Answer:
The sellers are peter’s customers.
Explanation:
The sellers are peter’s customers because in this situation peter is showing them the houses available in the market. Thus we can consider that the owner of the homes is customers to Peter because here the work of peter is to help in the sale of homes. Therefore it may be said that the sellers are peter's customer.
The Jewel Golf Club Company, which recently began using a kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 grips.Use the information in Case 6.2. How many Kanban containers would Jewel require if a 10% policy variable is used? a. three or fewer b. four or five c. five or six d. six or seven
Answer:
d. six or seven
Explanation:
Given that:
Daily demand for the grip = 3000 units
average waiting time = 0.20 day
processing time = 0.10 day / container
a container holds = 150 grips
percentage of policy used = 10% = 0.10
The objective of this question is to determine the amount of Kanban containers would Jewel require.
the amount of Kanban containers = Demand ( wasting time + processing time)(1+percentage policy)/ amount of container holding
the amount of Kanban containers = 3000( 0.2 + 0.1) ( 1+ 0.10)/ 150
the amount of Kanban containers = 3000 ( 0.30) (1.10)/150
the amount of Kanban containers = 990/150
the amount of Kanban containers = 6.6
SO we can infer that the amount of Kanban containers would Jewel require if a 10% policy variable is used falls within the range of six or seven.
On Tuesday, Smokey had taken off his watch, which he had found laying on top of a trash can at the curbside, and placed it on the counter. Several days later, Smokey decided to invite some friends over to play cards. Bandit, Jim, Rob, and Carl came over for the event. Bandit noticed the watch sitting on the counter, and when no one was around he took it. The next day, Bandit sold the watch to Enos for $350. Enos later sold the watch to Rick for $430. When Rick met Smokey later that night for the football game, Smokey realized that Rick had his watch and demanded its return. Rick refused, claiming it was his because he had paid Rick for it. Who owns the watch?
Answer:
Rick owned the watch.
Explanation:
In the scenario given above between Smokey and his group of friends, it is a complicated situation. Initially, Smokey owes the watch but it was stolen by his friend in his house. His friend ended selling it to other person which finally ended up being paid for by Rick after it has exchanged so many hands.
Since Rick had a valid transaction where he paid for a goods for a certain amount of money, it would be validly recognized as the owner of the watch.
Rose Project is a nongovernmental not-for-profit entity established to help runaway children. Every year, Rose holds a charity benefit at which participants are asked to make pledges. This year, Rose received the following pledges: Unrestricted $500,000 Restricted for counseling programs 200,000 The pledges are legally binding and are expected to be received within the next 12 months. Rose estimates that 5% of the pledges will be uncollectible. At what amount should the pledges be reported on Rose’s balance sheet as pledges receivable?
A. $665,000
B. $475,000
C. $190,000
D. $700,000
Answer:
A. $665,000
Explanation:
Rose received the following
Unrestricted $500,000
Restricted for counseling programs $200,000
Hence, Total Outstanding Pledge = $500,000 + $200,000 = $700,000
The Amount of Provision to be reported = $700,000 x 5% = $35,000
Amount should the pledges be reported on Rose’s balance sheet as pledges receivable will be $700,000 - $35,000
= $665,000
When there are lower prices, but waiting lines customers will often be drawn to the competing location of a Monopolistic Competitor with greater customer service and better atmosphere.
A. True
B. False
Ryan works at a community college and the college requires all employees to contribute to a pension fund. At this time, he is not too worried about the safety of this contribution because
Answer:
pension funds usually make conservative investments
Explanation:
Pension funds are pools of investment that are used to prepare an employee for retirement. Pension contributions are made either by the employer or the employee.
These funds are collected and invested by Pension Fund Administrators (PFA).
Primarily pension funds are invested in stocks and bonds.
The aim of the investments is to make low risk profit on the funds. So Ryan is not worried about the safety of his pension contributions because they are put in conservative investments that have low risk of loss.
After deciding to acquire a new car, you can either lease the car or purchase it with a three-year loan. The car you want costs $38,000. The dealer has a leasing arrangement where you pay $105 today and $505 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at an APR of 6 percent. You believe that you will be able to sell the car for $26,000 in three years. a. What is the present value of leasing the car
Answer:
The present value of leasing the car is $16,704.86 and the break even sale price is $25483.48.
Explanation:
Solution
Given that
The monthly rate =0.06/12 =(6%/12)
the number of period = 3 * 12 =23
Now
The present value of leasing the car is computed below:
Payment day =$105
add: Present value of future monthly payment = 505 * (1-(1+(0.06/12))^-36/(0.06/12)
= 166,599,86
Present value of the car =$105 +$166,599,86
=$16,704.86
Thus
The present value of purchasing the car:
Purchase cost = $38,000
Less: present value of resale = 26000/(1+(0.06/12))^-36
=21,726.77
Present value of purchasing the car is $38,000 + $21,726.77
=$16,273.23
Now
The break even sale price
Let the resale price be x
38000 -(x/((1+(0.06/12))^-36 =16704.86
(x/((1+(0.06/12))^-36 = 38000 - 16704.86
(x/((1+(0.06/12))^-36 = 21295.14
x = ((1+(0.06/12))^-36 * 212954.14
x = 25483.48
Therefore the present value of leasing the car is $16,704.86 and the break even sale price is $25483.48
Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $22,000 in 2018.
Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?
Cumlative Non Cumlative
preferred Dividends for 2018
preferred Dividends in arrears for 2017
Remaining Dividends to common stockholders
Total Dividens:
Answer and Explanation:
The computation is shown below:-
Particulars Cumulative Non Cumulative
Preferred dividends for 2018 $10,000 $10,000
Preferred dividend in
arrears for 2017 $10,000 $0
Remaining Dividends to
Common stockholders $2,000 $12,000
Total Dividends $22,000 $22,000
Dividend payable to Preferred stockholders per year = (Number of shares × Par value) × Given percentage
= (2,000 × $100) × 5%
= $10,000
On December 31, 2016, Ditka Inc. had Retained Earnings of $270,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $171,100 and interest revenue of $82,800. The company used supplies in the amount of $89,400, advertising expenses were $16,700, salaries and wages totaled $18,750, and income tax expense was calculated as $14,300. During the year, the company declared and paid dividends of $6,300.
Required:
a. Prepare the closing entries dated December 31, 2016.
b. Record the entry for closing revenue and expense account.
c. Record the entry for closing dividend account.
Answer:
Required a
Closing Retained Earnings Balance
Retained Earnings $270,800 (debit)
Statement of Changes in Shareholders Equity $270,800 (credit)
Required b
Closing Service Revenue Balance
Sales Revenue $171,100 (debit)
Statement of Profit and Loss $171,100 (credit)
Closing Interest Revenue Balance
Interest Revenue $82,800 (debit)
Statement of Profit and Loss $82,800 (credit)
Closing Supplies Expenses Account
Statement of Profit and Loss $89,400 (debit)
Supplies Expenses $89,400 (debit)
Closing Supplies advertising expenses
Statement of Profit and Loss $16,700 (debit)
Advertising expenses $16,700 (debit)
Closing Supplies salaries and wages expenses
Statement of Profit and Loss $18,750 (debit)
Salaries and wages expenses $18,750 (debit)
Closing income tax expenses
Statement of Profit and Loss $14,300 (debit)
income tax expenses $14,300 (debit)
Required c
Closing the dividend Account
Dividend $6,300 (debit)
Retained Earnings Statement $6,300 (credit)
Explanation:
Revenues and Expenses are Closed off to the Statement of Profit and Loss.
Dividends are Closed off to the Retained Income Statement.
Adjusting Supplies Account
Supplies Expenses $89,400 (debit)
Supplies Account $89,400 (credit)
Adjusting dividend Account
Dividend $6,300 (debit)
Cash $6,300 (credit)
At Wilson Manufacturing, evaluators are required to justify in writing extremely high or extremely low performance ratings that are given to employees. The managers completing evaluations hate these write-ups, and try to avoid writing them. Which of the following is the most likely outcome of this requirement?
a. leniency
b. central tendency error
c. halo error
d. recent behavior bias
Answer:
B. Central tendency error
Explanation:
From the question the most likely outcome of this requirement is central tendency error.
This kind of error of error happens when managers, interviewers or evaluators rate all or most of the employees or interviewees as average. It occurs when evaluators filling out a rating scale has placed most of the answers in the middle of the scale and avoid the high and low extremes.
Footsteps Co. has a bond outstanding with a coupon rate of 5.4 percent and annual payments. The bond currently sells for $1,007.49, matures in 18 years, and has a par value of $1,000. What is the YTM of the bond
Answer: 5.33%
Explanation:
Use a financial calculator to get this faster.
On the calculator input the following.
FV = 1,000 because when it matures in 18 years it will be worth this
PV = -1007.49 as that is the current value. Should be in negative.
PMT = 54 because the coupon payments are 5.4% from the par of $1,000 which is $54.
N = 18
Click compute / CPT and then click I/Y.
You should get a YTM of 5.33%.
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,600 units)$108,000 Variable expenses 49,680 Contribution margin 58,320 Fixed expenses 44,300 Net operating income$14,020 If the company sells 4,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)
Answer:
$69,660
Explanation:
For computing the contribution margin first we have to determine the contribution margin per unit which is shown below:
Contribution margin per unit = Contribution margin ÷ Number of units
= $58,320 ÷ 3,600 units
= $16.2
Now if the sales unit is 4,300 so the contribution margin is
= Sales units × contribution margin per unit
= 4,300 units × $16.20
= $69,660
On December 2, Coley Corp. reacquired 1,000 shares of its $2 par value common stock for $27 each. On December 20, Coley Corp. reissued 400 shares for $15 each. Which of the following is correct regarding the journal entry for the reissued shares?
a. Debit Cash $15,000.
b. Credit Treasury Stock $10,800.
c. Credit Paid in Capital - Treasury Stock $5,200.
d. Credit Treasury Stock $6,000.
Answer:
b. Credit Treasury Stock $10,800.
Explanation:
The Journal entry is shown below:-
Cash Dr, $6,000 (400 × $15)
Retained Earnings Dr, $4,800
To Treasury Stock $10,800 (400 × 27)
(Being reissued shares is recorded)
Here we debited the cash and retained earnings as it increased the cash and reduced the retained earning balance and we credited the treasury stock as it reduced the balance of treasury stock
Darwin is a 60-year-old software engineer for Compuswerve, Inc. Recently, the company went through a reorganization process meant to revamp the business and the work it does. The directors want to rework the company as a fresh, hip business with cutting-edge knowledge from young, creative-minded employees. Obviously, Darwin doesn’t fit into the directors’ vision, so the managers wish to replace him. Sure enough, a few weeks later Compuswerve hires some new employees, and Darwin is offered a severance plan and dismissed.
1. Which of the following, if true, would legally support the company’s decision to fire and replace Darwin? Check all that apply.
a. if the company had fewer than 20 employees
b. if Darwin needed a reasonable accommodation to perform his job due to a disability
c. if Darwin planned to retire in less than five years
d. if Darwin was unable to perform the essential functions of his job
e. if Darwin had another job offer elsewhere
f. if the company was a private (non-governmental) organization
g. if there were more highly skilled workers in the organization who could take his place
2. Which law prevents employees like Darwin from discrimination in employment?
a. ADEA
b. Title VII
c. Affirmative action
d. ADA
3. Are the company’s actions permissible, considering its mission and vision?
a. No, because Darwin was treated less favorably than younger employees based solely on his age.
b. Yes, because age is not a protected class in employment law.
c. No, because Darwin was not given compensation or allowed adequate time to find another job.
d. Yes, because the company is private and therefore has the right to hire or fire whomever they want to.
Answer:
Darwin and Compuserve, Inc.
1. d. if Darwin was unable to perform the essential functions of his job
e. if Darwin had another job offer elsewhere
2. b. Title VII
3. a. No, because Darwin was treated less favorably than younger employees based solely on his age.
Explanation:
Title VII of the Civil Rights Act of 1964 is a federal law that protects employees against discrimination based on certain specified characteristics: race, color, national origin, sex, and religion. Under Title VII, an employer may not discriminate with regard to any term, condition, or privilege of employment.
Federal employment laws prohibit discrimination of persons who are over 40 years.
Answer:
2. ADEA
Explanation:
Age
Discrimination
Employment
Act
of 1967, forbids discrimination to people/employees who are age 40 or older.
If the Fed lowers the required reserve ratio, __________ in the banking system will remain unchanged but __________ will rise. This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply.
Answer:
Reserves; excess reserves; increase.
Explanation:
If the Fed lowers the required reserve ratio, reserves in the banking system will remain unchanged but excess reserves will rise. This will (likely) lead to an increase in new loans and checkable deposits and an increase in the money supply because the banks would be willing to give out money as loans or mortgages to interested individuals.
The Federal Reserve System popularly known as the Fed was established by the U.S Congress on the 23rd of December, 1913 under the Federal Reserve Act. The Fed is the central bank of the United States of America. Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
banks in order to put a definitive end to the bank panics of the 1800s.
The Federal Reserve Bank is a government agency that is saddled with the following responsibilities;
1. To control the issuance of currency in United States of America (it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets).
2. To provide banking services to all the commercial banks in the country (the Federal Reserve is the "lender of last resort).
3. To regulate banking activities (it has the power to supervise and regulate banks).
Riedy purchased (on 1/1/21) $1,000,000 of HTM, 8% bonds for $904,000. The bonds mature on January 1, 2029; Straight-line amortization is used. The 12/31/21 bond carrying value is:
Answer:
The 12/31/21 bond carrying value is $916,000
Explanation:
The discount on bonds payable is the face value of $1000,000 minus the cash proceeds received from the bond issuance.
Discount on bonds payable=$1,000,000-$904,000=$96000
annual bond discount amortization=$96,000/8=$12000
annual coupon payment=$1,000,000*8%=$80,000
The carrying value of the bond as at 12/31/21=cash proceeds+bond discount amortization
The carrying value of the bond as at 12/31/21=$904,000+$12000=$916000
Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it can pay this year. Assume its balance sheet is as follows:
Assets Cash $ 406,000
Accounts receivable 832,000
Fixed assets 1,014,000
Total assets $ 2,252,000
Liabilities and Stockholders' Equity
Accounts payable $ 473,000
Long term payable 368,000
Common stock (300,000 shares at $2 par) 600,000
Retained earnings 811,000
Total liabilities and stockholders' equity $ 2,252,000
a-1. From a legal perspective, what is the maximum amount of dividends per share the firm could pay? (Do not round intermediate calculations and round your answer to 2 decimal places.)
a-2. Is this realistic?
A. Yes
B. No
b. In terms of cash availability, what is the maximum amount of dividends per share the firm could pay? (Do not round intermediate calculations and round your answer to 2 decimal places.)
c. Assume the firm earned an 20 percent return on stockholders’ equity last year. If the board wishes to pay out 40 percent of earnings in the form of dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Answer:
a-1. From a legal perspective, what is the maximum amount of dividends per share the firm could pay?
Dividends can only be paid from retained earnings because a corporation can distribute dividends only if it has made a profit.
Maximum amount of dividends per share = $811,000 / 300,000 common shares = $2.7033 per share
a-2. Is this realistic?
B. No
No corporation has a 100% dividend payout rate because it uses retained earnings to finance existing or new projects.
b. In terms of cash availability, what is the maximum amount of dividends per share the firm could pay?
$1.35 per share because the firm has $406,000 in cash and it has 300,000 outstanding shares.
c. Assume the firm earned an 20 percent return on stockholders’ equity last year. If the board wishes to pay out 40 percent of earnings in the form of dividends, how much will dividends per share be?
ROE = net income / stockholders' equity
20% = net income / $1,411,000
net income = $1,411,000 x 20% = $282,200
dividends = $282,200 x 40% = $112,880
dividends per share = $112,880 / 300,000 = $0.38 per share
Thom owes $5,000 on his credit card. The credit card carries an APR of 17.3 percent compounded monthly. If Thom makes monthly payments of $170 per month, how long will it take for him to pay off the credit card assuming that he makes no additional charges
Answer:
39 months
Explanation:
loan balance $5,000
APR = 17.3% compounded monthly / 12 = 1.44167% monthly interest rate
monthly payment = $170
if we use the present value of annuity formula:
PV = payment x ({1 - [1/(1 + r)ⁿ]} / r)
5,000 = 170 x ({1 - [1/(1 + 0.0144167)ⁿ]} / 0.0144167)
29.4118 = {1 - [1/(1.0144167)ⁿ]} / 0.0144167
0.42402 = 1 - [1/(1.0144167)ⁿ
1/(1.0144167)ⁿ = 0.57598
1.0144167ⁿ = 1 / 0.57598 = 1.73617
n log1.0144167 = log1.73617
n 0.00621639 = 0.2395926
n = 0.2395926 / 0.00621639 = 38.54 ≈ since the payments must be made in full months, we have to round up to 39 months
to check our answer:
PV = payment x ({1 - [1/(1 + r)ⁿ]} / r)
PV = 170 x ({1 - [1/(1 + 0.0144167)³⁹]} / 0.0144167)
PV = $5,044.36
The table below shows the expenditure components for the United States in 2015. Expenditures in the United States Expenditure Component Amount of Expenditure (billions of dollara) Durable goods $1,367.1 Nondurable goods 2,666.0 Services 8,299.1 Nonresidential fixed investment 2,336.2 Residential fixed investment 645.4 Change in private inventories 111.9 Exports 2,264.9 Imports 2,789.0 Federal government 1,224.0 State and local government 1,994.9sing the values in the table, calculate the following aggregate expenditures and nominal GDP.Instructions: Round your answers to one decimal place.a. What is the value of consumption expenditures in 2015?$ billionb. What is the value of government expenditures in 2015?$ billionc. What is the value of gross investment in 2015?$ billiond. What is the value of nominal GDP in 2015?$ billion
Answer:
a. $12,332.2 billion
b. $3218.9 billion
c. $3093.5 billion
d. $18120.5 billion
Explanation:
a. The value of Consumption Expenditure = Sum of consumption expenditure on all goods and services
= $1,367.1 billion + $2,666 billion + $8,299.1 billion
= $12,332.2 billion
b. The value of Government Expenditure = Sum of expenditure by federal Government and State & Local government
= $1224.0 billion + $1994.9 billion
= $3218.9 billion
c. Gross Investment = Sum of investment and inventories
=Non-residential fixed investment + Residential fixed investment + Change in private inventories
= $2336.2 billion + $645.4 billion + $111.9 billion
= $3093.5 billion
d. Nominal GDP = C + I + G + (X-M)
= $12332.2 billion + $3093.5 billion + $3218.9 billion + ($2264.9 billion - $2789 billion)
= $18120.5 billion
A- The consumption expenditures made in the year 2015 is 12332.2 billion dollars. B- The government expenditures in the year 2015 were 3218.9 billion dollars.
C- Gross investments made in the year 2015 were 3093.5 billion dollars. D- Nominal GDP in 2015 would be 18121.2 billion dollars. Above mentioned are the correct figures are which have been rounded off to one decimal point.
The calculation of all the asked queries can be made as follows. The Consumption expenditure = Summation of expenses on all goods and services. Which can be calculated as 1,367.1 + 2,666 + 8,299.1 which totals to 12332.2 billion dollars.The Government expenditures amount to 1224 + 1994.9 = 3218.9 billion dollars as a part of expenses made by the federal government and the local govt.The gross investments are calculated as under 2336.2 + 645.4 + 111.9 totaling to 3093.5 billion dollars by addition of fixed investments (residential and non-residential) and private inventories.For calculation of nominal GDP of the year 2015 values obtained from A, B and C can be added before subtracting the net difference between exports and imports like 12332.2+ 3218.9 + 3093.5 + (2264.9- 2789.0) which totals as 18121.2 billion dollars.Hence, the correct values obtained for queries A,B,C and D are $12332.2 billion, $3218.9 billion, $3093.5 billion and $18121.2 billion dollars chronologically.
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Flaherty is considering an investment that, if paid for immediately, is expected to return $146,000 five years from now. If Flaherty demands a 15% return, how much is she willing to pay for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PV factor to 4 decimals.)
Answer:
PV= $72,587.80
Explanation:
Giving the following information:
Flaherty is considering an investment that, if paid for immediately, is expected to return $146,000 five years from now.
To calculate the present worth, we need to use the following formula:
PV= FV/(1+i)^n
FV= $146,000
Interest rate= 15% = 0.15
Number of periods= 5
PV= 146,000 / (1.015^5)
PV= $72,587.80
During the year a parent makes sales of inventory at a profit to its 75 percent owned subsidiary. The subsidiary also makes sales of inventory at a profit to its parent during the same year. Both the parent and the subsidiary have on hand at the end of the year 20 percent of the inventory acquired from one another. Consolidated revenues for the year should exclude:________.
a) 80 percent of the total revenues from intercompany sales.
b) only the revenues from the subsidiary's intercompany sales.
c) only the revenues from the parent's intercompany sales.
d) total revenues from intercompany sales. A
Answer: total revenues from intercompany sales.
Explanation:
From the question, we are informed that during the year a parent makes sales of inventory at a profit to its 75 percent owned subsidiary and that the subsidiary also makes sales of inventory at a profit to its parent during the same year.
We are further told that both the parent and the subsidiary have on hand at the end of the year 20 percent of the inventory acquired from one another.
In this case, the consolidated revenues for the year should exclude total revenues from intercompany sales
On January 1, 2018, Brussels Enterprises issues bonds at par dated January 1, 2018, that have a $3,400,000 par value, mature in 4 years, and pay 9% interest semiannually on June 30 and December 31.
Required:
a. Record the entry for the issuance of bonds for cash on January 1, 2018.
b. Record the entry for the first semiannual interest payment on June 30, 2018.
c. Record the entry for the second semiannual interest payment on December 31, 2018.
d. Record the entry for the maturity of the bonds on December 31, 2021 (assume semiannual interest is already recorded).
Answer:
a. Record the entry for the issuance of bonds for cash on January 1, 2018.
January 1, 2018, bonds are issued
Dr Cash 3,400,000
Cr Bonds payable 3,400,000
b. Record the entry for the first semiannual interest payment on June 30, 2018.
June 30, 2018, first coupon payment
Dr Interest expense 153,000
Cr Cash 153,000
c. Record the entry for the second semiannual interest payment on December 31, 2018.
December 31, 2018, second coupon payment
Dr Interest expense 153,000
Cr Cash 153,000
d. Record the entry for the maturity of the bonds on December 31, 2021 (assume semiannual interest is already recorded).
December 31, 2021, payment of bonds payable
Dr Bonds payable 3,400,000
Cr Cash 3,400,000
When CNS decided to enter the global market for its Breathe Right strips, there were many contributing factors for doing so. However, according to Kevin McKenna, vice president for international at CNS, the real key to successfully enter a specific global market is
Answer:
Having a local partner that is entrepreneurial with an ability to distribute and sell
Explanation:
according to Kevin McKenna, vice president for international at CNS, the real key to successfully enter a specific global market is Having a local partner that is entrepreneurial with an ability to distribute and sell.
When Shondra shops at the warehouse club, she buys paper towels and tissues in bulk. What type of packaging do these products come in
Answer:
Unit load
Explanation:
A unit-load packaging is used for loading individual goods together and shipping the package into a single box. Another choice is not appropriate for this form of packaging as they're concerned about carton packaging and shipping container related packaging.
Therefore in the given since she wants to buy the paper towels and tissues in bulk so it reflects the unit load as it derives the same meaning
Hence, the correct option is the unit load.
Structuring a Special-Order Problem Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ5 at a price of $5 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ5 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows: Direct materials $1.75 Direct labor 2.50 Variable overhead 1.50 Fixed overhead 3.25 Total $9.00 Fixed overhead will not be affected by whether or not the special order is accepted.
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Fixed Overhead 3.25
Total $9.00
Requried:
a. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
b. By how much will operating income increase or decrease if the order is accepted?
Answer:
Effect on income= $7,500 increase
Explanation:
Giving the following information:
Special offer:
Units= 10,000
Price= $5
Production costs:
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Effect on income= number of units*unitary contribution margin
Effect on income= 10,000*(5 - 1.75 - 2.5 - 1.5)
Effect on income= $7,500 increase
The job performed by brand managers: focuses more on the pricing and promotion of established goods than on the development of new products. is likely to become less important in firms that utilize the Internet. involves broad responsibilities for the marketing of a specific brand or product line. is mainly concerned with the promotion of the entire product mix of their firm.
Answer:
Involves broad responsibilities for the marketing of a specific brand or product line
Explanation:
For companies seeking to make their brands or product line a household name, such would usually make use of the service of a brand manager, whose duty is to market the company's brand or product line through his or her wealth of experience .
As a brand manager, he would device a means or strategy to marketing a company' s brand for a targeted market. There is also the duty of displaying brand integrity in respect of the company's marketing strategies and may as well manage a number of products on behalf of the company.
A seller lists property with a multimillion-dollar broker. The broker's agreement calls for him to enter the listing into the MLS within three working days. On the second day, the broker shows the property to a prospective buyer, who loves it. The buyer is leaving town the next day but will be back in one week to purchase it if it is still on the market. The broker wants to double his commission by selling his own listing, so he withholds the information from the MLS for 10 days. Based on this information, the broker ______________.
Answer: B) may be liable to the seller for violating duties required by the listing agreement.
Explanation:
The Multiple Listing Service (MLS) is a database that allows brokers to cooperate in finding buyers for homes. They list the properties for sale and if other brokers know people who need such a house they will reach out and buy it. The listing broker and the selling broker will then share commissions.
This is what the broker was trying to avoid by withholding the information from the MLS.
However, the broker is in violation of the listing agreement which stated that he should post it on the MLS within 3 working days and as such there is a very real chance that he is liable to the seller for this violation.
"Columbia Corp.'s required ROI is 10%. Its East Division has operating assets of $7,500,000, profit margin of 15%, and asset turnover of 0.80. Calculate the East Division's operating income."
Answer:
East Division operating income = $900,000
Explanation:
Profit margin = Net operating income/Sales
Asset turnover = sales/average operating assets
0.80= x/7,500,000
x = 7500000*0.80
= 6000000
Thus, sales = 6,000,000
Profit margin = net operating income/Sales
15% = x /6,000,000
x= 6,000,000*15%
=900,000
Net operating income = 900,000
One way to encourage the desired CSR behavior throughout the firm is to record expectations and the boundaries of acceptable behavior in an _____ Code and reinforce those rules and norms via regular ethics training.
Answer:
Ethics
Explanation:
Ethics code defines that is accepted by a company for better understanding that what is right or wrong so that they can follow the understand of their resolution.
Corporate social responsibility states that the business can be done in the favor of society so that the society can be in trouble to select their products. On the other hand the organization take care that the child labor should not be done.
According to the given situation the correct answer is ethics as they give the ethics training with taking care of rules and regulation.
Hi Abigail,
As you may know, Macy’s is in a battle with Abercrombie & Fitch for sales among 15- to 20-year-old female customers. We are relocating our Junior department to the basement of our store to give young people a separate entrance and place to call their own. We want to beat Abercrombie & Fitch, and we’ll all need to work together to make that happen.
Thanks for your hard work. Together we can do this!
Best regards,
William
1. Do you think some kind of reward would be appropriate to motivate Abigail? If so, what should it be?
a. A choice of work assignments
b. Two days off with pay
c. A $200 bonus
2. What sentences should I use to increase Abigail’s expectancy P&O expectancy?
a. You asked for new promotional posters last week—I’ve gotten those for you.
b. Any employee who increases sales by 10% this month will receive a reward.
c. Your attitude is critical in this effort—I know you can do it.
3. Which of the following sentences should I use to increase Abigail’s E&P expectancy?
a. Any employee who increases sales by 10% this month will receive a reward.
b. You can choose your own reward if you hit your goals.
c. You asked for new promotional posters last week—I’ve gotten those for you.
Answer:
c b a
Explanation:
1. c
You need to make the person feel good about their hard work.
2. b
They make the right point.
3. a
It pretty much makes the most sense as you don't want the employ to have too much power.
For employee encouragement Macy’s shall do the following:
1. Reward to Abigail:
a) A choice of work assignments
2. Performance & outcome expectancy:
c) Your attitude is critical in this effort, I know you can do it.
3. Effort & Performance Expectancy:
a) Any employee who increases sales by 10% this month will receive a reward.
What do you mean by Performance and Outcome (P&O) Expectancy?
Performance Expectancy:
The degree to which a person expects that employing a system will enable him or her to improve their performance at work is known as performance expectancy (PE).
Outcome Expectancy:
Expected results of a conduct, whether favorable or bad, are referred to as outcome expectations.
Expectancy theory consists of three parts:
Effort Performance ⇒ Result ⇒ RewardoutcomeTherefore Macy should focus on employee motivation by combining effort, performance & outcome element under agency theory.
To know more about Performance & Outcome (P&O) Expectancy refer:
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The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. The stock currently sells for $37 per share. a. What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the expected capital gains yield? (Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)
Answer:
Dividend yield= 6.37%
Expected capital gains yield= 4.5%
Explanation:
The next dividend payment that will be made by Savitz incorporation is $2.34 per share
The dividends are expected to have a growth rate of 4.5 percent forever
The stock is currently being sold for $37 per share
(A) The dividend yield can be calculated as follows
Dividend yield= Dividend per share/Price per share
= $2.34/$37
= 0.0632×100
= 6.32%
Dividend yield= 6.32%
(B) The expected capital gains yield can be defined as the increase in the price of the stock that is being sold. Since the growth rate of the stock is expected to remain at 4.5% forever then, the expected capital gains yield is 4.5%
Hence the dividend yield is 6.32% and the expected capital gains yield is 4.5%