Answer: 72%
Explanation:
ROI = Net Income/ Average Assets
Assuming Contribution Margin increases by $30,000;
= 240,000 + 30,000
= $270,000
Net income = Contribution margin - Fixed cost
= 270,000 - 90,000
= $180,000
ROI = 180,000 / 250,000
= 72%
The amount of cash that remains after deducting the funds a company must commit to continue operating at its planned level is called:
Answer:
free cash flows
Explanation:
In order to calculate a company's free cash flow, we can use the following formula:
free cash flow = net income + non-cash expenses (depreciation and amortization) - increase in net working capital - capital expenditures (investing activities)
free cash flows differ from net income, but they are generally more relevant for financial analysis since cash is king an no company can survive without cash even if its profits are huge.
What are the three basic types business organizations? *
O Sole Proprietors, Non Profits and Cooperatives
O Corporations, Cooperatives and Franchise
O Sole Proprietorships, Partnership and Cooperative
O Sole Proprietorships, Partnership and Corporation
Answer:
Sole Proprietorships, Partnership and Corporation
Explanation:
Sole proprietorships businesses are the most common and simple type of business ownership. They are owned by one person. Legally, the business and the person are considered as a single entity. The owner enjoys all the profits by themselves and suffers the losses alone.
Partnerships require two or more individuals to combine their resources, time, and effort in creating a business. Partnerships are mostly started by friends or family members with similar business objectives. A partnership is easy to forms. The firm passes its income as the income of partners.
A corporation requires the preparation of some legal documents to register. A corporation is considered a distinct entity from its owners. It enjoys commercial rights to own assets, incur expenses and liabilities, sue and be sued, and pay its tax obligations. A corporation is suited for large businesses.
Cash equivalents:______.
A. Include savings accounts.
B. Include checking accounts.
C. Are readily converted to a known cash amount.
D. Include time deposits.
E. Have no immediate value.
Answer:
C. Are readily converted to a known cash amount.
Explanation:
Highly liquid short term assets are those which are ready available for conversion into cash. These are also called Liquid assets. Highly liquid investment are made for short term investment interest revenues.
Marketing is all of the activities used to exchange goods and services between businesses and consumers.
true
false
Answer: True
Explanation:
Your company, Cool Stuff Incorporated, makes air conditioners (AC) and fans. Each AC makes $25 profit per unit and each fan makes $15 profit per unit. Each AC needs 3 hours of assembly and 2 hours for painting. Each fan requires 2 hours of assembly and 1 hour of painting. Each week you have 240 hours of assembly and 140 hours of painting available. a. How many ACs and fans should you make to maximize profit
Answer:
In order to maximize our profit we make 40 AC's and 60 Fan's and the profit earned will be $1900.
Explanation:
This question is from Linear programming and will be solved using its methods.
Let
x = No of Air conditioner
y = No of fans
we need to maximize our profit
Z= 25x +15y
we have the constraints
3x+2y [tex]\leq[/tex] 240 ( For assembling AC and Fan)
2x + y [tex]\leq[/tex] 140 ( For painting AC and Fan)
x , y [tex]\geq[/tex] 0
We get an intersection at the point (40, 60)
Z = 25x + 15y
= 25*40 + 15*60
= 1000 + 900
Z= $1900
Therefore we need to make 40 AC's and 60 Fan's in order to maximize our profit. The profit from making 40 AC's and 60 Fan's will be $1900.
If a bank has $120,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is
Answer:Maximum deposit outflow sustainable without altering its balance sheet is $20,000
Explanation:
Given
Check able deposits =$120,000
Required reserve ratio= 20 percent
Reserve=$40,000
Maximum deposit outflow sustainable = (Reserve - percentage of checKable deposits)/ 1- required reserve ratio
(40,000 - 0.2 x 120,000) / 1-0.2
(40,000-24,000) / 0.8
16,000/0.8
=$20,000
With the exception of malpractice, liability for torts committed by others in a firm cannot be imposed on the shareholders of
Answer:
A Professional Corporation.
Explanation:
Marin Company's accounts receivable arising from sales to customers amounted to $131000 and $114000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $498000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Answer:
$481,000
Explanation:
To determine the cash flows from operating activities, the net Income for the year must be adjusted by non - cash items and changes in working capital items.
Therefore, given a decrease in Accounts Receivable $17,000 ($131000 - $114000) . Then the cash flows from operating activities to be reported on the statement of cash flows is $481,000 ($498000 - $17,000) .
The most important part about having an effective organizational culture is to:
a. ensure that all your values are expressed clearly in the mission statement.
b. reinforce the values in employees through cards, pins and desk sets.
c. include the values in employee on-boarding sessions.
d. ensure that words are aligned with behaviors.
Answer:
d. ensure that words are aligned with behaviors.
Explanation:
Of course, we can argue that it is not all about expressing clearly the organization's culture in the mission statement or writing them on cards, pins, desk sets, etc which may not even make any difference among employees, neither is simply including the values in the employee recruitment process.
However, what really matters is that the organization ensures all the words about the organization's culture on paper are aligned with the behaviors of employees as they carry out their assignments.
For example, an organization that merely writes on paper that it doesn't tolerate discrimination in the workplace on the basis of race, gender, etc, and yet still allows open discriminatory practices has failed to align words with behavior.
A plant utilizes 4 full time workers and 1 part time (half time) worker in one 8 hours shift and produces 150 parts in that shift. What is the labor productivity?
a. 3.5 parts per hour
b. 5.3 parts per hour
c. 2.17 parts per hour
d. 4.17 parts per hour
Answer: d. 4.17 parts per hour
Explanation:
There are 4 fulltime workers and 1 halftime worker working in 8 hour shifts.
= 4 workers * 8 hours
= 32 hours
Halftime worker = 8/2 = 4 hours
Total hours = 32 + 4 = 36 hours
Labor productivity = Quantity produced/Hours
= 150/36
= 4.17 parts per hours
Imagine you are in the process of buying a new car. Give at least two examples of both qualitative and quantitative data that you would consider in your purchase decision. Explain and defend your choices provide several qualitative attributes and several quantitative characteristics you would consider important when purchasing a car.
Answer: Qualitative data cannot be recorded numerically at the initial stage, but can be later converted into numerical data for statistical purposes.
Quantitative data is conclusive in summary, can be recorded numerically first hand.
Explanation:
Qualitative data cannot be recorded numerically at the initial stage, but can be later converted into numerical data for statistical purposes.
Quantitative data is conclusive in summary, can be recorded numerically first hand.
Qualitative variables examples;
Colour of the car
Driver experience
Quantitative variables:
Size of the car
Horse power of the engine -
When existing products are given superficial changes and marketed as new to maximize profits is referred to as
Answer:
planned obsolescence
Explanation:
Planned obsolescence is a marketing strategy that focuses on deliberately launching new versions of existing products that are only slightly changed, but they make the existing product obsolete. The most common example are minor changes in cars made every year that make them the new version, while major changes only occur every 5 or 6 years. Another example is using irreplaceable batteries in smartphones, tablets or notebooks. Once the batteries start to fail, you have to replace the whole product.
Discuss how construction of a portfolio can lower the risk of an investor.
Answer:
Simply put, the other meaning portfolio construction is diversification of risk. Portfolio construction is the one of simplest way of reducing risk without significantly affecting the returns.
Ways of diversifying risk includes Pension Funds, Mutual Fund, Equity, Stocks, Debt / Bonds, Retirement Saving, etc. If someone had made their investment in only one asset class, then there will be less returns available with high risk. while doing portfolio investment, it will give a systematic and controlled risky investment with higher return opportunities because some assets will perform well while other do poorly. but next year scenario could be changed or reversed. There are some thumb rules while doing portfolio investment, but it can be changed based on individual's personal goal.
What is the standard deviation of a stock that has a 10% chance of earning 18%, a 10% chance of making 11%, a 40% chance of making 5%, and a 40% chance of making 22%?
A. 7.95%.
B. 13.70%.
C. 7.78%.
D. 13.05%.
Answer:
A. 7.95%.
Explanation:
Calculate the expected rate of return for the investment as follows:
[tex]\begin{aligned}
\text { Expected rate of return } &=(\text { Probability } \times \text { Rate of return })+(\text { Probability } \times \text { Rate of return })+\\
&(\text { Probability } \times \text { Rate of retum }) \\
=&(0.40 \times 15 \%)+(0.50 \times 10 \%)+(0.10 \times-3 \%) \\
=& 0.06+0.05-0.003 \\
=& 0.107[/tex]
Calculate the standard deviation of the investment as follows:
[tex]\begin{aligned}
\text { Standard deviation }=&\left\{\begin{array}{l}
\text { Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\
\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\
\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)
\end{array}\right.[/tex]
=[tex]\sqrt{\left(0.40 \times(0.15-0.107)^{2}\right)+\left(0.50 \times(0.10-0.107)^{2}\right)+} \\
=\sqrt{0.0007396+0.0000245+0.0018769} \\
=\sqrt{0.002641} \\
=0.05139066063011[/tex]
"In terms of the exercise, what price will the client report for tax purposes in relation to the price at which the stock is sold to the buyer of the call?"
Kellogg Co. (K) recently earned a profit of $2.22 earnings per share and has a P/E ratio of 19.35. The dividend has been growing at a 6 percent rate over the past few years. If this growth rate continues.
Required:
a. What would be the stock price in four years if the P/E ratio remained unchanged?
b. What would the price be if the P/E ratio declined to 16 in four years?
Answer and Explanation:
The computation is shown below:
The following formula should be used
= P/E ratio × EPS × (1 + growth rate)^n umber of years
a. The stock price in four years is
= $19.35 × $2.22 × (1 + .06)^4
= $54.23
b. The stock price in four years in the case when the P/E ratio fall to 16
= $16 × $2.22 × (1 + .06)^4
= $44.84
We simply applied the above formula so that the correct price could come
And, the same is to be considered
According to the Five Forces Model,___________ are the five competitive forces that determine the level of competition and profitability in an industry.
a. rivals, buyers, suppliers, substitutes, and potential entrants
b. rivals, consumers, labor, weather, and government
c. buyers, suppliers, government, foreign competition, and weather
d. None of the above is correct.
Answer:
a. rivals, buyers, suppliers, substitutes, and potential entrants
Explanation:
Porter's Five Forces model can be regarded as the framework used in analysis of compititive environment of a company/firm. It helps to know the power of the compititive rival of the firm, the influence of products that are substitute of the product of company on the company as so on. It should be noted that According to the Five Forces Model;rivals, buyers, suppliers, substitutes, and potential entrants are the five competitive forces that determine the level of competition and profitability in an industry.
The annual maintenance cost of a monument in the state capital is estimated to be $4850. A perpetual i fund of $100,000 is set up to pay for this maintenance expenditure. Determine the interest rate this fund earns if the interest is compounded quarterly
Answer:
4.76%
Explanation:
P[(1+i/4)^4 - 1] = A
$100,000*P[(1+i/4)^4 - 1] = $4,850
[(1+i/4)^4 - 1] = $4,850/$100,000
[(1+i/4)^4 - 1] = 0.0485
(1+i/4)^4 = 0.0485 + 1
(1+i/4)^4 = 1.0485
(1+i/4) = 1.0485^(1/4)
(1+i/4) = 1.01191
i/4 = 1.01191 - 1
i/4 = 0.01191
i = 0.01191*4
i = 0.04764
i = 4.76%
The Putting Lot provides a useful service in that it provides people in the area with entertainment without them having to travel. The services it offers also provides hedonic value, as people enjoy them. Based on this information, the services offered by The Putting Lot can be described as:_____________.
a. Salutary products
b. Pleasing products
c. Desirable products
d. Deficient products
Answer:
Option C. Desirable products
Explanation:
In sustainable Marketing, it is socially and environmentally capable type of marketing that meets the present needs of consumers and businesses while also keeping/ /enhancing the ability of future generations to meet their needs.
There are 4 types of Products. They adre deficient, pleasing, salutary and desirable.
Desirable Products are simply products that provides both high, quick/ immediate satisfaction and high long run benefits to its consumption/use.Puttings service becomes desirable if it provides the needed services and satisfaction that is derived from services offered.
Thoroughly and completely explain Invention ii. Distinguish between invention as a process and invention as a result and give 2 examples of each. iii. We live on a planet with finite resources which makes continued economic growth difficult to maintain. Please explain how invention as a process and invention as a result might be impacted by a slow growth /no growth economy. iv. What can we do about this problem
Calculate the purchase price for a 52-week, $1,000 Treasury bill with a stated interest rate of 2.20 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Purchase price ___________.
Answer:
The purchase price for the Treasury bill is $978.00.
Explanation:
The following are given in the question:
Maturity value = $1,000
Interest rate = 2.20%
With these, we first calculate the amount of discount as follows:
Amount of discount = Maturity value * Interest rate = $1,000 * 2.20% = $22,00
The purchase price can now be calculated as follows:
Purchase price = Maturity value - Amount of discount = $1,000 - $22.00 = $978.00
Therefore, the purchase price for the Treasury bill is $978.00.
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound.
1. At what point should she re-order pepperoni?
a. 80 pounds remaining.
b. 40 pounds remaining.
c. 60 pounds.
d. 20 pounds.
e. 100 pounds.
2. If she were to order 80 pounds of pepperoni at a time, what would be the length of an order cycle?
a. 4 days.
b. 5 days.
c. 3 days.
d. 0 days.
e. .25 days.
3. If she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?
a. 60 pounds.
b. 20 pounds.
c. 100 pounds.
d. 40 pounds.
e. 80 pounds.
4. If she were to order 80 pounds of pepperoni at a time, what would be the total daily costs, including the cost of the pepperoni?
a. $60.00.
b. $64.10.
c. $64.00.
d. $65.00.
e. $63.20.
5. What is the economic order quantity for pepperoni?
a. 40 pounds.
b. 80 pounds.
c. 100 pounds.
d. 20 pounds.
e. 60 pounds.
Answer and Explanation:
The computation is shown below;
1. Reorder point is
= Daily demand × lead ime
= 20 × 3 days
= 60 pounds
2. The length of the order cycle is
= Order quantity ÷ demand rate
= 80 ÷ 20 pounds
= 4 days
3. The average inventory level is
= Order quantity ÷ 2
= 80 ÷ 2
= 40 pounds
4. The total daily cost is
the cost of the pepperoni = daily demand × cost per pound
= 20 × 3 pound
= 60
Daily ordering cost is
= daily demand ÷ ordering quantity × ordering cost
= 20 ÷ 80 × $10
= $2.50
And, the daily holding cost is
= ordering cost ÷ 2 × holding cost
= 80 ÷ 2 × 0.04
= $1.60
Now the total daily cost is
= $60 + $2.50 + $1.60
= $64.10
5. The economic order quantity is
= (√2 × annual demand × ordering cost ÷ carrying cost)
= √2 × 20 × 10 ÷ 0.04
= √10,000
= 100
Accounting, inventory management, and shipping are part of order fulfillment and referred to as __________ operations.
A) Back-office
B) Customer-facing
C) Front-office
D) Logistics
Answer: back office
Explanation:
The back office in an organization is simply the part of the organization that is made up of the employees that deals.with administration and also tge support personnel and are typically not required to face the customers or clients like the front office employees.
Some of the back-office functions are IT services, Regulatory compliance, shipping, record maintenance, settlements, accounting, etc.
You want to buy a new sports coupe for $92,500, and the finance office at the dealership has quoted you an APR of 74 percent for a 60 month loan to buy the car
a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. What is the effective annual rate on this loan? (Do not round intermediate celculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.)
a. Monthly payment
b. Effective annual rate
Answer:
a) we must first determine the effective interest rate
effective monthly interest rate = APR / 12 = 7.4% / 12 = 0.617%
monthly payment = present value x annuity factor
present value = $92,500
PV annuity factor, 0.617%, 60 periods = 50.024
monthly payment = $92,500 / 50.024 = $1,849.12
b) effective annual rate = (1 + 7.4%/12)¹² - 1 = 0.076562 = 7.66%
Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $175,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $140,000. If Metro has a current marginal tax rate of 34%, what is the amount of the initial outlay for this project
Answer: (1121300)
Explanation:
The initial outlay for the project will be:
Machinery purchase price = =-1000000-175000 = (1,175,000)
Less: Proceed from old machine =
= =85000+(140000-85000) × 34% = 103,700
Net working capital = 50,000
Initial outlay = (1121300)
waterford company maintains a cafeteria for its employees. for june, variable food costs were budgeted at $45 per employee based on a budgeted level of 200 employees in other departments. during the month, an average of 190 employees worked in other departments and actual food costs totaled $9,250. how much food cost should be charged to the other departments at the end of the month for performance evaluation purposes
Answer:
$8,550
Explanation:
Calculation for how much food cost should be charged to the other departments at the end of the month for performance evaluation purposes
Using this formula
Other departments Cost to be charged=Average other departments *Budgeted variable food costs
Let plug in the formula
Other departments Cost to be charged =190 employees x$45 per employee
Other departments Cost to be charged= $8,550
Therefore how much food cost should be charged to the other departments at the end of the month for performance evaluation purposes is $8,550
An oligopolist will increase production if the output effect is:_____.
a. less than the price effect.
b. equal to the price effect.
c. greater than the price effect.
d. The oligopolist never has an incentive to increase production.
Answer:
c. greater than the price effect.
Explanation:
The output effect represents higher revenue due to a larger quantity supplied, while the price effect results in lower revenue due to an decrease in price resulting from an increase in quantity supplied. As the quantity supplied increases, the equilibrium price decreases. A firm will sell more units if the output effect is higher and offsets the price effect.
A company paid $0.58 in cash dividends per share. Its earnings per share is $4.30 and its market price per share is $28.75. Its dividend yield equals:___________a) 2.02%.b) 4.96%.c) 7.41%.d) 13.49%.e) 14.96%.
Answer:
a) 2.02%
Explanation:
Dividend yield = Cash dividend per share / Market price per share
Dividend yield = $0.58 / $28.75
Dividend yield = 0.02017
Dividend yield = 2.02%
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is: Question 20 options: the order quantity divided by the number of inventory cycles per year. the annual demand divided by the number of inventory cycles per year. half of the order quantity. half of the annual usage.
Answer:
c. half of the order quantity
Explanation:
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is half of the order quantity
Economic order quantity is a quantity which minimizes the ordering cost and holding cost
Q = EOQ = [tex]\sqrt{2*D*S/ H}[/tex] where D = Demand unit, S = Order cost and H = Holding cost
- Ordering cost and the Holding at EOQ will be same
- Average inventory = Q/2
- Average inventory is the half of the order quantity.
Use this information to answer the question. All numbers are in millions.
Population of the nation 125
Size of the labor force 75
Number of employed workers 50
Number of unemployed workers 25
What is the unemployment rate for this nation?
a. 5 percent
b. 20 percent
c. 25 percent
d. 33 percen
Answer:
25 percent
Explanation:
