Answer:
1. Total manufacturing costs = $1,248,380
2. Unit production cost = $104.03 ($1,248,380/12,000)
Explanation:
a) Data and Calculations:
Long-term investment = $560,000
Expected annual profit = $84,000 ($560,000*15%)
Cost of direct materials per unit = $28 (4lb *$7)
Cost of direct labor per unit = $37.52 (2*$15.40) + (0.6*$11.20)
Total manufacturing overheads:
Rent for factory building = $65,044
Rent for machinery 40,124
Indirect materials 30,380
Other overheads 326,592
Total production overheads $462,140
Production:
Units sold = 10,000 units
Ending inventory of finished goods = 2,000 units
Total production for the year = 12,000 units
Direct materials purchase = 12,000 * 4 + 3,000 pounds = 51,000
Estimating the total manufacturing costs:
Direct materials costs = $357,000 ($28 * 12,750) or ($7 * 51,000)
less Ending inventory of raw materials = $21,000
Cost of direct materials used = $336,000 ($28 * 12,000 units)
Cost of direct labor = $450,240 ($37.52 * 12,000)
Production overhead = $462,140
Total manufacturing costs = $1,248,380
Cost per unit = $104.03 ($1,248,380/12,000)
The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $400,000 (40%) in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $54,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%
Answer:
The tax currently owed to the U.S. government is:
$18,900
Explanation:
a) Data and Calculations:
Income generated by the foreign subsidiary = $1,000,000
Tax paid by the subsidiary in its country of residence = $400,000
Dividend paid to the U.S. parent = $54,000
Federal tax rate = 35%
Tax on the dividend = $18,900 ($54,000 * 35%)
b) The dividend of $54,000 is a foreign-source income earned by a U.S. parent corporation. This is this amount that will be subject to tax in the U.S. and not the net income of the subsidiary.
Consider two economies that are identical, with the exception that one has a high marginal propensity to consume (MPC) and one has a low MPC. If the money supply is increased by the same amount in each economy, the high MPC economy will experience:
Select one:
a. a smaller increase in output and a
smaller decrease in the interest rate.
b. A larger increase in output and a
smaller decrease in the interest rate.
c. a larger increase in output and a
larger decrease in the interest rate.
d. A smaller increase in output and a larger decrease in the interest rate
= A larger increase in output and a
smaller decrease in the interest rate.
If the money supply is increased by the same amount in each economy, the high MPC economy will experience b. A larger increase in output and a smaller decrease in the interest rate.
What does a high MPC imply?A high MPC implies increased consumption while a low MPC shows increased savings.
Two factors that increase MPC include:
Readily available credit Lower interest rates.Thus, if the money supply is increased by the same amount in each economy, the high MPC economy will experience b. A larger increase in output and a smaller decrease in the interest rate.
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A___ Relationship would include your co-workers and friends.
Answer:
A colleague Relationship would include your co-workers and friends.
____involves relying on one's
authority position or stressing that a
request is in accordance with
organizational policies or rules.
Select one:
a. Consultation
b. Legitimacy
c. Exchange
d. Rational persuasion
= Legitimacy
Explanation:
legitimacy involves relying on one's
authority position or stressing that a
request is in accordance with
organizational policies or rules.
Wanda Company produces its finished product in two processing departments--Mixingand Finishing. The following information is available for the month of March:
Mixing Department:
The beginning work in process inventory was $17,130 ($14,880 direct materials and $2,250 converion costs) and consisted of 1.200 units.
During March, an additional 10.600 units were started into production. A total of 10.900 units were completed and transferred out to the Finishing Department.
The ending work in process inventory consisted of 900 units which were 80% complete as to conversion costs.
The following costs were incurred during March: direct materials $132,620; direct labor $140, 000; and overhead costs $101,770.
Direct materials are added at the beginning of the process in the Mixing Department and conversion costs are incurred evenly throughout the process.
Finishing Department:
The beginning work in process inventory was $57,210 ($44,250 transferred-in costs and $12,960 conversion costs) and consisted of 600 units.
During March, a total of 11.000 units were completed and transferred out to Finished Goods Inventory.
The ending work in process inventory consisted of 500 units which were 40% complete as to conversion costs.
The following costs were incurred during March: direct materials $143,000; direct labor $250, 000; and overhead costs $149.200.
Direct materials are added at the end of the process in the Finishing Department and conversion costs are incurred evenly throughout the production process.
Required:
a. Prepare a production report for March for the Mixing Department.
b. Give the general journal entry to record the transfer of the completed units from the Mixing Department to the Finishing Department for March.
c. Prepare a production report for March for the Finishing Department.
d. Give the general journal entry to record the completion of the units in the Finishing Department for March.
e. Draw the Work-in-Process Inventory T-accounts for the Mixing Department and the Finishing Department and enter the appropriate cost flow account data.
f. Why is computing cost of goods sold problematic in a process costing environment?
Answer:
Part a
Production report for March for the Mixing Department
Units Costs
Input
Opening Inventory 1.200 $17,130
Started during the period 10.600 $374,390
Total 11.800 $391,520
Output
Completed and transferred 10.900 $365,150
Ending Work In Process 900 $26,370
Total 11.800 $391,520
Part b
Debit : Work in Process - Finishing Department $365,150
Credit : Work in Process - Finishing Department $365,150
Part c
Production report for March for the Finishing Department
Units Costs
Input
Transferred 10.900 $365,150
Opening Inventory 600 $57,210
Started during the period 0 $542,200
Total 11.500 $964,560
Output
Completed and transferred 11.000 $933,130
Ending Work In Process 500 $31,375
Total 11.500 $964,560
Part d
Debit : Finished Goods Inventory $933,130
Credit : Work In Process - Finishing Department $933,130
Part e
Work-in-Process Inventory T-accounts for the Mixing Department
Units Costs
Debit
Opening Inventory 1.200 $17,130
Cost incurred 10.600 $374,390
Total 11.800 $391,520
Credit
Completed and transferred 10.900 $365,150
Ending Work In Process 900 $26,370
Total 11.800 $391,520
Work-in-Process Inventory T-accounts for the Finishing Department
Units Costs
Debit :
Transferred 10.900 $365,150
Opening Inventory 600 $57,210
Started during the period 0 $542,200
Total 11.500 $964,560
Credit :
Completed and transferred 11.000 $933,130
Ending Work In Process 500 $31,375
Total 11.500 $964,560
Part f
Cost of Goods Sold is a direct cost related to sale of goods. In process costing it is difficult to accurately value this amount since it contains the average cost. this means that units never sold would have been included in the calculation of the cost of goods sold.
Explanation:
It is important to first calculate the equivalent cost unit in each department to be able to solve the question. Calculations of equivalent units are shown below :
Mixing Department
Equivalent Units :
Conversion costs = 900 x 80% + 10,900 = 11,620
Material costs = 900 + 10,900 = 11,800
Equivalent Units Costs
Conversion = ($2,250 + $140,000 + $101, 770) ÷ 11,620 = $21.00
Material costs = ($14,880 + $132,600) ÷ 11,800 = $12.50
Finishing Department
Equivalent Units :
Process 1 = 11.000 + 500 = 11.500
Conversion costs = 500 x 40% + 11.000 = 11,200
Material costs = 11.000 + 500 = 11.500
Equivalent Units Costs
Process 1 = ($44,250 + $365,150) ÷ 11.500 = $35.60
Conversion = ($12,960 + $250,000 + $149,200) ÷ 11,200 = $36.80
Material costs = ($0 + $143,000) ÷ 11,500 = $12.43
According to Interland (2009), the art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists of tracing the consequences of that policy not merely for one group but for all groups. Discuss
Answer:
The economy is a human activity whose purpose is to ensure the production, exchange, distribution and consumption of the goods and services that people need. The goal of the national economy is to ensure the livelihood and development of the country's population, therefore the national economy includes activities such as the procurement of food and clothing, the construction and heating of housing, education, and the care of health and cultural needs. The economy includes enterprises and institutions that produce goods and services. Companies that produce similar goods and provide similar services form an industry. These are, for example, energy, machinery, plant growing, education, tourism, etc.
Thus, the economy seeks not only to guarantee the general welfare of citizens in the immediate future, but also in the long term, through the creation of consistent and solid economic policies that allow achieving high development for society.
What is the purpose of preserving historical data?
A.
legal compliance
B.
recruitment
C.
leave sanctions
D.
payroll
Answer:
What is the purpose of preserving historical data?
A.legal compliance
Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year.
Required:
a. What is the opportunity cost of producing a car in Canada? What is the opportunity cost of producing a bushel of wheat in Canada? Explain the relationship between the opportunity costs of the two goods.
b. Draw Canada’s production possibilities frontier. If Canada chooses to consume 10 million cars, how much wheat can it consume without trade?
c. Now suppose that the United States offers to buy 10 million cars from Canada in exchange for 20 bushels of wheat per car. If Canada continues to consume 10 million cars, how much wheat does this deal allow Canada to consume? Should Canada accept the deal?
Answer:
A) Opportunity Cost = 1/15 or 0.067 car per wheat
B) PPC downward sloping concave curve, with cars & wheat axis intercepts = 20 & 300 (resp). 15M bushels consumption with 10M cars
C) 1 Car : 20 bushels wheat is not beneficial deal
Explanation:
A) Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.
As 20 million cars or 300 million bushels wheat can be produced, opportunity cost of a bushel wheat is 20 M /300 M ie 0.067 units car .B) Production Possibility curve curve shows 2 product combinations, that an economy can produce with given resources & technology. Given fixed resources & technology, goods are inversely related & so curve downward sloping. And, it is concave due to increasing Marginal Opportunity Cost.
Canada's PPC is downward sloping concave curve, with intercept = 20M on axis of cars & intercept = 300M on axis of wheat. If Canada consumes (& produces) 10 million cars, it can consume 15M bushels of wheatC) Domestic Car : Wheat trade off ratio is = 20M : 300M ie 1: 15 . So, Trade of 20 bushels wheat per car is not beneficial for Canada. As, it is higher than domestic sacrifise ratio of 15 bushels wheat per car.
Differentiate domestic housekeeping from institutional housekeeping
Your project to obtain charitable donations is now 30 days into a planned 40-day project. The project is divided into three activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 25 days of the project and to bring in $25,000. Even though we are 30 days into the project, we still see that we have only 90 percent of this activity complete. The second activity relates to company donations and is scheduled to run for 30 days starting on day 5 and extending through day 35. We estimate that, even though we should have 83 percent (25/30) of this activity complete, it is actually only 50 percent complete. This part of the project was scheduled to bring in $150,000 in donations. The final activity is for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $50,000. So far, $175,000 has actually been brought in on the project.
Calculate the Schedule Variance, Schedule Performance Index, and Cost (actually value in this case) Performance Index. How is the project going? (Hint: Note that this problem is different since revenue rather than cost is the relevant measure. Use care in how the measures are interpreted.)
Answer:
1. schedule variance = -$52,500
2. SPI = 0.65
3. CPI = 0.56
Explanation:
to get the solution, we calculate for BRWS and BRWP
first we calculate the budgeted revenue of the work scheduled for each activity using this formula:
budgeted revenue * planned completion
A = 25,000 x 100percent
= $25000
B = 150,000 x (25/30) percent
= $125000
C = 50000 x 0percent
= 0$
total = $25000+$125000+$0
= $150000
Next we calculate budgeted revenue of work performed (brwp)
calculated using this formula:
budgeted revenue x actual completion
A = 25000 x 90percent
= 22500 dollars
B = 150000 x 50percent
= $75000
C = 50000 x 0%
= $0
total = 22500 + 75000 + 0
= $97500
1. schedule variance = BRWP - BRWS
= $97500 - $150000
= -$52500
we have a negative schedule, telling us that the project is behind schedule
2. schedule performance index = revenue of work performed divided by revenue of work schedule
= 97500/150000
= 0.65
3. cost price index = revenue of work performed divided by actual revenue
= 97500/175000
= 0.56
4. how the project is going:
the schedule performance index (SPI) is 0.65 which is less than 1. this is to say that the project is doing better than planned revenue when we talk of revenue
The Kissel Trucking Company Inc. has a defined benefit pension plan for its employees. At December 31, Year 1, the following information is available regarding Kissel's plan:
Fair value of plan assets $30,000,000
Present value of defined benefit obligation 38,000,000
Service costs 4,000,000
Interest costs 1200,000
Actuarial gains 150,000
Past service costs 375,000
Required:
Determine the amount that Kissel will report on the balance sheet as of December 31, Year 1, for this pension plan under IFRS.
Answer:
Under IFRS, net defined benefit liability is reported in balance sheet when Present value of defined benefit obligation (PVDBO) exceeds Fair value of plan assets(FVPA) which results in deficits.
In this case, PVDBO exceeds FVPA, then the difference betwen the two ix the net defined benefit liability.
Difference of PVDBO and FVPA = $38,000,000 - $30,000,000 = $8,000,000. Hence, net defined benefit liability reported in the balance sheet is $8,000,000.
Because of specialization and comparative advantage, most people:_______
a. consume the products produced by their family and friends.
b. consume the products of many other specialists.
c. consume only what they produce themselves.
d. do not use money as a medium of exchange.
e. share whatever they produce
Answer:
B
Explanation:
A country (people) has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries (people).
According to economic theory, a person should specialise in the production of goods for which it has a comparative advantage.
If a person specialises only in the production of goods he specialises, he would not to buy other goods from specialists since she does not produce all the goods
A competitive firm produces a product using labor and plastic. The firm is initially in equilibrium. If the cost of plastic suddenly increases, which of the following will occur?
A. The demand curve for the product will shift to the left.
B. The firm's demand curve for plastic will shift to the left.
C. The firm will increase the number of units offered for sale.
D. The firm will definitely go out of business, since competitive firms earn zero economic profits in equilibrium.
E. The firm's marginal costs will increase at each level of output.
Answer:
B
Explanation:
Option (e), which states that the firm's marginal costs will rise at each output level, is the right choice.
Does the marginal cost of a production increase?The marginal cost of production often increases as output volume increases. The manufacturer can decide how to divide resources among the production units in order to maximize output by using marginal cost.
What occurs when a company's marginal cost increases?They make the unit and supply it if the sale price exceeds the marginal cost. It would not be economically feasible to make it if the marginal cost was higher than the price. Therefore, manufacturing will continue until the sale price equals the marginal cost.
Why eventually does marginal cost increase with output?As output grows, the marginal cost eventually rises as a result of the declining marginal product of labor.
When output declines, what happens to the marginal cost?At this point, marginal cost decreases until it reaches a minimum due to economies of scale and the Law of Diminishing Returns. The marginal cost then grows as output rises.
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A statement of cash flows helps answer all of the following:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
3. How can the company improve its operations?
4. How does a company receives its cash?
5. What are the changes in the non-cash accounts?
Answer:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
4. How does a company receives its cash?
Explanation:
The Cashflow statement deals with the cash transactions of the company with a view to know how actual cash moves through the company. As a result, it can answer questions related to the cash transactions of the company.
This includes:
Why there were changes in the cash account because it shows what activities brought in cash and which took cash.Where the company spends its cash because those entries will be shown.Where the company gets its cash as well.Which of the following is NOT a factor in selecting a pricing method?
Auditory preferences
Costs
Competition
Perceived value
Answer:
perceived value
Explanation:
goodluck
On the morning of July 15, 2006, fourteen school buses were vandalized. The buses, property of Walt Whitman Middle School, were parked in the "bus barn" on campus. The vandals spray-painted the buses with pictures of dogs. Dogs happen to be the mascot of rival school Edgar Allan Poe Academy. This has led some to believe that some students from EAPA may be the culprits in the incident. Says the mother of one Walt Whitman student, "Oh, yeah, the [Edgar Allan] Poe [Academy] kids are definitely responsible. Those kids don't have any discipline, and they're still stewing over the loss of last week's football game." Police, however, say that they currently have no suspects.
The article above is an example of a human interest story.
True
False
What is the mental and physical effort made by humans for the production of goods and services?
Labor
Capital
Land
Entrepreneurship
$400 invested with compound interest at a rate of 3% per year for 2 years. Formula: M = P(1+ i)n
Answer:
$424.36
Explanation:
The applicable formula =M= P ( 1+ r)^2
Where M is the amount after two years
P = principal amount: $400
r = interest rate: 3% or 0.03
n =number of period :2
M= $400 x ( 1+ 0.03) ^ 2
M=$400 x 1.0609
M= $424.36
Supervisor: "Our goal is to make add-on sales during 85% of sales. If you make 35
sales, how many add-on sales do you need to make to meet the goal?"
Our goal is to make ad on sales during 85% of sales if you make 35% sales how many add-on on sales do you need to make to meet the goal?
Answer:
Calculate inventory turnover ratio in each of the following alternative cases
case 1: cash sales 25% of credit slaes credit sales Rs 300000 cross profit 20% on revenue form operations ie net sales closing inventory Rs 160000, opening inventory Rs 40000
case 2: cash sales 20% of Total sales, credit sales Rs 450000, Gross profit 25% on soct opening inventroy Rs 375000, closing inventorys 112500
Grain Farm Inc. files a suit against Harvest Services. Before the court can exercise jurisdiction over Harvest, the court must have proof that :_____.
a. Grain Farm did not act to precipitate a dispute with Harvest.
b. Grain Farm is prepared to notify Harvest of the suit.
c. Harvest was notified of the suit.
d. Harvest committed the act of which Grain Farm complains.
Answer:
C)Harvest was notified of the suit.
Explanation:
From the question, we are informed about Grain Farm Inc. that files a suit against Harvest Services. In this case, Before the court can exercise jurisdiction over Harvest, the court must have proof that Harvest was notified of the suit. jurisdiction as regards to law can be explained as the right a case has over a particular subject matter. And all categories of court can exercise this power to adjudicate cases
The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $24,300; other assets, $147,300; liabilities, $48,200; Morgan, capital, $58,100; Rockwell, capital, $65,300. The other assets were sold for $123,900. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling
Answer:
$66,666.67
Explanation:
The amount available for sharing is the cash and the proceeds from sales of assets minus liabilities.
= $24,300 + $123,900 - $48,200
=$148,200 - $48,200
=$100,000
Morgan and Rockwell share losses in the ratio of 2:1. meaning Morgan taken 2/3 of shareable amounts
Morgan will get
=2/3 x $100,00
=$66,666.67
In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.
Select one:
a. fiscal; monetary
b. monetary, monetary
c. monetary, fiscal
d. fiscal; fiscal
= fiscal; monetary
With an expansionary fiscal policy, the interest rate rises, while with an expansionary monetary policy, the interest rate falls.
What is an Expansionary fiscal & monetary policy?This is when an increases in money supply is stimulated by raising spending or cut taxes while the latter is when the cost of borrowing i reduced to stimulate an economy.
Therefore, the Option A is correct.
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Trade sanctions were often enacted as expressions of U.S. revulsion against nations for their internal practices, such as human rights abuses or poor labor or environmental standards.
a) true
b) false
Answer: True
Explanation:
As the proverbial 'Global policeman', the U.S. enacts sanctions on countries that it believes are acting in a way that is not beneficial to her own people or the plant at large.
This includes human rights abuses, poor labor standards and environmental standards amongst others. These sanctions are meant to hurt the sanctioned country so that they right their wrongs. Countries such as Burma are under trade sanctions due to their poor human rights record in dealing with Rohingya Muslims.
The statement is true that trade sanctions were often enacted as expressions of U.S. revulsion against nations for their internal practices, such as human rights abuses or poor labor or environmental standards.
What are trade sanctions?Trade sanctions are used as a tool for a penalty in order to restrict one nation's actions. It is initiated by the US when it started to protect its domestic market from abuse of foreign markets.
Therefore, it is also imposed to make a country act to certain international standards in different aspects for ensuring right and wrong activities in all nations.
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The interest rate will increase as a result of:
Select one:
a. decrease in minimum lending rate
b. a reduction in income
c. an open market purchase of bonds by the central bank
d. Increase in tax rate
= decrease in minimum lending rate
The interest rate will increase as a result of decrease in minimum lending rate.
What will lead to an increase in the interest rate?Interest rate can be described as the cost of borrowing. It is the rate that borrowers charge lenders for the use of their funds.
When the demand for money increases, the interest rate will increase. When there is a decrease in the minimum lending rate, there would be an increase in the demand for money. As a result, interest rate would increase.
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The correct option is A when the rate of interest increases and there is a decrease in the minimum lending rate.
What is needed to increase the interest rate?It is a money-controlling technique to maintain the flow of money in the market. When there is excess money in the market, this measure can be used.
Thus, option A is correct the interest rate can be increased when there is excess money in the market, whereas the interest rate can be decreased when there is less money in the market in terms of providing loans at a reasonable rate.
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Sprague Company has been operating for several years, and on December 31, 207, presented the following balance sheet.
SPRAGUE COMPANY BALANCE SHEET DECEMBER 31, 2014
Cash $40,000
Accounts payable $80,000
Receivables 75000
Mortgage payable 140,200
Inventory 95000
Common stock ($1 par) 150,000
Plant assets (net) 220,000
Retained earnings 60,000 430000
The net income for 2017 was $25,000. Assume that total assets are the same in 2016 and 2017.
Compute each of the following ratios. for each of the four, indicate the manner in which it is computed and its significance as tool in the analysis of the financial soundness of the company
a) Current ratio
b) Acid-test ratio
c) Debt to assets ratio
d) Return on asset
Answer:
A. Current Ratio= 2.63
B. Acid-Test Ratio = 1.44
C. Debt to Assets Ratio 51.16%
D. Return on assets 5.81%
Explanation:
a. Calculation forn Current Ratio
First step is to Calculate the Total Current Assets
Cash 40,000
Receivables 75,000
Inventory 95,000
Total Current Assets 210,000
Now let calculate Current Ratio
Current Ratio= Current Assets / Current Liabilities
Current Ratio=210,000/80,000
Current Ratio= 2.63
b Calculation for Acid-Test Ratio
Acid-Test Ratio=(Current Assets - Inventory) / Current Liabilities
Acid-Test Ratio =(210,000-95,000)/80,000
Acid-Test Ratio =115,000/80,000
Acid-Test Ratio = 1.44
c. Calculation for Debt to Assets Ratio
First step is to calculate total Debt
Accounts payable 80,000
Mortgage payable 140,000
Total Debt 220,000
Now let calculate the Debt to Assets Ratio
Debt to Assets Ratio= Total Debt/ Total Assets
Debt to Assets Ratio=220,000/430,000
Debt to Assets Ratio= 51.16%
d. Calculation for Return on assets
Return on assets= Net Income/ Average Assets
Return on assets=25,000/430,000
Return on assets 5.81%
Tax principles Smoking cigarettes is a leading cause of many diseases. Suppose the government has opened several public clinics that treat smoking-related diseases and is trying to decide how to fund these clinics. One suggestion is to raise the funds for the public clinics with a cigarette tax. This tax follows:______
Answer: The ability to pay principle.
Explanation:
The ability to pay can be defined as one of the principles of taxation. According to this principle people who earn more income are expected to pay more tax as compared to those who earn less income.
Smoking can be defined as the leading cause of many chronic diseases, one of them is hypertension, chronic heart diseases, and others. The ability to pay principle can be imposed on smokers as cigarette tax to obtain the tax for develop the clinics that can help in smoking related diseases. This will result in deduction of tax from smokers which get good income.
Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 12 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 35 percent.
a. What is Mullineaux's WACC?
b. The companies president has approached you about Mullineaux's capital structure. He wants to know why the company doesn't use more preferred stock financing because it costs less than debt. What would you tell the president?
Answer:
a. Mullineaux's WACC = 0.60*12 + 0.05*5 + 0.35*7*(1 - 0.35)
WACC = 7.2 + 0.25 + 0.35*7*0.65
WACC = 7.2 + 0.25 + 1.5925
WACC = 9.0425%
WACC = 9.04%
b. After tax cost of debt = 7*(1 - 0.35)
After tax cost of debt = 7*0.65
After tax cost of debt = 4.55%
So since after tax cost of debt of 4.55% is less than the preferred cost of 5%, company should use debt in its capital structure.
What kind of pricing is based upon the perception of value and can command a higher price point?
Premium pricing
Economy pricing
Psychological pricing
Pricing for penetration
Answer: economy
Explanation:
Scientist of OB recognize that
organisations are not static but
dynamic and_________
Select one
a. Processing
b. Systematic
c. Researching
d. Ever changing
= Ever changing
Explanation:
the answer is = Ever changing
Discussion: Resistance to change is a normal everyday aspect in the workplace. Note what happens to the organizational climate when this resistance occurs and any tactics to reduce negative connotations when dealing with change.
Explanation:
Resistance to change occurs when there is a change in the way operations are carried out in an organization. These changes can be the implementation of new policies and procedures, system, work design, etc.
This situation can cause conflict, insecurities and create a negative organizational environment that hinders the development and productivity of employees. Generally resistance to changes occurs due to the lack of sufficient information that the employee has about the new changes that will happen in the company, which can cause insecurity, fear of losing his job, etc.
For this situation to be avoided, there needs to be a complete explanation of how the changes will occur and why it will be beneficial for the company and the work. It is necessary that the change takes place in an adaptive way, that there is necessary training and availability of information through several channels so that all employees are integrated with the news.
