jerome corporation has fixed costs of $500,000 and a contribution margin ratio of 40%. currently, sales are $3,000,000. what is jerome's margin of safety?

Boasting lower costs than rivals, but not necessarily the absolutely lowest cost.

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A bond with a $1,000 face value, five years to maturity and 6.3% annual coupon payments will trade at the greatest premium per $100 face value.

The dollar value of a financial asset when it is issued is referred to as its face value. The face value of a bond is the amount paid by the issuer at maturity, also known as "par value." A stock's face value, on the other hand, is the rate offered by the issuer once the stock would be first issued.

A bond may trade at a premium since such interest rate is greater than the market rate. The bond's price can also be influenced by the company's and the bond's credit ratings. Buyers are prepared to pay a higher price for a creditworthy bond issued by a financially viable issuer.

Here is the complete question-

If the yield to maturity of all of the following bonds is 6%, which will trade at the greatest premium per $100 face value?

A) a bond with a $10,000 face value, four years to maturity and 6.2% semiannual coupon payments

B) a bond with a $500 face value, seven years to maturity and 5.2% annual coupon payments

C) a bond with a $5,000 face value, seven years to maturity and 5.5% annual coupon

payments

D) a bond with a $1,000 face value, five years to maturity and 6.3% annual coupon payments

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The income effect, the substitution effect, and diminishing marginal utility together explain why demand curves are downward-sloping.

A consumer's increased enjoyment from owning one extra unit of a good or service is known as marginal utility. Economists utilize the idea of marginal utility to estimate how much of a given good buyers are willing to buy. When a product's price increases, consumers may switch to less expensive substitutes, which results in a decline in sales. The income effect and the substitution effect are the two factors that affect how much a consumer will desire of a commodity when its price changes. The Hicks substitution effect makes the new point of tangency and the old bundle different from one another.

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Bill buyer and sam seller have entered into a contract. bill has inserted a provision that the contract is contingent upon his selling his home for an acceptable price,  the status of the contract ---The contract may be void because the contingency is too vague.

A contingent contract might be grounded on the non-happening of an uncertain future event. In similar cases, the pledge is liable to do or not do commodity if the event doesn't be. still, the contract can not be executed by law unless passing of the event becomes insolvable.

Contingent Contracts in simple words means these are those contracts where a pledge is tentative and grounded on some passing and non-happening of some uncertain future event, the contract shall perform. The contracts of insurance, guarantee, and insurance are some exemplifications of contingent contracts.

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Assume that Atlantis and Zanadu both manufacture baseballs and helmets. Atlantis can create 1 helmets or 3 baseballs with the same resources, but Zanadu can produce 1 helmets or 6 baseballs.

Players use pine tar, a sticky material, to their bats to lessen bat sliding. When they adjust their batting gloves, the goop gets on them and is then transferred to their helmets. Players like Cabrera who continuously alter their helmets leave more debris on them. (a) While running the bases and at bat, all players are required to wear a protective helmet of some kind. (a) While at bat, every player in National Association Leagues is required to wear a double ear-flap helmet. (c) A single ear-flap helmet is required for all Major League players (or, at the player's discretion, a double ear-flap helmet).

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Describing, recommending, showing and offering a variety of food and beverage choices to a guest is known as suggestive selling.

What is suggestive selling?

A sales tactic known as "suggestive selling," "add-on selling," or "upselling" is when a worker asks a customer if they want to include an additional purchase or suggests a product that might work for them.The client's purchase amount and the company's revenue are both boosted by suggestive selling.Frequently, the additional sale is a complementary product and much smaller than the initial purchase.

The method is based on the idea that it requires little effort when compared to the potential for additional revenue.This is due to the fact that the difficult task of convincing the buyer to buy has already been accomplished.An additional sale that is significantly less than the initial purchase is much more likely to occur once the buyer has committed.

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The total amount of dollars received (after accounting for the premium paid) is equals to $6,500,000. A forward premium can be defined as a situation in which the forward or expected future price for a currency is greater than the spot price.

In economy, a forward premium can be defined as a frequently measured as the difference between the forward rate and the current spot rate. Forward premium is equivalent to a discount when a forward premium is negative.

Dollars received from exercising option = $12.5 million x $.55 = $6,875,000.

Premium paid for options = $12.5 million x $.03 = $375,000.

Amount of dollars received minus premium = $6,500,000.

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As he adjusts to this event, he will consume more peanut butter and less broccoli.

Consumption is an activity that aims to reduce or spend the use value of goods/services to meet needs or direct satisfaction. Those who carry out consumption activities are called consumers. It is these consumers who use goods/services either for their own use or for the benefit of people or other living things that are not for resale.

Consumption has several important functions and roles in economic activity, including the following.

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The statement is correct regarding merchandise available for sale during a period: Beginning inventory + net purchase = merchandise for sale; ending inventory + cost of goods sold = merchandise for sale.

Inventory refers to the stock of merchandise held by a business. It is a crucial part of running a business, as it can affect both your bottom line and your customer satisfaction. The right inventory management system can save businesses time and money and ensure that you have all the supplies and materials

An effective inventory management system is essential for businesses to maintain efficient sale . There are a number of factors to consider when designing an inventory management system, such as the type of goods being stored, the frequency of inventory turnover , and the desired level of accuracy.

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In the growth stage of the product lifecycle, most consumers who would buy the product are either repeat purchaser of the item or have tried and abandoned it, making it more challenging to acquire new customers.

Typically, consumers learn about a product during its debut stage in its  life cycle. The product has only recently been released, thus commercials are being created to attract new buyers. Customers are learning more about a new good or service and how it can help them during this phase. Product life-cycle management is the progression of business management methods during a product's life-cycle.

The product has gained market acceptance during the expansion growth stage, and clients are starting to really buy in. This indicates that both demand and profitability are increasing, ideally at a steady and quick rate. The market for the product is growing and competition is starting to emerge during the growth stage.

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As Jim has a large sum of money built up from consistent saving over time, an investment option would be the least likely for him to continue purchasing will be a mutual fund.

In business, an investment refers to an asset or item acquired with the goal of generating income or appreciation. Most time, when someone purchases a goods as an investment, the intention is not to consume its but rather to use it in the future to create wealth.

We have a short and long term investment, mutual funds belong to a short term investment, therefore, the investment option would be the least likely for him to continue purchasing will be a mutual fund.

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A title opinion is an insurance that protects the grantee's title against any potential flaws that may have existed at the time the title was transferred.

Title opinions are intended to positively guarantee two things with regard to commercial loans:

It is necessary to hire a lawyer to analyze the property's title and to conduct (and review) in-depth research on the title as well as any off-title issues that might affect a lender's security position. The attorney will provide a "title opinion" after reviewing the document, supposing no serious flaws were discovered, which will affirm the guarantees mentioned above.

Unfortunately, title opinions are not infallible, which means that mistakes could occur. When a loan defaults after closing and an issue with the owner's title or the lender's mortgage occurs when the lender tries to enforce its security through the mortgage, the lender may turn to the attorney and ask that the issue be resolved. However, unless the issue can be resolved quickly, the lender and the lawyer may find themselves in a contentious situation. If this happens, the lender may need to file a lawsuit against their (now-former) lawyer in order to demonstrate negligence and recover any losses brought on by the error or omission on their part.

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The complete question is mentioned below :

A policy that insures the title received by the grantee against deficiencies that may have been in existence at the time the title was transferred is known as

a. real property insurance

b. title insurance

c. title opinion

d. deed insurance

The time in which the real GDP per capita of China will be double is 10 years.

GDP or Gross Domestic Product is defined as the sum of all the goods and services produced within a territory in a year. GDP is a measure of determining the economic worth of a particular country. According to the question GDP per capita of United States is $32000, GDP per capita of China is $4000. The growth rate of US is 2% and growth rate of China is 7%. By the rule of 70 the GDP of China will get double in

70/Growth rate.

So, the GDP of US will get double in 70/2 = 35 years and

The GDP of China will get double in 70/7 = 10 years and the amount will be equal to $8000.

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If the company's target net operating income is $60,000, the sales would have to be $350,000.

The revenues received when a corporation sells its items, products, stuff, etc. are referred to as sales in accounting. The sum paid when a corporation sells a noncurrent asset that was formerly used in its operations (such as an old delivery vehicle, display counters, company car, etc.) is not reported as a sale. It is the quantity of goods and services that a company sells over the course of a reporting period. It is listed at the top of the income statement as a monetary amount, from which operational and other expenses are deducted to determine if a profit or loss was made.

Contribution Margin = 30%

Break even point sales = $150,000

Break even point = Fixed Cost/Contribution Margin

150,000 = x/30%

So Fixed cost x = $45,000

Contribution = Net income + fixed cost

= 60,000+ 45,000

= $105,000

So when contribution is 30% , sales is 100%

sales = 1,05,000/30%

= $350,000

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Based on the fact that Leonard oil refiners inc. needs to borrow $1 million overnight and is willing to secure the loan with a portfolio of securities and the borrower will repurchase tomorrow at a higher price. this is an example of a repurchase agreement

This refers to the type of agreement that is made between a dealer and investors and is a short-term borrowing usually in government securities that usually leads to repurchase the item at a higher price.

Hence, we can see that the given question is a perfect example of this repurchase agreement as the company, Leonard oil refiners inc. needs to borrow $1 million overnight and trades their securities.

With this in mind, the correct answer is a repurchase agreement

In conclusion, it can be seen that to secure the loan with a portfolio of securities that the borrower will repurchase tomorrow at a higher price. this is an example of a repurchase agreement

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The development of the global monetary system has gone through four periods or stages: Golden Rule (1875-1914) Interwar years (1915-1944) System of Bretton Woods (1945-1972).

What stages has the global monetary system gone through?

The four stages of the development of the international monetary system are as follows: the gold standard (1880–1914); the gold exchange standard (1925–1933); the Bretton Woods system (1944–1971); and the Jamaica system, commonly referred to as the variable exchange rate system (1976–present)

How was the global monetary system established?

In July 1944, representatives from 44 nations met in Bretton Woods, New Hampshire, to create a new global monetary system. At the meeting, participants decided to launch the World Bank Group and the International Monetary Fund.

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The peak of a business cycle is generally accompanied by 'the highest rate of increase in the price level over the cycle'. Thus, the correct answer option is (b).

A business cycle refers to the repetitive economic changes that take place over time in a country. The business cycle shows the inverse and decrease in the economy over a period. The business cycle can be influenced by the factors such as interest rates, trade, investment, and production costs. Primarily, financial professionals and enterprises measure the business cycle by the influences of trade and production costs and fluctuations in the gross domestic product (GDP).

The peak is the second phase among the four phases of the business cycle. The peak phase is the point right before core economic indicators begin to fall. At the peak of the business cycle, the highest rates of increase in the price level are noticed and businesses can no longer satisfy the demands of consumers.

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If the structural unemployment rate is 1.5 percent, the frictional unemployment rate is 3.1 percent, and the economy's current unemployment rate is 6.9 percent, the economy is going to be in the recessionary gap because they are producing less than the GDP.

The formula for the natural unemployment rate would be: structural unemployment rate + frictional unemployment rate

This would be 1.5 + 3.1 percent

= 4.6%

We can see that the current unemployment rate is higher than the natural rate of unemployment therefore we would say that the nation is in a state of recessionary gap producing less than the GDP

This is the term that is used to refer to the situation that is knwon to exist in a government where the people that are willing and are able to do work are unable to get the work and the jobs that they are to offer.

There are different states of unemployment. These are the cyclic unemployment, the frictional unemployment and other forms of unemployment in the society.

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Technological advances in one sector of the economy can lead to a change in the number of people who work in another sector of the economy due to the interconnectedness of the economy.

An economy is described as a set of activities like trading of goods, consumption of goods, and production of goods and services in a nation or within a geographical area.

Technological advancement in one sector of an economy causes the other lagging sectors to also progress. For example, when the information technology sector of a region or a country experiences growth, other sectors like schools, healthcare institutions, and training institutes also experience growth, and it also generates employment. The other sectors use advanced technologies to increase productivity and enhance student learning. All the sectors in an economy are connected, and this causes other sectors in an economy to develop as well.

It can be concluded that technological advances in one sector of the economy can lead to a change in the number of people who work in another sector of the economy due to the interconnectedness of the economy.

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Global integration, The capability to manage operations, not just monitor them, Elimination of updating and repairing multiple systems all are the benefit of running an ERP system. Hence, all of the above is the correct answer.

ERP is the integrated management of significant corporate processes, which is typically done in real-time and is mediated by software and technology. ERP is a type of business management software—typically a suite of linked applications—that a company may use to gather, store, manage and interpret data from various business operations. ERP solutions can be either local or cloud-based. Cloud-based apps have risen in popularity in recent years as a result of the information being easily accessible from any location with Internet connectivity. Traditional on-premise ERP systems are increasingly seen as obsolete technology.

ERP systems monitor business resources such as cash, raw materials, and manufacturing capacity, as well as the status of business obligations such as orders, purchase orders, and payroll.

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(C) the quantity of dollars demanded falls If the real exchange rate rises. It is because these two aspects is related each other.

Exchange Rate generally can be defined as the value of a country's currency versus the currency of another country or economic zone. To determine currency exchange rates in a country, there are two main systems that used, there are floating currencies and also pegged currencies. Floating exchange rate or known as floating is determined by market. In other words, currency is worth whatever the buyer is willing to pay for it. It is determined by supply and demand, which in turn is driven by foreign investment, the import/export ratio, inflation, and a number of other economic factors.

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Answer:

A:True

Explanation:

Don't call me out like that

When a capital expenditure is treated as a repair and maintenance expense, expenses are overstated while net income is understated.

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The net residual balance in an account is the finishing balance. It is typically measured as part of the closing process at the conclusion of a reporting period. The process of calculating an ending balance involves adding the amount of all transactions in an account to the initial balance.

The following formula can be used to determine the final balance of prepaid expenses:

Beginning balance plus debit entries minus credit entries equals the final balance. We are informed of the following:

Start-Up Balance: $240,000

$110,000 in total debit entries

$80,000 total credit entries

Consequently, the ending balance is 24000+110000-80000, or 270,000.

$270,000 will be the final sum of prepaid expenses.

An item that has been paid for in advance but has not yet been recorded as an expense by a corporation is documented at a specific point in time. In other words, prepaid expenses are outlays that are made during one accounting period but won't be recorded until a subsequent one.

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If  it costs $1 to store a box for a year, the order size is 400 units and the number times a year should the orders be placed to minimize inventory costs is 10 times.

Economic order quantity:

Using this formula to determine the economic order quantity

EOQ = √[2 (setup costs)(demand rate)] / holding costs.

Let plug in the formula

EOQ =√(2× 20× 4000)/1

EOQ = √160,000

EOQ = 400 units

Number of orders:    

Number  of orders = Annual Demand / EOQ

Number of order = 4000/400

Number of order  = 10 times

Therefore the EOQ is 400 units and the number of orders is 10.

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A true statement on the organizations that practice a performance-driven approach is that performance evaluations link results to employee compensation and development.

The performance driven approach refers to an approach that some companies use where employees are rewarded based on how much work they put into the company in a certain period, or how much activity can be traced to them.

The performance-driven approach is used by companies that prioritize the production of goods and services in higher quantities so that they can be able to sell more of their goods or service. The way that the performance of an employee is linked to them is through performance evaluations. Based on the result of these evaluations, employee compensation and their development and promotion in the company is determined.

In conclusion, the performance driven approach, relies on performance evaluations.

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Operating a single warehouse system requires the same amount of inventory as a four-warehouse distribution network is false.

Raw materials used in production as well as finished products that are offered for sale are both included in the definition of inventory. Inventory is one of a company's most crucial assets because it is one of the main sources of income production and, as a result, a source of profits for the company's shareholders. There are three different categories i.e., finished commodities, work-in-progress, and raw materials constitute inventory. It appears as a current asset on the balance sheet of a business.

Inventory is a crucial asset for any business. It is described as the assortment of raw materials or completed products that a company maintains throughout the normal course of operations.

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The degree of customer contact measures the amount of time the customer is B. The amount of time the customer is in the service delivery system while the service is being produced.

Fantastic clients are Advocates. High-quality customers, after they surely are becoming exceptional price out of your product, become extra than just glad. They do greater than just references. They provide you with extra than just excessive consumer pleasure marks.

Clients want your services or products to be characteristic of the manner they want with the intention to resolve their problem or preference. Clients have precise budgets with which they can purchase a service or product. Your services or products desire to be a convenient strategy to the characteristic your customers are looking to meet.

These are variables that include the event, the benefit sought, consumer status, consumer charge, loyalty rate, readiness stage, and purchasers' attitude. They include loyalty, value, frequency of purchase, quantity of purchase, time of year, time concerned in buying decision, and where a customer purchases the product.

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An automobile salesperson uses market place or social media when it accesses a mobile system to obtain the latest information on consumer demand for electric vehicles.

Social media are used by some businesses for increasing their brand awareness, others use it for driving website traffic and sales. Social media can help you generate engagement around your brand, create a community, and serve as a customer support channel for your customers.

Social media can help you to connect to your customers, increase your online traffic, improve your customer-brand relationship, and establishes your credibility.

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The benefit for Sideway if she decides to incorporate her business is that

corporations have an expanded potential to acquire financing.

A company is a legitimate entity that exists independently of its owners. Many of the same legal rights and obligations that apply to individuals financing also corporations apply to businesses. They have legal authority to make agreements, lend and borrow money, file lawsuits, hire staff, possess property, and pay taxes.

The majority of big companies are corporations, such  Some businesses operate both under corporations their own names and under several trade names, such as financing illustrious parent company, Alphabet Inc.

When a group of shareholders incorporates a business with the intention of pursuing a common objective, they each hold stock shares corporations that reflect a portion of the corporation's ownership.

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