Banks that are members of the federal reserve have the benefit of?

Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DU

Ghella [55]

Answer:

Companywide income would increase by $6,000 if West Division is eliminated.

Explanation:

The amount by which the companywide income will increase or decrease if West Division is eliminated can be determined by comparing Revenue with avoidable cost.

Avoidable cost refers to the cost that will be eliminated or not incurred if a firm decides to change the course of a business.

In this question, avoidable cost is simply the cost or expenses that will be eliminated if West Division is eliminated.

Among all the expenses in the question, only Companywide facility-sustaining costs which is $78,000 cannot be eliminated if West Division is eliminated.

Therefore, avoidable cost can be calculated as follows:

Avoidable cost = Salaries for drivers + Fuel expenses + Insurance + Division-level facility-sustaining costs = 210,000 + 30,000 + 42,000 + 24,000 = $306,000

Since, Revenue = $300,000

Decision rule:

1. If revenue is greater than avoidable cost, we have a decrease in income. Therefore, the division should not be eliminated.

2. If revenue is less than avoidable cost, we have an increase in income. Therefore, the division should be eliminated.

Since the revenue of $300,000 is less than the avoidable cost of $306,000, it implies we have an increase in income based on the decision rule 2. The increase in income is calculated as follows:

Increase in income if West Division is eliminated = Avoidable cost – Revenue = $306,000 - $300,000 = $6,000

Therefore, companywide income would increase by $6,000 if West Division is eliminated

Since there would be an increase in income of $6,000, West Division should therefore be eliminated.

4 0

3 years ago

Currently, the U.S. Olympic Committee (USOC) pays Olympic athletes $25,000 for each gold medal, $15,000 for a silver medal, and

katrin2010 [14]

Answer:

Disability Discrimination

Explanation:

Disability Discrimination is a form of inequity or unfairness that individuals aer forced to witness, endure or suffer as a result of their association with a disabled person, a perceived disability or an actual disability. This discrimination arise in different situations and they are both physical and mental.

Disability discrimination is often witnessed in employment in issues including; recruitments, promotions, trainings, lay-ffs, leaves, benefits and payments.

In this particular question, disability discrimination is a kind of inequity obvious in the fact that Paralympic athletes are only paid 10 percent of what the Olympic athletes receive, despite the fact that they are engaged in similar physical activities. The fact that is the same U.S Olympic Committe (USOC) that pays both set of athletes makes it a form of employment inequity in form of disability discrimination.

7 0

3 years ago

thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

oksian1 [2.3K]

Answer:

E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

Explanation:

Options are "A. cultural, lifestyle, and demographic changes, B. the birth of new industries, new knowledge, and disruptive technologies, C. weather, climate change, and water shortages, D. interest rates, exchange rates, unemployment rates, inflation rates, and economic growth, E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently."

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

The strategy decision making about the industry and competitive conditions involve evaluating the prices, buyer sensitivity to the prices, serviceability & frequency.

7 0

3 years ago

Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.20 per share.

natka813 [3]

Answer:

Dividend yield for W = 5%

Dividend yield for X = 15%

Dividend yield for Y = 20%

Dividend yield for Z = 4.6%

Explanation:

For a constant growth stock $Price =\frac{D1}{r-g}$

If r is made subject of formula; r= $\frac{D1}{Price}+g$ = div yield + growth rate

For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%

For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%

For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%

For Stock Z, the price of the stock today is calculated as follows:

Price of the stock today = $\frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}$ .

where P2= $\frac{D3}{ke-g}$

Price of the stock today = $\frac{4.2(1.2)}{(1+0.15)^1}+\frac{4.2(1.2)^2}{(1+0.15)^2}+\frac{4.2(1.2)^2(1.1)}{(0.15-0.1)(1+0.15)^2}$ =109.57

Therefore dividend yield = $\frac[D1}{Price}$ = $\frac{4.2(1.2)}{109.57}=$ 4.6%

5 0

3 years ago

Pop Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The present value of

labwork [276]

Answer:

The increase in earnings is $136511.56

Explanation:

Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:

Profit on lease=present value of lease payments-costs

=$274149-$156000

=$118149

However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:

Interest=($274149-$44617)*8%

=$18362.56

Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.

Conclusively, the increase in earnings is $118149+$18362.56

That is $136511.56

5 0

2 years ago