Answer:
Napoleon once ordered his men on a near suicidal charge against the Austrians and they did exactly what he told them to because they were so inspired by him. This inspiration came from the fact that even though he was their commander, he was on the front lines with them and personally overseeing the artillery bombardment of the enemy.
This is the kind of effect that the business leader staying in the middle of the work area can have. The leader would be amongst their subordinates and by working hard, could inspire them to work hard themselves. This would increase the respect that the employees have of the leader and by extension, the leader's power over them.
Should the leader turn out to be lazy however, an opposite situation could result where the leader's power is diminished as their laziness would be on full display for the workers. who would then lose respect for the leader.
Fowler, Inc., just paid a dividend of $2.55 per share on its stock. The dividends are expected to grow at a constant rate of 3.9 percent per year, indefinitely. If investors require a return of 10.4 percent on this stock, what is the current price? What will the price be in three years? In 15 years?
Answer:
Use the Gordon Growth formula for this.
The price of a stock in the current year is:
= (Dividends in current year * (1 + growth rate) ) / (Required return - growth rate)
Current price
= (2.55 * ( 1 + 3.9%) ) / (10.4% - 3.9%)
= $40.76
In 3 years:
= (2.55 * ( 1 + 3.9%)⁴ ) / (10.4% - 3.9%)
= $45.72
In 15 years:
= (2.55 * ( 1 + 3.9%)¹⁶ ) / (10.4% - 3.9%)
= $72.36
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly:
Costs Square Feet Number of Employees
Janitorial Department $450,000Â Â 100Â Â Â Â Â Â 20Â Â Â Â Â Â Â
Cafeteria Department 200,000Â Â 10,000Â Â Â Â Â Â 10Â Â Â Â Â Â Â
Cutting Department 1,500,000Â Â 2,000Â Â Â Â Â Â 60Â Â Â Â Â Â Â
Assembly Department 3,000,000Â Â 8,000Â Â Â Â Â Â 20Â Â Â Â Â Â
The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is: _________
a. 75%
b. 18.2%
c. 22.2%
d. 25%
Answer:
Pone Hill Company
The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is: _________
d. 25%
Explanation:
a) Data and Calculations:
Costs Square Feet Number of Employees
Janitorial Department $450,000 100 20
Cafeteria Department 200,000 10,000 10
Cutting Department 1,500,000 2,000 60
Assembly Department 3,000,000 8,000 20
Janitorial departments costs = square footage service
Cafeteria department costs = number of employees
Cost Allocation:
Janitorial Cafeteria Cutting Assembly Total
Direct costs $450,000 $200,000 $1,500,000 $3,000,000 $5,150,000
Janitorial (450,000) 225,000 45,000 180,000 0
Cafeteria (425,000) 318,750 106,250 0
Total allocated costs $1,863,750 $3,286,250 $5,150,000
Allocation of costs:
Janitorial:
Cafeteria = $225,000 ($450,000 * 10,000/20,000)
Cutting = $45,000 ($450,000 * 2,000/20,000)
Assembly = $180,000 ($450,000 * 8,000/20,000)
Cafeteria:
Cutting = $318,750 ($425,000 * 60/80)
Assembly = $106,250 ($425,000 * 20/80)
Percentage usage of the Cafeteria Department by the Assembly = 25% ($106,250/$318,750 * 100)
Lucy has been the sole shareholder of a calendar year S corporation since 1980. At the end of 2011, Lucy's stock basis is $23,500, and she receives a distribution of $25,000. Corporate level accounts are computed as follows.
AAA 7,000
PTI 11,000
Accumulated E&P 600
How much capital gain, if any, will Lucy have?
a. $600
b. $7,000
c. $6,400
d. $900
e. None of the above
Answer: d. $900
Explanation:
Capital gain = Total distribution - AAA as this isn't taxed - Accumulated E&P - PTI which isn't taxed either - Stock basis
Stock basis = Stock basis - AAA - PTI
= 23,500 - 7,000 - 11,000
= $5,500
Capital Gain = 25,000 - 7,000 - 600 - 11,000 - 5,500
= $900
Bach Co. had an inventory balance of $15,250 on January 1, purchased $34,000 during the accounting period, and the cost of goods sold was $28,000. What is the ending balance in the inventory account (the cost of ending inventory)
Answer:
$21,250
Explanation:
Calculation to determine the ending balance in the inventory account
Using this formula
Cost of goods sold = Opening Inventory + Purchase during the year - Ending balance of inventory
Let plug in the formula
$28,000 = $15,250 + $34,000 - Ending balance of inventory
Ending balance of inventory = $49,250 - $28,000
Ending balance of inventory = $21,250
Therefore the ending balance in the inventory account is $21,250
Work in process inventory, September 1 (2,000 units, 100% complete with respect todirect materials, 80% complete with respect to direct labor and overhead; includes$45,000 of direct material cost, $25,600 in direct labor cost, $30,720 overhead cost) $ 101,320 Units started in April 28,000 Units completed and transferred to finished goods inventory 23,000 Work in process inventory, September 30 (? units, 100% complete with respect to direct materials, 40% complete with respect to direct labor and overhead) ? Costs incurred in September Direct materials $ 375,000 Conversion $ 341,000Required:Compute each of the following, assuming Hi-Test uses the weighted-average method of process costing.(Round "Cost per EUP" to 2 decimal places.)1. The number of physical units that were transferred out and the number that are in ending work in process inventory.2&3. The number of equivalent units for materials and conversion for the month.4&5. The cost per equivalent unit of materials and conversion for the month6. The total cost of goods transferred out.7. The total cost of ending work in process inventory.
Answer:
1. Number of physical units transferred out = 23,000 units
Number of units in ending work in process = 7,000 units
2. The number of equivalent units for materials = 30,000 units
3. The number of equivalent units for conversion = 25,800 units
4. The cost per equivalent units for materials = $14.00
5. The cost per equivalent units for conversion = $15.40
6. The total cost of goods transferred out = $676,200
7. The total cost of ending work in process inventory = $141,120
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Work in process inventory,
September 1 2,000 100% 80%
Cost of beginning WIP $45,000 $56,320 $101,320
Cost during April 375,000 341,000 716,000
Total production costs $420,000 $397,320 $817,320
Units started in April 28,000
Total units in process 30,000 (2,000 + 28,000)
Units transferred out 23,000 23,000 23,000
Ending WIP, Sept. 30 7,000 7,000 (100%) 2,800 (40%)
Total equivalent units 30,000 25,800
Cost per EUP $14.00 ($420,000/30,000) $15.40 ($397,320/25,800)
Cost of goods transferred out $322,000 $354,200 $676,200
($14.00 * 23,000) ($15.40 * 23,000)
Cost of ending WIP $98,000 $43,120 $141,120
($14.00 * 7,000) ($15.40 * 2,800)
Total costs accounted for $420,000 $397,320 $817,320
Becky is a single mother of two young children who spend their days at a daycare center while Becky goes to work. The daycare center closes at 5:30. If parents do not pick up their children at or before 5:30, the daycare center charges a late fee of $5 per child for every 10 minutes the parent is late.
Due to traffic, Becky expects to be 20 minutes late to pick up her children. How much would she be willing to pay for a variable toll road that would get her to the daycare center on time?
a. any price less than $5
b. any price less than $10
c. any price less than $20 1
d. Becky would not be willing to pay out of pocket to avoid traffic.
She expects to be 20 minutes late. She has to pay $5 for every 10 minutes.
20 minutes / 10 minutes = 2
2 x $5 = $10
If she is 20 minutes late she needs to pay $20.
She would be willing to pay anything less that $10, because anything less than 10 would save her money.
Answer: b. any price less than $10
Amazon Corporation has preferred stock outstanding that pays a $11.45 annual dividend. It price is $147. What is the required rate of return (yield) on the preferred stock?
Answer:
7.79%
Explanation:
Calculation to determine the required rate of return (yield) on the preferred stock
Using this formula
Cost of preferred stock=Annual Dividend per share/Current price of preferred stock
Let plug in the formula
Cost of preferred stock=$11.45/$147
Cost of preferred stock=0.0779*100
Cost of preferred stock=7.79%
Therefore the required rate of return (yield) on the preferred stock is 7.79%
Amortization. Loan Consolidated Incorporated (LCI) is offering a special one-time package to reduce Custom Autos' outstanding bills to one easy-to-handle payment plan. LCI will pay off the current outstanding bills of $242 comma 000 for Custom Autos if Custom Autos will make an annual payment to LCI at an interest rtae of 9 % over the next 5 years. a. What are the annual payments of the loan? b. What is the amortization schedule for this loan if Custom Autos wants to pay off the loan before the loan maturity in 5 years? c. When will the balance be half paid off? d. What is the total interest expense on the loan over the 5 years?
Answer:
Please find the complete question in the attached file.
Explanation:
Use PMT for the interest amount computation
[tex]PMT(12\%, 55, 232000, 0 , 0) = \$27,894.77[/tex]
At first, the bulk of an initial premium is paid at the rate of interest, and that only the remainder of the small part is used for amortization. The very first three years schedule is shown below:
[tex]Loan\ \ \ \ \ \ \ \ \ \ Annual\ \ \ \ \ \ \ \ \ \ Interest\ \ \ \ \ \ \ \ \ \ Principal\\\\[/tex]
[tex]1\ \ \ \ \ \ \ \ \$232,000.00\ \ \ \ \ \ \ \ \$27,894.77\ \ \ \ \ \ \ \ \$27,840.00\ \ \ \ \ \ \ \ \$54.77\\\\2\ \ \ \ \ \ \ \ \$231,945.23\ \ \ \ \ \ \ \ \$27,894.77\ \ \ \ \ \ \ \ \$27,833.43\ \ \ \ \ \ \ \ \$61.34\\\\3\ \ \ \ \ \ \ \ \$231,883.89 \ \ \ \ \ \ \ \ \$27,894.77\ \ \ \ \ \ \ \ \$27,826.07\ \ \ \ \ \ \ \ \$68.70\\\\[/tex]
By the 49th payment, upwards of half of the initial amount borrowed would be the total principal paid. Using the formula CUMPRINC in excel, the entire principal payment is calculated twice.
Total Interest Expense [tex]= 27,894.77 \times 55 - 232,000 = \$1,302,212.27[/tex]
Sheffield Corp. has a materials price standard of $2.00 per pound. 4900 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 4900 pounds, although the standard quantity allowed for the output was 4000 pounds. Sheffield Corp.'s materials quantity variance is:_____.
a. $1980 U.
b. $1800 F.
c. $1800 U.
d. $1980 F.
Answer:
a. $1,980 U
Explanation:
We will compute the direct materials quantity variance using the formula below.
Direct materials quantity variance =
(Standard quantity allowed - Actual quantity of materials) × Materials price standard
Fixing in the values, we'll have;
Direct materials quantity variance
= (4,000 pounds - 4,900 pounds) × $2.20 per pound
= -900 pounds × $2.20 per pound
= -$1,980
= $1,980 U
f pressure is put on the government to maintain a balanced budget during a recession. In this scenario, government would need to _____ taxes, which would cause aggregate demand to ____. Group of answer choices
Answer:
Increase
fall
Explanation:
A recession occurs when the gross domestic product of a country for two consecutive quarters is negative.
Annually balanced budget is a budget where at the end of every year, revenue must equal expenditure.
If in a recession, a government is under pressure to maintain a balanced budget, the government would need to increase taxes. this is because income would be less than government expenditure as a result of the recession. In order to maintain a balanced budget, the government can either increases taxes are reduce expenditure.
When taxes are increased, disposable income falls and this causes aggregate demand to fall
Robot uses competitive analysis processs to collect data on what their competitors are doing. Which of the following is not a test does the company puts each competitor's robot through?
A. Drop.
B. Lab.
C. Edge.
D. Straight line.
E. Box.
Answer:
Drop
Explanation:
Competitive Analysis
This is commonly refered to as a form of research review and final evaluation of one's competitors. It is beneficial due to the fact that the information you obtained/known can help you to be based on your competitor weaknesses
When starting this analysis, always you set up expectations that can be achieved so that one's team has enough time to fully research, analyze, and share their findings.
Competitive analysis, as a part of your business planning, is a means by which an individual believes that their business will survive and thrive competitively in the market because the individual has full attachment to current competitors and one's potential competition too. Putting the robot through a drop test is not correct as it may destroy it.
RESPETAR LA CAPACIDAD DE CARGA DE UN DESTINO TURISTICO, LE ALARGA LA VIDA UTIL.
Answer:
La afirmación es correcta.
Explanation:
La capacidad de carga es el número de individuos de una especie determinada que puede ser sostenido por un medio ambiente. En general, la capacidad de carga se logra en algún momento porque las especies tienden inherentemente a reproducirse. Por ejemplo, si hay comida para 100 peces en un estanque, la capacidad de carga del estanque es para 100 peces. En la actualidad, no se sabe con certeza cuántas personas podrá sostener la Tierra, pero se ha argumentado que la población humana en la Tierra ya ha superado el límite de la capacidad de carga del planeta.
Cuando una población (individuos de una especie en un área) excede su capacidad de carga a medida que crece, a menudo colapsa, ya que una población sobredimensionada destruye sus propias condiciones de vida.
You are the project manager assigned to build and decorate a model home. What might be an example of a lead you encounter when scheduling work activities
Answer:
The project manager will face difficulties in lead activities if procurement department is not efficient and cooperative.
Explanation:
The procurement of material needs to be quick in case of construction. There is sometimes quick requirement for materials to continue construction. In this case the activities should be scheduled so that there is not delay in the construction activities due to lead time of raw material.
A project manager leads the team and the project to achieve the target. Lead can be of three days as the wall was constructed three days earlier.
What is lead?Project management, is defined as the activity or the task that started before the previous activity is finished and is related to the understanding of the complete project so that the activities can be worked in a controlled manner.
The project manager must have an idea about how to schedule the activity or the task so the former and the later activities can be worked in balance.
In working on a building and home model the coordination between the construction of the roof and walls are necessary as they are interlinked.
Therefore, there will be a lead if the walls are constructed faster.
Learn more about project management here:
https://brainly.com/question/22590420
During 2011, Simon Kidman, the sole shareholder of a calendar year S corporation, received a distribution of $75,000. On December 31, 2010, his stock basis was $24,000. The corporation earned $50,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?
a. Kidman's stock basis will be $2,000
b. Kidman's return of capital is $50,000
c. Kidman recognizes a $1,000 LTCG
d. Kidman's ordinary income is $64,000
e. None of the above
Answer: c. Kidman recognizes a $1,000 LTCG
Explanation:
Long term gain can be calculated by the formula:
Capital gain = Distribution received - Basis in stock - Ordinary income earned
= 75,000 - 24,000 - 50,000
= $1,000
Long Term Capital gain is therefore $1,000.
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $7; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $3; and fixed selling and administrative costs, $263,000. The company sells its units for $48 each. Additional data follow. Planned production in units 10,000 Actual production in units 10,000 Number of units sold 9,500 There were no variances. The income (loss) under absorption costing is
Answer:
Favaz
The income (loss) under absorption costing is
= $41,000.
Explanation:
a) Data and Calculations:
Variable manufacturing cost per unit, $7
Fixed manufacturing costs, $60,000
Variable selling and administrative costs per unit, $3
Fixed selling and administrative costs, $263,000
Selling price per unit = $48
Planned production in units = 10,000
Actual production in units = 10,000
Number of units sold = 9,500
Ending inventory = 500 (10,000 - 9,500)
Income Statement
Sales revenue ($48 * 9,500) $456,000
Cost of production:
Variable manufacturing $70,000 ($7 * 10,000)
Fixed manufacturing costs, 60,000
Total cost of production $130,000
Less Ending inventory 6,500 ($13 * 500)
Cost of goods sold 123,500
Gross profit $332,500
Expenses:
Variable selling and administrative
costs per unit, ($3 * 9,500) $28,500
Fixed selling and
administrative costs, 263,000
Total expenses $291,500
Net income $41,000
Which of the following relationships is NOT valid? A. When marginal cost is above average variable cost, AVC is rising. B. Rising marginal cost implies that average total cost is also rising. C. When marginal cost is below average total cost, the latter is falling. D. None of the above
Answer:
b
Explanation:
Assume General Electric (GE) has about 10.3 billion shares outstanding and the stock price is $37.10. Calculate the market value for GE. (Approximately)
Answer: $382 billion
Explanation:
The market capitalization refers to the total market value of the equity of a firm and this is calculated as the firm's stock market price multiplied by the number of shares that's outstanding. This will be:
= 10.3 billion × $37.10
= $382 billion
Therefore, the market value for GE is $382 billion.
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows:
Cash $48,000 Liabilities $36,000
Noncash assets 135,000 Alex, capital 94,500
Bess, capital 52,500
Total assets 183,000 Total liabilities and capital $ 183,000
Part A: Prepare journal entries for the following transactions:
Distributed safe cash payments to the partners.
Paid $21,600 of the partnership's liabilities.
Sold noncash assets for $147,000.
Distributed safe cash payments to the partners.
Paid remaining partnership liabilities of $14,400.
Paid $4,100 in liquidation expenses; no further expenses will be incurred.
Distributed remaining cash held by the business to the partners.
Part B: Prepare a final statement of partnership liquidation.
Answer:
Alex and Bess Partnership
Part A: Step-by-step Distribution:
Cash Noncash assets Liabilities Alex Bess
December 31 $48,000 $135,000 $36,000 $94,500 $52,500
Safe cash
distribution (26,400) 0 0 (18,480) (7,920)
1st Liabilities (21,600) 0 (21,600) 0 0
Sale of noncash 147,000 (135,000) 8,400 3,600
Safe cash distrib. (100,000) (70,000) (30,000)
Final liabilities (14,400) 0 (14,400) 0 0
Liquidation expense (4,100) 0 (2,870) (1,230)
Final distribution (28,500) 0 (11,550) (16,950)
Part B: Final Statement of Partnership Liquidation:
Cash Noncash assets Liabilities Alex Bess
December 31 $48,000 $135,000 $36,000 $94,500 $52,500
Sale of noncash 147,000 (135,000) 8,400 3,600
Payment of liabilities (36,000) (36,000)
Liquidation expenses (4,100) 0 (2,870) (1,230)
Distribution (154,900) 0 0 (100,030) (54,870)
Explanation:
a) Data and Calculations:
Profits and losses sharing ratio = 70:30
Estimated liquidation expenses = $5,500
Balance Sheet at Liquidation Date:
Cash $48,000 Liabilities $36,000
Noncash assets 135,000 Alex, capital 94,500
Bess, capital 52,500
Total assets 183,000 Total liabilities and capital $ 183,000
rt, a $0.73 per share cash dividend was declared by the board of directors for it common stock. On 12/31, the date of declaration, there were 98,000 shares authorized, 59,000 shares issued, and 8,000 Treasury shares. On the date of the dividend declaration, what amount will Walmart record into their dividend account
Answer:
$36,792
Explanation:
Missing word "At Walmart, the board of directors declared a $0.73"
Outstanding stockholder = Issued stockholder - Treasury stock
Outstanding stockholder = 59,000 shares - 8,600 shares
Outstanding stockholder = 50,400 shares
Amount of Dividend = Declared per share cash dividend * Outstanding stockholder
Amount of Dividend = 50,400 shares * $0.73
Amount of Dividend = $36,792
So therefore, on the date of the dividend declaration, $36,792 shall be recorded by Walmart into their dividend account.
Casey Motors recently reported net income of $55 million. The firm's tax rate was 40.0% and interest expense was $19 million. The company's after-tax cost of capital is 9.0% and the firm's total investor supplied operating capital employed equals $385 million. What is the company's EVA
Answer:
$31.76 million
Explanation:
Economic Value Added is the residual wealth left for shareholders after having accounted for the financing needs of the company as shown by the formula below:
EVA=NOPAT-(WACC*invested capital)
NOPAT is the net operating profit after tax =operating profit(EBIT)*(1-tax rate)
Net income=Earnings before tax*(1-tax rate)
net income= $55 million
EBT=unknown
tax rate=40.0%
$55=EBT*(1-40.0%)
$55=EBT*0.60
EBT=$55/0.60
EBT=$91.67
EBIT=EBT+interest
EBIT=$91.67+$19
EBIT=$110.67
NOPAT=$110.67*(1-40%)
NOPAT=$66.41
WACC=9.0%
perating capital employed=$385
EVA=$66.41-(9.0%*$385)
EVA=$31.76 million
operating capital em
The cost of preferred stock
Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity.
Characteristics Debt Equity
Dividends are fixed
Usually has no specified maturity date
Consider the case of Tamin Enterprises:
At the present time, Tamin Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Tamin has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $11 per share. If the investors pay $97.95 per share for their investment, then Tamin's cost of preferred stock (rounded to four decimal places) will be:_____.
Answer:
Dividends are fixed ⇒ Debt
Preferred dividends are fixed much like the interest payments made on debt which makes this a characteristic of debt.
Usually have no specified maturity date ⇒ Equity
Equity does not have an expiration or maturity date and preferred shares share this same characteristic.
Cost of preferred stock.
The value of a Preferred stock is calculated by the formula:
Price = Dividend / Cost of preferred stock
97.95 = 11 / Cp
97.95 * Cp = 11
Cp = 11/ 97.95
= 11.23%
Southwest Airlines wants to raise $20 million to finance the renovation of their corporate offices, and the company wishes to raise the funds through direct finance. Which of the following methods could it use?
a. It could issue $20 million in stocks.
b. It could sell $20 million in bonds.
c. It could borrow $20 million from a bank.
d. It could choose either A or B.
Answer:
D
Explanation:
Direct finance is when a company or individual borrows money directly from the financial market without the aid of a financial intermediary.
Examples include :
issuing bondsissuing sharesIndirect finance is when a company or individual borrows money through a financial intermediary. for example, borrowing from a bank
Risk is best thought of as the potential for variability in the investment’s outcomes. This means that if an investment has the potential to provide only one possible outcome or return, then it is , while if there is more than one possible return or result, then the asset should be considered . This is why securities sold by the U.S. Treasury have historically been considered to be the securities in the world; because except in the event of the failure of the U.S. government, any investor holding a Treasury security would receive the security’s face value upon its maturity.
Answer:
safe or risk free, risky, safest
Explanation:
In investment market, risk is defined as the potential for the variability in the outcomes of the investment. Thus it is meant that outcome or return of making an investment is safe and risk free if there is only one return or outcome. But if there are more than one possible return from the investment, then that investment is considered as risky. For this reason the securities sold by the United States' Treasury is considered to be the safest securities in the world as the investor will receive the face value of the security upon its maturity from the government.
Which of the following does not dilute the value of collecting opinions from a number of people (e.g., regarding a performance evaluation or hiring decision)?
A. They have discussed the matter with each other.
B. They evaluated the same materials.
C. They have discussed the matter with the same people.
D. They have similar backgrounds.
Answer:
The correct answer is A:
They have discussed the matter with each other.
Explanation:
The objective of collecting opinions from a number of people with regard to a particular subject such as performance evaluation or a hiring decision is to ensure that via the consideration of heterogeneous perspectives, the best decision is arrived at.
The very nature of collecting opinions from people who are most likely to view the subject from different unique perspectives requires that the subject be discussed. Hence, Option A cannot be a diluting factor.
Cheers
Bella Bags is a British company that sells luxury leather purses manufactured in London. Currently, its products are carried at high-end department stores all across Europe. The company prides itself on its exceptional customer service. However, the company has been criticized in the past for carrying only two designs of bags. There is currently growing market demand for high-end luxury accessories. Bella Bags faces fierce competition from established luxury brands. Which of the following best characterizes an actionable strategy for Bella Bags that works on reducing the company's weaknesses to avoid threats?
A) Reduce the threat of high competition by expanding the product line and offering more variety
B) Promote the company's exceptional customer service to leverage the increasing demand for luxury goods
C) Reduce the threat of high competition by promoting the company's narrow product offering
D) Reduce the threat of high competition by leveraging the increasing demand for luxury goods
Answer:
A
Explanation:
When a market is monopolistically competitive, the typical firm in the market is likely to experience a a. positive or negative profit in the short run and a zero profit in the long run. b. positive profit in the short run and in the long run. c. zero profit in the short run and in the long run. d. zero profit in the short run and a positive or negative profit in the long run
Answer:
a
Explanation:
Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from a supplier in Vietnam to produce 8,000 units per year for $7.50 each. Mohave has the following information about the cost of producing tote bags:
Direct materials $3
Direct labor 2
Variable manufacturing overhead 1
Fixed manufacturing overhead 2
Total cost per unit $8
Mohave has determined that all variable costs could be eliminated by outsourcing the tote bags, while 60 percent of the fixed overhead cost is unavoidable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags.
Required:
1. Compute the difference in cost between making and buying the umbrella tote bag.
2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them?
3. Suppose that the space Mohave currently uses to make the bags could be utilized by a new product line that would generate $10,000 in annual profits. Recompute the difference in cost between making and buying the umbrella tote bag. Does this change your recommendation to Mohave? If so, how?
4. Assume Mohave has a sustainability goal to increase the percentage of spending from local suppliers. If Mohave’s managers are responsible for improving this metric, how might it impact their sourcing decisions?
5. What other strategic or sustainability-related goals should Mohave consider before making a final decision?
Answer:
Mohave Corp.
1. Cost Differences:
Relevant costs:
Make Buy Difference
Direct materials $3
Direct labor 2
Variable manufacturing overhead 1
Fixed manufacturing overhead 0.80
Total cost per unit $6.80 $7.50 $0.70
Annual Units 8,000 8,000 8,000
Total costs $54,400 $60,000 $5,600
2. Based strictly on the incremental analysis, Mohave should continue to make the tote bags.
3. The recommendation is changed. Mohave should buy the tote bags from outside. Buying from outside increases operating income by $4,400.
Explanation:
a) Data and Calculations:
Price per unit from outside supplier = $7.50
Direct materials $3
Direct labor 2
Variable manufacturing overhead 1
Fixed manufacturing overhead 2
Total cost per unit $8
Relevant costs:
Make Buy Difference
Direct materials $3
Direct labor 2
Variable manufacturing overhead 1
Fixed manufacturing overhead 0.80
Total cost per unit $6.80 $7.50 $0.70
Annual Units 8,000 8,000 8,000
Total costs $54,400 $60,000 $5,600
Relevant costs:
Make Buy Difference
Direct materials $3
Direct labor 2
Variable manufacturing overhead 1
Fixed manufacturing overhead 0.80
Total cost per unit $6.80 $7.50 $0.70
Annual Units 8,000 8,000 8,000
Total costs $54,400 $60,000 $5,600
Annual profits from new product 0 (10,000) $10,000
Total net costs $54,400 $50,000 $4,400
You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Which of the statements are true regarding the inflation tax?IncreasedDecreasedNot affectedAnswer Banka. rate of the forward reactionb. activation energy of the forward reactionc. activation energy of the reverse reactiond. rate of the reverse reaction
Answer:
The federal government reserves the power to print money. By printing money to pay its debts, the government decreases the value of money and causes the inflation tax.Explanation:
As per the Constitution, the Federal government reserves the sole right to print currency. This ensures that all the states have a stable medium of exchange thereby allowing goods and services to flow across states undisturbed.
When the government prints money to enable it pay off its debt, the value of the currency decreases because the supply of money has increased relative to its demand. As a result, the currency will only be able to buy less than it was able to buy before thereby creating a sort of inflation tax because people would be paying an extra amount in order to purchase goods and services
Presented here are selected transactions for the Cullumber Company during April. Cullumber uses the perpetual inventory system. April 1 Sold merchandise to Mann Company for $4,200, terms 2/10, n/30. The merchandise sold had a cost of $3,000. 2 Purchased merchandise from Wild Corporation for $8,500, terms 1/10, n/30. 4 Purchased merchandise from Ryan Company for $1,100, n/30. 10 Received payment from Mann Company for purchase of April 1 less appropriate discount. 11 Paid Wild Corporation for April 2 purchase. Journalize the April transactions for Cullumber Company
Answer:
Cullumber Company
Journal Entries:
April 1 Debit Accounts receivable (Mann Company) $4,200
Credit Sales revenue $4,200
To record the sale of goods on credit terms, 2/10, n/30.
Debit Cost of goods sold $3,000
Credit Inventory $3,000
To record the cost of goods sold.
April 2 Debit Inventory $8,500
Credit Accounts payable (Wild Corporation) $8,500
To record the purchase of goods on credit terms, 1/10, n/30.
April 4 Debit Inventory $1,100
Credit Accounts payable (Ryan Company) $1,100
To record the purchase of goods on credit terms, n/30.
April 10 Debit Cash $4,116
Debit Cash Discounts $84
Credit Accounts receivable (Mann Company) $4,200
To record the receipt of cash on account, including discounts.
April 11 Debit Accounts payable (Wild Corporation) $8,500
Credit Cash $8,415
Credit Cash Discounts $85
To record the payment on account, including discounts.
Explanation:
a) Data and Analysis:
April 1 Accounts receivable (Mann Company) $4,200 Sales revenue $4,200 terms 2/10, n/30.
Cost of goods sold $3,000 Inventory $3,000
April 2 Inventory $8,500 Accounts payable (Wild Corporation) $8,500 terms 1/10, n/30.
April 4 Inventory $1,100 Accounts payable (Ryan Company) $1,100 n/30.
April 10 Cash $4,116 Cash Discounts $84 Accounts receivable (Mann Company) $4,200
April 11 Accounts payable (Wild Corporation) $8,500 Cash $8,415 Cash Discounts $85
Splish Brothers Inc. reported net income of $394000 for the year. During the year, accounts receivable increased by $29000, accounts payable decreased by $12000 and depreciation expense of $61000 was recorded. Net cash provided by operating activities for the year is
Answer:
$414000
Explanation:
Calculation to determine what Net cash provided by operating activities for the year is
Net income $394000
Less Receivable increased ($29000)
Less Accounts payable decreased ($12000)
Add depreciation expense $61000
Net Net cash provided by operating activities $414000
Therefore Net cash provided by operating activities for the year is $414000
