A thorough software program called a bug tracking software, often known as a defect tracker, maintains track of reported software bugs.
What exactly is a bug tracking program?Software used by quality assurance (QA) and software development teams to submit software bugs and issues is known as bug tracking software, sometimes known as issue tracking software. An effective bug tracking system is necessary for software development.
What is the price of bug tracking software?You may already be paying for issue tracking if you already have workflow, ALM, or project management software. Alternatives include a number of open-source and cost-free choices. Paid choices range in cost, but often cost $50 or less per month.
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A stable share price along with a fluctuating dividend based on market conditions is associated with.
Adjustable-rate preferred stock is characterised by a steady share price and a variable dividend dependent on market conditions.
What is the share price right now?It is the latest trading price for a single share or any other security. The present price serves as a starting point in an open market. It price that a buyer and seller would've been willing to pay for a later transaction involving that security.
How do I buy stocks?Using an online stockbroker is the easiest way to purchase stocks. You may quickly purchase stocks on the broker's website after creating and financing your account. Other choices include buying shares directly from the business or utilizing a full-service broker.
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If country A can produce both goods X and Y more efficiently, that is, with smaller absolute amounts of resources, than can country B:
A. then there is no possible basis for mutually advantageous specialization and trade between A and B.
B. we can conclude that A is an industrially advanced economy and B is a developing economy.
C. mutually advantageous specialization and trade between A and B may still be possible.
D. it will necessarily be advantageous for B to import both X and Y from A.
Country B can mutually advantageous specialization and trade between A and B may still be possible. Even though country A may be able to produce both goods X and Y more efficiently than country B, this does not mean that it is not possible for both countries to benefit from specialization and trade.
Country A may specialize in producing one good, while Country B specializes in producing the other. This allows both countries to benefit from economies of scale and to produce more of each good than either country could produce on its own. This mutually advantageous specialization and trade may be beneficial to both countries.
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Your company is trying to decide whether to proceed with a potential project. The project has a 62% chance of producing a $100,000 profit and a 38% chance of causing a $100,000 loss. Calculate the expected monetary value (EMV) for the project Answer (show all work): a) EMV for project is:
At Potential Project, we are on a mission to make work feel more human. In this new world of work, people are focused, calm and resilient, even happy at work.
How to Choose the Right Project?Because, as demonstrated in the lectures for the PMP certification program, the primary cause is due to the project's schedule and financial restrictions. Of course, any project will be expensive to complete. However, even if the budgetary restriction is removed, other factors like market competitiveness will prevent the completion of several projects.
The various project selection techniques will be discussed in this article along with the ideal times to employ each technique. The PMP training contains more thorough information on project selection.
Project managers' responsibilities include understanding why their project was chosen and how it fits into the organization's strategic goal. Due to the fact that during the project planning process.
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The cost of merchandise sold during the year was $54,000. Merchandise inventories were $10,500 and $12,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $9,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total
The cash payments for merchandise total using the direct method of reporting cash flows from operating activities is $49,000.
How do you determine the cash payments for merchandise?To determine the cash payments for merchandise using the direct method of reporting cash flows from operating activities, you can use the following formula:
Cash payments for merchandise = Cost of merchandise sold - (Ending inventory - Beginning inventory) - (Ending accounts payable - Beginning accounts payable)
Plugging in the given values, you get:
Cash payments for merchandise = $54,000 - ($12,500 - $10,500) - ($9,000 - $6,000)
= $54,000 - $2,000 - $3,000
= $49,000
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suppose canada and china can both produce cars and airplanes, and canada has a comparative advantage in the production of airplanes while china has a comparative advantage in the production of cars. also, suppose china has an absolute advantage in the production of both cars and airplanes. if so, china should
Consider as well that China has a clear advantage in the manufacture of both cars and airplanes. China should import aircraft from Canada and export automobiles to that country.
What is production and example?It refers specifically to the a production process or its result in its most basic form. Producers are organizations that create products and services, according to economists. These businesses produce goods that they market to clients. These businesses produce goods that they market to consumers. For instance, a clothing company produces clothing for clients. Producing something involves assembling it from components or raw resources. In other words, manufacturing uses inputs to create an output that is suitable for consumption—a goods or product with value for a consumer or end-user.
Why is production important?Economic theory heavily emphasizes the role of production. Due to the application of work to land, it generates value for the economy. Through the availability of goods and services, which translates to increased utility, production also raises the level of living and increases quality of life. The resources that make up the economy's foundation and are used as production factors by individuals to create commodities and services Land, labor, capital, & entrepreneurialism make up the four groups of components of production which economists differentiate.
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The __________ refers to the tendency to disregard outward signs of success and to consider yourself a fake, a fraud, one who does not really deserve to be considered successful.O hidden selfO Johari windowO Pygmalion effectO impostor phenomenonAnswer: impostor phenomenon
The impostor phenomenon describes the propensity to discount outside indications of achievement and to think of oneself as a charlatan who doesn't truly deserve to be regarded as successful.
What causes imposter phenomenon?Perfectionism and other personality traits, as well as a person's upbringing, are likely contributing factors to imposter syndrome. One hypothesis holds that families that place a high value on achievement are the root causes of imposter syndrome.Self-doubt and a sense of personal incompetence persist despite your education, experience, and accomplishments. This is known as imposter syndrome, also known as perceived fraudulence. You might end up pushing yourself to work harder and hold yourself to higher standards in an effort to combat these feelings.The impostor phenomenon is a widespread psychological perception of perceived intellectual and professional fraudulence. Although present in clinical and healthy populations, it cannot yet be diagnosed. Impostors research is becoming more prevalent in situations more than just clinical ones.To Learn more About impostor phenomenon refer to:
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Communicating Effectively
Posttest
You work as an administrative assistant in an engineering firm. A co-worker constantly makes fun of the
engineers by whispering comments to you about the engineers' appearance and behavior.
Read the following possible courses of action and decide which is the BEST way to handle the situation
and which is the WORST way to handle the situation.
1. Make fun of the co-worker behind his back to get back at him.
2. Avoid the co-worker and suggest others do the same until he stops making comments.
3. Tell the engineers exactly what the co-worker says about them.
4. Confront the co-worker and tell him to stop making fun of the other people.
Which is the BEST way to handle the situation?
Option 1
Option 2
Option 3
Option 4
>
Which is the WORST way to handle the situation?
Option 1
Option 2
Option 3
Option 4
The Best way to handle the situation or communicate effectively the problem is Confront the co-worker and tell him to stop making fun of the other people. The Worst way to handle the situation is Avoid the co-worker and suggest others do the same until he stops making comments.
Thus, the best way is option 4 and worst way is option 2.
What is effective communication?The process of exchanging ideas, opinions, knowledge, and facts in order to ensure that the message is received and understood with clarity and purpose is known as effective communication. The sender and the receiver are both delighted when we communicate successfully.
You work as an administrative assistant in an engineering firm. A co-worker constantly makes fun of the engineers by whispering comments to you about the engineers' appearance and behavior. Confronting the the co-worker and telling him to stop making fun of the other people is the effective communication for the situation and avoiding the co-worker and suggest others do the same until he stops making comments is the worst way to deal with the situation
Therefore, Option 4 and 2 are the correct answers.
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a recent ad for a new dish soap emphasized the product's superior cleaning power as the main reason to buy the product. this represents the ad's .
This sums up the commercial appeal, subliminal signaling, messaging, benefit, and executional style of the advertisement.
Why are advertisements important?Advertisements, often known as advertisements or adverts, exist in a variety of formats, from copy to interactive video, and have developed into an essential component of the app store.
Reaching an audience is assured with advertisements. Advertisements can have a direct impact on business by being compelling and spending enough to reach your target audience. Among many other indicators, this effect may be evident in increased brand recognition or improved commerce. A KPI is frequently used in advertising strategies to gauge this effect.
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Product line pricing is the practice of marketing merchandise at variable prices negotiated between buyer and seller.False
The sale price will eventually be established as a result of negotiations between customers desiring things and sellers providing products.
What best determined someone who is resolute?What drives someone to be determined? To be determined is to make a solid decision to do something, particularly in connection to goals. People that are determined are frequently highly motivated and laser-focused on their goals. Despite any obstacles or difficulties, they keep a resilient attitude and persevere to succeed.
What is a determined example?He is adamant on keeping me. I was only more adamant as a result. Rhyn anticipated it and prepared to battle like he always had. I was adamant that I would know beans.
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True or False: an advertising campaign is a series of different and unrelated ads that use multiple themes and appear in different media over a long period of time.
It is false that an advertising campaign is a series of distinct and independent advertisements that use multiple themes and appear in various media over time.
What is the advertising campaign process?Step 1: Determine your goals and budget. Step 2: Identify your target audience. Step 3: Compose your message. Step 4: Develop a media strategy. Step 5: Conduct marketing campaigns.
What makes a good advertising campaign?The best advertising campaigns are often those that clearly communicate your brand equity to your audience, either intrinsically or externally. People don't want to work hard to understand what you're trying to convey. So be sure to communicate your message clearly and avoid confusion.
What are types of advertising campaigns?The type of advertising allows marketers to create campaigns that are relevant to the right people. Example: Display ads. Video ads. Mobile advertising. Native advertising. People who are interested in sports are very likely to be interested in sports apparel, so a sports apparel manufacturer can increase sales by advertising on sports blogs.
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Lack of operational power, high fees, low percentage of reservations from the central reservation system are all ______ of franchising
A. benefits
B. Drawbacks
C. Trends
D. Bonuses
Lack of operational power, high fees, and low percentage of reservations from the central reservation system are all Drawbacks of franchising.
The Department of Defense defines operational energy as the energy required to train, move, and sustain troops and weapons platforms for military operations. The term includes energy used by tactical power systems, generators, and weapons platforms.
Operating energy is the energy required throughout the life of a structure, such as lighting, heating, cooling, and ventilation. and operate household appliances.
Operations management includes security monitoring, coordination of generation and transmission resources, coordination and approval of transmission state changes for maintenance, determination of transmission state changes for reliability, coordination with other equilibrium groups, and the Reliability Coordinator.
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A backward pass through a network is used to determine the earliest start and finish times for each project activity. t/f
This claim is untrue. The earliest start and finish times for each project activity are determined without performing a backward transit over the network.
How are the early start and early end times decided upon?In other words, the Early Start (ES) position of the first activity is set to zero when the calculation begins. To do the remaining calculations, apply the following formulas: Highest (or Maximum) EF value from the most recent Predecessor equals an early start (s) ES plus Duration equals an early finish.
What do the terms "early start" and "early end" in project management mean?Early Start: When an activity can start as soon as possible. The earliest time a particular activity can finish. The latest time that a task can start. the earliest time a particular activity can finish.
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a vehicle that is offered on the current u.s. market with both a gasoline engine and a gasoline hybrid engine
Plug-in hybrid electric vehicles (PHEVs) are a combination of gasoline and electric cars.
What vehicles use both gas and electricity?Plug-in hybrid electric cars combine a gasoline engine and a battery-powered electric motor that can be recharged while plugged in. They allow you to drive as far as you want while still providing all-electric power for short trips.
Exists a vehicle that can run on both gas and electricity?A battery, an electric motor, a gasoline tank, and an internal combustion engine are all components of plug-in hybrid electric vehicles (PHEVs), which combine gasoline and electricity. PHEVs burn both gasoline and electricity as fuel.
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Which of the following is NOT a tool the Fed uses to manage the money supply?
A) open market operations
B) discount policy
C) deposit insurance
D) reserve requirements
Deposit Insurance is not a tool the Fed uses to manage the money supply. Deposit Insurance is a system in which the government insures deposits made in banks and other financial institutions up to a certain amount. The purpose of this insurance is to protect depositors from losses if the bank fails. This is an important benefit to consumers, as it provides them with some financial security in the event of a bank failure.
The Fed does not directly manage Deposit Insurance. This is the responsibility of the Federal Deposit Insurance Corporation (FDIC). The FDIC is an independent agency of the federal government that is responsible for insuring the deposits of banks and other financial institutions up to a certain amount. It is also responsible for examining and supervising banks and other financial institutions to ensure they are operating safely and soundly.
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According to the bond-yield-plus-risk-premium approach, a firm's cost of retained eamings, rs, can be estimated by adding a risk premium of 3 to 5 percentage points toa. its after-tax interest cost of debt, rsTb. its cost of preferred stock, rpsC. its return on equity (ROE)d. the risk free rate of return.e. its before-tax interest cost of debt, rs.
According to the bond-yield-plus-risk-premium approach, a firm's cost of retained earnings, rs, can be estimated by adding a risk premium of 3 to 5 percentage points to its before-tax interest cost of debt, Rs.
The bond-yield plus risk premium method makes it possible to figure out how much equity capital will cost. By adding the pre-tax cost of debt and the risk premium, which accounts for the higher yield on a company's stock when compared to its bonds, it calculates the cost of common equity. This can be used in place of the CAPM in real-world applications.
The Dividend Discount Model, Capital Asset Pricing Model, and Cost of Equity are some further related topics that you could find interesting to investigate.
Anyone who aspires to work as a banker, investment professional, corporate finance practitioner, or portfolio manager would find this open-access Excel template in XLSX format helpful.
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nathan noticed that a company that has great potential just declared a because its stock price was getting too high for the small investor to buy the stock. the company will substitute more shares for the existing shares of stock without increasing the market value of the firm. group of answer choices claim on income stock repurchase stock split dividend yield
The organization will replacement extra stocks for the prevailing stocks of inventory with out growing the marketplace price of the firm stock split.
The required details about stock split is mentioned in below paragraph.
A stock split up takes place whilst a organization will increase the range of its stocks to reinforce the inventory's liquidity. Although the range of stocks extraordinary will increase via way of means of a particular multiple, the whole greenback price of all stocks extraordinary stays the equal due to the fact a cut up does now no longer essentially alternate the organization's price. The maximum not unusualplace stock split ratios are 2-for-1 or 3-for-1 (on occasion denoted as 2:1 or 3:1). This approach for each percentage held earlier than the cut up, every stockholder may have or 3 stocks, respectively, after the cut up.
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Of the options listed below, which are examples of diversifiable risk? I. Wildfires damage an entire town II. The federal government imposes a $1,000 fee on all business entities III. Payroll taxes are increased nationally IV. All software providers are required to improve their privacy standards Multiple Choice o I and IV only o II and III only o I and III only o I, III, and IV only o II and IV only
A. I and IV only. I. Wildfires damage an entire town. IV. All software providers are required to improve their privacy standards.
What are diversifiable risks?
The chance of losing money on investment because of a company- or industry-specific hazard is known as a particular risk or diversifiable risk. Unlike systematic risk, unsystematic risk can only be reduced via diversification for an investor. By making investments in a variety of assets, an investor uses diversification to reduce risk. The risk that is unique to a corporation is referred to as unsystematic risk (also known as diversifiable risk). This kind of risk could be brought on by spectacular occurrences like a strike, natural disasters like fires, or even something as simple as declining sales. Business risk and financial risk are two typical types of unsystematic risk.
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for a certain firm, the 100th unit of output that the firm produces has marginal revenue of $10 and a marginal cost of $11. it follows that the
It follows that the firm should not produce the 100th unit of output because the marginal cost is greater than the marginal revenue. Marginal revenue is the increase in total revenue when one additional unit is produced and sold.
Marginal cost is the increase in total cost when one additional unit is produced. In this example, the marginal cost of producing the 100th unit of output is greater than the marginal revenue, meaning that the firm would lose money if they produced and sold the unit. The firm should instead find ways to reduce their marginal cost in order to make the production and sale of the 100th unit of output worthwhile.
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A service provider and the service provided are ____________________, so the quality perceptions of the service depend on the perceptions of the provider.
Complete the statement: A service provider and the service provided are interdependent, so the quality perceptions of the service depend on the perceptions of the provider.
The Interdependence of Service Providers and Quality ServiceA service provider and the service provided are interdependent, meaning that they are mutually dependent on each other. The service provider's attitude and performance directly reflect the quality of the service provided, so it is important for the provider to be knowledgeable, courteous, and attentive to the needs of their customers.
Customers' perceptions of the service are largely based on their interactions with the provider, and so it is important for the provider to make sure that they are providing an excellent customer experience. The quality of the service provided is ultimately determined by the service provider, as they are the ones creating the customer experience.
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if the price of a good decreases, the marginal utility per dollar spent and consumers buy of the good.
If the price of a good decreases, the marginal utility per dollar spent and consumers buy of the good then it is diminishing marginal utility.
What does the marginal utility equation mean?According to the general principle of economics, marginal utility is determined by dividing the overall change in utility by the change in the quantity of commodities. The equation reads as follows: Total utility difference / difference in the amount of commodities equals marginal utility.
Comparing marginal utility and utilityUtility is the pleasure a person experiences after consuming a good or service. The entire satisfaction from consuming a certain amount of a good or service is known as its total utility, whereas the satisfaction from consuming an extra amount of that same commodity or service is known as its marginal utility.
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The percentage of retired older workers has increased dramatically since the introduction of Social Security.A. TrueB. FalseC. Uncertain
The statement is true : The percentage of retired older workers has increased dramatically since the introduction of Social Security.
Long-term funding issues are present for Social Security. Many young employees think the situation is so bad that they might never get a Social Security check. The reasonable answer to Social Security's funding issue is to reduce projected benefits and moderately raise payroll taxes. Raising the early qualifying age and regular retirement age for retirement pensions is a logical method to cut future payments.
The significant increase in life expectancy since Social Security's inception in the 1930s serves as justification for this revision. When the average retirement age stays the same, a rise in life expectancy corresponds to a significant increase in lifetime Social Security benefits.
Voters are against raising the retirement age. Unfortunately, this is true of any other changes that would improve Social Security's financial stability, such as tax increases and changes to the formula used to determine full payments.
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The going concern assumption assumes that the business
a. will be liquidated in the near future.
b. will be purchased by another business.
c. is in a growth industry.
d. will remain in operation for the foreseeable future.
The going concern assumption assumes that the business will remain in operation for the foreseeable future.
What is the going concern assumption?A company is referred to as a "going concern" in accounting if it is anticipated that it will continue to operate for at least the following 12 months. It is based on the supposition that the company can make money, pay its debts, and won't need to liquidate in the upcoming year.An entity is considered to be continuing in business for the foreseeable future under the going-concern assumption. A going-concern basis is used to compile general purpose financial statements unless management has no choice but to do so or has plans to stop operations entirely.To learn more about going concern refer,
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True or false: When banks loan out some of their excess reserves, the monetary base increases by the amount of the loan. Explain your answer. 5 points. 2
True The monetary base is increased by the loan amount when banks lend out a portion of their excess reserves.
How can I quickly obtain a loan?You can apply for a personal loan online by contacting a bank or financial institution directly through their website to find out if you qualify, as well as to find out the interest rate and monthly payment. The money will be transferred to your checking account right away if the loan is granted.
Which banks easily provide loans?The finest banks in India for personal loans include HDFC, Hdfc, Bajaj FInancial sector, Tata Bank, and Kotak Mahindra.
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Equal opportunity laws
regulate employee rights to a safe work environment and reasonable minimum wage
regulate employee rights to medical services and compensation resulting from job-related injuries
require employers and employees to contribute to the Social Security fund
require employers to disregard gender, race, and ethnicity during the hiring process
Equal opportunity laws regulate employee rights to a safe work environment and reasonable minimum wage.
What is Equal opportunity laws?
Laws governing equal employment opportunities (EEO) forbid some forms of job discrimination in particular workplaces. The Civil Rights Center and the Office of Federal Contract Compliance Programs are two U.S. Department of Labor (DOL) organizations that deal with EEO monitoring and enforcement.
EEO is monitored in programs and initiatives receiving federal funding by the Civil Rights Center. Equal opportunity is likewise guaranteed by CRC for all DOL candidates and employees.
Employers with federal contracts and subcontracts are regulated by the Office of Federal Contract Compliance Programs.
The Equal Employment Opportunity Commission (EEOC) is an independent federal organization that works to advance equal opportunity in the workplace by enforcing federal civil rights laws administratively and legally, as well as by providing information and technical support.
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if the entrepreneur fails to pay the loan, that collateral is given up or surrendered to satisfy payment of the debt.
The statement " if the entrepreneur fails to pay the loan, that collateral is given up or surrendered to satisfy payment of the debt." is true.
Give a brief account on collateral.Often, the sort of loan will predetermine the kind of collateral. Your home becomes the security for a mortgage when you apply. When you take out a car loan, the vehicle serves as collateral. Cars, provided they are fully paid off, bank savings deposits, and investment accounts are among the main forms of collateral that lenders accept. Retirement savings are rarely accepted as security.
Not only from payday lenders, but for other types of extremely short-term loans as well. Such loans are provided by conventional banks; the periods are often no more than a few weeks. Even in cases of true emergencies, you should carefully read the tiny print and compare rates. These short-term loans are an option.
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rolf, a citizen of new mexico, wants to file a suit against sandy, a citizen of texas. their diversity of citizenship may be a basis for
Rolf, a resident of New Mexico, intends to sue sandy, a resident of Texas. Because of their diversity of citizenship, a federal court might be able to exercise original jurisdiction over them.
What type of jurisdiction does the federal court exercise?Cases involving the United States government, the Constitution or federal statutes, including disputes between states or between the U.S. government and foreign governments, fall under the purview of federal courts.
In common law legal systems, a court's original jurisdiction is its authority to hear a case for the first time, as opposed to an appellate court's authority to review a lower court's ruling.
District courts, which are the trial court, circuit courts, which are the first level of appeal, and the Supreme Court of the United States, which is the ultimate level of appeal in the federal system, are the three primary levels of the federal court system.
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Complete Question:
Rolf, a citizen of New Mexico, wants to file a suit against Sandy, a citizen of Texas, relating to a motorcycle accident in which Rolf's injuries resulted in medical costs of more than $75,000. Their diversity of citizenship may be a basis for
attacks require adversaries to send packets to a known service on the intermediary with a spoofed source address of the actual target system whereas
In reflection attacks require adversaries to send packets to a known service on the intermediary with a spoofed source address of the actual target system.
What in marketing terms is a direct attack?a frontal assault
This is a frontal assault that draws on the strength of the opponents. Typically, the attack is carried out by providing clients with reduced prices, better products, aggressive advertising, or improved service quality. This kind of attack is dangerous because losing will harm your business's reputation, clients, and sales.
How does reflection attack work?In a reflection attack, the attacker sends a request for information, typically using the User Datagram Protocol (UDP) or, in some cases, the Transmission Control Protocol, while impersonating the target's IP address (TCP). The server then replies to the request by delivering a response to the IP address of the destination.
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aggregate information as part of an analytics package may include the total number of visits but not the total revenue the total revenue but not the total number of visits the total number of visits and the total revenue none of the above
An aggregate information as part of an analytics package may include the total number of visits and the total revenue.
Thus, the correct option is C.
What is total revenue?In other words, businesses utilize this statistic to assess how effectively their primary sources of revenue are generating profits.
Total revenue is directly correlated with marginal revenue.
An indefinitely elastic demand curve is presented to a corporation that is perfectly competitive. In other words, the market price is the only price at which it may be sold.
At any lower price, it could sell the same quantity at the going rate and yet make more money, whereas at any higher price, nobody would purchase any quantity.
The market price multiplied by the amount that the business decides to manufacture and sell equals total revenue.
Total revenue is the amount of money generated by a company's sales of goods and services.
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a new employee has been hired for the customer service department and will be using a desktop computer in the office, along with the company intranet. which of the following policies would be most applicable to this user? remote access policy acceptable use policy byod privileged user policy
A network or other resource users must abide by in order to utilize it is covered by an acceptable use policy. Learn about the nine components that make up AUPs.
What is an illustration of a permissible use policy?The IT security policies of a business are governed by an AUP. These include prohibitions on utilizing public Wi-Fi, reading dubious email attachments, updating access data, such as passwords, accessing restricted information, and using authentication methods that have been approved by the firm.
What constitutes a lawful policy?An agreement between two or more parties that specifies the permitted use of access to a corporate network or the internet is known as an acceptable use policy, or AUP. is permitted and prohibited by this document is described.
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Keep-Or-Drop Decision, Alternatives, Relevant Costs
Reshier Company makes three types of rug shampooers. Model 1 is the basic model rented through hardware stores and supermarkets. Model 2 is a more advanced model with both dry-and wet-vacuuming capabilities. Model 3 is the heavy-duty riding shampooer sold to hotels and convention centers. A segmented income statement is shown below.Model 1 Model 2 Model 3 Total
Sales $270,000 $598,000 $606,500 $1,474,500 Less variable costs of goods sold (89,500) (163,640) (352,800) (605,940) Less commissions (6,000) (27,500) (20,250) (53,750) Contribution margin $174,500 $406,860 $233,450 $814,810 Less common fixed expenses: Fixed factory overhead (410,000) Fixed selling and administrative (299,000) Operating income $105,810 While all models have positive contribution margins, Reshier Company is concerned because operating income is less than 10 percent of sales and is low for this type of company. The company’s controller gathered additional information on fixed costs to see why they were so high. The following information on activities and drivers was gathered:
Driver Usage by Model
Activity Activity Cost Activity Driver Model 1 Model 2 Model 3
Engineering $76,000 Engineering hours 710 71 219 Setting up 177,000 Setup hours 12,300 12,700 29,219 Customer service 112,000 Service calls 14,300 1,580 19,219 In addition, Model 1 requires the rental of specialized equipment costing $25,000 per year.
1. Reformulate the segmented income statement using the additional information on activities. Use a minus sign to indicate any negative margins. Do NOT round interim calculations and, if required, round your answer to the nearest dollar.
Reshier Company
Segmented Income Statement
Model 1
Model 2
Model 3
Total
$
$
$
$
Contribution margin
$
$
$
$
Less traceable fixed expenses:
Product margin
$
$
$
$
Less common fixed expenses:
Operating income
$
The amount that has been added to the dropping model is $31,547.
Here we have given that Reshier Company makes three types of rug shampooers.
And we need to find the amount added to the dropping model.
While we are looking into the given question, we have identified the value of each of the department expenses as,
=> Engineering rate = $86,000 ÷ (730 + 76+ 194) = $86
=> Setting up = $196,000 ÷ (12,100+ 13,200 + 29,179) = $3.5977
=> Customer Service = $100,000 ÷ (13,400 + 1,480+ 19,179) = $2.9360
=> Fixed factory overhead = $385,000 - 86,000-195,999 - 22,000 = $81,001
=> Selling and administrative expenses= $307,000 - 99,997 = $207,003
Now, we have to reformulated income statement suggests that the profit of model 1 is negative, then the company can choose either model 2 or 3. Therefore, the product margin of model 2 is maximum, choosing model 2 will be more cost effective,
Then the Dropping model 1 will add $31,547 to the operating income.
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