Answer:
Results are below.
Explanation:
First, we will calculate the weighted average contribution margin:
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (0.6*25 + 0.4*36) - (0.6*13 + 20*0.4)
Weighted average contribution margin= $13.6
Now, the break-even point for the whole company:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 45,000 / 13.6
Break-even point (units)= 3,309
Now, for each product line:
Plain= 0.6*3,309= 1,985
Fancy= 0.4*3,309= 1,324
A similarity between monopoly and monopolistic competition is that in both market structures a. there are only a few buyers but many sellers. b. there are a small number of sellers. c. sellers are price makers rather than price takers. d. strategic interactions among sellers are important.
Answer:
c
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero
If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero
in the long run, only normal profit is earned
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A price maker is a seller that sets the price for its goods and services. A monopoly and a monopolistic competition are price makers
Calculating return on investment for an investment center is defined by the following formula: Multiple Choice Gross profit/Ending assets. Contribution margin/Average invested assets. Income/Average invested assets. Net income/Ending assets. Contribution margin/Ending assets.
Answer:
Income/Average invested assets
Explanation:
We use the Income attributable to the investment and the average assets invested.
thus
Calculating return on investment for an investment center is defined by the following formula: Income/Average invested assets.
A potential negative outcome of budgeting is that multiple choice 2 it can be a motivating force when guidelines are followed. employees may understate sales budgets and overstate expenses. employees may not fully spend their budgeted amounts. employees may overstate sales budgets and understate expenses.
Answer:
employees may understate sales budgets and overstate expenses.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be integrated or infused into the budget.
A potential negative outcome of budgeting is that employees may understate sales budgets and overstate expenses. Thus, this would go a long way to alter or affect the budget plan.
A potential negative outcome of budgeting is that employees may understate sales budgets and overstate expenses. The correct option is b.
Budgeting has behavioural effects on employee motivation. Budgets that are imposed instead of negotiated are demotivating. Setting unrealistic goals contributes to demotivation. Battles over budget allocation contribute to departmental rivalry. Spending up to the budget: This can lead to a "use it or lose it" mentality, in which you spend up to the spending plan in order to save it for next year. Budget slack occurs when goals are set too low.
Budgeting has two negative consequences: it takes time and Inaccuracy.
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reasons why managers may be reluctant to participate fully in setting budgets??
Answer:
Some managers are reluctant to participate in budgeting because they do not like to discuss financial matters. They may also feel like developing a budget stops flexibility.
Managers may be reluctant to fully participate in setting budgets due to several reasons. First, they may fear that by actively participating, they will be held accountable for meeting the budget targets, leading to increased pressure and scrutiny.
Second, managers may have limited knowledge or experience in financial matters, making them hesitant to engage in budgeting discussions. Third, they may perceive budgeting as a time-consuming process that distracts them from their primary responsibilities.
Additionally, managers might have concerns that their departmental needs and priorities will not be adequately considered, resulting in inadequate resource allocation. Overall, these factors can contribute to their reluctance to actively engage in the budgeting process.
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Indi and Indrani are sisters who own a software development company. Demand has been increasing for their products and services and the sisters are contemplating whether to open up a satellite office in Austin. They estimate it would add $7 million in expenses and a profit of $12.5 million in total over the next 5 years (all other things equal). Indi and Indrani decide
Answer:
open an new office because the expected marginal benefit ($12.5 million over 5 years) is greater than the estimated marginal cost ($7 million)
Explanation:
The computation is shown below;
Given that
Total marginal benefit = 12.5 million
And, the Total marginal cost = 7 million
Based on the above information
We can see that the new office should be opened as the marginal benefit would be more than the marginal cost
Therefore the first option is correct
And, the rest of the options would be incorrect
Andrea Mitchell has joined a real estate syndicate. The syndicate she belongs to was formed by one individual who sold participation units to Andrea and several others. The individual who sold the participation units has unlimited liability and manages the property. Andrea and the others can only lose their initial investment. What type of real estate syndicate has Andrea joined
Answer: Limited partnership
Explanation:
Syndication allows for people to afford real estate investments they would be unable to on their own because they are able to pool their recourses together thereby increasing the collective investment amount they have.
This is a Limited Liability partnership syndicate because in such a syndicate, there are two types of the partners: the General partner and the Limited partner. The General partner manages the property and has unlimited liability while the limited partners like Andrea Mitchell can only lose what they initially put in.
The ___ act requires companies to produce both an internal control report and an external audit.
A. Securities and Exchange
B. Dodd-Frank
C. Sarbanes-Oxley
D. Uniform Accounting
The Sarbanes-Oxley act requires companies to produce both an internal control report and an external audit.
The Sarbanes-Oxley Act (SOX) is a federal law enacted by the United States Congress in 2002 to improve corporate governance and financial reporting by public companies.
The act was a response to a series of high-profile accounting scandals in the early 2000s, such as Enron, WorldCom, and Tyco, which eroded investor confidence and caused significant financial losses for stakeholders.
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Which performance management evaluation criterion reflects the extent to which a performance measure assesses all the relevant - and only the relevant - aspects of performance
Answer:
E. Validity
Explanation:
This are options for the question
A. Reliability
B. Strategic congruence
C. Acceptability
D. Specificity
E. Validity
Performance evaluation can be regarded as process whereby manager or consultant carry out examination or evaluatation of an employee's work behavior through comparisons of it with preset standards, then the results of the comparison is documentd and uses to provide feedback to the employees and point where improvements are needed as well as reason why. Validity which is one of criterion for performance management evaluation gives reflection of the extent that a performance measure is been assessed with all the relevance aspects of performance
Heavy Metal Corporation is expected to generate the following free cash flows over the next three years. Thereafter, the free cash flows are expected to grow at the industry average of 2% per year (so that Year 4 FCF is 2% larger than Year3 FCF, and so on). Using the discounted free cash flow model and a WACC of 9%, estimate the enterprise value of Heavy Metal. Year 1 2 3 FCF ($ million) 10 20 30 Select one: a. $335.5 million b. $437.1 million c. $386.7 million d. $467.1 million
Answer:
c. $386.7 million
Explanation:
The enterprise value of the firm is the present value of its future free cash flows discounted at the weighted average cost of capital as well as the present value of free cash flow terminal value beyond year 3 as shown thus:
Year 1 FCF=$10 million
Year 2 FCF=$20 million
Year 3 FCF=$30 million
terminal value=Year 3 FCF*(1+terminal growth rate)/(WACC-terminal growth rate)
terminal growth rate=2%
WACC=9%
terminal value=$30*(1+2%)/(9%-2%)
terminal value=$437.14 million( $437.1 million is wrong as it is the terminal value, not the enterprise value)
present value of FCF=FCF/(1+WACC)^n
n is the year in which the free cash flow is expected, it is 1 for year 1 FCF, 2 for year 2 FCF , 3 for year 3 FCF as well as the terminal (the terminal value is also stated in year 3 terms)
enterprise value=$10/(1+9%)^1+$20/(1+9%)^2+$30/(1+9%)^3+$437.14 /(1+9%)^3
enterprise value= $386.7 milion
Multiple Choice Questions _which level of management is responsible for establishing a vision for the organization, developing broad plans and strategies and directing of an organization set by executives?
Answer: Executive manager (Top manager)
Explanation:
Answer:
Top Level Managment
Explanation:
The level of management at which the managers are responsible for implementing and controlling the plans and strategies of the organization is Top Level Management. The top level managers are responsible to formulate plans and policies to achieve the set of organizational objectives.
A lease is a contract between a tenant and a __________ Response area. Most leases are for Response area __________ months.
A user is working with the range titled "Emp_Info” as shown in the Excel file below.
outlander spices - table In cell C6, the user has typed in the function =VLOOKUP(A6,Emp_Info,5,false). If the user does a VLOOKUP using Employee ID E007, what should appear in cell C6?
A. East
B. 000-78-8906
C. Accounts
D. Melissa James
Answer:
C. Accounts
Explanation:
Took the test
Xavier Co. wants to purchase a machine for $36,600 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,600 in each of the four years. What is the machine's net present value
Answer:
$2702.71
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-36,600
Cash flow in year 1 - 3 = $11,600
Cash flow in year 4 = $11,600 + $1,200
I = 8%
NPV = 2702.71
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Gordon Company reports the following information at the current fiscal year end of December 31: Common Stock, $0.10 par value per share $98,000 Additional Paid-in Capital , Common Stock 600,000 Retained Earnings 900,000 Total Stockholders' Equity $1,598,000 What was the average selling price for the common stock issued (rounded to the nearest cent)
Answer:
$0.71
Explanation:
Calculation to determine What was the average selling price for the common stock issued
Using this formula
Common stock issued avarage selling price=
Paid-in Capital in Excess of Par-Common÷Common Stock par value per share
Let plug in the formula
Common stock issued avarage selling price=($600,000+$98,000)/($98,000÷$0.10)
Common stock issued avarage selling price=$698,000/$980,000
Common stock issued avarage selling price=$0.71
Therefore the average selling price for the common stock issued is $0.71
Suppose you win the Publishers Clearinghouse $10 million sweepstakes. The money is paid in equal annual end-of-year installments of $333,333.33 over 30 years. If the appropriate discount rate is 5%, how much is the sweepstakes actually worth today
Answer:
the actual worth today is $5,124,150.29
Explanation:
The computation of the actual worth today is as follows:
= (Year end annual payments) ÷ (rate of interest) × (1 - (1 + rate of interest)^-time period
= ($333,333.33) ÷0.05 × (1 - (1 + 0.05)^-30
= $5,124,150.29
hence, the actual worth today is $5,124,150.29
The above formula should be applied
ellie has been working for an engineering firm and earning an annual salary of 80000 she decides to open her own engineering business her annual expenses will be
Answer:
A $185,700 revenue will yield Ellie's business $50,000 in economic profits.
Explanation:
Here is the complete question :
Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. Which of the following statements is correct?
A $185,700 revenue will yield Ellie's business $50,000 in economic profits. Ellie's annual accounting costs will equal $80,500.
A $185,700 revenue will yield Ellie's business $50,000 in accounting profits. Ellie's annual implicit costs will equal $55,200.
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Ellie's total explicit cost = office rent + rentals + supply + utilities + salary for a secretary
$15,000 + $3,000 + $1,000 + $35,000 + $1,200 = $55,200
If revenue is $185,700, accounting profit = $185,700 - $55,200 = $130,500
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Ellie's implicit cost = $80,000 + $500 = $80,500
Economic profit = $130,500 - $80,500 = $50,000
SegR-7268 Corporation has two divisions, East and West. The following information was taken from last year's income statement segmented by division: East Division West Division Sales $3,700,000 $2,300,000 Contribution margin $1,650,000 $1,000,000 Divisional segment margin $1,100,000 $350,000 Net operating income last year for SegR-7268 Corporation was $600,000. In last year's income statement segmented by division, what were SegR-7268's total common fixed expenses?
a. $2,050,000
b. $850,000
c. $2,300,000
d. $1,200,000
Answer:
b. $850,000
Explanation:
Divisional Segment Margin = $1,100,000 + $350,000
Divisional Segment Margin = $1,450,000
Net Operating Income = $600,000
Common fixed expenses = Divisional Segment Margin - Net Operating Income
Common fixed expenses = $1,450,000 - $600,000
Common fixed expenses = $850,000
So, SegR-7268's total common fixed expenses will be $850,000.
Daniel was surprised his store ran out of marshmallows so quickly. This typically does not happen during the spring, so he runs a(n) ________ to gather unplanned information to support if he should stock up on marshmallows.
Answer:
Ad-hoc report
Explanation:
From the question we are informed about how Daniel was surprised his store ran out of marshmallows so quickly. This typically does not happen during the spring, so in this case, he runs an Ad-hoc report to gather unplanned information to support if he should stock up on marshmallows.
Ad hoc report can be regarded as
a report that is created just for a one-time-use I e for a specific purpose.
With the use of BI tool there is possibility of anyone in an organization answering a specific business question and give presentation of that data in a visual format, even without given IT staff problems, Ad hoc report is different from structured report.
Decide if each is an annuity or not an annuity. a. $1000 cash received per year for 10 years b. $200 paid in month 1, $150 paid in month 2 and $400 paid in month 3 a) annuity b) not an annuity a) annuity b) annuity a) not an annuity b) not an annuity a) not an annuity b) annuity
Answer:
a. It Is an annuity
b. It is not an annuity.
Explanation:
given
cash received = $1000 per year
time = 10 year
so here we know that annuity provide the steady amount of cash on periodic interval for stated period time.
so in part a. it provide cash of 1,000 for the each 10 years each
so it is an annuity
b.
in month 1 paid = $200
in month 2 paid = $150
in month 3 paid = $400
as we can see here that amount of each cash flow period is not equal
so that It is not an annuity.
Statement I is correct, while Statement II is incorrect. Statement I states that annuity due payments are made at the beginning of each year, and this is correct. An annuity due is a type of cash flow where payments are made at the start of each period, such as at the beginning of each year.
This is different from a regular annuity, where payments are made at the end of each period. Statement II states that perpetuity investments offer infinite payments, and this is incorrect. A perpetuity is an investment that provides a constant stream of cash flows that continues indefinitely. However, while perpetuity investments offer regular and constant payments, they are not infinite.
The payments continue indefinitely but are not infinite in value. In conclusion, Statement I is correct because annuity due payments are made at the beginning of each year. However, Statement II is incorrect because perpetuity investments offer indefinite payments, not infinite payments.
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Identify the type of adjustment that would most likely be needed. Business B purchased a piece of equipment to be used in operations for $5,000 during the middle of October. Today is December 31st, the end of the 4th quarter and financial reports are being produced. g
Answer: c . Depreciation
Explanation:
When accounting for fixed assets, it is important that they are recorded at their book value to reflect the effects of being utilized. This means that depreciation needs to be charged on fixed assets.
Even though the equipment in question was only purchased 2.5 months prior to the financial reports being made, depreciation still needs to be accounted for such that the equipment is represented at its book value in the financial statement.
What is the ordinary interest paid on a loan of $1,200 for 120 days at a simple interest rate of 12% annually
Answer:
$48
Explanation:
Simple Interest = P*R* T / 100 where P = $1,200. R = 12, T=4
Simple interest = $1200 * 12 * 4/12 / 100
Simple interest = $12 * 12 * 4/12
Simple interest = $48
So, the ordinary interest paid on a loan of $1,200 for 120 days at a simple interest rate of 12% annually is $48.
Social Security Multiple Choice Is a Defined Benefit Pension Plan Is offered by local governments Is an optional Pension Plan Is a Defined Contribution Pension Plan g
Answer:
In simple words, Retired, incapacity, as well as survivor payments are all part of the Social Security program. In its nature, it is very much like a defined benefit pension plan.
Most employees contribute Social Security levies on their income to apply for many of these claims; claimants' advantages are dependent on the wages earner's payments. Aside from that, benefits like Supplemental Security Income (SSI) are dependent on use.
The direct materials and direct labor budgets provide information for preparing the Group of answer choices sales budget. production budget. manufacturing overhead budget. cash budget.
Answer:
The correct answer is the last option: Cash budget.
Explanation:
To begin with, the term known as "Cash Budget" in the field of finances and business management refers to the type of budget that specifically focus on the estimation of the cash flows of the company in a particular amount of time. Therefore that this budget helps the organization to see how much of cash they are having and more importantly how it flows over a given period of time that could be either a week, a month or a year, etc. It is necessary to manage to a certain level of sales and control de expenditures in order to have a good cash flow which is monitored by the cash budget.
ones Company elected to use the cumulative earnings approach for distributions from its equity-method investment purchased at the beginning of 20X1. During 20X1, Jones earned $200,000 on the investment and received $210,000 in dividends. In the operating activities section of the statement of cash flows prepared under the direct method, Jones reports dividends of: Multiple Choice
Answer: $210,000
Explanation:
The cash flow statement deals with actual cash being transacted. If the company received $210,000 in dividends, this came as actual cash and will therefore be the amount recorded as being received as dividends under the operating activities section of the cash flow statement.
Return on investment is usually an unrealized figure which means that it is a non-cash transaction and so will not reflect in the cashflow statement.
On August 5, 2021, Wildhorse Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $320 each. The cost of shipping the dining sets amounted to $1710 and was paid for by Wildhorse Furniture. On December 30, 2021, the consignee reported the sale of 20 dining sets at $820 each. The consignee remitted payment for the amount due after deducting a 5% commission, advertising expense of $570, and installation and setup costs of $750. The total profit on units sold for the consignor is
Answer:
$6,150
Explanation:
Calculation to determine what The total profit on units sold for the consignor is
Total profit=[ (20)×($820 - $320 )] - (20 × $820)(.05) - $1,710 - $570 - $750
Total profit=(20*$500)-($16,400*.05)-$1,710-$570-750
Total profit=$10,000-$820-$1,710-$570-750
Total profit=$6,150
Therefore The total profit on units sold for the consignor is $6,150
Rhonda purchased a %, zero-coupon bond with a -year maturity and a $ par value years ago. The bond matures tomorrow. How much will Rhonda receive in total from this investment, assuming all payments are made on these bonds as expected?
Answer:
$15,000
Explanation:
Complete question "Rhett purchased a 12% zero-coupon bond with a 15-year maturity and a $15,000 par value 15 years ago. The bond matures tomorrow. How much will Rhett receive in total from this investment, assuming all payments are made on these bonds as expected?"
Zero Coupon Bonds means exactly what the name carries and suggested "Zero Coupon (Interest) bonds".
This Coupon Bond pays no interest to the bond holders and are issued at deep discount to its face value.
Zero Coupon Bonds are matured at par value, meaning the maturity amount to the paid is equals to the par value. In other word, the bondholders will get only Par Value of the bond at maturity.
So here, Rhett will receive on maturity date the amount of $15,000.
A firm has total debt of $5,900 and a debt-equity ratio of 0.57. What is the value of the total assets?
A. $6,128.05.
B. $7,253.40.
C. $9,571.95.
D. $11,034.00.
E. $13,358.77.
Answer:
See below
Explanation:
Given the above information, we need to calculate first the total equity.
Total equity = Total debt / (Debt - Equity ratio)
Total equity = $5,900 / 0.57
Total equity = $10,350.877
Now,
Total assets = Total debt + Total equity
Total assets = $5,900 + $10,350.88
Total assets = $16,250.88
Therefore the value of the total assets are $16,250.88
Currently Digby is paying a dividend of $16.13 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield
Answer: 14.66%
Explanation:
Dividend yield = Dividend / Share price
The dividend being paid is $16.13 per share. As there is no share price given, I shall assume that the share price is $100. The new share price will be:
= 100 * (1 + 10%)
= $110
The Dividend yield would then become:
= 16.13 / 110
= 14.66%
(Use the above method and the share price in the question to find the specific answer to your question).
In Finance, _____ because _____. getting a return below your required return is OK; at least you are getting a return Cash is King; it is the only thing you can spend or invest investing in a projet in which not everyone is repaid his investment is OK; at least everyone is paid something
Answer: Cash is King; it is the only thing you can spend or invest
Explanation:
Finance is all about cash. Its all about getting cash from those who have it to those who need it so that the latter can invest and earn returns for both them and the people who invested the cash.
Simply put therefore, cash is king in finance. It is the only thing that can be invested so that one gets a return or can be spent so that one's needs are fulfilled. Indeed the term finance means the provision of cash which is why the field is so important. It is safe to say that there can be no economic growth without finance.
Options allow investors to get rid of the risks they do not want and keep the ones they do want. can be used for hedging but not for speculation. obligate the holder to sell the underlying asset at a predetermined price on or before a fixed date. allow investors to bet that the price of an underlying asset will rise but not that it will fall.
Answer:
allow investors to get rid of the risks they do not want and keep the ones they do want
Explanation:
In the option, it permit the investor to get rid of the risk as they dont want also it keeps that one which they want
The other options are to be considered incorrect as in the second option, it is used for the speculation also, the third option is wrong as the holders of the options have the right but not the obligation, and the last option is incorrect as it is used for bet in the case when the price is decline or increase
Therefore the first option is correct