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Oduvanchick
13 days ago
8

A company currently has two product lines and is considering dropping

Business
1 answer:
Nady [2.9K]13 days ago
4 0
Product XYZ should remain as it brings in a contribution of $5,000 towards covering fixed costs. The profit contribution for Product XYZ can be calculated as follows: Sales revenue = $60,000, subtracting Cost of Goods Sold = ($40,000). The resulting Contribution Margin stands at $20,000. After accounting for Traceable Fixed Costs of ($30,000 - $15,000), which equals ($15,000), the Profit Contribution ends up being $5,000. As a reminder, the fixed cost element overseen from Product XYZ should be excluded. Given that Product XYZ contributes $5,000 towards fixed costs, it should not be discontinued.
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A small college employs two economists. Rob has been employed by the college for 15 years and Bill has been employed for one yea
soldi70 [3150]

Answer:

E. efficiency wages

Explanation:

This situation does not represent discrimination, as Rob has a solid history with the company (15 years). Even though their productivity levels might seem comparable, Rob’s extensive experience warrants the higher compensation.

This exemplifies the efficiency wage hypothesis, which posits that higher salaries can enhance employee productivity. Consequently, this creates an incentive for Rob to remain with the company.

5 0
1 month ago
Kathy and Annise are a married couple who file jointly. In the current year, they have net ordinary income of $10,000 from a par
Scilla [3267]
$100,000. Since Kathy and Annise are a married duo filing jointly, their adjusted gross income (AGI) is computed by subtracting a net loss from their initial AGI. Currently, AGI amounts to $120,000, with a rental loss of $30,000 and a partnership gain of $10,000. The revised AGI becomes Current AGI - Net Loss, or 120,000 – 20,000, leading to a revised AGI of $100,000. Calculating the net loss: Rental loss – partnership gain equals $30,000 - $10,000, resulting in a net loss of $20,000. Notably, Kathy and Annise may claim this $20,000 loss against other income, as they actively engage in rental activities.
3 0
23 days ago
Suppose the daily change in price of a stock is normally distributed with mean = .20 and standard deviation = .30. What price ch
Mariulka [3182]
The value that distinguishes the lowest 25% of data from the highest 75% is -0.00235. Previous concepts: Normal distribution, which describes a "probability distribution that is balanced around the mean, indicating that data close to the mean occur more frequently than those further away from it". The Z-score is "a statistical measurement relating a value to the mean of a set of values, in terms of its distance in standard deviations from the mean". To solve the problem, let X represent the variable of interest in a population; we know the distribution for X is given by:... We want to find a value a to satisfy the condition:... Both conditions here are equivalent. We can apply the Z-score again to find the value a. The figure shows that the z value meeting the condition with 0.25 of the area to the left and 0.75 to the right is z = -0.674. Therefore, P(Z < -0.674) = 0.25 and P(z > -0.674) = 0.75. We can use condition (b) previously to derive... We know the z value that satisfies the equation, so we can proceed to solve for a, which gives us... Thus, the value that separates the lower 25% of data from the upper 75% is -0.00235.
4 0
18 days ago
A recent income statement of McClennon Corporation reported the following data:
stepan [3001]
The right answer is b. The output units sold totaled 8,000. The sales revenue reached $9,600,000. Variable costs stand at $6,000,000, with fixed costs amounting to $2,600,000. The product's price is $1,200. Average variable cost calculates to $750. Profit calculation results in TR - TC, hence Profit = $1,270,000 = $1,200Q - $750Q - $2,600,000. Resulting in $3,870,000 = $450Q, thus Q is 8,600 units.
7 0
11 days ago
Consider an 8% coupon bond selling for $953.10 with three years until maturity making annual coupon payments. the interest rates
arsen [2988]

Answer:

a) YTM = 9.8%

b) realized compound yield = 9.9%

Explanation:

a) PMT is 80

par value FV = 1000

coupon rate = 8%

current price PV = 953.1

years to maturity n = 3

Yield to maturity (YTM) is calculated as \frac{PMT+(FV-PV)/n}{(FV+PV)/2} = \frac{80+(1000-953.1)/3}{(1000+953.1)/2}= 9.8%

b) r2 = 10% = 100%+10% = 1.1

r3 = 12% = 100%+12% = 1.12

To find the realized compound yield, we first need the future value (FV) of the principal and reinvested coupons.

FV = ($80 * 1.10 * 1.12) + ($80 * 1.12) + $1080 = $1268.16

Let a be the rate at which the future value equals $1268.16.

953.1(1+y)³ = $1268.16

(1+y)³ = 1.33

1+y = 1.099

y = 0.099 = 9.9%

5 0
1 month ago
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