4. A company makes bicycles. It produces 450 bicycles a month. It buys the tires for bicycles from a supplier at a cost of $20 p

Answer:

E.

Explanation:

An effective information system is crucial for business operations, aiding managers in making informed decisions to fulfill organizational objectives.

An organization can endure and prosper amid stiff competition based on a well-structured information system.

This system assists in making accurate decisions timely or just-in-time. Managers can leverage a robust information system even in atypical situations.

It’s perceived as a process and can be incorporated to devise a comprehensive action or operational strategy.

Response:

The correct response is B. shareholders' liability is limited.

Clarification:

The legal representative of bondholders is a vital entity in the issuance of bonds traded in the stock market. This representative primarily acts to conduct necessary actions for exercising the rights and defending the interests of the holders. Their activities are regulated and involve a range of duties around management, defense, communication, and compliance. Additionally, they serve as a voice for the bondholders towards the issuer, the Financial Superintendence, and other parties involved.

The legal representative will carry responsibility for minor faults in fulfilling their obligations.

Answer:

a) the small bus

b) the medium or large bus

c) the small bus

Explanation:

a) using the maximin criterion, the manager aims to maximize the least possible profit (a pessimistic approach), which results in the following profits:

Bus size Demand

Low Medium High

Small 50 60 70 → minimum profit = 50

Medium 40 80 90 → minimum profit = 40

Large 20 50 120 → minimum profit = 20

Thus, the optimal choice yielding the highest minimum profit is the small bus.

b) applying the maximin criterion, the manager will seek to minimize potential maximum losses, determining losses based on the best profit scenario:

Bus size Demand

Low Medium High

Small 0 -20 -50 → maximum loss = -50

Medium -10 0 -30 → maximum loss = -30

Large -30 -30 0 → maximum loss = -30

Hence, the option that bears the least maximum loss is either the medium or large bus.

c) for calculating the expected value of each option:

small = 30/100*50 + 30/100*60 + 40/100*70 = 61

medium = 30/100*40 + 30/100*80 + 40/100*90 = 72

large = 30/100*20 + 30/100*50 + 40/100*120 = 69

The small bus turns out to be the best choice, as it has the highest expected profit.

Answer:

The calculations are presented below:

Explanation:

1.                       FIFO    LIFO Average cost  

Cost of goods sold      

Beginning inventory       $11,200      $11,200  $11,200

(400 units ×  $28)                          

Purchases                       $16,625    $16,625   $16,625

(475 units × 35)                  

Total goods available $27,825    $27,825   $27,825  

Ending inventory             $18,025    $15,575    $16,695

(525 units)  

Cost of goods sold          $9,800    $12,250    $11,130  

Calculated using ending inventory = 475 × $35 + 50 × $28    

FIFO = $18,025  

For LIFO ending inventory: 400 × $28 + 125 × $35

Results in $15,575  

Average cost is found by: $27,825 ÷ $875    

Which equals 31.8      

Ending inventory is calculated as 525 × 31.8

This leads to $16,695

2.                           FIFO            LIFO         Average

Sales

(307 × $50)                $15,350         $15,350    $15,350

Cost of goods sold     $9,800    $12,250    $11,130

Gross Profit                 $5,550           $3,100      $4,220

Expenses                     $1,680           $1,680      $1,680

Net income                  $3,870           $1,420       $2,540

3. FIFO ranks as 3

LIFO ranks as 2

Average ranks as 1

Response:

Details:

The journal entry for the payment received on April 13 from a customer is recorded as:

Date Account title and explanation Ref Debit Credit

Apr-13 Cash ($5000 - $150)                  $4,850  

         Sales discount ($5000* 3%)      $150  

                    Accounts receivable

                                                                            $5000

(To document the payment received from the customer after discount