Answer:
the demand is 3,730 units
Explanation:
since the predictive model estimates demand as 4,000 - 6p, then at a selling price of $45 per ebook, the total demand = 4,000 - (6 x 45) = 4,000 - 270 = 3,730 units.
the estimated profit when demand = 3,730 is:
total revenue = 3,730 x $45 = $167,850
- variable costs = 3,730 x $5 = ($18,650)
- fixed costs = ($170,000)
net loss = -$20,800
I attached the excel spreadsheet model
Given the provided variable and fixed costs, selling price, and the predictive model of demand, it is possible to predict that Eastman Publishing Company would operate at a loss under these conditions.
Explanation:Eastman Publishing Company's profit or loss can be determined by subtracting the total variable and fixed costs from the total revenue. The total variable cost can be determined by multiplying the variable cost per unit ($5) by the demand. The demand can be calculated using the predictive model given, demand = 4,000 - 6p, plugging in $45 for p (the price of the e-book), gives us a demand of 4,000 - 6*45 = 4,000 - 270 = 3,730 e-books.
Now, calculate the total variable cost: 3,730 (demand) * $5 (variable cost per unit) = $18,650.
The total revenue can be calculated by multiplying the demand by the price: 3,730 * $45 = $167,850.
To calculate the profit or loss, subtract the total costs from the total revenue: profit or loss = total revenue - total costs => P/L = $167,850 - ($170,000 + $18,650) = -$20,800.
So, Eastman Publishing Company would be predicted to operate at a loss under these conditions.
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What traditional recruitment method communicates the firm's employment needs to the public through media such as newspapers and industry publications? advertising job fairs internships recruiters
Answer:
The correct answer is letter "A": advertising.
Explanation:
Advertising has been the most common form of publishing job offerings. Mostly, companies use newspapers to post new job opportunities but other mediums of information such as radio or television are also utilized. Though, nowadays most recruiters are increasing the use of social media platforms like LinkedIn to capture prospective employees.
Final answer:
Advertising in traditional media like newspapers and industry publications is a key method for firms to communicate job opportunities. The rise of the internet and sites like LinkedIn has made job seeking easier, but a mix of active and passive job search strategies is recommended for best results.
Explanation:
The traditional recruitment method that communicates a firm's employment needs to the public through media such as newspapers and industry publications is known as advertising. This method is a key component of what's often called the 'visible job market', wherein employers actively seek to fill positions by making them known to a wide audience. In contrast, the 'invisible' or 'hidden job market' requires a more proactive approach from job-seekers, such as networking, to uncover opportunities that aren't publicly advertised.
With the rise of the internet, many employers have shifted towards online platforms to post job opportunities. Company websites often feature an Employment or Careers section where these opportunities are listed. Furthermore, social media and professional networking sites, like LinkedIn, have revolutionized job-seeking, making it easier to learn about and apply for new positions.
However, job-seekers should not limit themselves to passive methods such as responding to ads. They should engage in various job search strategies, which may involve attending job fairs, networking at professional events, or utilizing informational interviews to tap into the hidden job market.
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,000. The division sales for the year were $1,047,000 and the variable costs were $860,000. The fixed costs of the division were $190,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice $187,000 decrease $130,000 decrease $187,000 increase $54,000 decrease $57,000 decrease
If project A generates $10 million of free cash flow over its five year useful life and project B generates $8 million of free cash flow over its useful life, then Project A will have a shorter payback period than Project B, assuming both projects require the same initial investment.
Answer: False
Explanation:
This seems to me like a True or False question and the answer would be False.
Payback period is calculated on the basis of the timing of cash flows and since we do not know the useful life of Project B neither do we know the timing of it's cash flows, we cannot say for certain that Project A has a shorter Payback period.
For example, the initial investment could be $5 million for instance but Project A only pays $10 million on its 5th year whereas Project B had a useful life of 4 years and paid $2 million each of those years. Meaning it would have paid back before the end of the 3rd year.
If you need any clarification do react or comment.
Tile Depot, specializing in retail of construction materials, carries a popular flooring tile. The annual demand is estimated to be 5,000 cases. The ordering cost of this tile is $250 per order and the carrying cost is $10 per case per year. Tile Depot opens six days per week that is equivalent to 300 working days per year. The lead time for this item is usually two weeks or 12 working days. The economic ordering quantity (EOQ) for this item is a.$250 b.$300 c.$400 d.$500 e.$600
Answer:
d.$500
Explanation:
Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.
As per given data
Annual Demand = 5,000 cases
Ordering cost = $250
Carrying cost = $10
EOQ = [tex]\sqrt{\frac{2 X S X D}{H} }[/tex]
EOQ = [tex]\sqrt{\frac{2 X 250 X 5,000}{10} }[/tex]
EOQ = 500
Answer:
EOQ = 500 units
Explanation:
Explanation:
The Economic Order Quantity (EOQ) is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding cost is exactly the same as the ordering cost.
It is calculated as follows:
EOQ = √(√2× Co D)/Ch)
Co- ordering cost - 250,
Ch - holding cost - 10
D- annual demand- 5000
So we apply the formula:
EOQ = √(2× 250 × 5,000/10)
EOQ = 500 units
Cullumber Company purchased a new machine on October 1, 2022, at a cost of $90,880. The company estimated that the machine has a salvage value of $8,640. The machine is expected to be used for 72,700 working hours during its 8-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end.
Answer:
The workings are made below;
Explanation:
Depreciation Expense for 2022 =($90,880-$,8,640)/8=$10,280*3/12=$2,570
Depreciation Expense for 2023=$10,280 ($90,880-$8,640)/8
The depreciation for 2022 is calculated on pro rata basis from the date of purchase till December 31,2022.
Where as depreciation for 2023 is charged on full year basis as the asset was used for the whole year.
Answer:
Year 2022 = $2,570
Year 2023 = $10,280
Explanation:
Original cost = $90,880
Salvage value = $8,640
Number of useful years = 8
Using the straight line method ;
Annual depreciation = (Original cost - salvage value) ÷ Number of useful years
Annual depreciation = ($90,880 - $8640) ÷ 8
Annual depreciation = $82,240 ÷ 8
Annual depreciation = $10,280
2023 depreciation value = $10,280
However, the machine was purchased in October 1, 2022:
Therefore, 2022 depreciation = 3 months;
Monthly depreciation = $10,280 ÷ 12 = $856.6667
Therefore, 2022 depreciation :
$856.6667 × 3 = $2,569.999
=$2,570
Consider a mutual fund with $300 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $1.5 million. The stocks included in the fund's portfolio increase in price by 7%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of .75%, which are deducted from portfolio assets at year-end. a. What is the fund's net asset value at the start and end of the year?
Answer: Start = $300 million
End = $318.59 million
Explanation:
NAV can be calculated by dividing the funds Assets net of Liabilities by the total number of outstanding shares.
At start of the year NAV is $300 million and NAV per share is therefore,
= 300 million/ 10 million
= $30 per share.
Ending NAV
During the year the fund made Investments and increased by a price of 7%
= 300 million (1 + 0.07)
= $321 million
We still have to subtract the 12b-1 fees that the fund charges though and that would result in,
= 321 million * (1 - 0.0075)
= 318.5925
= $318.59 million.
Dividing this by the total number of outstanding shares we have,
= 318.59 /10
= $31.86
$31.86 is the NAV per share at year end.
Flingers Inc. reveals the following information in their annual report for FY 2004. Earnings and Expenses Sales $10,000,000 Cost of goods sold $5,000,000 Pre-tax earnings $500,000 Merchandise inventory $80,000 Total assets $2,000,000 What is Flingers' return on assets?
Answer:
25%
Explanation:
Given: Sales= $10,000,000
Cost of goods sold= $5000000.
Pre-tax earning= $500000.
Merchandise inventory= $80000.
Total assets= $2000000.
Now, computing the value of return on assets.
Formula; [tex]Return\ on\ assets= \frac{Net\ income}{Average\ total\ assets} \times 100[/tex]
⇒ [tex]Return\ on\ assets= \frac{500000}{2000000} \times 100[/tex]
⇒ [tex]Return\ on\ assets= 0.25 \times 100[/tex]
∴ Return on assets= [tex]25\%[/tex]
Hence, Flinger´s return on assets is 25%
A loan of XX is repaid with level annual payments at the end of each year for 10 years. You are given: i.The interest paid in the first year is 3,600; and ii.The principal repaid in the 6th year is 4,871. Calculate XX.
Final answer:
The initial loan amount "XX" cannot be determined with the provided information, as the interest rate and the annual payment amount are missing, which are necessary to calculate the loan balance after 5 years or the original loan amount.
Explanation:
The problem at hand is to calculate the initial loan amount, denoted as XX, which is repaid with level annual payments over 10 years. Given the principal repayment amount in the 6th year and the interest payment in the first year, we can calculate the initial loan amount using the amortization concept of loans. Unfortunately, the question doesn't provide the interest rate or the annual payment, both of which are essential to finding the loan balance after 5 years or calculating the original loan amount. Additional information is needed to solve this problem accurately.
Consider the topic of the "American Politics in Comparative Perspective" feature. How would Congress be different if it had only a single chamber? Who would be the "winners and losers" under such an institutional configuration?
Answer:
American feel their democracy is the best based on his uniqueness and authenticity with respect to political institution, parties and interest groups.
The house of congress will not be the same if there is only on single chamber for a common ground for discussion and the coming together of legislative in one chamber
In the legislative house, there consist of both the upper and lower houses, who makes laws and institutes the constitutional execution for the benefit of the nation.
Explanation:
American Politics in Comparative Perspective: American have the believe that their democracy is the best in terms of uniqueness and authenticity than other countries of the world. with this they feel they have put a tremendous amount of work for their democracy to be the best in the world. The people of America thinks in regarding the areas of political institution, culture, interest group, political parties it is unique.
In the Legislative house, there are two houses which are, the upper legislative house and the lower legislative house.
The Congress would not be the same if only there is a single chamber that will have a common ground for discussion and the assembly of the legislative will be put in the single chamber only. the two l houses of legislation have a different methods to meet the compliance of the constitution. If the single chamber is available, then there will be an approach common for all the legislative processes and legislature will be taken away from the single chamber only.
Under an institutional configuration losers will be with the winners in the house and they will implement the constitutional drives in the house and make sure the nation meets its constitutional implementation for benefit of the nation
A single-chamber Congress would facilitate faster decision-making, benefiting the political majority. However, it could also lead to unchecked legislation and disadvantage minority interest groups due to a reduced system of checks and balances.
Explanation:If the Congress only consisted of a single chamber, meaning a unicameral system, the legislative process can become faster and more efficient as the entire institution would operate unilaterally. This configuration might streamline decision-making and eliminate inter-chamber disagreements which can slow down legislation. However, this framework could also reduce the checks and balances principle inherent in a bicameral system, potentially leading to more unchecked or unbalanced legislation.
The 'winners' in this case could be the political majority or the party in control of the legislature, as they would gain the ability to pass laws more quickly with fewer roadblocks. 'Losers,' on the other hand, could be the political minority or smaller interest groups. Such groups would have less opportunity to influence legislation because their ideas would be less likely to be considered with the absence of a second chamber to offer a secondary review or counterargument.
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According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 70 new workstations at a cost of $75,000 each and also spends $10 million for an addition to its assembly plant to accommodate the new workstations, then its annual depreciation costs will rise by:
a. 4% of $15,250,000 or $610,000.
b. $1,550,000.
c. $193,750.
d. $800,000.
e. $775,000
Answer:
Its annual depreciation costs will rise by 4% of $15,250,000 or $610,000. The right answer is a
Explanation:
In order to calculate the amount its annual depreciation costs will rise by, we would have to calculate first the total cost with the following formula:
Total cost=(Number of workstation added×cost of work station)+money spend
Total cost=(70×$75,000)+10,000,000
Total cost=$15,250,000
Therefore, Annual depreciation=4%×$15,250,000
=$610,000
Its annual depreciation costs will rise by 4% of $15,250,000 or $610,000
Final answer:
To determine the rise in annual depreciation costs after adding new workstations and expanding the assembly plant, the straight-line method of depreciation would be used. However, without the specific depreciation rate, we cannot determine the exact increase in annual depreciation costs from the provided options.
Explanation:
The question is asking about the increase in annual depreciation costs for a company after adding new workstations and expanding its assembly plant. To calculate the additional depreciation costs, we assume that the straight-line method of depreciation is used since the provided examples illustrate this method. With this method, the total cost of the asset is spread evenly over its useful life.
If the company adds 70 new workstations at a cost of $75,000 each, the total cost for the workstations is 70 times $75,000, which equals $5,250,000. The addition to the assembly plant costs $10,000,000. The combined cost is therefore $5,250,000 (workstations) + $10,000,000 (assembly plant addition) = $15,250,000.
Without the specific depreciation rate for the new assets, we cannot determine the exact increase in annual depreciation. Thus, we are unable to select the correct option among the given choices a to e. We would need the specific depreciation rate applied to the combined cost of the new workstations and the assembly plant addition to calculate the annual increase in depreciation.
Samantha, a one-third partner, has an adjusted basis of $90,000 for her partnership interest. If Samantha sells her entire partnership interest to Emma for $100,000 cash, what is the amount and character of Samantha's gain or loss from the sale?
a. $10,000 capital gain.
b. $10,000 ordinary income.
c. $20,000 ordinary income; $10,000 capital gain.
d. $10,000 capital loss; $20,000 ordinary income.
Answer:
Correct option is D.
$10,000 capital loss; $20,000 ordinary income.
Explanation:
Samantha's share of unrealized receivables is $20,000 ($60,000 unrealized receivables × 1/3 interest). Susan will recognize $20,000 of ordinary income and a $10,000 capital gain determined as the difference between the total gain of $30,000 and the ordinary income of $20,000.
Answer:
$10,000 capital gain.
Explanation:
Given that:
Adjusted basis of $90,000Sell her interest for $100,000So the difference between her basis and sales interest is:
$100,000 - $90,000
= $10,000
She will have a gain on sales of her interest because she receives the only cash for the sales and the amount is greater than her basis in her partnership. Therefore, the gain will be seen as capital
The cost to produce Part A was $12 per unit in 2019. During 2020, it has increased to $15 per unit. In 2020, Sandhill Company has offered to supply Part A for $11 per unit. For the make-or-buy decision:
a) incremental revenues are $4 per unit.
b) net relevant costs are $3 per unit.
c) differential costs are $4 per unit.
d) incremental costs are $3 per unit.
Answer:
Differential cost = $4 per unit
Explanation:
For a make or buy decision the relevant cash flows include
the differential variable of the two options savings from avoidable fixed costs associated with internal productionDifferential cost = internal cost - External purchase price
= 15- 11
= $4 per unit
The Detroit designated market area (DMA) has approximately 2 million television households. Audience research shows that 60 percent of these households had their sets turned on during a particular Saturday evening and 300,000 households were watching the Detroit Pistons in a playoff game. The program rating for the game in the Detroit DMA is _____ while the share of audience is ____.
Answer:
Program rating 25%
Share of audience is 15
Explanation:
program rating = 30000/ 60%x 2million = 25%
Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow. Cost Driver Rate Cost Driver Volume Resources used Energy $ 0.50 per machine-hour 8,000 machine-hours Repairs $ 13 per job 800 jobs Resources supplied Energy $ 7,600 Repairs $ 12,700 Sales revenue from finishing totaled $37,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
Solution:
a. To Prepare a traditional income statement.
Finishing Sales 37,000.00
Energy Costs 7,600.00
Repair Costs 12,700.00
20,300.00
Operating Profit 16,700.00
b. To Prepare an activity-based income statement.
Resources Used Unused Resources Resources Supplied
Finishing Sales 37,000.00
Costs
Volume Related Energy 4,500 3,000 7,600.00
Batch Related Repairs 10,500 2,100.00 12,700.00
Total Costs 15,000 5,100 20,100.00 20,100.00
Finishing Operating Profits 15,900.00
Angela is now going to evaluate a new salt process delivery system and wants to know if the upper and lower control limits at 3 standard deviations for the new system will meet the upper and lower controls specifications noted above. The population standard deviation is ? = .07. The data (in percent) from the initial trial samples are:
Sample 1: 1.98 2.11 2.15 2.06
Sample 2: 1.99 2.0 2.08 1.99
Sample 3: 2.20 2.10 2.20 2.05
Sample 4: 2.18 2.01 2.23 1.98
Sample 5: 2.01 2.08 2.14 2.16
Provide your findings to Angela. Please show all work.
a.What are the advantages and disadvantages of Frito-Lay drivers stocking their customers' shelves?
b.Why is quality a critical function at Frito-Lay?
Complete Question:
Frito•Lay's Quality•Controlled Potato Chips Frito-Lay, the multi-billion-dollar snack food giant, produces billions of pounds of odic( every year at its downs of US. and Canadian plants. From the fanning of potatoes—I brida, Moral Carolina, and Michigan—b factory and to retail stores, the ingredients and final product of Lay's chips, for example, are respected at least 11 Ines: h the field, before tnbadhg at the plant, after washing and peeling, at the sizing station, at he fryer, after seasoning, when bagged (for weight), at carton filling, h the warehouse, and as they are placed on the store shelf by Frib-Lay personnel. Similar inspections take place for ib other famous products, including Cheetos, Fritz, Ruffles, and Tostibs. In addition to these employee inspections, the firm uses proprietary vision systems to look for defective potato clips. Chips are pulled off the high-speed line and checked twice if he visits system senses them to be to brown. lire company follows the very strict standards of the American Institute of Baling (AIB), standards that are much tougher than those of the US. Food and Drug Administration. Two warnourted AIB site visits per year keep Frito-Lay's plants cn their toes. Scores, consistently in the "excellent' range, are posted, and every employee knows exactly how the plant is doing. There are two key metrics in Frito-Lay's continuous improvement quality program: (1) total customer complaints (measured on acomplabb per million bag basis) and (2) horror daily statistical process control scores (far oil, moisture, seasoning, and salt content, for chip thickness, for fryer temperature, and for weight). In the Florida plant, Angela McCormack, who holds engineering and MBA degrees, oversees a 16-member quality assurance staff. They watch all aspects of quality, including trailing employees on the factory floor, monitoring automated processing eq.ibment, and developing and updating statistical process control (SPC) charts. The upper and lower control limits for one checkpoint, salt content in Lay's chips, are 2.22% and 1.98%, respectively. To see exactly how these limits are created using SPC, watch the vkleco that accompanies this case. Angela is now gonged b evaluate a new salt process delivery system and wants to Prow if the per and bv.er control limits at 3 standard deviations for the new system will meet the upper and lower control specifications noted above. the data (in percents) from the initial trial samples ae:
Sample 1:1.98, 2.11, 2.15, 206
Sample 2: 1.99, 2.0, 208, 1.99
Sample 3: 2.20, 2.10. 220, 205
Sample 4: 2.18, 2.01, 223, 1.98
Sample 5: 2.01, 2.08, 2.14, 216
Provide the report to Angela
Answer and explanation:
check the attached file for comprehensive step by step solution
The mean of each sample was calculated and then used to determine an overall mean, which was then utilized to compute upper and lower control limits. The standard deviation was incorporated into this calculation. The computed control limits were recommended for comparison with the system's specifications.
Explanation:To evaluate the new salt process delivery system, we will first calculate the mean of each sample, and then calculate the overall mean. When we have the overall mean, we can compute the upper and lower control limits.
Mean of Sample 1 = (1.98 + 2.11 + 2.15 + 2.06)/4 = 2.075Mean of Sample 2 = (1.99 + 2.0 + 2.08 + 1.99)/4 = 2.015Mean of Sample 3 = (2.20 + 2.10 + 2.20 + 2.05)/4 = 2.1375Mean of Sample 4 = (2.18 + 2.01 + 2.23 + 1.98)/4 = 2.10Mean of Sample 5 = (2.01 + 2.08 + 2.14 + 2.16)/4 = 2.0975The overall mean is then (2.075 + 2.015 + 2.1375 + 2.10 + 2.0975)/5 = 2.085
Using the formula for control limits, which is mean ± (3 × standard deviation), and given the standard deviation is 0.07, the upper control limit will be 2.085 + (3 × 0.07) = 2.295 and the lower control limit will be 2.085 - (3 × 0.07) = 1.875. Angela should compare these control limits with the system's specifications.
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Cornish Company had the following results of operations for the past year: Sales (20,000 units at $22) $ 440,000 Direct materials and direct labor $ 200,000 Overhead (40% variable) 100,000 Selling and administrative expenses (all fixed) 92,000 (392,000 ) Operating income $ 48,000 A foreign company (whose sales will not affect Cornish's market) offers to buy 3,000 units at $17.00 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000. If Cornish accepts the offer, its profits will:
Answer:
Increase by $13,500
Explanation:
Cornish Company
Selling price per unit$17.00
Variable costs per unit
Direct materials and direct labor($200,000/20,000 units)$10.00
Variable overhead[(40% * $100,000)/20,000 units]2.00
Total variable costs per unit($12.00)
Contribution margin per unit$5.00 Units in order* 3,000units
Total contribution margin$15,000
Less incremental fixed costs:
Overhead$500
Selling and administrative1,000
Total incremental fixed costs($1,500)
Incremental income from order$13, 500
Therefore If Cornish accepts the offer, its profits will increase by $13,500
A review of Parson Corporation's accounting records found that at a volume of 144,000 units, the variable and fixed cost per unit amounted to $6 and $2, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 137,000 units?
Answer:
1,110,000
Explanation:
Parson Corporation's
Volume of unit × Fixed cost per unit
144,000 unit ×2 cost per unit= 288,000
Volume of unit × Variable cost per unit
137,000 unit × 6 cost per unit = 822,000
Therefore
822,000+288,000= 1,110,000
Parson would anticipate 1,110,000 of total cost at a volume of 137,000 units.
Answer:
$ 1, 100,000
Explanation:
Total fixed costs=(2 x 144,000)= $288,000
Hence total cost at 137,000 units=Total fixed costs+Total variable costs
=$288,000 + (6 x 137,000)
=$1,110,000.
A process currently services an average of 50 custom-ers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 75 percent of the current level in five years and management wants to have a capacity cushion of just 5 percent, what capacity requirement should be planned?
Answer:
40 customers
Explanation:
Expected Demand Rate*current service rate/current utilization=capacity requirement/required utilization
.75*(50/90)=x/.95
x=39.58
x=40 customers
To determine the capacity requirement, calculate the future demand and divide it by the utilization rate minus the desired capacity cushion.
Explanation:To calculate the capacity requirement that should be planned, we need to determine the future demand and the desired capacity cushion. The current demand is 50 customers per day with a utilization rate of 90% and a capacity cushion of 10%. In five years, the demand is expected to be 75% of the current level and management wants a capacity cushion of 5%.
First, we calculate the future demand by multiplying the current demand by 0.75: future demand = 50 * 0.75 = 37.5 customers per day.
Next, we calculate the required capacity by dividing the future demand by the utilization rate (1 - capacity cushion): required capacity = 37.5 / (0.90 - 0.05) = 44.12 customers per day.
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Bad news messages should be delivered using ________. the direct strategy the indirect strategy a mixture of the direct and indirect strategies the direct or indirect strategy
Answer:
The direct or indirect strategy
Explanation:
When delivering a bad message there are usually five things that have to be put into consideration. They include:
- How to get the bad message to the person concerned.
- How the individual/audience will receive the message.
- Maintaining a good relationship with the receiver of the bad news.
- Maintaining a good reputation for the company.
- Avoiding any future retaliation.
(I) The Direct Approach
When using the direct approach to deliver a bad message, the message must be delivered in clear and concise statements, stating reasons why it happened and ending it in a positive note by offering solutions to the problem.
(II) The Indirect Approach
In the indirect approach it is necessary for the individual delivering the bad message to create some form of common ground with the receiver of the message to ease the tension. Then the message is delivered in clear statements. It is better to start with the positive part of the message before moving into the negative part. The message should be concluded on a positive note to avoid future retaliation.
Final answer:
Bad news messages should generally be delivered using the indirect strategy, which involves starting with a buffer statement, providing an explanation, and offering solutions or alternatives.
Explanation:
When delivering bad news messages, it is generally recommended to use the indirect strategy. This involves starting with a buffer statement to soften the blow, providing a clear explanation of the situation, and offering any potential solutions or alternatives. The goal is to ease the impact of the bad news and maintain a positive relationship with the recipient.
Using the direct strategy can be too abrupt and may cause unnecessary conflict or negative reactions. However, in some cases where the bad news is simple, the direct strategy may be appropriate.
It is important to note that a mixture of both strategies can also be used, depending on the nature of the situation and the relationship between the sender and the recipient.
Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increase in net capital outflow, or a decrease in net capital outflow for the United States. Transaction Net Exports Net Capital Outflow Increase Decrease Increase Decrease The Sony pension fund buys a bond from the U.S. Treasury. A South Korean tourist buys some Sunkist oranges from an American farmer. An American buys a Toyota. An American buys a share of Sony stock.
Answer:
A. Decrease net capital outflow
B. Increase in net exports
C. Decrease in net exports.
D. Increase net capital outflow.
Explanation:
A. When the Sony pension fund buys U.S treasury then there is a inflow of capital. Hence, this will decrease the net capital outflow.
B. The Sunkist oranges is purchased by the South Korean tourist from the american farmer will increase the exports of the U.S. Hence, there is an increase in the net exports.
C. When a Toyota is purchased by an American then this will increase the imports of United states and hence, there is a reduction in the net exports.
D. The shares of Sony are purchased by an american, so there is a outflow of capital and this will increase the net capital outflow.
Each transaction impacts either net exports or net capital outflow for the U.S: buying a bond from the U.S. Treasury increases net capital inflow, buying Sunkist oranges increases net exports, buying a Toyota decreases net exports, and buying a share of Sony stock increases net capital outflow.
Explanation:When the Sony pension fund buys a bond from the U.S. Treasury, there is an increase in net capital inflow, as this represents financial capital from Japan flowing into the U.S. economy. The South Korean tourist buying Sunkist oranges from an American farmer is an increase in net exports for the U.S., as this is a sale of American goods overseas. An American buying a Toyota would lead to a decrease in net exports, as this is a purchase of foreign goods. Transactions such as an American buying a share of Sony stock would result in an increase in net capital outflow, as this is an investment of U.S. capital in a foreign company.
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Which of the following is true for American options? A. Put-call parity provides an upper and a lower bound for the difference between call and put prices B. Put call parity provides an upper bound but no lower bound for the difference between call and put prices C. Put call parity provides a lower bound but no upper bound for the difference between call and put prices D. There are no put-call parity results
The statement that holds true for the American Option is (A) Put-call parity provides an upper and lower bound for the difference between call and put prices
Explanation:
According to the Put-call parity concept when we hold the short European put and long European call of similar class the return delivered is same as holding one forward contract of the same underlying asset, that has the same expiration, forward price and which is equal to the strike price of the option
In financial management put–call parity concept is used to define the relationship that exist between the price of a European call option and European put option, and both of them have identical strike price and expiry
The formula used for calculating put call parity is
c + k = f +p
where (c) call price plus the (k) strike price of both options is equal to the futures price(f) plus the put price(p)
Put-call parity provides an upper and a lower bound for the difference between call and put prices.
Explanation:The correct answer is A. Put-call parity provides an upper and a lower bound for the difference between call and put prices.
Put-call parity is a fundamental concept in options pricing, which states that the sum of a call option and a put option with the same strike price and expiration date equals the price of the underlying asset.
Using put-call parity, we can derive upper and lower bounds for the difference between call and put prices. These bounds are based on the cost of carry and the time value of money.
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Billy Bob runs a seafood restaurant. Last year he earned $50,000 in revenue. He had explicit costs of $20,000. Billy Bob could have made $30,000 working for the county and could have received an additional $20,000 if he rented out his building and equipment. Calculate Billy Bob's economic profit.
Answer:
-$20,000
Explanation:
Economic profit takes into account opportunity cost of an activity.
Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives. Opportunity cost is also known as implicit cost.
Because Bobby chose to work at the seafood resutrant, he forgoed the opportunity of working at the county. Thus, his opportunity cost is $30,000.
Also, if he wasn't making use of the restaurant, he could have rented it out. Thus, his opportunity cost of making use of the restaurant is $20,000.
Economic profit = Revenue - (Implicit cost + Explicit cost)
$50,000 - ($20,000 + $30,000 + $20,000) = -$20,000
I hope my answer helps you
On January 2, 2021, L Co. issued at face value $26,000 of 4% bonds convertible in total into 2,200 shares of L's common stock. No bonds were converted during 2021. Throughout 2021, L had 2,200 shares of common stock outstanding. L's 2021 net income was $8,000. L's income tax rate is 25%. No potential common shares other than the convertible bonds were outstanding during 2021. L's diluted earnings per share for 2021 would be:
Final answer:
The diluted earnings per share (EPS) for L Co. is calculated by dividing the net income minus any preferred dividends by the sum of outstanding shares and dilutive potential shares from convertible securities. L Co.'s diluted EPS for 2021 is $1.36364 after accounting for the tax rate.
Explanation:
The student asked how to calculate diluted earnings per share (EPS) for L Co. for the year 2021, considering that L Co. has convertible bonds that could potentially be converted into shares of common stock. To find the diluted EPS, we first need to calculate the net income available to common stockholders and then divide this by the diluted number of shares outstanding. The formula for diluted EPS is Net Income - Preferred Dividends / Average Shares Outstanding + Dilutive Convertible Securities.
Since no preferred dividends are mentioned, we assume there are none, and the net income is $8,000. For the diluted number of shares, we add the shares that the bonds could convert into. L Co. has 2,200 shares outstanding and can be converted into another 2,200 shares via bonds. Therefore, the diluted number of shares would be 2,200 (existing) + 2,200 (potential from conversion), giving us a total of 4,400 shares.
Diluted EPS = Net Income / (Existing Shares + Convertible Shares) = $8,000 / 4,400 = $1.81818. This value is pre-tax and to get the after-tax diluted EPS, you would multiply by (1 - Tax Rate), so $1.81818 * (1 - 0.25) = $1.36364.
Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 73 units at $99 10 Sale 48 units 15 Purchase 93 units at $105 20 Sale 53 units 24 Sale 13 units 30 Purchase 27 units at $111 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods Sold LIFO Method DVD Players
Answer:
Sale - November 10
Cost of Sales
= 48 units × $99
= $4,752
Inventory Balance
=25 units × $99
=$2,475
Sale - November 15
Cost of Sales
=53 units × $105
= $5,565
Inventory Balance
40 units × $105 = $4,200
25 units × $99 = $ 2,475
Total = $6,675
Sale - November 24
Cost of Sales
= 13 units × $105
= $ 1,365
Inventory Balance
27 units × $105 = $ 2,835
25 units × $99 = $ 2,475
Total = $5,310
Explanation:
LIFO Inventory System sells the Recently Acquired Inventory First followed By Older Inventory Acquired.
Final answer:
Using the LIFO method, we calculate COGS for each sale date by using the most recent inventory costs first. The total COGS for Nov 10 is $4752, Nov 20 is $5565, and Nov 24 is $1365. Remaining inventory is updated after each transaction, with the most recent purchase prices used first.
Explanation:
Perpetual Inventory Using LIFO
When applying the Last-In, First-Out (LIFO) method in a perpetual inventory system, the most recent inventory costs are used first when calculating the cost of goods sold (COGS). Let's determine the COGS for each sale and the ending inventory balance after each sale:
November 10 Sale of 48 units: We have only the beginning inventory, so all 48 units at $99 are sold, totaling $4752 in COGS.
November 20 Sale of 53 units: We have 25 units left from the beginning inventory at $99 and we sold 28 units from the new purchase at $105, totaling $2625 (25 units x $99) + $2940 (28 units x $105) = $5565 in COGS.
November 24 Sale of 13 units: All 13 units are from the new purchase at $105, totaling $1365 in COGS.
The remaining inventory after each sale would be calculated by deducting the COGS from the total inventory available before the sale. After the sales on November 10, 20, and 24, and the purchase on November 15, the balance is 73 units - 48 units sold + 93 units purchased - 53 units sold - 13 units sold = 52 units at $105. When the additional 27 units are purchased on November 30 at $111, the inventory balance will include these new units at the higher price, with the older inventory listed thereafter.
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Oriole Company's trial balance of income statement accounts only for the year ended December 31, 2020 included the following:
Debit Credit
Sales revenue $277000
Cost of goods sold $168000
Administrative expenses 35000
Loss on disposal of equipment 17400
Sales commission expense 16300
Interest revenue 10300
Freight-out 5900
Loss from discontinued operations 24500
Bad debt expense 6400
Other information:
Oriole's income tax rate is 30%.
Finished goods inventory:
January 1, 2020 $158000
December 31, 2020 141000
On Oriole's multiple-step income statement for 2020, Cost of goods manufactured is:
A. $190900
B. $185000
C. $156900
D. $151000.
Answer:
$185,000
Explanation:
Cost of goods manufactured =( Opening inventory +purchase )-closing inventory
Opening inventory = $158,000
Purchase =cost of goods on trial balance = $168,000
Closing inventory = $ 141000
Cost of goods manufactured = (158,000 + 168,000)-141000 = $185,000
Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Products
A B C D
Direct materials $16.60 $20.50 $13.50 $16.20
Direct labor 18.60 22.00 16.40 10.40
Variable manufacturing overhead 5.40 6.60 9.10 6.10
Fixed manufacturing overhead 28.50 15.40 15.50 17.50
Unit product cost 69.10 64.50 54.50 50.20
Additional data concerning these products are listed below.
Products
A B C D
Grinding minutes per unit 2.50 1.60 1.20 0.80
Selling price per unit $83.70 $76.10 $72.90 $67.60
Variable selling cost per unit $3.60 $4.10 $3.80 $4.50
Monthly demand in units 4,000 3,000 3,000 5,000
The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines?
Answer:
Product D
Explanation:
The contribution margin will be used for this assessment
Contribution margin is the selling price of an item less the associated variable selling cost to determine the extra profit for each unit of an item sold.
However , the grinding hour being the constraint in this scenario , the contribution per minute of production will be used.
A B C D
Direct materials 16.60 20.50 13.50 16.20
Direct labor 18.60 22.00 16.40 10.40
Variable Man. 5.40 6.60 9.10 6.10
Variable selling C. 3.60 4.10 3.80 4.50
Selling price 83.70 76.10 72.90 67.60
Contribution/unit 39.50 22.90 30.10 30.40
Minute /unit 2.50 1.60 1.20 0.8
Contribution /min 15.8 14.13 25.08 38
Product D with the highest contribution per minute of production makes the most profitable use of the machine.
Riveria Co. makes and sells a single product. The current selling price is $32 per unit. Variable expenses are $20 per unit, and fixed expenses total $43,200 per month. Sales volume for May totaled 4,100 units. Required: a. Calculate operating income for May. b. Calculate the breakeven point in terms of units sold and total revenues. c. Management is considering installing automated equipment to reduce direct labor cost. If this were done, variable expenses would drop to $14 per unit, but fixed expenses would increase to $67,800 per month. 1. Calculate operating income at a volume of 4,100 units per month with the new cost structure. 2. Calculate the breakeven point in units with the new cost structure. (Round your answer.) 3. Why would you suggest that management seriously consider investing in the automated equipment and accept the new cost structure
Answer:
Explanation:
Rivera Co
Selling price $32
Less Variable costs $20
Contribution $12
Sales Volume 4,100 units
A.
Sales = $131,200
Variable costs = $82,000
Contribution = $49,200
Fixed costs = $43,200
Gross profit/ operating income = $6,000
B.
Break even.point (units)= fixed costs divided by contribution per unit
= 43,200 / 12
= 3,600 units
Break even point sales = Break even point (units) x unit selling price
= 3,600 x $32
= $115,200
C.
Sales = $131,200
Variable costs = $57,40
Contribution = $73,800
Fixed costs = $67,800
Gross profit/ operating income = $16,000
D.
Break even.point (units)= fixed costs divided by contribution per unit
= 67,800 / ($32 - $14)
= 3,767 units
Break even point sales = Break even point (units) x unit selling price
= 3,767 x $32
= $120,533
E.
Management should consider the project because Operating income increased by $10,000.
However it takes more sales effort to break even (additional 167units more)
Hardware is adding a new product line that will require an investment of $ 1 comma 450 comma 000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $ 320 comma 000 the first year, $ 280 comma 000 the second year, and $ 230 comma 000 each year thereafter for eight years. The investment has no residual value. Compute the ARR for the investment.
Answer:
6.83%
Explanation:
The computation of the accounting rate of return is shown below:
As we know that
Average accounting rate of return = Average annual operating income ÷ Initial Investment
where,
Average annual operating income is
Year 1 net cash inflow $320,000
Year 2 net cash inflow $280,000
Years 3-10 ($230,000 × 8) $1,840,000
Total net cash flows $2,440,000
Less: Total depreciation ($1,450,000)
$990,000
Divided it by years of life ÷ 10 years
Average annual operating income $99,000
So,
Average accounting rate of return is
= $99,000 ÷ $1,450,000
= 6.83%
Mr. Ballard retired in 2018 at age 69 and made his first withdrawal of $35,000 from his traditional IRA. At year-end, the IRA balance was $441,000. In 2019, he withdrew $60,000 from the IRA. At year-end, the account balance was $407,000. Determine how much of each annual withdrawal was taxable assuming that: Mr. Ballard made $320,000 nondeductible contributions to the IRA. Mr. Ballards contributions to the IRA were fully deductible.
Answer:
a)
Contributions amounting to $320,000 were non deductible.
First year of withdrawal:
Taxfree withdrawal % = Uncovered Investments / Current year value x 100
Taxfree withdrawal % = [$320,000 / ($441,000 + $35,000)] x 100
Taxfree withdrawal % = [$320 / $476,000] x 100
Taxfree withdrawal % = 67.23%
Amount of taxfree withdrawal = 67.23% x $35,000
Amount of taxfree withdrawal = $23,530.5
Taxable amount = Total Withdrawal - Tax free withdrawal
Taxable amount = $35,000 - $23,530.5
Taxable amount = $11,469.5
Second year of withdrawal:
Taxfree withdrawal % = [($320,000 - $23,530.5) / ($407,000 + $60,000)] x 100
Taxfree withdrawal % = [$296, 469.5 / $467,000] x 100
Taxfree withdrawal % = 63.48%
Amount of taxfree withdrawal = 63.48% x $60,000
Amount of taxfree withdrawal = $38,088
Taxable amount = $60,000 - $38,088
Taxable amount = $21,912
b)
$35,000 would be included in taxable income in first year and $60,000 would be included in taxable income in second year.
Sheela Dairy Corporation buys unprocessed cows' milk from local farmers. At the dairy, this unprocessed milk is broken down into cream and low-fat milk. The cream can be sold at this point or can be further processed into butter. Which of the following would be relevant in the decision to further process the cream into butter?Question 3 options:a. the amount paid to the farmers to purchase the unprocessed milk.b. the cost of breaking down the unprocessed milk into cream and low-fat milk.c. the portion of corporate fixed expenses that are currently being allocated to cream.d. none of these
Answer:
The answer is D) None of these statement is relevant in the decision to further process the cream into butter.
Explanation:
option A) the amount paid to the farmers to purchase the unprocessed milk: this information is not relevant to further develop the cream and low fat milk to butter. It was already considered before this stage of production.
Option B) the cost of breaking down the unprocessed milk into cream and low-fat milk: this cost was already accounted for since the processing into cream and low fat milk is completed.
Option C) the portion of corporate fixed expenses that are currently being allocated to cream: This information is not going to help in the decision making for further processing.