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almond37 [142]
2 years ago
10

A day care program frequently has a few parents picking up their children late. In an attempt to curb this, the daycare decides

to charge a fine to parents who are more than 10 minutes late. However, after the fine was implemented, the number of late parents increased. Which of these conclusions can be true?
1)The fine eliminated the non-financial incentives to be on time


2)The fine was not high enough to discourage being late


3)The fine was perceived as a price


4) All of the above
Business
2 answers:
alexandr1967 [171]2 years ago
5 0

Answer:

4) All of the above

Explanation:

The day care program should have rewardedbeing on time to encourage this attitude.

Instead they put a price on being late. As parent considers this price cheap they arrive later to have some extra time beofre picking their childrens

Either the day care program reconsiders the fine policy and moves into a better program to estimulate being on time or it increases the "price" so is more expensive for the parents to come in time rather than paiying their fines.

Sav [38]2 years ago
4 0

Answer:

The correct answer is number (4): All of the above.

Explanation:

<em>The fine eliminated the non-financial incentives to be on time </em>and <em>the fine was perceived as a price </em>because parents possibly felt guilty for picking up their children late but no punishments were given before the penalty. Since it was introduced, parents may consider it a fair trade for being late and are willing to pay the penalty.

Besides, it is possible that <em>the fine was not high enough to make parents change their behavior</em> because instead of decreasing the number of parents picking up their children late, the penalty increased it.

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The $40 million lottery payment that you have just won actually pays $2 million per year for 20 years. The interest rate is 8%.
Lyrx [107]

Answer:

Explanation:

We will apply the annuity formula because payments are made equally at year end for 40 years. we would have applied compound formula if total payment was made at year 40.

Total Payment = $40 mill.

Annual Payment = 2 mill.

Total time for payments =20

Ir = 8%

A)

Present Value of innings applying annuity formula

P=R(1-(1+i)^-n)/i

P=2(1-(1+8%)^-20)/8%

P=2(1-0.2145)/8%

P=2*9.8181

P=19.6362

B)

Present Value of innings applying annuity formula with Advance payment

Value of the first payment is same because it is paid at day 1 so present value is same i.e $2 mill.

Present Value of other 19 Payments with 19 years time from today

Applying the same formula

P=R(1-(1+i)^-n)/i

P=2(1-(1+8%)^-19)/8%

P=2(1-0.2317)/8%

P=2*9.6035

P=19.207

Present value of 1st payment at Year.0 = 2 mill

Present value of 19 payment at Year.0 = 19.207

Total Value =2+19.207 = $21.02 mill

5 0
2 years ago
Brief Exercise 5-8 Cullumber Company has a unit selling price of $630, variable costs per unit of $300, and fixed costs of $327,
IRISSAK [1]

Answer:

(a)

Mathematical Equation for break-even

F = QP - QV

Where

F = fixed cost

Q = Break-even quantity

P = Selling price

V = Variable cost

F = Q ( P - V )

Q = F / ( P - V )

Q = $327,030 / ( $630 - $300 )

Q = $327,030 / $330

Q = 991 units

(b)

Contribution Margin = Price per unit - Variable cost per unit

Contribution Margin = $630 - $300 = $330

Break-even Point in Units = Fixed Cost / Contribution margin per unit

Break-even Point in Units = $327,030 / $330 = 991 units

Explanation:

Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.

Contribution per unit method use the contribution of each unit to calculate the break-even point.

5 0
2 years ago
I sell shoes for $250 per pair. They cost me $25 to produce. My markup on cost is:______
aalyn [17]

Answer:

Markup percentage= 900%

Explanation:

Giving the following information:

I sell shoes for $250 per pair. They cost me $25 to produce.

<u>To calculate the markup percentage, we need to use the following formula:</u>

Markup percentage= [(selling price - unitary cost)/unitary cost]*100

Markup percentage= [(250 - 25)/25]*100

Markup percentage= 900%

7 0
2 years ago
Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,902.14. The bond has a coupon rate of 6.48 percent and m
Virty [35]

Answer:

yield to maturity = 7.06%

Explanation:

yield to maturity (YTM) is calculated using the following formula:

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

  • FV = $2,000
  • PV = $1,902.14
  • C = $2,000 x 6.48% x 1/2 = $64.80
  • n = 12 x 2 = 24

YTM = {64.80 + [(2,000 - 1,902.14) / 24]} / [(2,000 + 1,902.14) / 2] = (64.80 + 4.0775) / 1,951.07 = 0.0353 or 3.53% semianually or 7.06% annually

Since the bond sells at a discount, its yield to maturity will be higher than the coupon rate.

8 0
2 years ago
Ethanol and sugar are both made from sugarcane, and ethanol can be used as a fuel substitute for oil. Increasing oil prices caus
Nina [5.8K]

Answer:

The answer is: the <u>supply of</u> sugar to <u>decrease</u> and its price to <u>increase</u>.

Explanation:

Factories that process sugarcane have to decide what quantities will they produce of sugar and ethanol. If they produce sugar, they can'y produce ethanol, and vice versa.  

So when the price of ethanol increases, sugarcane factories will increase the quantity supplied of ethanol, therefore reducing the quantity supplied of sugar. Since the quantity supplied of sugar decrease by external factors not related to its demand, then the price of sugar will increase since the quantity demanded will be more than the quantity supplied.

6 0
2 years ago
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