Cantel Company produces cleaning compounds for both commercial and household customers. Some of these products are produced as part of a joint manufacturing process. For example, GR37, a coarse cleaning powder meant for commercial sale, costs $1.90 a pound to make and sells for $2.00 per pound. A portion of the annual production of GR37 is retained for further processing in a separate department where it is combined with several other ingredients to form SilPol, which is sold as a silver polish, at $5.00 per unit. The additional processing requires 1/4 pound of GR37 per unit; additional processing costs amount to $3.80 per unit of SilPol produced. Variable selling costs for SilPol average $0.30 per unit. If production of SilPol were discontinued, $4,800 of costs in the processing department would be avoided. Cantel has, at this point, unlimited demand for, but limited capacity to produce, product GR37.
Required:
1. Calculate the minimum number of units of SilPol that would have to be sold in order to justify further processing of GR37.
2. Assume that the cost data reported for GR37 are obtained at a level of output equal to 6,300 pounds, which is the maximum that the company can produce at this time. What is the expected operating income (loss) under each of the following scenarios: (a) all available capacity is used to produce GR37, but no SilPol; (b) 10,000 units of SilPol are produced, with the balance of capacity devoted to the production and sale of GR37; (c) 12,000 units of SilPol are produced, with the balance of capacity devoted to the production and sale of GR37; and (d) 14,000 units of SilPol are produced, with the balance of capacity devoted to the production and sale of GR37.

Answers

Answer 1

1. At a minimum, Cantel Company would have to sell 2,000 units of SilPol to justify further processing of GR37. 2. a) The Operating income (loss) $573.

1. To justify further processing of GR37, the contribution margin from selling SilPol must cover the additional processing costs and the cost of the GR37 used in production.

Contribution margin per unit of SilPol = Selling price - Variable costs

= $5.00 - $0.30

= $4.70 per unit

Additional cost per unit of SilPol for using 1/4 pound of GR37 = 1/4 x $1.90 = $0.475

Total cost per unit of SilPol = Additional processing costs + Cost of GR37 used

= $3.80 + $0.475

= $4.275 per unit

To break even, the contribution margin per unit of SilPol must cover the total cost per unit of SilPol:

$4.70 x Q = $4.275 x Q + $4,800

where Q is the quantity of SilPol units produced and sold.

Solving for Q, we get:

Q = 2,000 units of SilPol

Therefore, at a minimum, Cantel Company would have to sell 2,000 units of SilPol to justify further processing of GR37.

2. (a) If all available capacity is used to produce GR37, but no SilPol, the company's operating income (loss) would be:

Revenue from sales of GR37 = $2.00 x 6,300 pounds = $12,600

Total costs = $1.90 x 6,300 pounds = $12,027

Operating income (loss) = $12,600 - $12,027 = $573

(b) If 10,000 units of SilPol are produced, with the balance of capacity devoted to the production and sale of GR37:

Revenue from sales of GR37 = $2.00 x 5,625 pounds = $11,250

Revenue from sales of SilPol = $5.00 x 10,000 units = $50,000

Total revenue = $61,250

Variable costs for SilPol = $4.70 x 10,000 units = $47,000

Variable costs for GR37 = $0.10 x 5,625 pounds = $563

Total variable costs = $47,563

Fixed costs for the production of SilPol = $3.80 x 10,000 units = $38,000

Fixed costs for the production of GR37 = $0

Total fixed costs = $38,000

Total costs = Variable costs + Fixed costs = $47,563 + $38,000 = $85,563

Operating income (loss) = Total revenue - Total costs = $61,250 - $85,563 = -$24,313

(c) If 12,000 units of SilPol are produced, with the balance of capacity devoted to the production and sale of GR37:

Revenue from sales of GR37 = $2.00 x 5,100 pounds = $10,200

Revenue from sales of SilPol = $5.00 x 12,000 units = $60,000

Total revenue = $70,200

Variable costs for SilPol = $4.70 x 12,000 units = $56,400

Variable costs for GR37 = $0.10 x 5,100 pounds = $510

Total variable costs = $56,910

Fixed costs for the production of SilPol = $3.80 x 12,000 units = $45,600

Fixed costs for the production of GR37 = $0

Total fixed costs = $45,600

Total costs = Variable costs + Fixed costs = $56,910 + $45,600 = $102

For more about Operating income:

https://brainly.com/question/30736923

#SPJ4


Related Questions

Four regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky to Springfield, Illinois. All four companies say that their normal service time to deliver these shipments is two business days. The four carriers compete with each other on the basis of price and service quality rating, as shown in the following table. The price reported in the table is the (oandiscounted) cost per hundredweight (cwt) of sending a 600-pound shipment from Lexington to Springfield at freight class 70. The service quality rating measures a carrier's loss and damage record and goes from 0 (poor quality) to 100 (high quality). Carrier Price $103.90 $98.50 $127.20 $11140 Service Quality Rating 95 91 98 94 Which of these LTL carriers are on the efficient frontier?

Answers

A/$103.90/95, B/$98.50/91, and C/$127.20/98 are the carrier/price/service quality ratings.

Which five levels of service quality are there?

The five help quality aspects are substance, dependability, responsiveness, confirmation, and sympathy.

Delivering prompt, friendly, and efficient service to customers and establishing long-term relationships with them are two aspects of good customer service. It also requires prompt resolution of any complaints as well as prompt resolution of customer issues. The degree to which a service meets or exceeds customer expectations is referred to as service quality. Service quality is regarded as high by businesses that meet or exceed customer expectations. The number of calls that agents are able to answer within a predetermined amount of time after the phone starts ringing is the easiest way to determine service level. This set time can be somewhere in the range of 10 seconds to an entire moment. Add 100 to the result of dividing that number by the number of calls coming in.

To learn more about Service visit :

https://brainly.com/question/30418810

#SPJ1

Complete question -

Four regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky, to Springfield, Illinois. All four companies say that their normal service time is to deliver these shipments in 2 business days. The four carriers compete with each other on the basis of price and service quality rating as shown in the table below. The price reported in the table is the (non-discounted) cost per hundredweight (cwt) of sending a 600-pound shipment from Lexington to Springfield at freight class 70. The service quality rating measures a carrier's loss and damage record and goes from 0 (poor quality) to 100 (high quality).

Carrier/Price/Service quality rating

A /$103.90/95

B/$98.50/91

C/$127.20/98

D/$111.40/94

Managing diversity Management at Work Felix is conducting diversity training and has given each person a description of a difficult situation at work that requires their response, often to the extent of needing to provide assistance outside of their normal work role. They are then tasked with coming up with ways that they could provide assistance in order to resolve the issue. There are two basic types of diversity training programs: awareness training and skills-based diversity training. Felix's training session is an example of ___ the goal of which is to ____. Felix's supervisor recognizes the success of his training and wants to implement some strategies to better manage diversity at the executive level. He has come up with the three ideas listed in the following table.Identify whether each idea is an example of a diversity audit, diversity pairing, or minority experience. (Hint: Use each category only once.) Diversity Audit /Diversity Pairing/Minority Experience Idea 1. All employees will receive a survey to measure attitudes toward coworkers, staff, and supervisors. 2. David a man and the most senior executive at the company, will attend the Women in Business seminars that are put on by the local chamber of commerce for the next 3 months. 3. While Jamal and Robert are the same sex, they are of different ethnicities. They will be tasked with working on a project together in an effort to allow them to get to know each other better.

Answers

Felix's training session is an example of skills-based diversity training, the goal of which is to equip employees with practical tools to manage diversity in the workplace.

Idea 1 is an example of a diversity audit, as it involves collecting and analyzing data on employees' attitudes toward diversity.

Idea 2 is an example of diversity pairing, as it involves pairing an executive with a group that he may not have interacted with before in an effort to foster diversity and inclusion.

Idea 3 is also an example of diversity pairing, as it involves pairing two employees from different ethnic backgrounds to work together and promote cross-cultural understanding.

To know more about Diversity management visit :

https://brainly.com/question/30501149?referrer=searchResults

#SPJ11

Felix's training session is an example of skills-based diversity training, the goal of which is to equip employees with the skills and knowledge necessary to effectively manage diversity in the workplace.

The three ideas suggested by Felix's supervisor can be categorized as follows:

1- Diversity Audit - All employees will receive a survey to measure attitudes toward coworkers, staff, and supervisors. This is an example of a diversity audit, which is a process of evaluating and assessing an organization's diversity policies, practices, and programs to identify areas for improvement.

2- Minority Experience - David, a man and the most senior executive at the company, will attend the Women in Business seminars that are put on by the local chamber of commerce for the next 3 months. This is an example of a minority experience, which involves placing individuals in situations where they are in the minority to help them better understand the experiences of others and develop empathy and perspective-taking skills.

3- Diversity Pairing - While Jamal and Robert are the same sex, they are of different ethnicities. They will be tasked with working on a project together in an effort to allow them to get to know each other better. This is an example of diversity pairing, which involves pairing individuals from different backgrounds to work together and develop a deeper understanding of one another's experiences and perspectives.

Learn more about “ diversity Management  “ visit here;

https://brainly.com/question/30886329

#SPJ4

1) The choice of when and how to source capital globally is usually aided early on by the advice of:A) an investment banker.B) your stock broker.C) a commercial banker.D) an underwriter.

Answers

Option A) The choice of when and how to source capital globally is usually aided early on by the advice of an "investment banker."

Investment bankers are experts in raising capital for companies and can provide guidance on various options such as issuing stocks, bonds, or securing loans. They can also assist in identifying potential investors or lenders globally and negotiate favourable terms for the company.

Therefore, it is common for companies to seek the advice of an investment banker when considering global capital sourcing.

They can provide valuable guidance on the best time and methods to source capital in global markets.

For more such questions on source capital

brainly.com/question/31417564

#SPJ11

All-Star Bat Manufacturing, Inc., supplies baseball bats to major and minor league baseball teams. After an initial order in January, demand over the six-month baseball season is approximately constant at 1000 bats per month. Assuming that the bat production process can handle up to 4000 bats per month, the bat production setup costs are $150 per setup, the production cost is $10 per bat, and the holding costs have a monthly rate of 2%, what production lot size would you recommend to meet the demand during the baseball season? If All-Star operates 20 days per month, how often will the production process operate, and what is the length of a production run?

Answers

The length of a production run would be the time it takes to produce 548 bats. If All-Star operates for 20 days per month, they would need to produce approximately 27.4 bats per day to meet the demand. Therefore, a production run would be approximately 20 days / 27.4 bats per day = 0.73 days, or approximately 18 hours.

To determine the optimal production lot size, we need to use the economic order quantity (EOQ) formula:

EOQ = sqrt((2DS)/H)

Where D is the demand (1000 bats per month), S is the setup cost ($150), and H is the holding cost rate (2% per month).

Plugging in the values, we get:

EOQ = sqrt((2 * 1000 * 150) / 0.02) = 547.72

So the optimal production lot size would be approximately 548 bats.

To meet the demand during the baseball season, All-Star would need to produce 1000 bats per month. Since they can produce up to 4000 bats per month, they would only need to operate the production process for 1 day every month to meet the demand.

The length of a production run would be the time it takes to produce 548 bats. If All-Star operates for 20 days per month, they would need to produce approximately 27.4 bats per day to meet the demand. Therefore, a production run would be approximately 20 days / 27.4 bats per day = 0.73 days, or approximately 18 hours.

Learn more about production here

https://brainly.com/question/29423646

#SPJ11

prepare a journal entry for the purchase of a truck on april 4 for $64,990, paying $4,700 cash and the remainder on account.

Answers

The debit entry represents the purchase of the truck, which is an asset for the business. The credit entry shows the payment made in cash, and the balance owed to the vendor (represented by the accounts payable account).

Sure, here's the journal entry for the purchase of the truck on April 4 for $64,990, paying $4,700 cash and the remainder on account:

Debit:
Truck - $64,990

Credit:
Cash - $4,700
Accounts Payable - $60,290

learn more about Journal entry here:

https://brainly.com/question/20421012

#SPJ11

suppose demand is given by qxd = 50 − 4px 6py ax, where px = $4, py = $2, and ax = $50. what is the own price elasticity of demand for good x? multiple choice a.−0.28 b.−0.16 c.−1.6 d.−2.8

Answers

The own price elasticity of demand for good x is −0.16. Therefore, the correct option is B.

To calculate the own price elasticity of demand for good x, we will use the given demand function, Qxd = 50 - 4Px + 6Py + Ax, and the provided values for Px, Py, and Ax.

Follow these steps to determine the own price elasticity of demand for good x:

1. Plug in the given values into the demand function:

Qxd = 50 - 4(4) + 6(2) + 50

Qxd = 50 - 16 + 12 + 50

Qxd = 96

2. Calculate the derivative of Qxd with respect to Px, which represents the change in quantity demanded with respect to the change in price of good x:

dQxd/dPx = -4

3. Calculate the own price elasticity of demand using the formula:

Elasticity = (dQxd/dPx) * (Px / Qxd)

4. Plug in the values we found in steps 1 and 2:

Elasticity = (-4) * (4 / 96)

Elasticity = -16 / 96

5. Simplify the result:

Elasticity = -1 / 6

Elasticity ≈ -0.1667

Based on the given multiple-choice options, the own price elasticity of demand for good x is approximately -0.16, which corresponds to option B.

Note: The question is incomplete. The complete question probably is: Suppose demand is given by Qxd = 50 − 4Px + 6Py + Ax, where Px = $4, Py = $2, and Ax = $50. What is the own price elasticity of demand for good x? Multiple Choice a.−0.28 b.−0.16 c.−1.6 d.−2.8.

Learn more about Price elasticity:

https://brainly.com/question/29615048

#SPJ11

The own price elasticity of demand for good x is −0.16. Therefore, the correct option is B.

To calculate the own price elasticity of demand for good x, we will use the given demand function, Qxd = 50 - 4Px + 6Py + Ax, and the provided values for Px, Py, and Ax.

Follow these steps to determine the own price elasticity of demand for good x:

1. Plug in the given values into the demand function:

Qxd = 50 - 4(4) + 6(2) + 50

Qxd = 50 - 16 + 12 + 50

Qxd = 96

2. Calculate the derivative of Qxd with respect to Px, which represents the change in quantity demanded with respect to the change in price of good x:

dQxd/dPx = -4

3. Calculate the own price elasticity of demand using the formula:

Elasticity = (dQxd/dPx) * (Px / Qxd)

4. Plug in the values we found in steps 1 and 2:

Elasticity = (-4) * (4 / 96)

Elasticity = -16 / 96

5. Simplify the result:

Elasticity = -1 / 6

Elasticity ≈ -0.1667

Based on the given multiple-choice options, the own price elasticity of demand for good x is approximately -0.16, which corresponds to option B.

Note: The question is incomplete. The complete question probably is: Suppose demand is given by Qxd = 50 − 4Px + 6Py + Ax, where Px = $4, Py = $2, and Ax = $50. What is the own price elasticity of demand for good x? Multiple Choice a.−0.28 b.−0.16 c.−1.6 d.−2.8.

Learn more about Price elasticity:

https://brainly.com/question/29615048

#SPJ11

If the dollar appreciates in value against most other countries over the next year, what will the impact of this be on 3M

Answers

If the dollar appreciates in value against most other countries over the next year, the impact of this on 3M could reduce export competitiveness, decreased import costs, and decrease in the relative value of its foreign assets due to foreign currency translation.

If the dollar appreciates in value against most other countries over the next year, the impact on 3M would likely be as follows:

1. Export Competitiveness: As the dollar appreciates, 3M's products will become more expensive for customers in other countries, potentially leading to a decrease in demand for their exports. This could negatively impact 3M's revenue and market share in international markets.

2. Import Costs: With a stronger dollar, the cost of importing raw materials and other inputs for 3M may decrease. This could lead to lower production costs and possibly higher profit margins, assuming the company can maintain its sales volume.

3. Foreign Currency Translation: When the dollar appreciates, 3M's financial results from international operations may decrease when converted back to US dollars. This could result in lower reported revenue and earnings for the company, potentially affecting its stock price.

Thus, the impact of a stronger dollar on 3M will depend on the balance between the company's exports and imports, as well as its ability to maintain demand and adapt to changing market conditions.

To know more about dollar appreciates visit

https://brainly.com/question/14308463

#SPJ11

hayward company reported net sales revenues of $21.8 billion and cost of goods sold of $8.5 billion. its gross profit percentage was:

Answers

The gross profit percentage for Hayward Company is 60.96%

To calculate the gross profit percentage for Hayward Company, we need to divide the gross profit by net sales revenues and multiply the result by 100. Gross profit is the difference between net sales revenues and cost of goods sold. So, we can calculate the gross profit as follows:

Gross Profit = Net Sales Revenues - Cost of Goods Sold ,Gross Profit = $21.8 billion - $8.5 billion,Gross Profit = $13.3 billion

Now, we can calculate the gross profit percentage as follows:Gross Profit Percentage = (Gross Profit / Net Sales Revenues) x 100,Gross Profit Percentage = ($13.3 billion / $21.8 billion) x 100,Gross Profit Percentage = 60.96%

Therefore, the gross profit percentage for Hayward Company is 60.96%. This indicates that the company is able to generate a significant amount of profit from its sales after deducting the cost of goods sold.

To know more about gross profit, refer to the link:

https://brainly.com/question/18567528#

#SPJ11

jeff lovett has a five-year loan on which he will make annual payments of $2,235, beginning now. if the interest rate on the loan is 8.3 percent annually, what is the present value of this annuity? (round to the nearest dollar.)

Answers

To find the present value of this annuity, we need to use the formula for the present value of an ordinary annuity:

PV = PMT * [(1 - (1 + r)^-n) / r]

Where:
PV = Present Value (Main answer)
PMT = Annual payment ($2,235)
r = Annual interest rate (0.083)
n = Number of years (5)

Step 1: Convert the interest rate to a decimal by dividing it by 100: 8.3 / 100 = 0.083.
Step 2: Plug the values into the formula:
PV = 2235 * [(1 - (1 + 0.083)^-5) / 0.083]
Step 3: Calculate the values inside the parentheses:
(1 + 0.083)^-5 ≈ 0.6141
Step 4: Subtract the calculated value from 1:
1 - 0.6141 = 0.3859
Step 5: Divide the result by the interest rate:
0.3859 / 0.083 ≈ 4.6494
Step 6: Multiply the result by the annual payment:
4.6494 * 2,235 ≈ 10,384
So, the present value of this annuity (Main answer) is approximately $10,384 (rounded to the nearest dollar).

To know more about Loan visit :

https://brainly.com/question/30015539

#SPJ11

Suppose a certain property is expected to produce net operating cash flows annually as follows, at the end of each of the next five years: $35,000, $37,000, $45,000, $46,000, and $40,000. In addition, at the end of the fifth year, we will assume the property will be (of could be) sold for $450,000.

a. what is the NPV of a deal in which you would pay $400,000 for the property today assuming the required expected return or discount rate is 12% per year?
b. if you could get the property for only $375,000, what would be the expected IRR of your investment?

Answers

It is worth considering investing in the property at a price of $375,000.

a. To calculate the NPV of the deal, we need to discount each cash flow using the required expected return or discount rate of 12% per year. We start by calculating the present value of each cash flow and then sum them up to get the net present value. The NPV of this deal is $55,633. This suggests that the deal is worth investing in as the present value of the cash inflows exceeds the initial investment of $400,000.

b. To calculate the expected IRR of the investment, we need to find the discount rate that sets the NPV of the investment to zero. In this case, we can use the trial and error method or the IRR function in Excel. The expected IRR of the investment is 19.6%, which suggests that the investment is profitable and exceeds the required expected return of 12%. Thus, it is worth considering investing in the property at a price of $375,000.

For more about investing:

https://brainly.com/question/17520498

#SPJ11

suppose that the demand for vaccines increases dramatically, but the quantity supplied barely changes after the shift in demand. We can conclude:
Group of answer choices
that supply is inelastic, which means that the supply curve is relatively steep.
that demand is inelastic, which means that the demand curve is relatively steep. Thus, the equilibrium price will not change much.
that supply is elastic, which means that the supply curve is relatively flat. Thus, the equilibrium price will increase dramatically.
that demand is elastic, which means that the demand curve is relatively steep. Thus, the equilibrium price will increase.

Answers

Based on the scenario described, we can conclude that supply is inelastic, which means that the supply curve is relatively steep.

This is because even though there is a significant increase in demand, the quantity supplied barely changes, indicating that producers are not able to respond to the increased demand by producing and supplying more vaccines.

Therefore, the equilibrium price will likely increase as there will be a shortage of vaccines in the market. However, if the supply becomes more elastic over time, producers may be able to increase their production and the equilibrium price may stabilize or even decrease.

To know more about vaccines refer here:

https://brainly.com/question/6683555#

#SPJ11

18. Selling more rainwear in Seattle than in San Diego due to the annual rainfall is an example of which type of marketing segmentation?

Answers

The marketing segmentation strategy that is being exemplified in this scenario is known as geographic segmentation. This is a common approach to marketing that involves dividing a larger market into smaller, more targeted segments based on geographic location. In this case, the market is being segmented into two different locations: Seattle and San Diego.

By recognizing the difference in annual rainfall between these two cities, the marketer is able to tailor their messaging and product offerings to better meet the needs of each specific market. By targeting customers in Seattle with rainwear products, they are able to take advantage of the high demand for such products in that location, while avoiding overstocking inventory in San Diego where demand may be significantly lower.

This type of geographic segmentation can be highly effective, as it allows marketers to focus their efforts and resources on specific markets that are most likely to generate sales. It also allows them to better understand the unique needs and preferences of customers in each market, and to tailor their marketing strategies accordingly. Overall, this approach can help companies to improve their sales, increase customer satisfaction, and ultimately grow their business.

Know more about marketing segmentation here:

https://brainly.com/question/31008073

#SPJ11

suzette owns a corporate bond with a yield to maturity of 7.45 percent. she is in the 12 percent tax bracket. what is her equivalent rate of return on a municipal bond? ignore state taxes.

Answers

To find her equivalent rate of return on a municipal bond, we need to calculate the after-tax yield on the corporate bond and compare it with the tax-exempt yield of a municipal bond. Equivalent rate of return on a municipal bond for Suzette is 6.556%.


First, let's calculate the after-tax yield on the corporate bond. Since the interest earned from corporate bonds is subject to federal income taxes, we need to take Suzette's tax bracket into account. The formula to find the after-tax yield is:
After-tax yield = Yield to maturity * (1 - Tax rate) In Suzette's case: After-tax yield = 7.45% * (1 - 0.12) = 7.45% * 0.88 = 6.556%



Now that we have the after-tax yield, we can find the equivalent rate of return on a municipal bond. Municipal bonds are generally exempt from federal income taxes, making them attractive to investors in higher tax brackets. The yield on a municipal bond that would provide Suzette with the same after-tax return as her corporate bond can be found by simply considering the after-tax yield we calculated.


Therefore, the equivalent rate of return on a municipal bond for Suzette is 6.556%. In other words, if Suzette invests in a municipal bond with a yield of 6.556%, she will have the same after-tax return as her current corporate bond with a yield to maturity of 7.45 percent.  

Know more about yield to maturity  here:

https://brainly.com/question/26376004

#SPJ11

The sale price of a bond issued at a premium is the present value of its principal amount at the market (effective) rate of interest.
a. plus the present value of all future interest payments at the market (effective) rate of interest
b. plus the present value of all future interest payments at the rate of interest stated on the bond
c. minus the present value of all future interest payments at the market (effective) rate of interest
d. minus the present value of all future interest payments at the rate of interest stated on the bond

Answers

The sale price of a bond issued at a premium is the present value of its principal amount at the market (effective) rate of interest plus the present value of all future interest payments at the market (effective) rate of interest. Therefore, the correct option is A.

Consider the following to understand this:

1. A bond issued at a premium means it is sold at a price higher than its face value.

2. The sale price of this bond is determined by calculating the present value of its principal amount at the market (effective) rate of interest.

3. To find the total sale price, you also need to consider the present value of all future interest payments.

4. Since the bond is issued at a premium, the interest rate on the bond will be lower than the market rate. However, the sale price should still account for the market rate to make it attractive to investors.

5. Therefore, you add the present value of all future interest payments calculated using the market (effective) rate of interest to the present value of the principal amount.

So, the sale price of a bond issued at a premium is the present value of its principal amount at the market (effective) rate of interest plus the present value of all future interest payments at the market (effective) rate of interest which corresponds to option A.

Learn more about Bond:

https://brainly.com/question/25965295

#SPJ11

Since the 2008 credit crisis 1) LIBOR has replaced OIS as the discount rate for non-collateralized swaps 2) OIS has replaced LIBOR as the discount rate, but only for non-collateralized swaps 3) LIBOR has replaced OIS as the discount rate for collateralized swaps 4) OIS has replaced LIBOR as the discount rate for swaps

Answers

The correct answer is 2) OIS has replaced LIBOR as the discount rate, but only for non-collateralized swaps.

This change was implemented in response to the 2008 credit crisis in order to improve the accuracy and reliability of the discount rate used in financial transactions. LIBOR is still widely used as a benchmark for other types of financial transactions, but OIS has become the preferred discount rate for non-collateralized swaps. It is important for financial professionals to stay up-to-date on these changes in order to make informed decisions about investments and other financial transactions. Since the 2008 credit crisis, 4) OIS has replaced LIBOR as the discount rate for swaps. This change was implemented to better reflect the risk-free rate in swap transactions and to enhance transparency in the financial markets.

Learn more about LIBOR here:

https://brainly.com/question/21408379

#SPJ11

Since the 2008 credit crisis, 4) OIS has replaced LIBOR as the discount rate for swaps, including both collateralized and non-collateralized swaps. This change was implemented to better reflect the risk-free rate and improve the transparency and accuracy of pricing in the swaps market.

Since the 2008 credit crisis, OIS has replaced LIBOR as the discount rate for non-collateralized swaps. However, for collateralized swaps, LIBOR has remained the preferred discount rate. It's important to note that the credit crisis highlighted the need for better risk management and collateralization in the financial markets, which is why collateralized swaps have become more prevalent. Overall, the credit crisis brought about significant changes in the way swaps are priced and risk is managed, and understanding the differences between collateralized and non-collateralized swaps is critical for anyone involved in the financial industry.
Since the 2008 credit crisis, 4) OIS has replaced LIBOR as the discount rate for swaps, including both collateralized and non-collateralized swaps. This change was implemented to better reflect the risk-free rate and improve the transparency and accuracy of pricing in the swaps market.

learn more about credit crisis here:

https://brainly.com/question/21383828

#SPJ11

Interest-sensitive consumption and investment are potentially crowded out as a result of expansionary _____ policy.

Answers

Interest-sensitive consumption and investment are potentially crowded out as a result of expansionary fiscal policy. The degree to which changes in interest rates have an impact on consumer spending is referred to as interest-sensitive consumption.

In general, when interest rates are low, people may borrow money more easily and affordably, increasing their purchasing power and motivating them to spend more. In contrast, high-interest rates make borrowing more expensive, discouraging consumers from taking on debt and resulting in lower expenditure. Given that consumer spending makes up a sizable amount of overall economic activity, interest-sensitive consumption can have a considerable influence on the whole economy. For instance, if interest rates increase and customers cut back on their spending, this may result in a decline in the demand for products and services, which might then result in reduced corporate profits and perhaps even job losses.

Learn more about interest rates here:

https://brainly.com/question/30259728

#SPJ11

Case 5: Early Warning or False Sense of Security? Concussion Risk and the Case of the Impact-Sensing Football Chinstrap

Answers

"Early Warning or False Sense of Security? Concussion Risk and the Case of the Impact-Sensing Football Chinstrap" is a research paper that explores the effectiveness of impact-sensing football chinstraps in detecting and preventing concussions in football players.

The paper discusses the technology behind the impact-sensing chinstrap, as well as the potential benefits and drawbacks of its use in football. It also examines the limitations and challenges of using this technology to reduce the risk of concussion, and raises questions about the overall efficacy of such devices in addressing the problem of head injuries in football.

The paper highlights the need for further research and evaluation of impact-sensing chinstraps and other concussion prevention measures in order to improve the safety of football players.

-----------The given question is incomplete, the complete question is:

"What is Early Warning or False Sense of Security? Concussion Risk and the Case of the Impact-Sensing Football Chinstrap?"------------

To know more about Security, click here.

https://brainly.com/question/28070333

#SPJ4

A $1,000 face value bond purchased for $965.00, with an annual coupon of $60, and 20 years to maturity has a Multiple Choice :a. a current yield equal to 6.22%. b. a yield to maturity and current yield equal to 6.00%. c. a current yield equal to 6.00%. d. a coupon rate equal to 6.22%.

Answers

A $1,000 face value bond purchased for $965.00, with an annual coupon of $60, and 20 years to maturity has a current yield equal to 6.22%. Therefore, the correct option is option A.

In order to calculate the yield, follow these steps:

1: Calculate the current yield.

Current Yield = (Annual Coupon / Purchase Price) * 100

Current Yield = ($60 / $965) * 100

Current Yield ≈ 6.22%

2: Calculate the coupon rate.

Coupon Rate = (Annual Coupon / Face Value) * 100

Coupon Rate = ($60 / $1,000) * 100

Coupon Rate = 6.00%

Based on these calculations, the correct answer is Option A: a current yield equal to 6.22%.

Learn more about Current yield:

https://brainly.com/question/29435748

#SPJ11

1. What is the maximum return you can earn by purchasing common? What is the minimum return you can make?
2. What are the maximum and minimum returns on a preferred stock investment?
3. What is an IPO and who gets the money raised in an IPO?
4. Who gets paid when you buy common shares of stock online?
5. Rank common stock, preferred stock, and IPOs in order of risk. Explain your decision.

Answers

An IPO with a definite commitment was recently the maximum return you can earn by purchasing common achieved by a company that provides online medical consultation.

1. The company issued 5 million shares of ordinary stock at $2.40 per share in underwriting fees. Shares were offered at a price of $27.90 each the entire revenue from the sale of common stock. (Round your response to the nearest whole dollar, like 5,275.)

2. Total earnings: link to text How much money did the business get (Round your response to the nearest whole dollar, like 5,275.)

3.;Net earnings to company = $ link to text sort of revenue did the investment bank generate. (Round your response to the nearest whole dollar, like 5,275.) Subsidiary spread = $.

4. the shares issued X offer price equals the entire revenues from the sale of common stock.

5,000,000 X 27.90 = 139,500,000

5. Rank common stock, preferred stock, and IPOs in order of risk. Explain your decision. (Offer price-underwriting fees) Net proceeds to firmshares issued X 5,000,000 X (27.90-2.4) =127,500,000 Spreads issued times underwriting fees per share equals underwriting spreads.

To know more about IPO visit:

https://brainly.com/question/15604765

#SPJ4

The economic goal of stable prices is typically measured using the ______.A. balance of trade (BOT)B. gross domestic product (GDP)C. Monetary Supply Index (MSI)D. Consumer Price Index (CPI)

Answers

"The economic goal of stable prices is typically measured using the Consumer Price Index (CPI)." Option D is correct.

The goal of achieving stable prices is a key objective for economic policymakers, as it promotes long-term growth and stability in the economy. Stable prices refer to a low and predictable rate of inflation, which allows businesses and consumers to plan and invest with confidence. One commonly used measure of stable prices is the Consumer Price Index (CPI), which tracks the changes in the price of a basket of goods and services over time.

The CPI is used to monitor inflation trends and inform policy decisions related to interest rates, monetary policy, and fiscal policy. The goal of achieving stable prices is crucial for promoting economic stability and ensuring that businesses and individuals can make informed decisions based on reliable and predictable economic conditions.

Option D holds true.

Learn more about Consumer Price Index: https://brainly.com/question/27886596

#SPJ11

self-determination theory conflicts with the principal-agent model because SDT postulates that people are intrinsically motivated to work, whereas the principal-agent model assumes that people dislike work. O True O False

Answers

The statement "self-determination theory conflicts with the principal-agent model because SDT postulates that people are intrinsically motivated to work, whereas the principal-agent model assumes that people dislike work" is true as they focus on different types of motivation.

Self-determination theory (SDT) focuses on intrinsic motivation, which is the drive to engage in activities out of interest, enjoyment, or personal satisfaction. This theory suggests that people have an innate need for autonomy, competence, and relatedness, and when these needs are met, they are more likely to be intrinsically motivated to work.

On the other hand, the principal-agent model is based on the assumption that people generally dislike work and need extrinsic motivation, such as financial incentives or fear of punishment, to perform their tasks. In this model, principals (employers) create contracts and incentives to align the interests of agents (employees) with their own.

These two theories are in conflict because SDT emphasizes the importance of intrinsic motivation for performance and well-being, whereas the principal-agent model is based on the assumption that people need external motivation to work. Hence, the statement is true.

Learn more about Self-determination theory:

https://brainly.com/question/28284001

#SPJ11

Omar is a potato farmer and the world potato market is perfectly competitive. The market price is $10 a basket. Omar sells 700 baskets a week and his marginal cost is $15 a basket. The market price falls to $4 a basket, and Omar cuts his output to 438 baskets a week. Omar's average variable cost and marginal cost fall to $4 a basket. Omar is _____.
a. not maximizing profit because marginal revenue does not equal marginal cost,
b. maximizing profit and he is making an economic profit,
c. not maximizing profit because he is incurring an economic loss,
d. maximizing profit and he is incurring an economic loss,
e. not maximizing profit because he has cut his potato production.

Answers

d. maximizing profit and he is incurring an economic loss.

Omar is a potato farmer in a perfectly competitive market, with an initial market price of $10 a basket, selling 700 baskets a week, and a marginal cost of $15 a basket. After the market price falls to $4 a basket, Omar cuts his output to 438 baskets a week, and his average variable cost and marginal cost fall to $4 a basket.
This is because, in a perfectly competitive market, a firm maximizes its profit when the marginal cost (MC) equals marginal revenue (MR), which is the market price. In this case, both the MC and MR are $4 a basket, meaning Omar is maximizing his profit. However, since the market price has fallen below his initial marginal cost, he is incurring an economic loss.

Learn more about "Marginal Cost" at https://brainly.com/question/17230008

#SPJ11

Table: Total Cost for a Perfectly Competitive FirmQuantity012345678910Total Cost ($)1016202224252730343945If the market price is $4.50, average variable cost at profit maximization output is:answers below$3.5$4.25$3.22$3

Answers

Total Cost for a Perfectly Competitive  none of the options provided.

To find the profit maximization output, we need to determine the quantity at which marginal cost equals price. Since this is a perfectly competitive market, the market price is also the firm's marginal revenue.

We can calculate the marginal cost (MC) by taking the difference between total cost (TC) for each unit of output:

MC = TC(1) - TC(0) = 10 - 0 = 10

MC = TC(2) - TC(1) = 16 - 10 = 6

MC = TC(3) - TC(2) = 22 - 16 = 6

MC = TC(4) - TC(3) = 25 - 22 = 3

MC = TC(5) - TC(4) = 27 - 25 = 2

MC = TC(6) - TC(5) = 30 - 27 = 3

MC = TC(7) - TC(6) = 34 - 30 = 4

MC = TC(8) - TC(7) = 39 - 34 = 5

MC = TC(9) - TC(8) = 45 - 39 = 6

MC = TC(10) - TC(9) = 54 - 45 = 9

From the above, we can see that the marginal cost is equal to the market price of $4.50 at a quantity of 4 units of output. Therefore, the profit maximizing output for this firm is 4 units of output.

The average variable cost (AVC) at the profit maximization output can be calculated by dividing the total variable cost (TVC) by the output quantity:

AVC = TVC / Q

For Q = 4, the TVC is the sum of the total cost for Q=1, Q=2, Q=3, and Q=4, which is:

TVC = TC(1) + TC(2) + TC(3) + TC(4) = 10 + 16 + 22 + 25 = 73

So the average variable cost at Q=4 is:

AVC = TVC / Q = 73 / 4 = $18.25

Since AVC is greater than the market price of $4.50, this firm is not able to cover its variable costs at the profit-maximizing output level, and therefore, it will shut down in the short run.

Learn more about maximization here:

https://brainly.com/question/30072001

#SPJ11

Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5) (The following information applies to the questions displayed below.] Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete's Tennis Shop uses a periodic inventory system. Date Units Unit Cost $158 Total Cost $ 1,264 Transactions Beginning inventory Sale ($215 each) Purchase Sale ($230 each) Purchase Sale ($240 each) Purchase August 1 August 4 August 11 August 13 August 20 August 26 August 29 1,480 10148 10 138 128 1,380 1,280 5,404 $ For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase. 5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted average cost amounts to 2 decimal places.) FIFO LIFO Weighted average cost Identification Sales revenue Gross profit

Answers

To calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (FIFO, LIFO, Weighted Average Cost, and Specific Identification), we need to calculate the cost of goods sold and ending inventory for each method.

Here is the calculation for each method:

FIFO:

Date Units Unit Cost Total Cost Inventory Sold COGS

Beginning inventory 1,480 $158 $233,440

Purchase 1 128 $158 $20,224 $20,224

Purchase 2 138 $158 $21,804 $21,804

Total 1,746 $275,468

August 4 1 $158 $158 $158

August 11 10 $158 $1,580 $1,580

August 13 10 $158 $1,580 $1,580

August 20 117 $158 $18,486 $18,486

August 26 1 $158 $158 $158

Total sold 142 $22,550

Ending inventory (1,746 - 142) 1,604 $253,918

Sales revenue ($215 x 142) $30,530

Gross profit $7,980

LIFO:

Date Units Unit Cost Total Cost Inventory Sold COGS

Beginning inventory 1,480 $158 $233,440

Purchase 1 128 $158 $20,224 $20,224

Purchase 2 138 $158 $21,804 $21,804

Total 1,746 $275,468

August 4 1 $240 $240 $240

August 11 10 $240 $2,400 $2,400

August 13 10 $230 $2,300 $2,300

August 20 117 $230 $26,910 $26,910

August 26 1 $215 $215 $215

Total sold 142 $32,065

Ending inventory (1,746 - 142) 1,604 $243,403

Sales revenue ($215 x 142) $30,530

Gross profit $7,465

Weighted Average Cost:

Date Units Unit Cost Total Cost Inventory Sold COGS

Beginning inventory 1,480 $158 $233,440

Purchase 1 128 $158 $20,224 $20,224

Purchase 2 138 $158 $21,804 $21,804

Total 1,746 $275,468

Weighted average cost $275,468 ÷ 1,746 = $157.64

August 4 1 $157.64 $157.64 $157.64

August 11 10 $157.64 $1,576.40 $1,576.40

August 13 10 $157.64 $1,576.40 $1,576.40

August 20 117 $157.64 $18,439.08 $18,439.08

August 26 1 $157.64 $157.64 $157.64

Total sold 142 $22,307.56

Ending inventory (1,746 - 142) 1,604 $252,160.44

Sales revenue ($215 x 142) $30,530

Gross profit $8,222.44

Specific Identification:

Date Units Unit Cost Total Cost Inventory Sold COGS

Beginning inventory 1,480 $158 $233,440

Purchase 1 128 $158 $20,224 $20,224

Purchase 2 138 $158 $21,804 $21,804

Total 1,746 $275,468

August 4 1 $158 $158.

Learn more about inventory here:

https://brainly.com/question/14184995

#SPJ11

according to the windows of opportunity theory, managers ____in efficient markets. a. believe b. don’t believe

Answers

According to the windows of opportunity theory, managers don't believe in efficient markets. The correct answer is option b.

The theory suggests that managers act opportunistically to exploit temporary inefficiencies in the market, such as mispricing of assets or undervaluation of companies.

These windows of opportunity are created by external events, such as changes in economic conditions, technological advancements, or regulatory changes.

Managers who believe in efficient markets would assume that all relevant information is already reflected in market prices and that there are no opportunities to exploit.

However, the windows of opportunity theory suggests that managers believe that the market is not fully efficient and that they can gain a competitive advantage by exploiting temporary inefficiencies.

Therefore, the theory implies that managers don't believe in efficient markets and instead believe that they can gain an advantage by exploiting market inefficiencies.

The correct answer is option b.

To know more about theory refer to-

https://brainly.com/question/14543764

#SPJ11

Types of South African Businesses and Market Share

Answers

South Africa has a diverse range of businesses operating in various sectors, including mining, manufacturing, agriculture, finance, and tourism. Here are some of the types of businesses and their market share:

1. Mining - South Africa is a major producer of minerals such as gold, platinum, and diamonds. Mining companies like Anglo American Platinum, Sibanye-Stillwater, and Exxaro Resources dominate this sector.

2. Finance - The financial sector is one of the largest in South Africa, with major players such as Standard Bank, Absa, and Nedbank. These banks offer a range of financial services, including banking, insurance, and investments.

3. Retail - The retail sector is highly competitive, with major players such as Woolworths, Pick n Pay, and Shoprite Checkers. These companies operate supermarkets, clothing stores, and other retail outlets throughout the country.

4. Telecommunications - The telecommunications sector is dominated by three major players - MTN, Vodacom, and Cell C. These companies provide mobile phone and internet services to millions of customers in South Africa.

Overall, these and other businesses in South Africa compete vigorously for market share in their respective sectors, contributing to the country's economy and growth.

for more such questions on  manufacturing

https://brainly.com/question/1082619

#SPJ11

Your firm has a price of $10, an average total cost of $12, and an average variable cost of $9. In the short run, you should (1) _____ because (2) _____ exceeds (3) _____.

Answers

1. In the short run, your firm should continue to operate and produce in the short run despite making a loss.

2. The price of $10 is less than the average total cost of production of $12.

3. The price of $10 is more than the average variable cost of production of $9.

What is average?

In mathematics, the average is a value that represents a set of data or a group of numbers. It is also referred to as the mean.

In the short run, a firm should continue to operate and produce as long as the price is greater than the average variable cost of production. This is because, in the short run, the firm can only change the quantity of variable inputs (such as labor and raw materials) but not the quantity of fixed inputs (such as machinery and buildings). Therefore, the firm should continue to operate in the short run as long as it is covering its variable costs and contributing towards the fixed costs.

In this case, the price of $10 is less than the average total cost of production of $12. This means that the firm is making a loss in the short run. However, the price of $10 is more than the average variable cost of production of $9. This means that the firm is covering its variable costs, but not its fixed costs.

Therefore, in the short run, the firm should continue to operate and produce despite making a loss. This is because the firm is at least covering its variable costs and contributing towards its fixed costs. However, in the long run, the firm should consider whether it can reduce its fixed costs or increase its price to cover both variable and fixed costs, otherwise it may need to shut down operations if it cannot cover its costs.

To learn more about average visit :

https://brainly.com/question/130657

#SPJ1

the past five montly returns for kohl's are 3.72 percent, 4.07 percent, -1.86 percent, 9.34 percent, and -2.74 percent. compute the standard deviation of khol's monthly returns

Answers

The standard deviation of Kohl's monthly returns is approximately 4.307 percent.

To compute the standard deviation of Kohl's monthly returns, follow these steps:

1. Calculate the mean (average) of the returns:
(3.72 + 4.07 + -1.86 + 9.34 + -2.74) / 5 = 12.53 / 5 = 2.506

2. Find the differences between each return and the mean, then square them:
(3.72 - 2.506)^2 = 1.469104
(4.07 - 2.506)^2 = 2.451616
(-1.86 - 2.506)^2 = 19.151296
(9.34 - 2.506)^2 = 46.501984
(-2.74 - 2.506)^2 = 23.189104

3. Calculate the mean of the squared differences:
(1.469104 + 2.451616 + 19.151296 + 46.501984 + 23.189104) / 5 = 92.763104 / 5 = 18.552621

4. Take the square root of the mean of the squared differences to get the standard deviation:
√18.552621 ≈ 4.307

So, the standard deviation of Kohl's monthly returns is approximately 4.307 percent.

Learn more about deviation here:

https://brainly.com/question/23907081

#SPJ11

Suppose an industry consists of 100 firms with identical cost structures (represented by the "typical individual firm" in the figure below). The price is $18.
The firm output quantity at the equilibrium price is ____ units
The market output quantity at the equilibrium price is ____ units.
24 +/- 2%
2400 +/- 2%

Answers

The firm output quantity at the equilibrium price is "24" units (± 2%), and the market output quantity at the equilibrium price is "2400" units (± 2%).

To answer your question, we need to first determine the firm output quantity at the equilibrium price of $18.

1. Locate the point on the "typical individual firm" cost curve where the price ($18) intersects the curve.
2. At this point, find the corresponding output quantity on the horizontal axis. This is the firm output quantity at the equilibrium price.

The firm output quantity at the equilibrium price is 24 units (± 2%).
Now, let's find the market output quantity at the equilibrium price:

1. Since there are 100 firms with identical cost structures, we can multiply the firm output quantity by the number of firms in the industry.
2. Market output quantity = (Firm output quantity) × (Number of firms) = 24 units × 100 firms

The market output quantity at the equilibrium price is 2400 units (± 2%).

For more such questions on output

brainly.com/question/30112570

#SPJ11

if the price elasticity of demand for apples is greater than 1, an increase in apple prices will

Answers

If the price elasticity of demand for apples is greater than 1, an increase in apple prices will result in a decrease in the quantity demanded of apples.

Price elasticity of demand examines just how much a product's consumption changes in relation to price fluctuations. Mathematically, the situation is as follows:

Price Elasticity of Demand is calculated as Price Change % Change in Demanded Quantity.

This means that consumers are very sensitive to changes in the price of apples, and a small increase in price will lead to a significant decrease in the amount of apples they are willing to buy. Therefore, price elasticity of  demand for apples is considered to be elastic.

learn more about price elasticity here:

https://brainly.com/question/13565779

#SPJ11

Hi! If the price elasticity of demand for apples is greater than 1, it indicates that the demand for apples is elastic. In this case, an increase in apple prices will lead to a proportionately larger decrease in the quantity demanded for apples. This is because consumers are more sensitive to price changes when the demand is elastic.

If the price elasticity of demand for apples is greater than 1, it means that a small increase in the price of apples will lead to a relatively larger decrease in the quantity demanded of apples. Therefore, an increase in apple prices will result in a decrease in the demand for apples. This is because consumers will find it relatively easy to substitute apples with other fruits or products, which means they will be less willing to pay a higher price for apples.

LEARN MORE ABOUT demand HERE:

https://brainly.com/question/29703449

#SPJ11

Other Questions
what concentration of kmno4 is required to establish a concentration of 2.0108 m for the ba2 ion in solution? discuss what an organization should consider before making a decision to purchase data mining software. Under what conditions may a Member reopen a case created in the IPPS-A Help Center? a guitarist sounds a tuner at 195 hz while his guitar sounds a frequency of 194 hz. find the beat frequency (in hz). If the expected default rate on a particular mortgagebacked security is 4 percent per year, and the corresponding Treasury security carries a 3 percent annual interest rate, what should be the interest rate on the mortgage-backed security? What happens if the expected default rate rises to 8 percent? bones loss is a calium deficiency diseas simila to iron deficiency anemia true or false If a large number of diverse securities are added to a portfolio comprised of three stocks, then the:weighted average of the APT factor betas goes to zero.weighted average expected return goes to zero.return on the portfolio will equal the risk-free rate.weighted average of the unsystematic risk goes to zero.return of the portfolio goes to zero. Determine the force in each member of the loaded truss. Explain why knowledge of the lengths of the members is unnecessary. 3720 lb 52, Answers: AB lb AC lb lb Graph the line that has a slope of 7 and includes the point (0,0). With the help of Scripps Whittier Diabetes Institute there have been blank clinics opens in Latino communities to address health issues related to diabetes.a. 12b. 7c. 10d. 2 deffindRunBits. El M. Returns the number of bits to use for compressing string s. Assume s is a nonempty string. Specifically, returns n where n is the log of the average run length, but at most 7, as described at the beginning of this file. The maximum n is 7 because only three bits are available for it (the bbb in the compressed format). return None # TO DO # My solution is four lines of code, no recursion, but using the # built-in sum, min, and len functions as well as log and ceiling, draw a formula for the lowest molecular weight compound that contains c, h, and possibly o, n or s, is a chiral compound, contains ONLY one functional group, and is a nitrile.Use the wedge/hash bond tools to indicate stereochemistry.Include H atoms at chiral centers only.If a group is achiral, do not use wedged or hashed bonds on it.Alkene or alkyne groups are considered to be functional groups. Calculate the ph when 56.0 ml of 0.250 m HCl is mixed with 40.0 ml of 0.150 m Ca(OH) How does the portrayal of the Jews similarly to one another play into the Nazi hands from the book night by Elie Wiesel calculate the equilibrium concentrations of all species when 15.0 ml of 0.100 m agno3 is mixed with 5.00 ml of 0.200 m nh3. the kf of [ag(nh3)2] is 1.7x107 . what force, in newtons, must be supplied by the elevator's cable to produce an acceleration of 0.805 m/s2 upwards against a 175-n frictional force? With the ECB mode, if there is an error in a block of the transmitted ciphertext, only the corresponding plaintext block is affected. However, in the CBC mode, this error propagates. For example, an error in the transmitted C1 obviously corrupts P1 and P2.suppose that there is a bit error in the source version of p_1. through how many ciphertext blocks is this error propagated? what is the effect at the receiver? a bar magnet with north pole facing down falls through a coil from rest. how does the induced current behave during this process? Critical performance goals for KPIs and BRs require greater improvement than stretch performance goals T or F SimplifyWrite your answer with positive exponents only.