Answer:
Gain/loss= $7,500 loss
Explanation:
Giving the following information:
Selling price= $24,000.
Lassen bought the machine for $52,000 and has claimed $20,500 of depreciation expense on the machine
First, we need to calculate the book value:
Book value= original price - accumulated depreciation
Book value= 52,000 - 20,500= $31,500
If the selling price is higher than the book value, the company gain from the sale.
Gain/loss= 24,000 - 31,500= $7,500 loss
Fedor, Inc. has prepared the following direct materials purchases budget: Month Budgeted DM Purchases June $ 67 comma 000 July 75 comma 500 August 76 comma 300 September 78 comma 400 October 80 comma 000 All purchases are paid for as follows: 10% in the month of purchase, 40% in the following month, and 50% two months after purchase. Calculate total budgeted cash payments made in October for purchases.
Answer:
Total cash payment= $77,510
Explanation:
Giving the following information:
Purchases:
August= 76,300
September= $78,400
October= $80,000
All purchases are paid for as follows:
10% in the month of purchase
40% in the following month
50% two months after purchase.
Cash payment October:
Purchases on cash October= 80,000*0.1= 8,000
Purchases on account September= 78,400*0.4= 31,360
Purchases on account August= 76,300*0.5= 38,150
Total cash payment= $77,510
Last year, Rotterdam, Inc. had sales revenue of $980,000. Costs other than depreciation and interest expense were 20 percent of sales. Depreciation expense was $50,000, interest expense was $95,000, and dividends paid were $23,000. The company also received dividends of $8,000 from a company in which it had 30% ownership stake. Which of the following statements is most CORRECT?a. The firm's taxable income was $637,400. b. The firm's after-tax income was $405,564. c. The firm's marginal tax rate was 39 percent. d. The firm's tax for the year was $113,900. e. None of the above
Answer:
e. None of the above
Explanation:
total revenue $980,000
- operating costs $196,000
- depreciation $50,000
- interests $95,000
income $639,000
+ dividends from outside corporation = $8,000 x (1 - 80% DRD) = $1,600
total taxable income = $639,000 + $1,600 = $640,600
current corporate tax is 21%, so the company's marginal tax rate would be 21%
income taxes for the year = $640,600 x 21% = $134,526
the company's after tax income = $640,600 - $134,526 = $506,074
Income statement format; single step and multiple step [LO4-1, 4-3, 4-5] The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 3,350,000 Interest revenue 100,000 Loss on sale of investments 32,500 Cost of goods sold 1,390,000 Loss on inventory write-down (obsolescence) 400,000 Selling expense 500,000 General and administrative expense 250,000 Interest expense 99,000 There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.Required Prepare a single-step income statement for 2018, including EPS disclosures
Answer:
Net income = $583,875
Earning Per Share (EPS) = $1.95 per share.
Explanation:
A single step income statement can be described as a financial statement that do not break revenues and expenses into there respective different categories, but only use one column each for revenue and expenses.
For this question, a single-step income statement for 2021 can be prepared as follows:
Note: Year 2021 is used as the correct year since it is metioned twice in the question against 2018 that was erroneously mentioned once.
General Lighting Corporation
Income Statement for December 31, 2021
Details $
Revenues:
Sales revenue 3,350,000
Interest revenue 100,000
Total revenue (A) 3,450,000
Expenses:
Cost of goods sold 1,390,000
Selling expense 500,000
General and administrative expense 250,000
Interest expense 99,000
Loss on sale of investments 32,500
Loss on inventory write-down (obsol.) 400,000
Total expenses (B) 2,671,500
Income before tax (A - B) 778,500
Tax (25% * $778,500) (194,625)
Net income 583,875
EPS (583,875 / 300,000) 1.95
Athena Company's salaried employees earn two weeks of vacation per year. It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50. Record Athena Company's weekly journal entry to record the vacation expense:
Answer:
Answer is Debit Vacation Benefits Expense $660 Credit Vacation Benefits Payable $660
Explanation:
Athena Company's salaried employees earn two weeks of vacation per year. It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50. Record Athena Company's weekly journal entry to record the vacation expense:
Annual salary is $858,000 in total
The total no of weeks is 52 weeks
858,000 wages per year / 52 weeks per year = 16,500 per week
So per week salary is
The weekly wages for our employees are 16,500 dollars
For each of the two weeks of vacations , will be $ 16500 x 2
= $33,000
For weekly vacation expense
sice its for 50 weeks
= $33000 / 50
= $660
Therefore, Debit Vacation Benefits Expense $660 Credit Vacation Benefits Payable $660
On January 1, 2021, Perez Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of Perez's common stock. No bonds were converted during 2021. Throughout 2021, Perez had 1,000 shares of common stock outstanding. Perez's 2021 net income was $4,500, and its income tax rate is 30%. No potentially dilutive securities other than the convertible bonds were outstanding during 2021. Perez's diluted earnings per share for 2021 would be:_________.a. $5.00.
b. $4.54.
c. $4.50.
d. $4.72.
Answer:
EPS = $4.50
diluted EPS = $2.46
Explanation:
no option is correct since EPS = $4.50, and the rest of the options are all higher amounts. Diluted EPS are always smaller than EPS.
common stock outstanding = 1,000 stocks
bonds shares (diluted) = 1,000 stocks
net income = $4,500
bond interest = $10,000 x 6% x (1 - 30%) = $420
diluted earnings per share = ($4,500 + $420) / (1,000 shares + 1,000 shares) = $4,920 / 2,000 shares = $2.46
Average fixed cost is equal to a.total fixed cost divided by quantity. b.marginal cost minus average total cost. c.quantity divided by total fixed cost. d.the difference between average total cost and average variable cost. e.a and d
Answer:
e.a and d
Explanation:
Average fixed cost = Total fixed cost / quantity
Total cost is cost that does not vary with production e.g. rent
Average fixed cost is fixed cost per unit produced.
Average fixed cost = average total cost - average variable cost
I hope my answer helps you
transtutors Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting
Answer:
Gross profit from the month of December is $238000
Explanation:
Question is incomplete but the missing part is:
Cash received from customer during december 2017 - 387,000
Cash paid to supplier for inventory during december 2017 - 131,000
Accrual basis revenues
Particulars Amount $
Cash received from customer 387000
during December 2017
Cash received in December for -139000
November accounts receivable
December sales made on account 141000
collected in January
Accrual basis revenues 389000
Accrual basis expenses
Particulars Amount $
Cash paid to suppliers for inventory 131000
during December 2017
Payments for inventory purchased -19000
and used in November
Inventory purchased in November 39000
but not used in December
Accrual basis expenses 151000
Gross profit from the month of December= Accrual basis revenues - Accrual basis expenses
Gross profit = 389000 - 151000
Gross profit = $238000
Klapper Company claimed a tax deduction which was uncertain when it was deducted in 2018 but is relatively certain of receiving the deduction over a five-year period. Which of the following is not correct in accounting for the uncertain tax item?
a. A contingency reserve will be set up at the same amount as the deferred tax asset if the firm is certain it may claim 100% of the deduction over time.
b. Income tax expense in the first year is the current portion of income tax expense minus the increase in the deferred tax asset.
c. The contingency reserve is reduced each year with the offset to the deferred tax account.
d. As the company will ultimately get 100% of the deduction, no contingency reserve is required.
Answer: d. As the company will ultimately get 100% of the deduction, no contingency reserve is required.
Explanation:
Just because the company will eventually get 100% of the deduction does not mean that no contingency reserve is required.
A contingency reserve needs to be created that is the same amount as the deferred tax asset which arises from the claimed deduction and deducted from every year to offset the deduction for that particular year until the 5 years have elapsed.
Using $3040000 as the cost of goods manufactured, compute the cost of goods sold using the following information
Raw materials inventory, January 1 $ 20000
Raw materials inventory, December 31 40000
Work in process, January 1 18000
Work in process, December 31 12000
Finished goods, January 1 40000
Finished goods, December 31 32000
Raw materials purchases 1700000
Direct labor 760000
Factory utilities 150000
Indirect labor 50000
Factory depreciation 400000
Operating expenses 420000
a) $3046000.
b) $3048000.
c) $3032000.
d) $3008000.
Answer:
b) $3,048,000
The cost of goods sold is $3,048,000
Explanation:
Particulars Amount
Finished goods inventory (Jan 1) 40,000
Add: Cost of goods manufactured 3,040,000
Cost of goods available for sale 3,080,000
Less: Finished goods inventory (Dec 31) 32,000
Cost of goods sold 3,048,000
Tetious Dimensions is introducing a new product and has an expected change in net operating income of $790,000. Tetious Dimensions has a 30 percent marginal tax rate. This project will also produce $190,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable $5,000 $84,000 Inventory 98,000 184,000 Accounts payable 75,000 117,000 What is the project's free cash flow in year 1? The free cash flow of the project in year 1 is $ 701000. (Round to the nearest dollar.)
Answer:
$620,000
Explanation:
to determine the net cash flow generated by the project, we can use the indirect method to determine cash flows:
net income = $790,000 x (1 - 30%) = $553,000
net income adjustments:
depreciation expense $190,000increase in accounts payable $42,000increase in accounts receivable ($79,000)increase in inventory ($86,000)Project's cash flow $620,000
Without the With the change
project project
Accounts receivable $5,000 $84,000 $79,000
Inventory $98,000 $184,000 $86,000
Accounts payable $75,000 $117,000 $42,000
Jason just joined a new gym and signed up for a one-year membership. Membership fees can be paid in 12 monthly payments of $50, due at the beginning of each month or in one payment today. If the appropriate interest rate is 11%,.How much should he pay today for the annual membership?
Answer:
$570.91
Explanation:
For computing, the amount pay today for the annual membership we just need to apply the present value formula i.e to be shown in the attachment
Provided that
Future value = $0
Rate of interest = 11% ÷ 12 months = 0.916666%
NPER = 12 months
PMT = $50
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the amount paid today for the membership is $570.91
The management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and has considered discontinuing it on several occasions. Data from the company's accounting system appear below: Sales ................................................................ Variable expenses............................................ Fixed manufacturing expenses ........................ Fixed selling and administrative expenses ...... $150,000 $72,000 $50,000 $33,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued. A. According to the company's accounting system, what is the net operating income earned by product V86O? B. What would be the effect on the company's overall net operating income if product V86O were dropped?
Answer:
A. According to the company's accounting system, what is the net operating income earned by product V86O?
net loss ($5,000)B. What would be the effect on the company's overall net operating income if product V86O were dropped?
the company's net operating income would decrease by $40,000Explanation:
net operating income from product V860:
total sales $150,000
- variable expenses $72,000
- fixed manufacturing expenses $50,000
- fixed selling and administrative expenses $33,000
net loss ($5,000)
if product is dropped:
unavoidable fixed costs = ($50,000 + $33,000) - ($30,000 + $13,000) = $40,000
Massage Envy offers massage services on a subscription basis, so it targets consumers that desire to get multiple treatments per month. Massage Envy likely segments its market by
Answer:
C. usage rate.
Explanation:
As in the question, it is mentioned that Massage Envy offers massage services based on a subscription basis with a view to targeting the consumers that they get more or multiple treatments per month
So Massage Envy target the market segment via usage rate as it depicts the average sales per day so that they get to know how much they earned the revenue by offering multiple treatments to clients
hence, the correct option is C. usage rate
Marcus is a self-employed marketing consultant. He is good at helping his clients with their marketing challenges; however, he is not keeping up with billing his clients regularly or keeping track of his hours. He feels like the time he spends on these functions is taking him away from activities where he has more talent and ability. His small business needs to bill clients quickly to keep the business running. What would you recommend that Marcus do
Answer:
outsource the accounting function to another firm
Explanation:
Based on this information regarding Marcus' situation, the best advice would be for him to outsource the accounting function to another firm. This is something that many individuals/companies do and will allow Marcus to focus all of his time and energy on what he is best at (which is helping his clients with their marketing challenges.) while at the same time making sure that the accounting tasks such as billing the clients are done quickly and correctly.
McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:
20Y5 20Y4
Retail $126,000 $120,000
Wholesale 150,000 164,000
Total revenue $276,000 $284,000
Prepare a horizontal analysis of the segments. Round percentages to one decimal place.
Answer:
Horizontal Analysis
For the years 20Y4 and 20Y5
20Y5 20Y4 Difference amount Difference Percent
Retail 126000 120000 6000 5.0%
Wholesale 150000 164000 -14000 -8.5%
Total revenue 276000 284000 -8000 -2.8%
Workings
Retail= 126000 - 120000 = 6000
6000/120000* 100 = 5.0%
Wholesale= 150000 - 164000 = -14000
-14000/164000 * 100 = 8.53%
Total revenue= 276000 - 284000 = -8000
-8000/284000 * 100 =2.82%
You buy a 7 percent, 25-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are up to 9 percent. What is your one best guess as to the value of the bond
Answer:
The best guess to the value of bond is $1000.
Explanation:
The best guess to the value of a bond is $1000 because the flotation rate bonds are those bonds where coupon rate varies according to the market situation. Therefore, we can say that the coupon rate in the case of flotation bonds is based upon the rate of LIBOR, etc. Generally, the bond value remains the same and there will be no capital gain or loss to the investor.
The best guess to the value of a bond is $1000
The following information should be considered:
The floation rate bond is the bond where the coupon rate should be changed and it should be changed as per the market condition. So here the price of the bond remains the same or we can say it should be constant.Therefore we can conclude that The best guess to the value of a bond is $1000
Learn more: brainly.com/question/6201432
_________ is the use of an asset not the subject of the loan to collateralize that loan.
Answer:
Cross-collateralization
Explanation:
Cross-collateralization is used as an asset to collateral an initial loan as collateral for another loan irrespective of subject of the loan.
For example: If a person takes a loan from the same bank a car loan secured by the car, a home loan secured by the house, and so on, then these assets can be used as cross-collaterals for other loans.
Hence, the correct answer is cross-collateralization.
Typically, the firms' lowest cost source of financing is ____________ as its cost is tax deductible and it also tends to offer the least amount of risk for investors. Group of answer choices Debt Preferred Equity Derivatives Common Equity Equity
Answer:
Debt
Explanation:
Debt is the lowest cost source of financing because the interest return given to holders of debt has a tax shield (tax deductible) that is provided by the Section 11j of the Income tax Act.
The other sources of finance give a return in form of dividends. Dividends are are not tax deductible hence they attract a huge cost.
Gall Manufacturing sells a product for $50 per unit. The fixed costs are $840,000, and the variable costs are 60 percent of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $200,000 and variable costs will be 50 percent of the selling price. The new break-even point in units is
Answer:
41,600 units
Explanation:
The computation of the break even point in unit is shown below:
As we know that
Break Even Point:
= Fixed Cost ÷ Contribution margin per unit
where,
Fixed Cost = $840,000 + $200,000
= $1,040,000
And,
Variable cost per unit is
= 50% 0f selling price
= $50 × 50%
= $25
So, the break even point in units is
= $1,040,000 ÷ $25
= 41,600 units
When reading a research report on an automobile company, a registered representative's use of fundamental analysis determines that the stock is a good investment. When attempting to determine the best time to execute orders to buy the stock, the registered representative could refer to:
Answer:
Explanation:
In this situation, the registered representative could refer to a chart showing a recent history of the market price of the stock. The chart provides all the price movements of the stock during a certain period of time as well as different time intervals. This allows the individual to point out key levels of support and resistance as well as any trend that may be occurring. These indications allow the individual to make a more educated decision on the best time to execute orders to buy the stock.
Weber Company purchased a mining site for $659,964 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 96,740 tons will be recovered. The estimated residual value of the property is $55,169. During the first year, the company extracted 6,682 tons of ore. The depletion expense is
Answer:
$41,774
Explanation:
the depletion expense is calculated below
Depletion expense reffered to the charge against profits for the use of natural resources.To calculate the depletion per unit we will need to calculate the total cost less salvage value then divide it by the total number of estimated units.
The expense is calculated by multiplying the depletion per unit by the number of natural resources units consumed current period.
Original cost= $659,964
residual value = $55,169
estimated units or tons= 96,740 tons
number of tons extracted in a given year = 6,682 tons of ore.
depletion expense =?
We will need to find the difference between the residual value and the original cost first. Which is
= (Original cost - residual value) = )$659,964 - $55,169)/96,740 tons
= 6.25
(6.25* 6,682 tons )= $41774
Hence,The depletion expense =$41774
Lucy has just finished washing her car and is now checking its oil level. The oil dipstick shows her car’s oil is below the "Low" line. Lucy’s car must have more oil to operate well. What phase of the consumer decision-making process did Lucy just experience?
Answer:
recognition phase
Explanation:
There are 5 phases in the consumer decision-making process:
recognition: the customer realizes that he/she has an unsatisfied need or problem that must be satisfied or solved. In this case, Lucy realized that her car needs more oil and she has to purchase some. information search evaluations of alternatives purchase evaluation of decisionThad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $9,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $670,000 by reducing advertising expenses, but he still hopes to sell 400 units per year. d. What would the net operating income be in this situation
Answer:
$3,130,000
Explanation:
Net operating income = Total revenue - Total cost
Total revenue = price x quantity = $9,500 x 400 = $3,800,000
Total cost = $670,000
Net operating income = $3,800,000 - $670,000 = $3,130,000
I hope my answer helps you
Sally is employed as a computer programmer for the Ellis Corporation. She has a savings account of $15,000 and owns a few shares of Ellis stock. She thinks of herself as an investor rather than as a worker. Marx would maintain that Sally has __________. Group of answer choices
Answer:
She is experiencing false class consciousness
Explanation:
False class consciousness was introduced by Karl Marx.
False Class consciousness refers to an unawareness by a social or economic class like Sally of her position and interests within the structure of the economic order and social system in which she lives. By thinking herself to be an investor instead of worker, Sally has a misguided or false view of her own position in Ellis corporation.
An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity. The new issue of Federal Home Loan Bank Bonds will be sold:
Answer: a par
Explanation:
From the question, we are informed that an investor wishes to buy a new issue of U.S. Government agency bonds and was recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity.
It should be noted that new issues that relate to agency securities are typically sold by a selling group which will be appointed by the agency and such groups are usually made up of broker dealers and large banks.
The group will then sell the issue to the public at par and out of the revenue that is made, a selling concession will be paid by the agency to the selling group.
A company should pursue unrelated diversification instead of related diversification when: a. the bureaucratic costs of implementation do not exceed the value that can be created by realizing economies of scope. b. it wants to maximize growth. c. its core skills are highly specialized and have few applications outside its core business. d. the company's top managers are skilled at acquiring and turning around poorly run enterprises. e. its core technological skills are applicable to a wide variety of industrial and commercial situations.
Answer: Option C
Explanation:
Unrelated diversification can be defined as the form of diversification when the business adds some of the new products not related to the core strength or core products of the company.
It tries to penetrate into some other business. Example: A shoe making company starts making sports wear.
The companies whose core strength is skilled and specialized and has only few applications outside the core skills. These company can pursue unrelated diversification instead of related.
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow.
July August September
Budgeted sales $54,000 $70,000 $58,000
Budgeted cash payments for
Direct material 15,160 12,440 12,760
Direct labor 3,040 2,360 2,440
Factory overhead 19,200 15,800 16,200
Sales are 15% cash and 85% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash: $44,000 in accounts receivable; $3,500 in accounts payable; and a $4,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($3,000 per month), and rent ($5,500 per month).
Required:
a. Prepare a cash receipts budget for July, August, and September.
b. Prepare a cash budget for each of the months of July, August, and September.
Answer:
Built-Tight
a) Cash Budget for July, August, and September:
July August September Total
Beginning balance $15,000 $16,900 $28,700 $15,000
Cash collections: 52,100 56,400 68,200 176,700
Cash Expenses:
Direct materials (15,160) (12,440) (12,760 ) (40,360)
Direct labor (3,040) (2,360) (2,440) (7,840)
Factory overhead (19,200) (15,800) (16,200) (51,200)
Operating expenses:
Sales Commission (5,400) (7,000) (5,800) (18,200)
Rent Expense (3,000) (3,000) (3,000) (9,000)
Accounts Payable (4,000) (4,000)
Interest expense (400) (400)
Loan repayment (4,000) (4,000)
Minimum Balance 15,000 15,000 15,000
Excess Cash $1,900 $13,700 $41,700 $56,700
Explanation:
a) Cash Collections:
July August September Total
Cash sales 15% $8,100 $10,500 $8,700 $27,300
85% a month after 44,000 45,900 59,500 149,400
Total collections $52,100 $56,400 $68,200 $176,700
b) It is assumed that the balance in accounts payable was paid in August when the company had enough balance to offset it. Any other assumption could have been made.
c) A cash budget shows the cash receipts and payments made during the budget period. As a budget, it shows the forecast for cash receipts and payments, which will help management to make decisions to avoid liquidity problems which can ruin a business. Management is able to plan ahead for the business' expenditures and investments. It also warns management to negotiate for loans to smoothen periods of cash shortages.
your coin collection contains 56 1952 silver dollars. if your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2056, assuming they appreciate at an annual rate of 6.3 percent
Answer: $32184.54
Explanation:
For us to calculate this , we will use the formula for the future value which has been solved and attached. It should.be noted that:
Present value(PV) = $56
r = rate = 6.3% = 6.3/100 = 0.063
n = time = 2056 - 1952 = 104
The question has been solved and the answer is $32184.54
When they retire in 2056, the collection will be worth $32184.54
If a Starbucks tall latte cost $3.20 in the United States and 3 euros in the Euro area, then purchasing-power parity implies the nominal exchange rate is how many euros per dollar?
a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.
b. .938 If the exchange rate is less than this, it costs fewer dollars to buy a tall latte in the U.S. then in the Euro area.
c. 1.067 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.
d. 1.067 If the exchange rate is less than this, it costs fewer dollars to buy a tall latte in the U.S. than in the Euro area.
Answer:
a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.
Explanation:
We can see in the example that the Euro is cheaper than the dollar in purchasing-power parity. More specifically, the exchange rate is .938 euros per dollar.
This is why it is more expensive to buy a tall latte in the U.S. than in Europe. The Euro is cheaper.
With reference to the Strategy Highlight 8.2, the Tata Group's corporate strategy is attempting to:______
a. pursue a focused differentiation strategy over a focused cost-leadership strategy.
b. integrate different strategic positions, pursued by different strategic business units.
c. depend on a single product market to generate most of its revenues.
d. move from unrelated diversification to related-constrained diversification.
Answer: integrate different strategic positions, pursued by different strategic business units
Explanation:
Tata group is a global enterprise that is made up of about 30 companies and operates in more than hundred countries. There are several companies under Tata such as Tata motors, Tata steels, Tata Communications, Tata consumer products, Tata chemicals etc.
Tata Group's corporate strategy is attempting to integrate different strategic positions, pursued by different strategic business units. Even though the companies are all under the general body of Tata Group, each business unit bears the profit and loss it makes.