Answer:
Situation which describes:
1. Game:
(a) A group of grocery shoppers in the dairy section, with each shopper choosing a flavor of yogurt to purchase
(Because of the attribute of each shopper choosing a flavor of yogurt.)
2. Decisions:
(b) A pair of teenage girls choosing dresses for their prom. (The prom which date and time has been fixed already)
(c) A college student considering what type of postgraduate education to pursue. (Because of decision to be educated)
(d) The New York Times and the Wall Street Journal choosing the prices for their online subscriptions this year. (Due to the various financial ability of its reader)
(e) A presidential candidate picking a running mate ( Due to the election that is upcoming)
Explanation:
The classic quote from the movie Field of Dreams, "If you build (produce] it
they will come [purchase]," can be used to describe
O Say's Law
O Keynesian economic policy
an economy driven by a strong aggregate demand
The correct answer is A. Say's Law
Explanation:
Say's Law proposed by the economist Jean-Baptiste Say establishes the supply (availability of a product) or the production itself is the factor that creates demand (customers willing to buy the product). For example, the production of a new model of cellphone or computer makes people want to buy the new model. This idea is expressed by the quote "If you build (produce] it they will come [purchase]" because in the quote it is explained the production of something make people go to buy that product.
Sally Rubber Co. has an expected net operating profit after taxes, EBIT (1-T), of $1,700 million in the coming year. In addition, the firm is expected to have net capital expenditures of $255 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Sally Rubber Co. expected to generate over the next year?
Answer:
$1,400 million
Explanation:
Calculation for free cash flow (FCF)
Using this formula
Free cash flow= Net income+ Non cash expenses-Net capital expenditures- Increase in Net operating working capital
Let plug in the formula
Free cash flow=$1,700 million + $0 million -$255 million -$45 million
Free cash flow =$1,400 million
Therefore the amount of free cash flow (FCF) that Sally Rubber Co. expected to generate over the next year will be $1,400 million
Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions. Career Connection: Shin-fong How does Shin-fong keep track of his finances?
Answer:
By means of a budget he prepared.
Explanation:
According to the information available, Shing-fong has a carefully thought out strategy. Here's some of what he does;
he keeps tracks of his finances by means of a budget plan.he views all his transactions also checking his debit or credit cards to keep track of how much he spendsShing-Fong avoids eating out as much as he used to and preparing cheaper food at home.he also avoids unnecessarily spending with friends whenever he is invited.Lake Incorporated purchased all of the outstanding stock of Huron Company, paying $1,000,000 cash. Lake assumed all of the liabilities. Book values and fair values of acquired assets and liabilities were: Book Value Fair Value Current assets (net) $ 190,000 $ 125,000 Property, plant, equip. (net) 650,000 765,000 Liabilities 255,000 255,000 Lake would record goodwill of
Answer:
Lake would record goodwill of $365,000
Explanation:
Fair value of net assets = Fair value of current asset + Fair value of property, plant and equipment
Fair value of net assets = $125,000 + $765,000
Fair value of net assets = $890,000
Fair market value = Fair value of net assets - Liabilities assumed
Fair market value = $890,000 - 255,000
Fair market value = $635,000
Goodwill = Consideration - Fair market value
= $1,000,000 - $635,000
= $365,000
Hence, the amount of goodwill is $365,000.
Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.90 at the end of each year. If investors require an 7% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ per share
Answer:
$27.14
Explanation:
Calculation for the price of the firm's perpetual preferred stock
Using this formula
Price of the firm perpetual preferred stock = Annual dividend / Required return
Where,
Annual dividend =$1.90
Required return=7% or 0.07
Let plug in the formula
Price of the firm perpetual preferred stock = $1.90 / 0.07
Price of the firm perpetual preferred stock=$27.14
Therefore the Price of the firm perpetual preferred stock will be $27.14
As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data:
Sales revenues $13,000
Depreciation $4,000
Other operating costs $6,000
Tax rate 35.0%
What is the Year 1 cash flow?
a. $6,962
b. $5,950
c. $7,438
d. $5,177
e. $7,378
Answer:
$5,950
Explanation:
Boulder incorporation reported the following data for year 1
Sales revenue= $13,000
Depreciation= $4,000
Other operating costs= $6,000
Tax rate= 35%
The first step is to calculate the EBIT
= sales revenue-operating costs-depreciation
= $13,000-$6,000-$4,000
= $3,000
Therefore, the cash flow for year 1 can be calculated as follows
= 3,000×35/100
= 3,000×0.35
= 1,050
= 3,000-1,050
= 1,950
Cash flow= 4,000+1,950
= $5,950
Hence the cash flow for year 1 is $5,950
Pauley Company needs to determine a markup for a new product. Pauley expects to sell 15,000 units and wants a target profit of $22 per unit. Additional information is as follows:
Variable product cost per unit $19
Variable administrative cost per unit 11
Total fixed overhead 13,500
Total fixed administrative 21,000
Using the variable cost method, what markup percentage to variable cost should be used?
Answer:
81%
Explanation:
Calculation for the markup percentage to variable cost that should be used
Using this formula
Markup percentage=[(Target profit + Fixed overhead costs + Fixed administrative costs) / Total variable costs
Let plug in the formula
Markup percentage=[($22*15,000 units)+$13,500+$21,000]/$30×15,000)
Markup percentage=($330,000+$13,500+$21,000)/$450,000
Markup percentage=$364,500/$450,000
Markup percentage=0.81*100
Markup percentage=81%
Calculation for Total variable costs
Variable product cost per unit $19
Variable administrative cost per unit $11
Total variable costs =$30
Therefore the markup percentage to variable cost that should be used will be 81%
Additional short-term borrowings $ 20,000
Purchase of short-term investments 5,000
Cash dividends paid 16,000
Interest paid 8,000
Compute cash flows from financing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Cash flow from from financing activities = $(4,000)
Explanation:
The cash flow from financing activities includes that entails any or a combination of the following; issuance and redemption of stocks , issuance and redemption of debts and payment of interest and/or dividend, and receipt of dividend and or interest.
Kindly note that the purchase of short term investment is not a financing activity but rather an investing activity
Cash flow $
Short term borrowing 20,000
Cash dividend paid (16,000)
Interest paid (8,000)
Total Cash flow (4000)
Cash flow from from financing activities = $(4,000)
On September 12, Vander Company sold merchandise in the amount of $2,200 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $1,520. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $190 and the cost of the merchandise returned is $135. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
Answer and Explanation:
The Journal entry is shown below:-
Cash Dr, 1969.80 (2010 × 98%)
Sales discount Dr, 40.20
To Account receivable $2,010 ($2,200 - $190)
(Being the entry is recorded)
Here we debited the cash and sales discount as it increased the assets and we credited the accounts receivable as it reduced the assets
Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. All of the company's transactions with customers, employees, and suppliers are conducted in cash; there is no credit.
The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $76,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows:
Raw materials $10,200
Work in process $4,200
Finished goods $8,200
During the year, the following transactions were completed:
a. Raw materials purchased for cash, $170,000.
b. Raw materials requisitioned for use in production, $141,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).
c. Costs for employee services were incurred as follows: |Direct labor|$156,000
Indirect labor $185,900
Sales commissions $22,000
Administrative salaries $50,000
d. Rent for the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling and administrative activities).
e.Utility costs incurred in the factory, $16,000.
f.Advertising costs incurred, $13,000.
g. Depreciation recorded on equipment, $21,000. ($15,000 of this amount was on equipment used in factory operations; the remaining $6,000 was on equipment used in selling and administrative activities.)
h. Manufacturing overhead cost was applied to jobs, $?
i.Goods that had cost $226,000 to manufacture according to their job cost sheets were completed.
j. Sales for the year totaled $514,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.
Required:
(Round your intermediate calculations to 2 decimal places)
1. Prepare journal entries to record the transactions for the year.
2. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.
3. Prepare an income statement for the year.
Answer:
1)
a. Raw materials purchased for cash, $170,000.
Dr Materials inventory 170,000
Cr Cash 170,000
b. Raw materials requisitioned for use in production, $141,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).
Dr Work in process: direct materials 121,000
Dr Manufacturing overhead 20,000
Cr Materials inventory 141,000
c. Costs for employee services were incurred as follows:
Dr Work in process: direct labor 156,000
Dr Manufacturing overhead 185,900
Dr Sales salaries expense 22,000
Dr Administrative salaries expense 50,000
Cr Cash 413,900
d. Rent for the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling)
Dr Manufacturing overhead 13,600
Dr Rent expense 5,200
Cr Cash 18,800
e.Utility costs incurred in the factory, $16,000.
Dr Manufacturing overhead 16,000
Cr Cash 16,000
f. Advertising costs incurred, $13,000.
Dr Advertising expenses 13,000
Cr Cash 13,000
g. Depreciation recorded on equipment, $21,000. ($15,000 of this amount was on equipment used in factory operations; the remaining $6,000 was on equipment used in selling and administrative activities.)
Dr Manufacturing overhead 15,000
Dr Depreciation expense 6,000
Cr Accumulated depreciation: manufacturing equipment 15,000
Cr Accumulated depreciation: office equipment 6,000
h. Manufacturing overhead cost was applied to jobs, $?
Dr Work in process 265,200
Cr Manufacturing overhead 265,200 (170% of direct labor)
i. Goods that had cost $226,000 to manufacture according to their job cost sheets were completed.
Dr Finished goods inventory 226,000
Cr Work in process 226,000
j. Sales for the year totaled $514,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.
Dr Cash 514,000
Cr Sales revenue 514,000
Dr Cost of goods sold 220,000
Cr Finished goods inventory 220,000
2)
Dr Manufacturing overhead ($265,200 - $250,500) 14,700
Cr Cost of goods sold 14,700
3) Gold Nest Company
Income Statement
Sales revenue $514,000
- Cost of goods sold -$205,300
Gross profit $308,700
Operating expenses:
Sales salaries expense -$22,000Administrative salaries expense -$50,000Rent expense -$5,200Advertising expenses -$13,000Depreciation expense -$6,000 -$96,200Operating profit $212,500
1. The preparation of journal entries to record the transactions for Gold Nest Company of Guandong, China, is as as follows:
a. Debit Raw materials $170,000
Credit Cash $170,000
b. Debit Work in Process $121,000
Debit Manufacturing Overhead $20,000
Credit Raw materials $141,000
c. Debit Work in Process $156,000
Debit Manufacturing Overhead $185,900
Credit Payroll Expenses $341,900
Debit Selling and Administrative Expenses $22,000
Credit Sales commissions $22,000
Debit Selling and Administrative Expenses $50,000
Credit Administrative salaries $50,000
d. Debit Manufacturing Overhead $13,600
Debit Selling and Administrative Expenses $5,200
Credit Rent Expenses $18,800
e. Debit Manufacturing Overhead $16,000
Credit Utilities Expense $16,000
f. Debit Selling and Administrative Expenses $13,000
Advertising costs $13,000
g. Debit Manufacturing Overhead $15,000
Debit Selling and Administrative Expenses $6,000
Credit Depreciation Expenses $21,000
h. Debit Work in Process $265,200
Credit Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)
i. Debit Finished Goods Inventory $226,000
Credit Work in Process $226,000
j. Debit Cash $514,000
Credit Sales Revenue $514,000
j. Debit Cost of goods sold $220,000
Credit Finished Goods Inventory $220,000
2. The journal entry to close the balance in the Manufacturing Overhead account to the Cost of goods sold is as follows:
Debit Manufacturing Overhead $14,700
Credit Cost of goods sold $14,700
3. Gold Nest Company
Income Statementfor the year ended December 31
Sales Revenue $514,000
Cost of goods sold 205,300
Gross profit $308,700
Selling and Administrative Expenses:
Sales commission $22,000
Administrative salaries 50,000
Rent Expenses 5,200
Advertising Expenses 13,000
Depreciation Expenses 6,000
Total selling/admin. $96,200
Net income $212,500
Data Calculations:Estimated manufacturing overhead = $76,500
Estimated direct labor dollars = $45,000
Predetermined overhead rate = $1.70 ($76,500/$45,000)
Beginning inventory balances:Raw materials = $10,200
Work in process = $4,200
Finished goods = $8,200
Data Analysis:a. Raw materials $170,000 Cash $170,000
b. Work in Process $121,000 Manufacturing Overhead $20,000 Raw materials $141,000
c. Work in Process $156,000 Manufacturing Overhead $185,900 Payroll Expenses $341,900
Selling and Administrative Expenses $22,000 Sales commissions $22,000
Selling and Administrative Expenses $50,000 Administrative salaries $50,000
d. Manufacturing Overhead $13,600 Selling and Administrative Expenses $5,200 Rent Expenses $18,800
e. Manufacturing Overhead $16,000 Utilities Expense $16,000
f. Selling and Administrative Expenses $13,000 Advertising costs $13,000
g. Manufacturing Overhead $15,000 Selling and Administrative Expenses $6,000 Depreciation Expenses $21,000
h. Work in Process $265,200 Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)
i. Finished Goods Inventory $226,000 Work in Process $226,000
j. Cash $514,000 Sales Revenue $514,000
j. Cost of goods sold $220,000 Finished Goods Inventory $220,000
2. Manufacturing Overhead $14,700 Cost of goods sold $14,700
Manufacturing Overheadb. Raw materials $20,000
c. Payroll Expenses $185,900
d. Rent Expenses $13,600
e. Utilities Expense $16,000
g. Depreciation Expenses $15,000
h. Work in Process $265,200
Cost of goods sold (Over-applied
overhead) $14,700
Cost of goods soldFinished goods $220,000
Over-applied manufacturing overhead (14,700)
Adjusted cost of goods sold $205,300
What is a job-order costing system?A job-order costing system is a costing system that tracks the costs and revenues according to jobs, with jobs allocated job numbers. It is unlike process costing, which tracks jobs for each process in order to determine the unit costs instead of per job.
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Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay. Their agreement is
Answer:
unenforceable because Agro's performance was preexisting duty.
Explanation:
In the situation being described, it can be said that their agreement is unenforceable because Agro's performance was preexisting duty. This refers to the party's offer of a performance that was already required of them under the existing contract making a modification null. In this scenario, this is exactly what is happening, Agro Excavations has already signed a contract to dig the pond and has no enforceable reason to add $15,000 to the contract price mid-project and must finish digging the pond for the agreed-upon price of the first contract.
Suppose Hyperpolis’s GDP increases by 15% and its inflation rate is 12%, while Superpolis’s GDP increases by 6% and its inflation rate is 3%. Assuming the population in both countries remained constant, which economy grew faster?
Answer: c) Both economies grew at the same rate
Explanation:
The faster growing economy would be the one that saw a greater increase in Real GDP than the other.
Real GDP growth = Nominal GDP growth - Inflation growth.
Hyperpolis Real GDP growth = 15% - 12%
Hyperpolis Real GDP growth = 3%
Superpolis Real GDP growth = 6% - 3%
Superpolis Real GDP growth = 3%
Both countries grew at the same rate of 3%.
Analyze global labor supply factors in terms of quality and quantity. In your own words, present an example of how it varies in quality.
Explanation:
The supply of labor in terms of quality and quantity will be influenced by micro and macroeconomic factors.
The labor market is constituted by a relationship of labor supply and demand for employees, which is totally influenced by the economic context that a particular country is experiencing. For example, if there is an economic downturn, then there is likely to be less labor supply and less demand.
Looking at the global labor market, we can see how it varies from country to country.
In terms of quality, we can mention China for example, which is a country where there is a lot of work, but the labor force is one of the cheapest in the world, which makes this an extremely attractive labor market for the international market, but due to poor working conditions, there is often no quality in the work process for these employees.
Brunette Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $180,000. The present value of the future cash flows generated by the project is $163,000. Should they invest in this project?
Answer:
No, as the net present value comes in negative
Explanation:
As we know that
Net present value = Present value of cash inflows - Initial investment
where,
Present value os $163,000
And, the initial investment is $180,000
Now placing these values to the above formula
So, the net present value is
= $163,000 - $180,000
= -$17,000
Therefore the company should not accept the project as net present value is in negative that is -$17,000
The open interest on silver futures at a particular time is the Group of answer choices number of all long or short silver futures contracts outstanding. number of silver futures contracts traded during the day. number of silver futures contracts traded the previous day. number of outstanding silver futures contracts for delivery within the next month.
Answer:
number of all long or short silver futures contracts outstanding.
Explanation:
The open interest on silver futures at a particular time is the number of all long or short silver futures contracts outstanding. Open interest can be defined as the total or overall number of contracts (open long and short positions) outstanding in a futures market.
In stocks exchange, when a contract begins trading it has an open interest that is equal to zero and in future dates, more contracts are entered into as time passes by.
Additionally, majority of the contracts are liquidated before their maturity date.
Which of the following is a plausible explanation for the difference between the net change in fund balances of governmental funds (fund-level statement of revenues, expenditures, and changes in fund balances) and the change in net position of governmental activities (government-wide statement of activities)?
a. Some expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund-level statements.
b. Amounts reported as expenditures in the statement of activities are reported as capital assets in the fund-level statements.
c. Debt proceeds provide current financial resources in the statement of activities, but are reported as long-term liabilities in the fund-level statements
d. Depreciation of general fixed assets is not reported as an expense in the statement of activities, but it is reported as an expense in the fund-level
Answer:
a. Some expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund-level statements.
Explanation:
Governments maintain a statement of activities that are carried out, and fund-level statements are also maintained to track expenses of government.
When there is a disparity between the two, a plausible explanation will be that some expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in the fund-level statements.
For example some long term project that is carried out by the government may be treated by creating a budget. These expenses will not be recognized in the current expenses that make up fund-level expenses.
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one−time−only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $150 Direct labor 60 Manufacturing support 105 Marketing costs 95 Fixed costs: Manufacturing support 155 Marketing costs 55 Total costs 620 Markup (45%) 279 Targeted selling price $899 For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order?
Answer:
the minimum acceptable price of this special order is $410.
Explanation:
Minimum acceptable price for the special order is the price that gives a Incremental contribution margin of zero or a price that covers all costs related to supporting the special offer.
Since the company has excess capacity, ignore the fixed costs as these are irrelevant for this decision
Costs to Provide for the Special Offer : Minimum acceptable price
Direct materials $150
Direct labor $60
Manufacturing support $105
Marketing costs $95
Minimum acceptable price $410
You purchased a stock at a price of $47.52. The stock paid a dividend of $1.55 per share and the stock price at the end of the year was $52.34. What was the total return for the year
Answer:
13.40%
Explanation:
The price of the stock is $47.52
The stock paid a dividend of $1.55
The stock price at the end of the year is $52.34
Therefore the total return for the year can be calculated as follows
= 52.34-47.52+1.55/47.52
= 6.37/47.52
= 0.1340×100
= 13.40%
Hence the total return for the year is 13.40%
describe how to create customer confidence
write a statement to describe the above criteria
Answer:
10)ways to build customer confidence and trust
1)Anticipate customer needs. How do you build
2)customer trust? ...
3)Be transparent about product knowledge. ...
Own your mistakes. ...
4)Be clear. ...
5)Share customer experiences. ...
4)Make the buying experience easy. ...
7)Be empathetic. ...
8)Teach rather than sell
9)Add a personal touch
10)follow through on promise
ABC Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $ 17,910,000 Net operating income $ 1,199,970 Average operating assets $ 4,250,000 The division's return on investment (ROI) is closest to:
Answer:
28.23%
Explanation:
ABC corporation has a sales of $17,910,000
The net operating income is $1,199,970
The average operating assets is $4,250,000
Therefore, the ROI can be calculated as follows
ROI= Net operating income/Average operating assets
= $1,199,970/$4,250,000
= 0.2823×100
= 28.23%
Hence the division's return on investment is closest to 28.23%
Rank the following asserts of a commercial Bank in order of decreasing liquidity. (a) market loans. (b) Reserves with the bank of Ghana. (c) cash. (d) personal loans. (e) sales and repurchase agreements (repos). (f) mortgages. (g) Government bonds (of from one to five years to motuity)
The rankings are as follows;
Cash.Ghana bank.Personal loan.Market loan.Sales and repurchase agreements.Mortgage.Government bonds.We want to help the user to understand the term liquidity before giving the explanation with respect to ranking the following terms:
Liquidity means an asset or security that should be converted into cash without impacting the market price.
Here the most liquids are the ones that could be converted into cash in an easy manner but we have to rank in order of reducing the liquidity.
Cash = more liquid.Ghana bank along with reserves = less than liquid as cash.Personal loan = less liquid.Market loan = less liquid.Sale & repurchase agreements = less liquid.Mortgage = reduce liquidity. Government bonds.We ranked according to high to low liquidity.
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Preferred stock has a feature that allows it to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock. This feature is called: multiple choice Participating Nonparticipating Sharing LeveragePreferred stock has a feature that allows it to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock. This feature is called: multiple choice Participating Nonparticipating Sharing Leverage
Answer:
Participating
Explanation:
Preferred stock has a feature that allows it to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock. This feature is called: PARTICIPATING PREFERRED STOCK
This is because Participatory preferred stock gives an extra profit assurance to stockholders. Typically, all preferred stocks have a fixed dividend rate, which is the main benefit.
However, in the event where the issuing company meets specific financial targets, holders of participating stocks will get more dividend payments above the normal fixed rate.
CAP stands for:________.
a. Change Acceleration Process
b. Continous Acceleration Process
c. Continous Action Process
d. Change Acceleration Project
e. None of the above
Answer: Change Acceleration Process
Explanation:
Change Acceleration Processes is defined as change management tools which are being utilized by an organization in order to make the changes applied to an effort quicker on order to achieve a goal.
It can also be defined as the set of tools and principles that are designed to make organizational change successful.
A company's strategy evolves over time as a consequence of : Select one: a. The need to keep strategy in step with changing market conditions and changing customer needs and expectations b. The proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy c. The need to respond to the newly-initiated actions and competitive moves of rival firms d. All of the above
Answer:
The correct answer is the option D: All of the above.
Explanation:
To begin with, a company's primary strategy that focus on completing the main goal of the company of increasing the sales and with that the profits is considered to be the most important element that the business has in order to keep existing and therefore that as the time passes and the context around the organization changes, that strategy evolves. And there are a lot of reasones why that could happen, including the market conditions that vary over the pass of years as well as the need to react to the competitors decisions in order to keep fighting for the market. And other consequence that may help the change of the strategy is the effort itself of managers to make the strategy better as ideas turn to came out.
Farmer Brown’s total cost curve is a. increasing at an increasing rate. b. increasing at a decreasing rate. c. increasing at a constant rate. d. decreasing.
The question is incomplete:
If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he plants 2 bags, he gets 9 bushels. If he plants 3 bags, he gets 12 bushels. A bag of seeds costs $120, and seeds are his only cost.
Farmer Brown's total-cost curve is
a. increasing at an increasing rate.
b. increasing at a decreasing rate.
c. increasing at a constant rate.
d. decreasing.
Answer:
a. increasing at an increasing rate.
Explanation:
To determine the answer, you can create a graph with the information given hich is attached.
You can see that the curve is increasing and because of that you can eliminate option d that is decreasing. Then, you have to consider that increasing at a constant rate would show an straight line which is not the case. Also, increasing at a decreasing rate would show a decreasing slope which is not what you see in the graph. Because of that, the answer is that Farmer Brown’s total cost curve is increasing at an increasing rate because the graphs shows an increasing slope.
Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10.000 units.HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015Sales (10,000 units at $244 each) $2,440,000Variable costs (10,000 units at $195 each) 1,950,000Contribution margin 490,000Fixed costs 327,600Pretax Income $162,400Assume the company is considering investing in a new machine that will increase its fixed costs by $37,000 per year and decrease its variable costs by $8 per unit. Required:Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $244
Unitary variable cost= 195 - 8= $187
Fixed costs= 327,600 + 37,000= $364,600
We need to determine the new pre-tax income:
Sales= 244*10,000= 2,440,000
Total variable cost= 187*10,000= (1,870,000)
Total contribution margin= 570,000
Fixed costs= (364,600)
Pre-tax income= 205,400
In a partnership liquidation, the final cash distribution to the partners should be made in accordance with the
Answer: B) balances of the partners' capital accounts.
Explanation:
Final cash distributions should be made proportionally to partners based on what they have in their Capital Accounts.
The balance in the Capital accounts of Partners shows the level of contribution that each partner has made to the business as well as their ownership proportion. When cash is to be distributed finally, it should therefore be based on the proportion of these Capital account balances to reflect the contribution and ownership.
if the fixed cost for the Job Shop were changed to $305,000, what would the new break-even point in numbers of units
Answer:
The question you have provided is missing important information needed for the calculation of break even point.
However step by step approach for the calculation of the break even point is given below :
Understand what break even point is :
Break even point is the level of operation where a Company neither makes a profit nor a loss.
Break even point in units calculation :
Break even point in units calculation = Fixed Costs for the Period ÷ Contribution per unit
Where, Contribution per unit = Selling Price per Unit less Variable Cost (Manufacturing and Non Manufacturing) per unit
Conclusion :
At Break Even Point level,Total Contribution will equal Total Fixed Cost (thus no profit nor loss)
The only data the question provided is :
Fixec Cost - $305,000
Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income $ 86,800
Depreciation expense 13,500
Gain on sale of land 6,800
Increase in merchandise inventory 3,550
Increase in accounts payable 7,650
A) $97,600.
B) $15,850.
C) $31,400.
D) $16,850.
E) $38,200
Answer:
A) $97,600
Explanation:
Calculation for the net cash provided or used by operating activities
OPERATING ACTIVITIES
Net Income $86,800
Depreciation Expense 13,500
Gain on Sale of Land (6,800)
Increase in Merchnadize Inventory (3,550)
Increase in Accounts Payable 7,650
Net Cash provided by Operations $97,600
Therefore the net cash provided or used by operating activities will be $97,600
Menlo Company distributes a single product. The company’s sales and expenses for last month follow:
Total Per unit
Sales $314,000 $20
Variable expenses 219,800 14
Contribution margin 94,200 6
Fixed expenses 75,000
Net operating income 19,200
Required:
a. What is the monthly break-even point in unit sales and in dollar sales?
b. Without resorting to computations, what is the total contribution margin at the break-even point?
c. How many units would have to be sold each month to attain a target profit of S27,600?
d. Verify your answer by preparing a contribution format income statement at the target sales level.
e. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.
f. What is the company's CM ratio? If sales increase by $76,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
Answer:
a) 12,500 units
b) $75,000
c) 17,100 units
d) total sales revenue $342,000
- variable costs = -$239,400
contribution margin = $102,600
- fixed expenses = $75,000
net income = $27,600
e) 20.38%
f.1) 30%
f.2) $22,800
Explanation:
Total Per unit
Sales $314,000 $20
Variable expenses $219,800 $14
Contribution margin $94,200 $6
Fixed expenses $75,000
Net operating income $19,200
break even point = fixed costs / contribution margin = $75,000 / $6 = 12,500 units
units needed to yield expected profits = (fixed costs + expected profits) / contribution margin = ($75,000 + $27,600) / $6 = 17,100 units
margin of safety = (current sales - break even point) / current sales = ($314,000 - $250,000) / $314,000 = 20.38%
contribution margin ratio = (total revenue - variable costs) / total revenue = ($314,000 - $219,800) / $314,000 = 30%
$76,000 x 30% = $22,800
The monthly break-even point in unit sales is 12,500 units. The total contribution margin at the break-even point is $75,000.
c) 17,100 units would have to be sold each month to attain a target profit of S27,600.
d) total sales revenue of $342,000
- variable costs = -$239,400
contribution margin = $102,600
- fixed expenses = $75,000
net income = $27,600
e) The company's margin of safety in percentage terms is 20.38%.
f.1) The company's CM ratio is 30%.
f.2) The Expected monthly net operating income to increase by $22,800.
The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in manufacturing when the income from a product matches the cost of manufacturing.
A formula known as net operating income (NOI) is used to assess the profitability of real estate assets that produce revenue. NOI is the sum of all property revenues less all running costs that are deemed to be reasonably reasonable.
On a property's income and cash flow statement, NOI is a before-tax statistic that does not include loan principal and interest payments, capital expenses, depreciation, or amortization. In other sectors, this term is known as "EBIT," which stands for "earnings before interest and taxes."
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