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3 years ago

Other things the same, which bond would you expect to pay the lowest interest rate?

Business

1 answer:

Elis [28]3 years ago

3 0

Answer:

d) a bond issued by the U.S. government

Explanation:

A bond issued by the US government will be expected to pay the lowest interest rate because the default risk is almost 0 with the US government which means that it is a risk free investment for the lender. The investor will be willing to lend money to US government at the lowest interest rate out of all the options because it is the safest investment therefore the investor's required rate of return is the lowest for US government.

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Model, Inc., produces model automobiles made from metal. It operates two production departments, Molding and Painting, and has t

Vesnalui [34]

Answer:

Total Service Costs Molding :350031.22 Painting: 205081. 46

Explanation:

Given Data

Model, Inc.

Service

Administration, Accounting, Maintenance

Costs $269,000, $402,000, $199,000,

Building area 12,000 63,000 69,300

Employees 44 14 22

Equipment value

(in thousands) $ 177.00 $ 236.00 $ 17.50

Production

Molding Painting

Costs

Direct Materials $242,500 $211,000

Direct Labor $327,500 $219,000

Overheads $105,000 $82,500

Building area 441,000 56,700

Employees 66 88

Equipment value

(in thousands) $ 118.00 $ 59.00

First we find the activity rates for each cost using total cost driver except self usage

1) Maintenance $ 199,000

Equipment Value= 177 + 236+ 118+ 59= 590 ( in thousands) ( all but maintenance itself )

Maintenance per equipment = 199,000/590,000= 0.3373 per equipment

2) Accounting,= $402,000,

Employees=44 + 22 + 66 + 88 = 220

Accounting per Employee= $402,000,/220= 1827.27 per Employee

3) Administration= $269,000

Building area =63,000 +69,300 +441,000+ 56,700= 630,000

Administration per square footage= 269,000/ 630,000= 0.4269= 0.43 per square

Then we multiply the rates to find the service costs allocated.

Production

Molding Painting

Costs

Direct Materials $242,500 $211,000

Direct Labor $327,500 $219,000

Overheads $105,000 $82,500

Service Cost Allocated

Building area 0.43*441,000 0.43* 56,700

= 189630 =24381

Employees 66* 1827.27 88 *1827.27

= 120599.82 = 160799.76

Equipment value

(in thousands) $ 118.00* 0.3373 $ 59.00 *0.3373

= 39801.4 = 19900.7

Total Service Costs 350031.22 205081. 46

Total Costs 1025031.22 717581. 46

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3 years ago

Any advice on what to do when you are expecting a baby?

Yanka [14]

Be patient, read books, relax, be healthy mentally and physically.

7 0

3 years ago

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Over the course of a year, the Mexican peso has depreciated relative to the U.S. dollar. Who would MOST benefit from this occurr

Norma-Jean [14]

The correct answer of the given question above is option B. Over the course of a year, the Mexican peso has depreciated relative to the U.S. dollar and the one who would most benefit from this occurrence is the U.S consumers of Mexican goods. As the value of the U.S. dollar has increased relative to the peso, the buying power of the U.S. dollar has increased in Mexico. Hope this answer helps.

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3 years ago

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According to the chapter, ______ may be the single-greatest threat to successful strategy implementation.

rusak2 [61]

Answer:

The correct answer is C. Resistance to change .

Explanation:

Resistance to change means disagreement on the part of people to adopt a new strategy, policy, procedure or dynamics in their environment because they think that what they are doing so far is the best that can be done, and also that change brings a learning process that can be lengthy and can impair its functions until it is 100% appropriate.

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3 years ago

Economists define capital as money used to start a business.

LiRa [457]

Answer:

false is the correct answer.

Explanation:

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3 years ago

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