Explanation:

The journal entry is shown below:

Warranty expense liability A/c Dr $700

To Inventory A/c $700

(Being the replacement is recorded)

For recording this given transaction, we debited the warranty expense liability for $700 and credited the inventory account for $700 so that the proper posting could be done to their respective accounts

2. Knowing that the HR manager never followed up with Richard, should he have followed up with the manager as to the validity of the survey data? Explain your answer.

Answer:

No

Explanation:

Survey data collection and validation depend on the ability of the HR manager, not suppose to be other way round, Since Richard was not the HR manager and the aim of the data may not be cleared to Richard.

Survey data can be define as the resultant data that is collected from a sample of respondents that took a survey. It is comprehensive information gathered from a define audience about a particular issues of interest to conduct research on the basis of this collected data

3. A company manufactures two types of products: A and B. Three resources R1, R2, and R3 are required to make these products. a. Each unit of product A requires 8 units of R1 and 4 units of R2. b. Each unit of product B requires 2 units of R1, 5 units of R2, and 3 units of R3. The availabilities of resources R1, R2, and R3 are 500, 400, and 180, respectively. The manufacturer also makes a profit of $20 and $50 for products A and B, respectively. Formulate a linear programming problem whose solution will tell the manufacturer how to maximize the total profit. • What are the decision variables? • What is the objective? • What is the objective function? • What are the constraints?

Answer:

(i)The units of production of Product A and B (x and y) are the decision variables

(ii)Objective is to maximize profit

(iii)Objective function, Max P=20x+50y

(iv)The Contraints are:

8x+2y500....(i)

2x+5y400.......(ii)

3y180

x>0, y>0

Explanation:

Let the number of Product A=x

Let the number of Product B=y

Each unit of product A requires 8 units of R1 and 4 units of R2.

Each unit of product B requires 2 units of R1, 5 units of R2, and 3 units of R3

The availabilities of resources R1, R2, and R3 are 500, 400, and 180

Since R1 500,

Product A requires 8 units of R1 per production unit

Product B requires 2 units of R1 per production unit

Total Unit of R1 possible is given by the inequality: 8x+2y500....(i)

Since R2 400,

Product A requires 2 units of R2 per production unit

Product B requires 5 units of R2 per production unit

Total Unit of R2 possible is given by the inequality: 2x+5y400....(ii)

Since R3 180,

Product B requires 3 units of R2 per production unit

Total Unit of R2 possible is given by the inequality: 3y180....(iii)

Since the manufacturer also makes a profit of $20 and $50 for products A and B, our objective is to maximize profit

Therefore: Objective function, Max P=20x+50y ......(iv)

A finance company offers a "12% plan". The cost of a one-year loan is 12%, and this cost is added to the loan. This total is then divided by 12 to get the monthly payments. Calculate the effective interest rate being charged for a loan of $9,000.

Answer:

840

Explanation:

Interest rate=12%

Interest for $9000= 12% × 9000

Interest for $9000= 12/100 × 9000

Interest for $9000 = $1080

Interest + principal loan amount = $9000 + $1080 = $10080

Monthly payment = $10080/12months = $840

A segment of a company with an ROI of 25% has an income of $84,000. The company's required rate of return on segment investments is 18%. The segment's residual income is: A. $14,280 B. $33,600 C. $21,000 D. $23,520

Answer:

D. $23,520

Explanation:

The cost of investment in the segment shall be determined from the ROI formula in the following mentioned manner:

ROI=Net profit/cost of investment

25%=$84,000/Cost of investment

Cost of investment=$336,000

The residual income of the segment of any company is determined through following mentioned formula:

Residual income=Net income-(required rate of return*cost of investment)

Residual income=$84,000-(18%*$336,000)

=$23,520

So based on the above calculations, the answer is D. $23,520

A signal cos(1000t) is sampled for further processing. Due to an error in the sampling frequency, the output of the sampler is cos(100t). Determine the sampling frequency.

Answer:

The Sampling frequency is 0.1

Explanation:

Sampling frequency = 100/1000 =0.1

Benny the Barber owns a one-chair shop. At barber college, they told Benny that his customers would exhibit a Poisson arrival distribution and that he would provide an exponential service distribution. His market survey data indicate that customers arrive at a rate of 3.0 per hour. It will take Benny an average of 17 minutes to give a haircut. Based on these figures, find the following:a. What is the average number of customers waiting? (Round your answer to 4 decimal places.)b. What is the average time a customer waits? (Round your answer to nearest whole number.)c. What is the average time a customer is in the shop?d. What is the average utilization of Benny's time? (Round your answer to the nearest whole percent.)

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:

= 4.82/3.00

= 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

= 3.00/3.529

= 85.0%

Learn more about average on:

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Answer:

Below is the solution to the given problem

Explanation:

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.

Answer:

(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

Explanation:

(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.

Answer:

must slope downward towards the right.

Explanation:

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.

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Answer:

Explanation:

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.

Answer:

The answers are as follows;

1. Direct; variable

2. Indirect; variable

3. Direct; variable

4. Indirect; variable

Explanation:

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

Answer:

19%

Explanation:

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=

∴ Shareholder´s equity= $100000.

Equity multipier=

⇒ Equity multipier=

∴ Equity multipier= 2.5

Finally, based on the DuPont equation. Finding return on equity (ROE).

ROE=

⇒ ROE=

∴ 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

Answer:

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

Explanation:

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?

Answer:

A) -9,289,924.80

B) -8,268,360.00

Explanation:

To solve for the first part, we have to solve for the futue value of a lump sum

Principal 7,800,000.00

time 3.00

rate 0.06000

Amount 9,289,924.80

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.

Amount 2,921,360.00

Amount 2,756,000.00

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.

Answer:

The lease would be a better option as their net preset worth is lower than purcahse the machine and carry their cost.

Explanation:

Option A purchase

F0 -160,000

operating cost 5000 per year we solve for the present value of an annuity

C 5,000.00

time 10

rate 0.12

PV -$28,251.1151

PV of the salvage value

Maturity $10,000.0000

time 10.00

rate 0.12000

PV 3,219.7324

present worth

-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

C 25,000.00

time 10

rate 0.12

PV -$158,206.2448

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:

Answer:

Total cost per unit will decrease.

Explanation:

Solutions:

Variable cost is 0.5 of the total cost

Given that total cost=fc+vc

Find FC since VC is given

Therefore :

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

Then have

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.

Answer:

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.

Explanation:

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?

Answer:

The number of units must be sold to yield a target operating income of $26,000: 5,600 units

Explanation:

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.

Answer:

Dissatisfied workers lead to lack of motivation, poor attitude and lack of productivity.

Explanation:

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?

Answer:PART A

(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.

PART B

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.

2. Knowing that the HR manager never followed up with Richard, should he have followed up with the manager as to the validity of the survey data? Explain your answer.
3. A company manufactures two types of products: A and B. Three resources R1, R2, and R3 are required to make these products. a. Each unit of product A requires 8 units of R1 and 4 units of R2. b. Each unit of product B requires 2 units of R1, 5 units of R2, and 3 units of R3. The availabilities of resources R1, R2, and R3 are 500, 400, and 180, respectively. The manufacturer also makes a profit of $20 and $50 for products A and B, respectively. Formulate a linear programming problem whose solution will tell the manufacturer how to maximize the total profit. • What are the decision variables? • What is the objective? • What is the objective function? • What are the constraints?
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