An increase in government spending, G, when c3 = 0, will have a positive impact on household consumption, C, in the new equilibrium compared to point E. Analytically, this can be understood by examining the changes in the aggregate expenditure and income in the economy. Graphically, it can be represented by a shift in the aggregate expenditure line upward, leading to a higher level of equilibrium output and consumption.
When c3 = 0, it means that all additional income earned by households is saved rather than consumed. In this case, an increase in government spending, G, will directly impact the aggregate expenditure (AE) in the economy. The equation for AE is AE = C + I + G, where C represents household consumption, I represents investment, and G represents government spending.
An increase in G will shift the AE line upward, as government spending is a component of aggregate expenditure. This shift will result in a higher level of equilibrium output, as the new AE line intersects the 45-degree line at a higher point. With higher output, there will be an increase in household income, leading to higher consumption.
Graphically, the upward shift of the AE line represents an increase in government spending, while the higher equilibrium output level indicates increased consumption. The distance between the new equilibrium point and point E represents the change in household consumption due to the increase in government spending.
Therefore, in the new equilibrium, compared to point E, household consumption will be higher as a result of the increase in government spending, G.
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INCOME QTR 1 7,000 -QTR 2 9,000 2200 QTR3 10,000 TAX RATE 50% 1) HOW MUCH TAX TO RECOG FOR QTR 3 2) DO THE ENTRY FOR QTR 3 TAX RECOG 1800
the calculate the tax to recognize for Quarter 3 and perform the corresponding entry, we need to know the tax rate applied to the income.
Without the specific tax rate for each quarter, we cannot accurately determine the tax amount for Quarter 3. Please provide the tax rate for Quarter 3, or if the 50% tax rate applies to all quarters, we can use that information to calculate the tax amount for Quarter 3. Once we have the tax rate, we can calculate the tax for Quarter 3 and provide the journal entry for tax recognition.
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The Wholesale company purchases equipment for $60,000 on April 1, 2017. It estimates that the equipment will have a salvage value of $10,000 and its useful life will be 5 years. Assuming the company's accounting year ends on December 31 of each year, what will be the Depreciation Expense for the years 2017 and 2018 be, using straight-line depreciation method? Year 2017: $ Year 2018: $ Calculation:
Year 2017: Depreciation Expense = $10,000,
Year 2018: Depreciation Expense = $10,000
How to calculate depreciation expense?To calculate the annual depreciation expense using the straight-line depreciation method, we need to determine the depreciable cost of the equipment and divide it by the useful life in years.
Depreciable cost = Cost of equipment - Salvage value
Depreciable cost = $60,000 - $10,000
Depreciable cost = $50,000
1. Year 2017:
Depreciation Expense for 2017 = Depreciable cost / Useful life
Depreciation Expense for 2017 = $50,000 / 5 years
Depreciation Expense for 2017 = $10,000
2. Year 2018:
Depreciation Expense for 2018 will be the same as the previous year since straight-line depreciation allocates equal amounts over the useful life.
Depreciation Expense for 2018 = $10,000
Calculation:
Year 2017: Depreciation Expense = $10,000
Year 2018: Depreciation Expense = $10,000
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Hulk Limited produces and sells wheelie rubbish bins to local authorities and recycling companies. The company has the capacity to produce 50,000 units but annual production and demand are currently limited by the market to 30,000 wheelie rubbish bins per annum. The total costs of producing 30,000 wheelie rubbish bins are as follows: £ Direct materials 420,000 Direct labour 99,000 Variable overhead 81,000 Fixed overhead 300.000 Total cost of 30,000 wheclic rubbish bins 900,000 The selling price of each wheelie rubbish bin is £40. Required a) Calculate the break-even point and the current margin of safety. [5 marks] b) An order is received from Stark Waste Disposal for 2,000 wheelie rubbish bins at a price of £28 each. Explain. whether Hulk Limited should accept this order or not and what possible adverse consequences there would be in accepting this new order. [10 marks] e) Hammer Industries has approached the company with a view to buying the entire annual production of 50,000 wheelie rubbish bins that the company can produce as part of a long term supply contract which will run for several years. However, if this order is accepted the selling price will fall to £34 per wheelie rubbish bin. The directors are keen to accept this order but are wondering if there are any potential disadvantages they should consider. Using any calculations required, advise the directors whether this order should be accepted. [5 marks] a) Outline the assumptions upon which the marginal costing approach to decision making is based. [5 marks]
To calculate the break-even point and the current margin of safety, we need to determine the contribution margin per unit.
Contribution margin per unit = Selling price per unit - Variable cost per unit
Given:
Selling price per unit = £40
Variable cost per unit = Direct materials + Direct labour + Variable overhead
= £420,000 + £99,000 + £81,000
Total cost of 30,000 wheelie rubbish bins = £900,000
Break-even point (in units) = Fixed overhead / Contribution margin per unit
Margin of Safety (in units) = Actual sales - Break-even point
To determine whether Hulk Limited should accept the order from Stark Waste Disposal for 2,000 wheelie rubbish bins at a price of £28 each, we need to calculate the contribution per unit for this order and consider the potential adverse consequences.
Contribution per unit = Selling price per unit - Variable cost per unit
Total contribution for the order = Contribution per unit * Number of units in the order
We also need to consider whether accepting this order will affect the company's overall profitability, production capacity, or potential loss of future business.
To advise the directors on whether Hulk Limited should accept the order from Hammer Industries for the entire annual production of 50,000 wheelie rubbish bins at a price of £34 per unit, we need to calculate the contribution per unit for this order and consider any potential disadvantages.
Contribution per unit = Selling price per unit - Variable cost per unit
Total contribution for the order = Contribution per unit * Number of units in the order
We also need to consider whether accepting this order will lead to a significant decrease in profitability, the company's ability to meet other customer demands, or potential long-term consequences.
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Both axes range from 0 to 3,500 in increments of 500. Two intersecting, rising lines, labeled, 45 degrees, and C are plotted. The line labeled 45 degrees starts at (0, 0), and ends at (3,500, 3,500). The line labeled C, starts at (0, 500), intersects the first line at (2,000, 2,000), and ends at (3,500, 3,000). All values are estimated.
In the figure above, saving is positive at all income levels
In the given figure, saving is positive at all income levels. The graph shows two intersecting, rising lines, labeled 45 degrees, and C plotted on both axes ranging from 0 to 3,500 in increments of 500. The line labeled 45 degrees starts at (0, 0), and ends at (3,500, 3,500).
The line labeled C, starts at (0, 500), intersects the first line at (2,000, 2,000), and ends at (3,500, 3,000). All values are when the two lines intersect at the point (2,000, 2,000), it shows that at this level of income, saving is zero. Saving is positive above the point of intersection, and it indicates that people are saving more than they are consuming at these income levels.
Income and saving are directly proportional, and as income increases, the saving also increases. Therefore, it is concluded that saving is positive at all income levels in the given graph. In the given figure, saving is positive at all income levels
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An investment is be made with an initial capital of PHP 842693. It is expected that there will be an annual revenue for this investment of PHP 378213; while it also entitled to an annual operations nd maintenance cost of PHP 37315 and annual taxes of PHP 7289. Its salvage value at the end of its useful life (10 years) is PHP 13122. This investment has a MARR of 18% (same as interest rate). Determine the Annual Worth of the investment using Annual Worth Method. Given an interest rate of 4.3% compounded quarterly and the first payment of Php9697 was made at the end of the first quarter: Determine the present worth of the 12 quarterly payments wherein the succeeding quarterly payments increase by 7% of the first payment. (pls use complete decimal places within the solutions)
We can determine the annual worth of the investment. Annual Worth = PHP 378,213 - PHP 37,315 - PHP 7,289 + PHP 13,122 / (1 + 0.18)^10. Present Worth = PHP 9,697 × (1 - (1 + 0.043 / 4)^-12) / (0.043 / 4)
Annual Worth of the investment using Annual Worth Method:
To calculate the Annual Worth of the investment, we need to consider the annual revenue, annual operations and maintenance cost, annual taxes, salvage value, and the MARR (Minimum Acceptable Rate of Return) of 18%.
Annual Worth = Annual Revenue - Annual Operations and Maintenance Cost - Annual Taxes + Salvage Value (present worth)
Annual Revenue = PHP 378,213
Annual Operations and Maintenance Cost = PHP 37,315
Annual Taxes = PHP 7,289
Salvage Value (present worth) = PHP 13,122 / (1 + 0.18)^10 (to bring it to the present value)
Annual Worth = PHP 378,213 - PHP 37,315 - PHP 7,289 + PHP 13,122 / (1 + 0.18)^10
Present Worth of the 12 quarterly payments:
To calculate the present worth of the quarterly payments, we will use the formula for the present worth of an annuity:
Present Worth = Payment × (1 - (1 + interest rate / number of periods)^-number of periods) / (interest rate / number of periods)
First payment = PHP 9,697
Interest rate = 4.3% (converted to decimal: 0.043)
Number of periods = 12 (since there are 12 quarterly payments)
Present Worth = PHP 9,697 × (1 - (1 + 0.043 / 4)^-12) / (0.043 / 4)
Succeeding quarterly payments increasing by 7%:
To calculate the succeeding quarterly payments, we will increase each payment by 7% of the first payment.
First payment = PHP 9,697
Increase percentage = 7% (converted to decimal: 0.07)
Second payment = PHP 9,697 + PHP 9,697 × 0.07
Third payment = PHP 9,697 + PHP 9,697 × 0.07 × 2
Fourth payment = PHP 9,697 + PHP 9,697 × 0.07 × 3
And so on, until the twelfth payment.
By applying the Annual Worth Method, we can determine the annual worth of the investment. Additionally, by using the present worth formula, we can calculate the present worth of the 12 quarterly payments, considering the increasing pattern.
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TRUE / FALSE. It only makes sense and is confirmed by the the NYS Penal Law that someone may use duress as a defense, even where the person that wants to use the defense, recklessly or negligently places him/herself in a situation in which it is probable that he/she will be subjected to duress.
TRUE It only makes sense and is confirmed by the NYS Penal Law that someone may use duress as a defense, even where the person that wants to use the defense, recklessly or negligently places him/herself in a situation in which it is probable that he/she will be subjected to duress.
The NYS Penal Law recognizes duress as a defense in certain circumstances. The defense can be used if the accused committed the crime as a result of being threatened with imminent physical harm or death. However, the defense may not be available if the accused recklessly or negligently placed themselves in a situation where they were likely to be subjected to duress.
The defense of duress is recognized by the NYS Penal Law and is available to defendants in certain circumstances. According to the law, a person may use duress as a defense if they committed the crime as a result of being threatened with imminent physical harm or death. In order to use this defense, the threat must be immediate and serious, and the accused must have had no other reasonable option but to commit the crime. However, there are some limitations to the duress defense. For example, the defense may not be available if the accused recklessly or negligently placed themselves in a situation where they were likely to be subjected to duress. In other words, if the accused voluntarily put themselves in a situation where they knew they were likely to be threatened or coerced into committing a crime, they may not be able to use duress as a defense.
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Question 4 In an accretion/dilution analysis of an acquisition,
if the purchase price exceeds the book value of the target’s
assets, discuss the key components of the balance sheet that will
be adju
In an accretion/dilution analysis of an acquisition, when the purchase price exceeds the book value of the target's assets, certain components of the balance sheet will be adjusted to reflect the impact of the acquisition. The key components that will be adjusted include:
Assets: The assets of the target company will be adjusted to reflect their fair value. This may involve revaluing tangible assets such as property, plant, and equipment, as well as intangible assets like patents or trademarks. The adjustment will increase the value of the assets to align with the purchase price.
Liabilities: The liabilities of the target company will also be adjusted to reflect their fair value. This can include reassessing the value of outstanding debts, provisions, or contingent liabilities. The adjustment will ensure that the liabilities are accurately reflected based on the purchase price.
Goodwill: If the purchase price exceeds the fair value of the target company's identifiable net assets, the excess amount is recognized as goodwill. Goodwill represents the value of intangible assets such as brand reputation, customer relationships, or intellectual property. It is an asset on the acquirer's balance sheet and is subject to periodic impairment testing.
Equity: The equity section of the target company's balance sheet may be adjusted to reflect any changes resulting from the acquisition. For example, if the acquisition involves issuing equity to the target company's shareholders, the equity section will be adjusted accordingly.
Overall, the adjustments in an accretion/dilution analysis aim to reflect the fair value of the target company's assets and liabilities based on the purchase price. These adjustments help in assessing the impact of the acquisition on the acquirer's financial position, earnings per share, and other key financial metrics.
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Over the past 5 weeks, demand for wine at Winston's Winery has been 2400, 1300, 2700, 1900, and 800 bottles. Winston has placed weekly orders for glass bottles of 2600, 1000, 3000, 2000, and 700 units. (10 Points) i. What is the variance of demand for Winston's Winery? ii. What is the variance of orders from Winston's Winery for glass bottles? iii. What is the bullwhip measure for glass bottles for Winston's Winery? iv. Is Winston's Winery providing an amplifying or smoothing effect? b) Century Outlet has total end-of-year assets of $10 million. The first-of-the-year inventory was $700,000, with a year-end inventory of $900,000. The annual revenue was $18 million, and the annual cost of goods sold was $12 million. The owner wants to evaluate his supply chain performance. Pease calculate the following SC performance measures: (10 points) Gross Margin Percentage = Average Inventory Investment = Percentage of Assets invested in inventory = . Inventory turnover = Weeks of supply =
a)
i. The variance of demand for Winston's Winery is 766,800 bottles.
ii. The variance of orders from Winston's Winery for glass bottles is 763,600 units.
iii. The bullwhip measure for glass bottles for Winston's Winery is 3.74.
iv. Winston's Winery is experiencing an amplifying effect.
i. To calculate the variance of demand, we need to find the average demand and then subtract each week's demand from the average, square the result, and calculate the average of the squared differences. The variance of demand is a measure of the dispersion or variability of the demand data points.
ii. Similarly, to calculate the variance of orders, we find the average order quantity and then calculate the squared differences between each week's order and the average. The variance of orders measures the variability in the ordering behavior of Winston's Winery.
iii. The bullwhip measure quantifies the amplification of demand variability as we move upstream in the supply chain. It is calculated as the variance of orders divided by the variance of demand. In this case, the bullwhip measure for glass bottles is 3.74, indicating a significant amplification of demand variability.
iv. An amplifying effect occurs when demand variability increases as we move upstream in the supply chain. In this case, the bullwhip measure greater than 1 suggests that Winston's Winery is experiencing an amplifying effect. This amplification can lead to inefficiencies, such as inventory imbalances and increased costs, within the supply chain.
b)
Gross Margin Percentage = (Revenue - Cost of Goods Sold) / Revenue * 100
Average Inventory Investment = (Beginning Inventory + Ending Inventory) / 2
Percentage of Assets invested in inventory = (Average Inventory Investment / Total Assets) * 100
Inventory turnover = Cost of Goods Sold / Average Inventory Investment
Weeks of supply = 52 weeks / Inventory turnover
These performance measures evaluate the efficiency and effectiveness of Century Outlet's supply chain operations, including profitability, inventory management, and asset utilization.
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How Behavioral economics help HR to decide which employee to
take to work? (Experience of workers how they affect
employer’s decision)
Behavioral economics helps HR in the employee selection process by considering the impact of individuals' experiences on employers' decisions.
It recognizes that human decision-making is influenced by biases, heuristics, framing, social influence, and risk preferences. HR can leverage this understanding by:
Mitigating biases: Being aware of cognitive biases, such as the halo effect or confirmation bias, HR can implement strategies to minimize their influence during candidate evaluation.
Framing information: HR can present job postings, interviews, and performance evaluations in a way that highlights relevant skills and experiences to shape candidates' perceptions.
Considering risk preferences: Understanding that individuals have different risk preferences, HR can assess how candidates' risk attitudes may impact their decision-making in roles that involve risk-taking or handling uncertainty.
Assessing social fit: Recognizing the impact of social dynamics, HR can evaluate candidates' compatibility with the team and organization culture, considering factors like collaboration skills and cultural fit.
Using incentives and nudges: By employing incentives and nudges, HR can influence desired behaviors among employees, creating a work environment that encourages productivity and positive outcomes.
Incorporating behavioral economics principles into HR practices allows organizations to make more informed decisions in selecting employees. It aligns the experiences, qualities, and preferences of candidates with job requirements and the organizational context, leading to better employee fits and increased overall performance.
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How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an alergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of ink, an important input in pen production, has increased considerably On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther Scenario 1 10 D Demand -0- Supply per penj ing SUDES la E O 126 PM VI/2022 ED PRICE (Dollars per pen) 10 9 B 2 1 + 0 01 2 Scenario 1 Supply Demand 8 3 4 6 7 QUANTITY (Millions of pens) 9 10 Demand Supply CENGAGE MINDTAP Homework (Ch 04) # Next, complete the following graph, labeled Scenario 2 by shifting the supply and demand curves in the same way that you did on the scenario 1 graph 2 Scenario 2 -0 Demand 9 PRICE (Dollars per per Supply Demand H a Supply Q Searth this course 0x O la N s 4 P >. + W OT M 126 PM D 5/28/2022 EBD O Homework (Ch 04) LUNY (Mors or pres) Compare both the Scenario 1 and Scenano 2 graphs, Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine, Change in Equilibrium Objects Scenario 2 Scenario 1 When Shift Magnitudes Are Unknown Equilibrium Object Price Quantity True or False: When both the demand and supply curves shift, you can always determine the effect on price and quantity without knowing the magnitude of the shifts. O True & C O D 930 A-Z 5 لمية Curs +0 M + 126 PM 5/28/2012 CI
changes in the demand and supply curves for pens will result from a rise in the number of pupils switching from pencils to pens due to allergies and an increase in the price of ink (a component used to make pens).
As more students choose pens over pencils, the demand curve for pens will move to the right, indicating an increase in demand. As the cost of producing pens increases due to the increased ink price, the supply curve for pens will shift to the left, suggesting a drop in supply.The graph for Scenario 2 shows the same changes in supply and demand as it did for Scenario 1. Pencil demand swings to the right, indicating an increase in
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gasoline prices rose globally and in the united states in 2008. describe and illustrate the impact on the market for compact fuel-efficient cars, such as the toyota prius.
Gasoline prices in the United States and globally rose in 2008, which had an impact on the market for compact fuel-efficient cars such as the Toyota Prius.
The increase in gasoline prices made fuel-efficient vehicles, especially hybrids, a popular choice for consumers.
For instance, the price of gasoline went above $4 per gallon in some areas of the country, a figure that consumers found quite expensive.
As a result, the market for fuel-efficient vehicles such as the Toyota Prius and Honda Civic Hybrid boomed during the period.
The high prices of gasoline led to an increase in the demand for compact and subcompact cars with high fuel efficiency ratings, and the market for such vehicles has continued to grow ever since.
This trend, however, was not unique to the United States alone; global demand for fuel-efficient vehicles increased considerably as a result of the high gasoline prices in 2008.
The rise in demand for hybrid vehicles led to increased production, and as a result, the prices of these vehicles fell considerably.
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When Congress was constructing the intellectual property system, why did they choose to adopt such a significant departure (the grant of monopolies) from the economic theory that forms the basis of our economic system?
Answer:
When Congress was constructing the intellectual property system, they chose to adopt the grant of monopolies as a departure from the economic theory for several reasons:
Explanation:
Encouragement of Innovation: The primary objective of intellectual property laws, such as patents and copyrights, is to encourage innovation and creativity. By granting exclusive rights to inventors and creators, Congress aimed to provide them with an incentive to invest time, resources, and effort into developing new ideas, inventions, and artistic works. The grant of monopolies ensures that individuals or companies have a limited period of exclusive control over their creations, allowing them to profit from their innovation and be motivated to continue producing new and valuable intellectual property.
Balancing Private and Public Interests: The intellectual property system aims to strike a balance between the interests of creators and the broader public. By granting temporary monopolies, Congress sought to reward inventors and creators for their efforts while also ensuring that the public benefits from the dissemination of knowledge and the advancement of technology and culture. The exclusivity granted by intellectual property rights allows creators to have a period of exclusive control, but it also ensures that eventually, the knowledge or work will enter the public domain, benefiting society as a whole.
Economic Considerations: The grant of monopolies through intellectual property rights also serves economic purposes. It provides a means for creators and inventors to monetize their innovations, attracting investment and facilitating economic growth. By allowing individuals or companies to profit from their intellectual property, it incentivizes research and development, encourages entrepreneurship, and fosters competition and innovation within industries.
Incentivizing Disclosure and Knowledge Sharing: One of the underlying principles of the intellectual property system is the idea of disclosure. By granting exclusive rights, inventors and creators are encouraged to disclose their innovations to the public in exchange for the monopoly. This disclosure helps disseminate knowledge, facilitates further research and development, and enables others to build upon existing ideas, fostering progress and advancement.
While the grant of monopolies may deviate from certain economic principles, such as perfect competition and free market dynamics, it is a deliberate departure designed to address specific societal and economic objectives related to innovation, creativity, and the balance between private and public interests.
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Forever 21 is expected to pay an annual dividend of $3.42 per share in one year, which is then expected to grow by 8% per year. The required rate of return is 14%.
What is the current stock price if the annual dividend of $3.42 his about to be paid? (i.e. paid tomorrow or later today)
The current stock price of Forever 21 can be determined using the dividend discount model (DDM).
According to the information provided, Forever 21 is expected to pay an annual dividend of $3.42 per share in one year, which will then grow by 8% per year. The required rate of return for investors is 14%. By applying the DDM formula, we can calculate the current stock price.
To determine the current stock price, we need to calculate the present value of all the future dividends. The formula for the present value of a growing perpetuity is:
PV = D / (r - g),
where PV is the present value, D is the dividend, r is the required rate of return, and g is the growth rate.
In this case, the dividend in one year is $3.42, the required rate of return is 14%, and the growth rate is 8%. Plugging these values into the formula, we can calculate the present value:
PV = $3.42 / (0.14 - 0.08) = $3.42 / 0.06 = $57.
Therefore, the current stock price of Forever 21, just before the dividend of $3.42 is paid, is approximately $57 per share. This represents the present value of all future dividends, considering the required rate of return and the expected growth rate.
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Marketing channel management and supply chain management are virtually the same. O True False
Marketing channel management and supply chain management are not the same. False
Are marketing channel management and supply chain management synonymous?Marketing channel management and supply chain management are related concepts but are not the same. While both involve the movement and distribution of goods and services, they focus on different aspects of the overall business process.
Marketing channel management primarily deals with the distribution and promotion of products or services to the end consumer. It involves activities such as selecting and managing distribution channels, establishing relationships with intermediaries, and ensuring effective communication and coordination within the channel.
On the other hand, supply chain management encompasses a broader scope, involving the entire network of activities and processes required to deliver products or services to customers. It encompasses the planning, sourcing, manufacturing, logistics, and delivery aspects of the business, with a focus on optimizing efficiency, reducing costs, and enhancing customer satisfaction.
While marketing channel management is a subset of supply chain management, it specifically addresses the marketing and distribution aspects within the overall supply chain. It is essential for businesses to effectively manage both marketing channels and supply chains to ensure seamless product delivery, customer satisfaction, and overall business success.
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The statement "Marketing channel management and supply chain management are virtually the same" is False.
What is Marketing channel management?Marketing channel management (also known as supply chain management) involves the practice of managing the relationship between manufacturers, distributors, and retailers.
Marketing channel management is a practice that combines organizational and logistical strategies to streamline the flow of goods and services between the manufacturer and consumer, which aids in improving efficiency and lowering costs.
What is Supply Chain Management?Supply chain management (SCM) is the process of overseeing and optimizing the operations involved in the production and distribution of goods and services.
The main goal of supply chain management is to improve the efficiency of the supply chain by reducing costs and improving customer service through the integration of supply chain members and activities.
Marketing channel management and supply chain management are not the same. Supply chain management is a larger concept that encompasses the flow of goods and services from the initial stage to the point of consumption, while marketing channel management refers to the movement of goods and services through a set of intermediaries or middlemen to the final consumer.
Therefore, Marketing channel management and supply chain management are not virtually the same.
Hence, the correct answer is false.
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the monetary amount used to record intercompany transactions is called:
The monetary amount used to record intercompany transactions is called "transfer price."
A transfer price is the price one subsidiary of a company charges another subsidiary for goods or services exchanged between them. It is important to have an appropriate transfer price as it affects the profit margins and tax implications of both subsidiaries involved.
A transfer price is the price at which goods, services, or intellectual property are transferred between two entities within the same company or a group of affiliated companies. These transactions can occur between different departments, divisions, subsidiaries, or branches of a single company or between companies that are part of the same corporate group.
The transfer price is used to determine the value of the transaction and affects the financial statements of both the selling and buying entities. It is important for companies to establish an appropriate transfer price that reflects the fair market value of the goods or services being transferred. This ensures accurate recording of revenues, costs, and profits within the organization.
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1) Introduction of PowerCat by Adabi CANADA (subject:
international business)
2) Company's vision, mission & values (new
zealand) (subject: international business)
3) Target market and positioning
Introduction of PowerCat by Adabi CANADA (subject: international business):
Adabi Canada, a subsidiary of Adabi Holdings, has recently introduced a new product called PowerCat in the Canadian market. PowerCat is a line of energy drinks designed to provide consumers with a boost of energy and vitality. This introduction marks Adabi's entry into the competitive energy drink market, both in Canada and globally. Adabi Canada aims to leverage its expertise in food and beverage production to capture a significant market share and establish PowerCat as a preferred choice among consumers.
The launch of PowerCat aligns with Adabi's strategic objective of diversifying its product portfolio and expanding its presence in international markets. By tapping into the growing demand for energy drinks, Adabi Canada seeks to capitalize on the increasing consumer preference for convenient and functional beverages. The company has invested in extensive research and development to ensure that PowerCat meets the highest quality and safety standards, while offering a unique and refreshing taste experience.
To support the successful introduction of PowerCat, Adabi Canada has implemented a comprehensive marketing and distribution strategy. This includes targeted advertising campaigns, strategic partnerships with retailers, and engaging with consumers through various digital and social media platforms. Adabi Canada is confident that the launch of PowerCat will contribute to its overall growth and enhance its reputation as a trusted provider of innovative and high-quality food and beverage products.
Company's vision, mission & values (New Zealand) (subject: international business):
In New Zealand, the company XYZ has a clear vision, mission, and set of values that guide its business operations and strategic decisions.
Vision: XYZ's vision is to be a leading provider of innovative and sustainable solutions in its industry. The company aims to create a positive impact on society and the environment through its products and services.
Mission: XYZ's mission is to deliver exceptional value to its customers by consistently providing high-quality products that meet their needs and exceed their expectations. The company is committed to continuous improvement, technological innovation, and ethical business practices.
Values: XYZ's core values include integrity, customer focus, teamwork, innovation, and sustainability. These values shape the company's culture and guide its interactions with customers, employees, and other stakeholders. XYZ believes in conducting business with honesty, transparency, and a strong commitment to delivering superior customer experiences. Collaboration and teamwork are fostered to encourage creativity and foster a positive work environment. The company also emphasizes the importance of innovation in driving growth and maintaining a competitive edge. Furthermore, XYZ is dedicated to sustainability and strives to minimize its environmental footprint through responsible practices and the development of eco-friendly products.
Target market and positioning:
When determining its target market and positioning, a company carefully considers the characteristics and preferences of its ideal customers. This information helps the company tailor its marketing strategies and product offerings to effectively reach and meet the needs of its target audience.
For example, a company specializing in outdoor adventure gear might target active individuals who enjoy outdoor activities such as hiking, camping, and rock climbing. These individuals are likely to value durability, functionality, and performance in their gear, and the company would position its products as high-quality, reliable, and suitable for rugged outdoor environments.
The target market can be defined based on various factors such as demographics (age, gender, income), psychographics (lifestyle, interests, values), and behavior (buying habits, usage patterns). Market research and analysis play a crucial role in identifying the target market and understanding its preferences, allowing the company to develop targeted marketing campaigns and product offerings.
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If the loanable funds market is in equilibrium, then we know that savings equals consumption. investment equals consumption. investment equals savings. real interest rate equals nominal interest rate. O government spending equals tax revenue.
If the loanable funds market is in equilibrium, then we know that investment equals savings. Hence, the correct option among the provided alternatives is "investment equals savings."In economics, the loanable funds market is a hypothetical market that shows how the supply and demand for loans (also known as credit) interact to establish the interest rate and the amount of borrowing that takes place.
The supply of loanable funds comes from people's savings, and the demand for loanable funds comes from people and businesses who want to borrow money to invest in capital projects. In equilibrium, the supply of loanable funds equals the demand for loanable funds.When the loanable funds market is in equilibrium, it indicates that the economy's resources are being used effectively. An equilibrium interest rate is the market-clearing rate, which balances the supply and demand for loanable funds. Therefore, the equilibrium interest rate balances the supply and demand for loanable funds.
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A corporation can finance its assets by each of the following except: a. Borrowing. b. Issuing stock c. Creating and keeping net income. d. Paying dividends.
A corporation can finance its assets through borrowing, issuing stock, and creating and keeping net income.
Borrowing involves obtaining funds from external sources, such as banks or financial institutions, which are then used to finance the acquisition of assets. Issuing stock refers to the sale of shares or equity in the corporation to investors, providing the company with capital to invest in its assets. Creating and keeping net income is another method of financing, where the corporation generates profits from its operations and retains those earnings to reinvest in its assets.
However, paying dividends does not directly finance assets. Dividends are distributions of profits to shareholders, providing them with a return on their investment. While dividends are typically funded from net income, they do not contribute directly to asset financing but rather reward shareholders for their ownership.
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(figure: long-run average cost) use figure: long-run average cost. this firm has _____ in the output region from 0 to a.
Long-run average cost. This firm has economies of sale in the output region from 0 to a.
The long-run average cost (LRAC) curve in the output region from 0 to a for a firm can be determined as per the following explanation:
In the long run, all input costs are variable, including capital expenditures on plant and equipment. Because capital investments entail a fixed cost, the long-run average cost (LRAC) curve reflects the entire cost curve, including both fixed and variable costs. In other words, in the long term, the company is not constrained by any factor and may alter all of its production inputs. The LRAC, therefore, reflects the lowest average cost of producing different levels of output over the long term, after all inputs are variable. It is a u-shaped curve, just like the short-run average total cost (SRATC) curve, but it is flatter at the bottom since it encompasses both fixed and variable expenses. As the output level increases from 0 to point a, the long-run average cost curve falls steeply initially and then flattens out at a certain point a. The LRAC curve initially slopes downward as the company expands output production by utilizing economies of scale. There is a point beyond which the LRAC curve becomes flatter because of economies of scale being exhausted or diseconomies of scale taking over, resulting in a flat region of output as output increases, signifying minimum average cost of production for that level of output.
Therefore, this firm has a decreasing long-run average cost in the output region from 0 to a.
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what are David Einhorn's recommendations for Apple's
cash policy? And reasons why
? using case of " Apple, Einhorn and iPrefs"
David Einhorn, a prominent hedge fund manager and founder of Greenlight Capital, made recommendations for Apple's cash policy, specifically proposing the issuance of preferred shares called "iPrefs."
His recommendations were outlined in his open letter to Apple shareholders titled "Apple, Einhorn, and iPrefs" in February 2013.
Einhorn's main recommendation was for Apple to distribute perpetual preferred shares to its shareholders, which he referred to as iPrefs. These iPrefs would have a fixed dividend rate and would be designed to provide a steady income stream to shareholders. Einhorn believed that by implementing this plan, Apple could unlock shareholder value and address concerns about its large cash holdings.
The reasons behind Einhorn's recommendations were as follows:
Unlocking shareholder value: Einhorn believed that Apple's significant cash reserves were not being efficiently utilized and were not generating sufficient returns for shareholders. By distributing iPrefs, Apple would return capital to shareholders in the form of a steady income stream, potentially increasing the value of their investment.
Providing a stable income: iPrefs would offer shareholders a fixed dividend rate, providing a predictable and consistent income stream. This could attract income-focused investors and potentially lead to a higher valuation for Apple's shares.
Addressing concerns about cash hoarding: Apple had accumulated a substantial amount of cash on its balance sheet, leading to criticism from investors who felt that the cash was not being deployed effectively. Einhorn's proposal aimed to address these concerns by distributing a portion of the cash reserves to shareholders while allowing Apple to retain enough cash for its operational and strategic needs.
Enhancing shareholder activism: Einhorn's proposal also sought to increase shareholder activism and give shareholders more influence in the company's decision-making process. By distributing iPrefs, shareholders would have a stronger voice and potentially greater involvement in shaping Apple's cash management policy.
It's important to note that while Einhorn's recommendations garnered attention and sparked a broader debate on Apple's cash policy, they did not ultimately result in any significant changes to the company's approach. Apple has continued to manage its cash reserves through a combination of dividends, share buybacks, and strategic investments.
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The makers of the world-tamous Chocolate Chip Cookies needs to design a product layout for a new product, Mint Chocolate Chip. The company plans to use this new production line eight hours a day in order to meet projected demand of 1,440 cases per day. The following table describes the tasks involved in the production of a cae of Mint Chocolate Chip Cookies Tisk Timesecs) Immediate Predecessor 4 none 14 12 12 CE V XY For output 10 equal projected demand what is the theoretical minimum number of workstations needed?
The total task time is 4 + 14 + 12 + 12 + 10 = 52 seconds. Which is equivalent to 28,800 seconds, the cycle time is 28,800 / 1,440 = 20 seconds.To calculate theoretical minimum number of workstations: 52 / 20 = 2.6. So, the theoretical minimum number of workstations needed is 3.
"Equivalent" refers to something that is equal or identical in value, meaning, or function to something else. It indicates that two or more things are essentially the same or interchangeable. In various contexts, "equivalent" can be used to describe different concepts. For example, in mathematics, two expressions or equations are considered equivalent if they have the same value or meaning. In chemistry, equivalent can refer to the amount of a substance that can react or combine with a given amount of another substance. In language, an equivalent word or phrase is one that has a similar or identical meaning to another word or phrase.
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The carrier may lose the benefit of the financial limitation of his
liability in certain circumstances namely "wilful misconduct" or
"recklessness". Discuss.
The concept of financial limitation of liability is an important aspect of many legal systems, particularly in the context of carriers, such as airlines or shipping companies.
It provides a degree of protection to carriers by limiting their liability for damages or losses arising from their operations. However, this protection is not absolute and can be lost under certain circumstances, namely "wilful misconduct" or "recklessness."
Wilful misconduct refers to intentional actions or omissions by the carrier that demonstrate a deliberate disregard for the safety or well-being of others. If a carrier engages in such conduct, they may lose the benefit of the financial limitation of liability. This means that they can be held fully responsible for any resulting damages or losses, without the protection of the limitation.
Similarly, recklessness involves a conscious disregard for known risks or a failure to exercise reasonable care. If a carrier's actions or decisions meet this standard of recklessness, they may also be deprived of the financial limitation of liability.
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compute the following financial ratios for this year: 1. times interest earned ratio. 2. debt-to-equity ratio. 3. equity multiplier.
Financial ratios are used by analysts, investors, and creditors to evaluate the financial stability and profitability of a company. The following financial ratios can be computed for this year:1. Times Interest Earned RatioThe times interest earned (TIE) ratio assesses the ability of a business to meet its interest obligations.
The TIE ratio is computed by dividing the earnings before interest and taxes (EBIT) by the total interest expenses. The TIE ratio formula is as follows:TIE Ratio = EBIT / Total Interest ExpenseFor the present year, the EBIT was $40,000, and the total interest expense was $8,000. Therefore,TIE Ratio = $40,000 / $8,000TIE Ratio = 5.02. Debt-to-Equity RatioThe debt-to-equity (D/E) ratio measures the degree of debt financing compared to equity financing. It shows how much of a company's financing comes from external creditors and how much comes from shareholders. A high D/E ratio implies higher financial leverage, which can boost profits but also raise financial risk. The formula for the D/E ratio is as follows:D/E Ratio = Total Debt / Total EquityFor the present year, the total debt was $90,000, and the total equity was $120,000. Therefore,D/E Ratio = $90,000 / $120,000D/E Ratio = 0.753. Equity MultiplierThe equity multiplier (EM) is used to determine how much of a company's assets are financed by shareholders' equity. A high EM ratio suggests higher financial leverage, which can boost profits but also raise financial risk. The formula for the EM ratio is as follows:EM Ratio = Total Assets / Total EquityFor the present year, the total assets were $420,000, and the total equity was $120,000. Therefore,EM Ratio = $420,000 / $120,000EM Ratio = 3.5In conclusion, the times interest earned ratio for this year is 5.0, the debt-to-equity ratio is 0.75, and the equity multiplier is 3.5.
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4. a fractional reserve banking system is one in which banks hold less than 100 percent of:____
A fractional reserve banking system is a financial system in which banks are required to hold only a fraction or a portion of their customers' deposits as reserves.
The reserve ratio serves as a safeguard to ensure that banks maintain sufficient liquidity to meet customer demands for withdrawals. By keeping only a fraction of deposits in reserve, banks can create money through the process of lending. When a bank makes a loan, the funds are deposited into another bank, and that bank can then lend out a portion of those funds, creating a cycle of lending and deposit creation.
Overall, a fractional reserve banking system allows banks to leverage customer deposits to stimulate economic growth but requires careful management and regulatory oversight to maintain stability and prevent excessive risk-taking.
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During 2019, Home Style's cost of goods sold percentage was 68.2%, and selling and store operating costs were 19.3% of sales. During 2018, Home Style's cost of goods sold percentage was 70.1% while selling and store operating costs were 19.0% of sales. What effect would the change in these percentages have on 2019's gross profit percentage and net profit margin percentage? Multiple Choice The decrease in the cost of goods sold percentage would decrease both the gross profit and net profit margin percentages, but the increase in the selling and store operating costs percentage would increase only the net profit margin percentage. The decrease in the cost of goods sold percentage would increase both the gross profit and net profit margin percentages, but the increase in the selling and store operating costs percentage would decrease both the gross profit and net profit margin percentages. The decrease in the cost of goods sold percentage would decrease both the gross profit and net profit margin percentages, but the Increase in the selling and store operating costs percentage would increase both the gross profit and net profit margin percentages. The decrease in the cost of goods sold percentage would increase both the gross profit and net profit margin percentages, but the increase in the selling and store operating costs percentage would decrease only the net profit margin percentage.
The change in percentages would result in a decrease in both the gross profit and net profit margin percentages.
The decrease in the cost of goods sold percentage would contribute to an increase in the gross profit percentage, while the increase in the selling and store operating costs percentage would have a negative impact on both the gross profit and net profit margin percentages.
The cost of goods sold percentage represents the proportion of sales revenue that is consumed by the cost of goods sold. A decrease in the cost of goods sold percentage implies that the company is able to generate higher gross profit for each dollar of sales. This would result in an increase in the gross profit percentage, as a higher proportion of the sales revenue would be retained as gross profit.
On the other hand, the selling and store operating costs percentage represents the proportion of sales revenue that is allocated to the costs associated with selling and operating the stores. An increase in this percentage indicates that a larger portion of the sales revenue is being consumed by these costs. This would have a negative impact on both the gross profit and net profit margin percentages, as it reduces the amount of profit that can be retained from each dollar of sales.
Therefore, the correct answer is: The decrease in the cost of goods sold percentage would decrease both the gross profit and net profit margin percentages, but the increase in the selling and store operating costs percentage would decrease both the gross profit and net profit margin percentages.
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Total direct material variance $200 favorable (F). Direct material price variance $900 untavorable (UF), Standard price 510 Standard quantities 750 Find actual price 1. Less than $10 2.Between $10 and $10.50 3. Between $11.00 and $11,50 4. More than $12.00
Total direct material variance $200 favorable (F).Direct material price variance $900 unfavorable (UF),Standard price $510.Standard quantities 750.Find the actual price.
Solution: Direct material variance = Direct material price variance + Direct material quantity variance$200F = $900UF + Direct material quantity variance Direct material quantity variance = $200F - $900UFDirect material quantity variance = $200 - $900* (Actual quantity of direct material - Standard quantity of direct material)Actual quantity of direct material - Standard quantity of direct material = (200 - 900)/32636146Actual quantity of direct material - Standard quantity of direct material = - 0.00230The actual quantity of direct material is less than the standard quantity of direct material because the variance is favorable and subtracted from the standard quantity of direct material. i.e.
Actual quantity of direct material = Standard quantity of direct material - 0.00230Standard price = Direct material price variance / Standard quantity of direct material $510 = $900UF / 750Actual price per unit of direct material = Standard price + Direct material price variance / Actual quantity of direct material= $510 - $900UF / 32636146= $510 - 900* (Actual quantity of direct material - Standard quantity of direct material)/32636146= $510 - 900 * (- 0.00230)= $12.07Hence, the actual price is more than $12.00. Answer: 4. More than $12.00.
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14. Caroline, Inc. had the following transactions during 2015:4
Exchanged land for a building+ $764,000€
Purchased treasury sharese
160.000€¢
Paid cash dividend=
380.000€€
Purchased equipmente
212,000€€
Issued ordinarv shares]
588,000€¢
To find out the cash flow from investing activities of Caroline, Inc., we will only consider the transactions related to investment activities.
Following are the relevant transactions that took place during 2015. Exchanged land for a building+ $764,000€ Purchased equipment 212,000€€. The exchange of land for a building will fall under investing activities and will be considered an investment in property, plant, and equipment. The purchase of equipment is also an investing activity. The payment of cash dividends is not an investing activity, and neither is the purchase of treasury shares. The issue of ordinary shares is classified as a financing activity. Now, to calculate the cash flow from investing activities, we will add the cash outflows and subtract the cash inflows. Hence the cash flow from investing activities of Caroline, Inc. is: Cash outflows: 764,000 + 212,000 = €976,000
The cash flow from investing activities of Caroline, Inc. during 2015 is €976,000. Since there were only two cash outflows, the answer is less than 100 characters.
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On January 1, Kennard Corp. had 5 million shares of common stock and 340,000 shares of preferred stock outstanding. On June 1, Kennard issued 500,000 additional shares of common stock for cash. On October 1, Kennard issued a 3-for-1 stock split on its common stock.
During the year, Kennard reported $59 million of net income and in December paid dividends of $0.92 per common share and $5.00 per preferred share.
What is Kennard's basic earnings per share?
Kennard Corp. had 5 million shares of common stock and 340,000 shares of preferred stock outstanding on January 1.
They issued an additional 500,000 shares of common stock on June 1 and conducted a 3-for-1 stock split on October 1.
The company reported $59 million of net income and paid dividends of $0.92 per common share and $5.00 per preferred share in December. The second paragraph provides an explanation of how to calculate Kennard's basic earnings per share.
To calculate Kennard's basic earnings per share (EPS), we need to determine the weighted average number of common shares outstanding during the year. Here's the calculation:
Calculate the weighted average number of common shares outstanding before the stock split:
5 million shares (initial shares) + 500,000 shares (additional shares) = 5.5 million shares
Adjust for the stock split on October 1:
5.5 million shares x 3 = 16.5 million shares
Calculate the weighted average number of preferred shares outstanding:
340,000 shares
Calculate the weighted average number of total shares outstanding:
16.5 million shares (common) + 340,000 shares (preferred) = 16.84 million shares
Calculate basic EPS:
Net Income / Weighted Average Number of Total Shares Outstanding
$59 million / 16.84 million shares = $3.50 per share
Therefore, Kennard's basic earnings per share is $3.50.
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1)In incremental analysis,
a. only costs are analyzed.
b. only revenues are analyzed.
c. both costs and revenues may be analyzed.
d. both costs and revenues that stay the same between alternate courses of action will be analyzed.
In incremental analysis, both costs and revenues may be analyzed. Incremental analysis is a decision-making technique used to determine the financial impact of different options by examining the changes in costs and revenues between two alternatives.
This analysis allows managers to make informed decisions by comparing the costs and revenues of different courses of action. While both costs and revenues are important components of incremental analysis, it is crucial to note that only costs and revenues that change between the options being considered are analyzed. Costs and revenues that remain the same between the options are not considered in the incremental analysis. Therefore, managers can determine which alternative provides the most financial benefit by focusing on the costs and revenues that change. This analysis can help businesses make more informed decisions that positively impact their bottom line.
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Gibson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. GIBSON COMPANY Income Statements for Year 2 A B с Segment Sales $251,000 $251,000 $ 165,000 (121,000) Cost of goods sold (83,000) (85,000) Sales commissions (21,000) (29,000) (29,000) Contribution margin 23,000 139,000 137,000 (42,000) (35,000) General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) (31,000) 0 (5,000) (18,000) Net income (loss) $ (24,000) $ 86,000 $106,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Complete this question by entering your answers in the tabs below. Required A Required B Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Effect on income $ 0 Required A Required B > Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Complete this question by entering your answers in the tabs below. Required A Required B Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. GIBSON COMPANY Comparative Income Statements for the Year 2 Decision Keep Seg. A Eliminate Seg. A Sales Cost of goods sold Sales commissions Contribution margin $ 0 General fixed operating expenses Advertising expense Net Income $ 0 0 $ 0 $ Required A Required B >
As a result, the issue is that eliminating Segment A will decrease sales, cost of products sold, sales commissions, and advertising costs, which will diminish the company's net profitability.
Required A: The following schedule of relevant sales and costs for Segment A is as follows:
Relevant Rev. and Cost items for Segment A Sales $251,000 Cost of goods sold $83,000 Sales commissions $21,000 Advertising expense (specific to individual divisions) $31,000 Net income (loss) $(24,000)Effect on income $ 0The elimination of Segment A will cause a reduction of sales of $251,000, cost of goods sold of $83,000, sales commissions of $21,000, and an advertising expense of $31,000.
Required B: The following are the comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A.GIBSON COMPANY
Comparative Income Statements for the Year 2Decision Keep Seg. A Eliminate Seg. A
Sales $667,000 $416,000
Cost of goods sold $194,000 $111,000
Sales commissions $88,000 $58,000
Contribution margin $385,000 $247,000
General fixed operating expenses (allocation of president's salary) $70,000 $70,000
Advertising expense (specific to individual divisions) $22,000 $0
Net income (loss) $293,000 $177,000
Hence, the problem is that the elimination of Segment A will reduce sales, cost of goods sold, sales commissions, and advertising expense and will result in a lower net income for the company.
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