x + y, which simplifies to x = 2y. Since x ≥ 0, y ≥ 0, and x = 2y, we can conclude that x = 0 and y = 0.

Now, let's analyze the given options based on the equilibrium points we found:

(a) px ≤ pv:

This option does not provide enough information about the relative values of px and py to determine its validity.

(b) px < (3/₂) py:

At equilibrium, px = 2 (since x = 2) and py = 1 (since y = 1). Therefore, this option px < (3/₂) py is false.

(c) px ≤ (2/3) py:

At equilibrium, px = 2 (since x = 2) and py = 1 (since y = 1). Therefore, this option px ≤ (2/3) py is true.

(d) px = py:

At equilibrium, px = 2 (since x = 2) and py = 1 (since y = 1). Therefore, this option px = py is false.

Therefore, the correct answer is option (c).

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If Rolfes Company pays the invoice within the discount period, the amount of cash required for the payment is $9,108

The account debited by Rolfes Company to record the return of the merchandise is the "Accounts Payable" account

The terms "1/10, n/30" indicate that a 1% discount is available if the invoice is paid within 10 days. The "n/30" means the total invoice amount is due within 30 days without the discount.

To calculate the discount, we multiply the invoice amount by the discount rate:

Discount = Invoice amount x Discount rate

Discount = $9,200 x 1% = $92

The amount of cash required for payment within the discount period is the invoice amount minus the discount:

Cash required = Invoice amount - Discount

Cash required = $9,200 - $92 = $9,108

The account debited by Rolfes Company to record the return of the merchandise is typically the "Accounts Payable" account. This is because the return reduces the amount owed to the supplier, effectively decreasing the accounts payable balance.

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For every point on the , the contract curve utility possibilities frontier depicts the utility levels of the two customers. The utility of one consumer is plotted on the vertical axis, and the utility of the other consumer is displayed on the horizontal axis.

the graph illustrating the maximum degree of utility that any individual can achieve given the utility levels of other members of society. It represents the outer limits of a range of economic agents' utility possibilities for the specified level of production.

calculates each person's contribution to society's overall welfare. No matter how useful they were at first, everyone is treated equally.

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Carter, Inc expenses are given below.  Effect on the accounting equation of the adjusting entry necessary at December 31, 2016:During December, Carter earned $14,000 salaries which have not been paid yet.

A) An adjusting entry will be required to record the salaries earned but not yet paid. The effect on the accounting equation for the adjusting entry necessary at December 31, 2016 would be as follows:- Liabilities would increase by $14,000 as the salaries payable account will be debited.- Shareholders equity will decrease by $14,000 as the salaries expense account will be credited.

B) Effect on the accounting equation of the following items:1. The signing of the loan on October 1, 2016 by Calzone, Inc: When Calzone, Inc. signs a 9% 4-month $50,000 loan with Reliable Bank on October 1, 2016, the following effect on the accounting equation will occur:-

Assets would increase by $50,000 as the cash account will be debited.- Liabilities would increase by $50,000 as the loan payable account will be credited.2. The recording of the interest on December 31, 2016 by Calzone, Inc: Interest on loan for 4 months at 9% would be as follows: Interest = P x R x T= $50,000 x 9% x 4/12= $1,500. The effect on the accounting equation for recording the interest on December 31, 2016 would be as follows:- Expenses would increase by $1,500 as the interest expense account will be debited.- Liabilities would increase by $1,500 as the interest payable account will be credited.

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Eric's annual salary of $59,750, his maximum allowable monthly housing expenses would be approximately $1,400.58, and his maximum allowable monthly debt payments would be around $1,494.58. With his savings of $18,300.

To determine the maximum amount Eric could afford to borrow for a house, we need to consider his savings and his salary. Typically, lenders use a debt-to-income ratio (DTI) to assess the borrower's ability to repay the loan. Let's calculate Eric's maximum borrowing capacity based on this information.

First, we need to determine Eric's maximum allowable debt payments. Lenders usually follow the 28/36 rule, where no more than 28% of the borrower's gross monthly income should be spent on housing expenses, and the total debt payments (including housing expenses) should not exceed 36% of the income.

Calculate Eric's maximum monthly housing expenses:

Maximum housing expenses = (28% of annual salary) / 12

Maximum housing expenses = (0.28 * $59,750) / 12

Maximum housing expenses ≈ $1,400.58

Calculate Eric's maximum monthly debt payments:

Maximum debt payments = (36% of annual salary) / 12

Maximum debt payments = (0.36 * $59,750) / 12

Maximum debt payments ≈ $1,494.58

Now, let's consider Eric's savings for the down payment. Eric has saved $18,300.

Determine the total amount Eric can afford for a house:

Maximum loan amount = (maximum monthly housing expenses - monthly property taxes and insurance) / monthly mortgage payment per $1,000 borrowed

Maximum loan amount = ($1,400.58 - monthly property taxes and insurance) / monthly mortgage payment per $1,000 borrowed

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The minimum wage law causes unemployment is a positive statement, Unemployment would be lower without a minimum wage law and Minimum wage laws benefit some workers and harm others are positive statements. (Option a, b and c)

Positive statements are statements that can be objectively tested or evaluated based on facts and data. Normative statements, on the other hand, involve value judgments and express opinions about what should or ought to be.

Based on the consequences of a minimum wage presented:

a. "The minimum wage law causes unemployment." - This is a positive statement as it can be evaluated and tested by analyzing empirical data and studying the relationship between minimum wage and unemployment rates.

b. "Unemployment would be lower without a minimum wage law." - This is also a positive statement as it makes a factual claim about the potential impact of the minimum wage law on unemployment levels. It can be evaluated and tested using empirical evidence.

c. "Minimum wage laws benefit some workers and harm others." - This is a positive statement as well, as it describes the different effects that minimum wage laws can have on different groups of workers. It can be evaluated and tested by analyzing the distributional impacts of minimum wage policies.

d. "The minimum wage should be more than $7.25 per hour." - This is a normative statement because it expresses an opinion about what the minimum wage should be. It involves a value judgment and reflects a particular perspective or preference.

To summarize:

Positive statements: a, b, c

Normative statement: d

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The quantity demand must change from approximately 416 units to 456 units when the price changes from $21 to $19, assuming unit-elastic demand. Option A is correct.

If the price elasticity of demand is unit-elastic, it means that the percentage change in quantity demanded is equal to the percentage change in price. In other words, if the price changes by a certain percentage, the quantity demanded will change by the same percentage.

The price changes from $21 to $19, which is a decrease of approximately 9.52% [(21-19)/21 × 100 = 9.52%].

Now, if we assume that the quantity demanded changes by the same percentage, we need to find the new quantity that is 9.52% higher than 416 units.

416 + (9.52% × 416) ≈ 416 + 39.63 ≈ 455.63 ≈ 456 units (rounded to the nearest whole unit).

Hence, A. is the correct option.

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Under public law 86-272, which establishes limitations on a state's ability to impose taxes on certain out-of-state businesses, the activity that does not establish nexus is: solicitation of orders is approved out-of-state, and delivery is made from an out-of-state location. (Option B)

Under Public Law 86-272, the only activity that does not establish nexus (i.e., does not create sufficient connection or presence) for an out-of-state business to be subject to a state's income tax is:

b. solicitation of orders is approved out-of-state, and delivery is made from an out-of-state location.

This means that if a business only engages in solicitation activities in a state and all orders are approved and accepted outside of that state, and if the delivery of the goods is made from an out-of-state location, the business would not establish nexus and would be protected from that state's income tax jurisdiction.

In other words, if the business does not have any physical presence beyond solicitation in the state and does not engage in activities such as delivery or maintaining inventory within the state, it would be exempt from the state's income tax.

It's important to note that the specific application and interpretation of Public Law 86-272 can vary, and it's advisable to consult with a tax professional or legal expert for accurate and up-to-date guidance based on the specific circumstances and relevant state laws.

The correct question is:

Under public law 86-272, which activity does not establish nexus? a. solicitation of orders is approved out-of-state, and delivery is made from an in-state location.

b. solicitation of orders is approved out-of-state, and delivery is made from an out-of-state location.

c. solicitation of orders is approved in-state, and delivery is made from an in-state location.

d. solicitation of orders is approved in-state, and delivery is made from an out-of-state location.

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Activity rates: Activity rates are calculated as the amount of overhead cost per unit of activity. The overhead costs are divided by the total amount of machine setups, machine-hours, or direct labor-hours.1. Compute the activity rate for each activity cost pool.

Machine Setups activity rate = $30,000 ÷ 150 setups= $200 per setup.

Special Processing activity rate = $121,500 ÷ 6,000 machine-hours= $20.25 per machine-hour.

General Factory activity rate = $756,000 ÷ 54,000 direct labor-hours= $14 per direct labor-hour

2. Determine the unit product cost of each product according to the ABC system. Unit product cost of Rims: Direct materials + Direct labor + Manufacturing overhead using ABC system. Manufacturing overhead is calculated by multiplying the activity rate of each activity cost pool with the number of units of that activity used by the product.

Direct Materials $12 per unit Direct Labor $6 per unit (0.30 x $20 per direct labor-hour)Machine Setups $400 per unit (2 x $200 per setup)Special Processing $121.50 per unit (6 x $20.25 per machine-hour)General Factory $378 per unit (27,000 x 0.30 x $14 per direct labor-hour)Total Unit Cost $917.50 per unit.

Unit product cost of Posts:

Direct Materials $10 per unit Direct Labor $10 per unit (0.50 x $20 per direct labor-hour)Machine Setups $400 per unit (2 x $200 per setup)Special Processing $0 per unit General Factory $630 per unit (75,000 x 0.50 x $14 per direct labor-hour)Total Unit Cost $1,040 per unit.

Therefore, the unit product cost of Rims is $917.50 and the unit product cost of Posts is $1,040 in accordance with the ABC system.

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The entry to close the over- or undersupplied at year-end, assuming an immaterial amount, would include a debit to the cost of goods sold for $952. Therefore, option C is correct.

Predetermined overhead rate = Estimated overhead / Direct labor cost

Predetermined overhead rate = $7,500 / $25,500

Predetermined overhead rate ≈ 0.2941 (rounded to four decimal places)

Next, let's calculate the difference between actual and estimated overhead costs:

Overhead variance = Actual overhead - Applied overhead

Overhead variance = $107,900 - ($25,500 * 0.2941)

Overhead variance = $107,900 - $7,494.95

Overhead variance = $100,405.05

Since the overhead variance is an over-supplied amount, it is closed by debiting the Cost of Goods Sold account. This entry reduces the cost of goods sold, resulting in a lower expense and adjusting for the over-supplied overhead amount.

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The statement "Whenever you read a CPI inflation figure, remember that actual inflation is higher, because CPI understates inflation." is usually true because it employs a basket of goods that does not precisely reflect the items that consumers buy every day. It is essential to keep in mind that CPI is a rough indicator of inflation, and the actual cost of living may vary depending on various personal variables.

The Consumer Price Index (CPI) is a widely used measure of inflation that tracks the average price change of a basket of goods and services consumed by households. However, there are some limitations to the CPI that can lead to an understatement of actual inflation:

Overall, while the CPI is a useful indicator of inflation, it is important to recognize its limitations and understand that actual inflation may be higher than what is reported by the CPI.

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The advantage that is not associated with multinational corporations is "significant labor savings, even in highly unionized countries.

"Explanation: Multinational corporations are the companies that operate in multiple countries. These corporations have several advantages. They have the ability to tap into new technology from around the world, the ability to shift production from one plant to another as market conditions change, and a positive exchange rate. They also have the ability to sidestep regulatory problems. The corporations have multiple benefits associated with them.

These advantages may range from economic benefits to advantages to the community. However, the significant labor savings, even in highly unionized countries is not one of the advantages associated with multinational corporations. Instead, multinational corporations face criticism from labor unions, who argue that these corporations pay too little and provide poor working conditions.

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The effective annual rate is defined as the interest rate that is expressed as if it were compounded once per year. Therefore, the correct option is d.

When calculating the effective annual rate, it is important to account for the compounding frequency. Compounding refers to the process of adding accumulated interest back to the principal, allowing it to earn additional interest over time.

The effective annual rate takes into consideration the compounding effect and represents the total interest earned over a year. Expressing the interest rate as if it were compounded once per year allows for easy comparison across different investment or borrowing options.

It provides a standardized measure of the annualized return or cost of borrowing, enabling individuals and businesses to make informed financial decisions.

By assuming a single compounding period per year, the effective annual rate accounts for the compounding effect without considering the specific compounding frequency, such as daily, monthly, or quarterly. This simplification allows for a straightforward comparison between different interest rates and facilitates easier analysis and decision-making.

In conclusion, the effective annual rate is the interest rate expressed as if it were compounded once per year. This standardizes the interest rate calculation and enables meaningful comparisons between different investment or borrowing options.

Understanding the concept of the effective annual rate is essential for making informed financial decisions and evaluating the true cost or return on investments. Therefore, the correct option is d.

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