Why is the MRS = to the price ration?

1. Ultimate Butter Popcorn issues 5%, 15-year bonds with a face amount of $58,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually.
At what price will the bonds issue? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round"Market interest rate" to 1 decimal place.)
Face Amount= Interest Payment= Market Interest Rate= Periods to maturity= issue price=

2. Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $68,000 for $60,200 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid annually on December 31.

Record the bond issue and first interest payment on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. On January 1, 2018, Frontier World issues $39.8 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.

If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.) Face amount= Interest payment= market interest rate= periods to maturity= issue price=   

4.  On January 1, 2018, Frontier World issues $39.8 million of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.

If the market rate is 9%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.) Interest payment= market interest rate= periods to maturity= issue price=   

The bonds will issue at: a. A discount b. A premium c. Face amount

Ice cream has always been your favorite food. You practically lived on it while writing a master’s thesis on sustainable farms. Now you’ve found a business opportunity to marry your two passions: Opening a specialty ice cream shop that aims to delight people’s taste buds while raising their awareness of socially responsible agriculture.

The shop will source milk from local dairies, fruit from community farms, and exotic mix-in ingredients like rare herbs and edible flowers. You had no trouble raising money from like-minded investors.

Although your financial advisor Paul advised you to find a low-rent space for the first couple of years, you splurged on a location in the heart of your city’s vibrant arts district. You believe that people visiting the area’s galleries and museums will buy your product to enhance their experience. At the same time, you are keenly aware that many nearby purveyors offer gelato, frozen Greek yogurt, and other substitutes. You learned enough in your marketing courses to know that you must set prices strategically in order to compete.

At least you and Paul agree on pricing objectives. To satisfy your investors in the short term, the business must attain sufficient sales volume to cover costs and demonstrate profitability. To grow in the long term, you need market share. But neither of you is sure whether the best way to achieve those objectives is penetration pricing or competitive pricing.

If you choose the first option, you’d set price lower than other neighborhood sellers. This would have the advantage of encouraging trial and boosting sales volume among price-sensitive consumers. You could also have the flexibility to charge more if demand escalates, or less if it lags. But if competitors decide to undercut your prices, a price war could ensue—risking your ability to cover costs and weakening the business overall.

If you choose competitive pricing, you’d match the prices of other ice cream sellers and focus marketing efforts on building preference for your unique product and philosophy—features that are readily apparent to buyers and hard to imitate. This approach could create brand loyalty and a stable market share, because competitors could not easily lure your customers away. But price would still be a key marketing-mix component even if you go this route; a price that’s too high might alienate some consumers, while a price that’s too low would undermine your profits.

What is the best way to achieve your pricing objectives?

Penetration pricing

OR

Competitive pricing

SuperiorSuperior

?Guard, which used a standard cost accounting? system, manufactured

220 comma 000220,000

boat fenders during the? year, using

1 comma 640 comma 000 feet1,640,000 feet

of extruded vinyl purchased at

$ 1.15$1.15

per foot. Production required

4 comma 7004,700

direct labor hours that cost

$ 16.00$16.00

per hour. The materials standard was

77

feet of vinyl per fender at a standard cost of

$ 1.30$1.30

per foot. The labor standard was

0.0270.027

direct labor hour per fender at a standard cost of

$ 14.50$14.50

per hour.

PrintDone

Requirement 1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor. ?(Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable? (F) or unfavorable? (U). Abbreviations? used: DM? = Direct? materials, DL? = Direct? labor.)

Begin with the variances for direct materials.? First, determine the formula for the direct materials price? variance, then compute the price variance for direct materials. ?(Assume that the quantity of materials purchased is equal to the quantity of materials? used.)

Determine the formula for the direct materials quantity? variance, then compute the quantity variance for direct materials.

?Next, compute the variances for direct labor.? First, determine the formula for the rate? variance, then compute the rate variance for direct labor.

Determine the formula for direct labor the efficiency? variance, then compute the efficiency variance for direct labor.

Requirement 2. Does the pattern of variances suggest that the? company's managers have been making? trade-offs? Explain.

The

?

favorable

unfavorable

direct materials price variance combined with the

?

favorable

unfavorable

direct materials quantity variance suggests that managers may have used

?

higher-quality

lower-quality

materials. The net effect is

?

unfavorable

favorable

.The

?

favorable

unfavorable

direct labor rate variance combined with the

?

favorable

unfavorable

direct labor efficiency variance suggests that managers may have used

?

higher-paid

lower-paid

workers who performed

moremore

efficiently. The net effect is

?

favorable

unfavorable

.

Choose from any list or enter any number in the input fields and then continue to the next question.

Refer to the information in the table that follows to answer the question that follows:

Calculate the marginal propensity to save (MPS)?

Select one:

a. 0.2

b. Cannot be determined from the information available

c. 0.8

d. 0.1

Refer to the information in the table that follows to answer the question that follows:

The economy is at the equilibrium level of output. If government spending increases by 250 (from 200 to 450), then calculate the new equilibrium level of output?

Select one:

a. 5400

b. 450

c. 3650

d. 5900

1. A company wants to purchase a trailer, which only has a useful life of 10 years. The maintenance costs during the first year will be $500 and is expected to increase at a rate of $100 per year, assuming maintenance costs occur at the end of the year. The firm wants to set up a maintenance account that earns 1.5% annual interest to pay for the maintenance cost, how much does the firm need to deposit in the account now? (4 pts)
2. You want to reach a goal of $6000 in five years, you plan on making five payments at the end of each year. If i = 1%, how much do you need to deposit at the end of each year? (3 pts)
3. Kevin found $800 stashed in a book for 30 years. How much money has he lost by not putting it in a bank account at two percent annual compound interest all these years? (3 pts)
4. A small fabricator of plastics needs to purchase an extrusion moulding machine for $150,000. The company will borrow money from a bank at an interest rate of 5% over five years and is to be repaid in equal instalments, what is the instalment? (3 pts)
5. If the same company expects its product sales to be slow during the first year, but to increase subsequently at an annual rate of 6%. The company therefore arranges with the bank to pay off the loan on a “geometric gradient,” which results in the lowest payment at the end of the first year and each subsequent payment being 6% over the previous one. Determine the five annual payments. (5pts)

You witness a middle-aged, obese male pedestrian collapse on an escalator in an airport. He is clutching his chest and slumps over on the person behind him. The bystander places him on the floor at the end of the down-moving escalator track. As a first responder certified in ACLS, which of the following is your first course of action?

A) Check the patient for head injury

B) Check the patient for spinal injury

C) Check for the pulse

D) start CPR

You start high-quality CPR at a rate of 100-120 compressions per minute. The AED arrives moments later. You open the man's shirt to find a copious amount of thick hair covering his chest and he is damp with sweat. The AED cannot get a good signal through the pads because of the hair, even though you have pressed them down very hard. What is your next action?

A) do not use the AED

B) raze the patient chest

C) rip the pads off the man's chest and apply new pads in the same location.

D) Apply the pads in a different area.

The pads are working properly and a shock is delivered. What is your first action now?

A) check for the pulse

B) try to wake up the patient

C ) resume high quality CPR

D) administers epinephrine

What is the recommended dosage of epinephrine during a cardiac arrest?

What does it mean check for H & T during a cardiac arrest ?

Decision-Making Across the Organization Kathy and James Mohr, local golf stars, opened the Chip-Shot Driving Range Company on March 1, 2017. They invested $25,000 cash and received common stock in exchange for their investment. A caddy shack was constructed for cash at a cost of $8,000, and $800 was spent on golf balls and golf clubs. The Mohrs leased five acres of land at a cost of $1,000 per month and paid the first month's rent. During the first month, advertising costs totaled $750, of which $150 was unpaid at March 31, and $400 was paid to members of the high-school golf team for retrieving golf balls. All revenues from customers were deposited in the company's bank account. On March 15, Kathy and James received a dividend of $1,000. A $100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18,900. Kathy and James thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6,100 to net income of $2,450. Instructions With the class divided into groups, answer the following.

(a) How could the Mohrs have concluded that the business operated at a loss of $6,100? Was this a valid basis on which to determine net income?

(b) How could the Mohrs have concluded that the business operated at a net income of $2,450? (Hint: Prepare a balance sheet at March 31.) Was this a valid basis on which to determine net income?

(c) Without preparing an income statement, determine the actual net income for March.

(d) What was the revenue recognized in March?

Bill has bought a new home in Canberra. He borrowed $600 000 at a rate of 3.5% p.a., which is to be repaid in annual instalments over a thirty year period. The first instalment is due on 19 March 2020.

Like Bill, on the situation above, Scott has bought a house in Canberra, borrowing the same amount, and on the the same terms. Scott’s bank, however, offers an ‘interest offset’ account facility with the loan. Like Bill, Scott’s first payment is on 19 March 2020. On the day Scott takes the loan of $600 000 out (19 March 2019), Malcolm gives Scott $100 000. Scott immediately puts the money into his interest offset account. This account also earns 3.5% p.a. (compound interest). Over the term of the loan Scott does not put any more money into the interest offset account. The interest offset account pays interest annually, and its first payment will be on 19 March 2020. a. [6 marks] Draw a cash flow diagram, from Scott’s perspective, that describes the actions of his interest offset account. Scott’s interest offset account pays its interest payments to Scott’s loan. b. [4 marks]What is the amount of Scott’s total loan repayment on 19 March 2020? c. [10 marks] Show that Scott can make the total repayments calculated in part b for only 25 years, and that in the 26th year Scott will only pay $2 047.95 (plus the interest payment from his interest offset account) to extinguish his loan.