An insurance company looks at the records for millions of homeowners and conclude the prob-ability of fire in a year is0. 01for each house and the loss should a fire occur is$10,000. Thusthe expected loss from fire for each house is$100. Assume the fires are independent. The com-pany plans to sell fire insurance for$120 (which is the expected loss plus$20). If a house ownerpurchases the insurance and his/her house catches fire, the company will cover for the loss. (a) If the company sells the insurance policy to 10 houses, what is the expected total profit ofthe company

The profitability at a production level of 5,000 backpacks per month is $15,000, at 10,000 backpacks per month is $20,000, and at 15,000 backpacks per month is $55,000.

To calculate the breakeven point, we need to find the production level at which the total revenue is equal to the total cost.

Let's denote the monthly production level by Q.

Total Revenue = Wholesale Price * Q = $10.00Q

Total Cost = Fixed Cost + Marginal Cost * Q = $50,000 + $3.00Q

At the breakeven point, Total Revenue = Total Cost. So we can set up the following equation

$10.00Q = $50,000 + $3.00Q

Solving for Q, we get

$7.00Q = $50,000

Q = 7,143 backpacks

Therefore, the breakeven point for Maverick Backpacks is 7,143 backpacks per month.

To calculate profitability at different production levels, we can use the following formula

Profit = Total Revenue - Total Cost

At a production level of 5,000 backpacks per month

Total Revenue = $10.00 * 5,000 = $50,000

Total Cost = $50,000 + $3.00 * 5,000 = $65,000

Profit = $50,000 - $65,000 = -$15,000

At a production level of 10,000 backpacks per month

Total Revenue = $10.00 * 10,000 = $100,000

Total Cost = $50,000 + $3.00 * 10,000 = $80,000

Profit = $100,000 - $80,000 = $20,000

At a production level of 15,000 backpacks per month

Total Revenue = $10.00 * 15,000 = $150,000

Total Cost = $50,000 + $3.00 * 15,000 = $95,000

Profit = $150,000 - $95,000 = $55,000

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The number of units that must be produced for a profit of $80 is 14 units. To find the break-even quantity, we need to determine the point at which the revenue equals the cost. In other words, we need to find the value of x where R(x) = C(x).

Given:

Cost function: C(x) = 18x + 32

Revenue function: R(x) = 26x

a. Break-even quantity:

To find the break-even quantity, we set R(x) equal to C(x) and solve for x:

26x = 18x + 32

Simplifying the equation, we get:

8x = 32

Dividing both sides by 8, we find:

x = 4

Therefore, the break-even quantity is 4 units.

b. Profit from 250 units:

To find the profit from 250 units, we need to subtract the cost from the revenue at that quantity:

Revenue at 250 units: R(250) = 26 * 250

Cost at 250 units: C(250) = 18 * 250 + 32

Profit = Revenue - Cost

Profit = R(250) - C(250)

Calculate the revenue and cost at 250 units, and then subtract the cost from the revenue to find the profit.

c. Number of units for a profit of $80:

To find the number of units that must be produced for a profit of $80, we set the profit equation equal to $80 and solve for x:

Profit = R(x) - C(x)

$80 = 26x - (18x + 32)

Simplifying the equation, we get:

80 = 8x - 32

Adding 32 to both sides, we find:

112 = 8x

Dividing both sides by 8, we get:

x = 14

Therefore, the number of units that must be produced for a profit of $80 is 14 units.

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The effect of a per house subsidy on the equilibrium price and quantity of the housing market is that it lowers the price of houses and increases the quantity of houses bought and sold. The incidence of the subsidy on buyers is that they pay less for a house than they would without the subsidy.

In the housing market, a subsidy is essentially a payment from the government to either the buyer or seller of a house. In this case, the subsidy is given to the buyer, which lowers the price of houses and increases the quantity of houses bought and sold. This is because the subsidy effectively reduces the cost of a house for the buyer, making it more affordable and increasing demand. As a result, the equilibrium price of houses decreases and the equilibrium quantity of houses increases.

The incidence of the subsidy on buyers is that they pay less for a house than they would without the subsidy. This is because the subsidy reduces the price of a house by the amount of the subsidy. So if a house originally cost $200,000 and the buyer receives an $8,000 subsidy, they will only have to pay $192,000 for the house. In conclusion, a per house subsidy lowers the equilibrium price of houses and increases the equilibrium quantity of houses bought and sold, so the incidence of the subsidy on buyers is that they pay less for a house than they would without the subsidy.

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The client should purchase this stock as the stock is undervalued.

The most common technique for valuing stocks is to use the company's price-to-earnings (P/E) ratio. By dividing the stock price by the company's most recent reported earnings per share, the P/E ratio is determined (EPS). A low P/E ratio indicates that a business is providing an appealing level of value to the buyer.

You can only determine a company's current value or market value from the price of its stock. As a result, the price reflects the market value of the stock or the price reached by a buyer and a seller. The price of the stock will increase if there are more buyers than sellers.

The value of stock = Expected Dividend /(required Rate of Return - Growth Rate)

= 2/(10%-5%)

= $40

Current stock Price = $38

Hence the answer is yes, because the stock is undervalued.

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Answer:

A market-oriented ice cream manufacturer focuses on meeting customer needs and preferences. This involves conducting market research to determine what flavors, packaging, pricing, and features are appealing to their target audience. Regularly seeking feedback from customers helps them make necessary changes. Being market-oriented helps manufacturers stay competitive, build brand loyalty, and ensure customer satisfaction.

Answer:

$1,070

Explanation:

As provided, the total revenue recorded in the previous quarter = $3,000

Total expenses as provided:

Rent expense = $1,000

Utilities = $300

Interest = $50

Depreciation = $200

Total = $1,550

Revenue after providing of all the expenses = $3,000 - $1,550 = $1,450

Less: Tax 40% of the amount $1,450 = $580

Net revenue = $870

Add: Depreciation = $870 + $200 = $1,070

Amount available for reinvestment = $1,070

Note: Depreciation is a non cash expense and shall be added to compute the amount available for reinvestment as that is not the cash spent.

Answer:

If Alpha specializes in growing apples and Beta specializes in growing oranges, they could both gain by specialization and trade.

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. A country should specialise in the production of goods for which it has a comparative advantage

Alpha

Opportunity cost in producing oranges = 9/18 = 0.5 apples

Opportunity cost in producing applies =  18/9 = 2 oranges

Beta

Opportunity cost in producing oranges = 4 / 16 = 0.25

Opportunity cost in producing applies = 16/4 = 4 oranges

Alpha has an opportunity cost in the production of apples while beta has a comparative advantage in the production of oranges

Alpha should specialise in the production of apples

Beta should specialise in the production of oranges

An example of actual notification of termination of an agency to third parties is when the principal sends a written notice to the customers of the agent stating that the agency has been terminated.

This written notice should include the effective date of termination and any instructions on how to proceed with future transactions. This type of notification is important to avoid confusion and to inform third parties that the agency is no longer authorized to act on behalf of the principal.

The principal may also send a notice to suppliers, vendors, and other third parties that have a business relationship with the agency. This type of notification helps to prevent the agent from continuing to act on behalf of the principal after the termination date. It is important for the principal to provide actual notification to third parties to protect themselves from liability and to ensure that their interests are protected.

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Answer:

Explanation:

1. Decedent: a person who has died

2. Living will: directs medical personnel to withhold or withdraw “heroic measures” or life-support.

3. Will: a document that states the decedents wishes for the distribution of his/her assets

4. Durable power of attorney: a document that gives legal rights to a designated person to handle your financial affairs and make and manage your health care decisions in the event that you can no longer do so.

5. License: formal permission from a constituted authority to do a specific thing.

6. Lease: a contract renting land, property to another for a specified period of time and payment

7. Beneficiaries: persons designated as the recipients of funds or other property under a will, trust, insurance policy, etc.

8. Instetacy: the state of having not made a will at death

9. Odometer: an instrument for measuring distances traveled by an automobile

10. Probate: the official proving of a will as authentic or valid in a court

Answer:

The answer is "Option D".

Explanation:

Using the formula for calculating present value:

\(= \frac{Future \ value}{(1+r)^n}\\\\\)

that's why "Option D" is correct.

Answer:

Simply take the sales price minus the unit cost, and divide that number by the unit cost. Then, multiply by 100 to determine the markup percentage. For example, if your product costs $50 to make and the selling price is $75, then the markup percentage would be 50%: ( $75 – $50) / $50 = . 50 x 100 = 50%.

Explanation:

For the last several months, an employee stays late to finish up work. When he does this, everyone else has gone home, so he is mostly on his own. This is a possible sian that he is: D. considering a new job offer.

Being the lone person in the office and staying late at work on a regular basis for several months can be a sign that an employee is looking for a new position.

They might be using the time after work to look for job openings or go to job interviews without making their job hunt obvious.

Therefore the correct option is D.

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Under accrual-basis accounting, option B would result in an expense being recorded in May.

The correct option is b. The company pays cash in June for salaries earned in May.

Accrual-basis accounting recognizes revenue and expenses when they are earned or incurred, regardless of when cash is received or paid. In option A, even though the company pays cash in April for supplies in May, the expense would be recorded in May when the supplies are actually used or consumed. This is because the expense is recognized when the supplies are received and consumed, not when the cash payment is made.

In option B, when the company pays cash in June for salaries earned in May, the expense would still be recorded in May. This is because the salaries were earned in May, and under accrual accounting, expenses are recognized when they are incurred, not when the cash is paid. Therefore, the company would record the expense in May, even though the cash payment is made in June.

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The three risk factors for starting a business are uncertain business conditions, low interest rates and low liquidity.

It is essential that the entrepreneur has a broader vision and determination to overcome the initial difficulties, since every business has inherent risks that can represent barriers to the success of the business.

Therefore, it is essential that there is an alignment of objectives to the structure of the business, in addition to dedication and a strategy focused on the market.

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It typically consequences in the lowest net income. The straight-line method depreciates an asset by means of an equal amount each accounting period.

The declining balance approach allocates a greater quantity of depreciation in the until now years of an asset's existence than in the later years.

Depreciation and Net Income

A depreciation cost reduces net earnings when the asset's price is allotted on the earnings statement. Depreciation is used to account for declines in the cost of a constant asset over time. In most instances, the constant asset is commonly property, plant, and equipment.

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We divide the manufacturing overhead cost by the direct materials cost to get the overhead cost as a percentage of direct materials. This tells us how much of the cost of direct materials will be added to goods as overhead. In this instance, the overhead expense represents 67.58% of the direct material expense.

1. To compute the predetermined overhead rate as a percent of direct labor, we need to divide the total factory overhead cost by the direct labor cost.

Predetermined overhead rate = Factory overhead cost / Direct labor cost

Predetermined overhead rate = $148,000 / $504,000

Predetermined overhead rate = 0.2936 or 29.36%

So, the predetermined overhead rate as a percent of direct labor is 29.36%.


The predetermined overhead rate is the rate used to apply factory overhead to products or jobs. It is calculated at the beginning of the period by dividing the estimated total factory overhead cost by the estimated activity level. In this case, we are given the estimated direct labor, direct materials, and factory overhead costs for the period.

To compute the predetermined overhead rate as a percent of direct labor, we divide the factory overhead cost by the direct labor cost. This gives us the percentage of direct labor cost that will be added to products as overhead.

2. To compute the overhead cost as a percent of direct materials, we need to divide the factory overhead cost by the direct materials cost.

Overhead cost as a percent of direct materials = Factory overhead cost / Direct materials cost

Overhead cost as a percent of direct materials = $148,000 / $219,000

Overhead cost as a percent of direct materials = 0.6758 or 67.58%

So, the overhead cost as a percent of direct materials is 67.58%.


The overhead cost as a percent of direct materials tells us the percentage of direct materials cost that will be added to products as overhead. This is useful for understanding the overall cost of production and determining the selling price of the product.

To compute the overhead cost as a percent of direct materials, we divide the factory overhead cost by the direct materials cost. This gives us the percentage of direct materials cost that will be added to products as overhead. In this case, the overhead cost is 67.58% of the direct materials cost.

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The term that describes the diminished costs on a per-unit-basis of making and marketing products that usually result when marketing organizations produce increased total outputs of products is economies of scale.

The term "economies of scale" describes the diminished costs on a per-unit-basis of making and marketing products that usually result when marketing organizations produce increased total outputs of products.

Economies of scale refer to the cost advantages that a business can achieve as it increases the scale of its operations. When a company produces a larger volume of products, it can spread its fixed costs, such as manufacturing equipment and overhead expenses, over a greater number of units. This results in lower average costs per unit.

By producing more products, a company can achieve economies of scale in various aspects of its operations. For example, purchasing raw materials in bulk may lead to lower costs per unit. Additionally, streamlined production processes, efficient distribution channels, and optimized marketing efforts can contribute to reduced costs.

Economies of scale can benefit companies in several ways. Lower per-unit costs allow businesses to increase their profit margins or offer competitive pricing in the market. It can also enable companies to invest in research and development, improve product quality, or expand their market reach.

In summary, economies of scale refer to the cost advantages that arise when a marketing organization produces increased total outputs of products, leading to lower costs per unit and potential benefits for the company.

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The first facility consideration is to determine the location of each distribution center in the network.

Here are some points that explain why determining the location is so important:

1. Proximity to customers: Distribution centers should be located as close as possible to the customer base to minimize transportation costs and reduce lead times.

2. Transportation infrastructure: The location of distribution centers should take into account the availability and quality of transportation infrastructure, such as highways, railways, and ports.

3. Labor force: The location of distribution centers should take into account the availability and quality of the local labor force, including the cost of labor and the skill level of workers.

4. Local regulations: Distribution centers must comply with local regulations regarding zoning, environmental impact, and labor laws, among other factors.

5. Real estate costs: The cost of real estate is a significant factor in the location decision. Distribution centers should be located in areas where the cost of land and facilities is affordable and competitive.

6. Market conditions: The location decision should also take into account the competitive landscape and market conditions in the region, such as the level of demand for the product and the presence of competitors.

Overall, determining the location of distribution centers in a network requires careful consideration of multiple factors to ensure that the distribution network is efficient, effective, and responsive to customer needs.

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Answer:

it is (C)

Explanation:

When the crime rate falls in the area around a factory, it is likely that wages at that factory will increase.

A decrease in the crime rate in the vicinity of a factory can have several positive effects on the overall economic environment, which can ultimately impact wages at the factory. Lower crime rates contribute to a safer and more stable community, creating a more attractive living and working environment for employees. This, in turn, can lead to increased job satisfaction, productivity, and employee retention.

When a factory operates in a safer area with reduced crime, it may experience a decrease in costs associated with security measures, such as surveillance systems or hiring security personnel. This cost savings can potentially be redirected towards employee wages or other benefits, resulting in an increase in wages for the workers.

Furthermore, a decline in crime rates can also attract new businesses or investments to the area, leading to economic growth and increased competition for skilled labor. In response to this increased demand for workers, factories may offer higher wages to attract and retain qualified employees. Overall, when the crime rate falls in the area around a factory, it is likely that wages at that factory will increase due to improved economic conditions, reduced security costs, and increased competition for labor.

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Answer:

The internal controls of the company are weak.

Explanation:

Rafael is borrowing cash from the money that he collects from customers on behalf of the company. He borrows the money and intends to pay back later to the company without informing anyone. This is weakness of internal control in the company system as there is no one who can check back whether Rafael has paid back money that he borrowed or not.

Answer : Monopolistic competition

Answer:

Monopolistic Competition

Explanation:

In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.

1. Importance of sources of capital and good network in starting a business

The importance of having sources of capital and a good network in starting a business is that it provides a solid foundation for the company. Capital is required to invest in assets and support daily operations, while networking provides opportunities for collaboration, expansion, and access to resources. Both elements are critical to the growth and success of a business.

Sourcing capital is essential in supporting the development of a business idea from the onset. It is often challenging to find willing investors or lenders, but having a business plan that is well-thought-out, achievable, and marketable will go a long way in attracting support. Investors and lenders want to see that the business idea has the potential to make profits, as well as the ability to pay back the investment or loan.

Networks are essential in providing opportunities for growth and collaboration. Networking involves building relationships with other businesses, entrepreneurs, potential investors, and other stakeholders. These relationships can lead to referrals, recommendations, and other resources that can help the business grow and expand. Networking also provides the opportunity to learn from others who have already been successful in the field.

2. Role of legal requirements in starting a business

Legal requirements are essential in starting a business. The main answer regarding the role of legal requirements in starting a business is that they provide a framework for the business to operate within. These requirements help to protect the business, its employees, customers, and the environment. Legal requirements are also essential in ensuring that the business is operating legally and ethically.

The role of legal requirements in starting a business is to provide guidelines that businesses must follow. These requirements include registering the business, obtaining licenses and permits, paying taxes, adhering to zoning regulations, and following labor laws. Legal requirements also include environmental regulations, health and safety standards, and product labeling requirements. By complying with these requirements, businesses are demonstrating their commitment to operating ethically and legally, which helps to build trust with customers, employees, and investors.

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a. The two largest software firms decide to merge; together they would control nearly 60% of the market: Answer: This would be investigated as a possible violation of antitrust law since merging could lead to domination of a significant share of the market.

b. Two of the largest firms in the car industry decide to reduce output in order to increase prices in the market: This is a violation of antitrust law. It is illegal for two or more firms to form an agreement to restrain trade, such as reducing output, which would lead to higher prices. c. Firms in the peanut industry decide to pool funds to start an "Eat More Peanuts" campaign: This is not a violation of antitrust law since it is not an anticompetitive practice and would not lead to any harm to competition.

d. Firms operating in the market for breakfast cereal use nonprice competition, such as increasing advertising, in order to gain increased market shares: This is not a violation of antitrust law as long as it is not an anticompetitive practice and would not lead to any harm to competition. e. A firm in the market for rubies purchases all the ruby mines in the world. It now controls the entire ruby market: This is a violation of antitrust law. It is illegal for one firm to have complete control over a market and can lead to the formation of monopolies, which would lead to anticompetitive practices Antitrust laws are laws that seek to promote competition in the marketplace by prohibiting anticompetitive practices such as monopolies, price-fixing, and mergers that lead to market dominance. The actions described in the question can be evaluated on whether they would be found illegal under antitrust laws in the United States. The first action involves a merger of two large software firms, which would control nearly 60% of the market. This would be investigated as a possible violation of antitrust law since merging could lead to domination of a significant share of the market, which would lead to anticompetitive practices such as higher prices and reduced innovation. The second action involves two of the largest firms in the car industry deciding to reduce output to increase prices in the market. This is a violation of antitrust law. It is illegal for two or more firms to form an agreement to restrain trade, such as reducing output, which would lead to higher prices. The third action involves firms in the peanut industry pooling funds to start an "Eat More Peanuts" campaign. This is not a violation of antitrust law since it is not an anticompetitive practice and would not lead to any harm to competition. The fourth action involves firms in the market for breakfast cereal using nonprice competition, such as increasing advertising, in order to gain increased market shares. This is not a violation of antitrust law as long as it is not an anticompetitive practice and would not lead to any harm to competition. The fifth action involves a firm in the market for rubies purchasing all the ruby mines in the world, which would lead to complete control over the entire ruby market. This is a violation of antitrust law. It is illegal for one firm to have complete control over a market and can lead to the formation of monopolies, which would lead to anticompetitive practices.

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The profit margin for Mouse Inc. in 2018 is approximately 14.29%.

To calculate the profit margin for Mouse Inc. in 2018, we use the formula: Profit Margin = (Net Income / Net Sales) * 100.

From the given information, the net income for 2018 is $500,000 and the net sales are $3,500,000.

Substituting these values into the formula, we get: Profit Margin = (500,000 / 3,500,000) * 100 = 0.1429 * 100 = 14.29%.

This means that for every dollar of net sales generated in 2018, Mouse Inc. had a profit of approximately 14.29 cents. The profit margin of 14.29% indicates the company's ability to control costs and generate profits from its sales.

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Answer: So so sorry but i don't know!

Explanation:Have a great day

On July 1, Costa Rica Adventures issues a $120,000 eight-month bond at 6%. Interest is paid on the due date. Interest expense in the Year End Adjustment entry on December 31st would be $3,600. [Interest expense calculation: (120,000)(6/12)(0.06) = $3,600]

Interest expense is the cost a company bears on borrowing money. It is a non-operating expense shown in the income statement. It represents interest paid on borrowings such as bonds, loans, convertible bonds, or lines of credit.

Types of interest deductions for personal deductions on Schedule A (Form 1040, Personal Deductions) : Eligible Mortgage Interest Rates (if you are the buyer) including Investment Interest (net investment income only).

This is classified as long-term debt on the liability side of the company's balance sheet.

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The purpose of the letter is to inform Ms. Tranquillo that warranty repairs or replacements are not available for damage caused by operator fault and to provide her with options for resolving the issue.

The letter is informing Ms. Haley Tranquillo that warranty repairs or replacements are not available for damage caused by operator fault, specifically due to prolonged exposure to liquid and heavy external abuse.

The letter emphasizes the importance of proper caution and care when handling smartphones and highlights that the protection plan and manufacturer's warranty only cover manufacturing defects, excluding neglect and abuse.

The options provided include purchasing a remanufactured model at a cost of $49 plus tax, buying a new device at full retail cost, or exploring upgrade options as the two-year contract is nearing completion. The letter concludes by emphasizing the company's commitment to customer service.

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Hazard mitigation plans are prepared and adopted by communities with the primary purpose of identifying, assessing, and reducing the long-term risk to life and property from hazard events.

Sorry if this doesn't specifically answer your question, but I hope it helps :)