Is the type of competition that occurs in a competitive market without identical producers.

Testbank Multiple Choice Question 81 At the beginning of 2020, Sunland Company issued 8% bonds with a face value of $5700000. Th

laila [671]

Answer:

$527,737

Explanation:

The Bond Payment or Coupon always includes the Interest Portion and the the Capital Potion. The question only requires the Interest Portion of the Bond.

The Bond Parameters can be set as :

PV = - $5,259,870

FV = $5,700,000

PMT = ($5,700,000 x 8%) ÷ 2 = $228,000

N = 5 x 2 = 10

YTM = 10 %

P/YR = 2

Constructing an amortization schedule for 2020 gives :

Date Capital Portion Interest Balance

June 30 $34,994 $262,994 $5,294,864

Dec 30 $36,743 $264,743 $5,331,607

Total $71,737 $527,737 $5,331,607

therefore,

The amount of interest expense to be reported for 2020 is $527,737

7 0

2 years ago

Cayuga Hardwoods produces handcrafted jewelry boxes. A standard-size box requires 8 board feet of hardwood in the finished produ

cupoosta [38]

Answer:

$44 per case.

Explanation:

If A standard-size box requires 8 board feet of hardwood in the finished product. In addition, 2 board feet of scrap lumber are normally left from the production of one box. Hardwood costs $4.00 per board foot, plus $1.50 in transportation charges per board foot.

Then, To calculate the standard cost of direct materials for the jewelry box, we multiply the direct materials standard price of $4.00 (plus the transportation costs of 1.50 per board foot) by the direct materials standard quantity of 8 feet (8 board feet of hardwood in the finished product) per unit.

The result is a standard direct materials cost of $44 per case.

8 0

3 years ago

One of the main implications of the four-drive theory is that: employers should give all employees the same employee benefits. e

Vitek1552 [10]

Answer: Employers should offer employees enough opportunity to keep each of their drives in balance.

Explanation:

The Four-Drive Theory is a way of improving Employee motivation through more ways than just financial incentives. It is believed that all four factors are very integral in the motivation of employees and so managers would do well to implement them to get the best out of their employees.

The Four drives are, Acquire and Achieve, Bond and Belong, Create and Challenge and Define and Defend.

A key recommendation by the proponents of this theory is that Managers should not give their employees too little or too much opportunity to follow each drive but rather give them enough opportunity that they keep each drive balanced with the others.

3 0

3 years ago

Your boss, Penny Dirks, has asked you to analyze the airline industry using Porter's Three Generic Strategies. Which of the foll

vodomira [7]

Answer:

The correct answer is A.

Explanation:

Low cost companies, such as Southwest, Horizon, Frontier and JetBlue, are already one of the first options when organizing a trip. Flying is easier and more accessible every day, partly thanks to the low prices that airlines offer us, but also more uncomfortable, so you may ask yourself: what tricks do airlines use to make flying so cheap now?

Point to point routes. Low-cost companies do not offer transshipment services (network), so they save the cost of moving luggage from one plane to another and do not have to worry about the costs of connections between their routes.
Staff costs. When operating point-to-point flights and only short and medium radius, low cost never pay hotels to their crews to spend the night outside the airport where they are destined. Pilots and cabin staff always return to their base. In addition, their salaries are usually lower than those of traditional airline personnel.
Small airports. Operating in small airports and far from the main urban centers allows these airlines to avoid traffic jams, thus saving fuel and time.
Homogeneous fleet. Low cost usually use modern fleets and similar models, allowing them significant savings in maintenance.
Reduced services. These low-cost airlines do not serve meals, cut seat space and eliminate seat allocation, which saves a lot of time, but also money.
Additional income. Most low-cost airlines promote a wide range of gifts and lotteries on board, which gives them significant extra income.
It pays for everything. The reservation of tickets, billing at a counter and the right to carry a suitcase in the hold of the plane is paid with low-cost airlines.
Less expenses at the airport. Many low cost even give up having customer service offices, replacing them with call centers that involve a high cost of calling.
Public incentives. Many public administrations grant great economic aid to these low costs to prevent them from stopping to fly to their airports.
Very high rotation. Companies basically care about two things: get the maximum number of flights and fill the planes to the maximum. A plane is only profitable when it is flying, so more flights, more profitability.

3 0

3 years ago

Which of the following is the best example of amortization?

weeeeeb [17]

Answer is 30 yr mortgage

3 0

3 years ago