Amazon is the dominant firm in the online shopping service industry, which has a total market demand given by Q = 100 – 2 P. Amazon has competition from a fringe of four small firms that produce where their individual marginal costs equal the market price. The fringe firms each have total costs given by TCi = 10 Qi + Q 2 i. If Amazon’s total costs are given by TCA = 10 + 10 QA, what price should Amazon establish for online shopping service?

Answers

Answer 1

The price that Amazon has to establish for their online shopping should be $20.

How to solve for the price

We have the price function as

P = 10 + 2Qi

Make Qi subject

= Qi = 0.5P - 5

4 firms with identical features

This would give us  

Qs = 4Qi

Qs = 4(0.5P -5)

Qs = 2p - 20

Q = 100 - 2p

Qa = Q - Qs

(100 - 2P) - (2P -20)

Take like terms

100 - 2p - 2p + 20

100 - 4p + 20

Qa = 120 - 4p

Make p subject

p = 120 - Qa / 4

p = 30 - 0.25Qa

TRa = p*Qa

= (30 - 0.25Qa)Qa

= 30Qa - 0.25Qa²

MRa

=  30 - 0.5Qa

TCA = 10 + 10QA

=  ΔTCA / ΔQA

= 10

30 - 0.5QA = 10

Take like terms

30 - 10 = 0.5Qa

divide through by 0.5

20/0.5 = Qa

40 = Qa

Output produced =  40.

We have P as

30 - 0.25QA

P = 30 - 0.25( *40)

= 20

Hence the price that Amazon has to establish for the online shopping should be $20

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Related Questions

What unique things would separate you from other applications applying for this money

Answers

The unique things that would separate the person from other people that are applying include

well-written essaygood educational backgroundvolunteering work that the person may have engaged in.

What are the required things that the person applying should have?Good educational backgroundVolunteering works would be an added advantageA well-written essayHave good characters and there should be no previous issues that show that the person had broken a law.

Therefore, the above statement would be beneficial for the person applying for the money.

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how to write memo cash flow statement problems and solutions

Answers

1. Start with the Opening Balance

For the first month, start with the total amount of cash your business has in its bank accounts.

2. Calculate the Cash Coming in (Sources of Cash)

Figure out all the money you expect to take in during the month. Only include actual money you will be receiving, not the sales you have made. For example, if you signed a contract for $100,000 over the next six months but are only receiving $15,000 of it this month, you would only count $15,000 for now because that would be the cash you have on hand.

Count everything coming in, including all collections of previous sales you made on credit, any transfers of your own personal money into the business, and any loans you might have taken during the period. Basically, you will include every single dollar coming into your business, whether from operations (sales of your goods or services), investments (sales of assets such as business equipment or land), or financing activities (equity you and/or shareholders are providing, or loans).
Add the figure you’ve arrived at in Step 2 to your opening balance from Step 1 to get your total cash balance for the period.

3. Determine the Cash Going Out (Uses of Cash)
Now, count up and enter all of the payments you expect to make for the month. Include items such as inventory, rent, salaries, taxes, loan payments, etc. Take into account everything you’ll spend money on this month.
If you have an annual bill for something like insurance, but have to pay for it all at one time or twice a year, you would count the payment as an expenditure during the month(s) in which you pay it. (You should still budget for it monthly, but you’ll have to come up with the cash during the month it’s actually due.)

4. Subtract Uses of Cash (Step 3) from your Cash Balance (sum of Steps 1 and 2)
The number you’re left with will be how much cash you have left at the end of the month. It will also be your Opening Balance at the start of the next month. If the number is negative, it means you will have a shortfall-not enough cash to cover your expenses.


2.How to Use a Cash Flow Statement

The biggest benefit to analyzing your cash flow is the information it provides about how to handle your expenses. While your business may be profitable in the long run, you may still have periods where you don’t have the money to pay your bills. This is especially true for companies that do a lot of invoicing.

Not all customers pay on time, and sometimes, they don’t pay at all. Because cash flow ONLY counts the money you’ve actually received, it can be more realistic than your profit and loss statement when it comes to figuring out the financials of your operation.

When you see the figures in black and white, you’ll realize the periods in which you either have to cut the amount of money you’re spending or increase the money coming in-whether it’s by booking more business, getting paid faster, or getting a loan or a line of credit.

List four sources you can use to locate job leads

Answers

Take a notepad, and write down all the work that you can do that will pay you — this will be your skillset.

Pick out keywords from them. Say “writing" or “coding" “Agile" or “mathematics”. Highlight them in your profile.

Make a list of all the jobs you can do with your above skillset. This you can use the help of job portals. Now, look out for companies that hire for such jobs, and start your search.

While a personalized resume for every job is necessary, your generalized profile on professional networking sites such as LinkedIn or job portal sites such as Naukri needs to be updated accordingly.

Most important — tell everyone you know that you are actively seeking a job, and what type of job you want, along with your skill set. Post it on social media, job sites, etc; you will never know who will help you. People in jobs get notifications about opportunities quite a lot, and if you made it known that you are looking for one, they will let you know.

Keep searching. All my jobs, I got it because I never stopped searching. I search for openings, find the contact details of the company, get in touch with them, and most importantly, I keep on bugging them till I get a satisfactory response from them. For my current job, I called HR every day until they scheduled an interview.

Keep upskilling yourself. Education is never over with your college. There are so many skills that you should equip yourself with, and there are so many tutorials available online and offline for them, like Coursera, Udemy, EdX, etc. Utilize them, sometimes they have free content as well.

1) Social Network (online like Monster.com)

2) Employment agencies

3) Job Fairs

4) Unemployment office

The prices of vehicles often increase during tax season, when tax refunds are distributed. Using supply and demand, explain why prices for vehicles increase in tax season.

Answers

Due to tax refunds being received the demand for cars goes up because people see an opportunity to buy a new car. The increase in demand then drives the price up. More demand = more value

The demand for vehicles increases as a result of tax refunds since more people regard them as a chance to purchase a new vehicle. The price rises as a result of the increased demand. More demand equals higher value.

Why You Should Buy a Car during Tax Season?

One of the most annoying aspects of being a working adult is taxes. It can be frustrating to compile all the required paperwork for submitting a tax return and can take hours out of your day. The worry of not knowing if you would owe money is another factor. The simple, lovely tax return, however, is one aspect of tax season that the majority of tax-filing adults look forward to.

Auto dealerships take a chance and purchase fresh inventory toward the end of the preceding year. This entails stocking typical dealerships' shelves with fresh merchandise in an effort to market the newest products.

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3 reason why loading and unloading a school bus is dangerous?

Answers

It is dangerous because the bus could brake the things could get stuck and the bus is to big

If a firm's revenues do not cover its average variable costs, then that firm has reached its _________________ . price taking point shutdown point marginal point opportunity margin

Answers

If a firm's revenues do not cover its average variable costs, then that firm has reached its shutdown point.

What is average variable costs?

The average variable cost refers to the variable cost per unit of goods or services produced by a firm.

Average variable cost is total variable cost divided by variable input. Variable input is the input that varies with the output. For example, labor is an example of a variable input.

Average variable cost equals:

1.Average total cost minus average fixed cost.

2. Price of the variable input times the quantity of the variable input.

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In computing the cost of merchandise sold,does each of the following items increase or decrease that cost? (a) Transportation costs,(b) beginning merchandise inventory, (c) purchase discounts, (d) Ending merchandise inventory​

Answers

Answer: option (d)

Explanation:

Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 123 - 3Q. The total cost function for each firm is TC(Q) = 3Q. The price charged in this market will be

Answers

The price changed in this market will be mathematically given as

P=93

What is the price change in this market?

P = 123 - 3Q

Generally, the equation for the statement is  mathematically given as

P = 123 - 3Q

Therefore

[tex]\frac{d \pi}{ d \Q1}[/tex]=123-6Q1-30Q2-3=0

Where

Q1=120-3Q2/6

Hence

Q1=120-3(120-3Q1/6)/6

Q1=13.333

In conclusion,

P = 123 - 3(2*13.333)

P=93

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Many individuals have been to a corner market in a city and noticed soggy lettuce, a moldy cucumber or other far from fresh produce being offered to that community in that specific area. Until now, many may not have known that this is what is referred to as a Food Desert. Why is it that we do not see similar grocery stores in these areas as we do in more rural communities? As a result, what does this do to the health and well-being of the thousands of people living in that community? Discuss Food Deserts in this Discussion Thread focusing on why they exist in the first place and how we can improve the situation for generations to come.

Answers

The cucumbers are see threw and the flight of the agent is in sight which means 7)
7(6)•5

Food deserts are areas where people have limited access to affordable and nutritious foods. The lack of access to healthy food in food deserts can have several negative health consequences. People who live in food deserts are more likely to be obese and have diabetes, and other chronic diseases. They are also more likely to have poor overall health.

They are a major issue affecting millions of people in the United States, particularly in low-income, inner-city, and rural areas.

There are several reasons why food deserts exist. One reason is that grocery stores are less likely to locate in low-income areas because they are seen as less profitable.

This is due to several factors, including the fact that people in these areas tend to have less disposable income, and they may also be more likely to use food stamps or other forms of government assistance to purchase food.

Another reason for food deserts is that zoning laws in some cities make it difficult for grocery stores to locate in certain areas. For example, some cities have zoning laws that restrict the size of stores that can be built in certain areas. This can make it difficult for grocery stores to build large enough stores to be profitable.

There are several things that can be done to improve the situation in food deserts. One is to provide financial incentives to grocery stores to locate in these areas.

Another is to change zoning laws to make it easier for grocery stores to build in these areas. Additionally, community gardens and farmers' markets can help to provide people in food deserts with access to fresh, healthy food.

It is important to address the issue of food deserts because they have a significant impact on the health of millions of people. By taking steps to improve access to healthy food in these areas, we can help to improve the health and well-being of generations to come.

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Suppose that actual inflation is 3 percent, the Fed's inflation target is 2 percentage points, and unemployment rate is 2 (which is 2 percent below the Fed's full-employment target of 4 percent). According to the Taylor Rule, what value will the Fed want to set for its targeted interest rate?


Instructions: Enter your answer rounded to 1 decimal place.

Answers

The employees rate would be 4% depending on how many days and how many hours they are working the Taylor rule would be 15

b) Upscale hotels in the United States recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. A survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the Internet and the telephone, to transact business. Assume a company’s budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. Graphically illustrate how a 20 percent decline in the price of business travel would impact this company’s budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. Suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. Is the company allocating resources efficiently? Explain

Answers

It is to be noted that the company is not allocating resources efficiently. See the attached image for the Graphically illustration required.

What is allocation of resources?

This is simply the ability to efficiently distribute resources across all aspects of production.

What is the proof that the company is misappropriating resources?

MRS is the gradient of the budget line is defined by the change in the Y axis divided by the change in the x axis.

In other words, MRS is the number of units of x that a customer is ready to give up in exchange for units of y.

Note that
the MRS fo the budget line is:

-dy/dx

= -10.6/6.25

= -1.6, that is media 1.6 units of media is given for every unit of business travel.

However, the corporation claims that the MRS is -1, which indicates that for every unit of business trip, they give away one unit of media. In other words, they are paying a price equal to the cost of business travel, resulting in a resource misappropriation.

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9. How is planning made any why is it important ? Explain .

Answers

Planning is made through a psychological process of rendered thoughts and ideas. Planning is important because for starters, it is a good way of gathering things in one’s mind and having mental organization. It is better to have things planned out than procrastinated because then, stress levels rise, efficiency is slower, and the accuracy of things that go on significantly depletes. Without planning, most of us would not survive because we would be so caught up in what is happening in the moment and how that affects us that we would not be able to process an idea or, as we’re referring to here, a plan. If you need any help, let me know and I will gladly assist you.

4. Hyperinflations are extremely rare in countries whose central banks are independent of the rest of the
government. Why might this be so?

Answers

Although hyperinflation is a periodic event for developed economies, it has happened many times throughout history in nations such as China, Germany, Russia, Hungary, and Argentina.

What rate is hyperinflation?

It refers to a condition where the prices of goods and services rise uncontrollably over a defined period of time. In general, the term is employed when the rate of inflation grows at more than 50% a month. Typically, hyperinflation is triggered by a very quick change in the money supply.

What is hyperinflation in history?

Hyperinflation is the immediate, massive, and unmanageable increase in prices. In Hungary just after World War II, prices folded every 15 hours. More recently, in Zimbabwe, prices creased every day. In the uneasy Yugoslavia of the 1990s, inflation hit 50% a year.

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Yes, Hyperinflation are unlikely to occur if the central bank stands independent of the government.

What is Hyperinflation ?

Yes, Hyperinflation are unlikely to occur if the central bank stands independent of the government.

In economics, hyperinflation exists as a very high and typically accelerating inflation. It fast erodes the real value of the local currency, as the expenses of all goods increase. This causes individuals to minimize their holdings in that currency as they usually switch to more durable foreign currencies.

Hyperinflation represents a general rise in prices in an economy as high, unsustainable and out-of-control.Hyperinflation naturally arise when governments utilize the printing of money to invest a lot of their expenditures. This stands highly improbable if the central bank that manages the money supply exists independent of the govt.Though hyperinflation exists a rare incidence for designed economies, it has been brought place several times all through history in countries like Germany, China, Russia, Argentina, & Hungary.

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what is the Industry structure of BDMS

Answers

Explanation:

Structure of Database Management System is also referred to as Overall System Structure or Database Architecture but it is different from the tier architecture of Database. The database system is divided into three components: Query Processor, Storage Manager, and Disk Storage

Discuss authority and responsibility in principles of management

Answers

Answer:

Authority of a manager is the right way of commanding subordinates, issuing orders, and getting the team to comply with them. Further, it is the right of the manager to make decisions and to act or refrain from acting based on his perception of the organization's objectives

Explanation:

Which of the following failed to stop the widespread fraud at Wells Fargo

Answers

The widespread fraud at Wells Fargo was not stopped by E. employees' ethics training.

What is employees' ethics training?

Ethics training enables employees to identify and deal with ethical problems.

Occasionally, employees make decisions involving choices or bringing outcomes that may be evaluated as good or bad, right or wrong.

The purpose of ethics training is to eliminate ethical misconduct.

Answer Options:

A. a whistle-blower policy

B. a statement by the CEO

C. a self-reporting policy

D. bonuses for stopping fraudulent behavior by other

E. employees' ethics training

Unfortunately, the widespread fraud at Wells Fargo was not stopped by E. employees' ethics training.

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When there is no room for growth within a company, an employee cannot __________. a. Be promoted to new positions horizontally b. Find other jobs from a new employer c. Be considered for salary increases d. Be promoted vertically to new positions

Answers

D. be promoted vertically to new positions

Answer:

D: Be promoted vertically to new positions

Explanation:

finleeoleary is right

As the attorney representing the 100 plaintiff employees, give the presiding judge three reasons why the company should be held liable for wrongful termination.
2) As the attorney representing the company, give the presiding judge three reasons why the company should not be held liable for wrongful termination

Answers

1)Three reason stated by an attorney on behalf of 100 plaintiff employee regarding why the company was held liable for the termination of  100 employees as follow :

1. The dismissal of the employee is avoidable and termination is not being made due to any faults by the employee.

2. No proper notice is served on employees or no opportunity of being heard is given to any employee.

3. Appropriate compensation has not been given to the employee and 30 days' salary will be given when the employee forgoes his right to go to court against the company.

2) Three reasons stated by an attorney of the Company in front of the presiding judge are as follows:

1. The company has restructured its business as a result of a restructuring plan. Hence future business does not require excess manpower.

2. Company has given the option to employees to opt for a 1-month salary. So that they can search for his job within one month.

3. Computer technology or automation by a computer system is eating out the job of mankind.

3)Considering the above case I would like to take the side of 100 employees as they have not been given sufficient time to search for their next job as well as the company has also not been given any other benefit.

The company might have taken such a restructuring plan to eliminate such 100 employees due to their age or any other factor.

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3.
(a)
(b)
(c)
What is Standard Cost?
Explain the two components of Standard Cost Variance.
State two advantages and two disadvantages of Standard Costing.

Answers

Answer:

The Standard course duration is the normal duration of the course for a full-time student.

advantages =Standard Costing is used to minimize costs, improve quality, and increase efficiency. It also enables managers to compare actual results with expected results

disadvantage =Standard costs are usually associated with a manufacturing company's costs of direct material, direct labor, and manufacturing overhead. The disadvantages include that implementing a standard costing system can be time consuming, labor intensive, and expensive.

Financial statement data for years ending December 31 for tango company follow

Answers

The inventory turnover for Tango company are: 4.8, 5.3.

Inventory turnover

Using this formula

Inventory Turnover = Cost Of Goods Sold / ((Beginning Inventory + Ending Inventory) / 2)

20Y7

Inventory Turnover =$3,864,000 /($770,000+$840,000)/2

Inventory Turnover=$3,864,000/$805,000

Inventory Turnover=4.8

20Y6

Inventory Turnover = $4,001,500 /($740,000+$770,000)/2

Inventory Turnover= $4,001,500 /$755,000

Inventory Turnover=5.3

Therefore the inventory turnover for Tango company are: 4.8, 5.3.

The complete question is:

Financial statement data for years ending December 31 for tango company follow

20Y7  20Y6

Cost of goods sold $3,864,000  $4,001,500

Inventories:

Beginning  of year 770,000  740,000

End of year  840,000  770,000

Determine the turnover for 20Y7 and 20Y6.

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Upscale hotels in the United States recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. A survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the Internet and the telephone, to transact business. Assume a company’s budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. Graphically illustrate how a 20 percent decline in the price of business travel would impact this company’s budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. Suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. Is the company allocating resources efficiently? Explain

Answers

The graphical representation is provided in the attached. It demonstrates how a 20% decrease in the cost of business travel would affect this company's budget if the cost of business travel was initially $1,000 per trip and the cost of electronic media was $500 per hour. This is an exercise related to Resource allocation.

What is resource allocation?

The practice of assigning and managing assets in a way that meets an organization's strategic planning goals is known as resource allocation.

From the information given, is the company allocating resources efficiently?

It would be incorrect to state that the company is allocating resources efficiently.

What is the explanation for the above?

When the cost of business travel is reduced by 20%, the new price of business travel is as follows:

1000 * 20%

= $200

New price =

1,000 - 200

= $800

Recall that the budget limit is $5,000:

Number of travel units assuming the budget is fully allotted for travel

= 5000/800

= 6.25 journeys

Number of travel units assuming the funding is entirely devoted to media

= 5000/500

= 10 media

We can establish a budget line B2 with media on the y-axis and travel on the x-axis based on the information provided.

When the price is reduced, the budget line changes to the right, reading the budget line's slope and steepness.

It should be remembered that the Marginal Rate of Substitution (MRS) is the budget line's gradient. This line is formed from a change in the y-axis and a change in the x-axis.

Thus:

Budget line = - dy/dx

= - 10/6.25

Budget Linen = -1.6

This indicates that for every unit of business trip, we must sacrifice 1.6 units of media.

Remember that the MRS is -1, which implies that for every unit of business trip, the corporation gives away one unit of media.

In other words, they are paying the same price as for business travel, resulting in an inefficient use of resources.

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Say, 3 customers enter a store. On the basis of past experience, the store manager estimates the probability that any one customer will make a purchase is 0.30. What is the probability that two of the next three customers will make a purchase?

Answers

The probability that two of the next three customers will make a purchaseis mathematically given as

P(1) =0.441

What is the probability that two of the next three customers will make a purchase?

Generally, the equation for Probablity is  mathematically given as

A)

P(1) = 3 C 1 (0.3)^1 (0.7)^2

P(1) =0.441

B)

n=1000

E (x) =np = 1000x0.3

E (x) =3.00

C)

Variance= mpq

Variance= 300 x0.7

Variance= 210

In conclusion,

P(1) =0.441

E (x) =3.00

Variance= 210

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At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000.
Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $416
account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount
previously written off.
Prepare Chan's journal entries for the transactions.

Answers

Answer:At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $416 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions. View transaction list 1 Record the estimated bad debts expense. 2 Wrote off P. Park's account as uncollectible. 3 Reinstated Park's previously written off account 4 Record the cash received on account. Credit Note :· journal entry has been entered Record entry Clear entry View general journal

Darling company estimates that total factory overhead costs will be $130,000 for the year, direct labor hours are estimated to be 26,000 a. For darling company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Per direct labor hour b. During may, darling company accumulated 890 hours of direct labor costs on job 200 and 530 hours on job 305. Determine the amount of factory overhead applied to jobs 200 and 305 in may. Prepare the journal entry to apply factory overhead to both jobs in may according to the predetermined overheed rate.

Answers

In order to calculate the Total factory overhead costs: -

We Know,

Predetermined Factory Overhead Rate =  Total Factory Overhead Costs / Direct Labor HoursFactory overheads applied to Job 305 =  Predetermined overhead rate × Direct labor hours

Statement showing Computations

Particulars                                                           Amount

    a)

Estimated total factory overhead costs         620,000.00 Direct labor hours                                              80,000.00   Predetermined factory overhead rate = 620,000 / 80,000                                             7.75

    b)

Factory overhead applied to Job 200           = 2500 × 7.75                                                      19,375.00 Factory overhead applied to Job 305 = 3000 × 7.75                                                      23,250.00  

JOURNAL ENTRY                             Dr.                      Cr.

Work in Process Dr.                                42,625.00  

To Factory Overhead                                                             42,625.00

Therefore, Total factory overhead cost is 42,625.00.

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Essay on What Unique Things Would Separate You From Other Applicants Applying For This Money?

Answers

Unique Things that would Separate you from Other Applicants when applying for a loan are:

Proof of income. Investment statements. Employment history.

How can an applicant be outstanding when applying for a loan?

When applying for a loan, there are different criteria that would be followed, by the financial institutions.

One of this is Proof of income, this will be checked to know how much you earn, and this will help to determine the amount of loan that can be granted to you.

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Which of the following is an important consideration in setting up the proper environment to complete tasks on time a limited distractions be free from distractions see a club the workspace or D working whenever time allows

Answers

An important consideration in setting up the proper environment is to be free from distractions. Option B. This is further explained below.

What is the environment?

Generally, the environment in which a human, animal, or plant lives or functions, either temporarily or permanently.

In conclusion, It is essential to remove any potential sources of distraction before beginning the process of creating the ideal atmosphere.

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2. Max z = 3X1 + 5X2+ 4X3 S.t.2X1 +3X2 ≤ 18 2X1 + X2 ≤ 10 3X1 + 2X+4X3 ≤ 15 X1, X2, X3 ≥ 0
Required: Solve the problem and interpret the result?

Answers

The interpretation of the result is that the maximum value of the objective function is 29

How to solve and interpret the result?

The objective function is given as:

Max z = 3x₁ + 5x₂+ 4x₃

The constraints are:

2x₁ +3x₂ ≤ 18

2x₁ + x₂ ≤ 10

3x₁ + 2x₂ +4x₃ ≤ 15

x₁, x₂, x₃ ≥ 0

Subtract the second inequality from the first

2x₁ - 2x₁ + 3x₂ - x₂ ≤ 18 - 10

Evaluate the like terms

2x₂ ≤ 8

Divide by 2

x₂ ≤ 4

Substitute 4 for x₂ in 2x₁ +3x₂ ≤ 18

2x₁ +3*4 ≤ 18

This gives

2x₁ + 12 ≤ 18

Evaluate the like terms

2x₁ ≤ 6

Divide by 2

x₁ ≤ 3

Substitute 4 for x₂ and 3 for x₁ in 3x₁ + 2x₂ +4x₃ ≤ 15

3*3 + 2*4 +4x₃ ≤ 15

This gives

17 +4x₃ ≤ 15

Evaluate the like terms

4x₃ ≤ -2

Divide by 4

x₃ ≤ -0.5

From the constraints, we have:

x₁, x₂, x₃ ≥ 0

So, we set all negative values to 0

This means that:

x₃ ≤ 0

Substitute these values in the objective function

Max z = 3 * 3 + 5 * 4 + 4 * 0

Evaluate

Max z = 29

Hence, the interpretation of the result is that the maximum value is 29

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3. Blackwell bonds have a face value of GHS 1,000 and are currently quoted at 98.4. The bonds have a 5 percent coupon rate. What is the current yield on these bonds?

Answers

The current yield on these bonds is 5.08%.

current Yield = annual Coupon / current Price

Annual coupon = 50

current price = 984

Current yield = 50/984 = 0.0508 i.e. 5.08% current yield.

The current yield of a bond is calculated by using dividing the annual coupon price by the bond's contemporary marketplace price.

A bond's yield to maturity (YTM) is the annualized interest charge that discounts the bond's coupon and faces price payoffs to the marketplace charge. that is, it is the hobby charge that the bondholder receives on the bond.

Current yield. a bond's annual coupon divided via its market price. current yield= annual coupon / bond price. yield to maturity (YTM) is the discount fee that equates a bond's fee with the prevailing value of its destiny cash flows.

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Ann Hopkins borrowed $60,000 for her child’s education. She must repay the loan at the end of 8 years in one payment with 512% interest. What is the maturity value Ann must repay?

Answers

The Maturity Value that Ann must pay is $89,461.

Assuming the rate of interest is compounded annually.

Given,

Principal value = $60,000 = P

Rate of interest = 5.12% = i

Number of years = 8 = T

Since maturity value = Amount

Now, using the formula for calculating the amount,

Amount = P × {(1+i)^T}

Now, substituting the given values in the above formula for amount we get,

Amount = $60,000 × {(1+0.0512)^8}

             = $60,000 × {(1.0512)^8}

             = $60,000 × 1.49101776418

             = $89,461.0658

             = $89,461 (Approximately)

Hence, The Maturity Value that Ann must pay is $89,461.

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What is the objective of (i) income statement and (ii) balance sheet?

Answers

(i) The income statement shows revenues and expenses over a financial accounting period.

(ii) Balance sheet is used to keep a track of the debits and credits.

One of the targets is to reveal internet gains and losses as a consequence of commercial enterprise operations and activities over a hard and fast date range. Maximum groups put together an earnings assertion on a month-to-month foundation.

Objectives of Income Statement

It provides a clear picture to the management of the performance of the company during the period and the effect on profitability and whether there is any scope for improvement.It is useful for the potential investor to analyze and decide whether he should invest in the company or not.It also helps the investors to analyze the creditworthiness of the company.It also shows the creditworthiness of a company and its ability to pay off its current obligation and is important for the creditors of the company as it serves as an indicator of the company’s financial standing.

Objectives of Balance sheet

To provide financial informationTo reveal the financial positionTo calculate ratiosTo show the picture of assets and liabilitiesTo show solvency positionInformation about debtors and creditors

Evaluate the value and position of all the assets and liabilities. Recognize the quantity of capital owed to the owner on the 12 months-give up. Use as a reference in case demand for a loan arises. The principle objective at the back of preparing a balance sheet is to provide invested people with a concept of the enterprise’s financial situation, as well as to reveal what the corporation possesses and owes.

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