Answer:
1. Date Account Titles and Explanation Debit Credit
1 Jan Petty cash $200
Cash $200
2. Date Account Titles and Explanation Debit Credit
8 Jan Postage Expenses $74
Merchandise inventory $29
Delivery expense $16
Miscellaneous expense $43
Cash $162
3. Date Account Titles and Explanation Debit Credit
8 Jan Petty cash $250
Cash $250
Calculate the IRR of a machine that is purchased for $5,500, sold at the end of year 4 for $2,500, and produces the following cash flows: o Year 1: $700. o Year 2: $800. o Year 3: $900. o Year 4:$1,000. Group of answer choices 2.21% -0.52% 3.72%
Answer:
2.21%
Explanation:
The internal rate of return is the rate of return on the project where the present value of future cash flows equals the initial investment outlay. It is known as the break-even discount rate since, at IRR, the net present value is zero.
The IRR can be determined using the excel IRR function as shown thus:
=IRR(values)
values are the cash flows from years 0-4
Find attached excel file for IRR computation
A corporation must obtain shareholder approval before the company a. hires or fires a significant number of employees. b. expands into foreign markets. c. sells off a major portion of its business to another company. d. opens additional offices.
Answer:
c. sells off a major portion of its business to another company.
Explanation:
The corporation that should obtain the approval of the shareholder prior when the business major portion is sell off to the another company as it is very crucial decision taken by the company. It cant be taken without the approval of the shareholder as they are the original investors of the company
So as per the given situation, the option c is correct
15 . A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The net income you would expect the company to earn if it produces and sells 15,000 units is:
Answer:
$21,500
Explanation:
Particulars Amount Per Unit 15000 Units
Sales 48,000.00 4.00 60,000
Less: Variable Cost 18,000.00 1.50 22,500
Contribution 30,000.00 2.50 37,500
Less: Fixed Cost 16,000.00 16,000
Net Income $14,000 $21,500
So, the net income you would expect the company to earn if it produces and sells 15,000 units is $21,500.
why is that 0.8 in fractional form is 8/10
Answer:
Decimal placement
Explanation:
It is 8/10 because, in the decimal 0.8 , the 8 is in the tenths place. If it was 0.08 the fraction would be 8/100 and so on and so forth.
please help me this question answer
Explain 2 benefits to Hamdi of being the sole owner of the company?
Answer:
freedom of choice
no dispute or conflict
no need to share profit
own boss
Explanation:
Donna bought $3360 in stock and held it for one year. She paid $51 per share in cash, received no dividends, and sold the shares for $56 per share one year later. Ignoring transaction costs, what was her return on investment?
Answer:
16800 increase
Explanation:
so she bought 171360 in stocks, and 56 dollar per would equal 188160 dollars back or a 16800 dollar gain of money
Clearing House Interbank Payment System (CHIPS) is an organization that provides secure communication for contracts, invoices, and other trade documents that normally accompany cash payments. false
Answer:
the spleen
Explanation:
a reward or benefit meant to encourage specific economic behavior is a
Answer:
incentive
Explanation:
Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 9% of the sales price. On October 15, a customer required a $100 part replacement, plus $86 labor under the warranty.
Required:
Provide the journal entry for (a) the estimated expense on September 30 and (b) the & October 15 warranty work.
Answer:
A. Dr Product warranty expense $13,050
Cr Product warranty payable $13,050
B. Dr Product warranty payable $186
Cr Supplies $100
Cr Wages payable $86
Explanation:
A. Preparation of the journal entry for the estimated expense on September 30
September 30
Dr Product warranty expense $13,050
Cr Product warranty payable $13,050
(145,000*9%)
(To record estimated expense)
B. Preparation of the journal entry for the October 15 warranty work.
October 15
Dr Product warranty payable $186
($100+$86)
Cr Supplies $100
Cr Wages payable $86
(To record warranty work)
Before you started applying for college, a job recruiter offered you a full-time cashier position at a department store, earning an after-tax salary of $21,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $32,000. You decide to go to college, probably because:______.
A. You value a year of college at $22,000.B. You value a year id college of $34,000.C. You value a year of college less than $34,000.D. You value a year of college at more than $56,000.
Answer:
Option D (You value..........$56,000) is the right response.
Explanation:
The overall expenditure of taking part throughout the school for the very first year would be the amount of such loss of university income as well as extra cash.Whenever you anticipate receiving stronger employment wages from university education, therefore during the 1st year that you estimate upwards of expenditure of $53,000 for higher learning.Other options aren't linked to the specific circumstance. Thus, the response seems to be the right one.
Statement of Cash Flows—Indirect Method
The following balances are available for Chrisman Company:
December 31
2017 2016
Cash $9,700 $12,100
Accounts receivable 24,300 18,200
Inventory 19,300 32,200
Prepaid rent 10,900 7,300
Land 90,900 90,900
Plant and equipment 485,000 363,800
Accumulated depreciation (78,800) (36,400)
Totals $561,300 $488,100
Accounts payable $14,600 $12,100
Income taxes payable 3,600 6,100
Short-term notes payable 42,400 30,300
Bonds payable 91,000 121,000
Common stock 242,500 181,900
Retained earnings 167,200 136,700
Totals $561,300 $488,100
Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $42,400. Net income was reported at $30,500.
Required:
Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash.
Answer and Explanation:
The preparation of the cash flow statement using the indirect method is as follows;
Cash flows from operating activities
Net Income $30,500.00
Add: Depreciation $42,400.00
Less: Decrease in income taxes payable ($2,500.00)
Less: Increase in AR ($6,100.00)
Add: Decrease in inventory $12,900.00
Less: Increase in prepaid rent ($3,600.00)
Add: Increase in AP $2,500.00
Add: Increase in short term notes payable $12,100.00
Net Cash flow from operating activities $88,200.00
Cash flow from Investing activities
Purchase of PPE ($121,200.00)
Net Cash flow from Investing activities ($121,200.00)
Cash flow from Financing activities
Redemption of Bonds ($30,000.00)
Issue of Stock $60,600.00
Net Cash flow from Financing activities $30,600.00
Increase or decrease in cash -$2,400
Add: Opening cash and cash equivalents $12,100.00
Closing cash and cash equivalents $9,700.00
As of December 31, 2019, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2019, there was $1,600 of materials on hand. During the year, the company purchased $354,000 of materials; however it paid for only $314,000. How much inventory was requisitioned for use on jobs during 2019? a. $354,400b. $344,400c. $343,600d. $353,600
Answer:
d. $353,600
Explanation:
The computation of the inventory requisitioned for use on jobs during 2019 is shown below;
= OPening inventory + purchase made - ending inventory
= $1,600 + $354,000 - $2,000
= $353,600
Hence, the inventory requisitioned for use on jobs during 2019 is $353,600
Therefore the option d is correct
You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for exactly five more years. Assuming a 10% annual interest rate, what is the value of this trust?
Answer:
PV= $620,921.32
Explanation:
Giving the following information:
Cash flow (Cf)= $100,000
Interest rate (i)= 7.25%
First, we need to calculate the value of the investment at the moment of the first payment (five years from now). To calculate the present value we need to use the following formula:
PV= Cf / i
PV= 100,000 / 0.1
PV= $1,000,000
Now, the value today:
PV= FV / (1 + i)^n
PV= 1,000,000 / (1.1^5)
PV= $620,921.32
The following are selected accounts and balances for Mergaronite Company and Hill, Inc., as of December 31, 2021. Several of Mergaronite's accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period.
Mergaranite Hill $
Revenues (586,000) (252,000)
Cost of goods sold 272,000 92,000
Depreciation expense 108,000 42,000
Investment income NA NA
Retained earnings, 1/1/21 (898,000) (600,000)
Dividends declared 120,000 42,000
Current assets 220,000 694,000
Land 308,000 100,000
Buildings (net) 508,000 152,000
Equipment (net) 152,000 246,000
Liabilities (386,000) (310,000)
Common stock (290,000) (38,000)
Additional paid-in capital $ (60,000) (914,000)
Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 7,200 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, Hill's land was undervalued by $21,200, its buildings were overvalued by $31,600, and equipment was undervalued by $58,200. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $106,000 was developed internally by Hill and was estimated to have a 20- year remaining useful life.
a. Determine the December 31, 2021, consolidated totals for the following accounts:
b. In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary?
c. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet?
Answer:
a-1. Total Revenues = $838,000
a-2. Total Amortization Expense = $5,300
a-3. Total Building = $691,600
a-4. Total Depreciation Expense = $164,800
a-5. Total Additional paid in capital = $60,000
a-6. Total Customer list or Patent = $79,500
a-7. Total Cost of Goods sold = $364,000
a-8. Total Common Stock = $290,000.
a-9. Total Equipment = 398,000
b, The parent company's method is irrelevant.
c. See part c of the attached excel file for the consolidation entries that would be used on a 2021 worksheet.
Explanation:
Note: This question is not complete as requirement a of the question is not complete. This is therefore provided before answering the question as follows:
a. Determine the December 31, 2021, consolidated totals for the following accounts:
Revenues
Amortization Expense
Building
Depreciation Expense
Additional paid in capital
Customer list
Cost of Goods sold
Common Stock
Equipment
The explanation of the answers is now provided as follows:
a. Determine the December 31, 2021, consolidated totals for the listed accounts.
Note: See part a of the attached excel file for the determination of the total.
b. In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary?
There are no reciprocal entries required because we are not dealing with the parent's company investment account. Earnings on equity and dividends are not to be adjusted. As a result, the parent company's method is irrelevant.
c. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet?
Note: See part c of the attached excel file for the consolidation entries that would be used on a 2021 worksheet.
Horizontal integration has four sources of value creation: reduction in competitive intensity, lower costs, increased differentiation, and access to new markets and distribution channels.
a. True
b. False
Answer:
a. True
Explanation:
Horizontal integration is the competitive strategy in which the business entities operated at the value chain. Here the value is created in four sources like competitive industry, lesser cost, increased differentiation, and access to the new market & distribution channels.
Hence, the given statement is true
recycling is primarily an example of an issue facing businesses today \
a. human resource
b. natural resource
c. ethical
d.social
Answer:
a. human resource is the answer
Here is some price information on Fincorp stock. Suppose first that Fincorp trades in a dealer market. Bid Asked 55.25 55.50 a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
Answer:
a. Your trade will be executed at the bid price of 55.25.
b. Your trade will be executed at the ask price of 55.50.
Explanation:
First note that:
The bid price is the highest price a buyer will pay for a security.
The ask price is the lowest price a seller will accept for a security.
Therefore, we have:
a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
Since you are the buyer, your trade will be executed at the bid price of 55.25. This is because the bid price is the highest price you as a buyer will pay for a security.
b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
Since you are the seller, your trade will be executed at the ask price of 55.50. This is beecausee the ask price is the lowest price uou as a seller will accept for a security.
ABC Corp. has a market capitalization of $300 million and a beta of 0.75. It has $75 million in outstanding debt and its debt beta is 0.20. The risk-free rate is 3% and the market risk-premium is 5%.
Required:
Calculate ABCâs unlevered cost of capital.
Answer:
6.20000%
Explanation:
The computation of the unlevered cost of capital is shown below;
Asset beta is
= (Debt × Debt beta + Equity × Equity beta) ÷ (Debt + Equity)
= (75 × 0.20 + 300 × 0.75) ÷ (75 + 300)
= 0.6400000
Now
Unlevered cost of capital is
= risk free rate + asset beta × market risk premium
= 3% + 0.6400000 × 5%
= 6.20000%
The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Zambia was $1,412 in 1960, and it actually declined to $1,309 by 2010. Zambia's average annual growth rate during this period was -0.15%, and it was the poorest economy in the table in the year 2010. The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies.
Economy Real Income per Person in 1960 (Dollars) Real Income per Person in 2010 (Dollars) Annual Growth Rate (Percent)
Austria 9,773 35,031 2.59
Venezuela 7,307 9,762 0.58
Botswana 468 9,515 6.21
Malaysia 4,624 11,863 4.06
Honduras 1,932 3,146 0.98
Zambia 1,412 1,309 -0.15
Indicate which economy satisfies each of the following statements.
a. This economy experiences the fastest rate of growth in real income per person from 1960 to 2010.
b. This economy had the highest level of real income per person in the year 2010.
Answer:
a. Botswana b. AustriaExplanation:
Botswana had the fastest growth in real income per person from 1960 to 2010 with an annual growth rate of 6.21%. This is most likely down to the discovery of diamonds in the country towards the end of the 20th century.
In 2010, Austria had the highest real income per person with an income of $35,031. This is most likely due to the fact that Austria has a heavy presence in the service industry and a low population of less than 10 million people.
Some of your senior employees have started changing important information in a new call script. Newer employees have noticed, and some have started doing the same. What would you do? Select all that apply.
A Allow the senior employees to go off script since they have more experience
B Practice using the new script during your weekday team meeting
C Discipline those who don't follow the script
D Give written warnings to the senior employees
E Require all of the newer employees attend additional training
Give written warnings to the senior employees
If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would a. increase by less than $1,000. b. decrease by an indeterminate amount. c. increase by more than $1,000. d. increase by exactly $1,000.
Answer: increase by less than $1000.
Explanation:
It should be noted that when the government levies a $1,000 tax per boat on sellers of boats, then this will lead to the supply curve shifting upward by $1000.
Due to the tax imposed, there'll be an increase in the price that a buyer will pay for the boat. In this case, the buyer and the seller will share the burden of the tax. Hence, there'll be na increase in the price for the boat by less than $1000.
Có tài liệu về tài sản cố định (TSCĐ) trong tháng 5/2021 của công ty B như sau:
Ngày 1/5 6/5 12/5 15/5 20/5 31/5
Số lượng TSCĐ (cái) 600 750 800 550 700 860
Tính số lượng TSCĐ bình quân của doanh nghiệp B trong tháng 5? Trong nửa đầu tháng 5 (từ ngày 1 đến ngày 15), trong nửa cuối tháng 5 (từ ngày 16 đến ngày 31), trong 15 ngày cuối tháng 5 (từ ngày 17 đến ngày 31)? Cho nhận xét sơ bộ về thực trạng sử dụng TSCĐ của công ty, từ đó đề xuất một số biện pháp sử dụng hiệu quả TSCĐ cho công ty?
Answer
Explanation:
Có tài liệu về tài sản cố định (TSCĐ) trong tháng 5/2021 của công ty B như sau:
Ngày 1/5 6/5 12/5 15/5 20/5 31/5
Số lượng TSCĐ (cái) 600 750 800 550 700 860
Tính số lượng TSCĐ bình quân của doanh nghiệp B trong tháng 5? Trong nửa đầu tháng 5 (từ ngày 1 đến ngày 15), trong nửa cuối tháng 5 (từ ngày 16 đến ngày 31), trong 15 ngày cuối tháng 5 (từ ngày 17 đến ngày 31)? Cho nhận xét sơ bộ về thực trạng sử dụng TSCĐ của công ty, từ đó đề xuất một số biện pháp sử dụng hiệu quả TSCĐ cho công ty?
Crane Company receives a $74,000, 5-year note bearing interest of 5% (paid annually) from a customer at a time when the discount rate is 6%.
Required:
What is the present value of the note received by Crane?
Answer: $70,882.98
Explanation:
Present value of note = Present value of interest payments + Present value of face value
Present value of interest payment:
First calculate the interest:
= 5% * 74,000
= $3,700
This amount is constant so is an annuity
Present value = 3,700 * Present value interest factor of annuity, 5 years, 6%
= 3,700 * 4.2124
= $15,585.88
Present value of face value :
= 74,000 / (1 + 6%)⁵
= $55,297.10
Present value of note:
= 15,585.88 + 55,297.10
= $70,882.98
Use the selected data from Pinecrest Company's financial statements to answer the following question. 2018 2017 Cash $ 22,000 $ 14,000 Accounts receivable 42,000 16,000 Merchandise inventory 22,000 83,000 Prepaid expenses 23,000 18,000 Total current assets $109,000 $131,000 Total current liabilities $ 65,000 $ 72,000 Net credit sales 221,000 326,000 Cost of goods sold 168,000 299,000 Net cash flow from operating activities 16,000 29,000 Refer to the data for Pinecrest Company. The current ratio for 2018 is
Answer:
1.68
Explanation:
Calculation to determine what The current ratio for 2018 is
Using this formula
Current ratio=Current assets/Current liabilities
Let plug in the formula
Current ratio=$109,000/$65,000
Current ratio= 1.68
Therefore The current ratio for 2018 is 1.68
Journalize the entries to record the following transactions for Zentric Corporation. Refer to the Chart of Accounts for exact wording of account titles. Jan. 22 Issued for cash 180,000 shares of no-par common stock at $4. Feb. 14 Issued at par value 44,000 shares of preferred 2% stock, $55 par for cash. Aug. 30 Issued for cash 9,000 shares of preferred 2% stock, $55 par at $60.
Answer:
Jan 22
Dr Cash $720,000
Cr Common stock $720,000
Feb 14
Dr Cash $2,420,000
Cr Preferred stock $2,420,000
30
Dr Cash $540,000
Cr Preferred stock $495,000
Cr Paid in capital in excess of par-Preferred stock $45,000
Explanation:
Preparation of the journal entries
Jan 22
Dr Cash $720,000
Cr Common stock $720,000
(180,000 shares * $4)
Feb 14
Dr Cash $2,420,000
Cr Preferred stock $2,420,000
(44,000 shares * $55)
30
Dr Cash $540,000
(9,000 shares * $60)
Cr Preferred stock $495,000
(9,000 shares * $55)
Cr Paid in capital in excess of par-Preferred stock $45,000
[9,000 shares *($60- $55) ]
Consider the location game with nine possible regions at which vendors may locate. Suppose that, rather than the players moving simultaneously and independently, they move sequentially. First, vendor 1 selects a location. Then, after observing the decision of vendor 1, vendor 2 chooses where to locate. Use backward induction to solve this game (and identify the subgame perfect Nash equilibrium). Remember that you need to specify the second vendor’s sequentially optimal strategy (his best move conditional on every different action of vendor 1).
Solution:
Given :
Location game with 9 possible [tex]\text{regions}[/tex] and other than the players who are moving simultaneously and also independently, but they move in a sequential manner.
Vendor 1 selects a location.
After observing decision of vendor 1, vendor 2 chooses where to locate.
Using backward induction the game is solved as below :
-- [tex]\text{a retrogressive acceptance harmony of the division}[/tex] will be a Nash equilibrium.
-- Presently [tex]\text{ if applicant 1}[/tex] (vendor 1) picks first then he will likewise get the chance to pick last as this another move amusement.
-- In the end of the game, vendor 1 will have claimed five regions and candidate 2 (vendor 2) will have claimed four regions.
-- So vendor 2 will keep this in mind and apply backward induction and choose the best regions early on the game.
-- Vendor 2 will keep in mind that vendor 1 will choose last and will ensure that his choices take up the best locations first.
--- This will be his ideal technique for each activity of vendor 1.
Hence this is the Nash equilibrium.
Computing net invoice amounts LO P1Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period.Merchandise(gross) Terms Paymenta. $7,800 2/10, n/60 b. 24.200 1/15, EOM c. 80,600 1/10, n/30 d. 17,000 3/15, n/45
Answer:
Computation of Net Invoice Amounts to be Paid:
Merchandise(gross) Terms Payment Discounts Net Invoice $
a. $7,800 2/10, n/60 $156 ($7,800*2%) $7,644
b. 24.200 1/15, EOM 242 ($24,200*1%) 23,958
c. 80,600 1/10, n/30 806 ($80,600*1%) 79,794
d. 17,000 3/15, n/45 510 ($17,000*3%) 16,490
Explanation:
a) Data:
Merchandise(gross) Terms Payment
a. $7,800 2/10, n/60
b. 24.200 1/15, EOM
c. 80,600 1/10, n/30
d. 17,000 3/15, n/45
Calculations:
Merchandise(gross) Terms Payment Discounts Net Invoice $
a. $7,800 2/10, n/60 $156 ($7,800*2%) $7,644
b. 24.200 1/15, EOM 242 ($24,200*1%) 23,958
c. 80,600 1/10, n/30 806 ($80,600*1%) 79,794
d. 17,000 3/15, n/45 510 ($17,000*3%) 16,490
The amount that should be paid for each of the four separate invoices should be
a. $7,644
b. $23,958
c. $79,794
d. $16,490
Calculation of the amount:Merchandise(gross) Terms Payment Discounts Net Invoice $
a. $7,800 2/10, n/60 $156 ($7,800*2%) $7,644
b. 24.200 1/15, EOM 242 ($24,200*1%) 23,958
c. 80,600 1/10, n/30 806 ($80,600*1%) 79,794
d. 17,000 3/15, n/45 510 ($17,000*3%) 16,490
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Medication is the most common treatment for seizure disorders.
Every three years, the Writers Guild of America renegotiates a Minimum Basic Agreement (MBA) with the Alliance of Motion Picture and Television Producers (AMPTP). The MBA includes agreements on basic compensation, salaries, royalties, etc., and ownership of original written material. In the fall of 2007, the Writers Guild and AMPTP were embroiled in an intense negotiation, mainly disagreeing on how writers are compensated for digital media work such as web series and online‑only content. The given payoff matrix contains the strategies and outcomes of each party in the negotiation. They could either compromise (C) or hold firm (HF) on their issues. If both parties hold firm, the Writers Guild will go on strike. The first number in each box is the Writers Guild's payoff and the second number is AMPTP's payoff. Assume that strategies are chosen independently and simultaneously.
AMPTP
Hold firm Compromise
Writers Guild Hold firm 0 , 0 10 , 3
Compromise 3 , 10 5 , 5
Required:
a. What are the Nash equilibria?
b. Writers Guild holds firm and AMPTP holds firm
c. Writers Guild compromises and AMPTP compromises
d. Writers Guild holds firm and AMPTP compromises
e. Writers Guild compromises and AMPTP holds firm
Answer:
Explanation:
A) Nash equilibria are: (Writers Guild Holds firm & AMPTP Compromises) & (AMPTP Holds firm & Writers Guild Compromises)
B) When AMPTP Holds firm, Writer's Guild's best strategy is Compromise since payoff is higher (3 > 0).
C) When AMPTP Compromises, Writer's Guild's best strategy is to Hold firm since payoff is higher (10 > 5).
D) When Writer's Guild Holds firm, AMPTP's best strategy is Compromise since payoff is higher (3 > 0).
E) When Writer's Guild Compromises, AMPTP's best strategy is Hold firm since payoff is higher (10 > 5).
This is the example of Chicken games theories.
Compromise is the greatest approach for Guild while AMPTP holds strong since the payout is bigger (3 > 0).
Guild's best tactic when AMPTP sacrifices is to hold tough because the payout is bigger (10 > 5).
Compromise is the greatest tactic for AMPTP when Guild Stands Firm since the payout is bigger (3 > 0).
When the Guild Compromises, the optimal approach for AMPTP is to Hold fast because the payout is bigger (10 > 5).
Writers Guild Maintains firm & AMPTP Concessions and AMPTP Maintains firm & Writers Guild Concessions are Nash equilibria.
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Forecast for July, using a 4-period weighted moving average. Assume the following weights: 0.4; 0.3; 0.2; and 0.1
Month Actual Demand
January 480
February 520
March 535
April 550
May 590
June 630
a. More than 0 but less than or equal to 500
b. More than 500 but less than or equal to 545
c. More than 545 but less than or equal to 600
d. More than 600 but less than or equal to 650
e. None of the choices are correct
Answer:
c. More than 545 but less than or equal to 600
Explanation:
The computation is shown below:
Forecast for July is
= 0.4 × June + 0.3 × May + 0.2 × April + 0.1 × Mar
= 0.4 × 630 + 0.3 × 590 + 0.2 × 550 + 0.1 × 535
= 592.5
So, it is more than 545 but lower than or equal to 600
Therefore the option c is correct