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3 years ago

Opinion: Based on marginal analysis that examines costs and benefits, why do some people choose NOT to eat organic food?

Business

2 answers:

Katyanochek1 [597]3 years ago

3 0

Non-organic food is cheaper, and often has brand names, which appeal to the consumer more than an organic brand does.

avanturin [10]3 years ago

3 0

Answer:

Inorganic food is cheap, and people don't usually like organic food because of the taste.

Explanation:

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A dollar in hand today is worth_______(less than/more than/equivalent) a dollar to be received in the future because if you had

Free_Kalibri [48]

Answer:

more than

earn interest

discount cash flow (DCF)

Explanation:

The concept of future value represents the amount that a lump sum or series of cash flows will achieve after a given period when compounded at an interest rate. This means that a dollar in hand today is worth more than a dollar to be received since it can be applied to earn interest.

The time value of money, which allows us to evaluate different investments, is also known as discount cash flow (DCF).

3 0

3 years ago

Benson Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Benson sells car ste

Alla [95]

Answer:

Potential loss to the whole corporation = $(60,000)

Explanation:

The Benson Division is operating at full capacity, hence it has no excess capacity .

This implies that it can not produce enough to meet both demand of internal and external buyers.

Hence, Benson Division cannot accommodate the demands of the Berna Division at a price lower than the external price, because it will result to a loss in contribution.

To maximize and optimize the group's profit in this scenario, the minimum transfer should be:

Minimum transfer price = External selling price - savings in selling cost resulting from in internal transfer

= $86-3= 83

Minimum transfer price = $83.

Effect on Group's profit

Any unit transferred at a priced lower than $83 would result in a unit loss to the Benson Division equal to $83 minus the transfer price.

Any unit transferred to Berna at a price lower that its current purchase cost would save the division an amount equal to the current purchase cost minus the forced transfer price.

The potential loss to the organization as a whole would be computed as the net effect of the following:

Lost contribution by Benson : The difference between the Minimum transfer price and the transfer imposed by the group company multiplied by the quantity transferred.

Savings made by the Berna Division : The difference between the forced transfer price and current purchase of Berna.

We can summarize the effect of the forced transfer price on the whole corporation as follows:

Lost contribution per unit = 83 - 35= 48 .

Savings made per unit = 80 - 35 = 45

Total lost contribution by Benson

(48 × 200,000) (960,000)

Savings made by Berna as result of the transfer

(45 × 200,000) 900,000

Potential loss to the group (60,000)

Potential loss to the whole corporation = $(60,000)

5 0

3 years ago

Yale Corporation issued to Zap Corporation $48,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year b

tino4ka555 [31]

Answer:

Yale Corporation

Journal Entries:

a. January 1, 2020:

Debit Cash $44,878

Debit Premium on bonds $3,122

Credit 8% Bonds Payable $48,000

To record issuance of the bonds.

b. June 30, 2020:

Debit Interest Expense $2,020

Credit Bond Discounts $100

Credit Cash $1,920

To record the first payment of interest.

Explanation:

a) Data and Calculations:

January 1, 2020:

Face value of bonds = $48,000

Price of bonds = $44,878

Discounts on bonds = $3,122

Coupon interest rate = 8%

Interest payment = semiannually on June 30 and December 31

Maturity period = 10 years

Effective interest rate = 9%

June 30, 2020:

Interest Expense $2,020 ($44,878 * 4.5%)

Cash payment 1,920 ($48,000 * 4%)

Discount amortization $100

Value of Bonds = $44,978 ($44,878 + $100)

December 31, 2020:

Interest Expense $2,024 ($44,978 * 4.5%)

Cash payment 1,920 ($48,000 * 4%)

Discount amortization $104

Value of Bonds = $45,082 ($44,978 + $104)

N (# of periods) 20

I/Y (Interest per year) 9

PMT (Periodic Payment) 1920

FV (Future Value) 48000

Results

PV = $44,878.10

Sum of all periodic payments $38,400.00

Total Interest $41,521.90

4 0

3 years ago

Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freez

N76 [4]

Answer:

Organic Ice Cream Company, Inc.

Depreciation Schedules:

a. Straight-line.

Year Cost Depreciation Accumulated Net book Value

Depreciation

Year 1 $14,000 $3,255 $3,255 $10,745

Year 2 $14,000 $3,255 $6,510 $7,490

Year 3 $14,000 $3,255 $9,765 $4,235

Year 4 $14,000 $3,255 $13,020 $980

b. Units-of-production.

Year Cost Depreciation Accumulated Net book Value

Depreciation

Year 1 $14,000 $5,208 $5,208 $8,792

Year 2 $14,000 $3,906 $9,114 $4,886

Year 3 $14,000 $2,604 $11,718 $2,282

Year 4 $14,000 $1,302 $13,020 $980

c. Double-declining-balance.

Year Cost Depreciation Accumulated Net book Value

Depreciation

Year 1 $14,000 $7,000 $7,000 $7,000

Year 2 $14,000 $3,500 $10,500 $3,500

Year 3 $14,000 $1,750 $12,250 $1,750

Year 4 $14,000 $770 $13,020 $980

Explanation:

a) Data and Calculations:

Cost of new ice cream production kit = $14,000

Residual value = $980

Depreciable value = $13,020

Estimated useful life = 4 years

Annual depreciation expense under straight-line method = $3,255 ($13,020/4)

Estimated productive life of the machine = 9,300 hours

Units-of-productive hours depreciation method per hour = $1.40 ($13,020/9,300)

Year 1 3,720 hours * $1.40 = $5,208

Year 2 2,790 hours * $1.40 = $3,906

Year 3 1,860 hours * $1.40 = $2,604

Year 4 930 hours* $1.40 = $1,302

Double-declining-balance method:

Depreciation rate = 100/4 * 2 = 50%

Year 1 = $14,000 * 50% = $7,000

Year 2 = $7,000 * 50% = $3,500

Year 3 = $3,500 * 50% = $1,750

Year 4 = $770 ($1,750 - $980)

7 0

3 years ago

Assume that one year ago, you bought 160 shares of a mutual fund for $20 per share, you received a $1.05 per-share capital gain

exis [7]

Answer:

35.25%

Explanation:

Assumption:

Net Assets Value refers to excess of an entity's value of assets over it's liabilities. Such value is always calculated based upon market value.

Capital gain distribution = Capital Gain per share × No of shares

= $1.05 × 160 shares = $168

Change in the value = (Closing market value - Opening market value) × No of shares

= $(26\ -\ 20)\ 160\ shares$ = $960

Total return earned = $168 + $ 960 = $1128

Initial value of investments = No of shares × opening market value per share

= 160 shares × $20 = $3200

Percentage of total return earned = $\frac{Total\ Return}{Initial\ value\ of\ Investment}$ = $\frac{1128}{3200}$ = 35.25%

3 0

3 years ago