Guidance and discipline assignment #8-2

part 6 7 Question 3.4 Safety First Inc. produces baby products, including car seats for children from 0-2 years old. The company is worried because one of its competitors has recently come under public scrutiny because of product failure. Historically, Safety First Inc’s only problem with its car seats was stitching in the straps. The problem can usually be detected and repaired during an internal inspection. The cost of the inspection is $5.00 per car seat, and the repair cost is $1.00 per car seat. All 200,000 car seats were inspected last year, and 5% were found to have problems with the stitching in the straps during the internal inspection. Another 1% of the 200,000 car seats had problems with the stitching, but the internal inspection did not discover them. Defective units that were sold and shipped to customers needed to be shipped back to Safety First and repaired. Shipping costs are $8.00 per car seat, and repair costs are $1.00 per car seat. However, the out-of-pocket costs…

Question 3.4                                                                                                                  Safety First Inc. produces baby products, including car seats for children from 0-2 years old. The company is worried because one of its competitors has recently come under public scrutiny because of product failure. Historically, Safety First Inc’s only problem with its car seats was stitching in the straps. The problem can usually be detected and repaired during an internal inspection. The cost of the inspection is $5.00 per car seat, and the repair cost is $1.00 per car seat. All 200,000 car seats were inspected last year, and 5% were found to have problems with the stitching in the straps during the internal inspection. Another 1% of the 200,000 car seats had problems with the stitching, but the internal inspection did not discover them. Defective units that were sold and shipped to customers needed to be shipped back to Safety First and repaired. Shipping…

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Identify whether each of the following is an example of adverse selection or moral hazard.A. Joe begins smoking in bed after buying fire insurance. B. Both of Susan’s parents lost their teeth to gum disease, so Susan buys dental insurance. C. When Gertrude parks her Corvette convertible, she does not bother putting the top up, because her insurance covers theft of any items left in the car.

You friend Zach promises to help you with you homework tomorrow night.  You are really happy because you need help and say, "thank you so much!"  The next day Zach changes his mind and says he can't help you. Is Zach legally bound by his promise?

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6 Stella and Josh are young parents of two children, aged 1and 3  Stella is employed as a senior manager at a company where she is covered under a group i up his job to look after the children and is not covered under any insurance plan. The couple meets with an insurance agent to discuss their options to cover for child the event of Josh's disability. Which of the following recommendations is the agent likely to provide?

Chapter 4/Question 2: Montague’s paint shop has suffered some bad publicity as a result of a customer claiming to be suffering from skin rashes as a result of using a new brand of paint sold by Montague’s shop. The customer launched a court action against Montague in November 20X3, claiming damages of $5,000. Montague’s lawyer has advised him that the most probable outcome is that he will have to pay the customer $3,000. What amount should Montague include as a provision in his financial statements for the year ended 31 December 20X3?

46 Barney Farnsworth is unable to afford the proposed insurance premium to insure his hobby shop. Instead of purchasing insurance, Barney decides to set aside a specific amount of money to use in the event that property loss occurs. What do we call this type of risk management technique?

QUESTION 10 Syhoo Senior Center, a not-for-profit entity, enjoys the services of a group of high-school-age people who each agree to work three afternoons a week for three hours each afternoon performing a variety of patient-related services, such as writing letters for those who are unable to do so, delivering mail to the patient rooms, and pushing wheel-chair patients across the grounds. The services rendered by these young people enhance the quality of life for the residents. They could not be provided if they were not donated because there are not enough resources to do so. In year 2019, the young people donated 5,000 hours in total. The services would have cost $10.00 per hour if they had been purchased but they were worth $20 an hour to Syhoo Senior Center. A local CPA firm also donates its services to prepare the annual tax return and other federal and state required paperwork which must be filed to maintain its status as a tax- exempt organization. During 2019 the CPA firm…

Question #60 of 85   Question ID: 1251856 Karen is the sole owner of a wildly successful small business. However, Karen's financial advisor has told her that her estate would be unable to meet its cash requirements if she were to die today, and the business would have to be sold. Karen, who is a widow with not children, is only 50 and plans to continue running the business for many years. However, she does want to take some action to prevent the possible sale of the business should she die, and prevent future appreciation of the business from inclusion in her gross estate. Karen is very close to one of her nieces, who has shown an interest in and aptitude for the business. Which one of the following actions would be most appropriate to help meet the liquidity needs of Karen's estate and would be consistent with her objectives and situation?     A) Karen should convert the business into an S corporation and gift shares in the corporation to her niece over a period of years.…

Question 53 of 81. Judee has two qualifying children for the Child and Dependent Care Credit, Emily (4) and D'Andre (8). Judee paid $13,000 for Emily's care, but D'Andre stayed at a friend's house, so there were no expenses for him. Assuming all other tests are met, how much expense can Judee use to calculate her credit? $3,000 $6,000 $8,000 $16,000

4 7:23 k t nces MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent meeting. The teacher has offered to buy 1,600 copies of the CD at a price of $6.00 each. MSI could easily modify one of its existing educational programs about U.S. history to accommodate the request. The modifications would cost approximately $420. A summary of the information related to production of MSI's current history program follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit Sales price per unit $ 1.12…