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Oliga [24]
4 years ago
12

Patrick Corporation inadvertently produced 10,000 defective personal radios. The radios cost $8 each to produce. A salvage compa

ny will purchase the defective units as they are for $3 each. Patrick's production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at their regular market price of $12.50. Patrick should:a) Sell the radios for $3 per unit.
b) Correct the defects and sell the radios at the regular price.
c) Sell the radios as they are because repairing them will cause their total cost to exceed their selling price.
d) Sell 5,000 radios to the salvage company and repair the remainder.
e) Throw the radios away.

Business
1 answer:
Anuta_ua [19.1K]4 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Alex, brad, and carl are partners. the profit and rule sharing rule between them is 4:3:3 in the alphabetical order. the partner
goblinko [34]

If i understand your question properly, you want to determine how much each partner wiil have based on the sharing ratio.

Answer:

Alex- $40,000

Brad- $30,000

Carl- $30,000

Explanation:

For a net loss of $100,000 shared between partners in the ratio 4:3:3, the value of each partner's ratio can be calculated as seen below.

Step 1: Add the ratios

i.e; 4 + 3 + 3 = 10

Step 2: Calculate the value of each ratio in $100,000 using te formula

(ratio value ÷ total ratio) × $100,000

For Alex, we have

(4 ÷ 10) × $100,000

= 0.4 × $100,000

= $40,000

For Brad, we have

(3 ÷ 10) × $100,000

= 0.3 × $100,000

= $30,000

For Carl, we have

(3 ÷ 10) × $100,000

= 0.3 × $100,000

= $30,000

N.B: To confirm if the value of each ratio is correct, you can add up the values to see if it makes $100,000. If it doesn't, then the calculatio is wrong.

Adding the value of the ratios, we have $40,000 + $30,000 + $30,000 = $100,000.

i hope this helps

6 0
3 years ago
Juan was considering purchasing an interest in a tax-exempt bond fund for $100,000 when he discovered that the interest must be
myrzilka [38]

Answer:

The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .

Explanation:

Calculatation of the after-tax return on both bonds

1)The double-exempt bond does not pay state or federal income taxes.

After-tax return =

Before-tax return = 4.9%

2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.

Interest Income (100,000 * 5%) 5,000

Less: State taxes at 10% (5,000* 10%) (500)

Tax benefit from deduction of state taxes on federal return (500 * 35%) 175

After-tax Income 4,675

After-tax return = 4,675/100,000 = 4.675%

Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .

Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.

4 0
4 years ago
Suppose that an investor is considering three alternative strategies: conservative, neutral, or aggressive. If economic conditio
Elan Coil [88]

Answer:

The answer is: Following the expected value criterion the investor should choose indistinctively between the conservative or neutral alternatives.

Explanation:

The formula we use to calculate the expected return value of the different alternatives is:

            ERV = ∑ (expected return x probability of occurrence)

The conservative alternative has an expected return value of of 4.5%

ERV Conservative = (6% x 25%) + (4% x 75%) = 4.5%

The neutral alternative also has an expected return value of of 4.5%

ERV Neutral = (12% x 25%) + (4% x 75%) = 4.5%

The aggressive alternative has an expected return value of of -1%

ERV Aggressive = (20% x 25%) + (-8% x 75%) = -1%

3 0
3 years ago
Why do you think wants is less important?​
viktelen [127]

Answer:

Wants is less important because you don't need it/them to survive, you can live with only your needs, you should only get your wants only if you can afford it and still have enough money for needs.

Explanation:

I don't know if that made sense lol

3 0
3 years ago
What two things do you consider when evaluating the time value of money? (13 points)
IgorLugansk [536]
The time value of money is the idea that an amount of money in the present is more valuable and is worth more than the amount of money in the future. Two things you'd need to consider when making this type of deal is putting yourself at risk of not getting the money and putting your trust into the person who owns you the money. You would need to consider that putting yourself in that position is your decision, no one elses. Ask yourself, "Can I trust this person?" or, "What if I don't get as much money as they promised?"

I hope this helps!
7 0
4 years ago
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