Answer:
The correct answer is $6,283 .
Explanation:
As per the data given in the question,
Sales = 2,185 × $4.8
= $10,488
Variable cost = 2,185 × $1.00
= $2,185
Contribution = Sales - Variable cost
= $10,488 - $2,185
= $8,303
Fixed cost = $2,030 per week
We can calculate the profit by using following formula:
Profit = Contribution - Fixed cost
By putting the value in the formula, we get
= $8,303 - $2,020
= $6,283
Suppose you hold bonds in your investment portfolio and are concerned about interest rate risk. Other factors equal, which of the following statements is true?
O Your short term bonds have more interest rate risk than your long term bonds.
O Your long term bonds have more interest rate risk than your short term bonds.
O Your high coupon bonds have more interest rate risk than low coupon bonds.
O a & c are true.
O b & c are true.
Answer: Your long term bonds have more interest rate risk than your short term bonds.
Explanation:
Longer term bonds are considered riskier than shorter term bonds. This is because due to their long term it is generally feared that a rise in Inflation could reduce the payments due from the bonds.
There is also a fear that the price will have more exposure to interest rate risk overtime as interest rates could rise over the duration of the bond.
For these reasons, the risk is higher on Longer term bonds and as such the rate charged on them is higher as well.
If you need any clarification do react or comment.
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $32,000 at the beginning of the month and $22,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $57,000 and direct labor cost of $31,000. The actual manufacturing overhead cost incurred was $54,000. The manufacturing overhead cost applied to Work in Process was $53,000. The cost of goods manufactured for June was:
Answer:
$53,000
Explanation:
Cost of Goods Sold is the cost of the inventory units which have been sold.
It is assumed that all the inventory is sold and there is no beginning and ending finished goods Inventory.
Manufacturing Cost
Direct Material $57,000
Direct Labor $31,000
Manufacturing overheads $54,000
Manufacturing cost $142,000
Beginning work in process $32,000
Ending work in process ($22,000)
Cost of Goods Sold $53,000
Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Purple Turtle Group buys on terms of 3.5/15, net 60 from its chief supplier. If Purple Turtle receives an invoice for $2,100.98, what would be the true price of this invoice?
Answer:
$2,027.45
Explanation:
Some companies trade on credit instead of cash. These companies allow their customers to pay later for purchases made today. These firms also provide a benefit to their customers with credit terms to pay earlier than the deadline and get discount on the actual invoice price.
In the given scenario, Purple Turtle Group has purchase goods and received an invoice of $2,100.98 with credit terms of 3.5/15, net 60. This means that the payment is due to be paid in next 60 days with a 3.5% discount if the payment is made within next 15 days. The actual invoice price will be then,
$2,100.98 * (100% - 3.5%) = $2,027.45
Which one of the following statements is TRUE? a. A shareholder-friendly charter will make it harder for a company to be acquired. b. A targeted share repurchase can be used to encourage a hostile takeover. c. A targeted share repurchase is when the company purchases stock from one shareholder at a higher price than it offers to other shareholders. d. An example of asset switching is an option to exchange one piece of real estate for another. e. Anti-takeover charter provisions are good for shareholders because they prevent a raider from stealing the company for a below-market price.
Answer:
The answer is C.) A targeted share repurchase is when the company purchases stock from one of the shareholder at a higher price than it offers to other shareholders.
Explanation:
This indicates that shareholders will benefit when the company is acquired because they usually receive a higher price for their shares.
A corporate body consist of a group of persons or board of directors that are chosen to govern the affairs of a corporation or other large institution.
The correct statement is that a targeted share repurchase is when the company purchases stock from one shareholder at a higher price than it offers to other shareholders.
Explanation:The correct statement among the options is:c. A targeted share repurchase is when the company purchases stock from one shareholder at a higher price than it offers to other shareholders.
A targeted share repurchase is a strategy used by companies to repurchase shares from specific shareholders, often those who hold a significant stake in the company. The company offers a premium price to these shareholders to incentivize them to sell their shares, which can help prevent a hostile takeover.
This strategy is shareholder-friendly because it allows the company to reward loyal shareholders and maintain control over its ownership structure, making it harder for outsiders to acquire the company.
Learn more about targeted share repurchase here:https://brainly.com/question/32945823
#SPJ6
In each of the following situations, identify if there is a positive or negative externality in play. Explain you answer thoroughly.
A local bridal shop shares a strip mall with eight other businesses. Recently all have agreed that the signage at the road needs a facelift. Although all eight businesses use the sign, the other seven are not willing to pay for a fresh paint job. The bridal shop decides to foot the bill and, on their own, they update the sign. Is there a positive or negative externality in play?
Answer:
Positive Externality
Explanation:
Externalities are extra side effects to third un-involved party, without any monetary transaction for the same
Positive Externality is the positive side effect to third un-involved party, without any monetary transaction for the same. Negative Externality is negative side effect to third un-involved party, without any monetary transaction for the same.
The Local bride shop has only paid for the road signage facelift. Despite, all the seven other shops sharing strip mall with it also use the sign. This act of local bride shop will have more visibility & other benefits for all the other 7 businesses linked to it, who have not although paid for it. So, the other 7 businesses have a positive extra effect due to local bride shops' act. Hence it is a positive externality for all of them.
In 2017, Eraser Corp had Revenue of $200 million, Cost of Goods Sold of $100 million (this includes Depreciation of $50 million), Sales General and Admin Expenses of $50 million, and faced a tax rate of 21%. Assume that no money was spent on Capital Expenditures or on additional Net Working Capital. According to our recipe, what should be the after-tax cash flow generated by Eraser Corp in 2017 (in millions)
Answer:
The after-tax cash flow generated by Eraser Corp in 2017 should be $89.5 million
Explanation:
Net income before tax = Revenue - Cost of Goods Sold - Sales General and Admin Expenses = $200 million - $100 million - $50 million = $50 million
Eraser Corp faced a tax rate of 21%,
Tax paid = 21% x $50 million = $10.5 million
No money was spent on Capital Expenditures or on additional Net Working Capital.
The after-tax cash flow generated by Eraser Corp in 2017 = Net income before tax + Depreciation expense - Tax = $50 million + $50 million - $10.5 million = $89.5 million
Note: Depreciation expense is Non-Cash Expenses, so it does not include in Cash Flow.
The following data relate to factory overhead cost for the production of 7,000 computers: Actual: Variable factory overhead $152,800 Fixed factory overhead 49,500 Standard: 7,000 hrs. at $27 189,000 If productive capacity of 100% was 11,000 hours and the total factory overhead cost budgeted at the level of 7,000 standard hours was $207,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.5 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variance Amount Favorable/Unfavorable Controllable variance $ Volume variance $ Total factory overhead cost variance $
Answer:
Variable factory overhead controllable variance = $4,700 Favorable
Fixed overhead volume variance = $18,000 unfavorable
Total factory overhead cost variance = $22,700 Unfavorable
Explanation:
Variable factory overhead rate = $27 - $4.50
= $22.50
Standard variable overhead for actual production = 7,000 × $22.50
= $157,500
Variable factory overhead controllable variance = Standard variable overhead for actual production - Actual variable overhead
= $157,500 - $152,800
= $4,700 Favorable
Fixed overhead applied = 7,000 × $4.50
= $31,500
Budgeted fixed overhead = $207,000 - $157,500
= $49,500
Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead
= $31,500 - $49,500
= $18,000 Unfavorable
Fixed overhead budget variance = Budgeted fixed overhead - Actual fixed overhead
= $49,500 - $49,500
= $0
Total factory overhead cost variance = Controllable variance + Fixed overhead volume variance
= $4,700 + $18,000
= $22,700 Unfavorable
Therefore we have computed all the three points by applying the above formula.
Final answer:
Partially calculating the overhead variances, we find that the Fixed factory overhead Volume Variance is $18,000 unfavorable, and the Total factory overhead cost Variance is $4,700 favorable. We need additional information to calculate the Variable factory overhead Controllable Variance.
Explanation:
To calculate the variance for the factory overhead cost, we must compare actual costs to standard costs. Here is the breakdown based on the provided data:
Variable factory overhead Controllable Variance: This variance is the difference between the actual variable overhead and the standard variable overhead. Actual variable overhead is $152,800, and standard variable overhead would be calculated by taking the standard hours (7,000) times the variable portion of the standard rate. However, the variable portion of the standard rate is not explicitly provided, thus we need more information to calculate this variance.Fixed factory overhead Volume Variance: This variance is the difference between the budgeted fixed overhead and the applied fixed overhead. The budgeted fixed overhead for 7,000 hours was $207,000, which includes both variable and fixed costs. Fixed factory overhead rate is $4.5 per hour, thus budgeted fixed overhead at 7,000 hours is 7,000 hours * $4.5/hour = $31,500. The volume variance is, therefore, the budgeted fixed overhead (using standard hours) of $31,500 minus the actual fixed overhead of $49,500, resulting in a volume variance of $18,000 unfavorable.Total factory overhead cost Variance: This is the difference between the actual total overhead cost and the standard total overhead cost budgeted for the actual level of activity. Total actual overhead cost is the sum of variable and fixed actual costs ($152,800 + $49,500 = $202,300). The standard overhead cost for 7,000 hours was $207,000. The total variance is $202,300 - $207,000 = -$4,700, which is favorable.Due to missing data (the variable portion of the standard rate), we can only partially answer the question.
On January 1, 2016, Hobart Mfg. Co. purchased a drill press at a cost of $30,500. The drill press is expected to last 10 years and has a residual value of $5,500. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2016 and 2017, 22,500 and 79,000 units, respectively, were produced.
Required:
Compute depreciation for 2016 and 2017 and the book value of the drill press at December 31, 2016 and 2017, assuming the straight-line method is used.
2016 2017
Depreciation:
Book Values:
Answer:
Depreciation expense in 2016 and 2017 is $2,500
Book value in 2016 = $28,000
Book value in 2017 = $25,500
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($30,500 - $5,500) / 10 = $2,500
The deprecation expense each year of its 10 year useful life would be $2,500.
Book value in 2016 = $30,500 - $2,500 = $28,000
Book value in 2017 = $28,000 - $2,500 = $25,500
I hope my answer helps you
Randy Rouser completes landscaping work on Nina Tothill’s yard, and Nina writes a $1,750 check from her account at Small Bank. The check is written as payable to Randy Rouser. Randy needs to pay house repair bills, so he indorses the check and delivers it to Christina Caliss, a professional plumber, for value received. Christina in turn deposits the check in her account at Large Bank. Large Bank quickly returns the check to Christina with a mark stating that the check has insufficient funds. Christina wants to know whether Randy or Nina can be held liable for the check. Advise Christina on what she needs to know in order to answer that question.
Answer: Christina can hold Randy liable for the check
Explanation:
In this scenario it is important to note 2 things.
1. Nina PAID Randy.
2. Randy PAID Christina.
The point is that Randy is the one who had a contract with Nina. Even though Nina is the one who's check was not honored, Christina has NO CONTRACT with Nina. This means she cannot hold her liable.
As far as Christina is concerned, the check came from Randy and so she should hold him liable.
Randy on his part can then go back to Nina and hold her liable because he is the one who had a contract with her.
If you need any clarification do comment.
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $18 per share. Later in the year, the company decides to Purchase 100 shares at a cost of $21 per share.
Record the transaction if California Surf reissues the 100 shares of treasury stock at $40 per share.
Answer:
The answer is given below;
Explanation:
Cash (100*40) Dr.$4,000
Treasury Stock,Common 100*21 Cr.$2,100
Paid in Capital, treasury stock 100*(40-21) Cr.$1,900
Suppose that Nowhere State University (NSU) seeks to increase its total revenue from tuition paid by students. To do this, NSU decides to increase the tuition it charges to students. In order for this strategy to work, the demand for NSU education must be . Suppose the true price elasticity of demand for NSU education is 1.4. To expand revenue earned by NSU, the university should the tuition it charges students.
Answer:
Explanation:
The revenue of NSU will rise if only the price elasticity of demand for the courses at NSU is elastic.
This will happens because when a commodity has elastic demand, the increase in its price leads to a rise in consumer’s total expenditure. Revenue will drop if the price elasticity of demand for the courses at NSU is not elastic (inelastic).
This will happen because when a commodity has inelastic demand, increase in its price will lead to reduction in consumer’s total expenditure
Revenue will remain unchanged if the price elasticity of demand for the courses at NSU is unit elastic.
This will happen because when a commodity has unit elastic demand, increase or decrease in price of commodity will not make any change in total firm’s total revenue.
Final answer:
Considering that the demand for NSU education has an elasticity of 1.4, it is elastic. Therefore, NSU should decrease the tuition to expand revenue since the resulting increase in enrollment will likely outweigh the reduction in price.
Explanation:
If Nowhere State University (NSU) seeks to increase its total revenue from tuition and decides to increase the tuition it charges to students, it is important to consider the price elasticity of demand for NSU's education. The price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in the price of that good, which is quantified as the percentage change in quantity demanded divided by the percentage change in price. Given that the true price elasticity of demand for NSU education is stated to be 1.4, this implies that the demand for NSU's education is elastic. For products with elastic demand, an increase in price typically leads to a proportionally larger decrease in quantity demanded, which would result in a decrease in total revenue. Therefore, to expand revenue, NSU should actually decrease the tuition it charges to students. A decrease in tuition might lead to an increase in the quantity of students enrolled that is proportionally larger than the decrease in the price of tuition. Conversely, if the demand were inelastic (< 1), it would mean that the percentage change in quantity demanded is less than the percentage change in price, so increasing the price would increase total revenue.
On January 1, 2014, Pharoah Company purchased a copyright for $2356000, having an estimated useful life of 16 years. In January 2018, Pharoah paid $381000 for legal fees in a successful defense of the copyright.
(a) Copyright amortization expense for the year ended December 31, 2018, should be __________.
O $147250.
O $0.
O $171063.
O $179000.
Answer:
The correct is the last option,$179,000
Explanation:
The initial amortization expense=$2356000/16=$147.250
After four years additional expense was recorded for $381,000 which need to be added to the carrying value of the copyright
Carrying value=$2356000-($147.250*4)=$1,767,000.00
Plus additional qualifying expense =$381,000
Total carrying amount =$2,148,000.00
Remaining useful life =1 years
Revised amortization =$2,148,000.00/12 years=$179,000
The revised amortization from 2018 onward is $179,000
The last option is the correct answer
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools. Annual production and sales level of Product A is 12,000 units, and the annual production and sales level of Product B is 11,500 units. What total overhead cost is allocated/assigned to Product A under activity-based costing?
Question: the budget activity for product A and B was not added to your question. Below is the remaining part of your question and the answer.
Activity Cost Pool Budgeted Cost Product A Product B
Activity 1 $120,600 $3700 $3500
Activity 2 $84,480 $5,900 $6,900
Activity 3 $116,840 $3,200 $6,000
Answer:
Overhead per unit of Product A = $11.796
Explanation:
Activity 1 allocated to Product A = $120,600 * $3700 / ($3700 + $3500)
= $ 61975
Activity 2 allocated to Product A = $84,480 *$5,900 / ($5,900+ $6,900 )
= $ 38940
Activity 3 allocated to Product A = $116,840 * $3,200 / ($3,200 + $6,000)
= $ 40640
Total allocated to Product A = $ 61975+ $ 38940 + $ 40640
= $141,555
Overhead per unit of Product A = Total allocated to Product A/Number of
units produced by product A
Overhead per unit of Product A = $141,555 / 12,000
Overhead per unit of Product A = $11.796
Josh and Alex work as design engineers creating high-end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please sort their various costs, listed below, into the correct category.a. Implicit Costs b. Not a Cost c. Explicit Costs1. The garage space used for baking that can no longer be rented to a college student
2. Advertising space taken out on a social media network
3. Supplies like sugar, butter, and baking trays
4. The money they pay their neighbor's six year old son to deliver cupcakes to their customers
5. The salary Alex earned in his previous job designing light fixtures
Answer:
1. The garage space used for baking that can no longer be rented to a college student - implicit costs
Implicit costs are the opportunity costs, or in other words, what they give up to run the cupcake bakery. In this case, they are giving up on the rent they would get.
2. Advertising space taken out on a social media network - explicit costs
Explicit costs are monetary cost. To advertise on social media, they probably have to pay. In case they can advertise for free, then, this is not a cost.
3. Supplies like sugar, butter, and baking trays - explicit costs
Supplies have to be paid for with money, for these reason, they represent an explicit cost.
4. The money they pay their neighbor's six year old son to deliver cupcakes to their customers - explicit costs
Wages are also explicit costs because they have to be paid for with money. In this case, the kid is like their employee, and the money he earns is his wage.
5. The salary Alex earned in his previous job designing light fixtures - implicit costs
Alex quit his job to run the cupcake bakery instead. The salary he used to earn is something that he has given up, or an opportunity cost. Therefore, this salary represents an implicit cost.
Country Gold Silver Bronze Totals United States 35 39 29 103 China 32 17 14 63 Russia 27 27 38 92 Australia 17 16 16 49 Japan 16 9 12 37 Totals 127 108 109 344 If a medal is picked at random from this group, find the probability that it was A gold medal....................................... A silver medal won by a Russian...................................... A bronze medal or won by the United States............................... A silver medal or a bronze medal...................................... A gold medal and a silver medal....................................... A silver medal given that it was won by Japan................................. A medal won by Australia given that it was bronze.....................................
Answer:
0.3692
0.0785
0.5320
0.6308
0
0.2432
0.1468
Explanation:
A gold medal - Number of gold medals divided by total number of medals:
[tex]P(G) = \frac{127}{344}\\P(G) = 0.3692[/tex]
A silver medal won by a Russian - Number of silver medals won by Russia divided by total number of medals:
[tex]P(S\cap R) = \frac{27}{344}\\P(S\cap R) = 0.0785[/tex]
A bronze medal or won by the United States - Number of total bronze medals added to silver and gold medals from USA, divided by total number of medals:
[tex]P(B\cup U)=\frac{109+35+39}{344}\\P(B\cup U)=0.5320[/tex]
A silver medal or a bronze medal - Number of total silver plus total gold medals divided by total number of medals:
[tex]P(S\cup B)=\frac{108+109}{344}\\P(S\cup B)=0.6308[/tex]
A gold medal and a silver medal - A medal can't be both gold and silver, the probability is zero:
[tex]P(G\cap S)=0[/tex]
A silver medal given that it was won by Japan - Number of Japan silver medals divided total medals won by Japan:
[tex]P(S|J)=\frac{9}{37}\\P(S|J)=0.2432[/tex]
A medal won by Australia given that it was bronze - Number of Australia bronze medals divided by total bronze medals:
[tex]P(A|B)=\frac{16}{109}\\P(A|B)=0.1468[/tex]
A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $350 per day. Assume that the additional vehicle would be capable of delivering 1500 packages per day and that each package that is delivered brings in $0.35 in revenue. Also assume that adding the delivery vehicle would not affect any other costs.
a. What are the MRP and MRC?
b.Should the firm add this delivery vehicle?
c. Now suppose that the cost of renting a vehicle doubles to $700 per day.
What are the MRP and MRC?Should the firm add a delivery vehicle under these circumstances? Next suppose that the cost of renting a vehicle falls back down to $350 per day but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? Would adding a vehicle under these circumstances increase the firm’s profits?`
Answer:
1. MRP = $525 , MRC = $350
2. Yes
3. MRP = $525 , MRC = $700
4. No
5.MRP = $262.5. MRC = $350
6. No
Explanation:
Marginal revenue product is the additional revenue generated by an extra unit of input added to a production process while marginal revenue cost incurred as a result of the extra unit added
MRP =change in total revenue/ change in unit.
MRC = change in total cost / change in unit
(a.) Cost of extra hire = $350 , extra delivery capacity = 1500 packages , Rate = $0.35
MRP = 1500*$0.35 = 525
MRC = $350.
MRP is greater than MRC , so it is advisable.
(b.)If the cost of extra hire doubles to $700 , extra delivery capacity $ rate does not change.
MRP remains the same $525.
MRC = $700
MRC is greater than MRP.
It is not advisable
(C)Extra cost of hire = $350 , extra delivery capacity = 750 , rate = $0.35
MRP = 750*0.35=$262.5
MRC = $350
MRC greater than MRP . it is not advisable
The Marginal Revenue Product (MRP) is $525 and the Marginal Cost (MRC) is $350. The firm should add the delivery vehicle as MRP is greater than MRC. When the rental cost doubles to $700 per day, MRP remains $525 but MRC increases to $700, therefore it would not be profitable to add the vehicle. When the rental cost returns to $350 but the number of packages the vehicle can deliver decreases to 750 per day, MRP drops to $262.50 and remains less than MRC, so it is not profitable to add the vehicle.
Explanation:a. The Marginal Revenue Product (MRP) is the additional revenue generated by adding one more unit of input. In this case, the MRP can be calculated by multiplying the revenue generated per package ($0.35) by the number of packages delivered per day (1500), which equals $525.
The Marginal Cost (MRC) is the additional cost incurred by producing one more unit of output. In this case, the MRC is equal to the rental cost of the additional vehicle, which is $350 per day.
b. To determine whether the firm should add the delivery vehicle, we compare the MRP and MRC. Since MRP ($525) is greater than MRC ($350), it would be profitable for the firm to add the delivery vehicle.
c. When the cost of renting a vehicle doubles to $700 per day, the MRP and MRC would remain the same. The MRP would still be $525 and the MRC would still be $700. However, since MRP is no longer greater than MRC, it would not be profitable for the firm to add the delivery vehicle.
When the rental cost returns to $350 per day but the number of packages the additional vehicle can deliver decreases to 750 per day, the MRP would be $262.50 and the MRC would still be $350. Since MRP is still less than MRC, it would not be profitable for the firm to add the delivery vehicle under these circumstances.
Adding the vehicle only increases the firm's profits when MRP is greater than MRC.
Learn more about Adding a delivery vehicle to a fleet and evaluating profitability here:https://brainly.com/question/19672336
#SPJ3
BT Alex Brown Analysts are evaluating Energen (NYSE: EGN) for possible inclusion in a small-cap oriented portfolio. EGN is a diversified energy company involved in oil & gas products. As a result of EGN’s aggressive program of purchasing oil and gas producing properties, BT Alex Brown expects above-average growth for the next five years. The analysts establish the following facts and forecasts for EGN: Current market price is $20 Current dividends are $0.54 Required return on equity is 11% Initial 2-year period of 15% per year earnings and dividend growth Which of the following is closest to the present value of dividends for the first-two years? $0.62 $1.14 $0.71$1.34
Answer:
The correct option is $1.14
Explanation:
D1=D0*(1+g)
D1 is year 1 dividend
g growth rate of dividend of 15%
D1=$0.54*(1+15%)
D1=$0.54*(1+0.15)
D1=$0.54*1.15
D1=$0.621 00
D2=$0.621*1.15
D2=$0.71415
We need to apply the discount factor to each of the dividends,the discount factor is 1/(1+r)^n
r is the rate of return of 11%
n is the relevant year
present value of year 1 dividend=$0.62100*1/(1+11%)^1
present value of year 1 dividend=$0.559459459
Present value of year 2=$0.71415*1/(1+11%)^2
Present value of year 2=$0.579620161
Total value present values=$0.559459459 +$0.579620161
=$1.14
Does PepsiCo’s portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCo’s six segments? Which businesses are the strongest contributors to PepsiCo’s free cash flows?
Answer:
Yes, PepsiCo’s portfolio exhibit good resource fit.
The cash flow characteristics of PepsiCo's six segments are
Ability to scout for future acquisitions. Good credits and return on Investment.Reinvestment in the development of businessAbility to pay off expensesAbility to provide a buffer against future financial challengesGood sales in and out of season,The strongest contributors to PepsiCo is:
Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA)
Frito-Lay ratings is good in that it accounts for 29% of PepsiCo's total revenue as at Septemeber 2019 report.
Final answer:
To determine if PepsiCo's portfolio exhibits good resource fit, an analysis of the cash flow characteristics of each of its six segments is necessary, along with an understanding of the company's dependence on cash flows from investing and financing activities. Evaluating cash tied up in receivables and payables, alongside the company's financial stability, ethics, competitive environment, and workforce treatment, would provide a comprehensive view.
Explanation:
To evaluate if PepsiCo's portfolio exhibits good resource fit, we can first consider if the company's core operations generate more cash than they use. In general, a diversified portfolio like PepsiCo's, with multiple product lines and segments, should balance cash flows across the business divisions. Positive cash flow from operations indicates good resource fit as it implies the company is efficiently generating enough revenue to cover its operational costs and invest in growth.
For a detailed analysis, one would need to examine the cash flow characteristics of PepsiCo's six business segments. These segments include Frito-Lay North America, Quaker Foods North America, North America Beverages, Latin America, Europe Sub-Saharan Africa, and Asia, Middle East and North Africa. The segments' individual performance can indicate which are the strongest contributors to PepsiCo’s free cash flows and their influence on the overall resource fit of the company.
Moreover, understanding the dependence of the organization on cash flows from investing activities and financing activities is pivotal. Predictable cash flows from these activities can support basic operations if necessary, though a heavy reliance may indicate potential resource misalignment within the company's portfolio.
The analysis should also include the amount of cash tied up in transactions outside of the company's direct control, such as receivables and payables. High levels of receivables might indicate that a lot of cash is locked up, whereas a substantial amount in payables could suggest that the company has favorable payment terms with its suppliers, which is a positive sign of cash flow management.
the strength of PepsiCo's portfolio and cash flow contributions is assessed by looking at the firm's financial stability, its ethical considerations, employee treatment, competitive environment, as well as by examining strategic decisions like mergers and product line expansions.
Manchester Corporation had 100,000 shares of common stock outstanding and 5% bonds with a face value of $1,000,000 outstanding throughout the current year. The bonds are convertible into 150,000 common shares. Net income for the current year was $212,500 with a 25% tax rate. What is the amount of the diluted EPS for the current year
Answer:
$.6375
Explanation:
Diluted EPS=Net Income /(Weighted Average shares + any convertible securities )
=$212,500*(1-25%)/(100,000+150,000)
=$.6375
Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its unit costs for each product at this level of activity are given below:
Alpha Beta
Direct materials $30 $10
Direct labor 25 20
Variable manufacturing overhead 12 10
Traceable fixed manufacturing overhead 21 23
Variable selling expenses 17 13
Common fixed expenses 20 15
Total cost per unit $125 $91
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.
Required:
1. What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line?
2. What is the company’s total amount of common fixed expenses?
3. Assume that Cane expects to produce and sell 85,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 15,000 additional Alphas for a price of $100 per unit. If Cane accepts the customer’s offer, how much will its profits increase or decrease?
4. Assume that Cane expects to produce and sell 95,000 Betas during the current year. One of Cane’s sales representatives has found a new customer that is willing to buy 5,000 additional Betas for a price of $44 per unit. If Cane accepts the customer’s offer, how much will its profits increase or decrease?
The total traceable fixed manufacturing overhead and common fixed expenses for the Alpha and Beta lines were calculated using given data. Further, by considering variable costs and revenues, the impact on profits of additional sales was evaluated. The findings reveal an increase in profits for additional Alpha sales but a decrease for Beta.
Explanation:1. To compute the traceable fixed manufacturing overhead for each product line, we first need to multiply the units produced by the cost per unit. Therefore, for Alpha, the traceable fixed manufacturing overhead equals 107,000 units * $21 per unit = $2,247,000. For Beta, the traceable fixed manufacturing overhead equals 107,000 units * $23 per unit = $2,461,000.
2. To determine the total amount of common fixed expenses, we can use the given unit cost figures. For Alpha, the total cost per unit is $125 and the common fixed expense per unit is $20, implying 20/125 = 16% of the total costs are common fixed expenses. For Beta, the total cost per unit is $91 and common fixed expense per unit is $15, implying 15/91 = 16.5% of total costs. We average the percentages and multiply by the total unit costs produced to determine the common fixed expense. Thus, the total common fixed expense is approximately 16.25% of $216 (average cost of alpha and beta) * 214,000 (total production of both Alpha and Beta) = $7,554,750.
3. The additional 15,000 Alphas would sell for $100 each resulting in revenue of $1,500,000. However, the variable costs would increase. Variable costs are equal to direct materials + direct labor + variable manufacturing overhead + variable selling expenses = $30 + $25 + $12 + $17 = $84 per unit. Thus, variable costs for the additional units would be 15,000 units * $84 = $1,260,000. The profit increase would be calculated by subtracting variable costs from the total revenue, which would result in an increase of $240,000.
4. The additional 5,000 Betas selling for $44 each would lead to a revenue of $220,000. Variable costs for Beta include direct materials + direct labor + variable manufacturing overhead + variable selling expenses, resulting in $10 + $20 + $10 + $13 = $53 per unit. For the additional units, this equals 5,000 units * $53 = $265,000. By subtracting the variable costs from total revenues, we find that accepting the offer would result in a decrease in profits of $45,000.
Learn more about Cost Accounting here:https://brainly.com/question/24130824
#SPJ12
Suppose you are a euro-based investor who just sold Microsoft shares that you had bought six months ago. You had invested €10,000 to buy Microsoft shares for $120 per share; the exchange rate was $1.55 per euro. You sold the stock for $135 per share and converted the dollar proceeds into euro at the exchange rate of $1.50 per euro. How much of the return is due to the exchange rate movement?
Answer:
The answer is €375.
Explanation:
If the exchange rate is $1.55 per € then €10,000 is equal to $15,500. At $120 per share, you can but 129 shares for $15,500.
And if you sell those 129 share at $135 per share, then your total comes up to $17,415. If the exhange rate had stayed the same, that would be €11,235 just for the increase in the prices of the shares. But the exhange rate is $1.50 per € so the amount after selling the shares is €11,610. The difference the exhange rate makes is €11,610 - €11,235 = €375.
I hope this answer helps.
Erin knows exactly what benefits she will receive when she retires. She has worked for the organization for 20 years and will receive 65% of the average of her two highest years of pay. Erin’s retirement plan is a ________ plan.
Answer:
defined benefit
Explanation:
A defined benefit plan is a type of pension plan in which the employees continue to receive a specified amount of money from the company after retirement. This benefit plan is subject to tax deduction.
A defined benefit plan is calculated by the employees salary, age and the period of time the individual worked in the company.
A defined budget plan makes it easy for the individual to budget their various expenses during their retirement period.
Selected data for Lemon Grass, Inc. for the year are provided below: Factory Utilities $1,000 Indirect Materials Used 34,000 Direct Materials Used 292,000 Property Taxes on Factory Building 5,900 Sales Commissions 85,000 Indirect Labor Incurred 22,000 Direct Labor Incurred 150,000 Depreciation on Factory Equipment 6,800 What is the total manufacturing overhead?
Answer:
$154,700
Explanation:
Given that:
Indirect Materials: 34,000Direct Materials: 292,000 Factory Utilities: 1,000 Property Taxes: 5,900Sales Commissions: 85,000Indirect Labor : 22,000 Direct Labor: 150,000Depreciation on Factory Equipment: 6,800As we know that total manufacturing overhead are costs incurred to create the product or service that is not related to direct material or direct labor.
So our total manufacturing overhead in this question is:
Factory Utilities +Indirect Materials Used + Property Taxes on Factory Building + Sales Commissions + Indirect Labor Incurred + Depreciation on Factory Equipment
= 1,000 + 34,000 +5,900 + 85,000 + 22,000 + 6,800
= 154,700
calculate the price elasticity of demand when the price of a barrel of gosum berries rises from $10 to $20. What kind of elasticity is this value that you computed for the price elasticity of demand and what does it mean for how demand will change based on a change in price within this price range
Answer:
PED = -0.176 or 0.176 in absolute terms. It is price inelastic, since PED < 1.
Explanation:
the quantity demanded for a price of $10 is 900 barrels.
the quantity demanded for a price of $20 is 800 barrels.
Using the midpoint method for calculating PED:
PED = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}
PED = {(800 - 900) / [(800 + 900) / 2]} / {($20 - $10) / [($20 + $10) / 2]}
PED = (-100 / 850) / ($10 / $15) = -0.1176 / 0.6667 = -0.176
Price elasticity of demand measures how much does the quantity demanded of a good or service vary as a result form a 1% change in its price.
PED < 1, price inelastic. A 1% change in price will result in a proportionally smaller change in quantity demanded. PED > 1, price elastic. A 1% change in price will result in a proportionally larger change in quantity demanded. PED = 1, price unitary. A 1% change in price will result in a proportionally equal change in quantity demanded.The price elasticity of demand measures how demand changes with changes in price. In this scenario, if the price of gosum berries increases by 100% and demand decreases by 50%, the price elasticity of demand would be -0.5, which means demand is price inelastic. This means consumers will still purchase gosum berries even when prices rise.
Explanation:The price elasticity of demand quantifies how sensitive the demand of a product is to changes in its price. To calculate this, we would need to know by how much the quantity demanded changed as a result of the price change. Unfortunately, without this information, we cannot compute the exact price elasticity of demand in this example. However, let me explain how it would work if we had the necessary data.
Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. For example, if the price increased from $10 to $20, that would be a 100% increase in price. If, as a result of this price increase, the quantity demanded goes down by, say, 50%, then the price elasticity of demand would be -50%/100% = -0.5.
This negative value represents the inverse relationship between price and demand - as the price increases, the demand decreases. As for the kind of elasticity, if the price elasticity of demand is absolute value less than 1 (as in this example), we refer to it as price inelastic.
This means that demand is not very sensitive to price changes - a 1% increase in price leads to less than a 1% decrease in quantity demanded. In other words, consumers will continue to buy the product even if the price increases, suggesting that gosum berries are likely necessary goods for the consumers.
Learn more about Price Elasticity of Demand here:
https://brainly.com/question/31452681
#SPJ3
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $180,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.80 per share. During the current year, Sneer had 1 million common shares authorized; 380,000 shares had been issued; and 172,000 shares were in treasury stock. The opening balance in Retained Earnings was $880,000 and Net Income for the current year was $380,000. Required: 1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer and Explanation:
The journal entries are shown below:
a. For preferred stock
Preferred dividend $180,000
To Preferred dividend payable $180,000
(Being the dividend declared is recorded)
Preferred dividend payable $180,000
To Cash $180,000
(Being the payment is recorded)
a. For common stock
Common dividend $582,400
To Common dividend payable $582,400
(Being the dividend declared is recorded)
Common dividend payable $582,400
To Cash $582,400
(Being the payment is recorded)
The computation is shown below:
= (380,000 shares - 172,000 shares) × $2.80
= $582,400
In a recent study for the National Bureau of Economic Research (NBER), four researchers looked at the effect of generous unemployment benefits on the local unemployment rate. They compared the unemployment situation in adjoining counties, which happened to lie in two different states that had different laws regarding the amount and duration of unemployment benefits. (Re-read the section on "A Natural Experiment of History" in Chapter 8 of the test to understand how the NBER research is based on a "natural experiment") The authors of the NBER study found that the unemployment rate "rises dramatically in the border counties belonging to the states that expanded unemployment benefit duration" during the Great Recession. Why might this be so? With the longer duration of unemployment benefits, firms needed to keep wages high to attract people to work. This caused downward wage rigidity, leading to persistent higher unemployment. The longer duration of unemployment benefits encouraged those workers who were unemployed to seek work sooner to avoid having their skills diminish, which increased the time for job search, leading to higher unemployment The longer the duration of benefits, the lower the wages become that firms will offer new workers. This caused upward wage rigidly, causing unemployment to rise dramatically. All of the above.
Answer:
With the longer duration of unemployment benefits, firms needed to keep wages high to attract people to work. This caused downward wage rigidity, leading to persistent higher unemployment
The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year’s program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown: Constraint Television Radio Online Audience per advertisement 100000 18000 20000 Cost per advertisement $2000 $300 $600 Maximum media usage 10 20 10 To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. If the promotional budget is limited to $31,100, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media? If required, round your answers to the nearest dollar.
To maximize audience contact within a $31,100 budget, the optimal number of ads is 9 on television, 10 on radio, and 10 online, reaching an audience of about 1,620,000. The budget allocation is $18,000 for TV, $3,000 for radio, and $6,000 for online ads, totaling $27,000.
To maximize total audience contact within the budget of $31,100, given the constraints and audience per advertisement, we can set up the following linear programming model:
Objective:
Maximize audience contact: 100,000T + 18,000R + 20,000OConstraints:Budget constraint: 2000T + 300R + 600O ≤ 31,100Television constraint: 0.1(T+R+O) ≤ T (Television should account for at least 10% of the total)Radio constraint: R ≤ 0.5(T + R + O) (Radio ads must not exceed 50% of total ads)Usage constraints: 0 ≤ T ≤ 10, 0 ≤ R ≤ 20, 0 ≤ O ≤ 10Solution:
The optimal solution typically requires solving these equations using linear programming methods like the simplex method or using software tools like Excel Solver. Here is an approximate solution:
Television ads (T): 9Radio ads (R): 10Online ads (O): 10This allocation respects the budget constraint and maximizes audience contact, resulting in a total audience of approximately 1,620,000 people, and distributes the budget as follows:
Television: $18,000Radio: $3,000Online: $6,000Total: $27,000Complete the following table by indicating whether or not each scenario is an example of price discrimination.
Last-minute "rush" tickets can be purchased for most Broadway theater shows at a discounted price. They are typically distributed via lottery or on a first-come, first-served basis a few hours before the show. Assume that the theater in question does not hold seats in reserve for this purpose, but rather offers rush tickets only for seats not sold before the day of the performance. Horizon Wireless offers various features "à la carte" that a customer may add to his or her calling plan, such as a text messaging package, a data package, and an Internet package.
Answer: yes; no
Explanation:
Price discrimination is an exploitative selling strategy that sellers use to try to charge their customers on different prices for the same product or service.
Last-minute "rush" tickets can be purchased for most Broadway theater shows at a discounted price. They are typically distributed via lottery or on a first-come, first-served basis a few hours before the show. Assume that the theater in question does not hold seats in reserve for this purpose, but rather offers rush tickets only for seats not sold before the day of the performance......... YES PRICE DISCRIMINATION OCCURS
---.>In this case, the groups are segmented into those who paid earlier at normal price and those who paid in relation to the rush at discounted price, A case price discrimination arises because the people who have paid more than others for a same show, would not be reserved seats which means that the product was same for the two type of consumers but not the same price
Horizon Wireless offers various features "à la carte" that a customer may add to his or her calling plan, such as a text messaging package, a data package, and an Internet package. NO PRICE DISCRIMINATION
---->This is because Because Horizon Wireless is offering the different features with a la carte pricing, where every customer is subject to the same pricing irrespective of his or her calling plan.
If the price of a data package or internet were different for a customer with a more expensive calling plan, then Horizon Wireless might be attempting to identify thier different consumer types and try to exploit the differences in their willingness to pay.
The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
Answer:
Direct labor cost= $520,000
Explanation:
Giving the following information:
The budgeted production of Taurus, Inc. is 13,000 units per month. Each unit requires 30 minutes of direct labor to complete. The direct labor rate is $80 per hour.
First, we need to calculate the total direct labor hours:
Direct labor hours= 13,000*0.5= 6,500 hours
Now, we can calculate the direct labor cost:
Direct labor cost= 6,500*80= $520,000
A donut store is open 8 hours a day and sells two types of donuts – blueberry cake donut and chocolate frosted donut. On average the demand is 80 donuts per day for EACH type. The store has only one machine which makes both types, and once it starts, it produces one donut every 2 minutes for either type. The production alternates between the two types, i.e., a batch of one type is followed by a batch of the other. The setup time is 20 minutes for either type. Assume the same batch size all the time for both types.
(a) If the batch size is 10 donuts per batch, what is the capacity per day for each type of donut?
(b) What is the minimal batch size in order to satisfy demand for both types?
Answer:
Part A)
Processing time for Each Batch = Setup time + Production time
Processing time for Each Batch = 20 + 2 × 10
Processing time for Each Batch = 40 minutes
Thus,
Capacity for one day = Total working Hour / processing time
Capacity for one day = 8 hours / 40 minutes
Capacity for one day = 12 batches
(6 batches of each donuts type, or 60 donuts of each type)
Part B)
Total production time for both donuts = (80 + 80) × 2
Total production time for both donuts = 320 minutes
Time for Total batch = 480 - 320
Time for Total batch = 160 minutes
Batch time available for each type = 160 / 2
Batch time available for each type = 80 minutes.
Number of batches = 80 minutes / 20 minutes
Number of batches = 4 batches
Thus,
Minimal batch size = 80 donuts / 4 batches
Minimal batch size = 20 donuts for each type of donuts in single batch.
Final answer:
The capacity per day for each type of donut, given a batch size of 10, is 60 donuts. The question of minimal batch size involves considering overall production capacity and setup times, aiming to satisfy the demand of 80 donuts per day for each type, with a more complex solution needed beyond simple division.
Explanation:
Capacity per Day for Each Type of Donut
To calculate the capacity per day for each type of donut, we first need to understand the time it takes to produce a batch. Since one donut is produced every 2 minutes, and the batch size is 10 donuts, it takes 20 minutes to produce a batch. Additionally, we have to add the setup time, which is another 20 minutes. Therefore, the total time to produce one batch of donuts is 40 minutes (20 minutes for production + 20 minutes for setup).
The store is open for 8 hours a day, which is 480 minutes. The machine alternates between making blueberry cake donuts and chocolate frosted donuts. So, each type of donut gets approximately half the available time, i.e., 240 minutes.
Therefore, the number of batches that can be made in 240 minutes for each type of donut is 240 minutes / 40 minutes per batch = 6 batches. Since each batch contains 10 donuts, the capacity per day for each type of donut is 6 batches * 10 donuts per batch = 60 donuts.
Minimal Batch Size to Satisfy Demand
To satisfy the demand of 80 donuts per day for each type, let’s calculate the minimal batch size. Given the demand is 160 donuts total for both types and considering the setup time and production time, the machine can effectively produce donuts for 440 minutes (480 minutes total - 2*20 minutes setup time).
As one donut takes 2 minutes to produce, in 440 minutes, the machine can produce 220 donuts in total for both types. Since the demand is 160 donuts (80 per type), to satisfy demand, we could theoretically use any batch size as long as total production is above 160. However, to meet demand exactly with minimal waste, adjusting the production times and considering efficiency, a careful recalculation considering the constraints of setup times and alternating production is required, aiming to increase the efficiency or possibly alter operation times.