All other things held​ constant, if the supply curve for Swiss francs shifts to the​ left, the dollar price per Swiss franc will​ ________ and the equilibrium quantity of Swiss francs supplied and demanded will​ ________. A. ​decrease; increase B. ​increase; decrease C. ​decrease; decrease D. ​increase; increase

The correct answer is: "price elasticity of demand = 4.11"

The demand function represents the quantity of a certain good or service that consumers are willing to purchase in the market at different price levels. The law of demand states that there is an inverse relationship between price and quantity demanded (ceteris paribus, hence, given that the rest remains equal). Therefore, when the price charged decreases, the amount that consumers are willing to purchase increases.

In turn, the elasticity of the demand function measures the sensitiveness of the quantity demanded by consumers when there is a certain price change. It is computed by dividing the percentage change of the price variation by the percentage change in the amount demanded and comparing the two figures like in the chart attached. The formula is attached in a second picture, afterwards the absolute value is applied to the result obtined from the formula.

Price elasticity of demand= I [(664000-495000)/495000)] / [(2,430-2,650)/2,650] I= 4.11  

(the absolute value has been already applied in the formula I I )

This demand is elastic because the figure obtained exceeds 1. It means that  the size of the amount demanded is larger than the size of the price variation, both measured in percentage.

Answer: A company that has a marketing strategy driven by a social marketing concept would most likely promote its sustainability efforts  in its marketing messages.

Explanation:

C. sustainability efforts

Answer:

(a) [tex]P(X\:>\:5.40)=0.9938[/tex]

(b) [tex]P(X\:<\:4.40)=0.0062[/tex]

(c) X=4.975 percent

Explanation:

(a) Find the z-value that corresponds to 5.40 percent

.[tex]Z=\frac{X-\mu}{\sigma}[/tex]

[tex]Z=\frac{5.40-4.15}{0.5}[/tex]

[tex]Z=\frac{1.25}{0.5}=2.5[/tex]

Hence the net interest margin of 5.40 percent is 2.5 standard deviation above the mean.

The area to the left of 2.5 from the standard normal distribution table is 0.9938.The probability that a randomly selected U.S. bank will have a net interest margin that exceeds 5.40 percent is 1-0.9938=0.0062

(b) The z-value that corresponds to 4.40 percent is [tex]Z=\frac{4.40-4.15}{0.5}=0.5[/tex]The net interest margin of 4.40 percent is 0.5 standard deviation above the mean.

Using the normal distribution table, the area under the curve to the left of 0.5 is 0.6915

Therefore the probability that a randomly selected U.S. bank will have a net interest margin less than 4.40 percent is 0.6915

(c)  The z-value that corresponds to 95% which is 1.65

We substitute the 1.65 into the formula and solve for X.[tex]1.65=\frac{X-4.15}{0.5}[/tex]

[tex]1.65\times 0.5=X-4.15[/tex][tex]0.825=X-4.15[/tex]

[tex]0.825+4.15=X[/tex]

[tex]4.975=X[/tex]

A bank that wants its net interest margin to be less than the net interest margins of 95 percent of all U.S. banks should set its net interest margin to 4.975 percent.

Answer:

If Victory decides to​ upgrade, the  operating​ income increase by $20,000

Explanation:

For calculating the affect  of operating income between two unit levels, the computation of operating income is important.

Steps given for calculating the operating income is given below:

Step 1 : First we have to compute contribution to arrive net operating income .

So, contribution = Sales revenue - variable cost.

Step 2 : Now, the computation of operating income is easy.

Because the operating income is an amount which is come from subtracting fixed cost from contribution.

So, Operating income = Contribution margin - Fixed cost

The computation of both levels is given in the attachment sheet.

Thus,  If Victory decides to​ upgrade, the  operating​ income increase by $20,000

Answer:

WIP Assembly  DEBIT 24,000

WIP Finishing   DEBIT 26,000

Raw materials Inventory CREDIT 50,000

WIP Assembly  DEBIT 35,000

WIP Finishing   DEBIT 25,000

    Wages Payable CREDIT 60,000

Explanation:

Our first goal is to calculate the diference to get the finishing values

50,000 raw materials

assembly 24,000

50,000 - 24,000 = 26,000

Finishing 26,000

60,000 labor cost

Assembly 35,000

60,000 - 35,000 = 25,000

Finishing 25,000

Now we proceed to do the entries:

WIP Assembly  DEBIT 24,000

WIP Finishing   DEBIT 26,000

Raw materials Inventory CREDIT 50,000

WIP Assembly  DEBIT 35,000

WIP Finishing   DEBIT 25,000

    Wages Payable CREDIT 60,000

Important: There is no information about a finished goods or transfer from one process to another, so we should assume both are still in progress and no transfer to either one or finished goods were made.

So the values are transfer to the WIP of each department.

The Journal entries of the assignment of the costs to the processing departments on March 31 are given in the image below.

What are journal Entries?

Journal Entries are the systematic record of an accounting transaction. It is the legal instrument of compliance or making records of any transactions, either economic or non-economic.

Transactions are numbered in an accounting journal that exhibits a company's debit and credit balances. The journal entry can belong of various recordings, each of which is either a debit or a credit.

According to the given transactions, Our first goal is to compute the difference to develop the finishing values.

Raw materials = $50,000

Assembly = 24,000

[tex]\text{Finishing} = \text{Raw Materials} - \text{Assembly}\\\text{Finishing} =\$50,000-\$24,000\\\text{Finishing} =\$ 26,000[/tex]

labor cost =$60,000

Assembly = 35,000

[tex]\text{Finishing} = \text{Labor Cost} - \text{Assembly}\\\text{Finishing} =\$60,000-\$35,000\\\text{Finishing} =\$ 25,000[/tex]

Note:

There is no content about finished goods, so we presume both are still in progression and no movement to either one or finished goods were reasoned.

Therefore, the journal entries are given in the image below.

Learn more about the journal entries, refer to:

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Answer:

It should be continued.

Explanation:

[tex]\left[\begin{array}{ccc}-&continued&discontinued&Sales&200,000&0&Variable Costing&-180,000&0&Contribution&20,000&0&Fixed Cost&-30,000&-20,000&Net Loss&-10,000&-20,000\end{array}\right][/tex]

It is better to continue with the Big Bart Line, because the net loss would increase by 10,000 if eliminated

Answer:

Please see attachment

Explanation:

Please see attachment

Answer:

bad debt expense 885 debit

allowance for doubtful accounts 885 credit

Explanation:

expected uncollectibles

1.5% of AR = 99,000 x 1.5% = 1,485

current balance credit            (600)

Adjustment                              885

When calculating over account receivable, we stimated the allowance so we have to adjsut for the diference.

The year-end adjusting entry for uncollectibles is given in the image below.

What is journal entry?

Journal entry is the systematic record of all the financial transactions, that shows all the transactions of the business incurred in a particular period of time.

It is the primary recording of all the transactions related to the money only.

Computation of amount of expected uncollectibles:

According to the given information,

The amount of expected uncollectibles are:

[tex]1.5\% \text{of} \text{Accounts Receivable}- \text{Currect Balance Credit}[/tex]

[tex]= 1.5\% \times \$99,000- 600\\=\$885[/tex]

Therefore, the amount of expected uncollectibles are 885.

Refer, the image given below for the adjustment entry of the expected uncollectibles.

To learn more about the journal entry, refer to:

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Answer:

The dam should be constructed. The investment discounted payback is 25 years.  

Explanation:

We have to make a cash flow for this case with the given data.  See the document attached.  

We consider an Initial cost of 30 millions in period 0,  then we have every periods benefit of 2.800.000 and 100000 direct cost.  

With those,  is obtained net cash flow for each year (period),  if we consider the given rate of interest, can be calculated the discounted cash flow

To know when this project covers all the investment,  we have to consider the cumulative discounted cash flow.  We have to see in the cash flow chart when the cumulative discounted cash flow break the 0 (became higher than 0).  

In this case ,  that will be at period 25. So we have to wait 25 years to recover the initial cost. Considering that the dam usually has a lifetime higher than that time,  the project at this scenario,  should be done.  

The conventional B/C ratio for the given dam is more than 1 if the company's rate of return is 8% per year. The conventional B/C ratio is 1.12. Hence, the dam should be constructed.

Further explanation:

Conventional Benefit-Cost Ratio: The Benefit-Cost ratio refers to the ratio, which represents the relationship between the benefits arising out of the project and the cost incurred on the project. This ratio is used for making a financial analysis of various projects. It is helpful in the evaluation of both public and private projects. The project can be chosen when its benefits are exceeding its cost. Conventional B/C ratio is computed by dividing the net benefits arriving out of the project with the net cost of the project. The net value of benefits is computed by subtracting the value of losses from the benefits. The net cost includes the initial and operating cost after subtracting the salvage value.

Compute the conventional B/C ratio:

[tex]\text{Conventional B/C ratio}=\dfrac{\text{Present value of benefits}}{\text{Initial cost + Present value of operating and maintenance cost}}\\=\dfrac{\$35,000,000}{\$30,000,000+\$1,250,000}\\=\dfrac{\$35,000,000}{\$31,250,000}\\=1.12[/tex]

Therefore, the conventional B/C ratio for the given dam is more than 1 if the company's rate of return is 8% per year. The conventional B/C ratio is 1.12. Hence, the dam should be constructed.

Working note 1:

Compute the present value of benefits:

[tex]\text{Present value of benefits}=\dfrac{\text{Annual benefits}}{\text{Interest rate}}\\=\dfrac{\$2,800,000}{0.08}\\=\$35,000,000[/tex]

Hence, the present value of the benefits from dam is $35,000,000.

Working note 2:

Compute the present value of operating and maintenance cost:

[tex]\text{Present value of operating and maintenance cost}=\dfrac{\text{Annual operating cost}}{\text{Interest rate}}\\=\dfrac{\$1,000,000}{0.08}\\=\$1,250,000[/tex]

Hence, the present value of the annual operating cost of dam is $1,250,000.

Learn more

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2. Direct materials efficiency variance

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3. Cost of materials

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Answer details  

Grade: Senior School

Subject: Financial Accounting

Chapter: Time value of money

Keywords: Hemisphere Corp., Build-operator-transfer (BOT), contract to construct, hydroelectricity power generation station, developing nation, $30 million, expected to cost, benefits from flood control, agricultural development, tourism, dam be constructed, conventional B/C ratio, dam is assumed to be constructed, permanent asset, for the country, southern hemisphere, large dam, time value of money, present value of money, contract to construct, developing nation, cost ratio, expected to be $2.8 million, operate and maintain.

Answer: The answer is as follows:

Explanation:

The payoff matrix for this game is shown in the image.

The nash equilibrium in this game exist when both the firms do not enter into a new market. The nash equilibrium outcome is (0,0), at this choice both the firms didn't loose anything.

If firm A gets to decide first then it would choose not to enter into the new market, this will gives (0,50) & (0,0) outcome and if it chooses to enter then this will gives (-100,-100) & (50,0).

Answer:

The project's  IRR is 13.13%

Explanation:

The Internal Rate of Return is that return in which Net Present Value is zero .

The Net Present Value (NPV) is the value which show the difference between the initial investment and all years of cash flows of two projects. The cash flows should be discounted by applying discounted factor.

There are two scenarios for accepting or rejecting the project . If NPV is positive, than the project should be accepted otherwise not.

The Internal Rate of Return is calculated by using excel formula :

= IRR ( - year0 cash flows, all years cash flows).

The computation is shown in the attachment sheet.

Thus, the project's  IRR is 13.13%