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Lady_Fox [76]
3 years ago
13

Gerardo believes that every time he picks up a penny he is blessed with good fortune, since the last time he picked up a penny h

e had a lottery win, and the time before that he got a big bonus at work. Gerardo's perception is likely a product of a(n) ________.
A) self-serving bias
B) high-positive affect
C) emotional dimensions
D) affect intensity
E) illusory correlation
Business
2 answers:
NeTakaya3 years ago
5 0

Answer:

The correct answer is letter "E": illusory correlation.

Explanation:

Illusory correlations are thoughts that relate events to certain causes that actually do not have anything to do with each other. These are subjective beliefs people tend to create based on ideas widely spread in their surrounding environment or to attribute a reason for facts they do not know how to explain.

ipn [44]3 years ago
3 0

Answer:

E) illusory correlation

Explanation:

An illusory correlation happens when someone mistakenly believes that the occurrence of one event will result in the occurrence of other unrelated events.

Psychologically every single one of us tends to create a relationship between unrelated events, but some simply go one step ahead and deeply believe in a strict cause-effect relationship.

For example, a lot of people tend to create a relationship between very beautiful women and not being smart. While being pretty has nothing to do with being intelligent. I've met beautiful women that are extremely smart and very capable at work, while other not beautiful women are simply the opposite.

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Income statement data for Whirlpool Industries from the company’s 2016 financial statements follow. Use these data to reformulat
Blababa [14]

1. The computation of the adjustments to warranty expense, income tax expense, and net income and the reformulation of the income statement for 2014, 2015, and 2016 for Whirlpool Industries are as follows:

12 Months Ended ($ millions)   Dec. 31, 2016    Dec. 31, 2015    Dec. 31, 2014

Net sales                                        $23,928              $24,101            $23,082

Warranty expense                               366                     610                    372

Taxable income                            $23,562             $23,491             $22,710

Tax expenses (30%)                      $7,069               $7,047               $6,813

Net income                                  $16,493             $16,444            $15,897

2. The computation of the average warranty expense to net sales rate over the past three years is as follows:

12 Months Ended ($ millions)   Dec. 31, 2016    Dec. 31, 2015    Dec. 31, 2014

Net sales                                        $23,928              $24,101            $23,082

Warranty expense                                366                     610                    372

Warranty expenses to

 net sales rate                              1.5296%             2.5310%              1.6116%

Average warranty expenses to net sales rate = 1.89% (5.6722/3)

<h3>Data and Calculations:</h3>

12 Months Ended ($ millions)   Dec. 31, 2016    Dec. 31, 2015    Dec. 31, 2014

Net sales                                        $23,928              $24,101            $23,082

Warranty expense                                366                     610                    372

Warranty expenses to

 net sales rate                              1.5296%             2.5310%              1.6116%

Average warranty expenses to net sales rate = 1.89% (5.6722/3)

Thus, the average warranty expense to net sales rate over the past three years is <u>1.89%</u>.

Learn more about preparing income statements at brainly.com/question/24498019

3 0
2 years ago
Beacon Industries,Inc. thinking about having one of its products manufactured by a subcontractor.Currently , the cost of manufac
krek1111 [17]

Answer:

It is cheaper to buy the product.

Explanation:

Giving the following information:

Production:

Direct material $45,000

Direct labor 30,000

Factory overhead (30 % is variable ) 98,000

Buy:

Total cost= $100,000

<u>I will assume that none of the fixed overhead avoidable. Therefore, we will take into account only the variable overhead.</u>

Total variable production cost= 45,000 + 30,000 + (98,000*0.3)

Total variable production cost= $104,400

It is cheaper to buy the product.

3 0
3 years ago
Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income
lara [203]

Answer:

B. Cost of goods sold will be too low by $5,000.

Explanation:

Given that

Ending inventory overstated in the current year by $5,000

And, the net income is incorrectly reported $100,000

So, due to this error

The cost of goods sold is understated by $5,000

And, the net income is overstated by $5,000

Since the cost of goods sold is understated by $5,000 so it would be too low due to which the net income overstated by $5,000

4 0
3 years ago
Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu
Marina CMI [18]

Answer and Explanation:

1. The computation of warranty expenses is shown below:-

Warranty expense in 2018 = Warranty for a customer × Rate of sales

= $13,000 × 6%

= $13,000 × 0.06

= $780

2. The computation of estimated warranty liability is shown below:-

As we have calculated in part 1 so it is same that is

Estimated warranty liability in 2018 = $780

3. The computation of Warranty expenses in 2019 is shown below:-

In 2019 no warranty expense is there so the correct answer is $0

4. The computation of estimated warranty liability is shown below:-

Estimated warranty liability = Warranty expenses in 2018 - Repairs cost

= $780 - $121

= $659

5. The Journal entries is shown below:

a. Cash Dr, $13,000

            To Sales $13,000

(Being cash is recorded)

b. Cost of goods sold Dr, $6,500

        To Merchandise inventory $6,500

(Being cost of goods sold is recorded)

c. Warranty expense $650

         To Estimated warranty liability $650

(Being warranty expenses is recorded)

Estimated warranty liability Dr, $121

           To Repair parts inventory $121

(Being warranty liability is recorded)

4 0
3 years ago
Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.
Tanya [424]

Answer:

The correct answer is option a.

Explanation:

The monthly total revenue is $5,000.

The marginal cost of producing 19th, 20th and 21st unit is $200.

Laura will earn profit if the price is able to cover marginal cost.

Total revenue is the product of price and quantity.

Price of cake when Laura produces 19 units

= \frac{TR}{Q}

= \frac{5,000}{19}

= $263.15

Price of cake when Laura produces 20 units

= \frac{TR}{Q}

= \frac{5,000}{20}

= $250

Price of cake when Laura produces 21 units

= \frac{TR}{Q}

= \frac{5,000}{19}

= $238.09

So we see that the price is able to cover marginal cost till 21st units, so Laura should produce more than 20 units and go on producing till price becomes equal to marginal cost.

4 0
3 years ago
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