The average number of customers that are waiting will be 5 customers.How to calculate the average number of customers?
The average number of customers waiting will be:
= 3.00² / 3.529(3.529 - 3.0)
= 4.82 customers
= 5 customers
The average time that a customer will wait will be:
= 1.62 minutes
The average time a customer is in the shop will be:
Ls = λ / μ(μ – λ)
= 3.00/3.529 – 3.000 = 5.671
Therefore, average time will be:
= 5.671/3.00 = 1.890 hours
= 113 minutes
The average utilization of Benny's time will be:
ρ = λ/μ
Learn more about average on:
Below is the solution to the given problem
a. What is the average number of customers waiting?
With one barber and exponential service, this system fits Model 1 in the text. λ = 3.000 per hour (given), μ= 60/17 = 3.529 per hour.
You are looking for Lq here.
Lq = λ / μ(μ – λ) = /3.529 (3.529 – 3.000) = = 4.82 customers
b. What is the average time a customer waits?
Wq = Lq/λ = 4.82/3.00 = 1.607 hours = 96.40 minutes
c. What is the average time a customer is in the shop?
You are looking for Ws here, and need to calculate Ls first.
Ls = λ / μ(μ – λ) = 3.00/3.529 – 3.000= 5.671
Ws = Ls/λ = 5.671/3.00 = 1.890 hours = 113.4 minutes
d. What is the average utilization of Benny's time?
ρ = λ/μ = 3.00/3.529 = 0.85 = 85.0%
Depreciation on equipment for the year is $6,300. Required: (a) Record the journal entry if the company prepares adjustments once a year on December 31. Refer to the Chart of Accounts for exact wording of account titles.(b) Record the journal entry if the company prepares adjustments on a monthly basis on December 31. Refer to the Chart of Accounts for exact wording of account titles.
(a) Dec 31 Depreciation Expense-Equipment 6300 Dr
Accumulated Depreciation-Equipment 6300 Cr
(b) Dec 31 Depreciation Expense-Equipment 525 Dr
Accumulated Depreciation-Equipment 525 Cr
(a) The normal entry to record the depreciation expense is always to debit the depreciation expense account for the relevant asset as the expense is increasing and credit the contra asset account of Accumulated depreciation created against that particular asset.
If the adjustments are prepared once a year, that means the depreciation expense has not been recorded and charged for the whole year and it will be charged whenever the adjustments are made. So, on 31 december when the adjustments are made, we will charge the whole year's deprecation on equipment as depreciation expense and credit accumulated depreciation by the same amount ( in this case 6300 for the whole year).
(b) If the adjustments are made on a monthly basis that means that every month the relevant month's depreciation is charged and recorded as an expense. Assuming the depreciation is a straight line basis, we simply charge the December's depreciation on 31 December which is calculated as,
6300 / 12 = 525 / month
An HVAC company is selling heating and cooling equipment. Between its sales staff and the VP of Marketing, the sales staff would want to a. Price aggressively to ensure sales are made b. Price less aggressively to ensure that profitable sales are made c. Price at cost to minimize sales d. None of the above
Answer: B. Price less aggressively to ensure that profitable sales are made.
Explanation: One of the he main objectives and target of a sales staff is to ensure that pricing is made in such a way that will lead to higher return,higher turn over and higher profits for the company which they represent.
Between its sales staff and the VP of Marketing, the sales staff would want to PRICE LESS AGGRESSIVELY TO ENSURE THAT PROFITABLE SALES ARE MADE IN ORDER TO ENSURE THAT THE MEET THE SET TARGETS IN BOTH VOLUME AND VALUE.
An indifference curve must slope downward towards the right. is positively sloped. may be upsloping or downsloping, depending on whether the two products are complements or substitutes. is upsloping and is concave to the origin.
must slope downward towards the right.
The indifference curve is the curve representing the combination of two products which derives similar satisfaction and the utility which makes the customer distinct.
The properties of the indifference curves are as follows:
1. It slopes downwards towards the right
2. It never be intersected to each other
3. It is convex to the origin
College tuition has risen significantly in the last few decades. For the sake of this problem, let us assume that over the last 20 years, the cost of college, including total tuition, room, and board, paid by full-time undergraduate students went from $2,871 to $16,789 at public institutions and from $6,330 to $33,716 at private institutions. This is an average annual tuition increase of 6.1% at public institutions and 5.7% at private institutions. Over the same time, average personal income after taxes rose from $9,785 to $39,409 per year, which is an average annual rate of growth of personal income of 4.8%. Have these tuition increases made it more difficult for the average student to afford college tuition? No, because the increased costs were in all likelihood offset by commensurate increases in financial aid. Yes, because the rate of increase at public institutions was greater than at private institutions, and average students are more likely to enroll at public institutions. Yes, because income did not increase as much as tuition at either private or public colleges and universities. No, because average incomes remained above the average costs of attending both private and public institution
Yes, these hikes in tuition fees made it increasingly challenging for the typical student to finance college.
One factor for the rise in college fees is the increased number of students applying for admission.
Higher education is required for a successful career in today's world.
An rise in college prices indicates an increase in college demand.
Due to the lower rise in salaries in contrast to college fees, there is less money available for fee payment. Otherwise, supply will fall short of demand.
Scholarships are simpler to get by for intelligent students, but not so much for ordinary students. As a result, arranging that additional amount to bring supply and demand into balance will be tough.
To know whether the increase in tuition made it more difficult for the average student on affording the college tuition we have to make a comparison of the increase in tuition with the average rise in personal income after taxes.
The average rise for annual in tuition at public institutions of 6.4% is 30% higher rate of rise compared to the average annual rise in personal income [= (6.4% - 4.9%) / 4.9% = 0.30].
The average annual rise in private institutions of 6.5% is 33% higher rate of rise [(6.5% - 4.9%) / 4.9%] = 0.33).
Thus the calculations reveal that for a typical person it has become more difficult to afford college.
Classify each of the following as direct or indirect with respect to traceability to product and as variable or fixed with respect to whether the costs fluctuate in total as volume of production changes over wide ranges. Explain your classifications. 1. The cost of components that are assembled into a final product. 2. The cost of supplies consumed when maintenance is performed on machines. 3. The wages of machine operators who work on only one product. 4. The cost of training mechanics who service processing machinery.
The answers are as follows;
1. Direct; variable
2. Indirect; variable
3. Direct; variable
4. Indirect; variable
Just as stated in the question,
Direct costs are directly associated/traceable to product
Indirect costs do not have direct association to product, but enhance production
Variable costs are costs that change as volume of production change
fixed costs are costs that do not change with changing volume of product.
Not let me explain the choices one after the other
1. The cost of components that are assembled into a final product; because the components are assembled to form the product, they are directly linked to product, hence the cost is direct, and the total number of components will determine the total volume of product, so if a higher number of product is to be produced, then the total number of components to be purchased will increase, which will in turn increase the total cost of purchasing the components, hence the cost is variable, not fixed.
2. The cost of supplies consumed when maintenance is performed on machines; maintenance of machines do not have direct effect on product, but on the machines used in production, hence the cost here is indirect, the need for maintenance will arise more, depending on the frequency at which the machine is used, so the more frequently the machine is used the higher the product volume and the more the need for maintenance, therefore making cost of maintenance variable. This type of variable cost is known as variable overhead cost, because the price per unit of product is the same, but the total price increases as total product volume increase
3. The wages of machine operators who work on only one product; machine operators are directly involved in production, they operate the production tool, hence their wages is a direct, cost, and since the wage is paid on manufacture of only one product, it means that as the product volume increase, from one to two, the operator will be paid twice, hence is a variable cost. This cost would have been fixed if the operators were not paid per product, but paid monthly, so depending on the volume of product, they have a certain monthly salary.
4. The cost of training mechanics who service processing machinery; mechanics who service machinery, have direct effect on machinery not product, hence the cost of training these mechanics is indirect cost, Increase in the volume of product produced, may call for the acquisition of more machines and the need to employ more mechanics, which implies more cost of training, hence it is a variable cost.
Last year Coral Gables Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total debt ratio was 60.0%. Based on the DuPont equation, what was the ROE
Given: Sales: $325000
Net Income: $19000
Total asset: $250000.
Total debt ratio= 60%
Remember; Dupoint equation´s ROE=
Now let´s find out total liability.
We know, Total liability=
⇒ Total liability=
∴ Total liability= $150000.
Now, finding return on asset.
We know, return on asset=
⇒ return on asset=
∴ return on asset (ROA)= 0.076
Next finding equity multilier.
⇒ Shareholder´s equity=
∴ Shareholder´s equity= $100000.
⇒ Equity multipier=
∴ Equity multipier= 2.5
Finally, based on the DuPont equation. Finding return on equity (ROE).
Return on equity ratio is calculated to know how much profit a company can make out of investor´s money. Dupoint analysis is the method to analyze company´s ability to increase it´s ROE.
Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The value produced by doing your own laundry Funds spent by city governments to renovate their buildings The costs of overfishing and other overly intensive uses of resources The leisure time enjoyed by households
The value produced by doing your own laundry
The costs of overfishing and other overly intensive uses of resources
The leisure time enjoyed by households
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP calculated using the income approach sums up all the income earned by factors of production.
GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export
Government spending on building is measured in the calculation of GDP as part of government spending.
Services rendered to ones self is not included in the calculation of GDP. So, the value produced by doing your own laundry is not included in GDP.
The effects of externality and pollution aren't included in the calculation luation of GDP. So, the costs of overfishing and other overly intensive uses of resources.
Enjoyment isn't added in the calculation of GDP.
Other items and activties not included in the calculation of GDP include:
A. Illegal activities
B. Transfer payment by government
C. Intermediate goods
I hope my answer helps you
Improvements at a Harley-Davidson Plant are estimated to be $7.8 million. Construction is expected to take three years. What is the future worth of the project in year 3 at an interest rate of 6% per year compounded quarterly, assuming the funds are allocated (a) completely at time 0, and (b) equally at the end of each year?
To solve for the first part, we have to solve for the futue value of a lump sum
As this is future worth, te value will be negative.
Then, we solve for thre payment equally at the end of each year:
7,800,000 / 3 = 2,600,000
1st 2nd 3rd
The first capitalize for 2 period
the second for one period and te third for none.
Third year 2,600,000
Total worth = 8,268,360
Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manufactured by Lollie Corp. The machine can be used for 10 years and then sold for $10,000 at the end of its useful life. Lollie has presented Kiddy with the following options:1. Buy machine. The machine could be purchased for $160,000 in cash. All insurance costs, which approximate $5,000 per year, would be paid by Kiddy2. Lease machine. The machine could be leased for a 10-year period for an annual lease payment of $25,000 with the first payment due immediately. All insurance costs will be paid for by the Lollie Corp. and the machine will revert back to Lollie at the end of the 10-year period.Required:Assuming that a 12% interest rate properly reflects the time value of money in this situation and that all maintenance and insurance costs are paid at the end of each year, determine which option Kiddy should choose. Ignore income tax considerations.
The lease would be a better option as their net preset worth is lower than purcahse the machine and carry their cost.
Option A purchase
operating cost 5000 per year we solve for the present value of an annuity
PV of the salvage value
-160,000 - 28,251.11 + 3,219.73 = -185.031,38
Option B Lease
10 payment beginning immediatly of $25,000
Therefore, it is an annuity-due
Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50% of total unit costs. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the:
Total cost per unit will decrease.
Variable cost is 0.5 of the total cost
Given that total cost=fc+vc
Find FC since VC is given
1st month cost behavior
$60*0.5 = $30
$300,000/10,000 = $30 (fixed)
2nd month cost behavior
$300,000/10,500 = $28.57(fixed)
Add the different months together
30+28.57 = 58.57 < 60
Now, the payoff: How productive is the average person in the top 20% compared with the average person in the bottom 80% of the planet? Answer this by dividing your answer to question 3c by your answer to question 4b. This chapter and the next are devoted to explaining why this ratio is so large.
The productivity of an average person in the top twenty percent is four (4) times that of an average person in the bottom eighty percent.
In questions 3c and 4b, the values of the gross domestic products for the top twenty (20) percent and the bottom eighty (80) percent are $22,800 and $5,700 respectively. Therefore, if we take the ratio of the two values, we have:
$22800/$5700 = 4
The productivity of an average person in the top twenty percent is four (4) times that of an average person in the bottom eighty percent.
How many units would have to be sold to yield a target operating income of $26,000, assuming variable costs are $27 per unit, total fixed costs are $2,000, and the unit selling price is $32?
The number of units must be sold to yield a target operating income of $26,000: 5,600 units
Contribution margin per unit = Sales price – Variable cost per unit = $32-$27=$5
The number of units must be sold to meet the target income figure are calculated by using following formula:
The number of units must be sold = (Total fixed cost + Targeted income) / Contribution margin per unit = ($2,000 + $26,000)/$5 = 5,600 units
Identify the consequences of having dissatisfied employees and describe ways of applying the four theories of job satisfaction and how you would use them to boost job satisfaction. Discuss how intrinsic and extrinsic motivation factors affect job satisfaction. When answering consider how goals may help with job satisfaction and how to design jobs to enhance motivation.
Dissatisfied workers lead to lack of motivation, poor attitude and lack of productivity.
The consequences of having dissatisfied workers include to job stress, lack of motivation, poor attitude, lack of productivity and increase in employee turnover rates.
Job satisfaction theories aims to identify factors influencing job satisfaction and how employee job satisfaction can be increased. Job satisfaction theories are Maslow’s Needs Hierarchy Theory, Herzberg’s Motivator-Hygiene Theory, Job Characteristics Model and Dispositional Approach. Job satisfaction theories are essential because it helps in knowing what motivates workers and how productivity can be increased at the workplace.
Extrinsic motivation are external sources of motivation such as title, financial rewards, power, fame and status while Intrinsic motivation are internal motivation sources such as learning and growth, service and duty, achievement of goals etc. Intrinsic and extrinsic motivation are essential in motivating employees in order for them to achieve organizational goals, be creative and have a good attitude towards their job.
How might the telemarketer’s job be redesigned so that employees are more satisfied and challenged by their work? Is telemarketing a job that can be enriched and remain highly productive, or is it more like an assembly line?
(1) Adopt other technological driven marketing techniques including the social media.
(2) Flexible work schedule
(3) Job rotation
(4) participation in decision making as it regards to their work.
Yes,telemarketing job can be enriched and become more productive.
Through assigning higher and attractive responsibilities
Through extra earnings for effective contributions etc
Explanation: Telemarketing job is a marketing or sales representation job done through the telephone communications or through web conferencing system.
Telemarketers help to act as call center personnel, Customer relationship officers etc.
The following ways are ways of making the job more satisfying and challenging
(1) Adopt other technological driven marketing techniques like inculcation of the social media
(2) job flexibility which allows them to work with some levels of freedom
(3) Job rotation which ensures that they are engaged in other roles from time to time.
(4) Allowing them to be part of the decision makers in relationship to the work they do.
Telemarketing job can be enriched, by giving the telemarketers higher responsibilities that will improve on their capabilities and earnings etc.
Ensuring that they can make extra earnings through effective contributions.
On October 31, 2018, the bank statement shows that your company has $14,656.73 in its checking account. You are aware of three outstanding checks that total of $4,662.19. During October, 2018, the bank rejected two deposited checks from customers totaling $ 1,079.19 because of insufficient funds and charged you $46.00 in service fees. You had not yet received notice about the bad checks, but you were aware of and have recorded the $46.00 of service fees. Prior to adjustment on October 31, 2018, your Cash account would have a balance of: (Round your answer to 2 decimal places.)
The options are missing for what shall be cash account balance prior to 31 October 2015
b) $ 20,898.11
C) $ 18,639.73
d) $ 8,961.35
The Answer is D ) $ 8,961.5
Bank Statement Balance $ 14,656.73
Add: Fees Reversed $46
Less: Outstanding Checks ($4,662.19)
Less: Checks rejected-customers ($ 1,079.19)
Balance as per cash book $8,961.35
1.Fees was already recorded in cash book therefore added back
2.Outstanding checks were recorded in cash book but not in bank statement therefore reversed from bank balance
3. Insufficient checks also reversed as they are already deducted from cash book
On October 31, 2019, Simeon Builders borrowed $1,200,000 cash from Star Finance Co. by issuing a $1,250,000, 6-month, non-interest-bearing note. Simeon Builders' effective annual interest rate on this loan is:
To find the effective annual interest rate, we must first find the total amount of interest paid, and this amount is equal to the repaid amount minus the borrowed amount:
Interest paid = $1,250,000 - $1,200,000
To find the interest rate, we divided the interest paid by the borrowed amount:
Interest rate = $50,000 / $1,200,000
Finally, we multiply this number by 2 to obtain the effective annual interest rate:
Effective Annual Interest Rate = 4.2% x 2
MC increases becausea. MC naturally increases as the firm nears capacity. b. labor is paid overtime wages when volume increases. c. in the short run, MC always increases. d. the law of diminishing returns takes effect.
The correct answer is letter "D": the law of diminishing returns takes effect.
The Law of Diminishing Marginal Returns states that as the number of a given factor increases in production it causes smaller increases in the output's costs. When it comes to Marginal Costs (MC), it represents the additional costs of adding one more unit of production. In the beginning, it implies increasing output but it rises at a diminishing rate until the costs become minimum.
Thus, the MC increases can be explained using the law of diminishing marginal returns.
The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjustment. For each account that requires adjustment, indicate (1) the type of adjusting entry and (2) the related account in the adjusting entry. Account (1) Type of Adjustment (2) Related Account (a) Accounts Receivable. (b) Prepaid Insurance. (c) Equipment. (d) Accumulated Depreciation—Equipment. (e) Notes Payable. (f) Interest Payable. (g) Unearned Service Revenue.
The account wise answers are given below
a) Account receivable are adjusted for any doubtful debts and uncollectible accounts from customers.
In this account, the adjusting entry we make as follows
Bad debt Expense Dr.$$
Provision for Bad debts Cr. $$
When it is certain that customer will no longer pay the specified amount, the write off entry is made as follows
Provision for Bad Debts Dr. $$
Accounts Receivable Cr. $$
It is adjusted when the period for it is paid in advance has lapsed or expired then expense is recorded and prepaid insurance is reduced
The adjusting entry is made as follows,
Insurance Expense Dr.$$
Prepaid Insurance Cr.$$
c) & d) Equipment & Accumulated Depreciation
The Assets are adjusted over their useful life for depreciation. When an asset is used during whole year, its cost is reduced and that reduction is recorded as deprecation expense and accumulated depreciation.
The Adjusting Entry is made
Depreciation Expense Dr. $$
Accumulated Depreciation Cr. $$
When asset is sold the adjusting entry is made,
Accumulated Depreciation Dr. $$
Asset-Equipment Cr. $$
e)Notes Payable & f) Interest payable
These are liabilities. When any expense is accrued and any interest is payable but not paid on loan received is recoded is liability.
The adjusting entry is made,
Interest Expense/Notes Expense Dr.$$
Interest Payable or Notes Payable Cr.$$
g) Unearned Service Reveune
It is liability in nature when services are not rendered but amount for those services is paid in advance then its called unearned service revenue.
When those services are actually rendered to customers, the adjusting entry is made,
Unearned Service revenue Dr. $$
Service revenue Cr. $$
Jonah’s Fishery has EBITDA of $86 million. Jonah’s has market value of equity and debt of $555 million and $60 million, respectively. Jonah’s has cash on the balance sheet of $33 million. What is Jonah’s EV ratio? (Round your answer to 2 decimal places.)
The Jonah’s Fishery EV ratio shall be determined through the following mentioned formula:
Jonah’s Fishery EV ratio= EV/ EBITDA
EV= Market value of equity+ Market value of debt- Cash
EV =$555 million+$60 million-$33 million=$582 million
So applying the above data to the EV ratio formula:
Jonah’s Fishery EV ratio= $582 million/$86 million=6.77
Johnson & Johnson has been able to establish strong brand equity for its line of baby products. What benefits does J&J have because of its brand equity for these products?
Building brand value is an extremely important strategy for any company. This is a strategy that requires efforts and resources so that the organization can stand out from its competitors in the market.
Johnson & Johnson, has been investing in building brand value over the years, when we think about the brand, we soon come to mind the television advertisements that feature babies and parents happy when using the brand's products. This is an advertising effort that the company uses to penetrate the minds and emotions of potential consumers, the company uses essential elements to certify that its products will satisfy the needs of babies and parents, proving to be the most gentle and sensitive brand in the world. market.
The biggest benefits when building a brand of value, is that J&J manages to be a reference brand for consumers by building relationship and brand value. With this, the company conquers more and more market and guarantees a solid positioning that generates loyalty and trust.