As the business cycle evolves, what changes do you see in the economy around you in terms of job availability, work conditions, and the way you spend and save your income?
Focusing on the last bit:
What kinds of goods or services do people tend to sacrifice or forego when money is tight? What are some of the first things people splurge on when circumstances improve? What do you continue to demand regardless of your financial circumstances? What does that tell us about our characteristics as US consumers?
In: Economics
Use the budget constraint PxX+PYY=M, thinking of good X as a food item and good Y as other goods. Present an analysis where an increase in price of the food item causes the consumer to by less food, demonstrating the “law of demand.” Then, present a second analysis where an increase in the price of the food item causes the consumer to buy more of the food item, which is the Giffen Good case. Finally, identify two food items, one which you think fits the first case and one which you think fits the second case.
In: Economics
Refer to the following mentioned data.
| (In millions) | |||||||||
| 2014 | 2013 | 2012 | |||||||
| Net revenues | $ | 8,268 | $ | 8,052 | $ | 7,175 | |||
| Cost of products sold | 5,370 | 5,140 | 4,365 | ||||||
| Gross margin | $ | 2,898 | $ | 2,912 | $ | 2,810 | |||
|
(a) Calculate the gross profit ratio for each of the past three years. (Round your answers to 1 decimal place.) (b) Assume that Campbell’s net sales for the first four months of 2015 totaled $2.7 billion. Calculate an estimated cost of goods sold and gross profit for the four months, using the gross profit ratio for 2014. |
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In: Accounting
In: Accounting
Cruz Inc. manufactures a popular premium toy. During its first
year, the company incurred these costs:
$427000 Cost to manufacture 7000
toys
$110000 Research and development costs
$35000 Cost to ship completed products to
retailers
Cruz sells 80% of its products for $183
each.
1. What will Cruz report as sales revenue for
Year1?
2. What will Cruz report as the cost of goods sold for
Year1?
3. What will Cruz report as net income for Year1?
4. What will Cruz report as inventory on the balance sheet as of
the end of Year1?
In: Accounting
Assume the following information for a company that produced
10,000 units and sold 8,000 units during its first year of
operations and produced 8,000 units and sold 10,000 units during
its second year of operations:
| Per Unit | Per Year | ||||||||
| Selling price | $ | 200 | |||||||
| Direct materials | $ | 82 | |||||||
| Direct labor | $ | 50 | |||||||
| Variable manufacturing overhead | $ | 10 | |||||||
| Sales commission | $ | 8 | |||||||
| Fixed manufacturing overhead | $ | 300,000 | |||||||
Using absorption costing, what is the cost of goods sold for the
second year of operations?
Multiple Choice
$1,780,000
$1,795,000
$1,406,000
$1,486,000
In: Accounting
Suppose the Fed increases interest rates in the country.
a. Which curve shifts first and why? Graph the Goods and Services market, including the shift.
b. What happened to the price level and RGDP in the short-run? What type of business cycle did this cause?
c. Over time, what will eventually happen to resource costs given the above scenario?
d. From your answer in part c, what subsequent shift will occur? Indicate this shift using your graph given above. What is the ultimate long-run effect on the Deflator and RGDP?
In: Economics
Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year:
| Work in process, January 1 | — | |
| Gallons started | 900,000 | |
| Gallons transferred out | 756,000 | |
| Direct materials cost | $900,000 | |
| Direct labor cost | $2,000,000 | |
| Overhead applied | $1,571,200 |
Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. The cost of goods transferred out for the year is:
a.$3,780,000
b.$3,571,200
c.$3,024,000
d.$4,471,200
In: Accounting
You’ve recently been hired as the production manager for a large consumer packaged goods company. In your first meeting with the sales manager, the manager said that production has always made more product than the sales force could move. He tells you that it would be much better if the sales force could create more demand than the company could supply. What would you tell the sales manager? Is it better to have more demand than supply?
(2-3 paragraphs please) (5-6 sentences each)
In: Operations Management
Presented Below is Information related to Matrix Company at December 31,2018 the end of its first year of operations:
Account Balance
| Sales Revenue | $775,000 |
| Cost of Goods Sold | $350,000 |
| Selling and administrative expenses | $125,000 |
| Gain on sale of plant assets | $75,000 |
| Unrealized gain on available-for sale debt investments | $25,000 |
| Interest expense | $15,000 |
| Loss on discontinued expense | $30,000 |
| Dividends declared and paid | $12,000 |
Question 1: What is income from continuing operations?
Question 2: What is the difference between continuing operations and net income?
In: Accounting