A recent college graduate from Clayton State University has the choice of buying a new car for $33,500 or investing the money for four years with an 11% expected annual rate of return. He has an investment of $41,000 in equities and bonds which yields 8% expected annual rate of return. If the graduate decides to purchase the car, the best estimate of the opportunity cost of that decision is

Answers

Answer 1

Answer:

$3,280

Explanation:

The annuity factor of 11% at four years will be;

annuity = (1 - 1 / (1 +r)^n ) / r

annuity = 3.102

P = Pmt * annuity

P = 41,000 * 3.102

P = 127,182

If college graduate decided to buy a car then the annual yield that he receives from the investment in bonds will be opportunity cost.

$33,500 * 8% = $3,280


Related Questions

Economic Stimulus Act of 2008

Explanation for the reason for Economic Stimulus Act of 2008. What are the main causes of the legislation. What occurred in the economy to prompt the government to pass or enact such legislation or act?

Answers

Answer:

The Economic Stimulus Act of 2008 was a United States federal law enacted on February 13, 2008, to provide economic relief amid the Great Recession. The act provided tax rebates to individuals and tax incentives for businesses. It also increased the limits on mortgages eligible for purchase by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac. The total cost of the act was projected at $152 billion for 2008.

The main causes of the legislation were:

The subprime mortgage crisis, which began in 2007, led to a decline in housing prices and a rise in foreclosures. This had a negative impact on the economy, as it led to a decrease in consumer spending and investment.The financial crisis of 2008, which began in September 2008, led to a collapse of the GSEs and a severe tightening of credit markets. This made it difficult for businesses to borrow money, which further slowed economic growth.

The government enacted the Economic Stimulus Act of 2008 in an attempt to:

Boost consumer spending and investment, which would help to create jobs and stimulate economic growth.Prevent the financial crisis from worsening, which would have had a devastating impact on the economy.

The act was controversial, with some economists arguing that it was not large enough to have a significant impact on the economy. However, the act did provide some relief to individuals and businesses, and it is generally credited with helping to prevent the Great Recession from becoming even worse.

When did the U.S. current account balance experience the largest surplus?

Answers

Answer: 1990

The OECD projects the US current account to be in deficit byUS$826 billion by 2006.1 In 1990 the US current account wasin surplus.

Explanation: signed, birb

1. Some businesspeople believe that elimination agents and wholesalers reduce their operating expenses. Discuss the opportunity costs associated with eliminating intermediaries.

Answers

1. While eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.

Eliminating intermediaries such as elimination agents and wholesalers reduce operating expenses, but it also has associated opportunity costs that businesses need to consider. One of the primary costs is the loss of the expertise and value-added services that intermediaries offer to businesses and customers. Eliminating intermediaries may result in businesses taking on additional responsibilities and expenses such as marketing, distribution, and logistics.

This may result in the need for additional staff and resources to ensure that products reach customers on time. Furthermore, eliminating intermediaries may also result in reduced customer access to products, as intermediaries are often responsible for finding new markets and customer segments. In this case, businesses may need to invest additional resources to market and promote their products to reach new customers.

In conclusion, while eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.

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what is your analysis on walmart financial health as of january 2021 compare to 2022

Answers

Absolutely horrible In my opinion
I think the analysis is good compared to the year of 2021

Outlines give you a chance to organize your thinking before determining word choice and sentence structure. Which of the following will help you create a more effective outline?
Check all that apply.

Strive for three to five major components
Move single subpoint to larger groups
Have one main topic that does not relate to the title
Combine subpoints whenever possible
Allow subpoints to overlap
Put the main idea in the title

Answers

Some actions that will help you create a more effective outline includes:

Avoid single items under major componentsDivide the main topic into major componentsMake each sub-point exclusive

What is the purpose of outline?

Basically, its give one the chance to organize their thinking before determining word choice and sentence structure.

When making an outline, we should define the main topic in the title, divide the main topic into major components or classifications, break the components into sub-points. Also, If there is a single item under a sub-point, combine it with the main time above or below it, we can make each component exclusive and use details, illustrations, and evidence to support each sub-point.

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(30 Marks)
a)Management of GENADE Travel and Tour has identified two groups of
individuals that would be interested in the vacation package consisting of room and
board and/or entertainment. The maximum amount that group 1 is willing to pay
for room and board is GHC 2500 and for entertainment is GHC 500. For
group 2,
the maximum amount they are willing to pay for room and board is GHC 1800 and
for entertainment is GHC 750. Although GENADE Travel and Tour is not able to
identify members of either group, it does know that each group values the
components of the package differently. Assuming there are an equal number of
members in each group and that the total membership in each group is a single
individual. If the marginal cost of providing the service. (room and board and/or
entertainment) to each group is GHC 1000.

Answers

The marginal cost of providing the service, For room and board GHC = 1800 And For entertainment GHC500.

If the management is not able to identify the group of customers, it should charge the minimum price customers are willing to pay as it does not lead to losing a market share and helps to compete in the market without identifying the group of customers.  But this strategy is suitable only if the management is able to recover its marginal cost.

The maximum price for room and board = GHC 2500

The maximum price for entertainment = GHC 750

The minimum price for room and board = GHC 1800

The minimum price for entertainment = GHC500

Marginal cost = GHC1000

The minimum price customers are willing to pay = is GHC(1800 + 500).

Thus, The marginal cost of providing the service

For room and board GHC = 1800

And For entertainment GHC500

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What is the difference between final goods and intermediate goods?

Answers

A) Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use.

B) Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods.

Final goods and intermediate goods are terms used in economics to distinguish between different types of goods in the production process. Here's a breakdown of the difference between the two:

1. Final Goods:

Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use. These goods are ready for consumption and do not undergo further processing or transformation before reaching the final consumer. Examples of final goods include food products, clothing, electronics, furniture, and vehicles. Final goods are the end result of the production process and are intended for final consumption or use.

2. Intermediate Goods:

Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods. They are not intended for final consumption but are instead used as raw materials, components, or capital goods in the production process. Intermediate goods undergo further processing or transformation before being included in the final goods. Examples of intermediate goods include raw materials like steel or wood, components like circuit boards or engines, and machinery or equipment used in production.

The key distinction between final goods and intermediate goods lies in their purpose and stage in the production process. Final goods are produced for the ultimate satisfaction of consumers' needs and are ready for consumption, while intermediate goods are used in the production of other goods and undergo further processing.

It's important to note that when calculating a country's Gross Domestic Product (GDP), only the value of final goods is considered. Intermediate goods are excluded to avoid double-counting, as their value is already included in the final goods they contribute to. By focusing on final goods, GDP provides a measure of the value of goods and services produced for final consumption in an economy.

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Outline the features and characteristics of the successful entrepreneur

Answers

Explanation:

Traits of an entrepreneurial mindset include:

Risk-taking

Vision

Discipline

Adaptability

Leadership

Creativity

Curiosity

The successful entrepreneur possesses various features and characteristics like creativity, passion, visionary, flexibility etc. that set them apart from others.

They are highly creative and innovative, which enables them to come up with unique ideas and solutions. They have a strong passion for their work, which allows them to overcome challenges and stay committed to achieving their goals. Additionally, they are willing to take risks and make bold decisions, which can lead to substantial rewards. Successful entrepreneurs possess a clear vision of their business and have the ability to think ahead and plan for the future.

They are also adaptable and flexible, able to pivot and change course when necessary to stay ahead of the competition. They possess resilience and are able to bounce back from setbacks and failures. Successful entrepreneurs have a strong work ethic and are willing to put in long hours and hard work to achieve success.

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How would implementing the cost-volume-profit analysis benefit a company? As a manager, which income statement format do you find more useful - the traditional financial accounting method or the contribution margin method? Why?

Answers

It provides insights into the relationship between sales volume, costs, and profitability, helping managers make informed decisions about pricing, production levels, and cost management.

CVP analysis allows managers to determine the breakeven point, the level of sales needed to cover all costs, and to assess the impact of changes in sales volume, costs, or prices on the company's profitability. This analysis can guide strategic planning, budgeting, and resource allocation.

As a manager, I find the contribution margin method of income statement format more useful than the traditional financial accounting method. The contribution margin method separates costs into fixed and variable components, allowing for a clearer understanding of how changes in sales volume affect profitability.

It highlights the contribution margin ratio, which indicates the proportion of each sales dollar available to cover fixed costs and contribute to profits.

This format enables managers to analyze cost behavior, identify cost-saving opportunities, and evaluate the financial impact of different sales scenarios. It provides a more focused view of the underlying profitability drivers and aids in decision-making related to pricing, product mix, and cost control.

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money management involves ?
1.) making a plan for how money will be used.
2.) creating a budget.
3.) sticking to a budget.
4.) all of these choices are correct.

Answers

Money management involves all of these choices are correct.

The money management refers to how you handle of your finances, from budgeting to investing, to saving and setting goals.

The money management is making a plan for how money will be used. It's an effective way to manage your money and get to know, where should you have invest it.

The money management involves creating a budget that will help tp predict your monthly plan without any stress.

The money management involves sticking to a budget is showing your money you are in charge.

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Which statement BEST explains this investment?
А.
The opportunity for profit motivates financial risks.
B.
The general likelihood of business success is very high.
C.
The corporate structure protects individuals from liability.
The financing for new enterprises often comes from institutions.

Answers

Answer:

I think that the answer is B, The The general likelihood of business success is very high.

Explanation:

I got it right on edgenuity

Which element of the marketing mix is affected when the Mandarin Oriental hotel in New York increases its weekend rates to $795 per night?

Answers

Price is the element of the marketing mix is affected when the Mandarin Oriental hotel in New York increases its weekend rates to $795 per night.

What is the primary goal of marketing?

In actuality, the core goal of marketing is to use messaging to draw customers to your brand. In order to turn customers into leads, your messaging should ideally be instructive and beneficial to your target demographic.

What is an illustration of marketing?

In a nutshell, it is an action made to draw attention to a business's offerings, which may include both tangible products for sale and services provided. Television commercials, billboards at the side of the road, and magazine adverts are typical instances of marketing at work.

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Match to correct letter option
1. LRAS
2. Market value
3. Disposable income
4. Real
5. Final
6. Excess reserves
A. Money leftover after taxes are paid
B. Quantity theory of money helps explain the shape of this.
C. Part of GDP s definition that captures the quality of the goods and services.
D. Caused by a fall in the money supply
E. Part of GDPâs definition that means you exclude used goods and services.
F. Sticky prices/wages justifies its shape
G. Part of GDP s definition that means you exclude intermediary goods and services.
H. Used to make loans.
I. Used to cover withdraws.
J. Interest rates are at their lower bound
K. Represents the economy s fundamentals, such as population, capital, and technology.
L. Adjusted for inflation.
M. Caused by a collapse of the stock market.

Answers

Answer:

A. Money left over after taxes are paid - Disposable income

B. Quantity theory of money helps explain the shape of this - Real

C. Part of GDP s definition that captures the quality of goods and services - Market Value

D. Caused by a fall in the money supply - Final

E. Part of GDP s definition that means you exclude used goods and services - Real

F.  Sticky prices/wages justifies its shape - Final

G. Part of GDP s definition that means you exclude intermediary goods and services - Market Value

H. Used to make loans - Excess reserves

I. Used to cover withdraws - Disposable income

J. Interest rates are at their lower bound - Real

K. Represents the economy s fundamentals, such as population, capital, and technology - LRAS

L. Adjusted for inflation Final

M. Caused by a collapse of the stock market - Market Value

Explanation:

Long run aggregate supply is adjusted based on the products produced in the country. The supply rate is also adjusted based on demand factor. GDP is the monetary value of all goods and services produced in the country during a certain period.

Why brand image matters summary

Answers

The brand image matters because it impacts what people think about you, even before they experience the business firsthand. It can set apart and boost the business bottom line.

It is important in developing strong brand equity and therefore competing successfully in the market. It is found that positive brand image could influence customer loyalty so that they would repurchase more product or service and recommend others to buy as much as 41.8%.

What is Brand Image

Brand image is a consumer's interpretation of your company and its products and services. A strong brand image makes a product stand out from near-identical competitors in the same market space.

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QUESTION 1 of 10: Which is the best job-seeking resource?
O a) Newspaper
Ob) Cold calls
c) The web
d) None of the above

Answers

The web is the best job-seeking resource. Therefore option C is correct.

What is WEB?

The World Wide Web, a portion of the Internet that consists of pages that can be accessed by a Web browser, is more commonly referred to as the "Web." The Web and the Internet are frequently used interchangeably because of this presumption.

The global server network that enables information sharing on the Web is actually referred to by the word "Internet." Therefore, even though a sizable amount of the Internet is made up of the Web, they are not the same thing.

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Computing payroll taxes LO P2, P3 BMX Company has one employee. FICA Social Security taxes are 6.20% of the first $117,000 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.60% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.
Gross Pay through August Gross Pay for September
a. $ 5,500 $2,000
b. 16,500 3,200
c. 100,000 20,500
Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for r under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)

Answers

Answer:

Medicare:

case a   2,000 x 1.45%  = 29

case b   3,200 x 1.45%  = 46.4

case c 20,500 x 1.45% =297.25

Social Security

case a   2,000 x 6.2%  = 124

case b   3,200 x 6.2%  = 198.4

case c 20,500 x 6.2% = 1,271

FUTA

case a $ 9

SUTA

case a $43.50

Explanation:

Medicare and Social Security ceilling for the year 2020 are 137,700

Thus, the three employees are under that and their September wages are fully taxable.

SUTA and FUTA ceilling are at 7000

so case b and c do not py any of these taxes

case a will only be taxed up to 7000

so 7,000 - 5,500 = 1,500 the remainder 700 dollar are tax-free from SUTA and FUTA

1,500 x 0.060%   =  9

1,500 x 0.0290% = 43.5

Holding other things constant, a decrease in the inflation rate in the US compared to the Canadian economy will cause the demand for the Canadian dollar to

Answers

Answer: To decrease, and the supply for Canadian dollar to increase.

Explanation: Inflation is an increase in the general price levels within an economy over a given period of time, when their is inflation in a given economy it causes the depreciation of the value of the currency of that economy and hence reduced demands for that currency and an increase in the supply for that currency which in this case is the Canadian dollar.

The following information is available for Birch Company at December 31: Money market fund balance $ 2,810 Certificate of deposit maturing June 30 of next year $ 15,200 Postdated checks from customers $ 1,525 Cash in bank account $ 22,631 NSF checks from customers returned by bank $ 670 Cash in petty cash fund $ 220 Inventory of postage stamps $ 20 U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $ 10,200 Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:

Answers

Answer:

$35,861

Explanation:

Calculation for the Cash and Cash Equivalents on December 31 using this formula

Cash and Cash Equivalents = Money Market Fund Balance + Cash in Bank account + Cash in Petty Cash Fund + U.S. Treasury Bill

Let plug in the formula

Cash and Cash Equivalents = $2,810 + $22,631 + $220 + 10,200

Cash and Cash Equivalents = $35,861

Therefore the Cash and Cash Equivalents on December 31 will be $35,861

The integration of the lowest level of the WBS with the organizational units responsible for performing the work is known as

Answers

Answer:

Organization breakdown structure.

Explanation:

This structure is used to show the people who would be working on a project.

Organization Breakdown Structure is in hierarchy and it explains the built organizational framework useful for project planning, resource management, time and expense tracking e.tc. it tells us the Employees that have been assigned to do particular projects, using knowledge, skills and the ability to do a task from start till finish.

Kevin owns a toy company. How should he ensure that his customers are receiving a high-quality product

A. Offer a discount on future purchases to customers
B. Repair products that have been sold to customers and are broken
C. Survey customers and ask for suggestions
D. Test a prototype

Answers

Option (d), Kevin owns a toy store. In this method, he may run a prototype test to ensure that his customers are receiving a high-quality product.

How do you know your customer service is top-notch?

If you pay attention to your customers, acknowledge their needs, thank them, and create a warm, welcoming environment, they will think highly of you. A satisfied consumer is more inclined to buy more from you again. Additionally, they could suggest others to your business.

Kevin has several alternatives to ensure that his customers receive high-quality products.

One option is to test a prototype first to ensure the finished product satisfies the appropriate quality standards.Additionally, he may improve the quality of the finished product by using customer feedback. He may conduct client surveys and ask for suggestions in order to understand more about their preferences and goals.Kevin may also offer a warranty or guarantee on his goods and repair or replace any defective things that he has sold to customers.By doing this, he could demonstrate his concern for customer satisfaction and enhance his company's reputation as a producer of high-quality items.

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1. Ryan can show Delia homes listed with XYZ Realty and other brokers in the market if:
(a) None of the homes are owned by Agent Ryan
(b) Ryan discloses to Broker Bradley that he will show homes listed by XYZ Realty
(c) Delia gives verbal consent to see homes listed by XYZ Realty
(d) Delia has given written Intermediary consent

Answers

Ryan can show Delia homes listed with XYZ Realty and other brokers in the market if:

Delia has given written Intermediary consent Delia gives verbal consent to see homes listed by XYZ Realty None of the homes are owned by Agent Ryan

When can homes be  shown in the market

Delia gives verbal consent to see homes listed by XYZ Realty: This condition highlights the significance of Delia's consent. If Delia explicitly gives verbal consent to Ryan, it signifies that she is comfortable with viewing homes listed by XYZ Realty. Delia's consent is crucial in allowing Ryan to proceed with showing homes from XYZ Realty.

(d) Delia has given written Intermediary consent: This condition specifically refers to written consent in the form of an intermediary agreement. In some cases, Delia may choose to engage Ryan as an intermediary, authorizing him to show homes listed by multiple brokers, including XYZ Realty.

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The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:
• Sales at $550,000, all for cash.
Merchandise inventory on November 30 was $300,000.
. The cash balance at December 1 was $25,000.
Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash,
.
Budgeted depreciation for December is $35,000.
. The planned merchandise inventory on December 31 is $270,000.
• The cost of goods sold is 75% of the sales price.
. All purchases are paid for in cash
.There is no interest expense or income tax expense.
The budgeted cash receipts for December are:

Answers

The budgeted cash receipts for December for the Bandeiras Corporation are $550,000.

What are the budgeted cash receipts?

The budgeted cash receipts represent the expected cash collections for a period.

The budgeted cash receipts are based on the forecasted sales, which appear in the sales budget.

The budgeted cash receipts do not include the beginning cash balance of $25,000.

When the budgeted cash receipts are added to the beginning cash balance, the total cash available for cash expenses and investments is derived.

Cash Budget Information:

Cash Sales = $550,000

Beginning cash balance = $25,000

Selling and Admin Expense $60,000

Cash Payments for purchases and others.

Thus, based on the given information, the budgeted cash receipts for December are only $550,000.

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Critics of the wealth gap might argue that

economic growth will likely decline over time.
the upper classes cannot help create new jobs.
the wealthy become unable to make investments.
buying power exceeds the supply from producers.

Answers

Answer:

economic growth will likely decline over time. Mark brainliest

Explanation: i did the test

The critics of the wealth gap may argue that an economic growth will likely decline over time.

Who are the critics of wealth gap?

The critics are people that does not fascinate the idea of wealth gap in an economy.

Hence, they are more likely to argue that an economic growth will likely decline over time because they do not fascinate the gap of wealth economically.

Therefore, the Option A is correct.

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4. If you were a technical designer, what other positions could you pursue?

Answers

Fashion designer, interior designer, and any other fabric designer

What are some ways colleges make revenue from their teams?

Answers

Answer:

merch, promotions, tickets to games, sponsorship for players etc

Explanation:

oe has a full-time construction job and also does odd jobs for people on the weekends but does not report this income to the government. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of gross domestic product (GDP)

Answers

Answer:

hshfjzndiandbfbxns dbd x

Explanation:

bdbdnsnbcndksmsndncngkf

A company has a fiscal year-end of December 31: (1) on October 1, $32,000 was paid for a one-year fire insurance policy; (2) on June 30 the company advanced its chief financial officer $30,000; principal and interest at 8% on the note are due in one year; and (3) equipment costing $80,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $16,000 per year. If the adjusting entries were not recorded, would net income be higher or lower and by how much

Answers

Answer:

The new income will be higher by $22,800.

Explanation:

The net income is the actual earnings of the business which is determined from the profit or loss statement by deducting all the expenses from the revenues earned.

The effect of the adjusting entries on the net income will be as follows:

1) Insurance expense will be of $8,000. It is charged for the period of three months only. This will decrease the net income.

2) Interest revenue will be of $1,200. It is charged for 6months. This will increase the net income.

3) The depreciation expense of $16,000. This will decrease the net income.

Therefore for the overall effect on the net income, if there will be no effect of the above adjustments then it will show net income by higher amount then the actual net income, by $22,800.

D. J. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?a. $829.21b. $850.47c. $872.28d. $894.65e. $917.01

Answers

Answer:

Bond Price​= $894.65

Explanation:

Giving the following information:

Face value= $1,000

Number of periods= 10

Cupon= 0.055*1,000= $55

YTM= 0.07

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 55*{[1 - (1.07^-10)] / 0.07 + [1,000/(1.07^10)

Bond Price​= 386.30 + 508.35

Bond Price​= $894.65

One of Shanice's team members is not happy with their performance review and refuses to accept the rating she gave. What should Shanice do?

Answers

Shanice should aim to resolve the issue through open communication, active listening, and a willingness to address the team member's concerns.

Listen and understand: Shanice should create an open and safe space for the team member to express their concerns. She should actively listen and seek to understand their perspective. This demonstrates empathy and shows that she values their input.

Provide clarity: Shanice should provide a clear explanation of the performance review process, including the criteria used to evaluate performance and the specific examples that led to the assigned rating. This can help address any misunderstandings or misconceptions.

Address concerns and offer feedback: Shanice should address the team member's specific concerns and provide constructive feedback. She can highlight areas for improvement and offer guidance on how to enhance performance. It's important for Shanice to focus on specific behaviors and outcomes rather than personal attacks or generalizations.

Seek input and involve the team member: Shanice can ask the team member for their suggestions on how to improve their performance or address their concerns. Involving them in the process can foster a sense of ownership and encourage collaboration.

Consider a reevaluation: If Shanice believes there may have been an oversight or if the team member presents compelling evidence, she can consider a reevaluation of the performance review. This may involve gathering additional feedback or revisiting the evaluation criteria.

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Assume that one unit is sold on April 27 for $300.

Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.

Answers

The determination of the gross profit for April and the ending Inventory on April 30 is as follows:

                                               Gross Profit              Ending Inventory

(a) First-in, First-out (FIFO)    $200 ($300 - $100)   $260 ($120 + $140)

(b) Last-in, First-out (LIFO)    $160 ($300 - $140)   $220 ($120 + $100)

(c) Weighted Average cost   $180 ($300 - $120)   $240 ($120 x 2)

What are the Cost Flow Methods?

The cost flow methods are FIFO, LIFO, Specific Identification, and Weighted-Average Cost methods of costing ending inventory and cost of goods sold based on assumptions.

Question Completion:

The following three identical units of Item P401C are purchased during April:

Cost information:

Item   Units  Cost

April 2 Purchase  1 $100

15 Purchase  1   120

20 Purchase  1   140

Total   3        $360

Average cost per unit = $120 ($360 ÷ 3)

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