How can you determine an independent contractor?

Kasten, Inc budgeted 10,000 widgets for production during 2013. Kasten has capacity to produce 12,000 units. Fied factory overhe

Vlada [557]

Answer:

Check the following calculations

Explanation:

1. Received an order for 1,000 units

Cost per unit = $46

now

Incremental revenue per widget = $43

Incremental cost per widget: =( Direct material + Direct Labor + Vairable manufacturing overhead) =

$7 + ($15 × 2) + $4 = 41

Incremental profit per unit = 43 - 41 = $2

Total incremental profit = $2 × 1,000 = $2,000

Kasten can make an extra $2,000

2. Cost to buy per widget = $39

Cost to make per widget: = ( Direct material + Direct Labor + Vairable manufacturing overhead) =

$7 + ($15 × 2) + $4 = 41

Incremental savings per widget if purchased =41 - 39 = $2

Total incremental savings if purchased = $2 × 10,000 = $20,000

Thus we can say Kasten will save $20,000 if it buys instead of makes

5 0

3 years ago

A portfolio manager buys $1 million of U.S. Treasury bills maturing in 90 days at a price of $990,390 and discount rate of 3.8%.

ioda

Answer:

A. Outperforming the benchmark

Explanation:

Calculation to determine what the manager's portfolio

First step is to calculate the Treasury bill, bond-equivalent yield for U.S.

Using this formula

Treasury bill

=(Face value − Market value) / Market value × 365 / 90

Let plug in the formula

Treasury bill= ($1,000,000 − 990,390) / 990,390 × 365 / 90

Treasury bill=0.0097 × 0.04056

Treasury bill= 3.93%.

Second step is to calculate The total market value of the portfolio

Total market value portfolio=$990,390 + $100,000 + $200,000

Total market value portfolio= $1,290,390

Now let calculate the manager's portfolio

Manager's portfolio=3.93% ($990,390 / $1,290,390) + 4.34% ($100,000 / $1,290,390) + 4.84% ($200,000 / $1,290,390)

Manager's portfolio=3.93%(76.75%)+4.34%(7.75%)+4.84%(15.50%)

Manager's portfolio=0.0410*100

Manager's portfolio= 4.10%

Therefore Based on the above calculation the manager's portfolio is 4.10% OUTPERFORMING THE BENCHMARK because the manager's portfolio of 4.10% is higher than bond-equivalent yield benchmark portfolio of 4.0%.

7 0

3 years ago

Shona is buying a rug for her room. Store A has the rug for $45 with a 10% discount. Store B has the same rug for $46 and is off

telo118 [61]

Store A= 45 x .10 = 4.5 45 - 4.5 = 40.5 40.5 x .06 = 2.43 40.5 + 2.43 = 42.93 nowStore B = 46 - 10 = 36 36 x .06 = 2.16 36 + 2.16 = 38.16so 40-38.6 that will be 1.84so correct option is B hope it helps

7 0

3 years ago

Read 2 more answers

The bag contains 100 Snickers, 100 Milky Ways, and 100 Reese's, which Bill values at $2, $5, and $1 respectively. If Bill is the

Citrus2011 [14]

Answer:

>> I assumed that it was a fair share, when Bill was divider, and divided the sum by 2. However, using the same approach, you may calculate for any proportion you'd like

100 Snickers cost $2 → 1 Snickers costs $2/100 = $0.02

100 Milky Ways cost $5 → 1 Milky Way costs $5/100 = $0.05

100 Reese's cost $1 → 1 Reese's costs $1/100 = $0.01

The total amount of money = $2 + $5 + $1 = $8

Assuming that there is fair share, the sweets, that Bill gets, cost 8/2=$4.

So, let's set up an equation:

x - number of snickers

y - number of milky way

z - number of reese's

0.02x + 0.05y + 0.01z = 8.00 -- when x=100, y=100, z=100

Therefore, logically, if we half the amount of sweets of each category, we will get sweets for $4.

proof: x=50, y=50, z=50

0.02*50 + 0.05*50 + 0.01*50 = $4

7 0

3 years ago

An increase in the price of hot dogs from $1.50 to $2.10 per pound increased the average number of burgers demanded per week fro

timama [110]

Answer:

0.5

They are substitute goods.

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Percentage change in quantity demanded of burgers = (360 - 300) / 300 = 0.2 = 20%

Percentage change in price of hot dog = (2.10 - 1.50) / 1.5 = 0.4 = 40%

Cross price elasticity of demand = percentage change in quantity demanded/ percentage change in price

20 / 40 = 0.5

Elasticity of demand is less than 1, so demand is inelastic.

Also, the cross price elasticitiy is positive, so the goods are substitutes goods.

I hope my answer helps you

7 0

3 years ago