Answer:
The lower than expected inflation would benefit the union and not benefit Friendly Airlines.
B. Variable inflation is associated with high transaction costs
Explanation:
Inflation is a persistent rise in the general price levels.
It was expected that inflation would increase by 3% and because of that expectation, wages were increased by 5%.
As it turns out, inflation only increased by 2%. If employers were aware that inflation would increase by only 2%, the increase in income would have been 4%.
As a result of this, the company ends up paying more to workers and workers and up earning more. So, the union benefits while the airline is at a disadvantage.
Because of the uncertainty of inflation, the union dedicates high amount of resources to monitor its movements. This shows that there is a high cost associated with the uncertainty of inflation.
I hope my answer helps you
Answer:
Reducing cost
Explanation:
Competitive advantage is defined as the edge a firm has over others that results in greater profits.
It can be as a result of technology, price, cost reduction, or quality.
In the given scenario where an organization implements an information system to optimize its supply chain by decreasing wastage, it is reducing its cost as a way of gaining competitive advantage over other companies.
Answer:
a. $352,200
b. $372,100
Explanation:
The cost of goods manufactured
<em>Consider only the manufacturing costs</em>
Cost of goods manufactured = $122,200 + $69,200 + $17,600 + $113,100 + $34,000 + $13,300 - $17,200
=$352,200
Cost of goods sold
<em>Add Cost of goods manufactured to the net of Finished inventory balance</em>
Cost of goods sold = $47,900 $68,800 + $352,200 - $47,900
= $372,100
Answer:
Depletion expense per ton = $3.68
Explanation:
Calculation of Total Cost
Total cost = Land + Estimated restoration costs
Total cost = $9,000,000 + 1,500,000
Total cost = $10,500,000
The depletion expenses of Crowder Company is as calculated below:
Depletion expense per ton = (Asset cost - Residual value) / No of unit depletion
Depletion expense per ton = $10,500,000 - $1,080,000 / 2,560,000 tons
Depletion expense per ton = $9,420,000 / 2,560,000 tons
Depletion expense per ton = $3.68
Answer:
$59.36
Explanation:
Given that
Dividend per share = $1.30
Growth rate for next 3 years is 15%
Now
Dividend for year 1 is
= Dividend per share × (1 + growth rate)
= $1.30 × (1 + 0.15)
= $1.495
For dividend for year 2 is
= Dividend for year 1 × (1 + growth rate)
= $1.495 × (1 + 0.15)
= $1.719
For dividend for year 3 is
= Dividend for year 2 × (1 + growth rate)
= $1.719 × ( 1 + 0.15)
= $1.977
And,
Subsequent Growth rate = g2 = 5%
Now
Dividend for year 4 is
= Dividend for year 2 × (1 + g2)
= $1.977 × (1 + 0.05)
= $2.076
Now
As per Gordon's Growth Rate Model
Price at year 3 is
= Dividend for year 4 ÷ (required rate of return - g2)
= $2.076 ÷ (0.08 - 0.05)
= $69.2
So, Value of the Stock is
= Dividend for year 1 ÷ (1 + required rate of return ) + Dividend for year 2 ÷ (1 + required rate of return)^2 + Dividend for year 3 ÷ (1 + required rate of return)^3 + Price at year 3 ÷ (1 + required rate of return)^3
= $1.495 ÷ (1+0.08) + $1.719 ÷ (1+0.08)^2 + $1.977 ÷ (1+0.08)^3 + $69.2 (1 + 0.08)^3
= $59.36
